Above-the-line deductions and why you shouldn’t overlook them

sunset-837519_640Even if you don’t itemize deductions on your tax return, you may be entitled to certain “above-the-line” deductions. These deductions are subtracted from your income to arrive at your adjusted gross income, an important number because it determines your qualification for certain tax credits and various tax breaks. Above-the-line deductions include such things as IRA contributions, health savings account contributions, student loan interest, moving expenses, health insurance and retirement plan contributions if you’re self-employed, and alimony paid.

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