CALIFORNIA TAX EDUCATION COUNCIL (CTEC) EXAM (FOR TAX PREPARERS) EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026 Q&A
| INSTANT DOWNLOAD PDF
Core Domains
*- Federal Income Tax Law and Filing Requirements*
*- Dependents, Exemptions, and Claiming Qualifying Relatives*
*- Filing Status and Head of Household Requirements*
*- Income Classification: Wages, Self-Employment, Investment, and Business Income*
*- Deductions: Standard vs. Itemized, Above-the-Line Deductions*
*- Tax Credits: Earned Income, Child Tax Credit, Education Credits*
*- California State Tax Law and Community Property Rules*
*- Ethics and Professional Standards for Tax Preparers*
*- CTEC Registration, Bonding, and Continuing Education Requirements*
*- Round 16: Tax Preparation Procedures and Recordkeeping*
Introduction
This comprehensive assessment evaluates the knowledge and competencies required of tax preparers seeking
registration with the California Tax Education Council (CTEC). The exam covers federal and California state
tax law, ethical obligations, professional standards, and practical tax preparation procedures. Candidates
will encounter multiple-choice questions and scenario-based problems that test both foundational theory and
applied professional knowledge. The assessment emphasizes real-world application and decision-making
skills essential for preparing accurate tax returns and maintaining compliance with CTEC regulations.
Successful completion demonstrates readiness to serve California taxpayers as a Registered Tax Preparer.
,SECTION One: Questions 1–100
Question 1
What is the minimum number of continuing education hours a CTEC-registered tax preparer must complete
annually?
A. 15 hours
B. 20 hours
C. 25 hours
D. 30 hours
🟢 B. 20 hours
🔴 RATIONALE: CTEC requires registered tax preparers to complete a minimum of 20 hours of continuing
education each year, including 10 hours federal tax law, 3 hours federal tax update, 2 hours ethics, and 5 hours
California tax law.
Question 2
Which of the following individuals is NOT required to register with CTEC?
,A. A non-attorney who prepares federal tax returns for fee in California
B. A CPA preparing California state tax returns for fee
C. A tax preparer with a valid PTIN who charges $200 per return
D. An unenrolled individual preparing Amended returns for compensation
🟢 B. A CPA preparing California state tax returns for fee
🔴 RATIONALE: Attorneys, Certified Public Accountants (CPAs), and Enrolled Agents (EAs) are exempt from
CTEC registration requirements. Only non-exempt preparers who prepare tax returns for fee in California must
register.
Question 3
What is the CTEC registration fee for a new California Registered Tax Preparer?
A. $25
B. $33
C. $50
D. $100
🟢 B. $33
🔴 RATIONALE: The CTEC registration fee is $33 for new registrants. There is also a $55 late fee if registration
occurs after October 31.
, Question 4
How many hours of Ethics education are required annually for CTEC CE compliance?
A. 1 hour
B. 2 hours
C. 3 hours
D. 5 hours
🟢 B. 2 hours
🔴 RATIONALE: The 20-hour annual CE requirement includes exactly 2 hours of Ethics education (CP22),
which is mandatory for all CTEC registrants.
Question 5
What is the deadline for renewing CTEC registration each year?
A. December 31
B. October 31
C. January 15
D. April 15
🟢 B. October 31
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026 Q&A
| INSTANT DOWNLOAD PDF
Core Domains
*- Federal Income Tax Law and Filing Requirements*
*- Dependents, Exemptions, and Claiming Qualifying Relatives*
*- Filing Status and Head of Household Requirements*
*- Income Classification: Wages, Self-Employment, Investment, and Business Income*
*- Deductions: Standard vs. Itemized, Above-the-Line Deductions*
*- Tax Credits: Earned Income, Child Tax Credit, Education Credits*
*- California State Tax Law and Community Property Rules*
*- Ethics and Professional Standards for Tax Preparers*
*- CTEC Registration, Bonding, and Continuing Education Requirements*
*- Round 16: Tax Preparation Procedures and Recordkeeping*
Introduction
This comprehensive assessment evaluates the knowledge and competencies required of tax preparers seeking
registration with the California Tax Education Council (CTEC). The exam covers federal and California state
tax law, ethical obligations, professional standards, and practical tax preparation procedures. Candidates
will encounter multiple-choice questions and scenario-based problems that test both foundational theory and
applied professional knowledge. The assessment emphasizes real-world application and decision-making
skills essential for preparing accurate tax returns and maintaining compliance with CTEC regulations.
Successful completion demonstrates readiness to serve California taxpayers as a Registered Tax Preparer.
,SECTION One: Questions 1–100
Question 1
What is the minimum number of continuing education hours a CTEC-registered tax preparer must complete
annually?
A. 15 hours
B. 20 hours
C. 25 hours
D. 30 hours
🟢 B. 20 hours
🔴 RATIONALE: CTEC requires registered tax preparers to complete a minimum of 20 hours of continuing
education each year, including 10 hours federal tax law, 3 hours federal tax update, 2 hours ethics, and 5 hours
California tax law.
Question 2
Which of the following individuals is NOT required to register with CTEC?
,A. A non-attorney who prepares federal tax returns for fee in California
B. A CPA preparing California state tax returns for fee
C. A tax preparer with a valid PTIN who charges $200 per return
D. An unenrolled individual preparing Amended returns for compensation
🟢 B. A CPA preparing California state tax returns for fee
🔴 RATIONALE: Attorneys, Certified Public Accountants (CPAs), and Enrolled Agents (EAs) are exempt from
CTEC registration requirements. Only non-exempt preparers who prepare tax returns for fee in California must
register.
Question 3
What is the CTEC registration fee for a new California Registered Tax Preparer?
A. $25
B. $33
C. $50
D. $100
🟢 B. $33
🔴 RATIONALE: The CTEC registration fee is $33 for new registrants. There is also a $55 late fee if registration
occurs after October 31.
, Question 4
How many hours of Ethics education are required annually for CTEC CE compliance?
A. 1 hour
B. 2 hours
C. 3 hours
D. 5 hours
🟢 B. 2 hours
🔴 RATIONALE: The 20-hour annual CE requirement includes exactly 2 hours of Ethics education (CP22),
which is mandatory for all CTEC registrants.
Question 5
What is the deadline for renewing CTEC registration each year?
A. December 31
B. October 31
C. January 15
D. April 15
🟢 B. October 31
