Adjustments to income are certain eligible expenses that can reduce your taxable income directly. Unlike itemized deductions, you can generally claim these adjustments even if you take the standard deduction.
Reducing your taxable income may lower the amount of tax you owe, so it's worth reviewing each adjustment carefully.
Medical Savings Account (Archer MSA)
Use Form 8853 if you need to:
- Report Archer MSA contributions, including employer contributions
- Calculate your Archer MSA deduction
- Report distributions from an Archer MSA or Medicare Advantage MSA
- Report taxable payments from long-term care (LTC) insurance contracts
- Report taxable accelerated death benefits received from a life insurance policy
For more information, see the IRS instructions for Form 8853.
Educator Expense Deduction
If you're an eligible educator, you may be able to deduct certain unreimbursed classroom expenses you paid during the year.
For the 2026 tax year, eligible educators can generally deduct up to $300 of qualified expenses. If you file a joint return and both spouses are eligible educators, the maximum deduction is generally $600, with no more than $300 per spouse. Eligible expenses can include:
- Books
- Classroom supplies
- Computer equipment and software
- Professional development courses
- Other materials used in the classroom
To qualify, you must:
- Work as a teacher, instructor, counselor, principal, or aide in a public or private elementary or secondary school
- Work at least 900 hours during the school year
For additional details, refer to IRS Topic No. 458.
Reservists' Travel Expenses
Members of a reserve component of the U.S. Armed Forces may be able to deduct qualifying travel expenses when:
- Traveling more than 100 miles from home, and
- Performing reserve-related duties
These expenses may be claimed as an adjustment to income instead of an itemized deduction. The deduction is generally limited to the federal per diem and travel reimbursement rates.
Health Savings Account (HSA)
Use Form 8889 to:
- Report HSA contributions, including employer contributions
- Calculate your HSA deduction
- Report HSA distributions
- Determine whether any distributions are taxable
- Calculate any additional tax that may apply if you were not an eligible individual
Keep in mind that qualified HSA funding distributions from an FSA or HRA are subject to specific IRS rules.
See Form 8889 instructions for eligibility and reporting requirements.
Moving Expenses
Most taxpayers can no longer deduct moving expenses.
However, certain active-duty members of the Armed Forces who move because of a permanent change of station may still qualify for the deduction.
For details, see IRS Publication 521, Moving Expenses.
Keogh Retirement Plan Contributions
A qualified retirement plan established by a self-employed individual is often called a Keogh Plan or HR-10 Plan.
These plans may be established by:
- Sole proprietors
- Partnerships
Eligible contributions may be deductible, subject to IRS limits and plan requirements.
For more information, see IRS Publication 560.
Self-Employed Health Insurance Deduction
You may be eligible to deduct health insurance premiums paid for yourself, your spouse, and your dependents if:
- You had net earnings from self-employment,
- You used an approved method to calculate self-employment earnings on Schedule SE, or
- You received wages from an S corporation in which you owned more than 2% of the stock and the premiums were properly reported.
This deduction may include premiums for:
- Medical insurance
- Dental insurance
- Qualified long-term care insurance
Refer to IRS Publication 535 for complete eligibility rules.
Penalty on Early Withdrawal of Savings
If you withdrew money from a certificate of deposit (CD) or other time-deposit account before its maturity date and paid a penalty, you may be able to deduct that penalty.
The deductible amount is typically reported on:
- Form 1099-INT, or
- Form 1099-OID
See IRS Publication 550 for additional information.
Alimony Paid
Alimony payments are deductible only in limited situations.
Generally, you can deduct alimony payments if they were made under a divorce or separation agreement executed before January 1, 2019, and the agreement has not been modified to adopt the newer tax rules.
For divorce agreements entered into after 2018, alimony payments are generally not deductible by the payer and are not taxable to the recipient.
Traditional IRA Deduction
If you made contributions to a traditional IRA, you may qualify for an IRA deduction.
Your deduction may be limited based on:
- Your filing status
- Your income
- Whether you or your spouse participated in an employer-sponsored retirement plan
If filing jointly, earned income requirements must also be met.
For more information, see IRS Publication 590-A.
Nondeductible IRA Contributions (Form 8606)
You generally must file Form 8606 if:
- You made nondeductible contributions to a traditional IRA.
- You received distributions from a traditional, SEP, or SIMPLE IRA and previously made nondeductible contributions.
- You converted part of a traditional, SEP, or SIMPLE IRA to a Roth IRA and have basis from prior nondeductible contributions.
Form 8606 helps ensure you do not pay tax twice on the same IRA contributions.
Student Loan Interest Deduction
If you paid interest on a qualified student loan, you may be able to deduct up to $2,500 per tax return, subject to income limitations.
You generally cannot claim this deduction if:
- Your filing status is Married Filing Separately, or
- The loan does not meet IRS requirements for a qualified student loan
The loan must have been taken out for qualified education expenses for yourself, your spouse, or your dependent.
Other Adjustments
Additional adjustments to income may include:
- Trade Readjustment Allowance (TRA) repayments
- Jury duty pay returned to an employer
- Contributions to certain Section 501(c)(18) pension plans
- Personal property rental expenses
- Certain attorney fees
- Other adjustments specifically allowed by the IRS
Why Adjustments Matter
Adjustments reduce your Adjusted Gross Income (AGI), which can do more than lower your taxable income. A lower AGI may also help you qualify for additional tax credits, deductions, and income-based tax benefits.