Question

Which of the following statements relating to the standard deduction is correct?

a) It varies based on income levels.
b) It is only applicable to business expenses.
c) It is a fixed amount set by the government.
d) It is available only for itemized deductions.

Answer 1

The correct statement relating to the standard deduction is that c. it is a fixed amount set by the government.

Step-by-step explanation:

The correct statement relating to the standard deduction is c) It is a fixed amount set by the government.

The standard deduction is a set amount determined by the government that taxpayers can subtract from their taxable income to reduce the amount of income tax they owe. The specific amount of the standard deduction varies depending on the taxpayer's filing status and can change from year to year.

For example, in the year 2019, the standard deduction for a single individual was $12,200. This means that if their taxable income was $40,000, they could subtract $12,200 from that amount and only pay taxes on $27,800.