Which of the following is a true statement?
A) Personal exemptions, but not dependency exemptions, are subject to phase-out.
B) A married filing joint taxpayer with AGI of $500,000 would not be able to deduct personal and dependency exemptions.
C) At most, only 80% of exemptions are subject to phase-out.
D) Itemized deductions, but not exemptions, are subject to phase-out.
E) None of these is true.

Question

Quizplus · Accepted Answer

A married filing joint taxpayer with AGI of $500,000 would not be able to deduct personal and dependency exemptions. This is because the personal and dependency exemptions are subject to phase-out starting at certain income levels, and for married filing joint taxpayers with an AGI of over $313,800 in 2017, the exemptions are fully phased out. Therefore, a taxpayer with an AGI of $500,000 would not be eligible for any personal and dependency exemptions. The other statements in the answer choices are false.

Which of the Following Is a True Statement