In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements 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 ???? ???.
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

None of the statements are correct. A taxpayer is allowed to claim both deductions for AGI and deductions from AGI, and the standard deduction is still available even if a taxpayer has deductions for AGI. Deductions for AGI are subtracted from gross income to arrive at AGI, while deductions from AGI (such as the standard deduction) are subtracted from AGI to arrive at taxable income. Therefore, there is no election between the two types of deductions in arriving at taxable income.

In Terms of the Tax Formula Applicable to Individual Taxpayers