Final answer:
It is false that taxpayers must choose between deductions for AGI and the standard deduction. Taxpayers can take both deductions for AGI and the standard deduction or choose to itemize deductions instead of the standard deduction.
Step-by-step explanation:
The statement that a taxpayer must choose between deductions for Adjusted Gross Income (AGI) and the standard deduction is false. Under the income tax formula, deductions for AGI are adjustments made to your income before calculating your taxable income. These deductions are known as above-the-line deductions and are separate from the standard or itemized deductions, which you subtract from your AGI to determine your taxable income. Therefore, a taxpayer can take both deductions for AGI and the standard deduction. However, the taxpayer must choose between taking the standard deduction or itemizing their deductions.