Section 4: 22–32%R13
Gross Income and Filing Status
Exam insight
Everything on the individual return starts with gross income and the filing status that sets your brackets and standard deduction. REG tests whether you can separate what counts as income from what is excluded, and layers the new OBBBA above-the-line deductions on top.
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
Patterns in this topic
The exam re-skins the same archetypes. Recognize these here, then drill them in the Pattern Lab.
Gross Income and StatusEverything is income unless a section excludes it, and the filing status turns on marital status and who the taxpayer supports.The Deduction MenuSort each deduction by where it lands: above the line to reach AGI, then the greater of the standard deduction or itemized below it.
Exam tip
Study smarter: before you expand each card, cover the screen and try to recall what the concept means from its title alone. Retrieving it from memory builds the recall the exam actually tests, and it beats re-reading.