Final answer:
The statement that two additional standard deductions are allowed for a taxpayer who is age 65 or over and blind is true. Older individuals who are blind can claim these additional deductions to reduce their taxable income and potentially lower their tax liability.
Step-by-step explanation:
The statement that two additional standard deductions are allowed for a taxpayer who is age 65 or over and blind is true. The tax code allows individuals who meet these criteria to claim additional deductions on top of the standard deduction amount. This helps reduce their taxable income and potentially lowers their overall tax liability.
For the 2021 tax year, the standard deduction amounts are $12,550 for single filers and married individuals filing separately, $18,800 for head of household filers, and $25,100 for married individuals filing jointly. Taxpayers who are age 65 or over and blind can claim an additional standard deduction amount of $1,350 if they are filing as single or head of household, or $1,700 if they are married filing jointly.
For example, if a taxpayer who is age 65 or over and blind has a total income of $30,000 and is filing as single, they can claim the standard deduction of $12,550 plus the additional standard deduction of $1,350, resulting in a taxable income of $16,100. This may help lower their overall tax liability.