What is the main difference between a standard deduction and an itemized deduction?

A) A standard deduction is the flat dollar amount taxpayers must add to their taxes. An itemized deduction is based on adding multiple contributions and taxes that have not been yet in the year.

B) A standard deduction is based on adding multiple contributions and taxes that have not been yet in the year. An itemized deduction is the flat dollar amount taxpayers must add to their taxes.

C) A standard deduction is based on subtracting multiple contributions and taxes already paid during the year. An itemized deduction is the flat dollar amount taxpayers can subtract from their taxes.

D) A standard deduction is the flat dollar amount taxpayers can subtract from their taxes. An itemized deduction is based on subtracting multiple contributions and taxes already paid during the year.

Question

Social Studies

Sherlyn

18 October, 16:59

What is the main difference between a standard deduction and an itemized deduction?

A) A standard deduction is the flat dollar amount taxpayers must add to their taxes. An itemized deduction is based on adding multiple contributions and taxes that have not been yet in the year.

B) A standard deduction is based on adding multiple contributions and taxes that have not been yet in the year. An itemized deduction is the flat dollar amount taxpayers must add to their taxes.

C) A standard deduction is based on subtracting multiple contributions and taxes already paid during the year. An itemized deduction is the flat dollar amount taxpayers can subtract from their taxes.

D) A standard deduction is the flat dollar amount taxpayers can subtract from their taxes. An itemized deduction is based on subtracting multiple contributions and taxes already paid during the year.

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Answers (2)

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Kayla Velez · Answer 1

The main difference between a standard deduction and an itemized deduction is a standard deduction is the flat dollar amount taxpayers must add to their taxes. An itemized deduction is based on adding multiple contributions and taxes that have not been yet in the year.

Answer: Option A

Explanation:

The tax deduction is the way to decrease taxable income, which decreases the amount to be paid to the government. This saves you a big amount on your tax return. It's people choose to choose what type of deductions they want.

A standard deduction fixed amount that taxpayers have to pay. Based on the filing of the taxpayer's characteristics for the years it varies. Itemized deductions are based on certain expenses or services, that you can deduct from paying to the federal government apart from common tax.

Frankie Cordova · Answer 2

D) A standard deduction is the flat dollar amount taxpayers can subtract from their taxes. An itemized deduction is based on subtracting multiple contributions and taxes already paid during the year.

Explanation:

- The main factor that will determine the amount of your standard deduction would be your age, your marriage status, and the amount of children you have in your family. The standard deduction will be cut before income tax is applied. The rate will be flat but varied each year depending on government's policy.

- As for itemized deduction, it will be based on the personalized expense that you incurred within that year. For example, if during the year you make a donation to a charity, the amount of that donation will be exempted from your taxes.