1 / 26

2012-2013 Deciphering IRS Tax Return Transcripts

2012-2013 Deciphering IRS Tax Return Transcripts. Why did we change?. 2011-12 and prior years, students selected for verification could submit copies of applicable 1040s and W-2s.

paprika
Download Presentation

2012-2013 Deciphering IRS Tax Return Transcripts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2012-2013 DecipheringIRS Tax Return Transcripts

  2. Why did we change? • 2011-12 and prior years, students selected for verification could submit copies of applicable 1040s and W-2s. • For 2012-13 regulatory changes made were related to program integrity issues as published in the Oct 29, 2010 Federal Register (75 FR 66832) and in the July 13, 2011 Federal Register (76 FR 41231). Acceptable verification documents changed to include Tax Transcripts.

  3. How to request IRS Tax Transcripts? • There are a few options for students/parents to request IRS Tax Transcripts. • Online at: http://www.irs.gov/individuals/article/0,,id=232168,00.html?portlet=105 • By Phone: 1-800-908-9946 • By Request Form: 4506-T or 4506T-EZ

  4. Online requests: This is the preferred method. However, online requests can’tbe processed if the transcript needs to be mailed to another address other than the one on file at IRS. Student/Parent will need to use the 4506-T or 4506T-EZ. • 4506-T: Other information that can be requested with the 4506-T form include Verification of Non-filing and Forms W-2, Form 1099 series, Form 1098 series, Form 5498 series. VS.

  5. There are different types of IRS Tax Transcripts/Records. • Which one do we need? • Tax Return Transcript • Tax Account Transcript • Record of Account

  6. Tax Return Transcript • Includes most of the line items of a filed tax return. • Does not reflect changes made to the account after the return is processed. • Available only for following returns. Form 1040 series, forms 1065, 1120, 1120A, 1120H, 1120L and 1120S. • Most requests processed within 10 days of the request date.

  7. Tax Account Transcript • These contain information about the financial status of the account, such as payments, penalties and adjustments made after taxes are filed. • Has limited information and is available for most filers. • Most requests are processed within 30 calendar days from the request date.

  8. Record of Account • Provides the most detailed information since it is a combination of the Return Transcript and the Account Transcript. • Available for current year and 3 prior tax years. • Most requests will be processed within 30 calendar days from request date.

  9. Deciphering the Tax Return Transcript • The Department of Education issued the FAFSA Verification-IRS Tax Return Transcript Matrix on February 24 and a revision on March 16, 2012. • The matrix cross references line items from the FAFSA, ISIR, Tax Return Transcript and 1040 forms. • Firstidentify which 1040 form (ex: 1040, 1040A, 1040EZ) used by the student/parent filed. Find the “Form Number” line item on the Tax Return Transcript. Review “Filing status” and “Exemptions”.

  10. “.....were you eligible to file a 1040A or 1040EZ?” • Look at 2011Tax Return Transcript that is the result of a filed 1040. If there is a dollar value on any of the following lines, they are not eligible to file a 1040A or 1040EZ.

  11. Look for the money… • REFUNDS OF STATE/LOCAL TAXES • ALIMONY RECEIVED • BUSINESS INCOME OR LOSS: SCH C PER COMPUTER • CAPITAL GAINS OR LOSS: SCH D PER COMPUTER • OTHER GAINS OR LOSSES: (Form 4797) • RENT/ROYALTY/PARTNERSHIP/ESTATE (Schedule E) PER COMPUTER • RENT/ROTALTY INCOME/LOSS PER COMPUTER: • ESTATE/TRUST INCOME/LOSS PER COMPUTER • PARTNERSHIP/S-CORP INOCME/LOSS PER COMPUTER • FARM INCOME OR LOSS (Schedule F) PER COMPUTER • OTHER INCOME

  12. Look for the money… • RESERVIST AND OTHER BUSINESS EXPENSE • HEALTH SAVINGS ACCT DEDUCTION PER COMPUTER • MOVING EXPENSES: F3903 • SELF EMPLOYMENT TAX DEDUCTION PER COMPUTER • KEOGH/SEP CONTRIBUTION DEDUCTION • SELF-EMP HEALTH INS DEDUCTION • EARLY WITHDRAWAL OF SAVINGS PENALTY • ALIMONY PAID • DOMESTIC PRODUCTION ACTIVITIES DEDUCTION • ADDITIONAL STANDARD DEDUCTION PER COMPUTER • STANDARD DEDUCTION PER COMPUTER • FOREIGN TAX CREDIT

  13. Look for the money… • FOREIGN TAX CREDIT PER COMPUTER • RESIDENTIAL ENERGY CREDIT PER COMPUTER • F3800, F8801 AND OTHER CREDIT AMOUNT • SE TAX • SE TAX PER COMPUTER • SOCIAL SECURITY AND MEDICARE TAX ON UNREPORTED TIPS PER COMPUTER • TAX ON QUALIFIED PLANS F5329 PER COMPUTER • HOUSEHOLD EMPLOYMENT TAXES PER COMPUTER • RECAPTURE TAXES

  14. Look for the money…. • EXCESS SOCIAL SECURITY & RRTA TAX WITHHELD • FIRST TIME HOME BUYER CREDIT PER COMPUTER • FIRST TIME HOME BUYER CREDIT VERIFIED • AMOUNT PAID WITH FORM 4868 (Filing Extension) • FORM 4136 CREDIT FOR FEDERAL TAX ON FUELS • FORM 4136 CREDIT FOR FEDERAL TAX ON FUELS PER COMPUTER • HEALTH COVERAGE TX CR: F8885 • FORM 2439, 8801, and OTHER CREDIT TOTAL AMT ‘Per Computer’ is the value calculated by the IRS and must be used for verification even if it is different than what was reported by the tax filer to the IRS.

  15. Adjusted Gross Income • On the FAFSA, questions 35 and 83 • On the ISIR, fields 42 and 106 • On the 2011 Tax Return Transcript “Adjusted Gross Income Per Computer” • On the 2011 IRS 1040, line 37 • On the 2011 IRS 1040A, line 21 • On the 2011 IRS 1040EZ, line 4

  16. Income Tax Paid • On the FAFSA, questions 36 and 84 • On the ISIR, fields 43 and 107 • On the 2011 IRS Tax Return Transcript For 1040 transcripts “Income Tax After Credits Per Computer” For 1040A transcripts “Total Tax Liability TP Figures Per Computer” For 1040EZ transcripts “Total Tax Liability TP Figures Per Computer”

  17. Income Tax Paid (cont.) • On the 2011 IRS 1040, line 55 • On the 2011 IRS 1040A, line 35 • On the 2011 IRS 1040EZ, line 10

  18. Education Credits • On the FAFSA, questions 43a and 91a • On the ISIR, fields 50 and 114 • On the 2011 IRS Tax Return Transcript “Education Credit Per Computer” • On the 2011 IRS 1040, line 49 • On the 2011 IRS 1040A, line 31 • On the 2011 IRS 1040EZ, NA

  19. IRS Deductions and Payments • On the FAFSA, questions 44b and 92b • On the ISIR, fields 57 and 121 • On the 2011 Tax Return Transcript “KEOGH/SEP Contribution Deduction + IRA Deduction Per Computer” • On the 2011 1040, lines 28 + 32 • On the 2011 1040A, line 17 • On the 2011 1040EZ, NA

  20. Tax Exempt Interest Income • On the FAFSA, questions 44d and 92d • On the ISIR, questions 59 and 123 • On the 2011 Tax Return Transcript “Tax-Exempt Interest” • On the 2011 1040, line 8b • On the 2011 1040A, line 8b • On the 2011 1040EZ, NA

  21. Untaxed Portions of IRA Distributions • On the FAFSA, questions 44e and 92e • On the ISIR, fields 60 and 124 • On the 2011 Tax Return Transcript “Total IRA Distributions minus Taxable IRA Distributions” • On the 2011 1040, lines 15a minus 15b • On the 2011 1040A, lines 11a minus 11b • On the 2011 1040EZ, NA

  22. Untaxed Portions of Pensions • On the FAFSA, questions 44f and 92f • On the ISIR, lines 61 and 125 • On the 2011 Tax Return Transcript “Total Pensions and Annuities minus Taxable IRA Distributions” • On the 2011 1040, lines 16a minus 16b • On the 2011 1040A, lines 12a minus 12b • On the 2011 1040EZ, NA

  23. Selling Points • When students and parents ask why we need their IRS Tax Transcript for 2012-13. • Tax Transcripts are • Great reason to visit irs.gov • No calories and high in fiber • ?????

  24. Summary • Options to request Tax Transcripts (online, phone, 4506-T or 4506T-EZ. • There are different types of Tax Transcripts. • Review Filing Status, Form Number, Exemptions on Tax Return Transcript. • Use the ‘Matrix’ offered by Department of Education to verify amounts reported on FAFSA.

  25. Questions?

  26. Thank You! Resources: Ifap.ed.gov Irs.gov 2012–2013 FAFSA Verification-IRS Tax Return Transcript Matrix USA Funds Great Lakes Contact: Regina S. Carver rsmout@weber.edu 801.626.6732

More Related