Morris County AARP Morris County AARP TaxAideTaxAide

TaxWise Familiarization

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

OVERVIEWOVERVIEWWHO WE ARE INSURANCE COVERAGEORIENTATIONWHO YOU ARE

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

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

ORIENTATIONORIENTATIONRest RoomsLunchName Tags – First Name Only in

SitesSign-in ListRoster – Check off that

information is correctPut Your Names on Your Training

Material

AgendaAgenda

Welcome & Introduction to MC TaxWise (Nancy)

Introductions Forms TaxWise Online Software

OverviewPractice ExercisesHomework

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

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

FormsForms

Intake & Interview FormIRS Form 1040IRS Schedule AW-2 Wage & Tax StatementW-2G Gambling Winnings1099INT, 1099DIV, 1099R, SSA-

1099

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

Intake Form Page 1Intake Form Page 1

Intake Form Page 2Intake Form Page 2

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

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

Form 1040 Page 1 Taxpayer Form 1040 Page 1 Taxpayer InformationInformation Personal

Information

Filing StatusExemptions

Dependent Information

Presidential Election Campaign Question

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”

1040 Page 1 Income1040 Page 1 IncomeIncome

Adjustments to Income

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”

1040 Page 2 Taxes & 1040 Page 2 Taxes & CreditsCredits

Taxes CalculatedItemized or Standard Deduction

Exemptions

Nonrefundable Credits

Other Taxes

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

Payments/Refund/Owe/Payments/Refund/Owe/SignSign

Pre-Paid TaxesRefundable Credits

Refund

Owe

Signature Box

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

Schedule ASchedule A Medical Expenses

Property Taxes

Mortgage Interest

Contributions

Misc Deductions

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

W-2 Wage & Tax W-2 Wage & Tax StatementStatement

NJSUI

NJSDI

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

W-2GW-2GPayer & Payee Information

Taxes Withheld

Winnings

Type Wager

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.

1099-DIV1099-DIV

1099-INT1099-INT

1099-R1099-RDistribution from pension, IRA,

annuities, etc.Enter information in TaxWise

1099R TaxWise puts the proper

information on the correct 1040 lines

1099-R1099-R If taxable amount not determined, there is more to do

Distribution Codes on Back or in Help

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

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

TaxWise Flow ChartTaxWise Flow Chart

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.

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

CautionCautionAnything you enter is TWO can

be viewed by instructors and coaches