Above & Below the Line Deductions

These deductions reduce gross income to arrive at AGI. They are available to ALL taxpayers regardless of whether they itemize. Examples: student loan interest (up to $2,500), IRA contributions, self-employment tax deduction, HSA contributions, and alimony paid (pre-2019).

These reduce AGI to arrive at taxable income. Taxpayers choose the GREATER of the standard deduction or total itemized deductions. Itemized deductions include: state/local taxes (SALT, capped at $10,000), mortgage interest, charitable contributions, and medical expenses exceeding 7.5% of AGI.