Form 1040 – Adjustments

Out of Scope by [1040 line number]:

  • [24] Business expenses of reservists, performing artists, etc
  • [26] Moving expenses
  • [28] Self-employed SEP, SIMPLE and qualified plans
  • [29] Self-employed health insurance
  • [31a] Alimony paid under a divorce agreement executed prior to 1985 IN SCOPE FOR AARP
  • [35] Domestic production activities deduction

Tax Slayer entry:

Federal Section > Deductions > Adjustments

[23] Educator expenses:

  • K-12, 900 hours minimum, not home school.
  • Limited to $250 for the taxpayer and $250 for the spouse.
  • Amount above that may be taken as an itemized deduction on schedule A in the 2% section.

[25] Health Savings Accounts:

Requires HSA certification – See the dedicated page for HSAs

[26] Moving Expenses:

Requires Military certification.

[27] Deductible part of self-employment tax:

This amount will be filled in automatically as self-employment income and expenses are entered.

[30] Penalty on early withdrawal of savings:

This amount will be filled in automatically

[31] Alimony paid:

  • Enter amount and ex-spouse’s SSN
  • If SSN is unknown, enter 111-00-1111, write unknown above SSN and paper file.

[32] IRA deduction:

  • A new “MyRA” IRA provision was created in 2014 and is a qualified IRA for this deduction.
  • Depending on salary, retirement plan and other factors, all amounts contributed may not be allowed as an adjustment.
  • If contributions exceed the allowed amount (excess contributions) inform the taxpayer that the excess must be removed before the filing deadline to avoid an additional 6% tax. The return can still be e-filed now.
  • ⚠ CAUTION : There seems to be no error indication if the allowed contribution is exceeded, just no adjustment entry shows up on the 1040. Always verify the amount shown on Form 1040.

[33] Student loan interest deduction:

  • Maximum allowed is $2,500 and decreases to 0 in the AGI rage of $65,000 – $80,000  ($130,000 – $160,000 for MFJ).

[34] Tuition and Fees:

See the Education options resource page

[36] Jury Duty Pay turned over to employer:

  • Enter jury duty pay on the Federal Section > Income > Other Income > Other Inc. Not Reported Elsewhere TS page. Describe as “Jury Duty Pay”.
  • If the taxpayer had to give some or all of the jury duty pay to the employer, enter the amount given to the employer on the Federal Section > Deductions > Adjustments > Other Adjustments TS page.
  • Any payment for travel, food or lodging is not included in income