Post on 21-Jan-2016
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11-Day Returning Counselor Training 2013
One Day Returning Counselor Training
DEDUCTIONS/CREDITS
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Page F-6
$5,950 2012
$11,900 2012
$8,700 2012
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Arizona Standard Deductions
$5950
Federal
$11,900
$8,700
$4833
$9665
$9664
$4833
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Itemized Deductions
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Sales Tax Worksheet
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Schedule A – Itemized Deductions Continued
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Nonrefundable Credits
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Page G-1
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Must Check DC to Load Form 2441
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CHILD/DEPENDENT CARE QUIZ
Joe & Mary have one child, 10, a dependent Both work and pay child care - AGI is
$33,000 and tax before credits is $1,100 Day care center was paid $250 per month
for a total of $3,000 for 2012 The expenses are necessary so that both
Joe and Mary can work Can they claim the credit, if so, how much?
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DEP CARE QUIZ ANSWERTab G
YES, credit is available Child is under 13 and qualifying person Check “DC” box on dependent line Complete Form 2441 to calculate credit
Amount of credit is nonrefundable and, based on their AGI, is 25% of $3000 expenses or up to $750 based on tax liability
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Page G-3
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EDUCATION QUIZ #1Tab G
Jim & May Brown, $28,000 AGI, 2 children Rose, sophomore, in college full-time John, 4th year full-time college senior Both children claimed as dependents Browns made tuition payments of $6000 in
August for 2012 classes and $6000 in December for 2013
For what education credits do they qualify?
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EDUCATION QUIZ #1ANSWER 1
AMERICAN OPPORTUNITY CREDIT for both children
Can the Browns include the payments they made in December for 2012?
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EDUCATION QUIZ #1ANSWER 2
AMERICAN OPPORTUNITY CREDIT for both children
Can the Browns include the payments they made in December for 2012?
YES
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EDUCATION QUIZ #2
If Rose had paid for her own tuition, how would the answer differ?
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EDUCATION QUIZ #2 ANSWER
If Rose had paid for her own tuition, how would the answer differ?
NOT AT ALL, unless Rose not claimed as a dependent. If Rose claimed as a dependent, Jim and May can claim the education credit no matter who paid the expenses.
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EDUCATION QUIZ #3Tab G
If Jim and May had not claimed Rose as a dependent (even though entitled to the exemption), who could claim the credit?
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EDUCATION QUIZ #3 ANSWERTab G
If Jim and May had not claimed Rose as a dependent (even though entitled to the exemption), who could claim the credit?
ROSE could claim the nonrefundable portion, but not the refundable portionG-3 (can’t claim personal exemption either)
Jim and May could not claim the credit.
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Form 8863 – Page 2
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Form 8863 – Page 1
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Page G-7
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Payments & Refundable Credits
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REFUNDABLE CREDITSQUIZ #2
Which form in TW would you use to claim estimated taxes paid?
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REFUNDABLE CREDITSQUIZ #2 ANSWER
Which form in TW would you use to claim estimated taxes paid?
F/S Tax Pd, Estimated Tax Payments Made for the Current Tax Year
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Page H-1
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Check EIC If Dependent Appears to Qualify for EIC
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EIC QUIZ #2
A young father of two earns $15,000. He sells his only stock, inherited from his
mother, and makes a $3,500 capital gain. He is expecting a sizeable EIC. Is he
correct?
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EIC QUIZ #1Tab H
A 65-year-old gentleman, with no qualifying children, earned $5,000.
Taxwise does not give him any EIC. Is this correct?
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EIC QUIZ #1 ANSWERTab H
A 65-year-old gentleman, with no qualifying children, earned $5,000.
Taxwise does not give him any EIC. Is this correct?
YES. He is too old to get the EIC. He is 65 years old.
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EIC QUIZ #2 ANSWER
A young father of two earns $15,000. He sells his only stock, inherited from his
mother, and makes a $3,500 capital gain. He is expecting a sizeable EIC. Is he
correct?
NO. He gets nothing because his investment income is over the limit.
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EIC QUIZ #3
Sara, 23 and unmarried, earned $5,000. Daughter, Jane, 5, lived with her all year. Matt, 25 and unrelated, earned $16,000
and lived in the home all year. Matt is not Jane’s father, but provided more
than half her support Who is eligible to claim EIC?
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EIC QUIZ #3ANSWER
SARA can claim EIC using Jane Jane is Sara’s Qualifying Child
Matt cannot claim EIC credit Jane is not Matt’s Qualifying Child He cannot claim EIC without a Qualifying
Child because his income is too high. Matt can claim Jane as a Qualifying Relative
Dependent if Sara is not required to file or files only for a refund of withheld taxes
501-Day Returning Counselor Training 2013
EIC QUIZ #4
Mike, 40, earned $18,000 His two sons, Joe and George, ages 16 and
18, lived with him all year. Mike’s sister, Susan, 36, earned $11,000 Susan lived with Mike and his sons over half
the year Who is eligible to claim EIC?
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EIC QUIZ #4ANSWER
MIKE is the ONLY ONE eligible to claim the EIC because His income is above filing requirement He is the parent Even if he did not claim the EIC, Susan
would not be eligible because her income is lower than Mike’s
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Who would be eligible if the boys were nephews of both Mike and Susan?
EIC QUIZ #4ALTERNATE
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Who would be eligible if the boys were nephews of both Mike and Susan?
MIKE would be the one eligible because he had the higher income.
EIC QUIZ #4ALTERNATE
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EIC QUIZ #5
Bill is 30 years old and earned $33,000; his wife, Emily, is 27 and earned $1000.
Bill and Emily have 3 children under age 19 who lived with both of them until August when they divorced.
The children lived with Emily through the rest of the year.
Who is eligible to claim EIC?
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EIC QUIZ #5ANSWER
EMILY is the one eligible to claim all The children lived with her the longest
(tiebreaker) She could choose, however, to let
Bill claim the children BILL could claim the children or some of
the children if Emily does not claim them (AGI is not an issue between parents, except as a tiebreaker).
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REFUNDABLE CREDITSQUIZ #1
Indicate which of the following are automatically calculated in TaxWise:1. Federal income tax withholding2. Estimated taxes3. EIC (Earned Income Credit)4. ACTC (Advanced Child Tax Credit)5. Refundable American Opportunity Credit
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REFUNDABLE CREDITSQUIZ #1 ANSWER
1. Federal Income Tax Withholding2. EIC (Earned Income Credit)3. ACTC (Additional Child Tax Credit)4. Refundable AOC (Refundable American
Opportunity Credit)
Estimated taxes not automatically calculated by TaxWise; must be input by counselor
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REVIEW QUIZ #5
Where is 1099-MISC, Box 7, Nonemployee compensation, reported?
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REVIEW QUIZ #5 ANSWER
Where is 1099-MISC, Box 7, Nonemployee compensation, reported?
Generally Sch C (or C-EZ, if preferred).See Pub 17 Ch 12, Other Income,
Nonemployee compensation, and Ch 1, Self-Employed Persons. If reported
incorrectly, need to contact employer.
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TOP PROBLEMSUSING TAXWISE
1. Improper OVERRIDES2. Improper use of punctuation3. Incorrect entry of last name –
spouse/dependents4. Not linking to 1099-MISC from Sch C5. Use of scratch pad instead of existing
worksheet or schedule6. Adding new form when already existing form
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TOP PROBLEMSUSING TAXWISE
6. Not recreating e-file as last item before exiting return, resulting in an invalid e-file
7. Incorrect or no state adjustment for interest and dividends
8. Improper completion of EIC worksheet or Schedule EIC
9. Missing input10.Return prepared with out-of-scope issues
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