Is bad debt deduction For AGI or From AGI?

Question

Is bad debt deduction- when we deduct, is it for adjusted gross income or From AGI (itemized deduction)?

Answer 1

Bad debt deduction is not itemized deduction. Report as other income.

Answer 2

tax101

Answer 3

Search for "bad debt" on irs.gov

That assumes that someone owes you money, you can prove it, and have no hope of collecting it.  Nonbusiness bad debt is reported as short term loss on Schedule D.

If you have not paid money that you owe, that is income.  Although, it may not be taxable if mortgage debt was forgiven for principal residence 2007-2009.

Answer 4

A bad debt is treated as a capital loss and is reported on Schedule D.  That's reported in the Income section of your tax return so it's used in arriving at AGI.