1. (LO1) A California resident is subject to tax on all income, regardless of its source.

TF

2. (LO1) A person can change their State of residency by formal declaration.

TF

3. (LO1) An individual whose permanent home is in California, but who is absent from the state for an uninterrupted period of at least 546 days under an employment-related contract, will not be treated as a resident subject to California tax.

TF

4. (LO1) If a person is assigned to a job in California for an indefinite period of time, he/she is not a California resident as long as he/she maintains ties in another state.

TF

5. LO2) The general rule for wages and salaries is that the source is where the employee lives when payment is received.

TF

6. (LO2) The taxpayer's state of residence is the source for interest and dividend income.

TF

7. (LO2) Nonresidents of California are subject to California income tax for salaries and wages paid by California based employers, even if the nonresidents are not in California when earning the salaries or wages.

TF

8. (LO2) For business and rental income, the source is location of the business or rental property.

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9. (LO2) Based on the following, how much is income subject to California income tax? Taxpayer's residence is Oregon and he/she receives wages of $62,000 from an employer headquartered in California. The taxpayer works in Oregon. Taxpayer received a $4,000 capital gain on the sale of California land, and $600 in dividends from a California corporation.

TF

10. (LO3) A person who enters the military when a resident of California remains a resident of California even if out of the state on Temporary Duty orders.

TF

11. (LO3) Annie came to California with her husband who is a member of the U.S. Navy and stationed in San Diego. Both Annie and her husband are residents of Michigan. If Annie earns a wage for providing services to an employer, her income is not taxable in California.

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12. (LO3) Paula and Paul are California residents and live in Vacaville. Paula is a member of the U.S. Air Force. Paula's Air Force pay was $57,300. Paul had wages of $46,200. They received interest income of $750 from a bank in Colorado and dividends of $1,200 from a New Jersey corporation. How much of their income is subject to California income tax?

TF

13. (LO4) A non-resident taxpayer who has California source income will pay the same marginal tax rate that a resident pays.

TF

14. (LO4) A part-year California resident uses Schedule CA(540) to compute the California portion of income.

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15. (LO4) Assume a part-year California resident has taxable income of $60,000 (computed as if a full-year resident), taxable income of $40,000 (California sources only), and tax on the $60,000 of $2,748. What is the part-year resident only tax before exemption credit? (round decimal to 4 decimal points)

TF

16. (LO5) A taxpayer can choose to not pay the use tax when filing a California income tax return.

TF

17. (LO5) Non-payment of the required use tax can result in a penalty.

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18. a. (LO5) Lonnie bought $1,200 worth of items from sources out of California. Each item cost less than $1,000. No sales or use taxes was paid on any of the purchases. Lonnie lives in Sacramento and his AGI is $72,000.How much would Lonny owe in use tax if he chooses to use the Estimated Use Tax Lookup Table?

$_________

$_________

18. b. (LO5) If Lonnie's purchase in 8a above was over $1,000, how much would he owe in use tax as a resident of Sacramento?

19. (LO6) Sally had two jobs in California. California Pizza paid her $80,000 and withheld $800 for SDI.She changed jobs mid year to California Burrito who paid her $40,000 and withheld $400 for SDI. How much, if any, is Sally's credit for excess SDI?

$_________

20. (LO7) Leona sold California real estate for $632,000 and she does not meet any of the exceptions for withholding of tax. What amount will be withheld on the sale? Round your answer to a full dollar amount.

TF

21. (LO7) If a taxpayer is selling his principal residence, withholding is required if the sales price is over $100,000.

TF

22. (LO8) A taxpayer who estimates next year's income, deductions, tax liability and credits and determines that $500 or more will be due, always must submit estimated tax payments.

TF

23. (LO8) Estimated tax payments can be avoided by paying(or having withheld) at least the same amount of tax this year as was paid last year for a taxpayer with AGI of $70,000.

TF

24. (LO9) All paid tax preparers must be certified by the California Tax Education Council.

TF

25. (LO9) California (CTEC) certified tax preparers must complete continuing education requirements.

TF

26. (L10) Proceeds from a Qualified Tuition Program not spent on qualified expenses are subject to California income tax.