Question

List four items that are considered deductions for AGI(Adjusted Gross Income) - when listing these items - state whether they are deducted on the Form 1040 or on a supporting form or schedule.

What are considered Educational Related Expenses as they relate to deductions for AGI(Adjusted Gross Income)

Answer 1

FOUR ITEMS THAT ARE CONSIDERED DEDUCTION FOR AGI

Expense on carrying on a trade or bussiness including most rental activities.

   yes, they are deductible for FORM 1040, and there is some exception for non profit organisation.

Health saving account deductions.

no it is not deductible on FORM 1040 and their deduction is based on form 8889.

Penalties imposed by financial institutions and others on early withdrawal of savings

   no it is not deductible on FORM 1040 and we shall recieve FORM 1099-INT from the bank for early withdrawal penalies.

One half of self employment tax

   Yes, it is reported in FORM 1040 as part of individual federal tax return.

WHAT ARE CONSIDERED EDUCATIONAL RELATED EXPENSE AS THEY RELATE TO DEDUCTION FOR AGI

Amount paid for tuition fees and other related expense for an eligible student that are required for enrolment or attendence at an eligible educational instituition eg . an activity fee that all student are required to pay to fund on all on campus student organisation and activities.

Expense for book supplies equipment that a student need for course of study are considered as educational expense even it is not paid to the school.