Which of the following is a true statement?
A) Bunching itemized deductions is an illegal method of tax avoidance.
B) Before any applicable phase-out, the deduction for personal and dependency exemptions is $4,050 times the number of exemptions.
C) The standard deduction is increased for taxpayers who are blind or deaf at year-end.
D) A married couple is only entitled to one addition to their standard deduction even if both spouses are both over age 65.
E) All of the choices are true.

Question

Quizplus · Accepted Answer

This is a straightforward question about tax deductions. Option A is false, as bunching itemized deductions is not illegal but rather a common tax strategy. Option C is partially true, as the standard deduction is indeed increased for blind or deaf taxpayers, but it is not dependent on their year-end status. Option D is false, as married couples are entitled to two additions to their standard deduction if both spouses are over age 65. Option B is the only true statement, as the deduction for personal and dependency exemptions before phase-out is indeed calculated as $4,050 per exemption.

Which of the Following Is a True Statement