Question

Business expenses are reported directly on the Form 1040 and are deducted for AGI.

A. True
B. False

Answer 1

Business expenses are not reported directly on the Form 1040 and are deducted for AGI.

Step-by-step explanation:

The statement in the question is False.

Business expenses are not reported directly on the Form 1040. Instead, they are reported on a separate form called Schedule C, which is used to report business income and expenses.

Business expenses are deducted from the gross income to arrive at the adjusted gross income (AGI).