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Above-the-line deduction

A tax deduction subtracted from your gross income before calculating your adjusted gross income (AGI). These deductions are generally more valuable than 'below-the-line' itemized deductions because they reduce your AGI, which can impact eligibility for other tax credits and deductions.

Adjusted Gross Income (AGI)

Your total gross income (wages, interest, dividends, etc.) minus certain specific deductions, such as contributions to traditional IRAs, student loan interest, and, for eligible performing artists, certain work expenses. AGI is a key figure used to determine eligibility for many tax credits and deductions.

Phase-out

A gradual reduction of a tax benefit, such as a deduction or credit, as a taxpayer's income increases beyond a certain threshold. Once income reaches a higher limit, the benefit is eliminated entirely.

Cost-of-living adjustment

An increase in benefit or income thresholds to keep pace with inflation. This helps ensure that the real value of the benefit or threshold doesn't decrease over time due to rising prices.

Qualified performing artist

For tax purposes, an individual who performs services in the performing arts for at least two employers during the tax year, has at least $200 (or $500 under this bill) in earnings from each of those two employers, and has adjusted gross income from performing arts services that is at least 25% of their total adjusted gross income.