Who cannot take the standard deduction?

The option indicating that an individual filing as Married Filing Separately cannot take the standard deduction when their spouse itemizes is indeed correct. The tax code specifies that if one spouse chooses to itemize deductions, the other spouse who is married filing separately is not permitted to claim the standard deduction. This rule is designed to prevent discrepancies in the way deductions are taken and to maintain consistency within the filing status.

In scenarios where one spouse itemizes, the effect is that both spouses must either itemize or use the standard deduction if they file separately. This aims to ensure fairness and accuracy in applying tax benefits.

While the other options present scenarios that might seem to limit the ability to take the standard deduction, they do not align with the tax code's stipulations as clearly as the chosen answer. Nonresident aliens often have different rules regarding deductions, individuals with high itemized deductions may choose to itemize instead of taking the standard deduction, and having no earned income doesn't inherently disqualify a taxpayer from taking the standard deduction. Thus, the correct answer highlights a specific condition under which one cannot take the standard deduction, rooted in the regulations surrounding married filing statuses.