Section 4: 22–32%R14
Adjustments, Deductions, and the QBI Deduction
Exam insight
AGI is the pivot point of the individual return, adjustments bring it down, and dozens of phaseouts are measured against it. The §199A QBI deduction, now permanent under OBBBA, is the single most-tested below-the-line computation on REG.
CPA Exam Lab is an independent study resource and is not affiliated with, endorsed by, or sponsored by the AICPA® or NASBA. Practice questions are original content created for study purposes. “CPA” is a registered trademark of the AICPA.
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