True or False: Federal Tax

1. For tax purposes unearned income means income that has not yet been realized.

2. U.S. Citizens generally are subject to tax on all income whether it is generated in the United State or in foreign countries.

3. To determine file status, a taxpayers marital status is determined based on the number of days the taxpayer Married during the year compared to the number of days they were not married.

4. The all-inclusive definition means that gross income is defined very broadly.

5. Tax Credit are generally more valuable than tax deduction because tax credit reduces a taxpayers gross tax liability dollar for dollar while tax deduction reduces tax income dollar for dollar.