Taxes: Deductions - for AGI Flashcards Preview

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Flashcards in Taxes: Deductions - for AGI Deck (6)
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1

Taxes:
Deductions - for AGI
Business Expenses

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"

2

Taxes:
Deductions - for AGI
Non-Business Expenses

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

3

Taxes:
Deductions - for AGI
Moving Expenses

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

4

Taxes:
Deductions - for AGI
Student Loan Interest

Student Loan Interest
- limit $2,500 of interest otherwise not deductible
- phased out
- if parent claims as dependent, parent can deduct

5

Taxes:
Deductions - for AGI
Qualified Higher Education

Qualified Higher Education

6

Taxes:
Deductions - for AGI
Educator Expenses

Educator Expenses
- up to $250
- any excess is miscellaneous itemized deduction

Decks in REG Class (109):