Morris County AARP TaxAide

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Morris County AARP TaxAide

• TaxWise Familiarization

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AARP TAX-AIDE PROGRAMWelcome to the Class of Tax
Year 2009
Module NJ A01E

• Morris County

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OVERVIEW

• WHO WE ARE
• INSURANCE COVERAGE
• ORIENTATION
• WHO YOU ARE

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WHO WE ARE

• Charitable, non-profit program administered by
  AARP Foundation
• Free, nationwide confidential service
• Help low-to-mid income taxpayers with special
  attention to age 60
• Committed to high-quality service
• Answer tax questions/prepare returns
• Funded 1/3 AARP 2/3 IRS TCE

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INSURANCE COVERAGE

• Travel accident insurance coverage if on Tax-Aide
  business
• Supplemental secondary only
• Notify District Coordinator ASAP

11/13/2013
NJ Integrated Training - 2007 Tax Season
5
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ORIENTATION

• Rest Rooms
• Lunch
• Name Tags First Name Only in Sites
• Sign-in List
• Roster Check off that information is correct
• Put Your Names on Your Training Material

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Agenda

• Welcome Introduction to MC TaxWise (Nancy)
• Introductions
• Forms
• TaxWise Online Software Overview
• Practice Exercises
• Homework

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Goal

• Familiarize students with TaxWise Software prior
  to Integrated Tax Law/ TaxWise Training in
  December
• Open TaxWise Online using user ID and Password
• Walk around the software
• Start a return
• Complete main information sheet
• Enter income types
• Schedules A B
• Some NJ entries

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Tell Us About Yourself

• Name
• Home town
• Occupation
• Current or pre-retirement
• Computer experience
• Computer Geek to I just do E-mail
• Tax experience
• CPA to I never did a tax return
• What are your expectations of the AARP TaxAide
  Program

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Forms

• Intake Interview Form
• IRS Form 1040
• IRS Schedule A
• W-2 Wage Tax Statement
• W-2G Gambling Winnings
• 1099INT, 1099DIV, 1099R, SSA-1099

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AARP Intake Interview Form

• Completed by the client
• Page 1 includes general information for taxpayer,
  spouse and dependents
• Page 2 summary of income and deductable expenses
  and tax credits
• Page 2 Quality review questions
• Page 2 retain data signature (not required for
  2009)
• For 2009 we will use IRS Intake Form

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Intake Form Page 1
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Intake Form Page 2
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IRS Form 1040

• Everyone files a 1040 or a version of the 1040
  (1040A, 1040EZ, etc)
• Split up into 4 general areas
• Taxpayer information
• Income
• Taxes Credits
• Payments/Refunds Due and Signature

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Taxpayer Information

• Information from Intake Sheet Client Interview
• Input into TaxWise on the Main Information Sheet
• Includes
• Personal information for taxpayer spouse
• Filing status
• Dependent information
• Exemptions

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Form 1040 Page 1 Taxpayer Information
Personal Information
Presidential Election Campaign Question
Exemptions
Filing Status
Dependent Information
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Income

• All sources of income included in this section
• Income derived from various forms usually issued
  by employer, financial institution, government
  agency, etc
• Information from forms entered into the
  respective form in TaxWise
• TaxWise puts the appropriate values into the
  1040.
• Final line on page is Adjusted Gross Income

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1040 Page 1 Income
Income
Adjustments to Income
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Taxes Credits Page 2

• Starts with Adjusted Gross Income
• Deduct Itemized or Standard Deduction
• Deduct Personal Exemptions
• Arrive at Taxable Income
• Calculate Tax
• Alternative Minimum Tax (Out of Scope)
• Apply non-refundable tax credits
• Add other taxes
• Bottom line is Total Tax

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1040 Page 2 Taxes Credits
Itemized or Standard Deduction
Taxes Calculated
Exemptions
Other Taxes
Nonrefundable Credits
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Payments/Refund/Owe/Sign

• Start with Total Tax
• Apply tax withheld and estimated payments
• Apply refundable credits
• Bottom line
• A refund
• You owe
• Direct deposit information
• Signature line

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Payments/Refund/Owe/Sign
Pre-Paid Taxes
Refundable Credits
Refund
Owe
Signature Box
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Schedule A Itemized Deductions

• Everyone is allowed a standard deduction
• Test to see if greater than standard deduction
• Includes Medical, Taxes, Mortgage Interest,
  Charitable Contributions, Misc.
• Entered in TaxWise on Schedule A and Schedule A
  Detail
• For this class we will use medical and property
  tax deduction

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Schedule A
Medical Expenses
Property Taxes
Mortgage Interest
Contributions
Misc Deductions
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W-2 Wage and Tax Statement

• Employer issues to employee for tax year
• Employer identification information
• Employee identification information
• Wages earned
• Taxes withheld
• All information to be copied to TaxWise EXACTELY
  as shown on the form
• TaxWise puts information entered in proper place

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W-2 Wage Tax Statement
NJSUI
NJSDI
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W2G

• Issued by gambling establishment to report
  gambling winnings
• Payer and payee information
• Amount won
• Federal state taxed withheld
• Type date of wager
• Copy information from W2G to TaxWise W2G
• TaxWise enters amount on 1040 line 21
• Label line 21 Gambling
• Gambling loses on schedule A

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W-2G
Payer Payee Information
Winnings
Type Wager
Taxes Withheld
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1099-DIV, 1099-INT

• Received from financial institution for dividends
  and/or interest received
• Information from these forms are entered in
  TaxWise on Schedule B Interest or Dividend
  Statement
• TaxWise puts information into Schedule B Interest
  Ordinary Dividends and then to 1040.

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1099-DIV
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1099-INT
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1099-R

• Distribution from pension, IRA, annuities, etc.
• Enter information in TaxWise 1099R
• TaxWise puts the proper information on the
  correct 1040 lines

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1099-R
If taxable amount not determined, there is more
to do
Distribution Codes on Back or in Help
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SSA-1099

• Amount from Box 5 is input into TaxWise 1040 Wkt
  1
• Medicare Part B entered into TaxWise 1040 Wkt 1
• Medicare Part D entered into Schedule A Detail
• Box 6 Federal Income Tax Withheld into 1040 Wkt 1
  

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SSA-1099
Box 5 Amt to Wkt 1
Medicare Part B
Federal Tax Withheld
If there is Medicare Part D it is entered into
Sch A Detail
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TaxWise Flow Chart
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TaxWise Online

• Web site for training
• https//twonline.taxwise.com/training/
• .Client Name 2106185
• .User Name Student STUDENTXX
• .User Name Coach COACHXX
• .Password Same as user name for first logon.
  Reset your Password.

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Social Security Number Key

• SSN in the problems are shown as
• -XX-YYYY
• numbers shown in problem
• Example123
• XXnumbers at the end of your user ID
• YYYY 0910

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Caution

• Anything you enter is TWO can be viewed by
  instructors and coaches