Taxes: Deductions - for AGI

Question 1

Taxes:
Deductions - for AGI
Business Expenses

Answer 1

Form 1040
AGI = Adjusted Gross Income
Business Expenses
- are deductible for AGI
- anything associated with "trade"
- also for rent and royalty even if no "trade"

Question 2

Taxes:
Deductions - for AGI
Non-Business Expenses

Answer 2

Non-Business Expenses

• Alimony
• 1/2 Self Employment Tax
• 100% Medical Insurance Premiums by Self Employed (including self and dependents)
• Same for Long Term Care
• Moving Expenses
• IRA (Keogh) contributions and other self-employed IRAs
• Interest on Student Loans
• Contributions to health savings accounts
• Attorneys fees and court costs for discrimination suits
• penalties for early withdrawal from savings
• Domestic productive activities deductions
• forfeited interest on early withdrawals
• repayment of jury pay
• expenses associated with reforestation, clean fuels, and performing artists
• Qualified higher education
• certain executor expenses

Question 3

Taxes:
Deductions - for AGI
Moving Expenses

Answer 3

Moving Expenses
- associated with job change or new job
- must be 50 miles away
- active at new job for substantial time (39 weeks/next 12 months)
- qualifying expenses: anything reasonable to move possessions and transportation costs (not meals)
for the move, use of car, storing and insuring for 30 days

Question 4

Taxes:
Deductions - for AGI
Student Loan Interest

Answer 4

Student Loan Interest

• limit $2,500 of interest otherwise not deductible
• phased out
• if parent claims as dependent, parent can deduct

Question 5

Taxes:
Deductions - for AGI
Qualified Higher Education

Answer 5

Qualified Higher Education

Question 6

Taxes:
Deductions - for AGI
Educator Expenses

Answer 6

Educator Expenses

• up to $250
• any excess is miscellaneous itemized deduction