2026 5 Hour California Tax Law Exam Study Guide Latest 2026
Updated Questions and Verified 100% Solutions (2026/2027)
Grade: A+|Status: Guaranteed Pass
Which of the following statements is not true regarding estimated tax payments? - Answers -A
taxpayer must make estimated tax payments even if he or she is a nonresident or new resident
of California in 2022 and did not have a California tax liability in 2021
Erin receives and accepts a permanent job offer in Spain. She and her spouse sell their home in
California, pack all of their possessions and move to Spain on May 5, 2022. Their children also
relocate to Spain on the same date. They lease an apartment and enroll the children in school in
Spain. They both obtain a driver's license from Spain and make numerous social connections in
their new home. They have no intention of returning to California. Which of the following
statements is true? - Answers -Both Erin and her spouse are considered part-year residents of
California
Jason Golden is a business executive and resides in Washington with his family. Several times
each year, he travels to other states for business purposes. His average stay is one or two weeks,
and the entire time spent in California for any taxable year does not exceed six weeks. Jason's
family usually remains in Washington while he is traveling for business purposes. Which of the
following statements applies to Jason? - Answers -Jason is not a California resident because his
stays in California are temporary or transitory in nature
Steve 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 2022. Steve additionally had a contract job
from ABC Co. based in Arizona. His contract earnings totaled $17,000 in 2022. What amount is
Steve's total California resident income in 2022? - Answers -$92,000
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, Karla bought a virtual assistant device online for $200, including shipping, and had it sent to her
home. However, she was not charged tax during the purchase. Karla reviews the California City
& County Sales & Use Tax Rates and determines her local rate is 8.0%. What amount of Use Tax
does Karla owe on her California state income tax return for this purchase? - Answers -$16
All of the following are true regarding the California Earned Income Tax Credit (CalEITC) except: -
Answers -Self-employment income cannot be used to qualify for the CalEITC
Rosalinda Guzman applies for a College Access Tax Credit (CATC) reservation on October 31,
2022. Her proposed contribution is $10,000. The California Educational Facilities Authority
(CEFA) grants a $5,000 credit reservation on November 7. Rosalinda makes a $10,000
contribution to the fund on November 22, 2022. CEFA sends the credit certification to Rosalinda
on December 1. Rosalinda may claim a College Access Tax Credit for what amount on her
California tax return? - Answers -$5,000
Ernie Brooks lived and worked exclusively in California until he retired on December 31, 2022.
He moved to Nevada on January 1, 2023. His former California employer pays its employees on
the 5th of every month. On January 10, 2023, Ernie received in the mail his last paycheck of
$4,000 from his former California employer. What amount of the compensation is taxable by
California? - Answers -$4,000
A divorce decree showed Ron Fowler was to provide $2,000 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? - Answers -$2,000
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Updated Questions and Verified 100% Solutions (2026/2027)
Grade: A+|Status: Guaranteed Pass
Which of the following statements is not true regarding estimated tax payments? - Answers -A
taxpayer must make estimated tax payments even if he or she is a nonresident or new resident
of California in 2022 and did not have a California tax liability in 2021
Erin receives and accepts a permanent job offer in Spain. She and her spouse sell their home in
California, pack all of their possessions and move to Spain on May 5, 2022. Their children also
relocate to Spain on the same date. They lease an apartment and enroll the children in school in
Spain. They both obtain a driver's license from Spain and make numerous social connections in
their new home. They have no intention of returning to California. Which of the following
statements is true? - Answers -Both Erin and her spouse are considered part-year residents of
California
Jason Golden is a business executive and resides in Washington with his family. Several times
each year, he travels to other states for business purposes. His average stay is one or two weeks,
and the entire time spent in California for any taxable year does not exceed six weeks. Jason's
family usually remains in Washington while he is traveling for business purposes. Which of the
following statements applies to Jason? - Answers -Jason is not a California resident because his
stays in California are temporary or transitory in nature
Steve 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 2022. Steve additionally had a contract job
from ABC Co. based in Arizona. His contract earnings totaled $17,000 in 2022. What amount is
Steve's total California resident income in 2022? - Answers -$92,000
1|Page
, Karla bought a virtual assistant device online for $200, including shipping, and had it sent to her
home. However, she was not charged tax during the purchase. Karla reviews the California City
& County Sales & Use Tax Rates and determines her local rate is 8.0%. What amount of Use Tax
does Karla owe on her California state income tax return for this purchase? - Answers -$16
All of the following are true regarding the California Earned Income Tax Credit (CalEITC) except: -
Answers -Self-employment income cannot be used to qualify for the CalEITC
Rosalinda Guzman applies for a College Access Tax Credit (CATC) reservation on October 31,
2022. Her proposed contribution is $10,000. The California Educational Facilities Authority
(CEFA) grants a $5,000 credit reservation on November 7. Rosalinda makes a $10,000
contribution to the fund on November 22, 2022. CEFA sends the credit certification to Rosalinda
on December 1. Rosalinda may claim a College Access Tax Credit for what amount on her
California tax return? - Answers -$5,000
Ernie Brooks lived and worked exclusively in California until he retired on December 31, 2022.
He moved to Nevada on January 1, 2023. His former California employer pays its employees on
the 5th of every month. On January 10, 2023, Ernie received in the mail his last paycheck of
$4,000 from his former California employer. What amount of the compensation is taxable by
California? - Answers -$4,000
A divorce decree showed Ron Fowler was to provide $2,000 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? - Answers -$2,000
2|Page
