Tax School Practice Test

These questions are part of the practice quiz. Start practicing

• What form should be used to request a tax refund?
• Who is required to pay self-employment tax?
• What is the difference between earned income and unearned income?
• Which form would self-employed individuals complete to report their business income?
• What are itemized deductions?
• How much tax credit will Royce receive from California for the $2,000 net income tax paid to Arkansas?
• Which category does California tax law specifically allow deductions for, in contrast to federal law under the Tax Cuts and Jobs Act?
• What kind of expenses are eligible for tax deductions?
• Who may take the California standard deduction?
• What is the maximum alternative minimum tax (AMT) exemption amount for a head of household with an AMT income of $179,000?
• What distinguishes a refund from a credit in tax terminology?
• Lenore, a single California taxpayer, has taxable income before capital gains of $78,000. What total California state tax will Lenore pay on her long-term capital gain of $5,000?
• Under California tax law, which of the following is NOT considered a valid employee business expense for tax year 2019?
• How much of the dependent care expenses can Mahulay claim if reimbursed for the full amount paid?
• Which of the following describes a limitation of the "support test" when claiming a qualifying child?
• What will happen if separate property is mixed with community property without proper tracing?
• What is the primary purpose of the alternative minimum tax (AMT)?
• Company B will be considered doing business in California if it has sales of what amount or more?
• For a retired civil service worker, what is considered their share of community income if they receive $1,000 a month in retirement pay in a community property state?
• Which form is primarily used for individual income tax returns in the United States?
• A California taxpayer with an AGI of $35,000 can deduct how much for tax preparation fees on their California income tax return for tax year 2019?
• What amount is not considered alimony for tax purposes?
• Which method for paying state income taxes may be deducted for Federal purposes but not for California?
• Which of the following correctly states the application of the AMT credit for individuals?
• What is the taxpayer's basis for nondeductible IRA contributions when distributed in California?
• What is an example of information included in Form 1095-A?
• What is true about Phil's residency status after signing another overseas contract?
• How many days after the billing notice do other penalties need to be paid to avoid additional interest charges?
• What is the earned income tax credit (EITC)?
• For three properties sold together, California real estate withholding is required because the total sale price of all properties exceeds what amount?
• What must you report if you receive a 1099 form?
• What is the primary purpose of IRS Form 8862?
• What is the general purpose of tax audits?
• How much can Arthur deduct for his alimony and child support payments?
• How is tax fraud typically defined?
• What income is subject to self-employment tax?
• If a taxpayer aged 65 or older claims the Senior Exemption Credit, what is the maximum contribution they can make to the California Seniors Special Fund in 2019?
• Under California law, after how many days absent from the state under an employment-related contract will an individual not be treated as a resident for taxation purposes?
• What is Scott's total income reported on his tax return?
• What is implied about David's tax liability in California based on his income?
• When computing the California adjusted gross income (AGI) for a nonresident or part-year resident, which deduction is allowable?
• What amount can Mahulay claim for the Child and Dependent Care Expenses (CDC) Credit?
• Is Social Security income generally taxable?
• For which situation would a California taxpayer not be able to use Web Pay?
• Under what condition must a taxpayer report a Federal adjustment to the FTB?
• Which of the following statements is true regarding the tax implications for Jason's contract earnings?
• In tax terms, what does it mean to have a refund?
• What is the standard deduction limit for dependents in California for 2019?
• Which of the following can be included in charitable contributions for itemized deductions?
• How often are business taxes typically filed by self-employed individuals?
• What is true regarding Luke's dependency status for Patricia?
• For tax year 2019, which itemized deduction is subject to a 6% reduction based on a taxpayer's AGI in California?
• What is the primary purpose of filing a tax return?
• What deductions are self-employed individuals allowed to take?
• What is the withholding rate for real estate sales in California?
• Which of the following is considered taxable income?
• When does the statute of limitations for the FTB to assess tax expire if Evelyn filed her 2016 tax return on March 17, 2017?
• What are federal payroll taxes used for?
• What is a tax liability?
• Which of the following statements is false regarding Form 1095-A - Health Insurance Marketplace Statement?
• Which statement is true regarding California personal income tax refunds?
• In what circumstance can a taxable amount arise from the rollover in Tim's situation?
• How much of Tim's rollover from an Archer MSA to a Health Savings Account is subject to California income tax?
• Foreign social security is taxable in California as which type of income?
• In California, which category of taxpayer is not eligible to claim any deductions for alimony paid?
• What types of membership restrictions result in disallowance of trade or business expense deductions according to the California Revenue and Taxation Code?
• Hannah repaid an overpayment of her pension benefit in 2019. Under Section 1341, how much can she deduct for the repayment on her California income tax return?
• What is the basis for a California resident not receiving a credit for net income taxes paid if it exceeds the allowed proportion?
• Which of the following is a requirement to qualify for a Roth IRA?
• What is the standard deduction?
• What amount of interest must Chris report on his tax return if he files separately and they earned $500 interest on a bond?
• What is Ella's allowable California deduction if her California wages were $500?
• To adjust taxable amounts for unemployment compensation, on which schedule should taxpayers report this amount?
• What portion of James Tyler's family support payments is considered alimony?
• Greg and Sue's combined California gross income is $64,500. What is true about their filing requirement?
• Which statement regarding California taxes is accurate?
• Ivan claimed a Federal deduction for carrybacks of a $1,000 capital loss. How much can he claim for the capital loss carrybacks on his California return?
• What happens to the equity in a house purchased with proceeds from the sale of a separate property if mortgage payments are made using joint earnings?
• What is true regarding California military members who leave the state under a Permanent Change of Station (PCS) order?
• Which of the following obligations' interest is exempt from California tax?
• What is the specific function of Schedule C in tax reporting?
• Who is eligible for head of household filing status?
• Which condition allows California taxpayers to avoid capital gains tax on the sale of their principal residence?
• How do tax audits work?
• Which type of income is not considered when qualifying for the California Earned Income Tax Credit (CalEITC)?
• What type of expenses is directly linked to the production of investment income that can be deducted in California?
• What is the amount of Carolina's California exemption credit for 2019, given her Federal AGI of $202,000?
• What determines whether Erin and her spouse are considered California residents after moving to Spain?
• Which of the following reduces the amount of income subject to taxation?
• What defines a dependent for tax purposes?
• Mixing or commingling separate property with community property will transmute the separate property into what type of property?
• Which factor is NOT used to determine a "qualifying child" for tax purposes?
• Which statement is accurate regarding Jimmy's residency in California?
• A penalty for failing to provide requested information amounts to what percentage of total assessed tax liability?
• As a married taxpayer filing separately, Fatin must make estimated tax payments if she expects to owe at least what amount in taxes for 2019?
• For tax year 2019, how do the Tax Cuts and Jobs Act provisions affect itemized deductions on California income tax returns?
• What are capital gains?
• Which of the following is a method of calculating the taxable amount for capital gains?
• California tax law presumes an individual to be a resident if they spend more than how many months of the taxable year in California?
• What does "federal tax withholding" refer to?
• To qualify for the AMTI exclusion, what is the maximum aggregate gross receipts amount a small business taxpayer must meet?
• In the support test for a qualifying child, which statement is true?
• Regarding Kathy and Joe's tax obligations, which statement is true?
• What amount must Tricia include for the discharge of indebtedness on her Schedule CA after a short sale of her principal residence?
• What are business deductions for travel?
• Which group may cause differences in passive activity loss limitations between California and Federal law?
• Which of the following is NOT considered when establishing a business's nexus in a state?
• Which benefit is NOT included in the income exclusion for participation in a California ridesharing arrangement?
• California conforms to the Federal MACRS 39-year recovery period for nonresidential real property placed in service after which year?
• What percentage of self-employment tax do individuals typically pay?
• What amount can Greg deduct for a business meal expense after taking associates out to dinner?
• What happens to deductions for expenses for substandard property when the property is noncompliant for part of a year?
• In a prenuptial agreement, which item is allowed to be stipulated?
• Which form must taxpayers use to apply for an extension to file their tax return?
• When is a taxpayer not able to exclude a reward from a crime hotline from their taxable income?
• Which type of income is most likely to affect the taxability of Social Security benefits?
• Which expense related to substandard housing is not allowed as a deduction if the property is found to be noncompliant?
• What is the additional local sales and use tax percentage imposed by California cities and counties on tangible personal property?
• What is the reason a credit for net income taxes paid to another State is not allowed for California residents?
• Nonresidents and part-year residents are allowed which exemption credit in California?
• If a taxpayer files a joint Federal tax return, under what condition can they file separately for California?
• What is the maximum amount of gain that can be excluded from taxable income when selling a primary residence for individuals?
• Regarding the Claim of Right deduction under California tax law for tax year 2019, which statement is false?
• What is the last date a taxpayer could file a claim for refund for tax year 2015, assuming the "look back" provision does not apply?
• What form is used to report amended tax returns?
• Which of the following itemized deductions does California tax law conform to, in relation to the Tax Cuts and Jobs Act for tax year 2019?
• Which of the following best defines a sole proprietorship?
• Which of the following can be claimed as an unreimbursed business expense under California tax law for tax year 2019?
• A change of domicile requires all of the following except which one?
• What type of contributions are specifically prohibited from being deducted as charitable contributions?
• Which information is required to claim a dependent on a tax return?
• Which statement is incorrect regarding California unemployment benefits?
• What is the maximum amount that Audrey can claim for the California Child and Dependent Care Expenses (CDC) Credit?
• What is the maximum number of days a taxpayer may return to California without being considered a resident?
• Which of the following items cannot be addressed in a prenuptial agreement?
• What is the significance of the tax year?
• What is one key role of a Power of Attorney in tax matters?
• Entities paying more than what amount of Federal tax-exempt interest must provide an information return to the Franchise Tax Board?
• What is the primary characteristic of "exempt-interest dividends" from mutual funds?
• For California taxpayers, which item is NOT subject to the 2% floor for miscellaneous itemized deductions?
• What is the filing deadline for individual tax returns?
• Which is NOT true regarding a resident's IRA distribution in California?
• Which scenario illustrates when the equity in property acquired during marriage is typically considered community property?
• What does the relationship test for a qualifying child usually necessitate?
• What is the purpose of IRS Form 1098?
• If a taxpayer is self-employed, what is a significant tax advantage they have over traditional employees?
• Which of the following accurately describes how IRAs grow over time?
• What amount of Seaman Abbott's income is subject to California tax?
• When is the relationship test relevant in determining tax credits for dependents?
• How long must a couple live together in California to establish a common law marriage?
• For tax year 2019, how does California handle the suspension of employee business expense deductions compared to federal law?
• For what reason should a taxpayer use FTB Form 3885A - Depreciation and Amortization Adjustments?
• Under what condition is a nonmilitary spouse's income not subject to California state tax?
• What does "amended return" mean in tax preparation?
• What amount of the distributive share of partnership net income is taxable by California for a nonresident with a $10,000 income from a California partnership?
• What is the main consideration for taxation of income earned in another state while working in California?
• What does the "nexus" concept in state taxation refer to?
• To qualify for the Nonrefundable Renter's Credit, which of the following is not a requirement?
• Lana earned interest from both a California municipal bond and an Arizona municipal bond. What is her taxable income for California tax that is not taxable federally?
• What does the term “marriage penalty” refer to?
• For a nonresident of California who works temporarily in the state, what amount of their California compensation is taxable?
• What community income must Eduardo and Maria report on their individual tax returns?
• What does the IRS stand for?
• What amount of income is taxable in California for a resident of Arizona who earned $120,000, including $30,000 from California?
• For tax reporting purposes in California, a resident receives $10,000 from a pension. If fully taxable, what is the amount reported?
• Based on a taxpayer's adjusted gross income for tax year 2019, by what percentage will itemized deductions be reduced on California tax returns?
• What is an HSA?
• Peyton is transferred to North Carolina while on active military duty. How much of his income is taxable in California?
• For the 2019 tax year, what is the maximum adjusted gross income (AGI) for California households with two or more qualifying children to qualify for the California Earned Income Tax Credit?
• What was the maximum IRC Section 179 expense deduction for California in 2019?
• When calculating taxable income from a California partnership as a nonresident, which income is important?
• How much can Zuri claim for the California Child Adoption Costs Credit for the adoption of Imani?
• What is the minimum penalty for filing late in California?
• How is residency defined for the qualifying child criteria?
• What is one potential downside to filing jointly as a married couple?
• What does the IRS stand for?
• California law differs from Federal law in that it does not tax which of the following?
• Which legal fee is deductible on a California taxpayer's income tax return for tax year 2019?
• What is an IRS tax lien?
• What are tax credits?
• What is the maximum contribution for traditional IRAs for individuals under 50 years old?
• What amount of intangible income must Beverly maintain to qualify for the safe harbor rule as a nonresident?
• Which statement about claiming the credit for prior year Alternative Minimum Tax (AMT) is incorrect?
• What is the main purpose of tax deductions?
• Which of the following describes the term "capital gains tax"?
• Which of the following options is a valid reason for receiving a dependent care benefits tax exclusion?
• What type of income is classified as tax-exempt?
• What is accurate regarding Vick's dependency status based on his gross income and support?
• If a taxpayer claims the California Earned Income Tax Credit, what is the requirement regarding dependents?
• What filing status must Registered Domestic Partners (RDP) use when filing California income tax returns?
• Who qualifies as a non-resident alien for tax purposes?
• How much can Sonny exclude from taxable income on his California tax return from lottery winnings?
• For tax purposes, what is the benefit of marriage for couple’s capital gains exclusion?
• What information must be included on Form 8862?
• Which statement about California tax on Social Security income is true?
• What is the consequence for a resident who claims deductions beyond the overall limit on California taxes?
• Service members and their spouses domiciled outside California can exclude what from gross income?
• Which filing status generally allows for the highest standard deduction?
• Under what circumstance may a prenuptial agreement not be enforced?
• Who is eligible to claim the Child Tax Credit?
• Which of the following qualifies as income subject to California state tax?
• When completing her California tax return, how much can Kristen increase her California itemized deductions for home mortgage interest?
• If an individual sells a home at a loss, what is the tax implication on California state tax returns?
• For individual taxpayers, what is the California threshold amount for itemized deductions in 2019 for a single taxpayer?
• How is income earned from a part-time job generally treated for California tax purposes?
• What amount of Tony's $6,000 IRA contribution can he deduct on his California tax return if his MAGI is $80,000?
• How much should Lucia report for dependent care benefits when claiming the Credit for Child and Dependent Care Expenses?
• Which expenses can be itemized by a California-based individual taxpayer subject to the 2% floor?
• What obligation does Paula have concerning California use tax for her television purchase from an out-of-state retailer?
• What is true about Brad's residency status after declaring himself a resident of Nevada?
• What does "tax bracket" refer to?
• For a nonresident under 50 years old, if California compensation is $1,000 and Federal compensation is $10,000, what is the allowable California IRA deduction?
• Which form is used to report an employee's annual wages and the taxes withheld?
• When is a single taxpayer typically required to file a California tax return?
• What type of income is considered taxable for California state taxes but not for federal taxes?
• What privilege is not granted to a taxpayer's representative through a Power of Attorney (POA) Declaration?
• What is the maximum time frame the FTB can issue a proposed assessment after a Federal adjustment notice?
• How do you determine the basis of an asset?
• What constitutes taxable pensions and annuities?
• Which of the following is NOT considered taxable income in California?
• What does it mean to "carry forward" a tax deduction?
• A mutual fund must have at least what percentage of its assets in tax-exempt U.S. obligations for its dividends to be exempt from California tax?
• What is the primary purpose of the Nonrefundable Renter's Credit in California?
• What is a key difference between a tax deduction and a tax credit?
• What is the usual tax rate for long-term capital gains?
• Which of the following is a requirement for an individual to be classified as a non-resident in California?
• What aspect does California tax law generally recognize concerning military income?
• For what types of income does FTB Form 3800 compute the tax rate for children with investment income?
• Nora has a California capital loss carryover of $1,000. What amount should she report on her California tax return for this carryover?
• If a resident moved from Florida to California and received $12,000 in pension income, how much is taxable by California?
• Which statement about individual voluntary contributions is NOT true?
• By what date must Maribel file her tax return to claim her disaster loss for 2019?
• Which property is classified as community property?
• What is Charlie's maximum Nonrefundable Renter's Credit for 2019 given his AGI of $32,600?
• What is the tax implication on California income for rental income received by a California resident from another state?
• What must a taxpayer provide to substantiate charitable contributions exceeding $250?
• How many years can unused credits from prior year alternative minimum tax be carried forward?
• Which statement is false regarding withholding requirements for sales of California real property closing on or after January 1, 2008?
• What must taxpayers do if they previously had their Earned Income Tax Credit disallowed?
• Which penalty is imposed for failure to file a return after notice and demand?
• What amount is taxable by California for Catalina's last paycheck received after moving to Nevada?
• What type of income is not subject to California tax for a military member's spouse?
• When is interest from federal obligations fully exempt from California taxation?
• If an individual receives both deductible and nondeductible IRA contributions, which part is not taxed upon withdrawal in California?
• Which of the following would not qualify as a dependent for a taxpayer?
• What qualifies as a tax-free exchange under section 1031?
• Which of the following is NOT an allowable investment expense under the Tax Cuts and Jobs Act for California taxpayers in tax year 2019?
• Which of the following best describes the purpose of the Franchise Tax Board?
• What is Jason's total California resident income in 2019 if he earned $75,000 from XYZ LTD and $17,000 from ABC Co.?
• Which situation requires a taxpayer to report their total income, including tax-exempt amounts?
• For qualifying for the Joint Custody Head of Household Credit, how many days must the taxpayer maintain the household for the dependent?
• What is Amanda's California itemized deduction amount given her wage income and deductions?
• Under what condition might a taxpayer receive Form 1099-G even without a California Personal Income Tax Refund?
• What is the penalty for failing to file a tax return?
• What is the maximum California capital gain tax rate?