Training SpecificsFriday

NJ Division of Taxation

What’s new? FLI in box 14 (family leave insurance)

Jim Gordon 609-633-6015 Jacob Foy 609-633-8899 www.state.nj.us/treasury/taxation

New

Fed 1040

New

Harry Bonfanti

INTAKE SHEET

New

Schedule L Schedule M

Voice Over Slides

Demo

NJ Property Tax Reimbursement

Joe McFadden

Required Problems

Moore Fleming Sterling

AARP requires we do 4 problems minimum

Plus pass the test

Do them on 2008 software

Mentors review the data entry

100% correct!!!!!!!!

Required Problems cont’d

Assign them as homework Use class time for other training Yes answer keys are in the back of the book,

but it is important that the got the answers in an acceptable way.

Add NJ components to finish exercise

Proficiency Problem

Aka Jones problem Goal: To ensure all volunteers are 100%

proficient in data entry, esp NJ. There are some potential pitfalls No one should proceed to a site till they are

100% accurate on this NJ example

Great final exercise!!!!

Proficiency Problem

Suggested format– Do in class, independent of everyone else– It may take more than an hour– Another measure of proficiency will be the time it

takes them to complete problem, not the how fast, but the how long

Workbook Comprehensive Problem

Good old Dalhart is now Kent Same old scenario Should not count as one of the 4 required Incorporate it in your training of new

volunteers Best done only in class as it is easy to get

out of order

Lesson Plans

AARP suggested NJ reworked

– All on website

Start there and rework to suit

Website

Our joint source of information Software downloads Power point presentations Additional information Possible inserts Updates Warnings

Tax Law Specificsneed to revisit

K-1 Schedule E 1099A/ 1099C IRAs with contributions 8606 Other States PTR teach skills needed QR at site Balance Due

K-1

Simple ones Interest, div, cap gains When in doubt, stop!

Text 12-1 to 2 PBT K-1 ppt on website

Schedule E

Nothing has changed We do not do rental property no matter what In text it jumps from K-1 to Sch E

– Please observe Schedule E is for military , not us

Debt Cancellation

Start with sale of home Lead into cancellation of debt and Abandonment of property Everyone needs to learn this Chapter 10 in text, good explanation PBT 2.4 Several powerpoints on web

IRAs

Will see more where tp made contributions and are now taking distribution

PBT slides cover nicely How to use 1099R, and fill out 8606 Requires complete data

1040 X

New paper format Change in software? Probably still have to mark the same little box

on Fed and NJ Make a point of checking this out later

Other States

New York NY only non resident returns, ie live in NJ If it looks tricky, don’t do it! Limit preparers to those few who have

studied the law and understand the procedure PBT 2.5

Any other states? NO

PENNSYLVANIA

If NJ resident and W-2 has PA w/h 1. must request refund of PA tax (0 taxable

income line 1a, w/h line 13, copy of W-2, copy of NJ resident return)paper return to mail

2.must file NJ return using PA wages and 0 withholding

Pennsylvania cont’d

Additional consideration Philadelphia wage tax Now must fill out “taxes to other jurisdictions”

section of NJ tax return

PTR

Reaching more each year Train on filling out PTR-1 and PTR- 2 Make sure preparers know the rules for who files,

when, what’s required to file (cribsheet in 4012?) Be sure taxpayer has a copy, preferably in tax

envelope When completed, it must have QR Mark sign-in sheet state only and QR Issues? Jim or Jacob can often solve PBT 1.32, 1.33

Balance Due

New this year, software will not include penalty for underpayment

Mark up 4012 (p.13-7)to include:– Choices– 9465 procedure– Fees mentioned in text not 4012– IRS.gov search “OPA” to set up payments

Be Aware

Pensioners may have insufficient withholding and for the first time in years, may owe or not receive their nice refund