Question

In the following independent case, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) deductible neither for nor from AGI before considering income limitations or the standard deduction. (Leave no answer blank. Enter zero if applicable.)

Required:
Fran spent $114 for uniforms for use on her job. Her employer reimbursed her for $58 of this amount under an accountable plan (and did not report the reimbursement as wages).

Answer 1

Fran can deduct $114 - $58 = $56 from her AGI (2).

Step-by-step explanation:

Deductions from AGI are deductions that must be itemized (below the line), while deductions for AGI reduce your taxable income (above the line).

Fran can deduct her net uniform expenses since she is required by her employer to use the uniform and it is not a normal outfit that she could use everyday.