In terms of the tax formula applicable to individual taxpayers,which,if any,of the following statements is correct?
A)The formula does not apply if a taxpayer elects to claim the standard deduction.
B)In arriving at AGI,personal and dependency exemptions must be subtracted from gross income.
C)In arriving at taxable income,a taxpayer must choose between the standard deduction and claiming personal and dependency exemptions.
D)In arriving at taxable income,a taxpayer must choose between the standard deduction and deductions for AGI.
E)None of the above.

Question

Quizplus · Accepted Answer

The tax formula for individual taxpayers involves calculating AGI by subtracting deductions for AGI from gross income, and then subtracting either the standard deduction or itemized deductions (not personal and dependency exemptions) to arrive at taxable income. Personal and dependency exemptions were eliminated starting in 2018 under the Tax Cuts and Jobs Act.

In Terms of the Tax Formula Applicable to Individual Taxpayers,which,if