Final answer:
Clara should claim the itemized deductions on her tax return because they are greater than the standard deduction.
Step-by-step explanation:
Clara, age 68, claims the head of the household filing status. If she has itemized deductions of $19,500 for 2018, she should claim the standard deduction.
To determine whether Clara should claim the standard deduction or itemize her deductions, we need to compare her itemized deductions to the standard deduction amount. In 2018, the standard deduction for a head of household filer was $18,000.
Since Clara's itemized deductions of $19,500 are greater than the standard deduction, she should claim the itemized deductions on her tax return. This will help reduce her taxable income and potentially lower her overall tax liability.