True / False 1. A married couple filing jointly can increase their standard deduction by $5,600 if both are elderly and blind. 2 . The American opportunity credit is available only for qualified higher education expenses paid during a student's first two years of college. 3. All taxpayers must include a state income tax refund in their gross income in the year the refund is received. 4. When a noncustodial parent (father) is given the right to claim their child as a dependent, they also qualify for the head of household filing status. 5. The tax liability on $50,000 of taxable income would not be the same if computed using the tax rate schedule and the tax table. 6. Tax-exempt interest income on municipal bonds does not have to be reported on the tax return. 7 . A single person, who is claimed as a dependent, has $2,000 of earned income. This person can claim the same standard deduction allowed to a single taxpayer who is not claimed as a dependent. 8. Employers withhold social security and Medicare taxes only on the first $147,000 of each employee's wages. 9. Both cash and accrual basis taxpayers report income in the year money, property, or services are constructively received. 10. An accrual basis taxpayer receives an advance payment for services to be performed over the next three years. The taxpayer reports the payments in gross income over the next three years as the services are rendered