Final answer:
When filing separate income tax returns, married taxpayers cannot claim their spouse as an exemption. This is a rule set by the IRS which applies to individuals filing their taxes separately, reflecting the variations in tax responsibilities based on their filing status.
Step-by-step explanation:
The statement is true: When separate income tax returns are filed by married taxpayers, one spouse cannot claim the other spouse as an exemption. This is because when filing separately, each taxpayer is responsible for their own tax return and cannot take personal exemptions for their spouse. The Internal Revenue Service (IRS) provides specific guidelines on exemptions, deductions, and who can be claimed on a tax return in their forms and publications. While the general rule mandates that taxpayers pay taxes, there are variations and exceptions based on individual circumstances, such as marital status and household income levels.