Question

A taxpayer who always claims the standard deduction (i.e., does not itemize his or her deductions from AGI) may still be able to receive a tax benefit from any education expenses incurred.

a. True
b. False

Answer 1

False. A taxpayer who claims standard deduction cannot directly deduct education expenses from their adjusted gross income. However, they may still be eligible for tax benefits related to education expenses through certain tax credits.

Step-by-step explanation:

False. A taxpayer who claims the standard deduction cannot directly deduct education expenses from their adjusted gross income (AGI). However, they may still be eligible for tax benefits related to education expenses through certain tax credits.

One example of a tax credit available to taxpayers claiming the standard deduction is the Lifetime Learning Credit. This credit allows individuals to offset their tax liability by up to $2,000 for qualified education expenses paid for themselves, their spouse, or their dependents.

Another example is the American Opportunity Credit, which provides a tax credit of up to $2,500 for qualified education expenses incurred during the first four years of post-secondary education.

These credits can be claimed even if a taxpayer does not itemize deductions, thus still providing a potential tax benefit for education expenses paid during the year.

It is important to note that these tax credits have specific eligibility requirements, such as income limits, and apply only to qualified education expenses. Taxpayers should consult the latest tax guidelines or a tax professional to understand the full scope of benefits available to them.