Question

Which of the following is NOT a from AGI deduction?

Multiple Choice

Standard deduction.

Itemized deduction.

Deduction for qualified business income.

None of these. All of these are from AGI deductions.

Answer 1

Solution : Here is an Correct option is (D i.e non of these. All of these are from AGI deductions) .

Since Standard deduction is deductible as per rules applied by IRS . The standard deduction limits are increased in 2018 . The standard deduction amounts will increase to $12,000 for individuals and $18,000 for heads of household And $24,000 for married couples filling jointly and surviving spouse it is depend upon filling status of taxpayer .

Itemized deduction is also deductible from AGI as per rules,if taxpayer allowable itemized deductions are more than Standard deduction at time taxpayer can take itemized deductions to reduce tax by take itemizing deduction .

And Qualified business income also deductible from AGI as per new tax law rule 20% deduction on qualified Business income is subject to limitation that is for every entrepreneur since to qualify for the deduction taxpayer Taxable income must be below $157,500 for singe and $315,000 for married couples filling jointly so it is depend on Taxpayer AGI and filling status of the taxpayer . So all Three Standard deduction , Itemized deduction and deduction For Qualified business income are deductible from AGI . So Correct answer is D (none of these. All of these are From AGI deductions)