Adjusted Gross Income - Adjustments

Adjustments

Gross income is reduced by certain items to arrive at adjusted gross income. These include:

• Expenses of carrying on a trade or business including most rental activities (other than as an employee)

• Certain business expenses of teachers, reservists, performing artists, and fee-basis government officials,

• Health savings account deductions,

• Certain moving expenses,

• One-half of self-employment tax,

• Allowable contributions to certain retirement arrangements (SEP IRA, SIMPLE IRA, and qualified plans) and Individual Retirement Accounts (IRAs),

• Penalties imposed by financial institutions and others on early withdrawal of savings,

• Alimony paid (which the recipient must include in gross income),

• College tuition, fees, and student loan interest (with limitations and exceptions),

• Jury duty pay remitted to the juror's employer,

• Domestic production activities deduction, and

• Certain other items of limited applicability.