Discussion Question $3-5($LO$.2)$

In choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have?

a$.$ The age of the taxpayers$).$

The age of the taxpayer

$$ if the taxpayer is age $65$ or older.

b$.$ The health $($i$.$e$.,$ physical condition$)$ of the taxpayer.

If the taxpayer is blind,

c$.$ Whether taxpayers rent or own their residence.

If the taxpayer is still making house payments, the interest deduction may make

d$.$ Taxpayer's filing status $($e$.$g$.,$ single, married, filing jointly$).$

Because the amount of the

$-$ varies depending on filing status, this factor is highly relevant to the decision.

e$.$ Whether married taxpayers decide to file separate returns.

If married persons file separate returns and one spouse itemizes, the other spouse

f$.$ The taxpayer's uninsured personal residence that was recently destroyed by a wildfire $($the region was declared a disaster area by the Federal government$).$

Because a large casualty loss seems probable,

g$.$ The number of dependents the taxpayer can claim.

The number of dependents