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Adjustments to Income 1
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Adjustments to Income 1. What is an adjustment to income? Expenses paid by the taxpayer that lowers taxable income and therefore has the potential to.

Dec 29, 2015

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Amelia Hensley
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Page 1: Adjustments to Income 1. What is an adjustment to income? Expenses paid by the taxpayer that lowers taxable income and therefore has the potential to.

Adjustments to Income

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Page 2: Adjustments to Income 1. What is an adjustment to income? Expenses paid by the taxpayer that lowers taxable income and therefore has the potential to.

What is an adjustment to income?

• Expenses paid by the taxpayer that lowers taxable income and therefore has the potential to lower their tax liability

• Adjustments to income vs itemized deductions

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Page 3: Adjustments to Income 1. What is an adjustment to income? Expenses paid by the taxpayer that lowers taxable income and therefore has the potential to.

Intake and Interview Form

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Page 4: Adjustments to Income 1. What is an adjustment to income? Expenses paid by the taxpayer that lowers taxable income and therefore has the potential to.

Page 1 Form 1040

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Page 5: Adjustments to Income 1. What is an adjustment to income? Expenses paid by the taxpayer that lowers taxable income and therefore has the potential to.

Student Loan Interest• 1098-E (not everyone receives one from lender)• $2,500 max claimed• MFS cannot claim deduction• Cannot be a dependent

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Page 6: Adjustments to Income 1. What is an adjustment to income? Expenses paid by the taxpayer that lowers taxable income and therefore has the potential to.

Educator Expenses• Expenses need to be documented• Must be a Teacher, Instructor, Counselor,

Principal, or Aide• Kindergarten-grade 12• $250 deduction per educator

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Page 7: Adjustments to Income 1. What is an adjustment to income? Expenses paid by the taxpayer that lowers taxable income and therefore has the potential to.

Tuition and Fees • Cannot be used in conjunction with the American

Opportunity Credit or Lifetime Learning Credit. o If they are eligible for a education credit and a deduction, enter the

information both ways to see if the deduction or the credit is more beneficial

• MFS cannot take the deduction• Cannot be a dependent

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Page 8: Adjustments to Income 1. What is an adjustment to income? Expenses paid by the taxpayer that lowers taxable income and therefore has the potential to.

IRA Contribution Deduction

• For clients who are making contributions to their traditional or Roth IRA.

• Maximum deductionso $5,500 under 50 years of ageo $6,500 over 50

• MFS with income over $10,000 cannot take the deduction

• Income limitso People making over $60,000, please see publication 590 for more rules

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