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Deductions that reduce your income before you even reach itemizing.
Your AGI is used as the baseline for dozens of rules — not just your tax brackets. A lower AGI can unlock Roth IRA eligibility, increase your IRA deductibility, qualify you for credits that phase out at higher incomes, and reduce your Medicare premiums in retirement (IRMAA surcharges kick in above certain AGI levels).
This makes above-the-line deductions doubly powerful: they lower your tax bill directly and improve your eligibility for other benefits.
Available regardless of whether you itemize or take the standard deduction.
Pre-tax contributions to employer retirement plans reduce your W-2 taxable wages dollar for dollar. If you contribute $10,000 and are in the 22% bracket, you immediately save $2,200 in federal income tax.
👤 W-2 employees with access to an employer plan
Deductible if you (and your spouse) do not have a workplace retirement plan, OR if you do but income is below the phase-out threshold ($79,000 single / $126,000 MFJ in 2025).
👤 Anyone with earned income within the income limits
Health Savings Accounts are the only triple-tax-advantaged account: contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. Requires a High Deductible Health Plan (HDHP).
👤 Anyone enrolled in an HSA-eligible HDHP
Deductible interest paid on qualified student loans, phases out above $80,000 AGI (single) / $165,000 (MFJ) in 2025. Eliminated entirely above $95,000 / $195,000.
👤 Borrowers paying student loan interest within income limits
Self-employed individuals can deduct the full cost of health, dental, and vision insurance for themselves, their spouse, and dependents — as long as they are not eligible for employer-sponsored coverage through a spouse.
👤 Self-employed / 1099 contractors not eligible for employer coverage
Self-employed workers pay 15.3% SE tax (both employer + employee FICA). The IRS lets you deduct the employer half (7.65%) as an above-the-line deduction, reducing your income tax.
👤 All self-employed / 1099 workers
Alimony deductibility was eliminated for divorce agreements executed after December 31, 2018. For agreements before that date, payments are still deductible for the payer (and taxable for the recipient).
👤 Payers under pre-2019 divorce agreements only
An HSA is the only account with triple tax advantage: contributions reduce taxable income, the balance grows tax-free, and withdrawals for medical expenses are tax-free. After age 65, you can withdraw for any purpose (paying only ordinary income tax — same as a Traditional IRA). If you have an HDHP and are not maxing your HSA, it is one of the highest-value moves in tax planning.
These deductions are independent — you can take all of them simultaneously if you qualify. Here is what aggressive above-the-line planning looks like for a self-employed person:
Self-employed single filer, $120,000 gross income
From $120K to ~$73K AGI — before even touching the standard deduction or credits.
Many of these deductions require action before December 31 (401k contributions, HSA contributions). IRA contributions can be made up to the April tax deadline. Do a quick AGI estimate in November — there is still time to increase contributions and capture deductions before the year closes.
Deductions subtracted from gross income to arrive at Adjusted Gross Income (AGI). Available regardless of whether you take the standard or itemized deduction — making them universally accessible.
Your gross income minus above-the-line deductions. AGI is used as the baseline for many phase-outs, credit eligibility thresholds, and is what flows into the rest of your tax return.
A variation of AGI used for specific rules (Roth IRA eligibility, IRA deductibility, ACA premium credits). Adds back certain above-the-line deductions like student loan interest and IRA contributions.
A gradual reduction in a deduction or credit as income rises above a threshold. Instead of abruptly ending, the benefit decreases incrementally — you may still get a partial deduction even above the base limit.
Quick Summary