Question

1. Suppose that my filing status on the Federal Income Tax Form 1040 is married filing jointly and that my spouse and I find that our set of itemized deductions is less than our standard deduction. Then my spouse and I will

a. use the standard deduction.

b. itemize deductions.

c. add our standard deduction to our income.

d. add our itemized deductions to our income.

e. have lots of arguments doing our taxes together.

2.

In the context of the Federal Income Tax Form 1040, given that the amount of itemized deductions exceeds the standard deduction, every additional dollar of itemized deductions

	a.	reduces taxable income by more than one dollar.
	b.	reduces taxable income, but by less than one dollar.
	c.	reduces taxable income by exactly one dollar.
	d.	does not reduce taxable income at all.
	e.	reduces the tax liability by exactly one dollar.

3.

Form 1040 is a Federal Income tax form which is used by households with

	a.	taxable income greater than $100,000 who take the standard deduction.
	b.	taxable income greater than $100,000 who itemize deductions.
	c.	taxable income less than $100,000 who use the standard deduction.
	d.	taxable income less than $100,000 who itemize deductions.
	e.	all of the above.

Answer 1

1	a. use the standard deduction.	Since Standard deduction is more than itemized deduction
2	c. reduces taxable income by exactly one dollar.	The amount of itemized deductions exceeds the standard deduction, every additional dollar of itemized deductions reduce the taxable income by a dollar
3	e. all of the above.	Form 1040 is used for personal federal income tax returns