Filing Basics

							                                             4491-03 Filing Basics v1.0 VO.ppt




                Filing Basics

             Pub 4012 Tabs A, 1, 14
             Pub 17 Intro, Chapter 1


                                              LEVEL 2 TOPIC
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Need To Know
 Filing status, age & marital situation
 Is taxpayer a dependent? Blind?
 All sources of income
 Excluded or exempt income
 Whether TP received advanced Earned
  Income Credit (EIC)?
 Any withholding or estimated taxes paid
 Any carry-forward capital losses

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Where To Get T/P Info
 Intake Sheet


 Tax Documents


 Prior Year Return




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Principal Sources Of Income
 Salaries/Wages


 Interest and Dividends


 Sale of Securities-1099B


 Pensions/IRA Distributions


 Social Security Benefits
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Filing Requirements
(See Pub 4012 Tab A)




 Pub 4012: Page A-1




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Filing Requirements
(See Pub 4012 Tab A)




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Pub 4012, Tab A
Chart A - Footnotes
 If TP turns 65 on Jan 1 of next year considered 65
  for prior year
 When using chart, do NOT include social security
  benefits unless:
            You are married filing a separate return and you lived
             with your spouse at any time during the year, or
            One-half of your social security benefits plus you other
             gross income is more than $25,000 ($32,000 if MFJ)
 MFJ not living with spouse at end of year and had
     gross income of $3,650 or more, must file
     regardless of age

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Also Must File If
 Over $400 of net self employment income


 Received advance EIC – from W2 box 9


 Owe special taxes (unreported tips,
     household employment, etc)



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Children & Other Dependents
 Pub 4012: Page A-2
 Must File
   Single dependents under 65 with
    unearned income over $950 and/or
    earned income over $5,700
   Married dependents - 65 or older or blind
                See Pub 4012 Tab A



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Who Should File
 Pub 4012: Page A-3

 Claiming refund of withheld taxes or
  estimated taxes paid
 Claiming earned income credit
 Claiming additional child tax credit
 If TP received 1099B, Sale of Capital Assets



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When Not To File NJ
 Not a resident (for tax purposes) of New Jersey
   Adjust State Return box on Main Info screen



 Do not file NJ 1040 return if ALL of the following
     conditions exist:
                 Homeowner (not a Tenant)
                 Income below filing threshold
                 No withholdings to be refunded
                 Not eligible for Earned Income Credit (EIC)
            Click NO on box “Do You Want To Electronically File
             This Return”, page 3 of NJ return
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MUST/SHOULD FILE QUIZ #1

 Miranda, 17, claimed on her parents’ return
 W-2 shows $2000 in wages and federal tax
  withheld of $155
 Grandparents gave her a $3000 CD as a gift
 She has no other income
 Must or should Miranda file?
                Should: to get back her withholding
                CD is a gift – not counted in income

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MUST/SHOULD FILE QUIZ #2

 Kathy, 22, attends college full time
 Earned $850 babysitting and had $3000
   reported on a W-2; no tax was withheld.
 Must or should Kathy file?

                Must: had >$400 in self-employment.
     If only W-2, would not have needed to file.

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