Question

Itemized deductions that have AGI limitations include medical expenses, personal casualty losses, and unreimbursed employee expenses. True or false?

Answer 1

True. Itemized deductions like medical expenses, personal casualty losses, and unreimbursed employee expenses have AGI limitations.

Step-by-step explanation:

True. Itemized deductions that have AGI (adjusted gross income) limitations include medical expenses, personal casualty losses, and unreimbursed employee expenses. AGI limitations mean that you can only deduct these expenses to the extent that they exceed a certain percentage of your AGI. For example, medical expenses can only be deducted if they exceed 7.5% of your AGI (10% for most taxpayers starting in 2021).