Which of the following is considered an adjustment to Gross Income?

An adjustment to gross income refers to specific deductions that can be subtracted from your total income to arrive at your adjusted gross income (AGI). These adjustments are often incentivized by the IRS to encourage certain taxpayer behaviors.

Moving expenses, specifically for certain qualifying individuals, are indeed considered adjustments to gross income. They allow taxpayers to deduct expenditures incurred while moving due to a job-related reason, which can effectively lower their overall taxable income.

Charitable donations are considered itemized deductions rather than adjustments to gross income, which means they come into play after calculating AGI. Retirement contributions can also be an adjustment, specifically to certain retirement accounts, depending on the taxpayer's circumstances. The standard deduction is an amount deducted from taxable income directly and is not classified as an adjustment to gross income, as it operates differently in the tax computation process.

Thus, selecting moving expenses as the adjustment to gross income highlights the specificity of tax rules regarding reductions to AGI that incentivize strategic financial decisions.