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 mental 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?