Page 1 of 63
TAX SCHOOL 2026 EXAM COMPLETE
CURRENT TESTING QUESTIONS AND
DETAILED CORRECT
ANSWERS|GUARANTEED PASS.
TAX
Ace your Tax School Exam by mastering federal and state tax
laws, filing procedures, deductions, and ethical preparation
standards. This study guide evaluates your knowledge of
individual and business tax returns through realistic, scenario-
based practice questions. It is specifically designed to prepare
you for professional tax preparation certification and a
successful career in the tax industry.
The Tax Cuts and Jobs Act suspends all miscellaneous
itemized deductions that are subject to the 2% floor under
present law. For which of the following itemized deductions
does California tax law conform to the new Federal tax
provisions for tax year 2019? A. Tax preparation expenses
B. Unreimbursed business expenses
C. Investment expenses
D. Medical expenses
, Page 2 of 63
As a result of the Tax Cuts and Jobs Act, under Federal tax
law the tax preparation fees deduction are suspended in tax
year 2019. Therefore, under California tax law, a California
taxpayer who itemizes his or her deductions and has an
adjusted gross income (AGI) of $35,000, and no
miscellaneous expenses other than tax preparation fees of
$1,000, would be able to take a deduction of what amount
on his or her California income tax return for tax year 2019?
A. $0
B. $300
C. $700
D. $1,000
The Tax Cuts and Jobs Act suspends all miscellaneous
itemized deductions that are subject to the 2% floor for
2019. However, under California tax law which of the
following items may a taxpayer claim on his or her California
income tax return as an unreimbursed business expense for
tax year 2019? A. Union dues and expenses
B. Work clothes and uniforms if required and not suitable for
everyday use
C. Work-related education
D. All of the above
, Page 3 of 63
Because of the Tax Cuts and Jobs Act, under Federal tax law
the employee business expenses deduction are suspended
in tax year 2019. However, California does not conform to
the Federal suspension of all miscellaneous itemized
deductions. Therefore, under California tax law valid
employee business expenses that are deductible on the
California income tax return for tax year 2019 include all of
the following except: A. Expenses paid or incurred during
the taxpayer's tax year
B. Expenses required to carry on a trade or business
C. Expenses that are reimbursed by the taxpayer's employer
D. Expenses that are ordinary and necessary
For tax year 2019 all of the following are true regarding the
Claim of Right deduction under California tax law except:
A. Deductions of $3,000 or less are not allowed
because they are subject to the 2% Federal adjusted gross
income (AGI) limit
B. If the amount repaid was not taxed by California, then no
credit is allowed
, Page 4 of 63
C. If the taxpayer is eligible to take the credit for California,
he or she adds the credit amount on line 77, the total
payment line, of the Form 540
D. If the taxpayer claimed a credit for the repayment on his
or her Federal tax return and is deducting the repayment for
California, enter the allowable deduction as a positive
amount on Part I of Schedule CA (540), line 8
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? A. $500
B. $600
C. $1,000
D. $3,000
TAX SCHOOL 2026 EXAM COMPLETE
CURRENT TESTING QUESTIONS AND
DETAILED CORRECT
ANSWERS|GUARANTEED PASS.
TAX
Ace your Tax School Exam by mastering federal and state tax
laws, filing procedures, deductions, and ethical preparation
standards. This study guide evaluates your knowledge of
individual and business tax returns through realistic, scenario-
based practice questions. It is specifically designed to prepare
you for professional tax preparation certification and a
successful career in the tax industry.
The Tax Cuts and Jobs Act suspends all miscellaneous
itemized deductions that are subject to the 2% floor under
present law. For which of the following itemized deductions
does California tax law conform to the new Federal tax
provisions for tax year 2019? A. Tax preparation expenses
B. Unreimbursed business expenses
C. Investment expenses
D. Medical expenses
, Page 2 of 63
As a result of the Tax Cuts and Jobs Act, under Federal tax
law the tax preparation fees deduction are suspended in tax
year 2019. Therefore, under California tax law, a California
taxpayer who itemizes his or her deductions and has an
adjusted gross income (AGI) of $35,000, and no
miscellaneous expenses other than tax preparation fees of
$1,000, would be able to take a deduction of what amount
on his or her California income tax return for tax year 2019?
A. $0
B. $300
C. $700
D. $1,000
The Tax Cuts and Jobs Act suspends all miscellaneous
itemized deductions that are subject to the 2% floor for
2019. However, under California tax law which of the
following items may a taxpayer claim on his or her California
income tax return as an unreimbursed business expense for
tax year 2019? A. Union dues and expenses
B. Work clothes and uniforms if required and not suitable for
everyday use
C. Work-related education
D. All of the above
, Page 3 of 63
Because of the Tax Cuts and Jobs Act, under Federal tax law
the employee business expenses deduction are suspended
in tax year 2019. However, California does not conform to
the Federal suspension of all miscellaneous itemized
deductions. Therefore, under California tax law valid
employee business expenses that are deductible on the
California income tax return for tax year 2019 include all of
the following except: A. Expenses paid or incurred during
the taxpayer's tax year
B. Expenses required to carry on a trade or business
C. Expenses that are reimbursed by the taxpayer's employer
D. Expenses that are ordinary and necessary
For tax year 2019 all of the following are true regarding the
Claim of Right deduction under California tax law except:
A. Deductions of $3,000 or less are not allowed
because they are subject to the 2% Federal adjusted gross
income (AGI) limit
B. If the amount repaid was not taxed by California, then no
credit is allowed
, Page 4 of 63
C. If the taxpayer is eligible to take the credit for California,
he or she adds the credit amount on line 77, the total
payment line, of the Form 540
D. If the taxpayer claimed a credit for the repayment on his
or her Federal tax return and is deducting the repayment for
California, enter the allowable deduction as a positive
amount on Part I of Schedule CA (540), line 8
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? A. $500
B. $600
C. $1,000
D. $3,000
