For AGI deduction is also called above the line deduction which is better than

For agi deduction is also called above the line

This preview shows page 1 out of 1 page.

For AGI deduction is also called above-the-line deduction, which is better than deduction from AGI. Three reasons, first of all, above-the-line deductions let you reduce your AGI. Reduced AGI might qualify you for other tax credits. Second, if you are subject to AMT (Alternative Minimum Tax), above-the-line deductions pass thru AMT while many other deductions would be disallowed. Finally, you can take above-the-line deductions whether you itemized or not. The Foreign Account Tax Compliance Act (FATCA) is a United States federal law that requires United States persons, including individuals who live outside the United States, to report their financial accounts held outside of the United States, and requires foreign financial institutions to report to the Internal Revenue Service (IRS) about their U.S. clients. Congress enacted FATCA to make it more difficult for U.S. taxpayers to conceal assets held in offshore accounts and shell corporations, and thus to recoup federal tax revenues. When confronting areas that one might not be familiar it can seem problematic, however if one educated themselves with the topic the task will seem less burdensome. Having a basic understanding for these topics discusses a taxpayer can file their taxes as a confident person and exercising their rights to the fullest.
Image of page 1

You've reached the end of your free preview.

Want to read the whole page?

  • Spring '13
  • WILSON
  • Accounting, Taxation in the United States, tax credit, American Opportunity Tax, opportunity tax credit, Account Tax Compliance

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes