FOR AGI deductions reduce AGI, the importance of classification is because the AGI is used for establishing limits on certain deductions FROM AGI such as medical expenses, education expenses, property taxes, charitable contributions, and interest found in the itemized deductions. Generally, deductions FOR AGI are related to business expenses while, deductions FROM AGI are personal in nature.

I’m a full-time student who worked sporadically last summer and fall moving furniture. I received a 1099c stating I earned about 00. With my education expenses, and other deductions, my "net income" is something like -6000 dollars.

However, Turbo Tax is telling me that I still made about 4300 dollars in "business profits" and that, despite living a student loan debtors life with a hugely negatively net income I still owe 615 dollars for business income. Is this right? Do I need to pay 613 dollars despite my income being incredibly inadequate to my expenses?
I did mean misc. Thank you Wayne.
Thanks Anna. It did dawn on me that there were probably "business expenses" that could be deducted.

I asked the following question a few days ago:

"I’m a graduate student, but I also work part-time.

For my dissertation research, I’ve received 3 grants. Grant A is from a government agency — they gave the money to my university, which buys the stuff I need for me. I’m not going to declare this grant as income, and I’m not going to deduct any of the expenses. Grant B is the same, only it’s from a private foundation.

Grant C is from another private organization. Unlike the other two, they’re giving the money directly to me. They asked for my info to fill out a 1099 form. Does this mean that I have to include this grant as personal income?

When I use the grant for dissertation-related expenses (travel to collect data, lab supplies, publishing charges), can I deduct these when I prepare my taxes? I know that you can deduct business-related expenses if your employer doesn’t reimburse you, but does this count as a job? And I know that, as a student, you can deduct education-related expenses like tuition and activity fees, but this doesn’t seem to be in the same category."

The one answer I got said that no, I couldn’t deduct them. I didn’t like that (who likes paying taxes?), so I looked at the IRS website.

I found the IRA guidelines for deducting education expenses:

"You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests.

The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.

The education maintains or improves skills needed in your present work.

However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it:

Is needed to meet the minimum educational requirements of your present trade or business, or

Is part of a program of study that will qualify you for a new trade or business.

You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree."

Here is my situation: I am a full time graduate student in anthropology. I teach anatomy part time at a different university. Obviously, I don’t need the PhD to teach, since I’m teaching now, but most of the other teachers have Ph.D.’s in anthropology or another field. My original career goal was to become a researcher. Now, I think I’ll stick with teaching. My dissertations doesn’t directly impact by ability as an anatomy teacher, but I think I’ll have more job opportunities with a Ph.D. (in any field) than I would if I didn’t finish my dissertation.

Do you think I can deduct my expenses as work-related educational expenses?
V.B., I’m not trying to twist the tax law … I was just trying to see if there was a way to save money since I’m going to have to pay taxes on thousands of dollars that are basically going to go straight to my advisor’s lab.