Q1) List a dozen above the line deductions and explain the rule regarding moving expenses. List 7 itemized deductions from schedule A.
Above the line deductions: a) Educators expenses b) Certain business expenses of reservists, performing artists, etc. c) Health savings account deduction d) Moving expenses e) Deductible part of self-employment tax f) Self-employed SEP, SIMPLE, and qualified plans g) Self-employed health insurance deduction h) Penalty on early withdrawal of savings i) Alimony paid j) IRA deduction k) Student loan interest deduction l) Tuition and fees deduction m) Domestic production activities deduction n) Jury duty repayments
Below the line deductions (itemized deductions): a) Medical and dental expenses b) Taxes paid c) Interest paid d) Gifts to charity e) Casualty and theft losses f) Job expenses and certain miscellaneous deductions g) Other miscellaneous deductions
Moving expenses: 1) Deduction for job-related relocation 2) Moving expenses are deductible to arrive at AGI to the extent the expenses are not reimbursed or paid for by the taxpayer’s employer. a) If expenses exceed reimbursements only the qualified expenses in excess of the reimbursement are deductible. b) If reimbursements exceed expenses, the excess is included in income 3) Qualifications: a) The individual’s new principal place of work is at least 50 miles farther from the former residence than was the former principal place of work. b) If the individual didn’t have former principal place of work, the new principal place of work must be at least 50 miles from the taxpayer’s former residence. c) The individual is employed full time in the new location during at least 39 weeks in the 12 month period immediately following the move. d) The individual is