Final answer:
The statement that a taxpayer benefits from itemizing when itemized deductions exceed the standard deduction is true. Itemized deductions can lower taxable income more than the standard deduction if they total a higher amount, which can lead to a lower tax bill or a higher refund.
Step-by-step explanation:
The taxpayer benefits from itemizing when itemized deductions exceed the standard deduction. This statement is True. When filing taxes in the United States, taxpayers have the option to choose between the standard deduction or itemizing deductions. The standard deduction is a fixed amount that reduces your income that's subject to tax, while itemized deductions consist of various allowable expenses that you can deduct from your adjusted gross income. Itemizing can include deductions for mortgage interest, state and local taxes, medical expenses, and charitable contributions, among others.
Therefore, if the total of your itemized deductions is greater than your standard deduction, you will reduce your taxable income more effectively by itemizing, which could ultimately decrease the amount of tax you owe and potentially increase your tax refund. It's worth noting that the process of itemizing requires more detailed record keeping and can be more complex, so it's often only beneficial if the sum of the itemized deductions is significantly higher than the standard deduction.