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2025 5 Hour California Tax Law
Questions with Detailed Verified
Answers
Glenn, 54, and Sheila, 47, are married, have a daughter, and have a household
income of $150,683. During 2020, they did not have health coverage and they
were not eligible for an exemption from coverage for any month of the year.
$49,763 is the state filing threshold for a married couple, both under 65 years
old with one dependent for tax year 2020. When Glenn and Sheila file their
California tax return, they will have to pay an Individual Shared Responsibility
Penalty for what amount? Ans: $2,523
Which of the following statements is not true regarding estimated tax
payments? Ans: A taxpayer must make estimated tax payments even if he or
she is a nonresident or new resident of California in 2020 and did not have a
California tax liability in 2019
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, 2020. 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? Ans: Both Erin and her spouse are
considered part-year residents of California
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
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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? Ans: Jason is not a
California resident because his stays in California are temporary or transitory
in nature
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 2020.
Steve additionally had a contract job from ABC Co. based in Arizona. His
contract earnings totaled $17,000 in 2020. What amount is Steve's total
California resident income in 2020? Ans: $92,000
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? Ans: 16
All of the following are true regarding the 2020 California Earned Income Tax
Credit (CalEITC) except: Ans: Self-employment income cannot be used to
qualify for the CalEITC
Rosalinda Guzman applies for a College Access Tax Credit (CATC) reservation
on October 31, 2020. 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, 2020. 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? Ans: 5000
Ernie Brooks lived and worked exclusively in California until he retired on
December 31, 2020. He moved to Nevada on January 1, 2021. His former
California employer pays its employees on the 5th of every month. On January
2025 5 Hour California Tax Law
Questions with Detailed Verified
Answers
Glenn, 54, and Sheila, 47, are married, have a daughter, and have a household
income of $150,683. During 2020, they did not have health coverage and they
were not eligible for an exemption from coverage for any month of the year.
$49,763 is the state filing threshold for a married couple, both under 65 years
old with one dependent for tax year 2020. When Glenn and Sheila file their
California tax return, they will have to pay an Individual Shared Responsibility
Penalty for what amount? Ans: $2,523
Which of the following statements is not true regarding estimated tax
payments? Ans: A taxpayer must make estimated tax payments even if he or
she is a nonresident or new resident of California in 2020 and did not have a
California tax liability in 2019
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, 2020. 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? Ans: Both Erin and her spouse are
considered part-year residents of California
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
, 2|Page
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? Ans: Jason is not a
California resident because his stays in California are temporary or transitory
in nature
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 2020.
Steve additionally had a contract job from ABC Co. based in Arizona. His
contract earnings totaled $17,000 in 2020. What amount is Steve's total
California resident income in 2020? Ans: $92,000
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? Ans: 16
All of the following are true regarding the 2020 California Earned Income Tax
Credit (CalEITC) except: Ans: Self-employment income cannot be used to
qualify for the CalEITC
Rosalinda Guzman applies for a College Access Tax Credit (CATC) reservation
on October 31, 2020. 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, 2020. 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? Ans: 5000
Ernie Brooks lived and worked exclusively in California until he retired on
December 31, 2020. He moved to Nevada on January 1, 2021. His former
California employer pays its employees on the 5th of every month. On January
