The tax return guidelines state that certain itemized deductions cannot exceed a specified percentage of the Adjusted Gross Income (i.e., 7.5% of medical expenses). Is the deductible amount "zero" if the AGI is negative?
2007-03-20 06:45:48 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
That means you don't have enough "taxable income" to offset your itemization's.
In order to effectively reduce your tax burden by legitimate deductions you must have a tax outstanding.
good luck & bless
2007-03-20 07:34:29 · answer #1 · answered by Wood Smoke ~ Free2Bme! 6 · 1⤊ 0⤋
If your AGI is a negative number, it's treated as $0. If your AGI is already $0, there's no sense in itemizing deductions since your taxable income is already $0 so it's really a moot point.
2007-03-20 06:52:03 · answer #2 · answered by Bostonian In MO 7 · 6⤊ 0⤋
You need to file a Schedule C - a form for Business expenses. These should not be itemized deductions. When you look at the form you will see the logic. This will give you a loss for your business rather than excess deductions. The loss will be carried to your 1040.
2016-03-29 08:41:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes, the deducctible amount is zero.
2007-03-20 07:30:28 · answer #4 · answered by taxman 2 · 0⤊ 1⤋