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The difference between deduction for AGI and deduction from AGI is that deduction for AGI reduces your total income before calculating your adjusted gross income, while deduction from AGI reduces your adjusted gross income after it has been calculated.

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What is the difference between deductions for AGI and deductions from AGI when calculating taxable income?

Deductions for AGI are subtracted from your total income to arrive at your adjusted gross income (AGI), while deductions from AGI are subtracted from your AGI to determine your taxable income. Deductions for AGI include items like student loan interest and educator expenses, while deductions from AGI include items like medical expenses and charitable contributions.


What is the difference between adjusted gross income (AGI) and income from AGI?

Adjusted Gross Income (AGI) is the total income you earn in a year minus certain deductions, such as student loan interest or contributions to retirement accounts. Income from AGI refers to the remaining income after these deductions have been taken into account.


What is the difference between AGI, MAGI, and taxable income?

AGI (Adjusted Gross Income) is the total income you earn in a year minus certain deductions. MAGI (Modified Adjusted Gross Income) is AGI with certain additional adjustments. Taxable income is the amount of income that is subject to taxation after deductions and adjustments.


What is the difference between the lifetime learning credit and the tuition and fees deduction when it comes to educational expenses?

The main difference between the lifetime learning credit and the tuition and fees deduction is how they reduce your tax bill. The lifetime learning credit directly reduces the amount of tax you owe, while the tuition and fees deduction reduces your taxable income. This means the lifetime learning credit can potentially provide a greater tax benefit than the tuition and fees deduction.


What is the difference between the standard deduction and personal exemption when filing taxes?

The standard deduction is a set amount that reduces your taxable income, while the personal exemption is an additional amount you can deduct for yourself and each of your dependents. The standard deduction is a fixed amount set by the government, while the personal exemption amount can vary depending on your filing status and other factors.

Related Questions

What is the difference between inference and deduction?

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What is the difference between deductions for AGI and deductions from AGI when calculating taxable income?

Deductions for AGI are subtracted from your total income to arrive at your adjusted gross income (AGI), while deductions from AGI are subtracted from your AGI to determine your taxable income. Deductions for AGI include items like student loan interest and educator expenses, while deductions from AGI include items like medical expenses and charitable contributions.


New Medical Expense Deduction Guidelines for Tax Year 2013?

I’ve written before about the deduction that the IRS allows for medical expenses. Before we get to the change in the IRS guidelines for tax year 2013, let’s recap a little bit. The IRS allows you to deduct certain medical and dental expenses from your taxable income. This is a “below-the-line” deduction, which means it takes place after your Adjusted Gross Income (or AGI is calculated). And it’s necessarily a “below-the-line” deduction because in order to claim the deduction your medical and dental expenses must exceed a percentage of your AGI. This means that you can’t start counting the deduction from dollar one spent on medical expenses. In fact, historically you could only deduct that portion which exceeded 7.5% of your AGI. This means that if, in tax year 2012, if your AGI was $100,000, the first $7,500 of medical expenses were on you. Only the amount which exceeded this threshold was allowed to be claimed as a deduction. Everything changes this year. In fact for 2013, it gets worse. Now instead of meeting the threshold of 7.5% of your AGI, taxpayers are only allowed a deduction for medical expense which exceed 10% of their AGI. So given the above example, it wouldn’t be until your medical expenses reached $10,000.01 that you could even think about taking this deduction. So if your medical expenses totaled $11,000, you could only claim a deduction for $1,000. There is one exception to this new rule. Those taxpayers which are 65 years or older are still allowed to claim a deduction for the amount which exceeds 7.5% of their AGI. To learn more about this new IRS policy, as well as to ascertain exactly which medical and dental expense are allowed to be included in the deduction calculation please refer to IRS publication #502.


What is the difference between adjusted gross income (AGI) and income from AGI?

Adjusted Gross Income (AGI) is the total income you earn in a year minus certain deductions, such as student loan interest or contributions to retirement accounts. Income from AGI refers to the remaining income after these deductions have been taken into account.


Difference between induction and deduction?

Induction is reasoning down to a set of principles, from facts. Deduction is going from a generalized down to particulars.


What is the difference between exemption and deduction?

Exemption doesn't form part of total income while deduction form part of a total income.


Can dental bills be deducted on income tax return?

Yes, if you itemize deductions on Form 1040 Schedule A, but the deduction may be limited to zero if your adjusted gross income (AGI) is high and your deductible expenses are low.For example, if your AGI is $40,000 and your medical and dental expenses are $4,000, your deduction will be limited to $1,000: $40,000 AGI x 7.5% = $3,000 threshold. $4,000 expenses minus $3,000 threshold = $1,000 deduction.See the attached link for a list of expenses that qualify for the medical and dental expense deduction.


What is difference between bankers discount and true discount?

The Banker's Gain (BG) is the difference between a banker's discount and a true discount. It is a deduction with simple interest.


What is the difference between AGI, MAGI, and taxable income?

AGI (Adjusted Gross Income) is the total income you earn in a year minus certain deductions. MAGI (Modified Adjusted Gross Income) is AGI with certain additional adjustments. Taxable income is the amount of income that is subject to taxation after deductions and adjustments.


What is the difference between reduction and deduction?

Reduction means making the object smaller, reducing the size of something. Deduction means taking something away, making the amount smaller.


What are IRA deduction limits?

On December 12, 2013 the Internal Revenue Service released the IRA Deduction Limits for 2013. For those covered by a retirement plan at work, the modified AGI for a full deduction is $59,000 for a single person and $95,000 for married joint filers or certain widows/widowers.


What is the difference between inference and deduction?

Inference involves drawing conclusions based on evidence and reasoning, while deduction involves reaching a specific conclusion based on a set of premises or rules.