Key Takeaways
- Moving expenses are deductible ONLY for Armed Forces members on active duty who move due to permanent change of station (PCS)
- The penalty on early withdrawal of savings (CD forfeitures) is an above-the-line deduction on Schedule 1, Line 18
- Jury duty pay remitted to employer is deductible on Schedule 1, Line 24a
- Attorney fees for whistleblower/discrimination awards are deductible above-the-line, limited to the award amount
- Self-employed SEP contributions: 2024 limit is $69,000 or 25% of compensation (20% for self-employed)
Last updated: January 2026
Other Adjustments to Income
Moving Expenses (Armed Forces Only)
Post-TCJA (2018-2025): Only active-duty Armed Forces members with a permanent change of station (PCS) can deduct moving expenses.
Deductible:
- Transportation/storage of household goods (30 days)
- Travel expenses (lodging, NOT meals)
- Vehicle: 21 cents/mile for 2024
Non-Deductible:
- Meals during move
- Temporary housing
- House-hunting trips
Penalty on Early Withdrawal of Savings
When you withdraw from a CD before maturity:
- Penalty appears in Form 1099-INT, Box 2
- Deduct on Schedule 1, Line 18
- Can deduct even if penalty exceeds interest earned
Jury Duty Pay Remitted to Employer
If employer requires you to turn over jury pay:
- Report jury pay as other income
- Deduct same amount on Schedule 1, Line 24a
- Net effect: zero
Attorney Fees for Certain Awards
Deductible on Schedule 1, Line 24 for:
- Unlawful discrimination claims
- IRS/SEC whistleblower awards
- Limited to amount of award included in income
Self-Employed Retirement Plans (2024)
| Plan Type | 2024 Limit |
|---|---|
| SEP IRA | $69,000 or 25% (20% for self-employed) |
| SIMPLE elective deferral | $16,000 |
| SIMPLE catch-up (50+) | +$3,500 |
Schedule 1 Part II Summary
| Line | Adjustment |
|---|---|
| 11 | Educator expenses ($300) |
| 13 | HSA deduction |
| 14 | Moving (military only) |
| 15 | 50% of SE tax |
| 16 | SE retirement plans |
| 17 | SE health insurance |
| 18 | Early withdrawal penalty |
| 19 | Alimony (pre-2019) |
| 20 | IRA deduction |
| 21 | Student loan interest |
EA Exam Tips
- Civilian moving expenses NOT deductible (2018-2025)
- Early withdrawal penalty reduces AGI
- Military has no distance/time test for moving
Test Your Knowledge
An active-duty soldier drove 1,200 miles for a PCS move. Using the 2024 standard rate, what is deductible (excluding lodging)?
A
B
C
D
Test Your Knowledge
Tom's 1099-INT shows $420 interest and $380 early withdrawal penalty. How does he report this?
A
B
C
D
Test Your Knowledge
A self-employed consultant with $180,000 net SE income wants to maximize SEP contributions. What is the maximum?
A
B
C
D