Is there anything we can do to offset the 53000. money we took out of our 401 K?

[kennewickmom]

Took out money for home improvements and of course already paid over 10000 in taxes but the extra income is making it so we can't deduct many of our items.

[VolvoGirl]

What items can't you deduct?  Extra income doesn't affect business expenses on schedule C.  It can affect personal itemized deductions on Schedule A like for Medical.  

[kennewickmom]

Deductions on my husbands W2 Job such as  Tools,  Student Loans interest to name a couple off hand but it just seems like when I add my bottom line doesn't change.

[VolvoGirl]

Yes sorry, but the increase in income didn't affect job expenses.  W2 employee job expenses and other misc deductions have been suspended from 2018-2025. See
https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-b...