LINE 13 CAPITAL GAIN AND LOSSES (SCHEDULE D) LINE 16 PENSIONS AND ANNUITIES LINE 17 RENTAL REAL ESTATE, ROYALTIES LINE 20 SOCIAL SECURITY BENEFITS

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1 LINE 13 CAPITAL GAIN AND LOSSES (SCHEDULE D) LINE 15 IRA DISTRIBUTIONS LINE 16 PENSIONS AND ANNUITIES LINE 17 RENTAL REAL ESTATE, ROYALTIES LINE 19 UNEMPLOYMENT LINE 20 SOCIAL SECURITY BENEFITS LINE 21 OTHER

2 PUB 4012 D-22 TAXSLAYER PRO: INCOME (ENTER MYSELF) SCHEDULE D CAPITAL GAINS CAPITAL GAINS AND LOSS ITEMS ADDITIONAL CAPITAL GAINS DISTRIBUTIONS OTHER CAPITAL GAINS DATA (LOSS CARRYOVER) SALE OF MAIN HOME WORKSHEET

3 Sample Brokerage 1099-B Format varies by brokerage firm Brokers may present transactions subtotaled based on 1099 code 3 NTTC Training TY2017

4 Summarize Broker Transactions per Pub 4012 Tab D Divide the transactions: Short term Basis reported to the IRS Box A Short term Basis not reported to the IRS Box B Long term Basis reported to the IRS Box D Long term Basis not reported to the IRS Box E 4 NTTC Training TY2017

5 Capital Gains in TaxSlayer Navigation: Federal>Income>Capital Gains and Loses 5 NTTC Training TY2017

6 TaxSlayer Input 6 NTTC Training TY2017

7 Computing Loss Carryovers Look at 2016 Sch D Lines 7 and 15 Example here $500 and $6,900 7 NTTC Training TY2017

8 Carryover Input Navigation: Federal>Income>Capital Gains and Loses>Other Capital Gains Data Enter long and short term loss carryover from Prior year return 8 NTTC Training TY2017

9 Sale of Main Home Worksheet Federal Section>Income>Capital Gains 9 NTTC Training TY2017

10 SALE OF PRINCIPAL RESIDENCE - LIU In scope but seldom seen look it up PUB 4012 D-28

11 Traditional IRA Distributions Box 2a automatically populates with the value entered in Box 1. You must change the entry to the correct taxable amount based on review of the 1099-R and interview with the taxpayer 11 NTTC Training TY2017

12 1099-R What is this form telling you? NTTC Training TY2017

13 Pension Distributions Reported on Forms 1099-R company plans/annuities RRB-1099-R (green) Railroad Benefit CSA-1099-R civil service, government 13 NTTC Training TY2017

14 Form 1099-R What is this form telling you? NTTC Training TY2017

15 DOES LAST YEAR S TAX RETURN SHOW TAXABLE AMOUNT? YES? USE IT! NO? SIMPLIFIED GENERAL RULE

16 Simplified Method Information Needed To calculate you will need: Gross distribution amount (from 1099-R Box 1) Cost in plan (Box 9b Form 1099-R and CSA 1099-R or Box 3 RRB-1099R) Annuity Start Date* Relies on good interview if the spouse receives the annuity and does not remember the start date * If taxpayer did not start receiving annuity before he or she died then the date the spouse starts drawing the annuity is used 16 NTTC Training TY2017

17 Simplified Method Information Needed And: Age Taxpayer s age on date annuity began* Spouse s age if joint/survivor annuity is selected Note if annuity starting date is before or after taxpayer s birthday for that year Amounts previously recovered Number of months paid in previous tax years * If taxpayer did not start receiving annuity before he or she died 17 NTTC Training TY2017 then the spouse s age when started drawing the annuity is used

18 REQUIRED MINIMUM DISTRIBUTIONS (RMD) PENALTIES FOR EARLY WITHDRAWAL [CODE 1] EXCEPTIONS? FORM 5329 RRB-1099-R (RAILROAD) PUB 4012 D-26 LIU

19 LINE 17 RENTAL REAL ESTATE, ROYALTIES FORM 1099-MISC BOX 1 RENTS BOX 2 ROYALTIES NOTE: BOX 7 NONEMPLOYEE COMPENSATION SCHEDULE C SELF-EMPLOYMENT

20 Unemployment Compensation Choose Unemployment from Income area or add 1099-G to Quick File NTTC Training - TY2017

21 NTTC Training - TY2017

22 Form SSA NTTC Training TY2017

23 Add SS Income To TaxSlayer 23 NTTC Training TY2017

24 NOTE: FOREIGN SOCIAL SECURITY CANADA, GERMANY IN SCOPE ADD TO SS & CREATE A NOTE MUST ADJUST CA INCOME MANUALLY

25 LINE 21 OTHER - PUB 1040 D-53 GAMBLING WINNINGS JURY DUTY PAY CANCELLATION OF CREDIT CARD DEBT K-1 LIMITED IN SCOPE LIU PUB 1040 D-54

26 INCOME FORM 1040 LINES 7-21

27 Income [ENTER MYSELF] TaxSlayer Federal section>>income

28 Income (wages) Line 7 Wages, salaries, tips, etc. PUB 4012 D-4, D-5, D-6 TaxSlayer Federal section>>income>>wages and salaries

29 Income (wages)

30 Income (wages) W-2 key what you see EIN must be correct! Autofill? Correct, as needed. CA-SDI box 14; Employer s state ID number blank? Enter six-nines (999999).

31 Income (ROSEVILLE) In Home Health Services W-2 Roseville W-2 AKA Medicaid Waiver Payments If care-giver and recipient live together, income is non-taxable and must be adjusted. See Pub 4012 D-62

32 ENTER W-2 Income (ROSEVILLE) INCOME>>LESS COMMON INCOME>>OTHER INCOME NOT REPORTED ELSEWHERE NOTICE NEGATIVE AMOUNT >>OTHER COMPENSATION>>PRISONER EARNED INCOME POSITIVE AMOUNT

33 Income (interest) Line 8a Taxable interest Line 8b Tax-exempt interest TaxSlayer Federal section>>income>>interest PUB 4012 D-7, D-8, D-9

34 1099-INT Income (interest)

35 TaxSlayer Income (interest)

36 Income (interest) US Savings Bonds interest is taxable to the federal gov t but non-taxable to California. You must adjust.

37 Income (interest) Note: Tax exempt interest is entered separately Adjust for CA if necessary (ex. other state municipal bond interest)

38 Income (interest) 1099-OID treated as taxable interest 1099-INT box 9 PAB private activity bond interest Other Taxes>>Alternate Minimum Tax>>line 4

39 Income (dividends) Line 9a Ordinary Dividends Line 9b Qualified Dividends FORM 1099-DIV PUB 4012 D-11

40 Income (state tax refund) Line 10 Taxable Refunds PUB 4012 D-12 May need last year s tax return TaxSlayer Federal Section>>Income>>State and Local Refunds

41 Income (state tax refund) FORM 1099-G

42 Income (state tax refund) If the taxpayer used the standard deduction last year, the refund is not taxable (ignore). If the taxpayer itemized and took the sales tax deduction, the refund is not taxable (ignore). If taxpayer itemized deductions and claimed state income tax paid last year, the state tax refund may be all or partly taxable.

43 Income (state tax refund)

44 Income (alimony received) Line 11 Alimony Received Taxable to the recipient. [child support is not alimony and is not taxed]

45 Income (business income or loss) Line 12 Business Income or loss from Schedule C Self-employment income PUB 4012 D-13

46 Income (business income) Tax-Aide limited scope no depreciation no employees no net loss no inventory less than $25,000 in expenses

47 Income (business income) FORM 1099-MISC Box 7 non-employee compensation? TaxSlayer Income>>Form 1099 misc [continue]

48 Income (business income) PUB 4012 D-18 to D-21 Schedule C Basic information Questions about your business business code Income (other than 1099-misc box 7) General expenses Car and truck expenses

49 Income (business income) NOTE: Commuting miles are never deductible! X X

50 Income (business income) UBER LYFT Must claim all expenses. smart phone to UBER/LYFT account? Cannot take a net loss (out of scope)

51 Income (business income) FORM 1099-K Payment Card and Third Party Network Transactions Entered as business income

52 Income (business income) Self-employment tax on net business income. 12.4% Social Security 2.9% Medicare 15.3% Schedule SE Form 1040 line 57 Plus adjustment to income (-50% of selfemployment tax.)

53 Income (lines 7 12) Line 7 Wages Line 8 Interest Line 9 Dividends Line 10 Taxable refund Line 11 Alimony received Line 12 Business income

54 INCOME QUESTIONS????

55 FILING STATUS SINGLE MARRIED FILING JOINTLY MARRIED FILING SEPARATELY HEAD OF HOUSEHOLD QUALIFYING WIDOW WITH DEPENDENT CHILD

56 FILING STATUS PLEASE TURN TO PUB 4012 B-8, B-9, B-10 DECISION TREE OR TRI-FOLD

57 FILING STATUS CONSIDERATIONS MARITAL STATUS ON THE LAST DAY OF TAX YEAR PERSONS LIVING IN THE HOME (MAY OR MAY NOT BE DEPENDENTS)

58 FILING STATUS UNMARRIED LAST DAY OF TAX YEAR? SINGLE HEAD OF HOUSEHOLD WITH QUALIFYING DEPENDENT

59 HEAD OF HOUSEHOLD FILING STATUS PROVIDED HOME FOR QUALIFYING CHILD (POSSIBLY NOT A DEPENDENT) PROVIDED HOME FOR QUALIFYING RELATIVE MUST BE RELATED >50% OF MAINTAINING HOME FOR DEPENDENT PARENTS LIVING ELSEWHERE

60 FILING STATUS MARRIED? MARRIED FILING JOINTLY MARRIED FILING SEPARATELY HOH IF CONSIDERED UNMARRIED WITH QUALIFYING CHILD OR RELATIVE

61 FILING STATUS MARRIED BUT CONSIDERED UNMARRIED FOR HOH LIVED APART FOR ALL OF LAST SIX MONTHS OF TAX YEAR PROVIDED HOME FOR CHILD, STEPCHILD, OR ELIGIBLE FOSTER CHILD FOR OVER SIX MONTHS

62 FILING STATUS MARRIED FILING JOINTLY MOST ADVANTAGEOUS FILING STATUS MARRIED ON LAST DAY OF THE YEAR SPOUSE DIED DURING TAX YEAR AND TP DID NOT REMARRY

63 FILING STATUS MARRIED FILING SEPARATELY CHOOSES TO FILE MFS SPOUSE HAS ALREADY FILED MFS MARRIED BUT SEPARATED AND NOT MFJ

64 FILING STATUS MFS DISADVANTAGES HIGHEST TAX RATE/LOWER STANDARD DEDUCTION SOCIAL SECURITY 85% TAXABLE IF LIVED TOGETHER AT ALL DURING TAX YEAR CANNOT CLAIM MOST TAX CREDITS CANNOT DEDUCT STUDENT LOAN INTEREST CANNOT USE STANDARD DEDUCTION IF SPOUSE ITEMIZED

65 FILING STATUS MFS OUT OF SCOPE FOR TAX-AIDE UNLESS: 1. LIVED APART ALL YEAR 2. NO COMINGLING OF FUNDS 3. NAME AND SSN OF SPOUSE IS AVAILABLE 4. SPOUSE DID NOT ITEMIZE? 5. PERMISSION OF THE LOCAL COORDINATOR.

66 FILING STATUS MFS CA IS A COMMUNITY PROPERTY STATE NEED TO FILL OUT FORM 8958 PUT $1 TO SPOUSE TO E-FILE

67 FILING STATUS QUALIFYING WIDOW(ER) SPOUSE DIED IN ONE OF TWO PAST YEARS DEPENDENT CHILD OR STEPCHILD LIVED IN HOME ALL YEAR. GRANDCHILDREN

68 FILING STATUS QWWDC TWO YEARS AFTER DEATH ONLY ADVANTAGE STANDARD DEDUCTION SAME AS MFJ USES MFJ TAX RATES

69 FILING STATUS CA4 DISTRICT 03 TORRANCE, LAST YEAR SINGLE 71% MFJ 21% MFS 0.4% HOH 7% QW 0%

70 CALIFORNIA FORM 540

71 CALIFORNIA FOLLOWS FEDERAL with rare exception

72 COUNSELOR S REFERENCE MANUAL (DUCK BOOK) READ WIDLUI

73 TAXSLAYER BASIC INFORMATION FEDERAL SECTION HEALTH INSURANCE STATE SECTION

74 ADD STATE RETURN

76 RESIDENCY

78 CALIFORNIA STATE RETURN Basic Information Additions to Income Subtractions from Income Itemized Deductions Credits Tax Voluntary Contributions Payments Miscellaneous Forms Amended Return

79 Basic Information HOH CA FORM 3532 DECEASED TAXPAYER OR SPOUSE

80 CA ADJUSTMENTS AND DIFFERENCES NONCONFORMITY TO FEDERAL LAW AUTOMATIC OR MANUAL

81 TAXABLE? FED CA CA MUNI. BOND INTEREST NO NO OTHER STATE MUNI. NO YES <50% CA MUNI. NO YES >50% CA MUNI. NO NO* *PRORATE

82 TAXABLE? FED CA US SAVINGS BONDS YES NO US TREASURIES YES NO SOCIAL SECURITY/RR TIER I YES* NO CANADIAN/GERMAN SS YES* YES *PARTIALLY

83 TAXABLE? FED CA TAXABLE STATE REFUND YES NO UNEMPLOYMENT YES NO CA LOTTERY WINNINGS YES NO

84 MANY DIFFERENCES HANDLED BY TAXSLAYER AUTOMATICALLY SOCIAL SECURITY/RR TIER I TAXABLE STATE REFUND UNEMPLOYMENT

85 MANUAL ADJUSTMENT IN FEDERAL SECTION OTHER STATE MUNI. <50% CA MUNI. >50% CA MUNI. US SAVINGS BONDS & TREASURIES

86 MANUAL ADJUSTMENT IN STATE SECTION CANADIAN/GERMAN SOCIAL SECURITY ADDITION CA LOTTER WINNINGS SUBTRACTION

87 ADD NOTES

89 SCHEDULE CA (540)

90 CA ITEMIZED DEDUCTIONS CA STANDARD DEDUCTION LOWER THAN IRS S,MFS 4,129 MFJ,QW 8,258 HOH 8,258 ITEMIZE STATE WHEN STANDARD FED? COMPLETE FEDERAL RETURN SCHEDULE A

91 ITEMIZED DEDUCTIONS DIFFERENCES AUTOMATIC STATE AND LOCAL TAXES, etc. MANUAL CA LOTTERY GAMBLING LOSSES

92 RENTER S CREDIT (NON-REFUNDABLE) $60 $120 S,MFS AGI < $40,078 MFJ,HOH,QW AGI < $80,156 CA EITC (REFUNDABLE) CA FORM 3514

93 TAX/PAYMENTS CA ESTIMATED TAX PAYMENTS (FEDERAL SEC.) MISCELLANEOUS FORMS ESTIMATED TAX VOUCHERS FOR NEXT YEAR (CALIFORNIA SECTION)

94 CALIFORNIA STATE RETURN Basic Information Additions to Income Subtractions from Income Itemized Deductions Credits Tax Voluntary Contributions Payments Miscellaneous Forms

95 CALIFORNIA FOLLOWS FEDERAL with rare exception

96 HOH DECEASED TAXPAYER CANADIAN/GERMAN SOCIAL SECURITY CA LOTTERY WINNINGS RENTER S CREDIT ESTIMATED TAX VOUCHERS FOR NEXT YEAR

97 COUNSELOR S REFERENCE MANUAL (DUCK BOOK) READ WIDLUI

98 ADJUSTMENTS TO INCOME PREFERENCE ITEMS THAT REDUCE GROSS INCOME. PUB 4012 TAB E

99 ADJUSTMENTS TO INCOME

100 ADJUSTMENTS TO INCOME 23 Educator expenses Deductible part of self-employment tax Penalty on early withdrawal of savings

101 ADJUSTMENTS TO INCOME 31a Alimony paid b Recipient s SSN 32 IRA deduction 33 Student loan interest deduction 34 Tuition and fees Add lines 23 through Subtract line 36 from line 22. Adjusted Gross Income

102 ADJUSTMENTS TO INCOME 23 Educator expenses Up to $250 (excess to Schedule A) K 12 teacher, instructor, principal (900+ hours)

103 ADJUSTMENTS TO INCOME 27 Deductible part of self-employment tax (50% adjustment) 30 Penalty on early withdrawal of savings 1099-INT box 6 31 Alimony paid need recipient s SSN

104 ADJUSTMENTS TO INCOME 32 IRA deduction TaxSlayer Adjustments>>IRA (Roth IRA under Credits) Possible Retirement Savings Contribution Credit

105 ADJUSTMENTS TO INCOME 33 Student loan interest deduction Up to $2, Tuition and fees deduction

106 ADJUSTMENTS TO INCOME 23 Educator expenses 27 Deductible part of self-employment tax 30 Penalty on early withdrawal of savings 31a Alimony paid b Recipient s SSN 32 IRA deduction 33 Student loan interest deduction 34 Tuition and fees

107 ADJUSTMENTS TO INCOME LINE 22 TOTAL INCOME LINE 36 TOTAL ADJUSTMENTS LINE 37 SUBTRACT LINE 36 FROM LINE 22 ADJUSTED GROSS INCOME AGI (MODIFIED AGI = MAGI)

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