Calculating Taxable Income on Form 1040

By | January 30, 2014

Calculating Taxable Income. The most basic tax form is IRS Form 1040. It is a single-sheet, two-page form. Most taxpayers will need to add any necessary supporting schedules or forms, depending upon the particular circumstances of the individual taxpayer. Software such as TurboTax and H and R Block will be able to automatically fill out this form for a taxpayer.


What are Tax Deductions?

Adjustments to gross income that occur on the bottom of page 1 of Form 1040 (commonly referred to as above- the-line deductions) are principally those deductions that may be taken whether or not the standard deduction is employed. Most taxpayers are able to take these deductions and there are different rules for these than itemized deductions.


Some of the most common tax deductions for:

  • Deduction for educator expense deduction
  • Deduction for employee business expenses of certain fee-basis state or local government officials
  • Deduction for health savings accounts, including Archer Medical Saving Accounts (MSAs) and Health Savings Accounts (HSAs)
  • Deduction for moving expenses
  • deduction alimony paid
  • Deduction for one-half of self-employment tax
  • Deduction for contributions to self-employed retirement plans
  • Deduction for health insurance premiums paid by self-employed individuals
  • Deduction for contributions to individual retirement arrangements (IRAs)
  • Deduction for student loan interest
  • Deduction for qualified tuition and fee
  • Deduction for performing artists, and reservist’s business expenses
  • Deduction for jury duty pay given to an employer
  • Deduction for amortization of forestation or reforestation expenses
  • Deduction for repayment of supplemental unemployment benefits
  • Deduction for contributions to 501(c)(18) pension plans
  • Deduction for contributions by certain chaplains to Code Sec. 403(b) plans
  • Deduction for expenses incurred with respect to the rental of personal property


Calculating Taxable Income on Form 1040

These are some of the most common tax deductions that you can can take on a Form 1040. Again, most commercial online tax software will help you determine if you are eligible for these tax deductions and help you e-file your tax returns. These tax return software packages will ensure that you receive the biggest refund for your taxes.


IRS Links for Explanation of Items Deductible on Taxes