[KarenLAcct]

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!

[jeff]

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

[KarenLAcct]

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

[KarenLAcct]

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.

[jeff]

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.

[Ninja Albert]

what ninja MCQ # is it?

[Author]

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