Deductions for AGI and Deductions from AGI Standard Deductions Explained
Video Overview & Insights
What is the difference between deductions for AGI and deductions from AGI? This lesson explains above-the-line vs. below-the-line deductions — how deductions for AGI are subtracted before adjusted gross income, how deductions from AGI (the standard or itemized deduction) come after, and how the standard deduction works for dependents — built for REG CPA Exam candidates, EA students, and accounting students studying individual taxation.
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Video Timeline & Key Concepts:
Sir thank you so much for your help , but what do you mean - revenue - revenue , two times
0:00 — Introduction
2:01 — Adjusted gross income as the dividing line on Form 1040
I like your sense of humor 😊
3:12 — Deductions for AGI (above-the-line) on Schedule 1
8:33 — Deductions from AGI: standard vs. itemized
This is really great, thank you so much. ❤
11:48 — Additional standard deduction for age 65 or older or blindness
14:15 — Comparing itemized to the standard deduction
In first place you need patience to understand his English slang. Next thing is he has totally confused us in this video. I found many of your video useful but this one is soo confusing I think you were not prepared for this. From 3:15 to 6:17 total confusion
16:36 — Standard deduction for dependents
Frequently Asked Questions:
Which values am I supposed to learn if I'm taking the REG exam in May?
What is the difference between deductions for AGI and from AGI?
Deductions for AGI, also called above-the-line deductions, are subtracted from gross income to arrive at adjusted gross income. Deductions from AGI, or below-the-line deductions, are subtracted after AGI and consist of the standard or itemized deduction.
Thank u sir
Why is adjusted gross income so important?
AGI is a key subtotal on Form 1040 that separates the two categories of deductions and drives many phase-outs and limitations. Several itemized deductions and credits are calculated based on a percentage of AGI.
Thankyou professor !
What are common deductions for AGI?
Deductions for AGI include business expenses, rental real estate expenses, and Schedule 1 adjustments such as student loan interest, health savings account contributions, and deductible IRA contributions.
How does a taxpayer choose between the standard and itemized deduction?
A taxpayer compares total itemized deductions on Schedule A to the standard deduction for their filing status and uses whichever is larger, since that minimizes taxable income and therefore tax liability.
How is the standard deduction figured for a dependent?
A dependent's standard deduction is generally the greater of a base amount or earned income plus $400, capped at the regular single standard deduction, which limits the deduction for dependents with little earned income.
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