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Filing Basics

4491-03 Filing Basics v1.0 VO.ppt. Filing Basics. Pub 4012 Tabs A, 1, 14 Pub 17 Intro, Chapter 1. LEVEL 2 TOPIC. Need To Know. Filing status, age & marital situation Is taxpayer a dependent? Blind? All sources of income Excluded or exempt income

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Filing Basics

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  1. 4491-03 Filing Basics v1.0 VO.ppt Filing Basics Pub 4012 Tabs A, 1, 14 Pub 17 Intro, Chapter 1 LEVEL 2 TOPIC NJ Training TY2010 v1.0

  2. Need To Know • Filing status, age & marital situation • Is taxpayer a dependent? Blind? • All sources of income • Excluded or exempt income • Whether TP received advanced Earned Income Credit (EIC)? • Any withholding or estimated taxes paid • Any carry-forward capital losses NJ Training TY2010 v1.0

  3. Where To Get T/P Info • Intake Sheet • Tax Documents • Prior Year Return NJ Training TY2010 v1.0

  4. Principal Sources Of Income • Salaries/Wages • Interest and Dividends • Sale of Securities-1099B • Pensions/IRA Distributions • Social Security Benefits NJ Training TY2010 v1.0

  5. Filing Requirements(See Pub 4012 Tab A) • Pub 4012: Page A-1 NJ Training TY2010 v1.0

  6. Filing Requirements(See Pub 4012 Tab A) NJ Training TY2010 v1.0

  7. Pub 4012, Tab AChart A - Footnotes • If TP turns 65 on Jan 1 of next year considered 65 for prior year • When using chart, do NOT include social security benefits unless: • You are married filing a separate return and you lived with your spouse at any time during the year, or • One-half of your social security benefits plus you other gross income is more than $25,000 ($32,000 if MFJ) • MFJ not living with spouse at end of year and had gross income of $3,650 or more, must file regardless of age NJ Training TY2010 v1.0

  8. Also Must File If • Over $400 of net self employment income • Received advance EIC – from W2 box 9 • Owe special taxes (unreported tips, household employment, etc) NJ Training TY2010 v1.0

  9. Children & Other Dependents • Pub 4012: Page A-2 • Must File • Single dependents under 65 with unearned income over $950 and/or earned income over $5,700 • Married dependents - 65 or older or blind • See Pub 4012 Tab A NJ Training TY2010 v1.0

  10. Who Should File • Pub 4012: Page A-3 • Claiming refund of withheld taxes or estimated taxes paid • Claiming earned income credit • Claiming additional child tax credit • If TP received 1099B, Sale of Capital Assets NJ Training TY2010 v1.0

  11. When Not To File NJ • Not a resident (for tax purposes) of New Jersey • Adjust State Return box on Main Info screen • Do not file NJ 1040 return if ALL of the following conditions exist: • Homeowner (not a Tenant) • Income below filing threshold • No withholdings to be refunded • Not eligible for Earned Income Credit (EIC) • Click NO on box “Do You Want To Electronically File This Return”, page 3 of NJ return NJ Training TY2010 v1.0

  12. MUST/SHOULD FILE QUIZ #1 • Miranda, 17, claimed on her parents’ return • W-2 shows $2000 in wages and federal tax withheld of $155 • Grandparents gave her a $3000 CD as a gift • She has no other income • Must or should Miranda file? • Should: to get back her withholding • CD is a gift – not counted in income NJ Training TY2010 v1.0

  13. MUST/SHOULD FILE QUIZ #2 • Kathy, 22, attends college full time • Earned $850 babysitting and had $3000 reported on a W-2; no tax was withheld. • Must or should Kathy file? • Must: had >$400 in self-employment. • If only W-2, would not have needed to file. NJ Training TY2010 v1.0

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