I am taking some MCQ quizzes in Ninja CPA review for REG and I got a question wrong because I didn't use 7.5% vs 10% to calculation the % of AGI for deduction. 10% is still testable UNTIL 10/1/2021, right?
The answer explanation said: “The medical expenses are deductible to the extent they exceed 7.5% of Carroll’s AGI (7.5% × $100,000).
Total deductible medical expenses of $20,000, less $7,500, equals $12,500.”
Is this just a bad question or am I completely and totally confused? Slightly panicked. 😉
AUD - 79 BEC - 80 FAR - 75 REG - NINJA in Training
The AICPA told the review providers back in December or so that the CARES Act wouldn't be testable as of 1/1/21, even though it was the law for 2021 returns. This means that the medical deduction reverted back to TCJA @ 7.5%. I checked and triple-checked this with the AICPA.
NINJA has been this way since January with no issues. I'd just roll with it.