CTEC California Tax Preparer Certification Exam | 150
Practice Questions with Bold Answers & Italic
Rationales | 2026/2027 Update
Description:
This document contains 150 realistic practice questions for the CTEC California Tax
Preparer Certification Exam. Each question includes the correct answer in bold and a
detailed explanation in italics based on CTEC curriculum and California tax law.
Topics Covered:
CTEC Registration & Requirements (60-hour course, $5,000 bond, PTIN)
Renewal & Continuing Education (20 hours: 10 Federal + 3 Federal Update + 2
Ethics + 5 California)
Federal Tax Law (filing statuses, dependents, deductions, credits)
California State Tax Law (standard deduction, renter's credit, capital gains treatment)
Due Diligence (Form 8867 – EITC, CTC, AOTC, HOH)
Penalties & Professional Standards (IRC §6694, §6701, Circular 230)
Tax Preparation Procedures (Form 1040, Schedules, recordkeeping)
Updated for the 2026/2027 exam cycle. Perfect for exam prep or as a study supplement for
CTEC candidates.
Section 1: Registration & CTEC Requirements (Questions 1-25)
1. Who is required to register with the California Tax Education Council (CTEC)?
A) Certified Public Accountants (CPAs)
B) Attorneys practicing tax law
C) IRS Enrolled Agents
D) Non-exempt paid tax preparers
Answer: D
CTEC registration is mandatory for individuals who prepare taxes for a fee and are not
exempt as an attorney, CPA, or Enrolled Agent .
,2. What is the minimum initial education requirement before registering with CTEC?
A) 20 hours
B) 40 hours
C) 50 hours
D) 60 hours
Answer: D
New applicants must complete 60 hours of qualifying education covering federal and
California tax law before they can register with CTEC .
3. How many hours of Federal Tax Law are required in the 60-hour qualifying
education course?
A) 30 hours
B) 45 hours
C) 48 hours
D) 50 hours
Answer: B
The 60-hour qualifying course consists of 45 hours of Federal Tax Law (including 2 hours
Ethics) and 15 hours of California Tax Law .
4. Within how many months must a new preparer register with CTEC after completing
the 60-hour qualifying course?
A) 6 months
B) 12 months
C) 18 months
D) 24 months
Answer: C
New CRTP applicants must register with CTEC within 18 months from the completion date
on their certificate of completion. Failure to do so requires retaking the 60-hour course .
5. What is the minimum surety bond amount a CTEC-registered tax preparer must
maintain?
A) $2,500
**B) $5,000**
C) $10,000
D) $25,000
Answer: B
, CTEC requires registered tax preparers to maintain a $5,000 surety bond at all times to
cover potential client damages .
6. What is the deadline for renewing CTEC registration each year?
A) December 31
B) October 31
C) January 15
D) April 15
Answer: B
CTEC registration must be renewed by October 31 of each year. A grace period extends
until January 15, but registration after October 31 incurs a $55 late fee .
7. What happens if you do not renew your CTEC registration by January 15?
A) You pay a $25 late fee
B) You can renew with no penalty
C) You must pay a $100 reinstatement fee
D) You must restart the process: 60-hour course, Live Scan, PTIN, and new bond
Answer: D
If you miss the January 15 deadline, you must restart the entire process: 60-hour course,
Live Scan background check, PTIN, and new $5,000 bond .
8. What does PTIN stand for?
A) Professional Tax Identification Number
B) Preparer Tax Identification Number
C) Personal Taxpayer Identification Number
D) Provincial Tax Information Number
Answer: B
PTIN stands for Preparer Tax Identification Number, which all tax preparers must obtain
from the IRS before preparing returns for a fee .
9. How often must a tax preparer renew their PTIN with the IRS?
A) Every 2 years
B) Every 3 years
C) Annually
D) Only once, unless it is revoked
Answer: C
, PTINs must be renewed every calendar year through the IRS before a preparer can legally
prepare federal tax returns for compensation .
10. For tax year 2026, what is the IRS fee for obtaining a PTIN?
A) $12.75
**B) $18.75**
C) $25.00
D) $33.00
Answer: B
For 2026, the IRS has set the PTIN fee at $18.75. This fee is separate from CTEC
registration and bonding requirements .
11. What is the penalty for a CTEC preparer failing to retain required records for
compliance?
A) $100
**B) $500**
C) $1,000
D) $2,500
Answer: B
CTEC can impose a $500 fine for failing to maintain the required documentation and
records necessary for compliance checks .
12. To legally prepare California tax returns for pay, a CRTP must be registered with:
A) IRS
B) California Franchise Tax Board (FTB)
C) California Tax Education Council (CTEC)
D) Department of Consumer Affairs
Answer: C
CTEC regulates and registers non-credentialed tax preparers in California .
13. Which of the following professionals is NOT required to register with CTEC?
A) CRTP
B) Enrolled Agent
C) CPA
D) Attorney
Answer: B
CRTPs must register; EAs, CPAs, and attorneys are exempt from CTEC registration .
Practice Questions with Bold Answers & Italic
Rationales | 2026/2027 Update
Description:
This document contains 150 realistic practice questions for the CTEC California Tax
Preparer Certification Exam. Each question includes the correct answer in bold and a
detailed explanation in italics based on CTEC curriculum and California tax law.
Topics Covered:
CTEC Registration & Requirements (60-hour course, $5,000 bond, PTIN)
Renewal & Continuing Education (20 hours: 10 Federal + 3 Federal Update + 2
Ethics + 5 California)
Federal Tax Law (filing statuses, dependents, deductions, credits)
California State Tax Law (standard deduction, renter's credit, capital gains treatment)
Due Diligence (Form 8867 – EITC, CTC, AOTC, HOH)
Penalties & Professional Standards (IRC §6694, §6701, Circular 230)
Tax Preparation Procedures (Form 1040, Schedules, recordkeeping)
Updated for the 2026/2027 exam cycle. Perfect for exam prep or as a study supplement for
CTEC candidates.
Section 1: Registration & CTEC Requirements (Questions 1-25)
1. Who is required to register with the California Tax Education Council (CTEC)?
A) Certified Public Accountants (CPAs)
B) Attorneys practicing tax law
C) IRS Enrolled Agents
D) Non-exempt paid tax preparers
Answer: D
CTEC registration is mandatory for individuals who prepare taxes for a fee and are not
exempt as an attorney, CPA, or Enrolled Agent .
,2. What is the minimum initial education requirement before registering with CTEC?
A) 20 hours
B) 40 hours
C) 50 hours
D) 60 hours
Answer: D
New applicants must complete 60 hours of qualifying education covering federal and
California tax law before they can register with CTEC .
3. How many hours of Federal Tax Law are required in the 60-hour qualifying
education course?
A) 30 hours
B) 45 hours
C) 48 hours
D) 50 hours
Answer: B
The 60-hour qualifying course consists of 45 hours of Federal Tax Law (including 2 hours
Ethics) and 15 hours of California Tax Law .
4. Within how many months must a new preparer register with CTEC after completing
the 60-hour qualifying course?
A) 6 months
B) 12 months
C) 18 months
D) 24 months
Answer: C
New CRTP applicants must register with CTEC within 18 months from the completion date
on their certificate of completion. Failure to do so requires retaking the 60-hour course .
5. What is the minimum surety bond amount a CTEC-registered tax preparer must
maintain?
A) $2,500
**B) $5,000**
C) $10,000
D) $25,000
Answer: B
, CTEC requires registered tax preparers to maintain a $5,000 surety bond at all times to
cover potential client damages .
6. What is the deadline for renewing CTEC registration each year?
A) December 31
B) October 31
C) January 15
D) April 15
Answer: B
CTEC registration must be renewed by October 31 of each year. A grace period extends
until January 15, but registration after October 31 incurs a $55 late fee .
7. What happens if you do not renew your CTEC registration by January 15?
A) You pay a $25 late fee
B) You can renew with no penalty
C) You must pay a $100 reinstatement fee
D) You must restart the process: 60-hour course, Live Scan, PTIN, and new bond
Answer: D
If you miss the January 15 deadline, you must restart the entire process: 60-hour course,
Live Scan background check, PTIN, and new $5,000 bond .
8. What does PTIN stand for?
A) Professional Tax Identification Number
B) Preparer Tax Identification Number
C) Personal Taxpayer Identification Number
D) Provincial Tax Information Number
Answer: B
PTIN stands for Preparer Tax Identification Number, which all tax preparers must obtain
from the IRS before preparing returns for a fee .
9. How often must a tax preparer renew their PTIN with the IRS?
A) Every 2 years
B) Every 3 years
C) Annually
D) Only once, unless it is revoked
Answer: C
, PTINs must be renewed every calendar year through the IRS before a preparer can legally
prepare federal tax returns for compensation .
10. For tax year 2026, what is the IRS fee for obtaining a PTIN?
A) $12.75
**B) $18.75**
C) $25.00
D) $33.00
Answer: B
For 2026, the IRS has set the PTIN fee at $18.75. This fee is separate from CTEC
registration and bonding requirements .
11. What is the penalty for a CTEC preparer failing to retain required records for
compliance?
A) $100
**B) $500**
C) $1,000
D) $2,500
Answer: B
CTEC can impose a $500 fine for failing to maintain the required documentation and
records necessary for compliance checks .
12. To legally prepare California tax returns for pay, a CRTP must be registered with:
A) IRS
B) California Franchise Tax Board (FTB)
C) California Tax Education Council (CTEC)
D) Department of Consumer Affairs
Answer: C
CTEC regulates and registers non-credentialed tax preparers in California .
13. Which of the following professionals is NOT required to register with CTEC?
A) CRTP
B) Enrolled Agent
C) CPA
D) Attorney
Answer: B
CRTPs must register; EAs, CPAs, and attorneys are exempt from CTEC registration .
