Some less common tax deductions can help lower your Adjusted Gross Income (AGI), even if you don't itemize deductions. These deductions, often called "adjustments to income," are reported on Schedule 1, Part II of Form 1040.
Because a lower AGI can affect eligibility for other tax benefits, it's worth reviewing these adjustments if any apply to your situation.
Amortization Deduction for Reforestation Costs
If you own qualified timber property, you may be able to deduct up to $10,000 in qualified reforestation expenses each year for each property. Costs above that limit may qualify for amortization over 84 months under Internal Revenue Code Section 194.
Qualified expenses can include:
- Site preparation
- Tree planting or seeding
- Fertilization
- Protecting young timber stands
Trade Readjustment Allowance (TRA) Repayment
If you repaid supplemental unemployment compensation benefits received under the Trade Act of 1974 in a different tax year than the year you received them, you may be eligible to deduct the repayment.
Jury Duty Pay Given to Your Employer
Some employers continue paying your regular wages while you're serving on jury duty. If you were required to turn over your jury duty pay to your employer, you can deduct the amount you paid back.
Section 501(c)(18)(D) Pension Plan Contributions
You may deduct contributions made to a Section 501(c)(18)(D) pension plan if the contributions are reported on your Form W-2 in Box 12 with code H.
Personal Property Rental Expenses
If you rented personal property and reported the rental income on Schedule 1, Line 8, you may be able to deduct expenses directly related to earning that income.
Chaplain Contributions to a 403(b) Plan
Certain chaplains may qualify to deduct contributions made to a 403(b) retirement plan, even when they aren't covered by a qualified employer retirement plan.
Attorney Fees for Certain Claims or Awards
You may be able to deduct attorney fees and court costs related to:
- Unlawful discrimination claims
- IRS whistleblower awards
These deductions are subject to specific tax rules and reporting requirements.
Excess Deductions From an Estate or Trust
If you received a Schedule K-1 (Form 1041) showing excess deductions under Section 67(e), you may be able to claim those deductions on your return.
Olympic and Paralympic Medals and Prize Money
Certain athletes may exclude the nontaxable portion of:
- Olympic or Paralympic medal values
- Prize money awarded by the U.S. Olympic & Paralympic Committee
Housing Deduction From Form 2555
Taxpayers who qualify for the Foreign Earned Income Exclusion may also be eligible to claim a housing deduction using Form 2555. This deduction can help offset eligible housing expenses incurred while living and working abroad.
How to Enter Other Adjustments to Income
To report these deductions in the program, follow these steps:
- Federal
- Deductions (Select my forms)
- Adjustments to Income
- Other Adjustments