question archive Question 1) Resident aliens who are also full-year residents of California would file which income tax forms? For federal taxes, they would file a Form 1040NR
Question 1) Resident aliens who are also full-year residents of California would file which income tax forms? For federal taxes, they would file a Form 1040NR
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Question 1) Resident aliens who are also full-year residents of California would file which income tax forms?
For federal taxes, they would file a Form 1040NR. For California taxes, they would file a Form 540NR.
For federal taxes, they would file a Form 1040NR. For California taxes, they would file a Form 540 2EZ or Form 540.
For federal taxes, they would file a Form 1040 or 1040-SR. For California taxes, they would file a Form 540 2EZ or Form 540.
For federal taxes, they would file a Form 1040 or 1040-SR. For California taxes, they would file a Form 540NR.
Question 2 of 99.
How much of the California vehicle license fee is deductible as personal property tax?
Because California does not have a flat fee for vehicle licenses, the entire amount is deductible.
The amount designated as VIN on the statement from the California Department of Motor Vehicles (DMV).
The amount designated as Vehicle License Fee.
The amount designated as the Registration Fee.
Question 3 of 99.
Which is correct regarding California State Disability Insurance (CASDI) and Voluntary Plan Disability Insurance (VPDI)?
Both CASDI and VPDI are taxes.
All California wages are subject to either CASDI or VPDI.
CASDI, but not VPDI, can be deducted on Schedule A.
CASDI and VPDI withholdings are paid to the State of California.
Question 4 of 99.
Mark took an early distribution of $42,000 from his 401(k). What is the combined total of his federal and California penalties for early distribution? He had no penalty exceptions.
$1,050
$4,200
$5,250
$8,400
Question 5 of 99.
Where would you mail a California tax return with a payment enclosed?
Franchise Tax Board, P.O. Box 942840, Sacramento, CA 94240-0001.
Franchise Tax Board, P.O. Box 942867, Sacramento, CA 94267-0001.
The closest of the six Franchise Tax Board field offices.
Any of the six Franchise Tax Board field offices.
Question 6 of 99.
"Kiddie Tax" applies to what type(s) of income?
Earned income only.
Child care income.
Both earned and unearned income.
Unearned income only.
Question 7 of 99.
A California return that is mailed in should be assembled in which order?
Form 540, tax documents, California Schedules, and federal tax return (if required).
Tax documents, Form 540, California Schedules, and federal tax return (if required).
Federal tax return (if required), tax documents, Form 540, and California Schedules.
Federal tax return (if required), Form 540, tax documents, and California Schedules.
Question 8 of 99.
Margaret filed her 2017 California return on February 19, 2018. Under ordinary circumstances, what is the last day she can file an amended California 2017 return?
February 19, 2021.
April 15, 2021.
February 19, 2022.
April 15, 2022.
Question 9 of 99.
What is the current interest rate on unpaid California taxes?
1%
3%
5%
12%
Question 10 of 99.
Which is TRUE about a PTIN?
A PTIN is optional for a CTEC Registered Tax Preparer (CRTP).
A PTIN is optional for paid preparers of federal tax returns.
A PTIN is required by both the IRS and CTEC.
A PTIN allows the Franchise Tax Board to track the number of mail-in returns that are prepared by a CTEC Registered Tax Preparer (CRTP)
Question 11 of 99.
June, who files single, files 2018 amended federal and California tax returns to report $1,600 in interest she left off her original return. What forms and schedules will she need?
Form 1040X, Form 540, and Schedule X.
Form 1040, Form 1040X, Schedule B, Form 540, and Schedule X.
Form 1040X, Schedule B, Form 540, and Schedule X.
Form 1040X, Schedule B, and Form 540X.
Question 12 of 99.
In September of 2019, Bill and Iris moved from Montana to California for Bill's job. For the California return, all qualified moving requirements were met. They paid $695 for a rental truck, $48 for boxes, and $23 for packing materials to move their personal property to California. They also paid $120 for lodging on the way, $20 for tolls, and $59 for meals. Bill and Iris are allowed to take actual moving expenses for their personal goods on line 1 of Form 3903 in the amount of:
$695
$743
$766
$874
Question 13 of 99.
Annette and Grace married in June of 2019 and live in California. Which of these would be considered community income if they file MFS?
$240 in dividends from Annette's inherited mutual fund.
Grace's wages of $28,000 earned prior to the marriage.
Rental income of $8,000 Annette received for a house she owned previous to the marriage and has not been commingled.
Interest income of $300 Grace received from an account she opened in July 2018 in a separate property state. She deposits a regular amount from her paycheck each month into the account.
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Question 14 of 99.
Martha receives a $100 distribution from a mutual fund. 49% of the fund is in California municipal bonds, 49% in Nevada municipal bonds, and 2% in Arizona municipal bonds. How much of the $100 is taxable on the California return?
$0
$49
$51
$100
Question 15 of 99.
Which of these passive loss rules for rental activity differs between California and federal law?
$25,000 deduction for active participants.
Rules for real estate professionals engaged in a real property business.
The MAGI phaseout amounts for allowable loss.
Carryforward of passive losses.
Question 16 of 99.
If a worker received a Form 1099-MISC, but is actually an employee, what form(s) can be filed to correct this?
A substitute Form W-2.
A Schedule C.
Unless an employer is willing to file a Form W-2, nothing can be done.
Form SS-8 with the IRS and Form DE 230 with California.
Question 17 of 99.
What is the Nine-Month Presumption of Residence Rule?
A. If an individual spends more than nine months of any taxable year in California, he or she is presumed to be a resident of the state.
B. The burden of proof of nonresidence rests with the individual taxpayer.
C. Both A and B.
D. The provision for an individual domiciled in California who is outside California under an employment-related contract for at least 546 consecutive days.
Question 18 of 99.
Jack signed a three-year contract to support construction projects in Afghanistan. He left California on March 15, 2018, leaving his family in their home in Ventura, California. He returned home for 30-day vacations in 2018 and 2019. Which of the following regarding his California residency status is TRUE?
He was a part-year resident in 2018 and a nonresident for 2019.
He was a part-year resident in both 2018 and 2019 because he was in California for 30 days in both years.
He was a full-year resident in both years because he has a California domicile.
He was a full-year resident in 2018 and a part-year resident in 2019.
Question 19 of 99.
Which of the following statements is correct when considering the factors that determine California residency?
The number of ties to California is the primary factor. If you have more ties to California than to another state, you are automatically a California resident.
The strength of the ties, not just the number, determines if you are a resident of California.
If you register to vote in California as an absentee voter, you are automatically considered a resident.
If you live in California for nine months, you are automatically a resident for tax purposes.
Question 20 of 99.
Gary and Charlotte had the following income and expenses for 2019: $45,000 in wages. $24,000 in rental income. $48,000 in self-employment receipts. $8,000 in rental expenses. $12,000 in self-employment expenses. Assuming there are no income adjustments, what is their California gross income?
$97,000
$105,000
$109,000
$117,000
Question 21 of 99.
Gary and Charlotte had the following income and expenses for 2019: $45,000 in wages. $24,000 in rental income. $48,000 in self-employment receipts. $8,000 in rental expenses. $12,000 in self-employment expenses. Assuming there are no income adjustments, what is their California AGI?
$97,000
$105,000
$109,000
$117,000
Question 22 of 99.
How would a California municipality know if there are residents who failed to obtain a business license?
By participating in the California Employment Development Department's City Business Tax Program.
By participating in the Franchise Tax Board's City Business Tax Program.
By participating in the Internal Revenue Service's City Business Tax Program.
By participating in their county's City Business Tax Program.
Question 23 of 99.
Which of these taxpayers, using the Single filing status with no dependents, would have a California filing requirement for 2019?
Dale moved out of California on February 1, 2019. His only income was social security and a pension of $48,000, which he began collecting in April 2019.
Darlene moved to Nevada from California in December of 2018. Her 2019 income was Nevada wages of $38,000 and $5,000 interest from a California bank.
Darrell moved out of California on February 1, 2019. His 2019 income, all from wages, was $36,000. $2,500 of the wages was earned in California, but not received until after his move.
Nancy moved out of California in 2018. She still owns a vacation house on the California coast where she stayed for two months in 2019. Her federal AGI for 2019, all from wages, was $38,000.
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Question 24 of 99.
Nigel and Sylvia are married and live in California. On August 31 of 2019, they split up and filed for divorce with no intentions of reconciling. Nigel earned $4,000 each month of 2019 and Sylvia earned $2,000 a month from June through the end of the year. A joint bank account paid them interest of $200 each month. They will file MFS. How much will Sylvia report on her tax return?
$7,000
$8,200
$28,200
$32,200
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Question 25 of 99.
Paul and Anna are married and live in California. Paul makes $48,600, and Anna makes $26,800. They also received $240 in interest income from Paul's mutual fund, which he acquired with wages during the marriage. If they elect to file separate returns, Paul will report:
$37,700
$37,820
$48,600
$48,720
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Question 26 of 99.
When Jeff and Lynnette (California residents) got married, Lynnette had a separately-held investment account. At what point would this become community property?
When Jeff and Lynnette married.
After their first year of marriage.
When it is commingled to the point that separate investments can no longer be traced.
This account would never become community property.
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Question 27 of 99.
A prenuptial separate property agreement:
May be entered into either before or after the marriage takes place.
Does not apply to California residents.
May prevent accidental commingling of assets.
Requires a couple to file separate tax returns.
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Question 28 of 99.
Eric and James are registered domestic partners who live in California. Eric makes $47,200, and James makes $46,800. Eric also received $820 in interest income from Eric's investment fund, which he inherited and has maintained as separate property during the marriage. On his federal return, Eric will report:
$47,410
$47,610
$47,820
$48,020
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Question 29 of 99.
Katie and Leanna are residents of California and are registered domestic partners. Leanna has a three-year-old son, Jayson, who lived with them the entire year. Katie provided over 50% of the household support (with $10,000 of separate property income). Which statement is correct?
Katie may claim Jayson and file HOH on the federal return.
Katie must file S on the federal return.
Katie may file S on the federal return, but HOH on the California return.
Katie may not claim Jayson as a dependent.
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Question 30 of 99.
In which of the following scenarios does the Military Spouses Residency Relief Act apply? Assume all nonmilitary spouses have California-source income and none choose to change their state of residence.
Cody is stationed in California but domiciled in Arizona, which is where he met and married Jennifer. Jennifer, who is in California solely to be with Cody, easily finds a job at a local day care.
Sally joined the military in Texas and was immediately stationed in California. She met and married Dorian while on vacation in Hawaii. Dorian is domiciled in Hawaii and is in California only to be with Sally.
Nick, a Mississippi resident, met and married LeAnn, a California resident, while he was stationed in California. LeAnn remains in the state solely to be with Nick.
Emma and Quintin are both domiciled in California. Quintin was stationed in San Diego until June 30, 2019, when he received PCS orders for a base in Connecticut. Emma remained in California to finish graduate school.
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Question 31 of 99.
Jake lives in California and had $60,000 in 2019 wages. Why would his nonresident spouse need to file a California tax return?
Half of the income would be allocated to the nonresident spouse as California-source income using community property rules.
There would be no need to file a California return.
There would only be a California filing requirement if the federal return was a jointly-filed return.
There would only be a California filing requirement if the federal return was a separately-filed return.
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Question 32 of 99.
Which of the following statements about common law marriages is TRUE?
No common law marriage is recognized in California.
California recognizes all common law marriages, no matter where they originate.
California will only recognize common law marriages that began in California.
California will only recognize common law marriage when it originated in a state where common law marriage is recognized.
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Question 33 of 99.
How many different amounts for the standard deductions can be found on a California 2019 return for taxpayers who are not dependents?
One.
Two.
Three.
Four.
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Question 34 of 99.
How much is the 2019 California exemption for each dependent?
$122
$122, with an additional $122 if the dependent is blind.
$378
$378, with an additional $122 if the dependent is blind.
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Question 35 of 99.
When would a dependent need to file a California return?
Only when they file a federal return.
If they are not claimed on someone else's return.
When they have a California filing requirement based on their gross income and AGI.
When their investment income is not claimed on their parent's return.
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Question 36 of 99.
Which statement is TRUE regarding the "Kiddie Tax" on the California tax return?
The child's investment income is reported on the California return using Form 8814.
If the "Kiddie Tax" election is made on the California return, the child will still need to file an informational return with California.
California Form 3800 is used for the parent's return when a child's only income is from interest and dividends.
The California "Kiddie Tax" election on the parent's return may be made independently from the federal election.
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Question 37 of 99.
California Form 3800:
Is used when parents make the election to include their child's investment income on their tax return.
Is the California equivalent to the federal Form 8814.
May be needed when children must file their own tax return.
Both answer 1 and 2 are correct.
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Question 38 of 99.
Paid family leave provided by the state of California:
Is reported on Form 1099-G on Table A.
Is similar to unemployment, but will not report any federal tax withholding.
Requires an adjustment on Form 540.
Is treated the same as disability income and will not be taxable on either the federal or the California tax return.
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Question 39 of 99.
What adjustment(s) may need to be made on the California return when a taxpayer has California lottery winnings?
An income subtraction and an itemized deduction addition.
An income subtraction and an itemized deduction subtraction.
An income addition and an itemized deduction subtraction.
An income addition and an itemized deduction addition.
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Question 40 of 99.
Jeff cashed in a Series E bond that had earned $840 in interest. He had elected to report the interest yearly and was required to include only $85 on his 2019 federal tax return. Which adjustment will need to be made on Jeff's California Schedule CA (540)?
Enter $840 on Part I, line 2, column C.
Enter ($840) on Part I, line 2, column B.
Enter ($85) on Part I, line 2, column B.
Enter $85 on Part I, line 2, column B.
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Question 41 of 99.
Tom reported $1,000 of municipal bond fund interest on line 2a of Form 1040. The municipal bond fund's statement showed 80% of the interest was attributable to investments in California bonds and the other 20% in other states. Which of the following adjustments should he make on line 2 of his California Schedule CA (540)?
Add $200 in column C.
Subtract $200 in column B.
Add $800 in column C.
Subtract $800 in column B.
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Question 42 of 99.
In 2019, Andrew received a refund from his state Department of Revenue for the amount of state taxes that he overpaid in 2018. He was able to reduce his 2018 federal tax liability by itemizing and claiming a deduction for state and local income taxes paid that year. On his 2019 return, Andrew may need to report all or part of the state tax refund that he received in 2019 as:
A negative credit on both the federal and California returns.
A negative deduction on both the federal and California returns.
A refundable credit on the federal return and an adjustment on the California return.
Taxable income on the federal return and an adjustment on the California return.
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Question 43 of 99.
What is the percentage of social security income that may be taxed on the California return?
0%.
15%.
50%.
85%.
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Question 44 of 99.
How is railroad retirement income treated on the federal and California tax returns.
On the federal return, Tier I railroad retirement income is treated the same as social security and Tier II as pension income. The same is true for California.
On the federal return, Tier I & Tier II railroad retirement income are treated the same as social security. The same is true for California.
On the federal return, Tier I railroad retirement income is treated the same as social security and Tier II as pension income. Neither are taxable on the California return.
On the federal return, Tier I & Tier II railroad retirement income are treated the same as pension income. Both are taxable on the California return.
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Question 45 of 99.
How is the mortgage interest credit treated on the California return?
The credit is claimed as an adjustment to income rather than as a credit.
There is no mortgage interest credit in California; however, a taxpayer who claimed the credit on the federal return may have an addition to the California itemized deductions.
The mortgage interest credit has no effect on the California return.
When the mortgage interest is claimed on the federal return, there will be an addition to income and an addition to itemized deductions on the California return.
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Question 46 of 99.
When is itemizing for federal, but not for California, preferred?
That is not allowed. When itemizing for federal, the taxpayer must also itemize for California.
When it is more beneficial to do so for both the federal and California returns.
When taxpayers are filing MFS.
When taxpayers have a different filing status for California than for federal.
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Question 47 of 99.
To withhold at a different rate for California than for federal, what would a taxpayer need to do?
File two Forms W-4 with their employer, one for federal and one for California.
File a Form DE 4 for California with their employer.
File a Form W-4 with their employer with a notation of the difference for California.
The rates for California must be the same as for federal.
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Question 48 of 99.
John and Megan will be itemizing their deductions on their 2019 tax returns for both federal and California. What is the impact of the $245 California 2018 balance due they paid in April of 2019?
It will be an itemized deduction on both returns.
It will have no impact on either tax return.
It will be an itemized deduction on the federal return and a subtraction on page 1 of Schedule CA (540).
It will be an itemized deduction on the federal return and a subtraction on page 2 of Schedule CA (540).
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Question 49 of 99.
Jen has the following miles related to her employment (she works at two different company locations and was not reimbursed for any of her mileage): 1,600 miles for going back and forth to work. 830 miles for business errands her boss required of her. 500 miles to meet with her clients from her work location and back. 450 miles going from one office location to another. How much will Jen enter on Schedule CA (540), page 3, line 19 (rounded to the nearest dollar) using the 2019 mileage rate of 58¢ per mile?
$0
$928
$1,032
$1,960
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Question 50 of 99.
Which of these California deductions is NOT subject to a 2% of AGI limitation?
Business mileage.
Tax preparations fees.
Gambling losses.
Safe deposit box.
