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 $3,900 times the number of exemptions.
E)All of these are truE.For 2013,each exemption is worth $3,900.

Question

Quizplus · Accepted Answer

The statement "Before any applicable phase-out,the deduction for personal and dependency exemptions is $3,900 times the number of exemptions" is true for tax year 2013. Option A is partially true but incomplete, as the standard deduction is also increased for taxpayers over 65 years old. Option B is false, as both spouses over age 65 can claim the additional standard deduction. Option C is false, as bunching itemized deductions is a legal tax planning strategy. Option E is incorrect, as 2013 tax year information is no longer applicable.

Which of the Following Is a True Statement