Nolo's Plain-English Law Dictionary

Adjustment

The settlement of how much is to be paid on a claim or debt. For example, an IRS-approved change to a tax liability as originally reported on a tax return. Or, an insurance company's settlement on a claim. Also includes deductions from an individual taxpayers total income on Form 1040.
NOLO-web1:DRU1.6.8.27.20160921.41205