11. The California treatment of pension and annuity income is generally the same as the Federal treatment. For example, California and Federal law are the same regarding all of the following except:

A. The General Rule

B. The Simplified General Rule (sometimes called the Safe Harbor Method)

C. Social Security and railroad retirement benefits

D. IRA Rollovers

12. Terrence Gallo worked 10 years in Texas, moved to California and worked an additional 5 years for the same company. Terrence retired in California and began receiving a $10,000 annual pension, which is attributable to his services performed in both California and Texas. Terrence is taxed on what amount of his pension on his California income tax return?

A. $0

B. $2,500

C. $5,000

D. $10,000

13. Justin Goode is a nonresident of California who is under 50 years of age. During the year, he worked temporarily in California. His California compensation is $1,000, which Justin reported on Schedule CA (540NR), column E.Justins Federal compensation is $10,000. His allowable IRA deduction on his Federal tax return is $6,000. Justins allowable California IRA deduction that he reports on Schedule CA (540NR) is what amount?

A. $0

B. $1,000

C. $3,000

D. $6,000

14. Olga Robles sold three properties (parcels) within the same escrow agreement. Property A is sold for $50,000, property B is sold for $10,000, and property C is sold for $60,000. Which of the following statements is true regarding Olgas real estate withholding on the sale of the three properties?

A. Since the total sales price exceeds $100,000 and the properties are sold in one escrow, withholding is

required

B. Even though the total sales price exceeds $100,000 and the properties are sold in one escrow, withholding is not required

C. Real estate withholding is not required as each property sold for less than $100,000

D. California does not require real estate withholding for individuals

15. Chloe is a California resident and files as a head of household taxpayer. During 2020, she qualifies for

unemployment insurance benefits and is eligible for the additional $600 per week under the CARES Act. In January 2021 she receives a Form 1099-G from the Employment Development Department (EDD) reporting her unemployment compensation was $9,600. Chloe must report what amount of the unemployment compensation as taxable income on her California state income tax return?

A. $0

B. $600

C. $4,800

D. $9,600

Lesson 4

16. During 2020, Elsa paid $800 interest on a qualified student loan. Her 2020 modified adjusted gross income (MAGI) is $50,000 and she is filing a joint return. Elsas student loan interest deduction for 2020 is what amount?

A. $0

B. $200

C. $400

D. $800

17. A taxpayer may be entitled to claim a credit for excess SDI (or VPDI) only if he or she meets which of the followingconditions?

A. He or she had two or more employers during 2020

B. He or she received more than $122,909 in wages

C. The amounts of SDI (or VPDI) withheld appear on his or her W-2 Forms

D. All of the above

18. Liam Lincoln buys a ticket to a charity dinner for $100. The dinner itself is valued at $35. Therefore, Liams charitable contribution will be limited to what amount?

A. $0

B. $35

C. $50

D. $65

19. Arthur is a California resident. He was ordered to pay $2,000 in alimony and $3,000 in child support to his former spouse. He meets all the requirements when paying his support. What amount can Arthur take as a deduction for these payments on his Schedule CA (540)?

A. $0

B. $1,000

C. $2,000

D. $3,000

20. Jeffery and Rosemary are married with three children ages 12, 9 and 7. They filed a joint return and had a modified adjusted gross income of $174,000 in 2020. Which of the following is permissible under California law?

A. They can contribute $2,500 per child to a Coverdell Education Savings Account (CESA)

B. Earnings on CESA contributions are excluded from gross income and distributed tax free provided they are used for childrens qualified education expenses

C. The money they save in a childs CESA can be used only for college tuition

D. Jeffery and Rosemary have modified adjusted gross income that allows them to only make a partial CESA contribution