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California Homework Document

Please use 2014 amounts

Please remember that all questions below pertain to CALIFORNIA income tax rules. Go to the Franchise

Tax Board website & answer the following questions.

1. Agency which administers income tax in California is [the] Franchise Tax Board (FTB).

2. The maximum income tax rate for an individual is 12.3 percent.

3. The Mental Health Services Tax Rate is an additional 1 percent for taxable income in excess of

$1,000,000.

4. There are 5 Filing Statuses in California. They are:

1. Single

2. Married/RDP filling separately

3. Head of house hold

4. Married/RDP filling jointly

5. Qualifying widow(er)

5. An exemption credit for Singlefiler in California is $108.

6. A taxpayer who is both blind and age 65 or over will receive an additional exemption credit of $108.

True or False. False: He/she will receive an additional $216

7. Standard deduction amount for Married filing Jointlyin California is $7984.

8. The threshold amount to begin itemized deduction phase-out in California for Singlefiler is

$176,413.

9. The renterscredit available for Married filing Jointlyis $120.

10. A Singlefiler who rents may claim the nonrefundable renterscredit if their California AGI is

$37768 or less.

11. AGIstands for: Adjusted Gross Income

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For questions 1214, please indicate whether the following taxpayers are required to file a tax return in

California by indicating YES or NO. (Tip: review Individual Filing Requirements from the FTB website)

12) Jack, a 26 year-old full time student, not claimed as a dependent, with California gross

income of $18,000. He has no dependents. Yes

13) Charlotte is 30 years old, head of household, has a 5 year old dependent child with

California gross income of $18,000. NO

14) Mary and Harry, domestic partners, ages, 66 and 69 respectively, with California gross

income of $45,000. Marysadult dependent daughter lives with them. NO

Please calculate NET California income tax liability. California Adjusted Gross Income is the amount on

line 17 of the Form 540. Assume the standard deduction is used. Use Form 540, 540 Instructions or the

California Individual Tax Formula for help answering questions 15 & 16:

Example: JJ has California Adjusted Gross Income of $50,000. He is single, 27 years old and has no

dependents.

California AGI: $50,000

Less standard deduction: - $3,992

CA taxable Income $46,008

Tax per tax table (Single) = $1,850

Less personal exemption credit - $108

Net Tax Liability: $1,742

15. Jose and Maria are married, filing joint, both are 35 years old and have 2 dependent

children. They have California Adjusted Gross Income of $75,000.

Net Tax Liability = $1088

16. Jackson is head of household, age 50 with one dependent daughter and California

Adjusted Gross Income of $29,000. Net Tax Liability = 0 ; refund: $67

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17. The California state sales and use tax is administered by The Board of Equalization.

18. A legal document that allows someone else to act on another persons behalf in matters specified in

the document is known as Power of attorney declaration.

19. Which of the following words that are underlined in the following sentence is correct (indicate the

correct word(s)). Unemployment compensation is considered taxable OR tax exempt for Federal

purposes, but is taxable OR tax exempt for California purposes.

Taxable for federal purposes; But is tax exempt for California purposes.