REG ****Help! 10% or 7.5% for Medical Expense for test on 9/28/2021

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  • #3306236
    KarenLAcct
    Participant

    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. 😉

    Thanks!

    AUD - 79
    BEC - 80
    FAR - 75
    REG - NINJA in Training
    Good luck to everyone.

    FAR- 49, 75  (whew!)

    AUD - 72, 79

    BEC - 80

     

    #3306245

    It's 7.5% for CPA Exam purposes. NINJA is correct in this instance.

     
    Jeff Elliott, CPA (KS)
    NINJA CPA Review
    #3306248
    KarenLAcct
    Participant

    Wow, thanks. I am so glad I asked. Appreciate the response.

    AUD - 79
    BEC - 80
    FAR - 75
    REG - NINJA in Training
    Good luck to everyone.

    FAR- 49, 75  (whew!)

    AUD - 72, 79

    BEC - 80

     

    #3306251
    KarenLAcct
    Participant

    Another thing, my ROGER notes say 10% is testable until 10/1/21 as well as some other items. I'll have to look into a few things.

    AUD - 79
    BEC - 80
    FAR - 75
    REG - NINJA in Training
    Good luck to everyone.

    FAR- 49, 75  (whew!)

    AUD - 72, 79

    BEC - 80

     

    #3306254

    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.

     
    Jeff Elliott, CPA (KS)
    NINJA CPA Review
    #3309355
    Ninja Albert
    Participant

    what ninja MCQ # is it?

Viewing 6 posts - 1 through 6 (of 6 total)
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