Question
Why is the distinction between deductions for AGI and deductions from AGI important for individuals? A. Deductions for AGI reduce the taxpayer's gross income by
Why is the distinction between deductions for AGI and deductions from AGI important for individuals?
A.
Deductions for AGI reduce the taxpayer's gross income by the full amount of the deduction even if the standard deduction is used. Deductions from AGI are not beneficial unless their sum exceeds the standard deduction, in which case these deductions will be included as itemized deductions. Also, some deductions from AGI are decreased by a percentage of AGI.
B.
Deductions for AGI reduce the taxpayer's gross income by the full amount of the deduction even if the standard deduction is used. Deductions from AGI are not beneficial unless their sum exceeds 25% of the AGI, in which case these deductions will be included as itemized deductions.
C.
Deductions for AGI reduce the taxpayer's gross income by the full amount of the deduction only when the standard deduction is used. Deductions from AGI reduce the taxpayer AGI.Also, many deductions from AGI are decreased by a percentage of AGI.
D.
Deductions from AGI reduce the taxpayer's gross income by the full amount of the deduction even if the standard deduction is used. Deductions for AGI are not beneficial unless their sum exceeds the standard deduction, in which case these deductions will be included as itemized deductions. Also, many deductions for AGI are decreased by a percentage of AGI.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
