13:34
as far as i know, that information is simply for data collection purposes
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Simple English definitions for legal terms
above-the-line
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A quick definition of above-the-line:
Above-the-line refers to a type of deduction that is taken from gross income before calculating adjusted gross income. This means that certain expenses, such as IRA contributions and moving expenses, can be deducted before determining how much tax is owed. In the past, these deductions were written above a dark line on tax returns. The opposite of above-the-line deductions are below-the-line deductions, which are taken after calculating adjusted gross income.
A more thorough explanation:
Above-the-line is an adjective used to describe a type of deduction taken after calculating gross income but before calculating adjusted gross income. This means that these deductions are subtracted from your income before other deductions are made.
Examples of above-the-line deductions include:
- IRA contributions
- Moving expenses
These deductions are called above-the-line because they used to be written above a dark line on individual tax returns. By subtracting these deductions from your gross income, you can lower your taxable income and potentially reduce the amount of taxes you owe.