A below-the-line deduction, also referred to as an itemized deduction, is a tax deduction that taxpayers can claim on their federal income tax returns. These deductions are subtracted from a taxpayer's adjusted gross income (AGI) to determine their taxable income, ultimately reducing the amount of tax owed.
A deduction is an amount allowed to taxpayers under the Internal Revenue Code as an offset against gross income or adjusted gross income.
A qualified residence refers to a principal residence and one other residence that a taxpayer or spouse owns. Interest paid on a qualified residence may be deductible as an itemized deduction.
Qualified Residence Interest refers to the interest paid on a home mortgage that may be deductible as an itemized deduction on federal income tax returns. It includes interest on acquisition indebtedness and home equity loans.
