Term Answer Description Adiustments A. This is used to calculate limits for cert

Question

Term Answer Description Adiustments A. This is used to calculate limits for certain itemized deductions Adjusted gross income B. This can be claimed if taxpayer provides more than half their support C. Deductions such as employee, personal retirement, higher education, Deductions and support expenses are included in this category Standard deduction Itemized deduction Exemption Itemized deduction example Capital gains tax categories Steps to AGI Steps to taxable income D. This is mortgage interest expense E. This is adjusted annually for changes in cost of living. F. Many of these are based on a percentage of AGI. G. This term equals gross income less adjustments H. This can be either standard or itemized I. Reduce AGI by the standard deduction and allowable exemption:s J. This figure is based on tax bracket, 5% to 15% tax rate if held over 12 months.

Explanation / Answer

As per rules I am answering the first 4 subparts of the question

1: Adjustments = I

AGI is adjusted for standard deduction and exemptions which are allowed.

2: Adjusted gross income = G

AGI= Gross Income- Adjustments for standard deduction and exemptions

3: Deductions = H

Deductions come as standard deductions or itemized deductions

4: Standard deduction= E

Standard deduction amount is prescribed by IRS as per the cost of living

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