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    Above the line versus Itemized Deductions

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    Above-the-line versus Itemized Deductions

    What is the difference between above-the-line deductions and itemized deductions ? Which is "better" for the taxpayer? Why? Where would you find each of these types of deductions on your Form 1040?

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    What is the difference between above-the-line deductions and itemized deductions?

    Above the line means above the amount called adjusted gross income. That amount is the last number on the front page of the Form 1040. All above the line deductions show on page 1.

    Below the line means any amounts that come into the return on page 2, which includes itemized deductions. Most of what is deductible are included in itemized deductions, although there are some changes this year with respect to certain deductions being allowable even for taxpayers who cannot itemize their deductions.

    Itemized deductions means to detail your deductions rather than take the standard deduction which is allowable regardless of ...

    Solution Summary

    In a 470 word solution, the response clearly explains the difference in tax treatment including examples.