Fix The Tax Code Friday: Above the Line Deductions

2007 June 29
by Kelly

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?

from → fix the tax code friday, individual

No Comments leave one →
2007 June 29
Another Tax Geek

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.

2007 June 29
Kelly

Charitable deductions.

2007 September 22
Gimme More (money)?

[...] how does this affect Ms. Spears? Plenty. You see, alimony is tax deductible. Child support is tax neutral. If Britney has to pay more to Kevin Federline, it would actually be [...]

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