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Above the Line
Above the Line
Above the Line
Above the Line
Above the Line

The following information is about Above the Line.

Above the Line Defined

in accounting denotes revenue and expense items that enter fully and directly into the calculation of periodic net incomein contrast to below the line items that affect capital accounts directly and net income only indirectly.for the individualis a term derived from a solid bold line on Form 1040 and 1040A above the line for adjusted gross income. Items above the line prior to coming to adjusted gross incomefor examplecan include: IRA contributionshalf of the self-employment taxself-employed health insurance deductionKeogh retirement plan and self-employed SEP deductionpenalty on early withdrawal of savingsand alimony paid. A taxpayer can take deductions above the line and still claim the standard deduction.

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