Question

Once they reach age 65, many taxpayers will switch from itemizing their deductions from AGI and start claiming the standard deduction.

t
f

Answer 1

Once taxpayers reach age 65, many of them will switch from itemizing their deductions from AGI (Adjusted Gross Income) and start claiming the standard deduction.

Step-by-step explanation:

Once taxpayers reach age 65, many of them will switch from itemizing their deductions from AGI (Adjusted Gross Income) and start claiming the standard deduction. This is because the standard deduction for taxpayers over 65 is higher than for younger taxpayers, providing them with a higher deduction amount.

For example, in 2021, the standard deduction for a single taxpayer under 65 is $12,550, while for a single taxpayer over 65, it is $14,250. By claiming the standard deduction, taxpayers can reduce their taxable income and potentially lower their tax liability.

It is important to note that the decision to itemize or claim the standard deduction depends on individual circumstances and the amount of eligible deductions.