1 ny3 instructor training albany 2009 aarp tax-aide scope what's out what's in
TRANSCRIPT
1 NY3 Instructor Training Albany 2009
AARP Tax-Aide Scope
What's OutWhat's In
2 NY3 Instructor Training Albany 2009
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 NY3 Instructor Training Albany 2009
Out of Scope (Con't)
FORM: 2106 (Employee Business Expense) 3903 (Moving Expenses) 8615 (Minor’s Investment Income) 8606 (Nondeductible IRA) when taking
distribution Schedule K-1’s other than interest and
dividends
4 NY3 Instructor Training Albany 2009
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 NY3 Instructor Training Albany 2009
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 NY3 Instructor Training Albany 2009
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 NY3 Instructor Training Albany 2009
In Scope
· 8880 (Qualified Savings Credit)
· 8812 (Additional Child Tax Credit)
· 8863 (Education Credits)
· 9465 (Installment Agreement)
· 8379 (Injured Spouse)
· 1040X (if trained)
8 NY3 Instructor Training Albany 2009
In Scope
· Limited Schedule K-1 that provides
information only for Schedule B or D (if
trained)
· Contributions to Charities from an IRA
9 NY3 Instructor Training Albany 2009
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 NY3 Instructor Training Albany 2009
“Refer to Professional Tax Preparer”
• Sale of home when non-qualified use
• Energy Credit – Solar, WindTurbine, Geothermal
• Farm Income• Under 18 with investment income
> $1,900• Coverdell or 529 funds not used
for education
11 NY3 Instructor Training Albany 2009
“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 NY3 Instructor Training Albany 2009
“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 NY3 Instructor Training Albany 2009
“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 NY3 Instructor Training Albany 2009
“Refer to Professional Tax Preparer”
• Casualty & Theft Loss• Charitable contributions > 20%
of AGI• Form 8283 non-cash
contributions > $500• Household employment taxes
15 NY3 Instructor Training Albany 2009
REMEMBER
To prepare an accurate return, AARP Tax Counselors can
determine if a return is too complicated
or outside the scope of their training