AARP Tax-Aide Scope
What's Out
What's In
NY3 Instructor Training Albany 2009
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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)
NY3 Instructor Training Albany 2009
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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
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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
NY3 Instructor Training Albany 2009
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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
NY3 Instructor Training Albany 2009
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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
NY3 Instructor Training Albany 2009
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In Scope
·
·
·
·
·
·
8880 (Qualified Savings Credit)
8812 (Additional Child Tax Credit)
8863 (Education Credits)
9465 (Installment Agreement)
8379 (Injured Spouse)
1040X (if trained)
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In Scope
· Limited Schedule K-1 that provides
information only for Schedule B or D (if
trained)
· Contributions to Charities from an IRA
NY3 Instructor Training Albany 2009
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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
NY3 Instructor Training Albany 2009
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“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
10
for education
NY3 Instructor Training Albany 2009
“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
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“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
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“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
13
NY3 Instructor Training Albany 2009
“Refer to Professional Tax
Preparer”
•
•
•
•
Casualty & Theft Loss
Charitable contributions > 20% of
AGI
Form 8283 non-cash
contributions > $500
Household employment taxes
NY3 Instructor Training Albany 2009
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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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