ExpertHard1 markMultiple Choice
CPA · Question 61 · Area IV: Individual Taxation
Which of the following is an 'above-the-line' deduction (Adjustment to Income) for an individual taxpayer?
Which of the following is an 'above-the-line' deduction (Adjustment to Income) for an individual taxpayer?
Answer options:
A.
Real estate taxes on a personal residence.
B.
Student loan interest.
C.
Charitable contributions.
D.
Mortgage interest.
How to approach this question
Memorize the list of Adjustments (Educator, HSA, Moving (military), SE Tax, SE Health, Penalty on early withdrawal, Alimony (pre-2019), Student Loan Interest).
Full Answer
B.Student loan interest.✓ Correct
Student loan interest (up to $2,500) is an adjustment to income (above-the-line). Real estate taxes, charitable contributions, and mortgage interest are itemized deductions (below-the-line).
Common mistakes
Confusing adjustments with itemized deductions.
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