Question

Which of the following, if any, is a deduction for AGI?

a. Contributions to a traditional Individual Retirement Account.

b. Child support payments.

c. Funeral expenses.

d. Loss on the sale of a personal residence.

e. Medical expenses.

Answer 1

Solution: Option a. Contribution to a Traditional Individual Retirement Account (IRA) is deductible for AGI.

SN	Explanation
a.	Contribution to a Traditional Individual Retirement Account (IRA) Deductible; Contribution to a Traditional Individual Retirement Account (IRA) is deductible in the tax year during which they are paid.
b.	Child Support Payments Not Deductible; Child Support Payments are not deductible and also is not considered as income in hand or recipient. Hence Child Support Payments are considered a tax-neutral event.
c.	Funeral Expenses Not Deductible; Funeral Expenses are not deductible on an individual tax return who pays and on decedent’s return also. But if IRS require to file a tax return by estate than funeral expenses will be deductible.
d.	Loss on Sale of Personal Residence Non Deductible; Loss on Sale of Personal residence is not deductible because personal losses are not deductible from AGI. But if the loss exceeds certain limits as prescribed of AGI than it is deductible.
e.	Medical Expenses Non Deductible; Medical expenses are not deductible prima facie but if it exceeds the certain prescribed limit then it is deductible.