Morris County AARP TaxAide
TaxWise Familiarization
Module NJ A01E
Morris County
AARP TAX-AIDE PROGRAM
Welcome to the Class of
Tax Year 2009
3/12/2016
NJ Integrated Training - 2007 Tax Season
2
OVERVIEW
WHO WE ARE
 INSURANCE COVERAGE
 ORIENTATION
 WHO YOU ARE

WHO WE ARE
Charitable, non-profit program
administered by AARP Foundation
 Free, nationwide confidential service
 Help low-to-mid income taxpayers
with special attention to age 60+
 Committed to high-quality service
 Answer tax questions/prepare returns
 Funded 1/3 AARP; 2/3 IRS TCE

INSURANCE COVERAGE

Travel accident insurance coverage if on TaxAide business

Supplemental secondary only

Notify District Coordinator ASAP
3/12/2016
NJ Integrated Training - 2007 Tax Season
5
ORIENTATION
Rest Rooms
 Lunch
 Name Tags – First Name Only in Sites
 Sign-in List
 Roster – Check off that information is
correct
 Put Your Names on Your Training Material

Agenda
Welcome & Introduction to MC TaxWise
(Nancy)
 Introductions
 Forms
 TaxWise Online Software Overview
 Practice Exercises
 Homework

Goal

Familiarize students with TaxWise Software
prior to Integrated Tax Law/ TaxWise
Training in December
◦ Open TaxWise Online using user ID and
Password
◦ Walk around the software
◦ Start a return
◦ Complete main information sheet
◦ Enter income types
◦ Schedules A & B
◦ Some NJ entries
Tell Us About Yourself
Name
 Home town
 Occupation

 Current or pre-retirement

Computer experience
◦ Computer Geek to I just do E-mail

Tax experience
◦ CPA

to I never did a tax return
What are your expectations of the AARP
TaxAide Program
Forms
Intake & Interview Form
 IRS Form 1040
 IRS Schedule A
 W-2 Wage & Tax Statement
 W-2G Gambling Winnings
 1099INT, 1099DIV, 1099R, SSA-1099

AARP Intake & Interview Form
Completed by the client
 Page 1 includes general information for
taxpayer, spouse and dependents
 Page 2 summary of income and
deductable expenses and tax credits
 Page 2 Quality review questions
 Page 2 retain data signature (not required
for 2009)
 For 2009 we will use IRS Intake Form

Intake Form Page 1
Intake Form Page 2
IRS Form 1040
Everyone files a 1040 or a version of the
1040 (1040A, 1040EZ, etc)
 Split up into 4 general areas

◦
◦
◦
◦
Taxpayer information
Income
Taxes & Credits
Payments/Refunds Due and Signature
Taxpayer Information
Information from Intake Sheet & Client
Interview
 Input into TaxWise on the Main Information
Sheet
 Includes

◦
◦
◦
◦
Personal information for taxpayer & spouse
Filing status
Dependent information
Exemptions
Form 1040 Page 1 Taxpayer
Personal Information
Information
Presidential Election
Campaign Question
Filing Status
Exemptions
Dependent Information
Income





All sources of income included in this section
Income derived from various forms usually
issued by employer, financial institution,
government agency, etc
Information from forms entered into the
respective form in TaxWise
TaxWise puts the appropriate values into the
1040.
Final line on page is “Adjusted Gross Income”
Income
1040 Page 1 Income
Adjustments to Income
Taxes & Credits Page 2
Starts with “Adjusted Gross Income”
 Deduct Itemized or Standard Deduction
 Deduct Personal Exemptions
 Arrive at “Taxable Income”
 Calculate Tax
 Alternative Minimum Tax (Out of Scope)
 Apply non-refundable tax credits
 Add other taxes
 Bottom line is “Total Tax”

1040 Page 2 Taxes & Credits
Taxes Calculated
Itemized or Standard
Deduction
Exemptions
Other Taxes
Nonrefundable Credits
Payments/Refund/Owe/Sign
Start with “Total Tax”
 Apply tax withheld and estimated
payments
 Apply refundable credits
 Bottom line

◦ A refund
◦ You owe
Direct deposit information
 Signature line

Payments/Refund/Owe/Sign
Refundable Credits
Pre-Paid Taxes
Refund
Owe
Signature Box
Schedule A Itemized Deductions
Everyone is allowed a standard deduction
 Test to see if greater than “standard
deduction”
 Includes Medical, Taxes, Mortgage Interest,
Charitable Contributions, Misc.
 Entered in TaxWise on Schedule A and
Schedule A Detail
 For this class we will use medical and
property tax deduction

Schedule A
Medical Expenses
Property Taxes
Mortgage Interest
Contributions
Misc Deductions
W-2 Wage and Tax Statement
Employer issues to employee for tax year
 Employer identification information
 Employee identification information
 Wages earned
 Taxes withheld
 All information to be copied to TaxWise
EXACTELY as shown on the form
 TaxWise puts information entered in proper
place

W-2 Wage & Tax Statement
NJSUI
NJSDI
W2G
Issued by gambling establishment to report
gambling winnings
 Payer and payee information
 Amount won
 Federal & state taxed withheld
 Type & date of wager
 Copy information from W2G to TaxWise
W2G
 TaxWise enters amount on 1040 line 21
 Label line 21 “Gambling”
 Gambling loses on schedule A

W-2G
Payer & Payee
Information
Winnings
Type Wager
Taxes Withheld
1099-DIV, 1099-INT
Received from financial institution for
dividends and/or interest received
 Information from these forms are entered
in TaxWise on Schedule B Interest or
Dividend Statement
 TaxWise puts information into Schedule B
Interest & Ordinary Dividends and then
to 1040.

1099-DIV
1099-INT
1099-R
Distribution from pension, IRA, annuities,
etc.
 Enter information in TaxWise 1099R
 TaxWise puts the proper information on
the correct 1040 lines

1099-R
If taxable amount not
determined, there is
more to do
Distribution Codes on Back or
in Help
SSA-1099
Amount from Box 5 is input into TaxWise
1040 Wkt 1
 Medicare Part B entered into TaxWise
1040 Wkt 1
 Medicare Part D entered into Schedule A
Detail
 Box 6 Federal Income Tax Withheld into
1040 Wkt 1

SSA-1099
Medicare
Part B
If there is Medicare
Part D it is entered
into Sch A Detail
Box 5 Amt to Wkt 1
Federal
Tax
Withheld
TaxWise Flow Chart
TaxWise Online
Web site for training:
https://twonline.taxwise.com/training/
.Client Name: 2106185
.User Name Student: STUDENTXX
.User Name Coach: COACHXX
.Password: Same as user name for first
logon. Reset your Password.

Social Security Number Key

SSN in the problems are shown as:
◦ ###-XX-YYYY

### = numbers shown in problem
◦ Example:123
XX=numbers at the end of your user ID
 YYYY= 0910

Caution

Anything you enter is TWO can be
viewed by instructors and coaches