Practice Quiz

Financial Planner

Category - Tax Planning

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Which of the following is NOT an adjustment to adjusted gross income, because it is allowed for alternative minimum tax purposes?
  1. Standard deduction
  2. Qualified housing interest
  3. Personal exemptions
  4. State and local taxes
Explanation
Answer: B - Many deductions allowed in figuring regular taxable income are not allowed for alternative minimum taxable income. These includes excess medical expenses, state and local taxes, most interest, certain miscellaneous itemized deductions, and personal and dependent exemptions. While most interest is not allowed, qualified housing and investment interest is allowed, and therefore is not an adjustment.
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