1NY3 Instructor Training 2010

AARP Tax-Aide Scope

• Out of Scope• In Scope• Refer to Paid Tax Preparer

2NY3 Instructor Training 2010

In Scope

• 1040 with Schedules A, B, and D• Sched C w/up to $10K expenses

• No employees

• No inventory

• No losses

• No depreciation

• No returns, allowances, cost of goods sold

• Schedule E (Royalty income)• 1099 MISC w/box 7 nonemployee comp

reported on Sched C/CEZ

3NY3 Instructor Training 2010

In Scope

• 1099 Misc (box 1, 2 - rents, royalties, with no

expenses or depreciation - reported on Sched E• 1099 Misc box 3 “Other Income” reported on

1040 Line 21• 2441 Child & Dependent Care• 8283 Section A Part 1 non-cash contribution to

charity > $500 < $5000

4NY3 Instructor Training 2010

In Scope

• 8880 Qualified Savings Credit• 8812 Additional Child Tax Credit• 8863 Education Credits• 9465 Installment Agreement• 8379 Injured Spouse• 1040X Amended Return• Sched K-1 only for interest, dividends,

capital gains distributions and royalties (Sched B, D, E)

5NY3 Instructor Training 2010

In Scope

• Cancellation of Debt 1099-A and/or 1099-C and Form 982 if certified

• Health Savings Accounts Form 1099-SA and Form 8889 if certified

Note: 8606 – 4491 is unclear – will have to research

6NY3 Instructor Training 2010

Out of Scope

Schedule C with > $10,000 Expenses Complicated/Lengthy Schedule D

(Capital Gains and Losses) Schedule E (Rental Property) with expenses

and/or depreciation

7NY3 Instructor Training 2010

Out of Scope

• FORM: 2106 (Employee Business Expense) 3903 (Moving Expenses) 8615 (Minor’s Investment Income) Innocent Spouse Schedule K-1’s that involve depreciation Reporting Savings Bond interest if accrued yearly Casualty Losses AMT

8NY3 Instructor Training 2010

“Refer to Professional Tax Preparer”

• See Word Document “SCOPE FROM 4491”

9NY3 Instructor Training 2010

REMEMBER

• To prepare an accurate return, • AARP Tax Counselors can determine if a

return is too complicated• or outside the scope of their training