1 ny3 instructor training albany 2009 aarp tax-aide scope what's out what's in

1 NY3 Instructor Training Albany 2009

AARP Tax-Aide Scope

What's OutWhat's In


Out of Scope

Schedule C (Business Profit and Loss) Complicated/Lengthy Schedule D

(Capital Gains and Losses) Schedule E (Rental Property, Royalties,

Partnerships, and Trusts that involve

depreciation)


Out of Scope (Con't)

FORM: 2106 (Employee Business Expense) 3903 (Moving Expenses) 8615 (Minor’s Investment Income) 8606 (Nondeductible IRA) when taking

distribution Schedule K-1’s other than interest and

dividends


In Scope

FORM:

· 1040EZ

· 1040A with Schedules 1, 2, 3 and EIC

· 1040 with Schedules A, B, C-EZ, EIC, R

· Simple Schedule D

· Schedule E (Oil & Gas Leases or Royalties)

payments reported on 1099-Misc, that do not involve depreciation, depletion, or any other expenses against that income


In Scope

· 1099 Misc (box 7 nonemployee comp reported on Schedule CEZ)

· 1099Misc (box 1, 2 or 3 - rents, royalties, or other income with no expenses) - reported on Line 21 – Other Income

• 8606 to record Non-deductible IRA contribution


In Scope

· 1040-V

· 1040-ES (Estimated Payments)

· 2106-EZ (Employee Business Expense)

· 2441 (Child & Dependent Care)

· 8283, Section A, Part 1 – non-cash

contributions to charity exceed $500 but less than $5000


In Scope

· 8880 (Qualified Savings Credit)

· 8812 (Additional Child Tax Credit)

· 8863 (Education Credits)

· 9465 (Installment Agreement)

· 8379 (Injured Spouse)

· 1040X (if trained)


In Scope

· Limited Schedule K-1 that provides

information only for Schedule B or D (if

trained)

· Contributions to Charities from an IRA


In Scope (Con't)

• Schedule E (Oil & Gas Leases or Royalties)

payments reported on 1099-Misc, that do not

involve – depreciation

– depletion

– any other expenses against that income


“Refer to Professional Tax Preparer”

• Sale of home when non-qualified use

• Energy Credit – Solar, WindTurbine, Geothermal

• Farm Income• Under 18 with investment income

> $1,900• Coverdell or 529 funds not used

for education



• Alimony paid under divorce agreement pre 1985

• C-EZ – wants to or has used actual expenses

• Sale of other than stocks, mutual funds, personal residence

• Tax payer doesn't know basis of stock



• In kind exchanges, wash sales, worthless securities

• Sale of home – reduced exclusion• Sale of home used as business or

rental income after May 6, 1997• Determining adjusted basis of

gifted property



• Cancellation of debt due to bankruptcy

• Non-deductible contributions to IRA• If taxpayer has used General Rule

in past to determine taxable portion of pension

• Lump sum pension distribution spread over previous years

• Form 6251 AMT



• Casualty & Theft Loss• Charitable contributions > 20%

of AGI• Form 8283 non-cash

contributions > $500• Household employment taxes


REMEMBER

To prepare an accurate return, AARP Tax Counselors can

determine if a return is too complicated

or outside the scope of their training

1 ny3 instructor training albany 2009 aarp tax-aide scope what's out what's in

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