11
QuizMultiple Choice

Tax Returns

Question 11 • Financial Math - MA2007

What is the standard deduction used for?

Answer
A
The standard deduction is the minimum size a deduction can be to be counted.
B
The standard deduction is claimed automatically, before other deductions are calculated.
C
The standard deduction is the minimum deduction that anyone may claim.
D
The standard deduction is the maximum allowable deduction.

Explanation

The standard deduction is a set amount that taxpayers can subtract from income to reduce the amount subject to tax, instead of adding up itemized deductions. In this question, choice B best describes it as the deduction used by default; it is not a minimum or a maximum deduction.

AI-written and checked against the verified answer.

Previous
Next