Scott Mitchell, age 69, qualifies to use the head of household filing status for 2013. His California adjusted gross income for 2013 was $67,000. What amount can he claim for the Senior Head of Household credit?
$0 $636 $1,272 $1,340
Greg and Sue are married with two children under the age of 10 that are their only dependents. They are both 45 years of age and filing jointly. Last year they had combined gross income of $54,500. Which of the following is true about their filing requirement in California?
On the basis of gross income, they do not have an obligation to file a California return Solely the combination of their age and number of dependents means they must file a California return Their combined gross income exceeds the threshold given their age and dependent status, so they are required to file a California return By filing jointly and having two dependents, they do not have to file a California return
Patricia is a 39-year-old single California resident and has a 12-year-old son named Luke. He lives with her during the 9 month school year in California and spends the 3 summer months with his father in Idaho. She provides approximately 75% of his support. Which of the following regarding Luke’s dependency status is correct?
Patricia must alternate claiming Luke as a dependent with his father Based on Luke's relationship with Patricia, his age, and that he lives with her for more than half the year, she can claim him as a dependent Based on the fact Luke lives with Patricia for only 9 months a year, she cannot claim him as a dependent Since Patricia only provides 75% of Luke's support, she cannot claim him as a dependent
Joel and Maria have a son named David who is a 20-year-old student at the University of Southern California. David received $1,300 worth of investment income in 2013 and had earned income $1,700 but that was far less than half of the support he received from his parents. Both Joel and Maria are still alive. Based on this information, what can be said about the tax liability in California?
Both David's parents were alive at the end of the year, so the Kiddie Tax is owed The Kiddie Tax is owed because David is a student under the age of 24 David had investment income less than $2,000 so there is no tax obligation David had earned income and must pay California taxes on his investment and earned income he received
Jason is a California resident who lives and works as a computer consultant in Walnut Creek. He earned $75,000 while working for XYZ LTD in 2013. Jason additionally had a contract job from ABC Co. based in Washington. His contract earnings totaled $17,000 in 2013. On what amount will Jason be taxed in 2013?
$75,000 $83,500 $90,000 $92,000
Anastacia lived and worked exclusively in California until she retired on December 31, 2012. She moved to Nevada on January 1, 2013. Her former California employer pays its employees on the 5th of every month. On January 10, 2013, Anastacia received in the mail her last paycheck of $4,000 from her former California employer. What amount of the compensation is taxable by California?
$0 $2,000 $3,000 $4,000
Doug is a 57-year-old California resident who made a withdrawal from his individual retirement account in 2013 because he was out of work and needed money to live. What are the tax consequences of this distribution?
Doug incurs no penalty because he was past 55 1/2 at the time of the distribution There is no California penalty but Doug must pay a 10% Federal penalty for a withdrawal before age 59 1/2 There is no Federal penalty but Doug must pay a 2.5% California penalty for a withdrawal before age 59 1/2 There is both a California penalty of 2.5% and a 10% Federal penalty on his withdrawal before age 59 1/2
A divorce decree showed James Tyler was to provide $1,500 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?
$0 $750 $1,000 $1,500
Antonia is a nonresident of California who is under 50 years of age. During the year, she worked temporarily in California. Her California compensation is $1,000, which she reported on Schedule CA (540NR), column E. Her Federal compensation is $10,000. Her allowable IRA deduction on her Federal return is $5,000. Antonia’s allowable California IRA deduction that she reports on Schedule CA (540NR), column E, is what amount?
$0 $1,000 $4,000 $5,000
Debbie is 63 years old and takes a distribution from her (Archer) Medical Savings Account (MSA) to help pay for qualified medical bills that her husband incurred. What penalty, if any, is this withdrawal subject to?
A Federal penalty of 15% is incurred because it occurred before she was 65 A California penalty of 10% is incurred because it occurred before she was 65 Both a Federal penalty of 15% and a California penalty of 10% is incurred because it occurred before she was 65 No penalty is assessed because the withdrawal was for a qualified medical expense
Amanda was a Florida resident until March 31, 2013. While a Florida resident, she earned and received wage income of $15,000. On April 1, 2013, she permanently moved to California. While a California resident, she earned and received wage income of $65,000. Amanda is single and had itemized deductions from Florida and California totaling $24,000. What is Amanda’s California itemized deduction amount?
$4,500 $5,000 $15,000 $19,500
Daniel and Evelyn are a California married couple with an adult child, Frank, who is 25 years old. Daniel and Evelyn provide approximately 30% annual financial support to Frank, including his medical coverage. Which of the following is true?
Federal law does not allow a deduction for medical coverage based on the amount of support Frank receives California does not allow a deduction for medical coverage based on the amount of support Frank receives Federal law does not allow a deduction for medical coverage based on Frank's age California law allows a deduction for medical coverage based on the amount of support Frank receives
Clay and Mary are married with three children ages 13, 10 and 6. They filed a joint return and had a modified adjusted gross income of $174,000 in 2013. Which of the following are permissible under California law?
They can contribute $2,500 per child to a Coverdale Education Savings Account (CESA) Earnings on CESA contributions are excluded from gross income and distributed tax free provided they are used for children's qualified education expenses The money they save in a child's CESA can be used only for college education expenses Clay and Mary have modified adjusted gross income that excludes them from making a CESA contribution
In computing the California adjusted gross income (AGI) of a nonresident’s or a part-year resident’s taxable income, which of the following is true?
Only deductions that are attributable to California are allowable Only Federal deductions are allowed to compute their AGI Both California and Federal deductions are allowed Nonresidents or part-year residents must use the standard deduction
An individual taxpayer wants to file a claim for refund for tax year 2010. What is the latest date the taxpayer could be allowed the claim if the “look back” provision is not a factor?
April 15, 2014 October 15, 2014 April 15, 2015 October 15, 2015
Which of the following exceptions allow a tax preparer to disclose confidential information concerning a client without their written consent?
There is no exception, written consent is always required Based on the tax preparer's individual judgment of the situation In response to an official inquiry from a Federal or State government regulatory agency To gain the confidence of a new prospective client and highlight the practitioner's abilities as a preparer
All of the following are true regarding a taxpayer’s power of attorney (POA) except:
A taxpayer's POA remains in effect until FTB fully resolves all the specified matters listed on the POA A taxpayer's POA remains in effect until the taxpayer or his or her representative revokes the POA POAs are used by individuals for non-tax issues such as Court-Ordered Debt and Vehicle Registration Collections POA forms, whether they are state, Federal, or handwritten must be notarized