- Hour California Tax Law Questions
and Answers Graded A+
Question : Which of the following is incorrect regarding the
provisions of California Senate Bill 113 (SB 113)?
CORRECT ANSWER : The $5 million annual limitation for
use of business tax credits, such as research-and-development credits, has been repealed for tax year 2022
Question : Which of the following statements is not true
regarding estimated tax payments?
CORRECT ANSWER : 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
Question : 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?
CORRECT ANSWER : Both Erin and her spouse are
considered part-year residents of California
Question : 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?
CORRECT ANSWER : Jason is not a California resident
because his stays in California are temporary or transitory in nature
Question : 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?
CORRECT ANSWER : $92,000
Question : 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?
CORRECT ANSWER : $16
Question : All of the following are true regarding the
California Earned Income Tax Credit (CalEITC) except:
CORRECT ANSWER : Self-employment income cannot be
used to qualify for the CalEITC
Question : 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?
CORRECT ANSWER : $5,000
Question : 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?
CORRECT ANSWER : $4,000
Question : 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?