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How is Adjusted Gross Income Calculated?
Here is a rundown of the most common adjustments.
Do not include contributions by you or your employer that show up on your W2
If you are self-employed, you may take an adjustment for 1/2 of the self-employment tax you paid.
If you pay a penalty for early withdrawal of a time deposit, you may take an adjustment for the penalty.
You may adjust your income by the amount of any traditional IRA contribution, subject to limitations
You may adjust your income by any student loan interest paid, up to a maximum of $2,500.