Adjustments and Deductions to Taxable Income

Free CPA REG (Taxation & Regulation) lesson in Federal Taxation of Individuals. 22 min read, ~3,260 words.

Adjustments (above-the-line) reduce gross income to AGI; available whether the taxpayer itemizes or not. Standard deduction 2026 (post-OBBBA): \$16,100 single, \$32,200 MFJ, \$24,150 HoH, \$16,100 MFS; +\$1,600 (single/HoH 65+/blind), +\$1,300 (married 65+/blind). SALT capped at \$40,000 per return (state/local income or sales tax + property tax combined). Mortgage interest: acquisition...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Key Takeaways
• Exam Shortcuts

Learning objectives

• IV.C1

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