Question

Select a deduction for AGI and explain how the deduction works, why Congress allows that deduction (what policy aims it serves), and why it should be a deduction for AGI rather than from AGI. What impact would switching that deduction to a deduction from AGI have?

Explain why AGI is so significant in the determination of tax liability.

Your initial posting should be 250

Answer 1

Answer :-

• At its most straightforward, the inside income benefit (n.d) characterizes balanced gross pay (AGI) as " net pay short changes in accordance with pay".
• It is a fundamental figure determined on assessment forms in the wake of detailing all salary that is liable to charge including the assessable benefits on your calendar C or C-EZ (business benefit or misfortune computation) and lessening it with various explicit kind of reasoning which are normally refereed to as being over the line.
• A considerable lot of the points of confinement for findings those underneath the line and the further duty figuring dependent on salary depend on the estimation of this number, your AGI.
• For instance, numerous reasonable findings are eliminated if your AGI is in excess of a specific sum.
• For 2016, citizens started to misfortune part of their deductions if their AGI was above.

Note;-

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