TAX-AIDE

TAX-AIDE

Changes to Arizona Tax Law - 2014

Instructor Workshop - 2014 1

TAX-AIDE

2014 Tax Forms Take on a New Look

●Easier to follow Don’t need to go to separate schedules

for additions and subtractions. Exemptions information on Page 1

Instructor Workshop - 2014 2

TAX-AIDE

Standard Deduction Indexed for Inflation - 2014

● Single or married filing separate - $5,009

●MFJ or HH - $10,010

Instructor Workshop - 2014 3

TAX-AIDE

Subtraction for Net Long-Term Capital Gains

●You may take a subtraction from AZ gross income for 20% of any net long-term capital gain included in AGI derived from assets acquired after 12/31/11

Instructor Workshop - 2014 4

TAX-AIDE

New Voluntary Gift on Tax Return for Sustainable State Parks and Roads fund

●You may give some or all of your refund

● Funds will aid the state to operate, maintain and make capital improvements to buildings, roads, parking lots, highway entrances and any related structure used to operate state parks.

Instructor Workshop - 2014 5

TAX-AIDE

Subtraction for Long-Term Care Insurance Premiums

●Beginning in 2013, you may subtract the amount of qualifying premium costs for long-term care insurance as long as you are not claiming itemized deductions.

Instructor Workshop - 2014 6

TAX-AIDE

Subtraction for AZ Long-Term Health Care Savings Accounts

●Beginning in 2013, you may subtract amounts you paid into long-term health care savings account established under AZ law

Instructor Workshop - 2014 7

TAX-AIDE

Subtraction for 529 College Savings Plans

● Single or HH - $2,000

●MFJ - $4,000

Instructor Workshop - 2014 8

TAX-AIDE

Credit for Contributions to Charities that Provide Assistance to the Working Poor

●Beginning in 2013, you are no longer required to itemize deductions in order to claim a credit for contribution make to a qualifying charitable organization

●Total maximum credit $400 for single taxpayers and $800 for married taxpayers

● See AZ Form 321 for more informationInstructor Workshop - 2014 9

TAX-AIDE

Credit for Contribution to Private School Tuition

● For 2014, the amount of the allowable credit for contributions to private school tuition organizations adjusted for inflation.

● Single/HH - $528 maximum

●MFJ - $1,056 maximum

● See AZ Form 323 for more information

Instructor Workshop - 2014 10

TAX-AIDE

Credit for Contributions Made to Certified School Tuition

● For 2014, amount of allowable credit for contributions to certified school tuition organizations adjusted for inflation

● Single/HH - $525

●MFJ - $1,056

● See AZ Form 348 for more information

Instructor Workshop - 2014 11

TAX-AIDEInstructor Workshop - 2014 12

TAX-AIDE

2009 Unemployment

● In May 2010, after tax season, AZ decided not to recognize the Federal first $2400 in unemployment compensation as tax free

● Taxpayers affected by this are now receiving tax bills from AZ.

● No action required on our part. Just explain to taxpayers and indicate that they should pay.

Instructor Workshop - 2014 13

TAX-AIDEInstructor Workshop - 2014 14

TAX-AIDEInstructor Workshop - 2014 15

TAX-AIDEInstructor Workshop - 2014 16

17AZ Returning Counselor Training 2013

For Identity Theft Protection

Prepare and e-file a Federal return for PTC and ET returns.

If Federal return is accepted, SSN is Ok for the present

If Federal return rejected for duplicate SSN taxpayer will have to contact IRS

Side benefit – Info will carry forward

17

18AZ Returning Counselor Training 2013

Process for AZ ET

Prepare 1040 and AZ140, if no income enter $1 in interest statement

Get the red out and run diagnostic

QR, Create e-file(s) and have TP sign 8879 and AZ8879

18

19AZ Returning Counselor Training 2013

Process for AZ PTC

Prepare 1040 and AZ 140, if no income enter $1 in interest statement and enter property tax paid in Sch A.

Open AZ PTC pg 1 and complete form Open AZ 140 pg1 and check [No] on [Do

you want to electronically file this return] Run diagnostics QR and create e-file (will be for 1040 only) Print 1040, 8879, AZ140(2) and AZ PTC(2) Sign 8879, sign and mail AZ140 & AZPTC

with Property Tax receipt

TAX-AIDE

QUESTIONS/COMMENTS?

Instructor Workshop - 2014 20