Chapter $17$

Question $33$ of $75.$In $2022,$ Chloe, a California resident, contributed $$1,200$ to her health savings account $($HSA$)$ and withdrew $$1,000$ from her HSA to pay medical bills. What adjustments should be made on her California Schedule CA $(540)?$

A subtraction to income and a subtraction to itemized deductions.

A subtraction to income and an addition to itemized deductions.

An addition to income and a subtraction to itemized deductions.

An addition to income and an addition to itemized deductions.

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Question $34$ of $75.$The Tax Cuts and Jobs Act of $2017($TCJA$)$ suspended the personal casualty and theft loss deduction, with an exception for personal casualty gains. Federal allows a deduction for personal casualty and theft loss incurred in a federally declared disaster. California does not conform. If there is a difference, how is it reported on the California return?

Complete an additional federal Form $4684,$ Casualties and Thefts, for the California return, using the California amounts and enter the difference between the federal and California amounts on:

Form $540,$ line $16.$

Form $5402$EZ$,$ line $12.$

Schedule CA $(540),$ Part I, line $1.$

Schedule CA $(540),$ Part II$,$ line $15.$

Question $38$ of $75.$Waylen signed a three$-$year contract to support construction projects in Kuwait. He left California on March $15,2021,$ leaving his family in their home in Ventura, California. He returned home for $30-$day vacations in $2021$ and $2022.$ What is his California residency status for Tax Year $2021$ and Tax Year $2022?$

Full$-$year resident in $2021$ and $2022$ because he has a California domicile.

Full$-$year resident in $2021$ and a part$-$year resident in $2022.$

Part$-$year resident in $2021$ and nonresident for $2022.$

Part$-$year resident in both $2021$ and $2022$ because he was in California for $30$ days in both years.

Question $39$ of $75.$Pasqual has lived in California all his life. In $2022,$ he moved to Las Vegas, Nevada. During the year, he received $$12,000$ of alimony from his ex$-$wife, Rosalinda. The alimony was paid under a divorce agreement that was finalized in $2021.$ $$4,000$ of the alimony payments was received while he was a resident of California and $$8,000$ was received while he was a resident of Nevada. What amount should be included as taxable income on his California return?

$$0$

$$4,000$

$$8,000$

$$12,000$

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Question $40$ of $75.$Corporal Liana Jackson is domiciled in Virginia. In $2022,$ she was stationed in California all year on permanent change of station orders. She earned $$55,000$ in military pay and $$16,000$ from a part$-$time job at the San Diego Zoo Safari Park. Which California tax forms will she file?

Form $540$ and Schedule CA $(540).$

Form $540$NR and Schedule CA $(540).$

Form $540$NR and Schedule CA $(540$NR$).$

None.

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Question $41$ of $75.$Which of the following taxpayers is a part$-$year resident of California?

Carlo lives in Kansas and spent two weeks in California on vacation.

In July, Jose permanently moved from Iowa to California for a new job opportunity.

Paulina lives in Arizona but commutes to work in California.

Ronald lived and worked in California all year.

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Question $42$ of $75.$In which of the following scenarios may the Military Spouses Residency Relief Act apply? $($Assume all nonmilitary spouses have California$-$source income.$)$

Brando is stationed in California on permanent change of station $($PCS$)$ orders. He is domiciled in Arizona, which is where he met and married Jennifer. Jennifer, who is in California solely to be with Brando, easily finds a job at a local day care center.

Dawn and Curtis are married and both are domiciled in California. Dawn is in San Diego on PCS orders. Curtis works at the local grocery store.

Nolan, a Mississippi resident, met and married Ann, a California resident, while he was in California on PCS orders. Ann works part$-$time.

Sandy joined the military in Texas and was immediately transferred to California on PCS orders. She met and married Dean while on vacation in Hawaii. Dean remained in Hawaii to work.

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Question $43$ of $75.$Colonel Dundee is domiciled in California. In $2022,$ he was stationed in Texas all year on permanent change of station orders. His only income was $$93,600$ in military pay. Is he a resident or nonresident of California and is he required to file a California tax return?

Resident. Yes.

Resident. No$.$

Nonresident. Yes.

Nonresident. No$.$

Question $47$ of $75.$All of the following groups are considered statutory employees, EXCEPT:

Agent$/$Commission Drivers, Traveling$/$City Salespersons, and Home Workers.

Artists and Authors.

Bank Tellers.

Corporate Officers.

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