Gross Income & Exclusions
This term refers to all income from whatever source derived unless specifically excluded by law.
What is gross income?
AGI is reported on this line of Form 1040.
What is Line 11?
This type of deduction is always available, even if you don’t itemize.
What is the standard deduction?
Unlike deductions, tax credits reduce this directly.
What is tax liability?
Distributions from traditional IRAs and 401(k)s are reported on this form.
What is Form 1099-R?
Name two types of income that are excluded from gross income
What are child support payments and workers’ compensation?
Give one example of an above-the-line deduction.
What is student loan interest, HSA contributions, or IRA contributions?
The 2024 standard deduction for a single filer is this amount.
What is $14,600?
This refundable credit assists low- to moderate-income workers, with a maximum of $7,830 in 2024.
What is the Earned Income Tax Credit (EITC)?
Up to this percentage of Social Security benefits may be taxable.
What is 85%?
Deferred income like 401(k) contributions are not taxed until this event occurs.
What is distribution/withdrawal?
If gross income is $85,000 and allowable adjustments are $10,000, what is the AGI?
What is $75,000?
Medical expenses are deductible only to the extent they exceed this percentage of AGI.
What is 7.5%?
This education credit provides up to $2,500 per eligible student for the first four years of higher education.
What is the American Opportunity Tax Credit (AOTC)?
Social Security becomes taxable if half your benefits plus all other income exceeds these base amounts ($25k single / $32k MFJ)
What are the Social Security base amounts?
Gross income becomes Adjusted Gross Income (AGI) after subtracting these.
What are above-the-line adjustments?
AGI is important because it determines eligibility for these tax benefits.
What are deductions and credits?
State and local tax (SALT) deductions are capped at this limit.
What is $10,000 ($5,000 MFS)?
Name the 7 requirements that must be met to claim the Child Tax Credit.
What are age, relationship, support, dependent status, citizenship, residency, and family income?
Nonqualified HSA withdrawals are subject to income tax plus this additional penalty percentage.
What is 20%?
Name the measure that modifies AGI for purposes like Roth IRA contributions and ACA subsidies.
What is Modified Adjusted Gross Income (MAGI)?
Name the deduction that allows up to 20% of qualified business income to be excluded from taxable income.
What is the QBI Deduction?
Mortgage interest is deductible on mortgages up to this amount for loans taken after December 15, 2017.
What is $750,000?
This nonrefundable credit helps cover daycare costs for dependents under 13 or disabled family members.
What is the Child and Dependent Care Credit?
After the SECURE Act, most non-spouse beneficiaries of retirement accounts must empty the account within this time frame.
What is 10 years?