Chartered Retirement Planning Counselor (CRPC) Practice Exam 2025 - Free CRPC Practice Questions and Study Guide

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Question: 1 / 660

All of the following are classified as deductions for adjusted gross income (AGI) except:

Personal exemptions

Personal exemptions are not classified as deductions for adjusted gross income (AGI). Instead, they were designed to reduce taxable income but were effectively eliminated starting in the tax year 2018 due to the Tax Cuts and Jobs Act, which suspended personal exemptions until the end of 2025. Before that, they directly reduced the amount of income subject to tax but were not included in the AGI calculation itself.

In contrast, business expenses, alimony paid, and deductible IRA contributions are indeed classified as deductions for AGI. These deductions directly reduce a taxpayer's AGI, thereby lowering the overall taxable income and highlighting their importance in tax planning strategies. For instance, alimony paid is deductible by the payer, and contributions to a deductible IRA can also significantly impact a taxpayer's AGI. This distinction is crucial for effective retirement and tax planning.

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Deductions for business expenses

Alimony paid

Deductible IRA contributions

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