Tax Concepts

Above-the-Line Deduction

An above-the-line deduction is a deduction taken in arriving at adjusted gross income.

Quick answer

An above-the-line deduction is a deduction taken in arriving at adjusted gross income.

It matters because AGI-based phaseouts and thresholds can change when a deduction is above the line rather than below it.

Retirement contributions or student loan interest may be above-the-line deductions in the right circumstances.

Free CPA Match

Need help applying this to your situation?

Answer a few quick questions and we will help you find CPA options that fit your location and needs.

Plain-English Definition

What Above-the-Line Deduction means

An above-the-line deduction is a deduction taken in arriving at adjusted gross income.

Why it matters It matters because AGI-based phaseouts and thresholds can change when a deduction is above the line rather than below it.
Simple example Retirement contributions or student loan interest may be above-the-line deductions in the right circumstances.
Related Questions

Questions people ask about Above-the-Line Deduction

What does Above-the-Line Deduction mean?

An above-the-line deduction is a deduction taken in arriving at adjusted gross income.

Why does Above-the-Line Deduction matter?

It matters because AGI-based phaseouts and thresholds can change when a deduction is above the line rather than below it.

What is a simple example of Above-the-Line Deduction?

Retirement contributions or student loan interest may be above-the-line deductions in the right circumstances.

When should I ask a CPA about Above-the-Line Deduction?

Ask a CPA when the term affects your tax bill, estimated payments, deductions, or a planning move before year end.

How is Above-the-Line Deduction different from Below-the-Line Deduction?

Above-the-Line Deduction means An above-the-line deduction is a deduction taken in arriving at adjusted gross income. Below-the-Line Deduction means A below-the-line deduction is a deduction taken after adjusted gross income in the tax calculation. The difference is that they apply to different tax, accounting, or business situations and should not be treated as interchangeable.

Free CPA Match

Get matched with a CPA near you

Answer a few quick questions and compare CPA options that fit your location and needs.