For 2018, Nigel and Lola, married taxpayers without children, calculated their total allowable itemized deductions to be $28,100. Accordingly, Nigel and Lola file jointly and should deduct from adjusted gross income
I.the standard deduction amount of $24,000
II.total itemized deductions equal to $28,100.
III.tax credits totaling $4,000 for two qualifying individuals
IV.the standard deduction of $24,000 plus the itemized deductions of $28,100

Question

For 2018, Nigel and Lola, married taxpayers without children, calculated their total allowable itemized deductions to be $28,100. Accordingly, Nigel and Lola file jointly and should deduct from adjusted gross income
I.the standard deduction amount of $24,000
II.total itemized deductions equal to $28,100.
III.tax credits totaling $4,000 for two qualifying individuals
IV.the standard deduction of $24,000 plus the itemized deductions of $28,100
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Quizplus · Accepted Answer

Since the total allowable itemized deductions are greater than the standard deduction amount, the taxpayer should deduct the total itemized deductions of $28,100 from their adjusted gross income. Tax credits for qualifying individuals are a separate calculation, and adding the standard deduction to the itemized deductions would result in double counting. Therefore, only statement II is correct.

For 2018, Nigel and Lola, Married Taxpayers Without Children, Calculated