Individual Adjustments & Deductions - CPA Regulation (REG)

Card 0 of 6

Question

Which of the following amounts represents an adjustment to adjusted gross income (AGI) for the current tax year?

Answer

For a divorce finalized on or before Dec. 31, 2018, alimony received is included in gross income. For divorces finalized after this date, alimony is not included in gross income. All other items are regularly excluded from AGI.

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Question

The self-employment tax is:

Answer

Self-employment tax is only partially deductible (50%), and is calculated as part of determining AGI.

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Question

Which of the following is not a deduction to arrive at adjusted gross income?

Answer

Mortgage interest is only included as a deduction, or a “below the line” reduction of a tax liability. All of the others are “above the line” reductions of AGI, prior to the standard or itemized deduction.

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Question

The self employment tax is:

Answer

One half of the self-employment tax is deductible to arrive at adjusted gross income. These other options are partially or not deductible.

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Question

Of the following, which is not an adjustment to arrive at adjusted gross income?

Answer

The qualified mortgage interest paid is deductible on Sch A as an itemized deduction.

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Question

Based on the TCJA of 2017, which statement is correct? Included in taxable gross income is:

Answer

Child support no matter what year is not included in AGI. Alimony received based on an agreement on or before 12/31/2018 would be included.

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