Final answer:
If itemized deductions are less than the standard deduction, they provide no tax benefit.
Step-by-step explanation:
If itemized deductions (from AGI) are less than the standard deduction, they provide NO tax benefit. This statement is TRUE.
The standard deduction is a fixed amount that reduces a taxpayer's taxable income based on their filing status. Itemized deductions, on the other hand, are individual expenses that can be claimed to reduce taxable income. However, if the total amount of itemized deductions is less than the standard deduction, it makes more sense to take the standard deduction as it provides a higher tax benefit.
For example, let's say the standard deduction for a single individual is $12,000 and their itemized deductions add up to $10,000. In this case, it would be more advantageous for the taxpayer to take the standard deduction of $12,000 as it would result in a larger reduction of taxable income compared to the $10,000 itemized deductions.