The following Schedule or Form is completed in order to make adjustments to your federal adjusted gross income and to your federal itemized deductions in order to figure your California Itemized deductions.

	a. Schedule CA (540)
	b. Schedule P (540)
	c. Schedule K-1
	d. Schedule D (CA)

The following taxes must be deducted from your federal itemized deductions to determine your California itemized deductions.

	a. State income tax withholdings or Prior year state taxes paid
	b. Social Security or Medicare taxes
	c. Federal income tax withholdings
	d. All of the above

AMT income does not include income, adjustments and items of tax preference related to any trade or business of a qualified taxpayer who has gross receipts, less returns and allowances, during the tax year of less than ___ from all trades or businesses.

	a. $20,000.
	b. $1,000,000.
	c. $100,000.
	d. $50,000.

Jim and Sandy lived and worked in Idaho for 20 years until their retirement three years ago. Beginning that same winter three years ago, the couple spends five months each year in California (December through April). They spend the remaining seven months in Idaho. While in Idaho, they live in a home they have owned since 2004. They hold valid Idaho driver's licenses, are registered to vote in Idaho, and maintain Idaho bank accounts. Jim and Sandy also own a California home, which they use while in California. They also opened a California checking account for their personal expenses. While in California, they do not engage in any California business activities. Given the facts above, which of the following statements is correct

	a. Jim and Sandy are considered to be permanent residents of California. The fact that they maintain a checking account and own a home in California proves their permanent residence status. They are considered full-year residents of California.
	b. Jim and Sandy are considered to be seasonal visitors, in California for temporary or transitory purposes. The fact that they maintain a checking account and own a home in California does not invalidate their seasonal status. Therefore, they are nonresidents of California.
	c. Because Jim and Sandy own a home in California that they live in for more than 45 days each year, they are considered to be part-year residents of California and the 9-month residency rule does not apply.
	d. Given the facts, we cannot make a determination regarding resident status. We need to know if anyone else is allowed to use their California home when they are not using it and we need to know if utility bills are paid using their California or Idaho bank checking account, in order to make a determination.

In general, you should pay California use tax on purchases made from outofstate when the purchases are made ________ and the seller does not collect California sales or use tax.

	a. by telephone.
	b. over the internet.
	c. in person.
	d. All of the above

Effective January 1, 2014, all taxpayers who defer gain or loss under Section 1031 by selling relinquished property in California and acquiring replacement property outside of California must do which of the following

	a. Place the estimated tax liability from the transaction into an escrow account that is to be held for a minimum of 10 years.
	b. File an information return with the FTB for the year of the exchange and for each subsequent year in which the gain or loss from that exchange has not been recognized.
	c. Do nothing at the time of the sale but comply with any requests from the FTB received via a Notice of Proposed Assessment.
	d. None of the above are correct actions that must be taken.

It is possible that _________contributions are made to the State Disability Insurance plan, especially if the taxpayer has two or more employers during the year.

	a. Excess
	b. Minimal
	c. Sufficient
	d. No

Which statement below best explains California Adjusted Gross Income (CA AGI)

	a. California adjusted gross income is your federal adjusted gross income from all sources reduced or increased by all California income adjustments.
	b. California adjusted gross income is your California gross income from all sources reduced or increased by all Federal income adjustments.
	c. California adjusted gross income is your federal adjusted gross income from all sources reduced or increased by all federal income adjustments.
	d. California adjusted gross income is your federal gross income from all sources reduced or increased by certain California income adjustments.

The Child and Dependent Care Expenses tax credit is a __________credit in California.

	a. non-refundable
	b. Actual
	c. refundable
	d. revocable

Tax law allows parents election to report a childs interest and dividend income from children under age 19 or a student under age 24 on their own tax return. Which of the following statements is false regarding this election

	a. The tax on minors is sometimes referred to as the Kiddie Tax.
	b. The election to include the childs income on the parents return applies to both earned and unearned income.
	c. The election to include the childs income on the parents return was designed to keep parents from shifting investment income to their children to take advantage of the childs lower tax bracket.
	d. For taxable years beginning on or after January 1, 2010, and through the 2017 tax year, California law conforms to federal law which allows parents election to report a childs interest and dividend income from children under age 19 or a student under age 24 on their tax return.