Skip Navigation

Link & Learn Taxes linking volunteers to quality e-learning

  • Basic
  • Advanced
  • Military
  • International
to the Basic Course
Basic Course > Adjustments to Income

Adjustments to Income

This lesson covers the Adjustments to Income section of the tax return, where taxpayers can subtract certain expenses, payments, contributions, fees, etc. from their total taxable income.

Click the Skills Workout button to learn more about adjustments to income.

Skill Check

Check your understanding of adjustements to income. Indicate whether each of the statements below is true or false by clicking on the correct answer. To check your answers, click the Check My Answers button at the bottom of the page.

  1. Fred has a traditional IRA account, and a Roth IRA account. During the tax year, Fred contributed $2,200 to his traditional IRA, and $1,000 to his Roth IRA.

    True or False? The most Fred will be able to deduct is the $2,200 contribution to his traditional IRA.
  • A.
  • B.
  1. Gloria withdrew $5,000 early from a one-year, deferred-interest certificate of deposit. She had to pay a penalty of three months' interest.

    True or False? She cannot claim this penalty amount as an adjustment to income.
  • A.
  • B.
  1. Robert has taken his first job after completing law school. His filing status is Single. He paid $3,000 in interest on his student loans during the tax year. With all adjustments to income (except student loan interest adjustment), his MAGI is below the limits.

    True or False? He can deduct $2,500 of his student loan interest as an adjustment to income.
  • A.
  • B.