Everything You Need to Know About “Below the Line” Deductions

 In Estate Planning, Government Benefits, Tax Law

Below-the-line deductions, also known as itemized deductions, include any deduction reported under the line for AGI calculation on your tax return.

Each tax season, you can choose whether to itemize your deductions or take the standard deduction. The standard deduction refers to a set dollar amount, primarily based upon your filing status that non-itemizers subtract from their income before income tax is applied.


For the 2022 tax year, the standard deduction numbers were:

  • $12,950 for single filers and married individuals filing separately
  • $19,400 for the heads of household
  • $25,900 for married couples filing jointly

Itemized deductions include:

  • Out-of-pocket medical expenses exceeding 7.5% of your AGI
  • A maximum of $10,000 of state and local taxes combined
  • Interest paid on a maximum of $750,000 of home mortgage debt
  • Contributions made to a charity
  • Casualty losses due to a federally declared disaster

Aside from the deductions mentioned above, there is a catchall section for less standard itemized deductions, including:

  • Losses incurred from gambling
  • Amortizable bond premiums
  • Impairment-related work expenses incurred by individuals with disabilities

More information on claiming below-the-line deductions can be found on the IRS instructions for Schedule A.


At Bach, Jacobs and Byrne, P.A., we address tax issues as part of your estate planning, probate, and trust administration. If you live in Sarasota, Manatee, or Charlotte County, contact Bach, Jacobs and Byrne, P.A. at (941) 906-1231 to evaluate whether your estate plan is tax efficient.

Recent Posts

Leave a Comment