morris county aarp taxaide taxwise familiarization
TRANSCRIPT
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Morris County AARP Morris County AARP TaxAideTaxAide
TaxWise Familiarization
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04/18/23NJ Integrated Training - 2007 Tax Season 2
AARP TAX-AIDE PROGRAMAARP TAX-AIDE PROGRAMWelcome to the Class of Tax Welcome to the Class of Tax
Year 2009Year 2009
Morris County
Module NJ A01E
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OVERVIEWOVERVIEWWHO WE ARE INSURANCE COVERAGEORIENTATIONWHO YOU ARE
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WHO WE AREWHO WE ARE
Charitable, non-profit program administered by AARP Foundation
Free, nationwide confidential serviceHelp low-to-mid income taxpayers
with special attention to age 60+Committed to high-quality serviceAnswer tax questions/prepare
returnsFunded 1/3 AARP; 2/3 IRS TCE
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04/18/23 NJ Integrated Training - 2007 Tax Season 5
INSURANCE COVERAGEINSURANCE COVERAGE
Travel accident insurance coverage if on Tax-Aide business
Supplemental secondary only
Notify District Coordinator ASAP
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ORIENTATIONORIENTATIONRest RoomsLunchName Tags – First Name Only in
SitesSign-in ListRoster – Check off that
information is correctPut Your Names on Your Training
Material
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AgendaAgenda
Welcome & Introduction to MC TaxWise (Nancy)
Introductions Forms TaxWise Online Software
OverviewPractice ExercisesHomework
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GoalGoalFamiliarize students with TaxWise
Software prior to Integrated Tax Law/ TaxWise Training in December◦Open TaxWise Online using user ID and
Password◦Walk around the software◦Start a return◦Complete main information sheet◦Enter income types ◦Schedules A & B◦Some NJ entries
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Tell Us About YourselfTell Us About Yourself
NameHome townOccupation
Current or pre-retirementComputer experience
◦ Computer Geek to I just do E-mail Tax experience
◦ CPA to I never did a tax returnWhat are your expectations of
the AARP TaxAide Program
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FormsForms
Intake & Interview FormIRS Form 1040IRS Schedule AW-2 Wage & Tax StatementW-2G Gambling Winnings1099INT, 1099DIV, 1099R, SSA-
1099
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AARP Intake & Interview AARP Intake & Interview FormFormCompleted by the clientPage 1 includes general information
for taxpayer, spouse and dependents
Page 2 summary of income and deductable expenses and tax credits
Page 2 Quality review questionsPage 2 retain data signature (not
required for 2009)For 2009 we will use IRS Intake Form
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Intake Form Page 1Intake Form Page 1
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Intake Form Page 2Intake Form Page 2
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IRS Form 1040IRS Form 1040
Everyone files a 1040 or a version of the 1040 (1040A, 1040EZ, etc)
Split up into 4 general areas◦Taxpayer information◦Income◦Taxes & Credits◦Payments/Refunds Due and
Signature
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Taxpayer InformationTaxpayer InformationInformation from Intake Sheet &
Client InterviewInput into TaxWise on the Main
Information SheetIncludes
◦Personal information for taxpayer & spouse
◦Filing status◦Dependent information◦Exemptions
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Form 1040 Page 1 Taxpayer Form 1040 Page 1 Taxpayer InformationInformation Personal
Information
Filing StatusExemptions
Dependent Information
Presidential Election Campaign Question
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IncomeIncomeAll sources of income included in this
sectionIncome derived from various forms
usually issued by employer, financial institution, government agency, etc
Information from forms entered into the respective form in TaxWise
TaxWise puts the appropriate values into the 1040.
Final line on page is “Adjusted Gross Income”
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1040 Page 1 Income1040 Page 1 IncomeIncome
Adjustments to Income
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Taxes & Credits Page 2Taxes & Credits Page 2Starts with “Adjusted Gross Income”Deduct Itemized or Standard DeductionDeduct Personal ExemptionsArrive at “Taxable Income”Calculate TaxAlternative Minimum Tax (Out of
Scope)Apply non-refundable tax creditsAdd other taxesBottom line is “Total Tax”
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1040 Page 2 Taxes & 1040 Page 2 Taxes & CreditsCredits
Taxes CalculatedItemized or Standard Deduction
Exemptions
Nonrefundable Credits
Other Taxes
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Payments/Refund/Owe/SignPayments/Refund/Owe/SignStart with “Total Tax”Apply tax withheld and estimated
paymentsApply refundable creditsBottom line
◦A refund◦You owe
Direct deposit informationSignature line
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Payments/Refund/Owe/Payments/Refund/Owe/SignSign
Pre-Paid TaxesRefundable Credits
Refund
Owe
Signature Box
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Schedule A Itemized Schedule A Itemized DeductionsDeductionsEveryone is allowed a standard
deductionTest to see if greater than
“standard deduction”Includes Medical, Taxes, Mortgage
Interest, Charitable Contributions, Misc.
Entered in TaxWise on Schedule A and Schedule A Detail
For this class we will use medical and property tax deduction
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Schedule ASchedule A Medical Expenses
Property Taxes
Mortgage Interest
Contributions
Misc Deductions
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W-2 Wage and Tax W-2 Wage and Tax StatementStatementEmployer issues to employee for tax
yearEmployer identification informationEmployee identification informationWages earnedTaxes withheldAll information to be copied to
TaxWise EXACTELY as shown on the form
TaxWise puts information entered in proper place
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W-2 Wage & Tax W-2 Wage & Tax StatementStatement
NJSUI
NJSDI
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W2GW2GIssued by gambling establishment
to report gambling winningsPayer and payee informationAmount wonFederal & state taxed withheldType & date of wagerCopy information from W2G to
TaxWise W2GTaxWise enters amount on 1040
line 21Label line 21 “Gambling”Gambling loses on schedule A
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W-2GW-2GPayer & Payee Information
Taxes Withheld
Winnings
Type Wager
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1099-DIV, 1099-INT1099-DIV, 1099-INT
Received from financial institution for dividends and/or interest received
Information from these forms are entered in TaxWise on Schedule B Interest or Dividend Statement
TaxWise puts information into Schedule B Interest & Ordinary Dividends and then to 1040.
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1099-DIV1099-DIV
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1099-INT1099-INT
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1099-R1099-RDistribution from pension, IRA,
annuities, etc.Enter information in TaxWise
1099R TaxWise puts the proper
information on the correct 1040 lines
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1099-R1099-R If taxable amount not determined, there is more to do
Distribution Codes on Back or in Help
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SSA-1099SSA-1099Amount from Box 5 is input into
TaxWise 1040 Wkt 1Medicare Part B entered into
TaxWise 1040 Wkt 1Medicare Part D entered into
Schedule A DetailBox 6 Federal Income Tax
Withheld into 1040 Wkt 1
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SSA-1099SSA-1099 Box 5 Amt to Wkt 1
Medicare Part B
Federal Tax Withheld
If there is Medicare Part D it is entered into Sch A Detail
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TaxWise Flow ChartTaxWise Flow Chart
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TaxWise OnlineTaxWise OnlineWeb site for training:
https://twonline.taxwise.com/training/
.Client Name: 2106185
.User Name Student: STUDENTXX
.User Name Coach: COACHXX
.Password: Same as user name for first logon. Reset your Password.
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Social Security Number Social Security Number KeyKeySSN in the problems are shown
as:◦###-XX-YYYY
### = numbers shown in problem◦Example:123
XX=numbers at the end of your user ID
YYYY= 0910
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CautionCautionAnything you enter is TWO can
be viewed by instructors and coaches