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AARP Tax Aide Scope

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					   AARP Tax-Aide Scope

What's Out
What's In




                                               1
         NY3 Instructor Training Albany 2009
              Out of Scope

   Schedule C (Business Profit and Loss)
   Complicated/Lengthy Schedule D
      (Capital Gains and Losses)
   Schedule E (Rental Property, Royalties,
    Partnerships, and Trusts that involve
    depreciation)




                                                     2
               NY3 Instructor Training Albany 2009
        Out of Scope (Con't)

FORM:
   2106 (Employee Business Expense)
   3903 (Moving Expenses)
   8615 (Minor’s Investment Income)
   8606 (Nondeductible IRA) when taking
    distribution
   Schedule K-1’s other than interest and
    dividends


                                                     3
               NY3 Instructor Training Albany 2009
                 In Scope
FORM:
· 1040EZ
· 1040A with Schedules 1, 2, 3 and EIC
· 1040 with Schedules A, B, C-EZ, EIC, R
· Simple Schedule D
· Schedule E (Oil & Gas Leases or Royalties)
  payments reported on 1099-Misc, that do
  not involve depreciation, depletion, or any
  other expenses against that income

                                                    4
              NY3 Instructor Training Albany 2009
                 In Scope
· 1099 Misc (box 7 nonemployee comp
    reported on Schedule CEZ)
· 1099Misc (box 1, 2 or 3 - rents, royalties,
    or other income with no expenses) -
    reported on Line 21 – Other Income
•   8606 to record Non-deductible IRA
    contribution




                                                    5
              NY3 Instructor Training Albany 2009
               In Scope
· 1040-V
· 1040-ES (Estimated Payments)
· 2106-EZ (Employee Business
  Expense)
· 2441 (Child & Dependent Care)
· 8283, Section A, Part 1 – non-cash
  contributions to charity exceed $500
  but less than $5000

                                                  6
            NY3 Instructor Training Albany 2009
                 In Scope
·   8880 (Qualified Savings Credit)
·   8812 (Additional Child Tax Credit)
·   8863 (Education Credits)
·   9465 (Installment Agreement)
·   8379 (Injured Spouse)
·   1040X (if trained)



                                                    7
              NY3 Instructor Training Albany 2009
                In Scope
· Limited Schedule K-1 that provides
information only for Schedule B or D (if
trained)
· Contributions to Charities from an IRA




                                                   8
             NY3 Instructor Training Albany 2009
          In Scope (Con't)

• Schedule E (Oil & Gas Leases or Royalties)
payments reported on 1099-Misc, that do not
involve
  – depreciation
  – depletion
  – any other expenses against that income




                                                      9
                NY3 Instructor Training Albany 2009
    “Refer to Professional Tax
            Preparer”
•   Sale of home when non-qualified
    use
•   Energy Credit – Solar,
    WindTurbine, Geothermal
•   Farm Income
•   Under 18 with investment income
    > $1,900
•   Coverdell or 529 funds not used
    for education Training Albany 2009
             NY3 Instructor
                                       10
    “Refer to Professional Tax
            Preparer”
•   Alimony paid under divorce
    agreement pre 1985
•   C-EZ – wants to or has used
    actual expenses
•   Sale of other than stocks, mutual
    funds, personal residence
•   Tax payer doesn't know basis of
    stock
                                                  11
            NY3 Instructor Training Albany 2009
    “Refer to Professional Tax
            Preparer”
•   In kind exchanges, wash sales,
    worthless securities
•   Sale of home – reduced exclusion
•   Sale of home used as business or
    rental income after May 6, 1997
•   Determining adjusted basis of
    gifted property

                                                  12
            NY3 Instructor Training Albany 2009
    “Refer to Professional Tax
            Preparer”
•   Cancellation of debt due to
    bankruptcy
•   Non-deductible contributions to
    IRA
•   If taxpayer has used General Rule
    in past to determine taxable
    portion of pension
•   Lump sum pension distribution
    spread over previous years
             NY3 Instructor Training Albany 2009
                                                 13
    “Refer to Professional Tax
            Preparer”
•   Casualty & Theft Loss
•   Charitable contributions > 20% of
    AGI
•   Form 8283 non-cash
    contributions > $500
•   Household employment taxes


                                                  14
            NY3 Instructor Training Albany 2009
          REMEMBER

To prepare an accurate return,
AARP Tax Counselors can
 determine if a return is too
 complicated
  or outside the scope of their
 training



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          NY3 Instructor Training Albany 2009

				
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posted:10/14/2011
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