Section 4: 22–32%R13
Gross Income and Filing Status
Exam Insight
Everything on the individual return flows from gross income and the filing status that sets the brackets and standard deduction. REG tests inclusion-vs-exclusion judgment calls and the new OBBBA above-the-line deductions on nearly every form.
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What AICPA Wants You to Know
- 1Apply the all-inclusive definition of gross income and identify common exclusions
- 2Distinguish taxable from nontaxable fringe benefits, gifts, and damages
- 3Determine the correct filing status, including head of household and qualifying surviving spouse
- 4Compute the 2025 standard deduction, including the age-65/blind additions
- 5Apply the new OBBBA temporary above-the-line deductions (tips, overtime, car-loan interest, senior deduction)
- 6Apply the kiddie tax to a child's net unearned income