CTEC 2026/2027 || VERIFIED QUESTIONS & ANSWERS || HIGH-YIELD
CALIFORNIA TAX EDUCATION COUNCIL REVIEW || TAX LAW, COMPLIANCE &
ETHICS || COMPLETE STUDY GUIDE || EXAM-READY TEST BANK || GRADED A+
Where do Californians make the necessary adjustments(additions and
subtractions) based on the federal adjusted gross income? - CORRECT
ANSWER - 540 Schedule CA, Columns B and C
Which of the following is not a Franchise Tax Board (FTB) Form? -
CORRECT ANSWER - Form 1040
Which of the following is not subject to California taxes? - CORRECT
ANSWER - Unemployment compensation
Which of the following best describes gross income for California? -
CORRECT ANSWER - All income from whatever source derived.
How does California treat alimony received in 2020? - CORRECT ANSWER
- California does not conform to federal law regarding alimony as income.
540 Schedule CA allows the California taxpayer to adjust their federal
adjusted gross income. Which of the following would need to be adjusted on
540 Schedule CA? - CORRECT ANSWER - Employer health savings account
contributions
California allows employers to provide certain fringe benefits to their
employees. Which of the following is not considered a California fringe
benefit? - CORRECT ANSWER - Claiming their child's income.
, Which of the following best describes the purpose of 540 Schedule CA? -
CORRECT ANSWER - To adjust the taxpayer's federal adjusted gross
income based on California law.
Where in Form W-2 can you find California wages and withholdings
information? - CORRECT ANSWER - Boxes 15-20
Louie is a California resident and won the Nevada State Lottery. Where will
Louie make his California 540 Schedule CA adjustment? - CORRECT
ANSWER - No adjustment is made
Adam's daughter Vanessa earned $1,823 in California interest income. Adam
would like to claim the income on his tax return. What California form would
Adam use to report Vanessa's income? - CORRECT ANSWER - Form 3803
When the taxpayer receives dividends from a controlled foreign corporation,
where should the tax professional do additional research to see what is taxable
in California? - CORRECT ANSWER - FTB Pub 1001
Vanessa is 13 and would like to file her own tax return for her investment
income that she earned. She earned $1,400 in interest and $1,200 in ordinary
dividend income. What California form would Vanessa use to report her
investment income? - CORRECT ANSWER - Form 3800
Which of the following municipal bonds are not taxable on the California
return? - CORRECT ANSWER - California
When reporting dividends derived from municipal bonds from other states,
which form is not used? - CORRECT ANSWER - Form 540
CALIFORNIA TAX EDUCATION COUNCIL REVIEW || TAX LAW, COMPLIANCE &
ETHICS || COMPLETE STUDY GUIDE || EXAM-READY TEST BANK || GRADED A+
Where do Californians make the necessary adjustments(additions and
subtractions) based on the federal adjusted gross income? - CORRECT
ANSWER - 540 Schedule CA, Columns B and C
Which of the following is not a Franchise Tax Board (FTB) Form? -
CORRECT ANSWER - Form 1040
Which of the following is not subject to California taxes? - CORRECT
ANSWER - Unemployment compensation
Which of the following best describes gross income for California? -
CORRECT ANSWER - All income from whatever source derived.
How does California treat alimony received in 2020? - CORRECT ANSWER
- California does not conform to federal law regarding alimony as income.
540 Schedule CA allows the California taxpayer to adjust their federal
adjusted gross income. Which of the following would need to be adjusted on
540 Schedule CA? - CORRECT ANSWER - Employer health savings account
contributions
California allows employers to provide certain fringe benefits to their
employees. Which of the following is not considered a California fringe
benefit? - CORRECT ANSWER - Claiming their child's income.
, Which of the following best describes the purpose of 540 Schedule CA? -
CORRECT ANSWER - To adjust the taxpayer's federal adjusted gross
income based on California law.
Where in Form W-2 can you find California wages and withholdings
information? - CORRECT ANSWER - Boxes 15-20
Louie is a California resident and won the Nevada State Lottery. Where will
Louie make his California 540 Schedule CA adjustment? - CORRECT
ANSWER - No adjustment is made
Adam's daughter Vanessa earned $1,823 in California interest income. Adam
would like to claim the income on his tax return. What California form would
Adam use to report Vanessa's income? - CORRECT ANSWER - Form 3803
When the taxpayer receives dividends from a controlled foreign corporation,
where should the tax professional do additional research to see what is taxable
in California? - CORRECT ANSWER - FTB Pub 1001
Vanessa is 13 and would like to file her own tax return for her investment
income that she earned. She earned $1,400 in interest and $1,200 in ordinary
dividend income. What California form would Vanessa use to report her
investment income? - CORRECT ANSWER - Form 3800
Which of the following municipal bonds are not taxable on the California
return? - CORRECT ANSWER - California
When reporting dividends derived from municipal bonds from other states,
which form is not used? - CORRECT ANSWER - Form 540
