one day returning counselor training – dist 5

11 Day Returning Counselor Training 2013

One Day Returning Counselor Training – Dist 5

Bob EslingerPacific Region Training

Advisor

21 Day Returning Counselor Training 2013

AGENDA – RETURNING COUNSELOR ONE DAY TRAINING

31 Day Returning Counselor Training 2013

INTRODUCTIONS

NameHow long have you been with AARP?What site do you serve?What one question would you like

answered?

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Page A-1

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Page A-2

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Page A-2

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Page A-3

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Page A-3

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MUST/SHOULD FILE QUIZ #1

Miranda, 17, is claimed on her parents’ return

W-2 shows $2,000 in wages and Federal tax withheld of $155

Grandparents gave her a $3,000 CD as a gift

She has no other incomeMust or should Miranda file?

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MUST/SHOULD FILE QUIZ #1 ANSWER

Miranda, 17, is claimed on her parents’ return

W-2 shows $2,000 in wages and federal tax withheld of $155

Grandparents gave her a $3,000 CD as a gift

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 Plus $3,000 reported on a W-2; no tax was

withheld

Must or should Kathy file?

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MUST/SHOULD FILE QUIZ #2 ANSWER

Kathy, 22, attends college full time Earned $850 babysitting Plus $3,000 reported on a W-2; no tax was

withheldMust or should Kathy file?

Must: had >$400 in self-employmentIf only W-2, would not have needed to file

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Page H-2

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EIC QUIZ #1Tab H

A 65-year-old gentleman, with no qualifying children, earned $5,000.

Taxwise does not give him any EIC. Is this correct?

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EIC QUIZ #1 ANSWERTab H

A 65-year-old gentleman, with no qualifying children, earned $5,000.

Taxwise does not give him any EIC. Is this correct?

YES. He is too old to get the EIC. He is 65 years old.

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EIC QUIZ #2

A young father of two earns $15,000. He sells his only stock, inherited from his

mother, and makes a $3,500 capital gain. He is expecting a sizeable EIC. Is he

correct?

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EIC QUIZ #2 ANSWER

A young father of two earns $15,000. He sells his only stock, inherited from his

mother, and makes a $3,500 capital gain. He is expecting a sizeable EIC. Is he

correct?

NO. He gets nothing because his investment income is over the limit.

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Page C-3

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EXEMPTIONS QUIZ #1TAB C

John supports his wife’s Uncle George who lives in another city and has $2,400 of taxable income

John files MFJ

Can John claim George as a dependent if all other tests met?

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EXEMPTIONS QUIZ #3

Ralph is 64 and lives with his son and daughter-in-law all year

Ralph earned $4,700

Can Ralph’s son claim him as a dependent?

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EXEMPTIONS #3 ANSWER

Ralph is 64 and lives with his son and daughter-in-law all year

Ralph earned $4,700Can Ralph’s son claim him as a

dependent?

NO Income over $3,800

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EXEMPTIONS QUIZ #4

Ralph’s children are also supporting his friend, Fred, who lives with them

Fred’s only income is social security of $5,000

Can Fred be claimed?

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EXEMPTIONS #4 ANSWER

Ralph’s children are also supporting his friend, Fred, who lives with them

Fred’s only income is social security of $5,000

Can Fred be claimed?

YESGross income test does not count income

that is exempt from tax

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EXEMPTIONS QUIZ #5

Jennifer, age 25, is a full-time student, lived at home with her parents all year, and her parents provided over half of her support

Jennifer made $3,000

Can Jennifer's parents claim her as a dependent?

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EXEMPTIONS QUIZ #5 – ANSWER A

Is Jennifer a Qualifying Child? NO

She satisfies the residency and relationship tests, but not the age test

If Jennifer is not a Qualifying Child, is she a Qualifying Relative Dependent?

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EXEMPTIONS QUIZ #5 – ANSWER B

Is Jennifer a Qualifying Relative Dependent?

YESShe is their daughterShe earned less than $3,800Parents provided >50% supportNot the Qualifying Child of anotherCan be claimed if all other tests met

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EXEMPTIONS QUIZ #6

Stacy has a son, Ben, age 14, and they lived with Stacy's boyfriend (who is not Ben's father) all year

Stacy made $7,000 and her boyfriend made $50,000

Can Stacy’s boyfriend claim Ben as a dependent?

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EXEMPTIONS QUIZ #6 – ANSWERS

NO, if Stacy files a return Ben would be a Qualifying Child of Stacy YES, if Stacy does not file a return OR

files ONLY to get a refund of withholding Ben could be a Qualifying Relative

Dependent of Stacy’s boyfriendIt might be more beneficial, however, for Stacy

to file and claim the EIC

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Page B-1

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Page B-3

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FILING STATUS QUIZ #1TAB B

Mrs. Doe is divorced Pays >50% cost of the home she shares with

her 20-year-old daughter, Emily Emily is single, works part time, and earned

$4,000 that she spent on herself. She is not a studentCan Mrs. Doe file as Head of Household?

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Can Mrs. Doe file as Head of Household?NO

Emily is not a Qualifying Child >18 years of age Not a student

Emily is not a Qualifying Relative Dependent Income >$3,700

FILING STATUS QUIZ #1 ANSWERS

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FILING STATUS QUIZ #2

Mr. Buck provides total support for his two young children

His wife died in 2009, and he has not remarried

What is the best filing status for Mr. Buck?

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What is the best filing status for Mr. Buck?

HEAD OF HOUSEHOLD

What would have been best in TY2011?

FILING STATUS QUIZ #2ANSWER 1

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What would have been best in TY2011?

QUALIFYING WIDOW(ER) with Dependent Child

FILING STATUS QUIZ #2ANSWER 2

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FILING STATUS QUIZ #3

Jane, 69, whose husband died July 1, had a $20,000 pension and $15,000 in social security in the tax year

Her 10-year-old grandson lived with her and is her dependent

What is the best filing status for Jane?

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FILING STATUS QUIZ #3ANSWER 1

What is the best filing status for Jane?

MARRIED FILING JOINT

Assuming nothing changes, what filing status is best for the

following tax years?

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FILING STATUS QUIZ #3ANSWER 2

Assuming nothing changes, what filing status is best for the

following tax years?HEAD OF HOUSEHOLD

Grandchild is not a qualifying child dependent for Qualifying Widow(er) with Dependent Child

purposes – own child or stepchild only

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FILING STATUS QUIZ #4

Luke and Linda are still married, but chose to live apart for most of the year

Their two children lived with Linda all year In July, Luke was out of a job so he moved

back in the house for just that monthWhat filing status can they each choose?

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FILING STATUS #4 ANSWER

Luke and Linda are still married, but chose to live apart for most of the year

Their two children lived with Linda all year In July, Luke was out of a job so he moved back

in the house for just that monthWhat filing status can they

each choose? MFJ or MFS

(both must use same status)

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FILING STATUS QUIZ #5

Dick and Jane are married, lived apart all year, and are filing separate returns

Their 25-year-old daughter Jody lived with Jane all year while attending school full-time

Jody earned $2,500 during the summer

What is Jane’s best filing status?

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FILING STATUS QUIZ #5 ANSWER 1

What is Jane’s best filing status?

HEAD OF HOUSEHOLD

What would Jane’s filing status be if Jody earned $3,900?

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FILING STATUS QUIZ #5ANSWER 2

What would Jane’s filing status be if Jody earned $3,900?

MARRIED FILING SEPARATELY

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FILING STATUS QUIZ #6

Sarah, age 62, has a 40 year old son living with her

He earned $40,000 and put all of it in the bank

Can Sarah claim Head of Household?

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FILING STATUS QUIZ #6 ANSWER

Can Sarah claim Head of Household?

NO Son must be either a Qualifying Child or a Qualifying RelativeNot a Qualifying Child: ageNot a Qualifying Relative: income >$3,700

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