TAX-AIDE Preview – NTTC Training Slides Tax Year 2013 NTTC Training – 20131

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TAX-AIDE

Preview – NTTC Training Slides

Tax Year 2013

NTTC Training – 2013 1

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Changes for Tax Year 2013

● Structure

●Content

● Format/Layout

NTTC Training – 2013 2

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Guidelines

●Highlight key points that reinforce what presenter is saying

● Short – key words and phases (not a teleprompter)

●Easy to read

NTTC Training – 2013 3

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Audience

●New volunteers No formal exposure to breadth of tax law

in Tax-Aide program No experience with TaxWise® software Computer literate

●Experienced volunteers

NTTC Training – 2013 4

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Structure

Definitions

Intake/Interview

Tax Law

NTTC Training – 2013 5

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Structure (cont)

TaxWise

Quality Review

Summary with taxpayer

NTTC Training – 2013 6

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Structure (cont)

Practice

NTTC Training – 2013 7

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Content

●Expanded

●2013 IRS Forms

●TaxWise Online screen shots

● Instructor notes

NTTC Training – 2013 8

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Layout

●This presentation format

●Consistent Headings, text and logo locations Margins, fonts, colors, bullets and

background

NTTC Training – 2013 9

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Retirement Income – IRAs and Pensions

Pub 4491, Pg 109

NTTC Training – 2013 10

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Types of Retirement Income

● Individual Retirement Arrangement (IRA) Distributions

●Pensions

●Annuities

● Social Security (covered in a separate lesson)

NTTC Training – 2013 11

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Intake and Interview

NTTC Training – 2013 12

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Interview

With 1099-R in hand – if IRA box checked:

●Type of IRA – Traditional

●Ever make non-deductible contributions?

●If early distribution, is there an exception to avoid additional tax?

●If rollover was made, was it timely?

●Was a qualified charitable distribution made?

NTTC Training – 2013 13

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1099-RWhat is this form telling you?

NTTC Training – 2013 14

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Notes Page for Previous Slide

NTTC Training – 2013 15

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Traditional IRA Distributions

●Required Minimum Distribution (RMD) Must take required minimum distribution

– age 70½ Must take by April 1 of year following Can avoid two distributions taxed in one

year by taking first in year turns 70½

Pub 17 Chapter 17

NTTC Training – 2013 16

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TaxWise Form 1099-R

NTTC Training – 2013 17

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Quality Review

●Check accuracy of 1099-R EIN Withholding Carry forward data updated?

● Is there an exception for early distribution

NTTC Training – 2013 18

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Exit Interview

●May need to explain 10% additional tax on early withdrawal

● Is taxpayer approaching 59½? 70½?

●Adjust withholding for next year W-4P W-4V for government payments

NTTC Training – 2013 19

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Let’s Practice in TaxWise

●Under direction of the Instructor: Open the return for Kent in TaxWise From Pub 4491W, enter IRA income for

Kent

NTTC Training – 2013 20

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Training Slides Preview

NTTC Training – 2013 21