1/13/2010
Item to Enter
1099-A (see Foreclosure)
1099-B
1099-C (see Cancellation of debt)
1099-DIV
1099-G
1099-INT
1099-MISC, income in box 3
1099-MISC, income in box 7
1099-R
Alimony paid
Alimony received
Amended Return
Cap Gn Wkt
2- 9
Dividend Stmt
1099-G Wkt
Interest Stmt
from line 21, link to 1099-MISC
from Sch CEZ, link to 1099-MISC
1099-R
1040 line 31
1040 line 11
1040X and NC D400X
2- 7
Business income/expense
Sch CEZ
2- 8
Cancellation of debt - Form 1099C
Form 982
D-4
Capital gains and losses
Cap Gn Wkt from Sch D
2- 9
Charity gifts by cash or check
Charity gifts not by cash or check
Child support pay (non-taxable)
Child tax credit
A Detail
A Detail
4-4
4-4
D-1
G-7
G-8
163…
163…
133
233…
auto calculated in form 8812
form 2441
G-6
G-1
G-2
233…
220…
Deceased taxpayer or
taxpayer who died
Main Info
1-7
1-8
Dependents/exemptions
Main Info
C
Direct deposit data
Dividend income
Main Info and 1040 line 73
Dividend Stmt
Child tax credit, additional
Child/dependent care credit
1
TaxWise Quick Guide
Where to Enter in TaxWise
auto calculated
in 1040 Wkt3
Pub 4012
Highlights & Notes
Pub 17
1040 SchA
13
9
Link from 1040 line 19.
2- 5
2- 1,2-8
2- 1,2-8
2-10/2-13
3-1
14-2
Child's investment income
2- 7
76…
133
133…
133…
87
108
from line 21 on the 1040, link to 1099-MISC
from gross receipts on line 1 of Sch CEZ, link to 1099-MISC (prelinked)
for Simplified Method, cost in plan = contributions
Must have recipient's SSN
8
21
12
15,16
31
11
First fill out 1040 exactly as original return. Then "Add Form" 1040X. "Check to
override all original entries…." If state is to be amended too, then add state
amended return and check to override before changes. Add or correct forms
for amendment. Explain changes on p 2. Print 2 copies.
Out-of-scope if employees, inventory or depreciation.
12
Business codes: see 1040 Instructions page C-9. Use Sch CEZ expense list.
Discharges of qualified principal residence indebtedness may be forgiven. For
years 2007-2012.
Enter on Cap Gn Wkt -- not on Sch D. For date on inherited stock, type "I" in
13
date box. For various dates, type "V", note gain will be LT
Must have receipt, bank record, or credit card record.
Fair market value = the price paid in consignment or thrift shops
"neither deductible by the payer nor includible in income by the recipient."
Dependent; age < 17; Lived with & supported by taxpayer > half year (counting 51
temporary absences like school); US citizen or national or resident alien;
Younger than taxpayer, unless permanently & totally disabled; Son, daughter,
adopted child, foster child, brother, sister, stepbrother, stepsister, or
descendant of any of them; (CTC checkbox Main Info is automatically checked
if qualified.). See G-8 for divorced.
Refundable; Taxable earned income > $3000 or 3 or more children
65
DC checkbox Main Info; Child < 13 or disabled; Must be while taxpayer works
48
or looks for work; Must have earned income; Cannot be paid to another
dependent or to a child under age 19. Line 2c of form 2441 refers to amt paid in
this tax year.
Child can have $1900 investment income without paying at parents' rate (p 2 in 7-8
pub 4555)
To get MFJ carry-forward data from prior year for a primary taxpayer who died,
start with the deceased taxpayer's SSN. On Main Info sheet, switch surviving
spouse's SSN to primary. Put name of surviving spouse or authorized filer on
"Name line 2" above address. Date of death above question on Presidential
Election Campaign.
Except for children, income < $3650. Can be a non-relative living 12 mo in the
6
household (C-3 #2b) or relative not living with you (list on C-5 #1).
Form 8888 if in two or more accounts
73
Follow examples glued on p 2-6.
9
16
17
1/13/2010
Item to Enter
Earned income credit
with a "qualifying" child
Where to Enter in TaxWise
Sch EIC Wkt
Earned income credit
without a "qualifying" child
Sch EIC Wkt
H-1/5,
6-3
form 8863
G-3/4
5-3
Economic recovery payments $250
Education credit
2
TaxWise Quick Guide
Pub 4012
H-1/5,
6-3
(Note: Use Part I of form 8863 for
AOC, Part II only for students
attending school in a Midwestern
disaster area, & Part III for
Lifetime.)
Educator expenses
1040 Wkt2
Elderly or disabled credit
auto calc Sch R & Main Info
Employee expenses unreimbursed
sch A line 21Bus. Exp link
Highlights & Notes
1040 SchA
Valid SSN; US citizen or resident alien; Cannot file separately (MFS);
64a
Investment income <$3100; AGI <$35,463 ($40,463 MFJ) with one child or
<$40,295 ($45,295 MFJ) with two or <$43,279 ($48,279 MFJ) with > two; Not
file form 2555; Child <19 or full-time student <24 or totally disabled; OK not
dependent; Son, daughter, adopted child, foster child, brother, sister,
stepbrother, stepsister, or descendant of any; Lived with taxpayer in the US >
half year (counting temporary absences like school); Child not married or
married & dependent of taxpayer; Cannot be qualifying child of another
taxpayer (Support is not an issue.)
242… Valid SSN; US citizen or resident alien; Cannot file MFS; Investment income < 64a
$3100; AGI < $13,440 ($18,440 MFJ); Age 25-64; Lived in US > half year; Not
file form 2555; Cannot be dependent or qualifying child of another; (Could have
a nonqualifying child). Max = $457
86,93,262 not taxable. Reported on Sch M if Sch M is used for a credit.
49
238… see also Tuition…; For taxpayer or dep; ed in 2009 or first 3 months of 2010;
MAGI<$60,000 ($120,000 MFJ) for Life; MAGI<$90,000 ($160,000 MFJ) for
American Opportunity Credit (Hope expanded); Not file MFS; AOC credit first 4
years; AOC usually better (100% first 2000, 25% next 2000). Now includes
books, supplies, & equip (which must be paid to institution for Lifetime credit).
Not room/board, insurance, transportation, any paid by scholarship, or sports,
games, hobbies, noncredit course (unless required or job related)
Pub 17
242…
136
G-5
227…
F-3, F-4
178
Energy
F/S Tax Pd
Estimated vouchers for next year
1040ES
Farm income
out of scope
Foreclosure on principal residence - Form
Sch1099-A
D Wkt 2
Foreign tax credit
Link from line 47 to Form 1116
Gambling income
W2G
Gambling losses
W2G
Government retiree credit
Schedule M
Head of Household (HH)
Main Info
Health coverage tax credit
NA: out-of-scope
23
AGI <$17,500 ($25,000 both eligible); Nontaxable income <$5,000 ($7,500
MFJ)
Not helpful to taxpayer unless business & msc. expenses > than 2% of AGI
53
see Residential & nonbusiness energy credits
Type amt in line 16 "Estimate desired" & check box below to Credit All
Form near bottom of tree under Misc. Forms. Record any refund applied from
last year and quarterly payments. Don't forget State payment section.
Use "Add Form/Display Form List" in TaxWise & type 1040ES.
For NC, add form NC 40 Wkt
out of scope
Estimated tax to be paid from overpayment
1040ES
Estimated taxes paid
max $250, supplies & epuip "appropriate for your profession as an educator";
Must have been employed > 900 hours (STG); if >$250 Sch A line 21
6-2
D-4
5-4
87,108
259
10/13
6-4
262
B-1 to B-3
24,25
262
Enter amount (up to $300, $600MFJ) in Simplified General Election
Link from 1040 line 21 to W2G
Losses on Form W2G will transfer to Sch A to extend of winnings
Not for dependents or nonresident aliens. Not eligible if received a $250
economic recovery payment during 2009. Must be government pension or
annuity from work or service NOT covered by Social Security. (e.g., Until 1984,
employment by the Federal government was covered under the Civil Service
Retirement System (CSRS) and not by Social Security.)
Unmarried or considered unmarried Dec 31 (see B-3 step 4). Paid > half cost
of upkeep of home. Must have qualifying person defined on B-1.
out-of-scope
21
74
62
18
47
21
28
63
70
1/13/2010
Item to Enter
Home buyer credit
Home mortgage interest & points
Home mortgage interest to individual
Hybrid/alternative vehicle credit
Interest income
Investment interest as an expense
IRA contributions/deduction
IRA distribution to charity exclusion
IRA rollover
Where to Enter in TaxWise
out-of-scope
Sch A line 10
Sch A line 11
out of scope
Interest Stmt
form 4952
IRA Wkt
1099-R exclusion wkt #2
1099-R exclusion wkt #1
Jury duty pay
Jury duty pay given to employer
K-1
1040 line 21
1040 between line 35 & 36
Int on Int Stmt, Div on Div Stmt,
STCG line 5;LTCG line 12 SchD
A Detail
Schedule M
Long term care insurance
Making work pay credit
Medical/dental
Medicare Ins Premiums (B & D)
Note that D usually paid directly
Mileage rates
Mortgage forgiveness
Mortgage insurance premiums
3
TaxWise Quick Guide
Pub 4012
Pub 17
4-2
156…
162
A Detail
1040 Wkt1
161
121…
2-11
2-11
Plug-in electric vehicle
Public safety officer exclusion
Railroad retirement (blue)
Railroad retirement (green)
Real estate taxes deduction
form 8834
1099R exclusion #4
1040 Wkt 1
1099R
Sch A line 6
Refund options
Rental/Royalty income
Sch E
Residential & nonbusiness energy credits
form 5695 (Part I only)
max $6000 if age >49 ($5000 if <50). Nondeductible contributions on 8606
Enter amt rolled over within 60 days on line 1 of 1099-R Exclusion wkt. Then
check box on 1040 line 15 & F9 to link to explanation
95
95
2-1
4-4
10/13
6-4
4-3
2-12
Shown as write-in adjustment online 36 of printed 1040.
DO NOT USE THE K-1 FORM IN TAXWISE - In-scope only for K-1s reporting
interest, dividends or capital gains.
145-147 Limits auto calculated.
Fill in lines 10 & 11 on Form M. Requires valid SSN or spouse with one. Not for
262
dependents or nonresident aliens. Reduced by the $250 economic recovery
payment received during 2009 and/or the $250 government retiree credit
145…
160
Other expenses (safe dep box, investment
if >2 expense)
expenses, New Misc Deducts …
Other misc deductions
if >1 expense, New Misc Deducts …
Paper returns
Main Info
Interest Stmt
2210
out of scope
Follow examples glued on p 2-6.
2- 5
Sch A line 14
Penalty on early withdrawal
Penalty underpayment of est. taxes
Highlights & Notes
out-of-scope
Points from refinanced mtg spread over life of mtg unless used to remodel.
1040 SchA
67
10,11
11
53
8
14
32
15
15
21
36
8a
9
1
63
Mileage @ .24/mile
transfers automatically to A Detail.
If itemize, ask if pay Medicare drug plan directly (& if so, how much?)
business = .55, medical = .24, charity = .14 (pub 4555, p 4)
see Cancellation of debt
mortgage insurance required, issued, & paid after 2006. (pub 553, p 5) Limits
auto calc.
203…
203…
1
1
14
23
28
On Main Info below Dependents & Noncustodial Parents, for Type of Return,
check paper. When return completed, print 2 copies.
2- 5
56
258
2-12
2-12
F-2/3
142
13-6
2-14
260
30
If amount owed is >$1000, inform taxpayer IRS may send them a bill for any
76
penalty.
Rely on the manufacturer’s (or domestic distributor’s) certification. $2500.
53
Up to $3,000 exclusion for payments from pension for health insurance
16
Follow guidelines on page 2-12. Note RR has separate line on Wkt1.
20
Follow guidelines on page 2-12 of pub 4012.
16
auto calculated on 1040 lines 39-40. Added to standard deduction via Schedule 40b
L if not itemizing. MFJ – Up to $1,000. Single – Up to $500
Can buy U.S. Treasury marketable securities and savings bonds.
Out of scope with any depreciation. From 1040 Line 17 link to Sch E
17
30% credit, up to $1500. Primary residence only - insulation, exterior windows, 52
doors, metal roofs, "qualified" water heaters, furnaces, central AC, solar, fuel
cells, geothermal heat pump, certain asphalt roofs and stoves that burn
biomass fuel. Include labor for all except insulation, windows, doors, or metal
roofs. Accept manufacturer's certification of eligibility for credit. Part II of 5695
out of scope.
6
1/13/2010
4
TaxWise Quick Guide
Item to Enter
Retirement savings credit
Where to Enter in TaxWise
form 8880
after IRA Wkt
Pub 4012
G-6
5-5
Scholarship
Sale of home
1040 Wkt1
Sch D Wkt2
D-3
Self employment
Self employment tax
Simplified method exclusion
Sch CZ
automatically calculated
1099-R Exclusion Wkt
bottom of 1099-R in TaxWise
2- 8
2- 8
2-11
SSA-1099 = Social Security
1040 Wkt1
2-12
State tax refund
State Tax Refund Wkt
State return -- to remove
Main Info
Stocks
Cap Gn Wkt from Sch D
2- 9
Student loan interest deduction
Tax prep fees
Tax, income State & Local
Tax, other
Tax, personal property (e.g.vehicle)
Tax, real estate
Tax, sales on auto, boat, etc.
1040 Wkt2 (line 1)
Sch A line 22
W2's &1099's
Sch A line 8 other taxes
Sch A line 7
Sch A line 6
Sales Tax Wkt
E-3
Tax, self-employment one-half of
Tips, allocated
Tips, unreported
Tuition & fees deduction
Sch SE
Form 4137
Form 4137
1040 Wkt2 (near bottom of wkt)
3-1
2- 4
2- 4
Unemployment benefits
W-2
1099-G Wkt
W-2
Who should file?
Widow/widower
Main Info
Pub 17
260
107…
82…
2-2
footnote 1
Highlights & Notes
1040 SchA
AGI < $27,750 (41,625 HH, 55,500 MFJ); born before 1-1-1991; Not a
50
dependent or full-time student; Not military pensions.
Near top of form 8880, indicate if either spouse was full-time student.
In line 4 enter any distributions. If none, press F3 in total boxes.
Tax free IF degree candidate - except room, board, & travel
7
Can exclude $250,000 single or $500,000 MFJ (p 110).
13
If more, "Add Form/Display Form List" in TaxWise & type Sch D Wkt 2
see business income/expense. Self-employment tax is auto calculated.
12
Self-employment tax is automatically calculated.
27
Must check starting age & check the box related to starting date if applicable.
16
Calculate line 5 if amt not provided, based on monthly exclusion in line 3 times
number of months in prior years.
"Social security received this year" = box 5 of SSA-Form 1099
20
Enter "Medicare to Schedule A" & "Federal Tax Withheld” Ignore rest.
link from 1040 line 10. List state refund only if taxpayer itemized deductions (on 10
Sch A) last year and taxes were reduced because of deductions.
On Main Info under Dependents & Noncustodial Parents, for State Info check
box for not filing state return and delete the state beside full year resident.
4-3
Enter on Cap Gn Wkt -- not on Sch D. For date on inherited stock, type "I" in
date box. For various dates, type "V", note gain will be LT
136
MAGI < $75,000 ($150,000 joint), phaseout at $60,000 ($120,000 MFJ)
202
Not likely to have any tax prep fees since we're doing the taxes for free
150-151 automatically carried to Sch A line 5a
13
33
147-150.153
4-2
F-3
150,153
152… Amt transfers automatically to 1040 line 40 if not itemizing
150… Added to standard deduction via Schedule L from Sales Tax wkt if not
itemizing. For state or local sales or excise taxes for purchase of a new motor
vehicle after February 16, 2009 on the first $49,500 of the purchase price
209
56-57
56-57
138…
2-3
91
45
A-1/A-3
B-3
26
auto calculated
MAGI < $80,000 ($160,000 MFJ), subj to phaseout. Ed Credit usually better.
Courses do not have to be toward a degree or work-related. If credit, not this.
40b
22
5a
8
7
6
5b
27
12
7
34
1099-G Wkt is on the Forms Tree right after the W-2. Taxable above $2400
19
Find on tree after all schedules. Enter exactly as on paper W-2, even if mistakes.
Use decision chart pasted on A-4. If not filing, fill out form 9452 Filing Assistance Program.
Spouse died in 2007 or 2008. Entitled to file MFJ year spouse died. Not remarry this tax
year. Have son, daughter, stepson, or stepdaughter can claim as exemption. Paid > half
cost of keeping up main home for you and that child the entire year.
xxx - items out of scope for our program = 1040 lines 14, 18, 24, 25, 26, 28, 29, 35, 44, 52(forms 8396, 8839, part II of 5695), 53(all except Sch R), 57b, 59b. 70, 76.
Sch A lines 12,
17, 19. Sch C with inventory, Sch E with depreciation, Sch F. Forms 2106, 3903, 4797, 5329, 8396, 8615, 8839,.K-1 with more than rent/royalties.