Question

Tax Review

1. Regarding the California Earned Income Tax Credit (CA EITC), earned income used to qualify for the credit includes all of the following except:

A. Employee compensation subject to California withholding B. Passive Activity Income C. Wages reported on a W-2 Form D. Tips reported on a W-2 From

2. For 2017, the Nonrefundable Renter’s Credit is available for single filers with adjusted gross incomes of what amount or less?

A. $37,000 B. $37,995 C. $40,078 D. $80,156

3. Which of the following is incorrect regarding the ability of the following entities to claim the credit for prior year Alternative Minimum Tax (AMT)?

A. An individual who had an AMT credit carryover from 2016 qualifies to claim the credit for prior year AMT B. Fiduciaries must complete FTB Form 3510 to claim the credit for prior year AMT C. Corporations must complete FTB Form 3510 to claim the credit for prior year AMT D. An individual who paid AMT for 2016, and had 2016 adjustments and tax preference items other than exclusions qualifies to claim the credit for prior year AMT

4. A taxpayer is required to remit all of his or her payments electronically if he or she makes an estimate or extension payment exceeding what amount?

A. $20,000 B. $40,000 C. $50,000 D. $80,000

5. Jason is a California resident who lives and works as a computer consultant in Walnut Creek. He earned $75,000 while working for XYZ LTD in 2017. Jason additionally had a contract job from ABC Co. based in Washington. His contract earnings totaled $17,000 in 2017 and will total $15,000 in 2018. On what income amount will Jason be taxed in 2017?

A. $75,000 B. $83,500 C. $90,000 D. $92,000

6. California law specifically provides that an individual whose permanent home is in California, but who is absent from the state for an uninterrupted period of at least how many days under an employment-related contract, will not be treated as a resident subject to California tax?

A. 500 days B. 546 days C. 600 days D. 650 days

7. California tax law provides that an individual, who spends in the aggregate more than how many months of the taxable year in California, is presumed to be a resident?

A. Six Months B. Seven Months C. Eight Months D. Nine Months

8. A change of domicile requires all of the following except:

A. Abandonment of the taxpayer’s prior domicile B. Filing a change of address with the post office C. Physically moving to a new locality D. Physically residing in a new locality

9. Under California law, Registered Domestic Partners (RDP) must file their California income tax returns using which filing status?

A. Single B. Married/RDP filing jointly C. Married/RDP filing separately D. Either B or C

10. Erin receives and accepts a permanent job offer in Spain. She and her spouse or registered domestic partner (RDP) sell their home in California, pack all of their possessions and move to Spain on May 5, 2017. Their children also relocate to Spain on the same date. They lease an apartment and enroll the children in school in Spain. They both obtain a driver’s license from Spain and make numerous social connections in their new home. They have no intention of returning to California. Which of the following statements is true?

A. Both Erin and her spouse or registered domestic partner are considered part-year residents of California B. The entire family are considered full-year California residents C. Erin is considered a part-year resident but her spouse or registered domestic partner is considered a fullyear resident D. All of the above

Answer 1

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