In the left column, circle T or F on a true/false question; or insert answer for a fill-in question.

1. (LO1) California has one of the highest income tax rates in the Nation.

T F

2. (LO1) California collects sales and use tax in addition to personal income tax.

T F

3. (LO2) A taxpayer would file a personal income tax appeal with the California Franchise Tax Board.

T F

4. (LO2) What is the FTB publication number that covers the Guidelines to California adjustments providing the differences between federal and California Law?

Publication:

5. (LO2) 540NR Booklet provides information and instructions for California residents who have only been in the state for part of the year.

T F

6. (LO2) Publication 1031 contains guidelines to help determine California residency.

T F

7. (LO3) The factors that determine if a California resident is required to file an income tax return include federal gross income, federal AGI, filing status, age, and number of dependents.

TF

8. (LO3) Carol and Chet file jointly, are both under age 65,and have one dependent. What is the amount their California gross income needs to exceed to require them to file a return for 2019?

$_________

9. (LO3) Chuck is 14 years old, is claimed as a dependent by his parents, and has earned income of $1,090 and interest income of $580. Because his total income is more than the standard deduction, he is required to file a 2019 California income tax return.

TF

10. (LO3) Carl is age 65 and is filing single with no dependents. What is the amount his California AGI needs to exceed to require Carl to file a return for 2019?

$_________

11. (LO4) The California income taxformula begins with federal taxable income.

TF

12. (LO4) Deanna has federal AGI of $78,260. She has increases to income of $670 and decreases of $300. Her standard deduction is $4,537. What is her 2019 California taxable income?

$__________

13. (LO4) In determining the net refund or amount due, exemptions are treated the same on the federal and California tax returns.

TF

14. (LO4) What is the tax if a single taxpayer's 2019 taxable income is $46,721?

$__________

15. (LO4) What is the tax if married filing joint taxpayers have 2019 taxable income of $82,150?

$__________

16. (LO4) What is the tax if a taxpayer filing head of household has 2019 taxable income of $109,634?

$__________

17. (LO5) To compute California taxable income, adjustments to federal AGI are necessary when there are differences between federal and California tax laws.

TF

18. (LO5) If federal AGI is $36,200 and a California resident taxpayer had interest income from Sacramento City bonds of $360, what is the amount of California AGI?

$__________

19. (LO5) If a taxpayer had $5,600 in unemployment compensation during 2019 and federal AGI of $24,160, what is the taxpayer's California AGI?

$__________

20. (LO5) A CA residenttaxpayer's federal AGI is $84,500. The federal AGIincludes ataxable California income taxrefund of $2,100. The taxpayer also has City of Denver interest income of $400, and deducted Federal bonus depreciation of $670. How muchis the taxpayer's California AGI?

$__________

21. (LO6) The 2019 California standard deduction is $9,074 for a single taxpayer.

T F

22. (LO6) To compute California itemized deductions, the federal deductible tax portion of itemized deductions must be reduced for state and local income tax or state and local sales tax.Assume the taxpayer's total deduction for tax on schedule A is less than $10,000.

TF

23. (LO6) What is the amount of California itemized deductions given the following? Federal itemized deductions of $26,750, real estate property tax of $3,200, state and local income tax of $2,900, State Disability Insurance of $320, personal property tax on automobiles of $590. Assume the total tax deduction for federal purposes is less than $10,000.

$__________

24. (LO5) Gene and Jeanie (MFJ) have federal AGI of $376,500, and federal itemized deductions of $43,200, which includes state and local income tax of $8,650 and State Disability Insurance of $640. What amount can they claim for California itemized deductions?

T F

25. (LO7) Most adjustments and preference items used in the computation of the California Alternative Minimum Tax decrease the income on which the tax is computed.

$__________

26. (LO7) Del and Dawn's (MFJ) regular taxable income is $78,415 and their Alternative Minimum Taxable Income before the exemption is $127,230. How much is their Tentative Alternative Minimum Tax?

$__________

27. (LO7) Refer to question #26. How much total tax must they pay?

T F

28. (LO8) Most California taxpayers claim at least one credit.

T F

29. (LO8) A taxpayer moving to California from Nevada, and living in California for less than the whole year, is not eligible for a renter's credit.

$__________

30. (LO8) If a taxpayer claims a federal child care tax credit of $600 and federal AGI is $40,000, how much is the California child care credit?

$__________

31. (LO8) Galina and Georg are both over 65 and they have a qualifying relative who lives with them. What is the amount of their exemption tax credit?

32. (LO9) A taxpayer who is in the 28% federal tax bracket and the 9.3% California tax bracket wants to determine the taxable rate of interest she/he should seek to compare to a 5.5% tax free rate. What is that rate?

$__________

33. (LO5) A taxpayer sells an asset for $24,340. Her federal adjusted basis in the asset is $16,780 and her California adjusted basis is $19,120. What is the adjustment amount in computing California AGI? If the adjustment is negative, show the amount in parentheses

( ).