1. Taxpayers with pension income who die before they recover their investment receive a deduction for AGI on their final tax return for their unrecovered cost.

a. True

b. False

2. A state or local income tax refund is included in the taxpayer's gross income in Year 2015. In 2014, the taxpayer filed Form 1040A and used the standard deduction.

a. True

b. False

3. When an employee's tips during the month are less than $10, the employee does not need to report the tips in gross income.

a. True

b. False

4. When a person receives compensation in the form of noncash property such as a car as a year-end bonus, the person includes the fair market value of the property in gross income.

a. True

b. False

5. When a taxpayer remarries in the same year that her spouse dies, the surviving spouse cannot file a joint return with her deceased spouse in the death year, even if the new spouse files a separate return.

a. True

b. False

6. A taxpayer's son-in-law, age 21, is a full-time student with $7,000 of gross income. If other requirements are met, the taxpayer can claim the son-in-law as a dependent under the dependency rules for a qualifying child.

a. True

b. False