1 a. The tax law refers to gross income, yet theterm gross income is not found on Form 1040.Explain.

b. Why is it important to understand the conceptof gross income even though the term is notfound on Form 1040?

3.

a. Explain the distinction between a deductionand a credit.

b. Which is worth more, a $200 deduction or a$200 credit?

c. Explain the difference between refundable andnonrefundable credits

6.

Under what circumstances must a taxpayer use atax rate schedule instead of a tax table?

18.

Under what circumstances, if any, can a marriedperson file as a head of household?