What Are For-AGI Deductions? List, 2026 Limits, and Traps

Above the line deductions are the specific expenses Congress lets you subtract from gross income to arrive at your adjusted gross income (AGI), the figure on line 11 of Form 1040.1Internal Revenue Service. U.S. Individual Income Tax Return Every filer who qualifies can claim them, whether you take the standard deduction or itemize. The full list is authorized by 26 U.S.C. § 62; if an expense isn’t on that list, it’s either an itemized deduction or not deductible at all.2Office of the Law Revision Counsel. 26 USC 62 – Adjusted Gross Income Defined

Why the Placement Above AGI Matters

The “line” is AGI itself. Adjustments that fall above it reduce gross income to produce AGI. Deductions below it — the standard deduction or itemized deductions — reduce AGI to produce taxable income. Both cut your tax bill, but only above-the-line deductions shrink the number the IRS uses to set limits on everything else.

A lower AGI can raise the medical expenses you’re allowed to deduct (only the portion above 7.5% of AGI counts), keep you inside income limits for education credits, preserve a larger traditional IRA deduction, and reduce exposure to the net investment income tax. The same dollar of deduction does more work when it sits above the line.

The Complete List of Above the Line Deductions for 2026

Self-Employment

Self-employed filers get three. You can deduct half of the self-employment tax you pay — the employer-equivalent share of Social Security and Medicare. The combined SE tax rate is 15.3%, so the deduction effectively covers 7.65% of net earnings.3Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) You can deduct health insurance premiums paid for yourself, your spouse, and your dependents.4Internal Revenue Service. Credits and Deductions for Individuals And contributions to a SEP IRA, SIMPLE IRA, or solo 401(k) come off above the line.

Retirement and Health Savings

Traditional IRA contributions are deductible up to $7,500 for 2026, or $8,600 if you’re 50 or older.5Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500 Roth IRA contributions are never deductible; you pay tax now for tax-free withdrawals later.6Internal Revenue Service. IRA Deduction Limits HSA contributions are also above the line, with 2026 limits of $4,400 for self-only coverage and $8,750 for family coverage, plus $1,000 more if you’re 55 or older.7Internal Revenue Service. Expanded Availability of Health Savings Accounts Under the OBBBA

Education

You can deduct up to $2,500 in student loan interest paid during the year, subject to the income phase-outs below.8Internal Revenue Service. Topic No. 456, Student Loan Interest Deduction Eligible educators — K–12 teachers, counselors, principals, and aides who work at least 900 hours during the school year — can deduct up to $300 in unreimbursed classroom expenses. Two eligible educators filing jointly can claim up to $300 each, for a combined $600.9Internal Revenue Service. Topic No. 458, Educator Expense Deduction

Alimony, Early-Withdrawal Penalties, and Moving Costs

Alimony is deductible above the line only if the divorce or separation agreement was executed before 2019. Agreements finalized after 2018 give the payer no deduction, and the recipient doesn’t include the payments in income.10Internal Revenue Service. Topic No. 452, Alimony and Separate Maintenance Bank penalties for early withdrawal of savings, such as breaking a CD before maturity, are deductible even though the amounts are usually small. Active-duty military members relocating under a permanent change of station order can deduct unreimbursed moving expenses, and beginning in 2026 certain intelligence community employees qualify for the same treatment.11Internal Revenue Service. Topic No. 455, Moving Expenses for Members of the Armed Forces and the Intelligence Community

Non-military moving expenses aren’t deductible. Neither are unreimbursed employee business expenses, which stopped being an above-the-line item long ago and aren’t itemizable through 2025 either.

2026 Limits and Phase-Outs

Traditional IRA

If neither you nor your spouse has access to a workplace retirement plan, the full IRA deduction is available at any income.6Internal Revenue Service. IRA Deduction Limits When a workplace plan is in the picture, these 2026 phase-out ranges apply:12Internal Revenue Service. 2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living

  • Single or head of household, active participant: $81,000 to $91,000
  • Married filing jointly, contributing spouse is active participant: $129,000 to $149,000
  • Non-participant married to an active participant: $242,000 to $252,000
  • Married filing separately, active participant: $0 to $10,000

Below the lower number, a full deduction. Above the upper number, none. In between, a partial deduction.

Student Loan Interest

The $2,500 maximum phases out based on modified AGI. For 2025, the most recent published figures, the ranges are $85,000 to $100,000 for single filers and $170,000 to $200,000 for joint filers.13Internal Revenue Service. Publication 970 (2025), Tax Benefits for Education These thresholds adjust annually; check the Form 1040 instructions or Publication 970 for final 2026 amounts. Married filing separately cannot claim the deduction at all.

HSA

The 2026 HSA contribution limits are $4,400 (self-only) and $8,750 (family). To qualify, you must be enrolled in a high-deductible health plan with a minimum annual deductible of $1,700 (self-only) or $3,400 (family), and out-of-pocket maximums no higher than $8,500 (self-only) or $17,000 (family).7Internal Revenue Service. Expanded Availability of Health Savings Accounts Under the OBBBA Add $1,000 if you’re 55 or older and not enrolled in Medicare.

Eligibility Traps

Self-Employed Health Insurance

The deduction is capped at your net profit from the business sponsoring the plan. Break-even or a loss means no deduction. You also cannot claim it for any month in which you were eligible to participate in an employer-subsidized plan, including through your spouse’s employer.14Internal Revenue Service. 2025 Instructions for Form 7206 Eligibility disqualifies you even if you never enrolled.

Educator Expenses

You must work at least 900 hours during the school year at a school providing elementary or secondary education as defined by state law.9Internal Revenue Service. Topic No. 458, Educator Expense Deduction Qualifying costs include books, supplies, equipment, and professional development you paid out of pocket. Reimbursed amounts don’t count, and the IRS can ask for receipts.

Student Loan Interest

The loan must be a qualified student loan taken out solely to pay higher education expenses for you, your spouse, or a dependent. Loans from relatives and employer plans don’t qualify. You must have actually paid the interest during the tax year, and married filing separately is disqualifying.8Internal Revenue Service. Topic No. 456, Student Loan Interest Deduction

Traditional IRA

Anyone can contribute at any income; the deduction is what phases out. Deducting the full contribution when the phase-out applied is a common error, and the IRS catches it by matching your return against employer plan records.6Internal Revenue Service. IRA Deduction Limits

Self-Employment Tax

No income limit, no phase-out. Straight 50% of the SE tax figured on Schedule SE. The deduction reduces your income tax only; it does not reduce the SE tax itself or your net earnings for Social Security purposes.3Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)

How to Report Them

Most above the line deductions come with a third-party statement. Loan servicers issue Form 1098-E for student loan interest paid over $600.15Internal Revenue Service. About Form 1098-E, Student Loan Interest Statement IRA custodians issue Form 5498.16Internal Revenue Service. About Form 5498, IRA Contribution Information HSA trustees issue Form 5498-SA. Self-employed filers compute SE tax on Schedule SE and halve the result.17Internal Revenue Service. About Schedule SE (Form 1040), Self-Employment Tax Educators keep their own receipts.

Everything lands on Schedule 1 (Form 1040), Part II — Adjustments to Income. Key line numbers on the 2025 version of Schedule 1 (2026 lines may shift slightly):18Internal Revenue Service. 2025 Schedule 1 (Form 1040)

  • Line 11: Educator expenses
  • Line 13: HSA deduction (attach Form 8889)
  • Line 15: Deductible part of self-employment tax (attach Schedule SE)
  • Line 17: Self-employed health insurance deduction
  • Line 21: Student loan interest deduction

The Part II total flows to Form 1040 and is subtracted from gross income to produce your AGI on line 11.1Internal Revenue Service. U.S. Individual Income Tax Return

What It Costs to Get It Wrong

Excess contributions to an IRA or HSA carry a 6% excise tax for every year the excess stays in the account.19Office of the Law Revision Counsel. 26 U.S. Code 4973 – Tax on Excess Contributions to Certain Tax-Favored Accounts and Annuities For HSAs, withdrawing the excess before your filing deadline avoids the penalty for that year.20Internal Revenue Service. HSA Limits on Contributions

Overstating an above-the-line deduction, such as deducting an IRA contribution that should have been partially phased out, can trigger the accuracy-related penalty when the understatement is large enough. The penalty is 20% of the underpaid tax, and it applies when the understatement exceeds the greater of 10% of the tax that should have been shown or $5,000.21Internal Revenue Service. Accuracy-Related Penalty Below those thresholds, you still owe the additional tax plus interest running from the original due date.