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Index/Topics/Taxable Income Reduction

Taxable Income Reduction

Methods and limitations for reducing taxable income, including net operating loss carryforwards and other deductions

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Jan 31, 2026
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How do net operating loss carryforwards and other deductions legally reduce an individual’s federal income tax to zero?

(NOL) carryforwards and ordinary deductions reduce an individual’s taxable income—the base on which is calculated—potentially driving tax liability to zero, but current law places hard limits on how m...

Jan 8, 2026

Which common above-the-line deductions (adjustments to income) are still available in 2025 and how do they affect taxable income?

Above-the-line deductions in 2025 remain the first line of defense against taxable income: longstanding adjustments such as student‑loan interest, HSA contributions, educator expenses and certain reti...