5. Steve is a California resident who lives and works as a computer consultant in Walnut Creek, CA. He earned $75,000 while working for XYZ LTD in 2020. Steve additionally had a contract job from ABC Co. based in Arizona. His contract earnings totaled $17,000 in 2020. What amount is Steves total California resident income in 2020? A. $75,000 B. $83,500 C. $90,000 D. $92,000

6. Karla bought a virtual assistant device online for $200, including shipping, and had it sent to her home. However, she was not charged tax during the purchase. Karla reviews the California City & County Sales & Use Tax Rates and determines her local rate is 8.0%. What amount of Use Tax does Karla owe on her California state income tax return for this purchase? A. $0 B. $4 C. $8 D. $16

7. All of the following are true regarding the 2020 California Earned Income Tax Credit (CalEITC) except: A. The Cal EITC is refundable B. The taxpayer, his or her spouse, and any qualifying children must have a Social Security number or an Individual Taxpayer Identification Number (ITIN) to be eligible C. The taxpayers investment income, such as interest, dividends, royalties, and capital gains cannot exceed certain limits for the entire tax year to qualify for the CalEITC D. Self-employment income cannot be used to qualify for the CalEITC

8. Rosalinda Guzman applies for a College Access Tax Credit (CATC) reservation on October 31, 2020. Her proposed contribution is $10,000. The California Educational Facilities Authority (CEFA) grants a $5,000 credit reservation on November 7. Rosalinda makes a $10,000 contribution to the fund on November 22, 2020. CEFA sends the credit certification to Rosalinda on December 1. Rosalinda may claim a College Access Tax Credit for what amount on her California tax return? A. $0 B. $4,000 C. $5,000 D. $10,000

9. Ernie Brooks lived and worked exclusively in California until he retired on December 31, 2020. He moved to Nevada on January 1, 2021. His former California employer pays its employees on the 5th of every month. On January 10, 2021, Ernie received in the mail his last paycheck of $4,000 from his former California employer. What amount of the compensation is taxable by California? A. $0 B. $2,000 C. $3,000 D. $4,000 10. A divorce decree showed Ron Fowler was to provide $2,000 a month of "family support" to his ex-spouse. No amount of the family support is designated as child support. What amount of the payment is considered alimony? A. $0 B. $1,000 C. $1,500 D. $2,000

10. A divorce decree showed Ron Fowler was to provide $2,000 a month of "family support" to his ex-spouse. No amount of the family support is designated as child support. What amount of the payment is considered alimony?

A. $0

B. $1,000

C. $1,500

D. $2,000

21. Greg Murphy is a California resident. He is 35 years old and a single taxpayer. In 2020, he has salary of $36,000,

U.S. Treasury interest income of $700, and dividend income of $600. Also, Greg uses the standard deduction for both Federal and California tax purposes. What is Gregs California standard deduction?

A. $0

B. $1,100

C. $4,601

D. $9,202

Lesson 5

22. The California Franchise Tax Board has the authority to identify and penalize unregistered tax preparers. The amount of the penalty for the first failure to register is what amount?

A. $2,500

B. $5,000

C. $7,500

D. $10,000

23. Which of the following exceptions allow a tax preparer to disclose confidential information concerning a client without their written consent?

A. There is no exception, written consent is always required

B. Based on the tax preparers individual judgment of the situation

C. In response to an official inquiry from a Federal or State government regulatory agency

D. To gain the confidence of a new prospective client and highlight the practitioners abilities as a preparer

24. The general time limit for Franchise Tax Board (FTB) to assess additional California state income and franchise taxes is provided by Section 19057 of the Revenue and Taxation Code. Which of the following statements is true regarding the Statute of Limitations on Assessments?

A. The law generally requires the FTB to mail a proposed deficiency assessment to the taxpayer within four years after the filing date of the taxpayer's return

B. Assessments are never allowed after the general time limit expires

C. When determining the time limit, returns filed before the original due date of a personal income tax return are considered as filed on that specific date

D. If the taxpayer did not file an income tax return, the FTB has two years from the original due date to assess the tax

25. The Franchise Tax Board (FTB) accepts handwritten, general, or durable Power of Attorney (POA) declarations. However, the declarations must contain all of the following required information except:

A. Taxpayer or business entity name

B. Taxpayers mailing address

C. Taxpayers Social Security number or business entity identification number

D. Taxpayers email address