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Fix The Tax Code Friday: Above the Line Deductions

June 29, 2007 · 0 comments

It’s Fix the Tax Code Friday!

“Above the line” deductions are deductions that you can take even if you don’t itemize. As such, they aren’t subject to phase outs and income limits.

Some common “above the line” deductions are:

* Alimony (My favorite! Don’t you just have a mind picture of our a large number of our Congressional officials when you see this?)
* Health savings account (HSA)
* Self Employment tax (SE)
* IRA deduction

Several other deductions found on various schedules have been proposed to as “above the line” deductions but have failed to pass. The most popular was the charitable deduction which has suggested often but regularly voted down.

So, today’s Fix the Tax Code Friday question is…

If you could move one deduction from a schedule to an “above the line” deduction, what would it be?

{ 2 comments… read them below or add one }

1 Another Tax Geek June 29, 2007 at 2:32 pm

All expenses associated with the production of income – unreimbursed EE expenses, investment expenses & interest, and any other 212 expense. If one category of income can deduct associated expenses above the line, all others should be able to as well.

2 Kelly June 29, 2007 at 5:17 pm

Charitable deductions.

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