Final answer:
Buddy and Hazel should claim the standard deduction on their joint tax return for 2018 as it is higher than their itemized deductions, thus false, they should not avoid claiming the standard deduction.
Step-by-step explanation:
The question is asking whether Buddy and Hazel, who are ages 72 and 71, should claim the standard deduction or itemize deductions on their 2018 joint tax return if they have itemized deductions totaling $25,600.
For the tax year 2018, the standard deduction for a married couple filing jointly was $24,000, plus an additional standard deduction of $1,300 for each taxpayer aged 65 or over.
Therefore, their total standard deduction would be $26,600 ($24,000 + $1,300 + $1,300). Since their itemized deductions of $25,600 are less than the standard deduction they're entitled to, it would generally be more beneficial for them to claim the standard deduction.
True or False: Buddy and Hazel should not claim the standard deduction. False, Buddy and Hazel should claim the standard deduction since it is higher than their itemized deductions.