1. Why, oh Why . . . Why are the itemized deductions what they are? Why allow...

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Accounting

1.           Why, oh Why . . .
Why are the itemized deductions what they are? Why allow homemortgage interest, but not credit card interest? Why allow medicalexpense deductions, not school expense deductions? Why allow stateand local income and property taxes, but not state and local salestaxes? Why, oh why, oh why? What are your thoughts? Any itemizeddeductions you think should not be included, or that are notdeductible but be? Why? Can you make sense out of the presentscheme and the six major groups (medical, local taxes, someinterest, casualty, contributions, miscellaneous)?
2.           AGI and "above the line" expenses vs. itemized deductions
The adjusted gross income number (AGI) is an important one. Itis said it is always better for a deduction to be "for" AGI, i.e.,deductible in arriving at AGI. These are also called "above theline" deductions. Why is it better? Can you name any specificbenefits to being deductible above the AGI line?  Discuss one or two "above the line" expenses or adjustments toincome from the front page of the 1040. Why policy reason do youthink made these above the line deductions instead of as itemizeddeductions?

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4.3 Ratings (501 Votes)

1itemized deductions are the expenses that are allowed by the IRS to be deducted from the income of an individual provided these expenses are qualified to be deducted itemized dedcutions can help a person to list out the qualified expenses in their tax return The list of qualified expenses that can be See Answer

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