The Other Adjustments menu contains several adjustments that are deducted from income to calculate Adjusted Gross Income. The available adjustments in this menu may change from one year to the next due to changes in tax law.
When entered, these adjustments are included on Schedule 1 (Form 1040) Line 22 (Line 36 in 2018), or Form 1040 Line 36 for tax years prior to 2018, with the adjustment description and amount notated on the line. If more than one of these adjustments is included in the return, a supporting statement will be generated listing them.
To access the Other Adjustments Menu, from the Main Menu of the tax return (Form 1040) select:
- Adjustments Menu
- Other Adjustments
The first six menu lines are allotted for you to enter any of the following eight adjustments:
- 403(B) - A minister or chaplain who participates in a 403(b) retirement plan, who is not self-employed, and whose employer includes their contributions in earned income, can deduct those contributions here (see Publication 517). Identified on the printed form as 403(B).
- JURY- Jury pay the taxpayer received (and is included on the return in Miscellaneous Income) which they gave to their employer if the employer continued to pay them while they served on a jury. Identified on the printed form as JURY PAY.
- PPR- Deductible expenses related to income reported on Form 1040 line 21 from the rental of personal property engaged in for profit (see Publication 525). Identified on the printed form as PPR.
- RFST- Reforestation amortization and expenses (see Publication 535). Identified on the printed form as RFST.
- SUB-PAY- Repayment of supplemental unemployment benefits under the Trade Act of 1974 (see Publication 525). Identified on the printed form as SUB-PAY TRA.
- UDC- Attorney fees and court costs for actions settled or decided after October 22, 2004, involving certain unlawful discrimination claims, but only to the extent of gross income from the action (see Publication 525). Identified on the printed form as UDC.
- USOC - US Olympic Committee and Paralympic Medals and Prize Money (entered in the return as Miscellaneous Income), but only if AGI without this deduction is less than $1,000,000 ($500,000 if filing MFS). Identified on the printed form as USOC.
- WBF- Attorney fees and court costs paid in connection with an award from the IRS for information provided after December 19, 2006 that substantially contributed to the detection of tax law violations, up to the amount of the award that is included in gross income. Identified on the printed form as WBF.
- 501(c)(18)(D) Contribution- Contributions to a section 501(c)(18)(D) pension plan (as indicated on Form W-2 Box 12 with a code of H) (see Publication 525). Identified on the printed form as 501(c)(18)(D).
- Form 2555 Adjustment - This amount flows from Form 2555 if it is needed.
- Form 1041 K-1 Excess Deductions of Section 67(e) Expenses - This amount flows from Schedule K-1 (Form 1041) Box 11A. Identified on the printed form as ED67(e).
- Domestic Production Activities (8903) - Prior to 2018, up to 9% of certain qualified production activities income (QPAI) could be deducted, reduced by any oil-related QPAI. The Domestic Production Activities Deduction (DPAD) was repealed for tax years after 2017 except for certain partners and shareholders of pass-through entities as well as certain activities of an agricultural or horticultural cooperative. See Form 8903 instructions to see if this deduction is available for a particular return.