As a tax return preparer for The Fernando Rodriguez Tax & Accounting Service, you have been asked to calculate the missing information for one of the firm's tax clients. Thefollowing table gives the standard deduction for various filing statuses.Standard DeductionsSingle or married filing separatelyMarried filing jointly or surviving spouseHead of household65 or older and/or blindand/or someone else canclaim you (or your spouseif filing jointly) as a dependent:WarfieldName Filing StatussingleUsing the standard deduction table above, complete the following table (in $).Income$12,000$3,340$24,000$18,000Varies(See www.irs.gov for information.)When finding your client's taxable income, which deduction did you use?standard deductionitemized deductionsAdjustments to Adjusted GrossIncomeIncome$49,160StandardDeduction---Select---ItemizedDeductions$13,160tATaxableIncome

As per the Tax Laws, you can either claim standard deduction or itemized deduction. Standard deductionStandard deduction is a fixed amount of deduction that is available to individual as per the above slab mentioned in the table.Itemized deductionWhereas itemized deduction is a list of certain specific expenses sum total of which is allowed as a deduction from the Adjusted Gross Total Income.Generally a taxpayer would claim that deduction which is higher amongst the both to have a lower taxable income.Answer (1) :NameFilling statusIncomeAdjustments to incomeAdjusted gross incomeStandard deductionItemized deductionsTaxable incomeWarfieldSingle$52,500*$3,340$49,160$12,000$13,160$36,000*Income = Adjusted gross income + Adjustments to incomeIncome = $49,160 + $3,340Income = $52,500 Answer (2) :In the given scenario, Warfield falls under the criteria of $12,000 as a standard deduction. Where as his itemized deduction is greater than his standard deduction i.e. $13,160.. So, we should use the itemized deduction to find the taxable income of Warfield.Taxable Income = Adjusted Gross Total Income - Itemized Deduction = $49,160 - $13,160 = $36,000Answer (1) :NameFilling statusIncomeAdjustments to incomeAdjusted gross incomeStandard deductionItemized deductionsTaxable incomeWarfieldSingle$52,500*$3,340$49,160$12,000$13,160$36,000Answer (2) :In the given scenario, Warfield falls under the criteria of $12,000 as a standard deduction. Where as his itemized deduction is greater than his standard deduction i.e. $13,160.. So, we should use the itemized deduction to find the taxable income of Warfield.