Question 26 • Mathematics for Data and Financial Literacy
Mr. and Mrs. Smith are filing a joint tax return. While listing their deductions, they find that they can deduct $2,500 from medical bills, $1,200 from state taxes, $4,000 from charitable donations, and $2,000 from interest on their mortgage. The standard deduction for married couples filing jointly in 2023 is $27,700 How does the standard deduction compare to the Smiths' deductions?
Answer
A
The Smiths' deductions are 27 dollars comma 700 better than the standard deduction.
B
The standard deduction is 18 dollars comma 000 better than the Smiths' deductions.
C
The Smiths' deductions are 18 dollars comma 000 better than the standard deduction.
D
The standard deduction is 27 dollars comma 700 better than the Smiths' deductions.
Explanation
Add the Smiths’ listed deductions: $2,500 + $1,200 + $4,000 + $2,000 = $9,700. The standard deduction is $27,700, which is $27,700 − $9,700 = $18,000 more. Therefore, the standard deduction is $18,000 better than the Smiths’ deductions.
AI-written and checked against the verified answer.