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

Question

Quizplus · Accepted Answer

This is the only statement that is true. The deduction for personal and dependency exemptions is $4,050 per exemption, before any applicable phase-out. Statement A is false as the standard deduction is increased for taxpayers who are blind or deaf throughout the tax year, not just at year-end. Statement B is also false as each spouse over age 65 is entitled to their own addition to the standard deduction. Statement C is false as bunching itemized deductions, which involves strategically timing payments and expenses to maximize tax benefits, is a legal tax planning strategy.

Which of the Following Is a True Statement