For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income. True False

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Business

Savion Melton

12 April, 04:49

For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income. True False

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Hines · Answer 1

The statement is: True.

Explanation:

The Adjusted Gross Income (AGI) is a measure based on individuals' gross income that serves as the basis for different deductions, among them, taxes. Taxpayers can request a tax credit based on certain expenditures that can be eligible for deduction. To do so, they must itemize those expenses in Form 1040 (Schedule A). Otherwise, the deduction will be based on the taxpayer's AGI.