Using the topics listed in Module Two Adjusted Gross Income List in the Supporting Materials section, determine when and how the topic applies to AGI. Give scenarios to show that you understand what is taxable and what is nontaxable. There are several websites listed in the Supporting Materials section that will help you find the code and examples of application. You may also wish to view the Adjustments to Income section found on Schedule 1 to further understand how deductions are included in the calculation of adjusted gross income. Keep in mind, however, that Schedule 1, and its accompanying information, is updated annually and subject to change. Thus, be sure to research the correct tax year.
Select one topic from the Module Two Adjusted Gross Income List in the Supporting Materials section. Use the Tax Research Guide found in the Supporting Materials section to research the topic you select. Be sure to cite the IRC location (be specific) and describe examples of the application of the code for two different scenarios (one where the deduction applies and one where the deduction would not apply). Add citations for all resources used in this assignment.
Specifically, you must address the following rubric criteria:
Identify the research topic you want to investigate.
Identify sources specifying code, section, and subsection as applicable. Include the following:
2–3 sources
List parameters for deductibility for your topic. Below are examples of some parameters you may encounter.
Filing status
Income threshold
Time or year in question
Other unique parameters that apply to the circumstances
Describe a scenario of qualifying for AGI adjustment.
Explain why the client meets the criteria.
Describe a scenario of not qualifying for AGI adjustment.
Explain why the client didn’t meet the criteria.
Explain tax planning implications.
What to Submit
Submit a 1- to 3-page Microsoft Word document using the Module Two Adjusted Gross Income Assignment Template. The template should use double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.
https://www.irs.gov/
https://uscode.house.gov/
