A+ COMPLIANCE ACCELERATOR: 2022 CA
15-HOUR TAX LAW QUALIFYING
EDUCATION – VERSION 1 DEEP DIVE
(2026/2027 REFRESHER)
For tax year 2021, which of the following allowable itemized
deductions is subject to a reduction of 6% based on the
taxpayer's adjusted gross income (AGI) stated on his or her
California income tax return? - THE CORRECT ANSWER-B. Medical
expenses ?
Investment expenses are the taxpayer's allowed deductions
directly connected with the production of investment income.
With regards to the Tax Cuts and Jobs Act, investment
expenses that a taxpayer can deduct on his or her California
income tax return for tax year 2021 include all of the following
except: - THE CORRECT ANSWER-A. Investment interest expense
For tax year 2021, the Tax Cuts and Jobs Act provisions have
what effect on the overall limitation on itemized deductions on
the taxpayer's California income tax return? - THE CORRECT ANSWER-
B. California will provide its own indexed-for-inflation
limitation amounts for certain upper-income taxpayers
California tax law conforms to which of the following Tax Cuts
and Jobs Act (TCJA) tax provisions? - THE CORRECT ANSWER-A.
Deduction for Pass-Through Income ?
,Which of the following forms is not required to be sent with
California income tax returns? - THE CORRECT ANSWER-A. Form
1099-NEC - Nonemployee Compensation
Which of the following is incorrect regarding Paycheck
Protection Program (PPP) Loan Forgiveness for California
income tax purposes? - THE CORRECT ANSWER-C. To qualify for
expense deductions, basis adjustments, and lack of reduction of
tax attributes related to PPP loan forgiveness, the taxpayer's
business can be publicly traded
Under AB 80, to qualify for the deduction of expenses paid for
with Paycheck Protection Program (PPP) proceeds, a business
must show a reduction of what percentage in gross receipts in
the first, second or third quarter in 2020 compared to the same
quarter in 2019? - THE CORRECT ANSWER-D. 25%
Jacob and Mekayla did not have health coverage during 2021.
They are married, filing jointly taxpayers with one child and a
gross household income of $150,000. Neither Jacob nor
Mekayla qualifies for an exemption from the requirement to
have coverage and the $51,957 is the state filing threshold for a
married couple, both under 65 years old with one dependent for
the 2021 tax year. Therefore, when they file their California
income tax return they will pay an Individual Shared
Responsibility Penalty for what amount? - THE CORRECT ANSWER-D.
$2,451.08
All of the following are true regarding California licensed
cannabis businesses except: - THE CORRECT ANSWER-B. Licensed
cannabis businesses may deduct cost of goods sold, but may not
deduct other business expenses, such as rent and wages
, Jim, the owner of Big Time Restaurant, is applying for the Main
Street Small Business Tax Credit I. His restaurant has 23
employees. Jim determines the restaurant had $250,000 in
gross receipts for second quarter 2019 and $100,000 in gross
receipts for second quarter 2020. Therefore, the percent of
decrease in gross receipts is what percentage? - THE CORRECT
ANSWER-C. 50%
For which of the following tax years has California suspended
the net operating loss (NOL) carryover deduction? - THE CORRECT
ANSWER-D. All of the above
Emma was enrolled in a qualified health plan with Premium
Assistance Subsidy (PAS). She turned 65 on June 3 and became
eligible for Medicare. Emma must apply to Medicare to receive
benefits. She applied to Medicare in September and was eligible
to receive Medicare benefits beginning on December 1. Emma
completed the requirements necessary to receive Medicare
benefits by September 30 (the last day of the third full calendar
month after the event that established her eligibility, turning
65). She was eligible for Medicare coverage on December 1, the
first day of the first full month that she could receive benefits.
Therefore, Emma cannot get the PAS for her coverage in her
qualified health plan beginning in which month? - THE CORRECT
ANSWER-A. June
Jason 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 2021. Jason additionally had a
contract job from ABC Co. based in Washington. His contract
earnings totaled $17,000 in 2021 and will total $15,000 in
15-HOUR TAX LAW QUALIFYING
EDUCATION – VERSION 1 DEEP DIVE
(2026/2027 REFRESHER)
For tax year 2021, which of the following allowable itemized
deductions is subject to a reduction of 6% based on the
taxpayer's adjusted gross income (AGI) stated on his or her
California income tax return? - THE CORRECT ANSWER-B. Medical
expenses ?
Investment expenses are the taxpayer's allowed deductions
directly connected with the production of investment income.
With regards to the Tax Cuts and Jobs Act, investment
expenses that a taxpayer can deduct on his or her California
income tax return for tax year 2021 include all of the following
except: - THE CORRECT ANSWER-A. Investment interest expense
For tax year 2021, the Tax Cuts and Jobs Act provisions have
what effect on the overall limitation on itemized deductions on
the taxpayer's California income tax return? - THE CORRECT ANSWER-
B. California will provide its own indexed-for-inflation
limitation amounts for certain upper-income taxpayers
California tax law conforms to which of the following Tax Cuts
and Jobs Act (TCJA) tax provisions? - THE CORRECT ANSWER-A.
Deduction for Pass-Through Income ?
,Which of the following forms is not required to be sent with
California income tax returns? - THE CORRECT ANSWER-A. Form
1099-NEC - Nonemployee Compensation
Which of the following is incorrect regarding Paycheck
Protection Program (PPP) Loan Forgiveness for California
income tax purposes? - THE CORRECT ANSWER-C. To qualify for
expense deductions, basis adjustments, and lack of reduction of
tax attributes related to PPP loan forgiveness, the taxpayer's
business can be publicly traded
Under AB 80, to qualify for the deduction of expenses paid for
with Paycheck Protection Program (PPP) proceeds, a business
must show a reduction of what percentage in gross receipts in
the first, second or third quarter in 2020 compared to the same
quarter in 2019? - THE CORRECT ANSWER-D. 25%
Jacob and Mekayla did not have health coverage during 2021.
They are married, filing jointly taxpayers with one child and a
gross household income of $150,000. Neither Jacob nor
Mekayla qualifies for an exemption from the requirement to
have coverage and the $51,957 is the state filing threshold for a
married couple, both under 65 years old with one dependent for
the 2021 tax year. Therefore, when they file their California
income tax return they will pay an Individual Shared
Responsibility Penalty for what amount? - THE CORRECT ANSWER-D.
$2,451.08
All of the following are true regarding California licensed
cannabis businesses except: - THE CORRECT ANSWER-B. Licensed
cannabis businesses may deduct cost of goods sold, but may not
deduct other business expenses, such as rent and wages
, Jim, the owner of Big Time Restaurant, is applying for the Main
Street Small Business Tax Credit I. His restaurant has 23
employees. Jim determines the restaurant had $250,000 in
gross receipts for second quarter 2019 and $100,000 in gross
receipts for second quarter 2020. Therefore, the percent of
decrease in gross receipts is what percentage? - THE CORRECT
ANSWER-C. 50%
For which of the following tax years has California suspended
the net operating loss (NOL) carryover deduction? - THE CORRECT
ANSWER-D. All of the above
Emma was enrolled in a qualified health plan with Premium
Assistance Subsidy (PAS). She turned 65 on June 3 and became
eligible for Medicare. Emma must apply to Medicare to receive
benefits. She applied to Medicare in September and was eligible
to receive Medicare benefits beginning on December 1. Emma
completed the requirements necessary to receive Medicare
benefits by September 30 (the last day of the third full calendar
month after the event that established her eligibility, turning
65). She was eligible for Medicare coverage on December 1, the
first day of the first full month that she could receive benefits.
Therefore, Emma cannot get the PAS for her coverage in her
qualified health plan beginning in which month? - THE CORRECT
ANSWER-A. June
Jason 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 2021. Jason additionally had a
contract job from ABC Co. based in Washington. His contract
earnings totaled $17,000 in 2021 and will total $15,000 in
