How do I enter adjustments to income?
To enter adjustments to income
- In the Allowable IRA Deduction field, enter the allowable deduction for contributions that you and your spouse made to your IRAs.
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Generally, you and your spouse can take a deduction for contributions that you're allowed to make to your IRA (or a maximum of $4,000 each for those under 50, or $5,000 each for those over 50). However, if you or your spouse is covered by an employer retirement plan at any time during the year, your IRA deduction may be reduced or eliminated depending on your filing status and the amount of your income. Consult IRS Publication 590 for additional information.
If you or your spouse has made Roth IRA contributions, you cannot take a deduction for these contributions.
- In the One-Half of Self-Employment Tax field, Quicken automatically calculates a value based on your entries on the Business Income - Schedule C and Farm Income - Schedule F pages. The self-employment tax amount is automatically calculated and shown on the Other Taxes and Credits page.
- In the Allowable S.E. Health Insurance Deduction field, enter allowable self-employed health insurance costs.
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One hundred percent of qualifying health insurance costs is deductible for the following individuals:
- Self-employed individuals
- Partners
- Shareholders of more than 2 percent of an S corporation
- In the Keogh/SEP Deduction field, enter the value of allowable payments to a qualified Keogh (HR10) plan or a simplified employee pension (SEP) plan.
- In the Penalty on Early Withdrawal of Savings field, enter the appropriate value.
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If you withdraw funds from a time savings account before maturity, you may be charged a penalty. You must report the gross amount of interest paid or credited to your account during the year, without subtracting the penalty. Deduct the entire penalty even if it exceeds your interest income. The Form 1099-INT, or similar statement from your financial institution, shows the gross amount of interest and the penalty.
- In the Alimony Paid field, enter the amount of alimony you've paid or will pay for the tax year. (You enter alimony received on the Other Income or Losses page.)
- In the Moving Expenses field, enter the value for allowable moving expenses.
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You're allowed a moving expense deduction if the distance from your old home to your new workplace is at least 50 miles more than the number of miles from your old home to your old workplace. Deductible moving expenses include only direct expenses: packing and transporting household goods and the cost of traveling to your new home, including lodging (but not meals). For additional information, see IRS Publication 521.
- In the Other Adjustments field, enter the appropriate value.
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Other adjustments to income include items such as contributions to medical savings accounts, jury duty pay that you repaid to your employer, performing-arts-related expenses if you're a qualified performing artist, contributions to Section 501 (c)(18) pension plans, repayment of subpay under the Trade Act of 1974, deductible expenses related to income from the rental of personal property engaged in for profit, deduction for clean-fuel vehicles, and deductible student loan interest. For 2007, you can deduct up to $2500 of interested paid on a qualified student loan. The amount you deduct may be limited by your income. See IRS Publication 970 for more information.
Notes
You enter adjustments to your income on this page to get your adjusted gross income amount. The adjusted gross income is your taxable base before itemized deductions and exemptions.
