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

For agi deduction is also called above the line

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

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