Which of the Following Statements Describing Individual Tax Deductions Is

question 30

Multiple Choice

Which of the following statements describing individual tax deductions is false?

• A) Individuals can take both above-the-line and the standard deduction in the same year.
• B) Individuals elect to itemize deductions in a tax year in which total itemized deductions exceed the standard deduction.
• C) In a year in which an individual takes the standard deduction, any itemized deductions yield no tax benefit.
• D) Individuals who pay self-employment tax can deduct the tax as an itemized deduction.

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Definitions:

Human Resources

The abilities, skills, and health of human beings that contribute to the production of both current and future output. Investment in training and education can increase the supply of human resources.

Physical Resources

Tangible assets used in the production or delivery of goods and services, such as machinery, buildings, and raw materials.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

Opportunity Cost

Renouncing the possibility of gains from different alternatives by making a single choice.