Ind. Inc. Tax: for AGI Deductions

Question 1

Are moving expenses related to employment a for AGI or from AGI deduction?

Answer 1

For AGI deduction.

Question 2

Are gambling losses related to employment a for AGI or from AGI deduction?

Answer 2

From AGI/itemized deduction.

Question 3

How much interest is reported as income?

Answer 3

The amount earned.

Question 4

Is an interest penalty deductible for AGI?

Answer 4

Yes.

Question 5

Criteria for Roth IRA funds to be tax-free when withdrawn:

Answer 5

1. The person is 59 1/2,
2. OR, is disabled,
3. OR, uses the money for a first-time home purchase.

Question 6

Is money invested in a Roth IRA a for AGI Deduction?

Answer 6

No.

Question 7

Is money invested in a Traditional IRA a for AGI Deduction?

Answer 7

Yes.

Question 8

Child care expenses

Answer 8

A tax credit, not a from AGI deduction, so it does not reduce taxable income.

Question 9

for AGI deduction items include:

Answer 9

1. qualified educator expenses,
2. interest on student loans,
3. qualified moving expenses that are job related,
4. alimony paid,
5. contributions to traditional IRA plans, and 6. any penalty paid on the early withdrawal of money from a savings account.
6. 1/2 of self-employment tax payments

Question 10

Are casualty losses from natural disasters a for AGI or from AGI deduction?

Answer 10

from AGI deduction.

Question 11

Deductible moving expenses, provided criteria are met, include:

Answer 11

Costs of physically moving possessions and people.

Question 12

qualified educator expenses

Answer 12

1. include ordinary and necessary expenses paid in connection with books, supplies, equipment, software, and the like.
2. for AGI deduction up to $250.

Question 13

Do expenses for homeschooling count as qualified educator expenses?

Answer 13

No.

Question 14

criteria for moving expenses to be a for AGI deduction:

Answer 14

1. The taxpayer must normally move within a year of taking the new job.
   1a. unless circumstances arose that prevent the move in that time period.
2. Moving must be a change in the taxpayer’s main home.
3. Commute must be 50+ miles farther than the previous commute.

Question 15

Education IRA/Coverdell Education Savings Account

Answer 15

1. No benefit when money is put in fund, but money is tax-free when pulled out and properly used.
2. Beneficiary does not have to be related.
3. Beneficiary has to be under 18.
4. High-income taxpayers cannot create this plan.

Question 16

Are union dues a for AGI deduction?

Answer 16

No, they are a from AGI deduction.

Question 17

qualified educational expenses and MFJ

Answer 17

If two spouses file MFJ and both are qualified educators, then:

1. Max. total deduction is $500.
2. Each spouse can deduct up to $250.