Section 4: 22–32%R14
Adjustments, Deductions, and the QBI Deduction
Exam Insight
AGI is the hinge of the individual return — adjustments lower it, and dozens of phaseouts key off it. The §199A QBI deduction, now permanent under OBBBA, is the single most-tested below-the-line computation on REG.
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What AICPA Wants You to Know
- 1Distinguish above-the-line adjustments from itemized deductions
- 2Compute AGI and the major itemized deductions and their limits
- 3Compare the 2025 standard deduction to itemizing
- 4Apply the §199A QBI deduction, including the W-2/UBIA limit and SSTB phaseout
- 5Apply the permanent OBBBA QBI rules, including the new $400 minimum deduction
- 6Order the deduction stack correctly: above-the-line, then standard/itemized, then QBI