Docstoc

st geo final (PowerPoint)

Document Sample
st geo final (PowerPoint) Powered By Docstoc
					FOCUS
The idea of this Training Presentation is
 to have the more experienced preparer,
 review and revisit past tax seasons.
 To show newer preparers tips and
 ideas for the coming season, but most
 important is to stimulate questions, war
 stories, and tips that help the group be
 better prepared. Have Fun……….
 TAX - AIDE
SOUTHERN UTAH
ORGANIZATION CHART
       HARRY COOPERMAN
 SOUTHERN UTAH DISTRICT COORDINATOR



                                         CHARLES WILSON
                                 LOCAL COORDINATOR ST. GEORGE SC
                                      HARRY COOPERMAN ERO



                                          LINDA NEWTON
                             LOCAL COORDINATOR HURRICANE SC AND ERO



                                         PETER NORBECK
                                LOCAL COORDINATOR WASHINGTON CITY LB
                                         NANCY NORBECK ERO



                                          SHEILA LEWIS
                             LOCAL COORDINATOR CEDAR CITY SC AND ERO
        SHIFT SUPERVISERS
           ST GEORGE SENIOR CENTER



  TUE             WED           THUR             FRI


COLLEEN         CHARLES        SHIRLEY         HARRY
CONLEY           WILSON       GILBREATH      COOPERMAN




CHARLES WILSON: Local Coordinator
HARRY COOPERMAN: Electronic Return Originator (ERO)
              SELECTED PARTS
                           OF
                  TAX WISE
 GENERAL
                 MAIN           SELECTING
GENERAL
GENERAL      INFORMATION                     INCOME
                                  FORMS
                SCREEN

                       GENERAL
ADJUSTMENT                       FINISHING   QUALITY
              ITEMIZED
    TO                              THE      REVIEW
             DEDUCTIONS
   GROSS                          RETURN
  INCOME

             AMENDING
                 A    MISCELLANEOUS
              RETURN
                    GENERAL
            MEETING THE TAX PAYER

 A Facilitator (Greeter) will bring or direct the Tax
  Payer (TP) to your station.
 After introducing yourself, explain that you will be
  preparing their return and E-filing it upon
  completion. (This is their chance to say “I don’t
  want to E-file”)
 Explain that after completing their return it will be
  reviewed by another counselor.
 Review the IRS’s “Intake/ Interview & QR” Sheet
  (most TPs don’t understand parts of the Form), ask if
  they have any questions.
 Ask for their tax documents (All, not one at a time)
                  GENERAL
          MEETING THE TAX PAYER
 Sort and assemble the tax documents in the order
  you like to use in the preparation of a return.
  Think Form 1040.
 After completing the return and reviewing it with the
  TP, have them sign their copy of the Form 8879.
  Return the Form, along with the other tax documents,
  to the TP.

 Assemble all of the documents the TP will keep, in an
  orderly manner, and place in the large envelope.

 Put their name in the upper right corner. Put your
  Station letter (as “A”) and date in the lower left hand
  corner.
                GENERAL
 Prepare your “LIST-for-E-FILE” Form.
 Do Not enter data in the shaded area of the
  Form.
 Follow the notes at the bottom of the Form.
 The “Comments” column is for such things
  as, 8453s, multi-states.
 The Form will be retained by the ERO after
  transmittal and not at the site.
                GENERAL
 All returns must be E-Filed. (Although there
  are exceptions allowed). Not wanting to is
  not one of them.

 The Tax Payer (TP) signed copy of the Form
  8879 shall be returned to the taxpayer along
  with the other printed tax forms. We will no
  longer retain the Form 8879 at our sites.
  No Tax Payer (TP) documents will be
  retained at our sites.
               GENERAL
 Sign-In-Sheet (SIS) are no longer part of
  the “Quality Review” (QR). The QR
  counselor's initials are now entered on the
  new “Prepares Use Form”, in the “Prepares
  Use Field”.
 Tax Wise major updates are on
  Computer “A”….. see the “ICON”


Be sure you see Soc Sec cards for all
 dependent children---older tax payers
 may be OK.
               GENERAL
    Proforma/Data Carryforward

 If a TP filed a return at our site last year their
  information will be on our computers. After entering
  a TPs Soc. Sec. No. TaxWise will ask to load the Tax
  Payers (TP) information.
 You will need to add/or remove forms as appropriate.
  (e.g. a change of dependents, employers, accounts,
  a spouse….etc.).
 Make a careful review to ensure that any year-to-year
  changes have been reflected, and unused
  entries/forms are not included in the new return.
 Check the Employer Identification Number
  (EIN).
              SELECTED PARTS
                        OF
                  TAX WISE
 GENERAL
                  MAIN
                  MAIN        SELECTING
GENERAL      INFORMATION
              INFORMATION                    INCOME
                                FORMS
                SCREEN
                 SCREEN

                       GENERAL
ADJUSTMENT                       FINISHING   QUALITY
              ITEMIZED
    TO                              THE      REVIEW
             DEDUCTIONS
   GROSS                          RETURN
  INCOME

             AMENDING
                 A           MISCELLANEOUS
              RETURN
MAIN INFORMATION SCREEN


Deceased use any punctuation in the
  Do not
  preparation of a return and you can no
  longer use hyphens in a TP name…….
  New in 2011

 “Name Line 2” MustJANE DOOLEYa name entered if
                   % JANEhave
                      % DOOLEY

  one of the TP (MFJ) is deceased. Enter the %
  symbol before the name.
MAIN INFORMATION SCREEN

   Occupation(s): “RETIRED” is going to
    be the DEFAULT---you will need to
    change for other occupations.

   Tax Wise is programmed to allow
    preparation of returns for States
    UT, ID, CO, AZ
MAIN INFORMATION SCREEN

 Any return where there are dependent children,
  check the EIC Box, they are assumed to qualify for
  EIC.
   TaxWise will ask questions later.
   DO NOT make a qualifying determination on
                                           x
    your own.
   The Box must be checked or Tax Wise will not
    allow the credit.

 In order to populate Form 2441 there must be a
  check in the “Dependent Care" Box (DC).
MAIN INFORMATION SCREEN



After completing the Main Information
 Screen and noting a “Blue”  check in
                             Print with
                             Completed
                             Return

 the “TREE” press Function F7 and
 review your input.
              SELECTED PARTS
                           OF
                  TAX WISE
 GENERAL
                 MAIN           SELECTING
                                SELECTING
GENERAL      INFORMATION          FORMS         INCOME
                                  FORMS
                SCREEN

                       GENERAL
ADJUSTMENT                        FINISHING     QUALITY
              ITEMIZED
    TO                               THE        REVIEW
             DEDUCTIONS
   GROSS                           RETURN
  INCOME

             AMENDING
                 A              MISCELLANEOUS
              RETURN
          FORM 1040

The next few Slides, while pictorial,
 and simplistic, are offered to
 encourage discussions concerning
 parts of the preparation of a tax
 return.
Some preparers use the order of
 Form 1040 when assembling the TP
 tax documents. (As in the “Income
 Section”)
 Form 1040
             INFO

Names, Address, SSN, Filing
Status, and Exemptions

           INCOME

Wages, Div & Int, Pensions,
Soc. Sec, Capital Gains or Losses
Total Income, etc...


      Adjusted Gross Income

Educator Expenses, penalty, IRA
Deduction, Student Loan Int.
Deduction, Alimony, etc………

             AGI
Form 1040 Page 2

           Taxable Income

Income, Exemptions, Standard
Deductions, Child Tax Credits,
Education Credits, TAX

             Payments

Tax withheld, Estimated Tax, EIC,
Additional Child Credit …….etc.


        Refund and Amount Owed

Refund, Bank Routing Numbers,
Penalty, Amount Owed.
     SELECTING FORMS
 Most forms have been added to the
  “TREE”……..To obtain other Forms go to the
  “Add Form/Display” tab and from the screen,
  type the Form Designator, such as “A” or
  “D” or “X”, and press enter.
 Sch. “B” should only be used for “Seller-
  Financed Mortgages”
 “Interest” and “Dividend” Statement screens
  should be selected from the “TREE”. Do Not
  use Sch “B” to make entries.
 Tax Exempt Income shown in Box 8 should
  be entered in the NAEOB Column with an (E)
INTEREST STATEMENT SCREEN




                            2011
              SELECTED PARTS
                       OF
                 TAX WISE
 GENERAL
                 MAIN        SELECTING
GENERAL      INFORMATION                     INCOME
                               FORMS
                SCREEN

                       GENERAL
ADJUSTMENT                       FINISHING   QUALITY
              ITEMIZED
    TO                              THE      REVIEW
             DEDUCTIONS
   GROSS                          RETURN
  INCOME

             AMENDING
                 A    MISCELLANEOUS
              RETURN
                  INCOME
 Wages, Salaries             Prizes
 Alimony                     Railroad Tier 1 (Part)
 Debts (Some 1099-C)         Railroad Tier 2
 Dividends                   Refund State Taxes
 Gambling winnings            (If itemized year paid)
 Interest                    Rents (Gross rent)
 IRA distributions           Royalties
 Jury duty fees              Social security
 Pensions                     benefits (Part)
                              Unemployment
 Capital Gains (Bracket)
 TAXABLE STATE REFUNDS (W-2G)


 TP who itemized last year and you checked
  the Box on Form 1040 “Yes”….Select the link
  on Line 10 and use the Worksheet.
 The Form from the State is W-2G.
 Just because they Itemized, may not mean
  they have a taxable event.
 If they used State Income “paid” on Sch. A
  and received a refund from the State, they
  may have a taxable event.
 The Worksheet will make that determination.
Line No. 10 Form 1040
  Taxable State Refund
                         Yes !
     FORMS W-2 AND 1099-R
 For a return to be E-filed the “TaxWise”
  Screens W-2 and 1099-R must have the
  information from the Tax Documents be
  entered exactly the same.

The paper and electronic versions must match.


 A somewhat common error is when the
  Employer Identification Number (EIN) is
  wrong. When the organization has changed
  their EIN from the previous year or it was
  entered wrong, the return will be rejected.
                  WAGES W-2

   When Boxes 1 & 2 are not the same, you need to
    correct the values in Boxes 3, 4, 5, 6 to agree with
    the W-2:

       First enter the amount shown in Box 12a with the
        Code (such as “D”) in TaxWise Box 12.

       The corrected amounts will then be automatically
        entered in Boxes 3, 4, 5, 6.

   You may have noted the value of the Soc Sec Tax
    has changed for 2011, from 6.2% to 4.2%
WAGES W-2
666-10-0001

              3200

              3700   155

              3700   54




                     D     500
Tax Wise W-2 Screen
                  INCOME
                  (Continued)

   Form 8880 “Retirement Saving Credit”
    may be generated when there is a Code “D’
    in Box 12a.
    Or when the TP as an IRA contribution.
   Tax Wise cannot determine if there were any
    withdrawals. If you can’t make that
    determination, don’t complete the return.

   “Non-Taxable Div” in Box 3 (1099-DIV) is not
    taxable and is not to be reported on the
    return. The income is a Return of Capital.
              IRA and 401k
                 Distributions

 When a TP takes distribution from their “Traditional”
  IRA there will be a Code 7 in Box 7 with a mark of an
  “x”. All is taxable.

 The “Exclusion Worksheet” at the bottom part of the
  1099-R may be used when the TP as taken money (in
  hand) and rolled the amount into a new IRA.
  Box 7 will be a Code 7. Enter the amount on
    Line 1.
 You should see a document that shows the new IRA
  account. Note dates, they have 60 days to rollover
  the distribution.
            Exclusion Worksheet
   The TP has taken money (in hand) and rolled the amount into
    a new IRA.
           IRA and 401k
               Distributions

 Some Codes are “G” (Direct Rollover),
  “Q” (Distribution from a Roth). See
  (Shift + F1) for complete list of codes.

 Box 1 of a 1099-R is not allowed to be zero in
  order to be E-filed. Adding one Dollar ($1)
  will make it work.
   RAILROAD RETIRMENT BENEFITS
                 ITEM No. 34
Form RRB-1099: Tier 1(Blue) is the
 equivalent of Soc Sec.

                       2011


                                 12,500




   Casey Jones
              RRB-1099-R
               Tier 2 (Green)
        (Like any other pension income)


                            2011




CASEY JONES
Amounts RRB-1099-R... Enter on TW 1099-R
EIN is 36-3314600        Payer ID Box
Box 3                    Box 9B & Simplified Rule
Box 4                    Not entered
Box 7                    Box 1
Box 9                    Box 4
Box 12                   Sch A Detail or 1040 WkSt
Next to Box 13           Check RR Box !!!


            States may not tax RR
              retirement income
        RRB-1099-R
            Tier 2 (Green)


                               2011
                                  2011




TW 1099-R                    RRB-1099-R
  SOCIAL SECURITY SSA-1099

 On the 1040 “Social Security Benefits” line
  select the “Link Icon” for the WrkSht and
  enter the amount shown in Box 5 of the
  SSA-1099 in the 1040 WorkSheet 1.

 You may also use this WrkSht to enter
  Medicare Parts B, C, D, which will then be
  transfer to Sch A.
  And any withholding that you enter will be
    transferred to the “Payment Section” of the
    Form 1040.
SOCIAL SECURITY SSA-1099




                      2011
        SOCIAL SECURITY SSA-1099
2011
              William T. Sherman
                                                          666-20-0001
                 2011                           2011
                                                                $13,682

Paid by check or direct deposit   $12,525.20
Medicare premiums deducted        $1,156.80     Amount for Sch A
Total Additions
Benefits for 2011                 $13,682.00




                                                       $600
                                                         $600


                                               William T. Sherman
              Watch out for this, its          101 Roman Crt.
              not common                       St. George, UT 84770
                         1099-R
     If is is empty, use the “Simplified Method”
If thisthisempty, use the “Simplified Method”




     Amount entered on the
     Amount entered on the
     “Exclusion Screen”
     “Exclusion” Screen


  Amount entered on Line 1 of
  Amount entered on Line 1 of
  the “Simplified Method”
  The “Simplified Method”
  Screen.
  Screen
                1099-R
                 Continued


 When there is an amount shown in Box 2a
  (The Taxable amount) the “payer” has
  provided you with the Taxable amount.

 There may or not be an entry in Box 5.

 Generally, the amount in Box 2a is (Box 1
  minus the amount in Box 5).
SIMPLIFIED METHOD
       Simplified Method
              (Continued)

 When you have used the “Simplified
  Method”, it will automatically transfer the
  taxable amount to page No.1 of the
  Form 1040.

 Do Not Enter the calculated amount into
  Box 2a of the “TaxWise” 1099-R.
     Exclusion Worksheet
 Generally if Box 2 is empty the amount in
  Box 5 of the 1099-R should be non-taxable
  and subtracted from Box 1.
 The Taxpayer must ascertain what amount
  should be non-taxable.
 On the “TaxWise” 1099-R Screen, enter the
  tax-exempt amount on Line 5 of the
  “Exclusion Worksheet”.
 The amount will be subtracted from Box 1
  and entered on Form 1040, line 16b.
           BOX 5 OF THE 1099-R

 Generally, this box shows the following:
   The employee's investment in the contract
    (after-tax contributions), if any, recovered tax free
    this year.
       The part of premiums paid on commercial
        annuities or insurance contracts recovered tax
        free; or
       The nontaxable part of a charitable gift annuity.
       This box does not show any IRA contributions.
 If Box 2a shows a Taxable amount, then the amount
  in Box 5 may be, Box 1 minus Box 5.
Code 3 in Box 7 is a person on disability, but
under retirement age. This makes the amount go
to Wages, Line 7 of the 1040. (They may qualify
for EIC)
    0FFICE of PERSONNEL MANAGEMENT
                  1099-R
This 1099-R annuity payment, places information     in
  a different sequence. You will need to use the
  “Simplified Method” to obtain the taxable income if
  the “Taxable Annuity” box is empty.




For Sch. A                     For “Simplified Method”
 Schedule D and Form 8949
 Schedule D: Has new reporting lines
  using Form 8949 (New in 2011)

 Form 8949 has three boxes that need to
  be completed for each sale shown
  on 1099-B.
    Box A – Cost basis shown on 1099-B
    Box B – Cost basis not shown on 1099-B
    Box C – No 1099-B received
Schedule D and Form 8949
 Schedule D and Form 8949
               (Continued)

 You must Link to and use the “Capital
  Gains or Loss Transaction WkSht” to
  enter data.
 Do Not make entries on Sch. D or
  Form 8949. Tax Wise does it for you.
 Qualified capital gains and dividends
  currently are taxed at a maximum rate of
  15 percent (zero percent for taxpayers in
  the 10 and 15 percent income tax
  brackets) Sch. D Work Sheet 1
             Schedule D
                  Carryover

 Prior year “Capital Loss Carryovers” should
  be on prior years return.
 If the TP skipped a year, they need to have a
  record of the amount.
 Make sure you include a printing of Sch. D
   WktSht 2 for next year.

 Starting this year, you should use and make
  a note on the new “Prepares Use Form” in
  the “Taxpayers Reminders” section; at the
  bottom of the screen, of any “Carryovers”.
  These notes are not transmitted with the
  return.
Taxpayers Reminders




  THIS TAXPAYER HAD A CARRYOVER
      1099-MISC INCOME
 Income shown on Form 1099-MISC can
  represent several different types.

Boxes 5, 6, 8, 10, 13, and 15b are out-of-
 scope.

We may use income from Boxes 1, 2, 3, and 7
 to prepare returns.

Copy the information exactly as show on the
 paper 1099-MISC on to “Tax Wise”.
           BUSINESS INCOME
                    Using
            Sch. C-EZ, Net Profit
            Sch. C, Profit or loss

Income from a business is generally reported
 on Form 1099-MISC
  Income that is from a sporadic activity or
   a hobby, should be reported on Form 1040,
   line 21.

If a TP is classified as a “Statutory
 Employee”, and received a Form W-2, with a
 check in Box 13, then they do not owe ‘Self-
 Employment Tax”. The income is reported on
 Form 1040, line 12.
            BUSINESS INCOME
                     Using
             Sch. C-EZ, Net Profit
             Sch. C, Profit or loss

Sch. C, Part I, including: Return allowances,
 Cost of goods sold, Depreciation, Self
 Employment etc. are out-of-scope.

Business Expenses for vehicles are to be
 calculated using the standard mileage rate.
 Actual vehicles expenses are out-of-scope.
 Parking fees may be added to the vehicle
 expenses.
            BUSINESS INCOME
                 SCHEDULE C

Business expenses using Sch. C is limited to
 $10,000.

Using Sch. C allows the return to qualify for
 “Modernized e-File”, now in Phase 3. (Faster
 refund transfer).

For Business Codes, look in the 1040
 Instructions (Section “C”).
             BUSINESS INCOME
                  SCHEDULE C
   The following are examples of expenses

 Advertising               Rent or leases
 Car and truck              (equipment)
  Expenses                  Supplies
  (Mileage only)            Taxes and Licenses
 Commissions and Fees      Travel and Meals
 Insurance                 Utilities
 Other Interest            Other expenses
                             (see Pub. 535)
 Legal and professional
  services
 Repairs and
  Maintenance
               BUSINESS INCOME
                    Schedule C-EZ

 Sch. C-EZ is for Net Profit only.
  Review the information on the top of the Form to
  determine who may use this Schedule.

 You may use the link to a “Scratch Pad” to
  accumulate and list the TP expenses. The total will
  transfer to Line 2 of the Form.

 If vehicle mileage is used as an expense, add the
  total from Part III, line 5a to the “Scratch Pad”, and
  the software will transfer the amount to Part II, line 2
  automatically.
BUSINESS INCOME
  Schedule C-EZ




                  Add to
                  Line 2
    Foreclosure, Abandonment, and
             Cancellation
       of Recourse Debt (1099-A and 1099-C)

 Foreclosure will pricereported on Form 1099-A.
                     Sale
                          be
 USA Bank
  If it is the TP principal resident, report the
  sale on Sch. D.            04/15/2011            150,000

 The Fair Market Value is the sale price.
          Jane Dooley                            100,000

 Even if the sale qualifies for Section 121               X

                             Hard Rock on
  exclusion, report the “sale”Road Sch D, and
                             St. George, UT 84770
  force the Gain to zero ($0)
 Form 1099-C: Debt forgiveness on the TP
  principal residence is Non-Taxable.
    FORECLOSER (FORM 1099-A)
             Section 121 Exclusion

Schedule D
              07/04/2011
USA Bank       50,000




              Home Mortgage loan
Jane Dooley   Hard Rock Road
              St. George, UT 84770
                                          X




                                100,000




                                              $0


                                              Loss is
                                              not
                                              allowed
                                              for a
                                              Personal
                                              Home
   FORECLOSURE/ABANDONMENT
               Recourse Debt




 If the TP is personally libel for the debt and
  the canceled debt (Form 1099-C) is more
  than the homes FMV, the amount is ordinary
  taxable income, and is reported on Form
  1040, Line 21.
 If on Form 1099-C, Box 6 is checked
  (bankruptcy), then the TP should be referred
  to a Professional Preparer.
                FORM 982
       Reduction of Tax Attributed Due to
          Discharge of Indebtedness



 Form 982 must be filed with the TP return to
  report the excluded amount.

 You only need to complete a few lines of the
  Form 982; Check “Box 1e”, and include the
  amount from Form 1099-C, Box 2, on
  Form 982, Line 2.
               SCHEDULE “E”
 Sch. E can only be used to report income when the TP
  is not in the “Business” of renting property.
 “Depreciation”: Form 4562. (Consult your Shift Supervisor)
 Even if the TP skips or leaves out depreciation amounts, the
  IRS assumes use, thereby reducing the basis.

                                          2011
             SCHEDULE K-1
                   Form 1065

 You should only enter amounts shown on the
  Sch. K-1 that show Interest and Dividends.
    Enter on the “Interest and Dividends Worksheet”.
     (Capital Gains, Qualified Dividends, and
     Royalties).
    The “Payer” is “K-1” with the Fed. ID Number.
 Other amounts shown on the Sch. K-1 are out of
  scope, but you may consult your Shift Supervisor
  for help.
 Generally you must have special training to
  complete all of the parts of Sch. K-1.
 Review the use of the “Partners & Shareholder’s
  Worksheet for K-1”
                  Sch. K-1 (Form 1065)

                           2011




Amounts to be entered in
Interest and Dividends
worksheet
This is a long and involved Worksheet



                                        2011
              SELECTED PARTS
                       OF
                 TAX WISE
 GENERAL
                 MAIN        SELECTING
GENERAL      INFORMATION                     INCOME
                               FORMS
                SCREEN

ADJUSTMENT             GENERAL
ADJUSTMENT                                   QUALITY
              ITEMIZED           FINISHING
     TO
     TO
    GROSS
   GROSS     DEDUCTIONS             THE      REVIEW
                                  RETURN
   INCOME
  INCOME

             AMENDING
                 A    MISCELLANEOUS
              RETURN
ADJUSTMENTS TO GROSS INCOME

 Educators Expenses:
  Is for eligible educators, K through 12.
 Student Loan Interest:
  The student may not take the deduction if
  they are someone else’s dependent
  exemption….even if they paid the interest.
 Tuition and Fees Deduction for students.
  Compare using Form 8863. The student
  may not take the deduction if they are
  someone else’s dependent exemption.
ADJUSTMENTS TO GROSS INCOME
            IRA DEDUCTIONS
 When a TP has or will contribute to an IRA,
  Roth or Traditional, link to the IRA
  Worksheet, from the entry point.
  There is a new Worksheet for 2011.
 Then enter the amount contributed on the
  appropriate line.

 Tax Wise will make the determination as to
  the deduction.
  IRA Worksheet




2011
              SELECTED PARTS
                       OF
                 TAX WISE
 GENERAL
                 MAIN        SELECTING
GENERAL      INFORMATION                     INCOME
                               FORMS
                SCREEN

                       GENERAL
ADJUSTMENT                                   QUALITY
              ITEMIZED           FINISHING
    TO
   GROSS     DEDUCTIONS             THE      REVIEW
                                  RETURN
  INCOME

             AMENDING
                 A          MISCELLANEOUS
              RETURN
      ITEMIZED DEDUCTIONS
                      Sch. A

 Mileage Rates for 2011 are:
      Business 51¢ (55.5¢ effective 07/01/2011)
      Medical 19¢
      Charitable 14¢
 Medical Expenses: Link to “Sch A WorkSheet”
  (Detail A) to make entries.

 Most TP will have a prepared list of their expenses.
  Review the list with them to be comfortable with their
  amounts. Remember the return is theirs, not yours.
      2011




.19
  LTC Premiums Deduction
 For 2011, the maximum amount of qualified
  long-term care premiums includible as
  medical expenses has increased on
  Schedule A (Form 1040) Itemized Deductions
  (per person)
   $ 340 - Age 40 or under

   $ 640 - Age 41 to 50

   $1,270 - Age 51 to 60

   $3,390 - Age 61 to 70

   $4,240 - Age 71 and over
      ITEMIZED DEDUCTIONS
                      Sch. A
 Most TP pay their State Income Tax from the prior
  year in the tax year you are preparing. Be sure to
  include this amount.
 Non-cash Charitable deductions less than $500 is
  generally our limit.
  For those items that have real value, you may use
    Form 8283, Section A, Part 1, with a limit of $5000.
    The VIN is now required to be included for the
    contribution of motor vehicles, using Form 1098C.

  Review this early in the preparation of the return.
Non-business Energy Property Credit

 This credit has been extended for 1 year with a
  reduced rate of 10%. A total combined credit limit of
  $500 (Form 5695, part I); a combined credit of $200
  for windows for all the amount of your tax years
  after 2005.
 A maximum credit for residential energy property
  costs of $50 for advanced main air circulating fan;
  $150 for any qualified natural gas, propane, or oil
  furnace, or hot water boiler; and $300 for “any item
  of energy-efficient property”.
 Amounts provided by subsidized federal, state, or
  local energy financing do not qualify for the credit.
ENERGY CREDITS
              SELECTED PARTS
                       OF
                 TAX WISE
 GENERAL
                 MAIN        SELECTING
GENERAL      INFORMATION                     INCOME
                               FORMS
                SCREEN

                       GENERAL
ADJUSTMENT                                   QUALITY
              ITEMIZED           FINISHING
                                 FINISHING
    TO
             DEDUCTIONS             THE
                                     THE     REVIEW
   GROSS
                                  RETURN
                                  RETURN
  INCOME

             AMENDING
                 A          MISCELLANCES
              RETURN
        FINISHING THE RETURN
          Checking Withholding
      Payment Section Page 2 of the 1040

 To review the amounts withheld from the Tax
  Documents, Right click on the Withholding
  line, “Payments Section” Form 1040, select
  the Link, and see the list showing the
  amounts.

 Check the amounts against the Tax
  Documents..
     FINISHING THE RETURN
 Comparing “MFJ vs. MFS”: The form is
  on the Tree. Review “Tax Wise Usage”
  instructions. The procedure may be very
  time consuming, don’t make others wait
  for the sake of MFS reviews.

 “First-Time Home Buyers” of a home in
  2008 received a credit that was a interest
  free loan, and must be repaid over 15
  years in 15 equal payments, Form 5405
  ($500 for most).
       FINISHING THE RETURN
   Be sure and ask the TP if they paid “Estimated
    Advanced Tax Payments”.


                 Payments




2011                            2010
FINISHING THE RETURN

            Encourage direct
            deposit
            of refunds.

            Form 8888 allows
            refunds to be divided
            into different accounts.


            See a blank check for
            Account numbers.
FINISHING THE RETURN
            If a Tax payer can’t pay
             what's owed.
            Suggest they pay what
             they can and the IRS
             will bill them for the
             rest.
            The important part is to
             file the return.
            Installment agreement
             is Form 9465.
            You May check Form
             2210 page 1.
   FINISHING THE RETURN

 After you have reviewed the
  “Diagnostic Screen” (Ctrl + D) and Pressed
  “E-file” and then you go back into the return,
  for any reason, remember to “click the
  “E-file” button again.

 Do Not print the return before you press the
  E-file button.

Never leave a red mark in the “Tree” 
              SELECTED PARTS
                       OF
                 TAX WISE
 GENERAL
                 MAIN        SELECTING
GENERAL      INFORMATION                     INCOME
                               FORMS
                SCREEN

                       GENERAL
ADJUSTMENT                                   QUALITY
              ITEMIZED           FINISHING   QUALITY
    TO
   GROSS     DEDUCTIONS             THE      REVIEW
                                             REVIEW
                                  RETURN
  INCOME

             AMENDING
                 A    MISCELLANEOUS
              RETURN
        QUALITY REVIEW

On-Site Quality Review is a mandatory
 part of our quality control.

It is important to review the return with
 the Tax Payer.

Before handing the return over to the
 QR counselor, as a minimum review:
             QUALITY REVIEW
          Taxpayers (and Spouse, if MFJ)

 Name(s): Check spelling. Show return to TP
  and ask if Name(s) and SSN(s) are correct.
  Check correct last name of any Dependents.

 SSN(s): Check the order of SSN(s), TP then
  Spouse.
 Address: Review with the Tax Documents.

 Filing Status: Question the Status with the
  Tax Payer.
 See & Review: The “Intake and Interview”
  Form.
              SELECTED PARTS
                       OF
                 TAX WISE
 GENERAL
                 MAIN        SELECTING
GENERAL      INFORMATION                     INCOME
                               FORMS
                SCREEN

                       GENERAL
ADJUSTMENT                                   QUALITY
              ITEMIZED           FINISHING
    TO
   GROSS     DEDUCTIONS             THE      REVIEW
                                  RETURN
  INCOME

             AMENDING
             AMENDING
                 A
                 A          MISCELLANEOUS
              RETURN
              RETURN
           AMENDED RETURNS
 It has been our practice to ask the TP to delay
  filing a Form 1040X until they have received their
  refund or made their payment. The reaction time
  with the IRS seems better.
 First mark the State return, select “Amending”.
 Now open the 1040X and check the override box,
  column “A” will be frozen.
 Then make the necessary changes in the original
  return.
 For returns from prior year, we have the past two
  years on some computers. Check to see if the
  default printer is the same as the original.
 Forms 1040X may not be E-filed.
              SELECTED PARTS
                       OF
                 TAX WISE
 GENERAL
                 MAIN        SELECTING
GENERAL      INFORMATION                     INCOME
                               FORMS
                SCREEN

                       GENERAL
ADJUSTMENT                                   QUALITY
              ITEMIZED           FINISHING
    TO
   GROSS     DEDUCTIONS             THE      REVIEW
                                  RETURN
  INCOME

             AMENDING
                 A          MISCELLANEOUS
                            MISCELLANEOUS
              RETURN
             MISCELLANEOUS


 Bank routing numbers: Always try to see a
  blank check in order to get the correct
  number for electronic deposits.

 Scratch Pads: You can use Scratch Pads
  when you want to include supporting data for
  any entry. The “Scratch Pad” provides
  description and amount entries, with totals at
  the bottom of the form. Press F9 at entry.
         FUNCTION KEYS

 F1 Tax Wise help, for IRS help use Shift + F1
 F3 Takes the Red out or puts it in.
 F5 Calculator, press “Enter” transfers the total to
      line item, “Esc” closes calculator.
 F8 Overrides entry (request permission to use).
 F9 Links, so does icon at “entry” point
 Ctrl + Y Enter SSN, locate, and open a return.
 Ctrl + E Move to the next require “entry” (red).
 Ctrl + C (Copy)     Ctrl + V (paste)
      LAST TRAINING TIP


                     ♫

Never try to teach a pig to sing…..Its a
 waste of your time and it annoys the
 pig !
“HAPPY DAYS
  ARE HERE
      AGAIN”

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:5/19/2012
language:
pages:102
fanzhongqing fanzhongqing http://
About