Common “Above the Line” Deductions

Health savings account (HSA)

Contributions other than employer contributions, rollovers, and qualified HSA funding distributions from an IRA to your HSA are deductible.

One-half of self-employment tax

If you are paying a self-employment tax, either from your Schedule C business or a partnership, you can deduct half of it on this line.

Regular IRA

This deduction of $6,500 (for 2023) is available up to 100% of earned income (both spouses’ income is counted for this purpose). Note Roth IRA contributions are not deductible. Plus, $1,000 of a “catch up” contribution for those 50 or older.

For active participants in employer-sponsored plans, this deduction is limited. It phases out for single filers with an AGI between $73,000 and $83,000 (for 2023), and $116,000 and $136,000 for joint filers if both spouses are active participants. If only one spouse is an active participant in an employer plan, the deduction is phased out for an AGI between $218,000 and $228,000 (2023). Note that these limitations apply irrespective of whether or not there were actual contributions to the employer-sponsored plans.

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