Deductions

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Question: What is an above-the-line deduction?

Answer: The federal tax law allows certain items to be deducted “above-the-line” to arrive at adjusted gross income (AGI). Contributions to a regular IRA and any amount of alimony paid are examples of above-the-line deductions. These deductions are allowed whether or not you use the standard deduction or itemize your other deductions.

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