AARP Tax-Aide Scope

1
AARP Tax-Aide Scope

• What's Out
• What's In

2
Out of Scope

• Schedule C (Business Profit and Loss)
• Complicated/Lengthy Schedule D
• (Capital Gains and Losses)
• Schedule E (Rental Property, Royalties,
• Partnerships, and Trusts that involve
• depreciation)

3
Out of Scope (Con't)

• FORM
• 2106 (Employee Business Expense)
• 3903 (Moving Expenses)
• 8615 (Minors Investment Income)
• 8606 (Nondeductible IRA) when taking distribution
• Schedule K-1s other than interest and dividends

4
In Scope

• FORM
• 1040EZ
• 1040A with Schedules 1, 2, 3 and EIC
• 1040 with Schedules A, B, C-EZ, EIC, R
• Simple Schedule D
• Schedule E (Oil Gas Leases or Royalties)
• payments reported on 1099-Misc, that do not
  involve depreciation, depletion, or any other
  expenses against that income

5
In Scope

• 1099 Misc (box 7 nonemployee comp reported on
  Schedule CEZ)
• 1099Misc (box 1, 2 or 3 - rents, royalties, or
  other income with no expenses) - reported on Line
  21 Other Income
• 8606 to record Non-deductible IRA contribution

6
In Scope

• 1040-V
• 1040-ES (Estimated Payments)
• 2106-EZ (Employee Business Expense)
• 2441 (Child Dependent Care)
• 8283, Section A, Part 1 non-cash
• contributions to charity exceed 500 but less
  than 5000

7
In Scope

• 8880 (Qualified Savings Credit)
• 8812 (Additional Child Tax Credit)
• 8863 (Education Credits)
• 9465 (Installment Agreement)
• 8379 (Injured Spouse)
• 1040X (if trained)

8
In Scope

• Limited Schedule K-1 that provides
• information only for Schedule B or D (if
• trained)
• Contributions to Charities from an IRA

9
In Scope (Con't)

• Schedule E (Oil Gas Leases or Royalties)
• payments reported on 1099-Misc, that do not
• involve
• depreciation
• depletion
• any other expenses against that income

10
Refer to Professional Tax Preparer

• Sale of home when non-qualified use
• Energy Credit Solar, WindTurbine, Geothermal
• Farm Income
• Under 18 with investment income gt 1,900
• Coverdell or 529 funds not used for education

11
Refer to Professional Tax Preparer

• Alimony paid under divorce agreement pre 1985
• C-EZ wants to or has used actual expenses
• Sale of other than stocks, mutual funds, personal
  residence
• Tax payer doesn't know basis of stock

12
Refer to Professional Tax Preparer

• In kind exchanges, wash sales, worthless
  securities
• Sale of home reduced exclusion
• Sale of home used as business or rental income
  after May 6, 1997
• Determining adjusted basis of gifted property

13
Refer to Professional Tax Preparer

• Cancellation of debt due to bankruptcy
• Non-deductible contributions to IRA
• If taxpayer has used General Rule in past to
  determine taxable portion of pension
• Lump sum pension distribution spread over
  previous years
• Form 6251 AMT

14
Refer to Professional Tax Preparer

• Casualty Theft Loss
• Charitable contributions gt 20 of AGI
• Form 8283 non-cash contributions gt 500
• Household employment taxes

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REMEMBER

• To prepare an accurate return,
• AARP Tax Counselors can determine if a return is
  too complicated
• or outside the scope of their training