Tax rules are often very precise. For​ example, a taxpayer must ordinarily provide​ "over 50%" of another​ person's support in order to claim

QI:2-1

a.	The tax law refers to gross​ income, yet the term gross income is not found on Form 1040. Explain.

b. Why is it important to understand the concept of gross income even though the term is not found on Form​ 1040?


QI:2-3
Answer the following​ questions:

a. Explain the distinction between a deduction and a credit.

b. Which is worth​ more, a​ $10 deduction or a​ $10 credit?

c. Explain the difference between refundable and nonrefundable credits.

QI:2-7

a.	What determines who must file a tax​ return?
b.	Is an individual required to file a tax return if he or she owes no​ tax?

QI:2-9
Tax rules are often very precise. For​ example, a taxpayer must ordinarily provide​ "over 50%" of another​ person's support in order to claim a dependency exemption. Why is the threshold​ "over 50%" as opposed to​ "50% or​ more"?