TAX SCHOOL ACTUAL LATEST
EXAM 2026 WITH 130 QUESTIONS
AND 100% CORRECT ANSWERS |
ALREADY GRADED A+ |
GUARANTEED PASS | TAX SCHOOL
FINAL EXAM 2026 [NEW VERSION]
Hannah is a California taxpayer. She is retired and receives a pension payment of
$1,000 during 2018, and then in 2019 receives a letter from the pension
administrator informing her that an internal audit of the pension computer system
revealed that the administrator made a mistake and overpaid the $1,000 benefit in
2018. As such, they now want Hannah to repay (the $1,000 overpayment) by
writing a check back to the pension plan in 2019. Under Section 1341, Claim of
Right, Hannah is entitled to claim a deduction for what amount of the overpayment
on her California income tax return for tax year 2019? - ANSWER-A. $500
B. $600
C. $1,000
D. $3,000
,For tax year 2019, 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? - ANSWER-A. Legal fees
B. Medical expenses
C. Investment interest
D. Wagering losses
California tax law does not conform to the Federal suspension of all miscellaneous
itemized deductions. Therefore, under California tax law which of the following is
an example of a legal fee that is deductible on a taxpayer's California income tax
return for tax year 2019? - ANSWER-A. Legal fees paid to acquire business assets
B. Legal fees paid for personal services
C. Legal fees paid related to the taxpayer's job or business
D. Legal fees paid to get divorced
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 2019 include all of the following except: - ANSWER-A.
Investment interest expense
B. Depreciation allowed on assets that produce investment income
C. Depletion allowed on assets that produce investment income
D. Software or online services used to manage the taxpayer's investments
The Tax Cuts and Jobs Act repeals the overall limitation on itemized deductions
including investment expenses. Therefore, for tax year 2019, California S
Corporation shareholders include investment expenses reported to him or her on
which of the following Californian income tax schedules? - ANSWER-A.
Schedule CA
B. Schedule K-1
,C. Schedule S
D. None of the above
For tax year 2019, 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? - ANSWER-A. The total amount of most otherwise allowable itemized
deductions is limited for all taxpayers
B. California will provide its own indexed-for-inflation limitation amounts for
certain upper-income taxpayers
C. The threshold amount will not include single taxpayers
D. The otherwise allowable itemized deductions will not be reduced by more than
75% by reason of the overall limit on itemized deductions
For tax year 2019, based on the amount of the taxpayer's adjusted gross income
(AGI), the amount of otherwise allowable itemized deductions will be reduced by
what percent (%) on his or her California income tax return? - ANSWER-A. 2%
B. 5%
C. 6%
D. There will be no reduction on California tax returns as the Tax Cuts and Jobs
Act repeals the overall limitation on itemized deductions
Regarding the California Earned Income Tax Credit (CalEITC), earned income
used to qualify for the credit includes all of the following except: - ANSWER-A.
Employee compensation subject to California withholding
B. Passive Activity Income
C. Wages reported on a W-2 Form
D. Tips reported on a W-2 Form
, Which of the following is incorrect regarding the ability of the following entities to
claim the credit for prior year Alternative Minimum Tax (AMT)? - ANSWER-A.
An individual who had an AMT credit carryover from 2018 qualifies to claim the
credit for prior year AMT
B. Fiduciaries must complete FTB Form 3510 to claim the credit for prior year
AMT
C. Corporations must complete FTB Form 3510 to claim the credit for prior year
AMT
D. An individual who paid AMT for 2018, and had 2018 adjustments and tax
preference items other than exclusions qualifies to claim the credit for prior year
AMT
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 2019.
Jason additionally had a contract job from ABC Co. based in Washington. His
contract earnings totaled $17,000 in 2019 and will total $15,000 in 2020. What
amount is Jason's total California resident income in 2019? - ANSWER-A.
$75,000
B. $83,500
C. $90,000
D. $92,000
California law specifically provides that an individual whose permanent home is in
California, but who is absent from the state for an uninterrupted period of at least
how many days under an employment-related contract, will not be treated as a
resident subject to California tax? - ANSWER-A. 500 days
B. 546 days
C. 600 days
D. 650 days
EXAM 2026 WITH 130 QUESTIONS
AND 100% CORRECT ANSWERS |
ALREADY GRADED A+ |
GUARANTEED PASS | TAX SCHOOL
FINAL EXAM 2026 [NEW VERSION]
Hannah is a California taxpayer. She is retired and receives a pension payment of
$1,000 during 2018, and then in 2019 receives a letter from the pension
administrator informing her that an internal audit of the pension computer system
revealed that the administrator made a mistake and overpaid the $1,000 benefit in
2018. As such, they now want Hannah to repay (the $1,000 overpayment) by
writing a check back to the pension plan in 2019. Under Section 1341, Claim of
Right, Hannah is entitled to claim a deduction for what amount of the overpayment
on her California income tax return for tax year 2019? - ANSWER-A. $500
B. $600
C. $1,000
D. $3,000
,For tax year 2019, 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? - ANSWER-A. Legal fees
B. Medical expenses
C. Investment interest
D. Wagering losses
California tax law does not conform to the Federal suspension of all miscellaneous
itemized deductions. Therefore, under California tax law which of the following is
an example of a legal fee that is deductible on a taxpayer's California income tax
return for tax year 2019? - ANSWER-A. Legal fees paid to acquire business assets
B. Legal fees paid for personal services
C. Legal fees paid related to the taxpayer's job or business
D. Legal fees paid to get divorced
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 2019 include all of the following except: - ANSWER-A.
Investment interest expense
B. Depreciation allowed on assets that produce investment income
C. Depletion allowed on assets that produce investment income
D. Software or online services used to manage the taxpayer's investments
The Tax Cuts and Jobs Act repeals the overall limitation on itemized deductions
including investment expenses. Therefore, for tax year 2019, California S
Corporation shareholders include investment expenses reported to him or her on
which of the following Californian income tax schedules? - ANSWER-A.
Schedule CA
B. Schedule K-1
,C. Schedule S
D. None of the above
For tax year 2019, 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? - ANSWER-A. The total amount of most otherwise allowable itemized
deductions is limited for all taxpayers
B. California will provide its own indexed-for-inflation limitation amounts for
certain upper-income taxpayers
C. The threshold amount will not include single taxpayers
D. The otherwise allowable itemized deductions will not be reduced by more than
75% by reason of the overall limit on itemized deductions
For tax year 2019, based on the amount of the taxpayer's adjusted gross income
(AGI), the amount of otherwise allowable itemized deductions will be reduced by
what percent (%) on his or her California income tax return? - ANSWER-A. 2%
B. 5%
C. 6%
D. There will be no reduction on California tax returns as the Tax Cuts and Jobs
Act repeals the overall limitation on itemized deductions
Regarding the California Earned Income Tax Credit (CalEITC), earned income
used to qualify for the credit includes all of the following except: - ANSWER-A.
Employee compensation subject to California withholding
B. Passive Activity Income
C. Wages reported on a W-2 Form
D. Tips reported on a W-2 Form
, Which of the following is incorrect regarding the ability of the following entities to
claim the credit for prior year Alternative Minimum Tax (AMT)? - ANSWER-A.
An individual who had an AMT credit carryover from 2018 qualifies to claim the
credit for prior year AMT
B. Fiduciaries must complete FTB Form 3510 to claim the credit for prior year
AMT
C. Corporations must complete FTB Form 3510 to claim the credit for prior year
AMT
D. An individual who paid AMT for 2018, and had 2018 adjustments and tax
preference items other than exclusions qualifies to claim the credit for prior year
AMT
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 2019.
Jason additionally had a contract job from ABC Co. based in Washington. His
contract earnings totaled $17,000 in 2019 and will total $15,000 in 2020. What
amount is Jason's total California resident income in 2019? - ANSWER-A.
$75,000
B. $83,500
C. $90,000
D. $92,000
California law specifically provides that an individual whose permanent home is in
California, but who is absent from the state for an uninterrupted period of at least
how many days under an employment-related contract, will not be treated as a
resident subject to California tax? - ANSWER-A. 500 days
B. 546 days
C. 600 days
D. 650 days
