Docstoc

Familiarization Training.ppt - AARP Tax -Aide New Jersey

Document Sample
Familiarization Training.ppt - AARP Tax -Aide New Jersey Powered By Docstoc
					Morris County AARP TaxAide

 TaxWise Familiarization
                                      Module NJ A01E


Morris County
AARP TAX-AIDE PROGRAM
 Welcome to the Class of
     Tax Year 2009




                11/30/2011   NJ Integrated Training - 2007 Tax Season   2
OVERVIEW
 WHO WE ARE
 INSURANCE COVERAGE
 ORIENTATION
 WHO YOU ARE
    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
   INSURANCE COVERAGE

            Travel accident insurance coverage if on Tax-
             Aide business

            Supplemental secondary only

            Notify District Coordinator ASAP




11/30/2011                 NJ Integrated Training - 2007 Tax Season   5
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
Agenda
 Welcome & Introduction to MC TaxWise
  (Nancy)
 Introductions
 Forms
 TaxWise Online Software Overview
 Practice Exercises
 Homework
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
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
Forms

 Intake & Interview Form
 IRS Form 1040
 IRS Schedule A
 W-2 Wage & Tax Statement
 W-2G Gambling Winnings
 1099INT, 1099DIV, 1099R, SSA-1099
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
Intake Form Page 1
Intake Form Page 2
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
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
           Form 1040 Page 1 Taxpayer
           Information              Personal Information




                                            Presidential Election
                                            Campaign Question

                             Exemptions
Filing Status                             Dependent Information
    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”
          1040 Page 1 Income
Income




Adjustments to Income
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”
         1040 Page 2 Taxes & Credits
                            Itemized or Standard
Taxes Calculated            Deduction




                                              Exemptions




Other Taxes
                                 Nonrefundable Credits
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
          Payments/Refund/Owe/Sign
                          Pre-Paid Taxes
Refundable Credits




                                           Refund


                                            Owe




        Signature Box
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
Schedule A   Medical Expenses




             Property Taxes


             Mortgage Interest


              Contributions


                Misc Deductions
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
W-2 Wage & Tax Statement




                NJSUI
                NJSDI
    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
            W-2G
Payer & Payee
Information   Winnings   Type Wager
                                      Taxes Withheld
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.
1099-DIV
1099-INT
1099-R
 Distribution from pension, IRA, annuities,
  etc.
 Enter information in TaxWise 1099R
 TaxWise puts the proper information on
  the correct 1040 lines
1099-R                  If taxable amount not
                        determined, there is
                        more to do




         Distribution Codes on Back or
         in Help
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
  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
TaxWise Flow Chart
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.
Social Security Number Key
   SSN in the problems are shown as:
    ◦ ###-XX-YYYY
   ### = numbers shown in problem
    ◦ Example:123
 XX=numbers at the end of your user ID
 YYYY= 0910
Caution
   Anything you enter is TWO can be
    viewed by instructors and coaches

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:2
posted:11/30/2011
language:English
pages:39