South Dakota Tax Law: What are "Above-the-Line" Deductions?

 

The foundation of yout tax bill is your gross income (the total of every dollar you were paid in a given year).  

"Above-the-Line" are deductions you take before you get to your itemized deductions. If you put some of your earnings into certain tools - like a health savings account or a 401(k) - that money will be not be taxed now (if ever). These deductions are all taken "Above-the-Line" before you determine your Adjusted Gross Income.

You should note that many of your "Above-the-Line" deductions may be provided by your employer, so pay close attention to these company benefits.    

Brooke Swier Schloss
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Estate Planning & Family Law Attorney