adjustments to income

Definition

Any of the amounts that a taxpayer is able to subtract from his or her gross income when they calculate their adjusted gross income. These adjustments are permitted even if the taxpayer does not itemize their deductions during a particular tax year. Investors are particularly interested in allowable adjustments for interest penalties on early savings withdrawals and payments into IRA and Keogh retirement plans.

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Before they filed their taxes they needed to look at all possible adjustments to income that could be taken before filing.

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Adjustments to income can be determine with W2 worksheets when an employee first gets a job and is required to complete their tax infromation for a company.

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After reporting earings, XYZ had to make a few adjustments to income as various charges had come in retroactively affecting these bottom line numbers 14 days later.

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