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1.

What is a standard deduction? What is the standard deduction based on?

A standard deduction is a:(Select the best answer below.)

		a. varies according to your filing status.
		b. is affected by the amount of income you earned during the year.
		c. varies according to your filing status and your income.
		d. does not vary according to your filing status.

2.

How is mortgage interest treated for tax purposes? How does it differ from auto loan interest?

(Select the best answer below.)

		a. Mortgage interest is not deductible if you itemize. In contrast, auto loan interest is deductible.
		b. Mortgage interest is deductible if you itemize. In contrast, auto loan interest is not deductible.
		c. Mortgage interest is deductible if you do not itemize. In contrast, auto loan interest is deductible if you itemize.
		d. Mortgage interest is deductible if you itemize. In contrast, auto loan interest is only deductible if you do not itemize.

3.

Dawn's adjusted gross income in 2019 is 16,700.

Dawn has 1,800 in unreimbursed medical expenses. How much can Dawn claim as an itemized deduction?

4.

Distinguish between interest income and dividend income. Does their treatment differ for tax purposes?

Which of the following is true regarding the differing treatment of dividend and interest income for tax purposes?(Select the best answer below.)

		a. Interest income is included in gross income to determine taxable income but dividend income is not.
		b. Neither interest income nor dividend income is included in gross income to determine taxable income.
		c. Both interest income and dividend income are included in gross income to determine taxable income, but dividend income is taxed at lower rates.
		d. Interest income is not included in gross income to determine taxable income but dividend income is.

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