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Below-the-Line Deductions

Tax deductions or adjustments that modify a taxpayer's adjusted gross income and are used to calculate a taxpayer's taxable income are called below-the-line deductions.  The "line" is AGI (Adjusted Gross Income).  Tax deductions that occur after AGI is determined are called below-the-line deductions.  Any deductions that modify gross income and occur before AGI is determined are above-the-line deductions.  Below-the-line deductions can be one of two types - itemized deductions or the standard deduction.

Below-the-line deductions are used in the following basic calculation:

Adjustable Gross Income - Below-the-Line Deductions = Taxable Income

Employee business expenses make up only one part of truck drivers' itemized tax deductions.  All of the itemized deductions that truckers write-off get entered on IRS Form 2106.  Essentially, think of IRS Form 2106  as one big itemized deduction.  That is the reason that only truck drivers who itemize can write off their trucking job expenses.


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