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AARP Tax-Aide Scope

AARP Tax-Aide Scope. What's Out What'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:

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AARP Tax-Aide Scope

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  1. AARP Tax-Aide Scope • What's Out • What's In

  2. 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)

  3. 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

  4. 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

  5. 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

  6. 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

  7. In Scope • · 8880 (Qualified Savings Credit) • · 8812 (Additional Child Tax Credit) • · 8863 (Education Credits) • · 9465 (Installment Agreement) • · 8379 (Injured Spouse) • · 1040X (if trained)

  8. In Scope • · Limited Schedule K-1 that provides • information only for Schedule B or D (if • trained) • · Contributions to Charities from an IRA

  9. 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

  10. “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

  11. “Refer to Professional Tax Preparer” • 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

  12. “Refer to Professional Tax Preparer” • 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

  13. “Refer to Professional Tax Preparer” • 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

  14. “Refer to Professional Tax Preparer” • Casualty & Theft Loss • Charitable contributions > 20% of AGI • Form 8283 non-cash contributions > $500 • Household employment taxes

  15. REMEMBER • To prepare an accurate return, • AARP Tax Counselors can determine if a return is too complicated • or outside the scope of their training

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