5. 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)

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

7. 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.

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

a. contributions to health savings accounts b. charitable contributions c. qualified tuition and fees d. IRA contributions

9. Deductions are better than credits for most taxpayers. (True/False)

10. Filing status has little or no effect on the taxpayers tax liability. (True/False)