Kelsey and Austin File a Joint Return

question 55

True/False

Kelsey and Austin file a joint return. Kelsey works and receives income during the year but Austin does not. If the couple files a joint tax return, Austin is responsible for paying any taxes due if Kelsey is unable to pay the taxes.

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Definitions:

Cash Dividend

A distribution of profits by a corporation to its shareholders in the form of cash.

Cash

Money in the form of coins or banknotes, especially that held by a person or business.

Stock Investments

Financial assets referring to shares purchased in other companies intended for income generation or capital gains.

Cost Method

An investment accounting approach where the investment is recorded at cost and adjusted only for dividends received, not market value changes.