1.Above-the-line" deductions are more valuable than "below-the-line" deductions. (True/False)

2.ALL of the following are tests used to determine whether a taxpayer in entitled to a dependency exemption, EXCEPT the:

a.marriage test

b.taxable income test

c.relationship test

d.support test

3.For purposes of determining "above-the-line" and "below-the-line" deductions, the "line" is:

a.gross income

b.earned income

c.taxable income

d.adjusted gross income

4.Medical and dental expenses are a(n):

a."above-the-line" deduction

b."below-the-line" deduction

c.standard deduction

d.personal exemption

5.Your clients are seeking to minimize their tax liability. You advise them to all of the following, except:

a.Maximize their IRA contributions

b.Make payments on outstanding student loans

c.Contribute to a Health Savings Account

d.Postpone stock sales if new capital losses are incurred

6.Individuals are subject to income tax and self-employment tax liability only. Businesses may be subject to income tax, AMT, NIIT, and the Additional Medicare Surtax liability. (True/False)

7.Married taxpayers must choose "Married Filing Jointly" or "Married Filing Separately" for their filing status. (True/False)

8.Interest from treasury bonds is subject to federal tax, but is exempt from all state and local income taxes. (True/False)

9.In addition to income tax and self-employment tax, Taxpayers may be subject to:

a.the Alternative Minimum Tax.

b.the Net Investment Income Tax.

c.the Additional Medicare Surtax.

d.all of the above.

10. All of the following are examples of "above-the-line" deductions that are subtracted from gross income, EXCEPT:

c.contributions to health savings accounts

d.charitable contributions

c. tuition and associated fees

d. IRA contributions

They are multiple choice