Which of the following is an 'above-the-line' deduction (Adjustment to Income) for an individual taxpayer?

Answer options:

Real estate taxes on a personal residence.

Student loan interest.

Charitable contributions.

Mortgage interest.

How to approach this question

Memorize the list of Adjustments (Educator, HSA, Moving (military), SE Tax, SE Health, Penalty on early withdrawal, Alimony (pre-2019), Student Loan Interest).

Full Answer

B.Student loan interest.✓ Correct

Student loan interest (up to $2,500) is an adjustment to income (above-the-line). Real estate taxes, charitable contributions, and mortgage interest are itemized deductions (below-the-line).

Common mistakes

Confusing adjustments with itemized deductions.

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