In terms of the tax formula applicable to individual taxpayers, which of the following statements, if any, is correct?
A)In arriving at AGI, a taxpayer must elect between claiming deductions for AGI and deductions from AGI.
B)In arriving at taxable income, a taxpayer must elect between claiming deductions for AGI and deductions from AGI.
C)If a taxpayer has deductions for AGI, the standard deduction is not available.
D)In arriving at taxable income, a taxpayer must elect between deductions for AGI and the standard deduction.
E)None of these.

Question

Quizplus · Accepted Answer

The statements provided all contain inaccuracies regarding the tax formula for individual taxpayers. Deductions for AGI (above-the-line deductions) are claimed before AGI is calculated and do not affect the taxpayer's ability to claim the standard deduction or itemized deductions (deductions from AGI) to arrive at taxable income. There is no requirement to elect between deductions for AGI and deductions from AGI or between deductions for AGI and the standard deduction.

In Terms of the Tax Formula Applicable to Individual Taxpayers