AGI Deductions Vs. From AGI Deductions (LO. 6)
Reba's 2019 income tax calculation is as follows:
Gross income
$120,000
Deductions for adjusted gross income
(3,000)
Adjusted gross income
$117,000
Deductions from adjusted gross income:
Standard deduction
(12,200)
(Total itemized deductions are $2,300)
Taxable income
$104,800
Before filing her return, Reba finds an $8,000 deduction that
she omitted from these calculations. Although the item is clearly
deductible, she is unsure whether she should deduct it for or from
adjusted gross income....