The Tax Institute Quiz

Your Name (use a false name if you don't want anyone to know your score)

(True or False)
1. If a client refused to pay for a tax return, a tax professional may refuse to return customer records or data until payment has been made.


(True or False)
2. A married couple that operates a business does not always need to file a partnership return.


(True or False)
3. California does not tax interest earned from United States savings bonds although the federal goverment does. You must make an adjustment on Schedule CA for interest from U.S. savings bonds.


4. The American Recovery and Reinvestment Act of 2009 states that effective in the 2009 tax year, the first _____ of unemployment compensation is excluded from gross income?

a. $1,000
b. $2,000
c. $2,400
d. All unemployment is excluded

5. The American Recovery and Reinvestment Act of 2009 states that effective in the 2009 tax year, the safe harbor percentages to avoid underpayment of estimated tax penalties are reduced to ______for qualified individuals.

a. 100%
b. 97.5%
c. 95%
d. 90%

6. For taxpayers with multiple homes, the regulations issued in late December 2002, relating to the exclusion of gain on the sale of a principal residence list several factors relevant to determining which home is the principal residence.  All of the following are relevant factors except:

a. The amount of time the home is used.
b. The value of the homes.
c. The place of employment of the taxpayers.
d. The address used for tax returns.
7. Mortgage insurance premiums paid in 2009 in connection with home acquisition debt on a qualified home are:

a. Deductible as an adjustment to income on Form 1040.
b.Deductible as an itemized deduction on schedule A.
c. Deductible as a credit on Form 1040.
d. Not deductible.

8. John collects beverage containers as a hobby.  During 2009 John sold $10,000 in aluminum cans to A&B Recycling Centers of America.  What amount of the sold cans must John include in gross income for 2009?

a. $0 on Federal, $0 on State
b. $10,000 on Federal, $0 on State
c. $0 on Federal, $10,000 on State
d. $10,000 on Federal, $10,000 on State

9. The deduction for teachers for classroom materials is available for all of the following except:

a. Community College Counselors.
b. High School Principals.
c. Elementary School Instructors.
d. Kindergarten Teacher's aides.

(True or False)
10. Federal law and California law are different  regarding medical expense deductions as itemized deductions and health insurance benefits for Domestic Partners.