CLASSIFICATION OF DEDUCTIBLE EXPENSES
01.Core Concepts
• Above-the-line deductions • Below-the-line deductions Tax Formula Action Gross Income Exclusions - Adjustments (Above-the-line deductions) - Adjusted Gross Income (AGI) (“The Line”) = The greater of the Standard Deduction or Itemized Deductions (Below-the-line deductions) - The Qualified Business Income (QBI) Deduction - The Bonus Deduction for Seniors (2025-2028) - Charitable Contributions for Nonitemizers (beginning in 2026) - Tip Income, Overtime Income, & Car Loan Interest (2025-2028) - Taxable Income =