Campus Fellow Summary Chart

Transcription

1 Campus Fellow Summary Chart

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3 Line Description Taxpayer s Forms Directions Instructions and Special Notes 1-5 Filing Status Social Security Cards (or SSA-1099, SS letter, ITIN) Choose filing status in interview Ø Try to avoid using MFS (and if one spouse itemizes, the other has to as well) Ø If spouse died in 2015 à MFJ Ø If spouse died in 2014/2013 à QW 6 Dependents List and Total Number of Exemptions 7 Wages, Salaries Social Security Cards; Possibly Form 8332 W-2 Type in taxpayer, spouse and dependent information in interview; Start with QC Chart Link: Line 7 àw2 Ø If spouse died in 2012 or earlier à S or HoH Ø Custodial Parent: HoH, EIC and Child/Dependent Care Benefits Ø Noncustodial Parent: Dependency exemption and Child Tax Credit Ø Check taxpayer or spouse at top Ø Make sure to type in all information exactly as you see it on the W-2 Ø If the address is different than the one on the main info page, check the box at the top to make changes (MUST MATCH W-2 EXACTLY) Ø Calculations on lines 3, 4, 5, 6 and 16 automatically fill in, so click the box at the top of the W-2 if you need to enter in different numbers than appear. Ø If Box 12, 13 (retirement plan) or 14 is filled in, check to see if qualify for Retirement Savings Contribution Credit Ø If Box 7 of 1099-R has Code 3 and it is received before retirement age, treat as wages (Link: Line 7 à 1099R). Disability Pension Income W-2 or 1099-R Ø Unreported tips: enter on Line 4 Ø Unreported tips <$20/month: enter on Line 5 Ø Note: you may need to override entries Tips Scholarships Household Employee Income 8 Interest 1099-INT or 1099-OID Link: Line 7 à 4137 (unreported tips) Link: Line 7 à W2 OR Link: Line 7 à 1040 Wkt 1 Link: Line 7 à 1040 Wkt 1 Link: Line 8a à Sch B à lb à Interest Stmt Ø Taxable amounts of scholarships and fellowships include payment for services and money used for personal living expenses (room and board) Ø If taxpayer received a W2 for the scholarship or fellowship, include the amount on line 7 (just like any other W-2). Ø If taxpayer did not receive a W2, input the amount on the line Scholarship Income no W2. The amount should transfer to line 7 and the box SSHIP should be checked. Ø If household employee earns less than $1,700 a year, employer is not required to issue W2 but the amount must be entered on line 7. Ø Fill in the payer and Box 1 or 3 amount Ø Fill in any other information such as early penalty or federal withholding Ø Make sure if you put in early penalty that it carried over to Line 30 of

4 9 Dividends 1099-DIV Link: Line 9a à Sch B à 5a à Dividend Stmt Box Under Line State Tax Refund 10 Taxable Refunds, Credits or Offsets of State and Local Income Taxes 1099-G, 2013 Federal and State Tax Return 1099-G, 2014 Federal and State Tax Return Answer question: - No: check no - Yes: see line 10 Link: Line 10 à St Tax Refund 11 Alimony Divorce Agreement Enter amount of alimony received on line Business Income Link: Line 12 à Sch C OR (PROFIT ONLY) Link: Line 12 à Sch C-EZ 1099-MISC (Box 7), W-2 (Statutory Employee), Personal records or 1099-K THEN, Link: Line 1 Gross Receipts à 1099-MISC or Scratch Pad (for W-2, 1099-K, cash payments or personal records) Sch C-EZ: simplified version for up to $5,000 in business expenses Sch C: use for business expenses between $5,000 and $10,000 Make sure to check the Statutory employees box at the bottom of the W-2! the 1040 Ø If the interest is tax exempt, enter the following: o NAEOB: Enter E o NAEOB Amount: Enter amount from Box 8 of 1099-INT Ø Fill in payer and any information such as ordinary dividends, qualified dividends, capital gain or federal withheld Ø Make sure if you put in a capital gain that it carried over to Line 13 of the 1040 Ø Line 1: Enter AL and state refund amount Ø Line 2: Sch A, line 5a, income taxes Ø Line 2: Sch A, line 5b, general sales tax Ø Line 6: Total itemized deductions Ø Line 7: Filing status Ø Line 12: Taxable income amount Ø If a taxpayer does not have a copy of the previous year s return, Link: Line 10 à Scratch Pad and enter the full amount of the state tax refund. Ø Do not need Social Security number Ø Schedule C: o Enter in business information 1: Gross receipts income reported on 1099-MISC with Box 7, W-2 if the Statutory Employee box is checked, 1099-K or cash payments 8-27: Qualified business expenses 43-47: Enter in vehicle information Part V: Ordinary and necessary expenses not deducted elsewhere on Sch C Ø Schedule C-EZ (simplified version): o Enter in business information 1: Gross receipts income reported on 1099-MISC with Box 7, W-2 if the Statutory Employee box is checked, 1099-K or cash payments 2: Total expenses (link to a Scratch Pad) 3: TaxWise calculates the net profit 4-8: Enter in vehicle information and make sure to enter in mileage expense on Line 2 by adding it to the Scratch Pad!

5 15a 16a IRA Distributions Pensions and Annuities 19 Unemployment Compensation 20a Social Security Benefits 1099-R 1099-R, CSA-1099R and possibly W-2 if Disability Pension Income Link: Line 15a à 1099R (if IRA Box is checked) Traditional IRAs only; SEP and SIMPLE Plans are out of scope! Link: Line 16a à 1099R (if IRA Box is NOT checked) Ø If 1099-R is a Defined Benefits Plan, click Box 1 on the bottom of the 1099-R. Ø If Box 7 has code 3: o If received before retirement age, treat as wages (Link: Line 7 à 1099R) and make sure to click: Check if disability and taxpayer is disabled OR Link: Line 7 à W2 o If received after retirement age, treat as retirement (Link: Line 15/16 à 1099R) Ø If Box 7 has code G, enter the amount rolled over on Line 1 of the Exclusion Worksheet on the 1099-R. o Then, check the Box and type F9 on the 1040 Pg 1. o Provide an explanation on the IRA Rollover worksheet G Link: Line 19 à 1099 G Wkt Ø Fill in all information on 1099-G SSA-1099 or RRB-1099 Link: Line 20a à 1040 Wkt1 Ø If taxpayer has other forms of income, link to the 1040 Wkt1. Ø If no other source of income, consult Chart on A-1 (might not need to file). Ø Fill in the form as follows for SSA-1099: o SS received this year: Enter Box 5 o Medicare Parts B, C and D: Add Parts B, C, D o Federal tax withheld: Enter Box 6 21 Other Income (Gambling) W2-G Link: Line 21 à 1040 Wkt7 à W2-G (or just enter amount on line 1) Ø Fill in the form as follows for RRB-1099: o Railroad received this year: Enter Box 5 o Medicare Parts B, C and D: Enter Box 11 o Federal tax withheld: Enter Box 10 Ø Fill in all information on W2-G Ø Amount will carry over to the 1040 Wkt7 and line 21 on the 1040 Ø Make sure to enter any gambling losses Other Income (Prizes & Awards) 1099-MISC Link: Line 21 à 1040 Wkt7 à 1099-MISC (or just enter amount from box 3 on line 2) Ø Enter amount from Box 3 to line 2 of the 1099-MISC Ø Enter amount to line 14 Ø If jury duty pay is given to employer, record on line 35 of 1040 Other Income (Jury Jury duty statement Duty Pay) Link: Line 21 à 1040 Wkt7 23 Educator Expenses Receipts up to $250 Link: Line 23 à 1040 Wkt2 Ø Enter qualified expenses up to $250 for taxpayer and spouse(if eligible) who work K-12 for up to 900 hours Ø Enter expenses >$250 on A Detail if itemizing deductions. 27 Deducible Part of Fill out Sch C or Sch TW Calculates Self-Employment Tax C-EZ 30 Penalty on Early 1099-INT or TW Calculates (if entered on

6 Withdrawal of OID Interest Statement) Savings 31 Alimony Paid Recipient s SSN Enter total paid for whole year and recipient s SSN 32 IRA Deduction Link: Line 32 à IRA Wkt Ø Do NOT enter more than $5,500 ($6,500 if age 50 or older) for taxpayer or spouse. Ø Deduction also cannot exceed compensation. Ø Contribution must be to a traditional IRA. 33 Student Loan Interest Deduction 1098-E Link: Line 33 à 1040 Wkt2 Ø Up to $2,500 of interest paid on loan for tuition in name of taxpayer, spouse or dependent (when the loan was obtained) Ø Qualified expenses include tuition and fees required for enrollment, 34 Tuition and Fees Deduction room and board, transportation, books, and supplies 1098-T Link: Line 34 à 1040 Wkt2 Ø Tuition can be entered as an adjustment or credit à check both for better refund. Ø Can deduct up to $4,000 for taxpayer, spouse or dependent for qualified tuition and related expenses; NOT books. Ø Subtract amounts paid with scholarships and grants. 35 Jury Duty Pay (given to employer) 37/38 AGI TW Calculates 40 Standard Deduction Receipts and possibly or Itemized 1098 Deductions Enter amount of jury duty given to employer on Line 35 TW Calculates Standard Deduction Check to see if Itemized Deductions are more advantageous if taxpayer has a large number of medical bills and home mortgage payments Ø Check to see if Itemized Deductions are more advantageous if taxpayer has a large number of medical bills and home mortgage payments Ø Unreimbursed Medical Expenses: A Detail o Medical miles o Insurance premiums paid o Medicare (from 1040 Wkt1) o Other medical expenses: prescriptions, glasses, etc. Ø Charitable Contributions: A Detail o Charitable miles o Charitable cash contributions o Uniforms required for service o FMV of other than cash contributions Ø Taxes: Sch A o Line 5: Link from 5b à Sales Tax. Then enter state, local sales tax (if applicable) and state sales tax (if applicable) o Line 6: City/county real estate taxes o Line 7: Personal property taxes o Line 8: Ad valorem tax (subtract amount of actual tag) Ø Home Mortgage Interest (from 1098): Sch A o Line 10: Home mortgage interest/points

7 o Line 13: Mortgage insurance premiums Ø Miscellaneous Deductions: Sch A o Line 21: Employment (job travel, union dues, work uniform, job education, literary journal for work, educator expenses) o Line 22: Tax preparation fees o Line 23: Safe deposit box o Line 28: Miscellaneous (literary journal not from work, gambling losses from W2-G) 42 Exemptions TW Calculates Ø $3,900 for taxpayer, spouse and each dependent exemption 48 Foreign Tax Credit 1099-DIV (Box 6) Enter the amount from Box 6 Ø Foreign tax paid >$300 is out of scope! on Line Credit for Child and Dependent Care Expenses No forms, but need EIN or SSN of child care center/person Link: Line 48 à 2441 Ø Make sure to check the box in the interview Ø Fill in Part I: 1a 1d Ø Fill in Part II: 2a 2c (and split the total amount if expenses were for more than one child) Ø Qualifying children must be under 13 or incapable of care Ø Expenses must be for when taxpayer was working or looking for work Ø If Box 10 of W2 was filled in, form 2441 must be filled out 50 Education Credits 1098-T Link: Line 49 à 8863 Pg1 Ø Tuition can be entered as an adjustment or credit à check both for better refund. Ø Subtract amounts paid with scholarships and grants. Ø Both the AO and LL Credits cannot be claimed for the same expenses. Ø American Opportunity Credit: available for 4 years while pursuing degree, at least half-time enrolled, no felony, and includes tuition, fees and required course materials. Ø Lifetime Learning Credit: available for all years, does not need to be pursuing degree, available for one/more courses, if felony can still receive, and includes only tuition/fees. 51 Retirement Savings Contribution Credit Box 12, Retirement Plan Box checked in Box 13, Box 14 or Taxpayer tells you he/she has contributed to a plan Link: Line 50 à 8880 Ø Check qualifications if Box 12 has a code D or E OR if Box 13 has retirement plan checked Ø If Box 14 of W-2 has a code or if taxpayer has contributed to a plan, see site coordinator manual. Ø On the 8880 form: Ø Check correct full-time student box Ø On Line 4, enter the amount of early distributions OR enter F3 if none were made 52 Child Tax Credit TW Calculates Ø Credit for each qualifying child under Residential Energy Link: Line 52 à 5695 Pg 1 Credits (then click on Pg 2) Qualified energy efficient improvements to main home Ø Part I is out of scope, but Part II is in scope! Ø There are limits for each credit as well as a combined credit limit of $500. Ø Fill in 17 a, b and c Ø Line 20: Enter any amounts claimed since 2005 Ø Line 18: Enter in any amounts claimed in previous years Ø Line 29 (Qualified energy efficiency improvements): do NOT include

8 57 Self-Employment Tax Fill out Sch C or Sch C-EZ first 58 Social Fill out Form 4137 Security/Medicare first Tax from Form Health Care: Individual Responsibility 64 Federal Income Tax Withheld 65 Estimated Tax Payments ACA Supplement Form, 1095-A, B, 1095-C Check all income documents Check previous year return TW Calculates TW Calculates Link: line 61 à ACA Wkst TW Calculates (CHECK THIS) Enter amount of 2014 estimated tax payments and amount applied from 2013 return the cost of on-site preparation and installation for insulation, exterior doors, metal/asphalt roof, exterior windows/skylights. Ø Line 22 (Residential energy property costs): do include the cost of onsite preparation and installation for energy efficient heating and air conditioning systems, furnace or hot water boiler, main air circulating fan used in natural gas, propane or oil furnace Ø Taxpayers must always file if they have self-employment income >$400! Ø For each individual on the return, select o Full: if individual had MEC all year o Check the box for each month individual did not have MEC or a health coverage exemption o Mkt: if a taxpayer purchased coverage from the ACA marketplace o Exm: if individual is applying for an exemption (only check the months the individual is not covered by exemption, if any) 66a Earned Income Credit Fill out red lines on Sch EIC and Sch EIC Wkt and check if each dependent is a qualifying child for the EIC 67 Additional Child Tax Credit TW Calculates 69 Premium Tax Credit 1095-A Link: line 69 à 8962 Ø This is a very IMPORTANT CREDIT! Ø Make sure to check box in interview if the EIC was disallowed. In advanced training, we will learn about the additional form that needs to be filled out. Ø Recipients can no longer receive Advance EIC payments. Ø Refundable portion of the Child Tax Credit Ø Must have at least $3,000 of earned income Ø If a taxpayer purchased health coverage from the ACA marketplace, they may be eligible for a premium tax credit Ø Make sure Mkt is checked for the individual on ACA Wkst Ø On Form 8962, choose Other 48 states and DC on line 4 for federal poverty line Ø Check line 6 to see if individual qualifies Ø If they qualify, complete part 2 using information from 1095-A

9 76 Amount to Be Refunded 78 Amount You Owe 79 Estimated Tax Penalty OUT OF SCOPE! Add Form 8888 of taxpayer wants to invest in savings bonds Ø Add Form 8888 in the Loaded Forms Menu Ø Fill out Part II with the recipient(s) name and amount first. Ø Then fill out either Part I or Part III Ø Subtract amount of bonds purchased from total refund to get the allocation (Line 8 must equal Federal Refund) Ø If savings bonds, only fill in bank info on 8888 Ø If no savings bonds, fill in bank info on main info page and on Line 74 Ø If taxpayers owe an estimated tax penalty and Form 2210 appears, leave the form alone. Ø Hint: Line 9 should be zero Ø Then advise taxpayer to call or visit IRS office to discuss payment. Payment Options Ø Payment options: 1. Electronic funds withdrawal 2. EFTPS: free system that allows tax payments by phone or online ( or ) 3. Credit card: make tax payments on American Express, Discover, MasterCard or VISA (convenience fee charged by service provider) 4. Check or money order: make check payable to "United States Treasury and submit along with 1040-V (Payment Voucher) 5. Full pay within 60 or 120 agreement: get up to 120 days to make full payment; no user fee charged 6. Form 9465, Installment Agreement Request: make payments on a monthly schedule; user fee charged ($105 or $52 if direct debit from bank account) 7. Online Payment Agreement (OPA): taxpayer can request a pre-assessment installment agreement on current liabilities ( search OPA) Ø Advise taxpayers to pay as much as possible by filing deadline to reduce interest and penalties. Ø If taxpayers have a small amount of withholding, advise them to increase withholdings with employer using a Form W-4. Ø - If taxpayers owe at least $1,000, taxpayers must make estimated tax payments. ETS is reported on a Form 2210, but is OUT OF SCOPE! Make sure Line 9 of Form 2210 is $0. Inform taxpayers that they will receive a notice from the IRS that figures the penalty.