TAX: Deductions for AGI

Question 1

How much can interest on education loans can be deducted for AGI?

Answer 1

2,500 deduction (cannot take this deduction if you’re a dependent)

Question 2

When is Alimony deductible?

Answer 2

If you finalized before 2018. Deductible for the person paying.

Question 3

How much of self-employment income is deductible for AGI?

Answer 3

50%

Question 4

How much of health insurance premiums are deducible by a self-employed worker?

Answer 4

100% as long as it doesn’t exceed net earnings from self-employment

Question 5

Penalty on early withdrawal on savings is that deductible for AGI

Answer 5

Yes

Question 6

What is a health savings account? Are the contribution deductible?

Answer 6

The contribution is deductible.

The investment income from the account is tax free.

The distribution from the account are not included in the income as long as the entire amount is used for medical expenses.