LAW-L1 – Kent Refund Monitor

Filing Status: Married Filing Jointly

11-08-2013 TY2012 v1.0-2

 

Step

TP Form/
Note(s)

TW Form

Payee/Name

Fed 37
AGI

Fed 74/76
Refund

NJ 38
Taxable

NJ 56/66
Refund

4012
page
2012

4012
page
2013

Notes

0

Intake
Various Notes

 

 

 

 

 

 

10

15

Verify and correct everything in Section A

Fill in Section B

Verify with Mentor

1

Intake etc.
Notes 2, 3, 4, 5, 7

Main Info
Prep Use

 

 

 

 

 

B-1
C-4
1-8

B-1
C-5
C-10

Hint: Use Code 1 (or 2) if dependent is “qualifying child” per IRS rules; use code 3 if dependent is “qualifying relative”

Hint: Check EIC box for all dependents who might qualify for EIC

2

W-2

W2

Jefferson Independent School District

13,817

5,156

6,317

1,327

2-3

D-5

 

3

W-2

W2
NJ 2450 TP
Scratch Pad

Americus Petroleum

41,951

3,195

34,451

1,839

2-3

D-5

Hint: See NJ Special Handling for Disability Private Plan

BP: Update NJ 2450 for PP info now

4

Text

Sch B

Campbell Mortgage

44,733

2,895

37,233

1,786

2-4

D-7

Hint: Look on Preparer page Lookup Tool to see where to enter this

5

1099-INT

Interest Stmt

Kendall Federal Credit Union

45,143

2,855

37,643

1,779

2-5

D-8

 

6

1099-INT
Text

Interest Stmt

Gordon Investment Services

45,143

2,855

37,643

1,779

2-5

D-8

Hint: Look at NJ Special Handling for exempt interest and savings bonds

7

Broker Stmt

Interest Stmt

ZYX Investments (Interest only)

47,721

2,840

37,955

1,772

2-5

D-8

BP: Use separate lines on Interest Stmt

8

Broker Stmt

Dividend Stmt
1116 Pg 1

ZYX Investments (Dividends only)

48,022

2,844

38,256

1,767

2-6

5-2

D-9
G-2

Hint: May need to manually add form 1116

Hint: Do NOT worry about red stuff on form 1116 below “Simplified Limitation Election”

9

1099-G

St Tax Refund

NJ Div of Tax

48,309

2,814

38,256

1,767

 

 

Hint: See NJ Special Handling, State Income Tax Refunds

Hint: Karl was over 65 last year

10

1099-MISC

Sch C Pg 1
Sch C Pg 2
1099 MISC
Scratch Pad

Pratt Medical Centers, Inc. (plus other)

50,511

2,265

40,625

1,726

2-7

D-11

Q: How would you lookup Business code at site (i.e. when not supplied as part of scenario)?

Q: Do you need to fill in line E, Business address?

Hint: Link from line 1 to add 1099-MISC and also link from same box to add Scratch Pad to document non-1099-MISC income

11

1099-B

Cap Gn Wkt

Pelrum Brokerage Service

49,212

2,428

40,556

1,727

2-10

D-13

Hint: See Pub 4012 TY2011 Notes for additional info on filling out Cap Gn Wkt

12

Broker Stmt

Cap Gn Wkt

ZYX Investments (Capital Gains only)

47,442

2,603

40,556

1,727

2-10

D-13

Hint: Use INHERIT for Date Acquired for inherited stocks

13

1099-R

1099R

Saulk Trust Company

48,280

2,523

40,556

1,727

2-17

D-19

 

14

Text
1099-R

1099R

IRA Rollover

Yale Security IRA

48,280

2,523

40,556

1,727

2-17

D-19

BP: Do IRA Rollover explanation (1040 line 15b) now

15

1099-R

1099R

Defense Finance & Accounting SVC

49,480

2,403

40,556

1,727

2-17

D-19

Hint: See NJ Special Handling for Military Pensions

16

Text
1099-R

1099R

Stillman Pension Fund

67,770

1,385

40,556

1,727

2-17
2-18

D-19
D-21

Hint: Use Simplified Method section

Hint: Fill in prior year(s) recovery amount

17

K-1

Sch E Pg 1

Black Jack Production Company

68,820

1,227

41,606

1,709

2-21

D-24

Hint: Need to add Sch E (see Special Topic document available from Preparer page)

Hint: Do NOT use K-1 form in TW!

18

1099-G

1099G Wkt

NJ Department of Labor

71,370

965

41,606

1,709

 

 

 

19

SSA-1099

1040 Wkt1
Scratch Pad

Social Security

83,000

(423)

40,603

1,726

2-19

D-22

BP: Medicare Part B & D on Scratch Pad

20

W-2G

Text

W2G

New Jersey Lottery

84,200

(603)

40,603

1,762

 

 

Hint: Need to add W2G (if not in tree)

Hint: See NJ Special Handling for NJ Lottery

BP: Include corresponding losses

21

Text

1040 Wkt2

Classroom supplies

83,960

(565)

40,603

1,762

 

E-3
E-5

Hint: Need to add 1040 Wkt2 (if not in tree)

22

Text

1040 Pg 1

Alimony to ex

80,360

(25)

37,003

1,825

3-1

E-3
E-5

 

23

Text

IRA Wkt

IRA Contribution

74,360

875

37,003

1,825

 

E-5

Hint: May need to add IRA Wkt

24

Text

1040 Wkt2

Student Loan Interest

74,092

912

37,003

1,825

 

E-4
E-5

Hint: May need to add 1040 Wkt2

25

Text

Sch A
A Detail

Itemized Deductions

74,092

1,257

29,491

1,957

4-2
4-4

F-5

Hint: Some items in text may not be deductible…

26

Text

2441 Pg 1

Maryville Day Care Center

74,092

1,477

29,491

1,957

5-3

G-3

 

27

1098-T etc

 

Education Credits

74,092

1,477

29,491

1,957

 

 

BP: Save until last to make sure comparison involves all factors

28

Text

5695 Pg 2

Residential Energy Improvements

74,092

1,695

29,491

1,957

 

G-10

Hint: May need to add 5695

29

Text

F/S Tax Pd

Estimated payments

74,092

2,125

29,491

2,147

 

 

Hint: Ctrl-Space (or F3) state balance due line (if red)

Hint: See NJ Special Handling page for F/S Tax Pd worksheet

30

Note 8

 

Inheritance

74,092

2.125

29,491

2,147

 

 

Hint: No tax implications to recipient for inheritance

31

Note 13

Sch D Pg 1

Capital Loss carryover

74,092

2,125

29,491

2,147

 

 

 

32

Note 9

Sch B

still red - resolve

74,092

2,125

29,491

2,147

 

 

 

33

Note 3

Diagnostics

Sch EIC

Resolve Diagnostics

74,092

2,125

29,491

2,147

6-5

N-12
I-6

Hint: Can click on diagnostic error to go to worksheet

Hint: Answer Sch EIC questions in order and only if red

34

 

Diagnostics

 

74,092

2,125

29,491

2,147

 

N-12,
I-6

No Errors

35x

1098-T etc

 

Try as adjustment
Kendra and Kara

71,024

2,620

29,491

2,147

5-3

J-2

 

36x

1098-T etc

 

Kendra as LL
Kara as LL

74,092

2,739

29,491

2,147

5-3

J-2

 

36

1098-T etc

8863 Pg 2 - Kendra
Scratch Pad
8863 Pg 2 - Kara

Kendra as AOC
Kara as LL

74,092

4,502

29,491

2,147

5-3

J-2

 Hint: Need to add separate 8863 Pg 2 (not Pg 1) for each student

37

Note 6

Main Info
1040 Pg 2

Enter Routing number and account number

74,092

4.502

29,491

2,147

 

K-1

 

38

 

Diagnostics

 

74,092

4.502

29,491

2,147

 

N-11
I-6

No errors

39

 

NJ 1040 Pg1

 

74,092

4,502

29,491

2,147

 

 

Hint: Follow NJ Special Handling line-by-line for NJ-1040

Hint: NJ Municipal codes available in TWO Help or in NJ 1040 Instructions or via Preparer Page

40

Note 2
Note 3
Note 11

NJ 1040 Pg 2

 

74,092

4,502

28,491 

2,165

 

 

 

41

Note 10
Note 12

NJ 1040 Pg 3

Through line 45

74,092

4,502

28,491

2,101

 

 

Hint: NJ 1040 Instructions p 36 has a table with standard amount to be used for Use Tax entry (line 45)

Hint: NJ Gross Income is on line 28

42

Line 40 deductions list

NJ 1040 Pg 3

 

74,092

4,502

28,491

2,151

 

 

Hint: Property tax from Sch A is automatically shown in NJ-1040 Sch F worksheet, but actual amount needs to be manually entered in correct box

43

Note 9

NJ DD Wkt

Still red – resolve

74,092

4,502

28,491

2,151

 

 

 

44

 

NJ IRA Wkt 01

Still red – resolve

Saulk

74,092

4,502

28,491

2,151

 

 

Hint: Need set Copy Number for each IRA

BP: OK to leave unknown values red in IRA Wkt

Q: NJ-1040 line 19 changed – why didn’t line 38 change?

45

 

NJ IRA Wkt 02

Still red – resolve

Yale

74,092

4,502

28,491

2,151

 

 

Hint: Need to add IRA Wkt(s) and set Copy Number for each IRA

BP: OK to leave unknown values red in IRA Wkt

46

 

Diagnostics

 

74,092

4,502

28,491

2,151

 

N-12

No errors

47

 

 

Create e-File(s)

74,092

4,502

28,491

2,151

 

N-12

Ask Mentor for Quality Review

 

Click on links in TW Form column to see screen shot of completed TWO form (you may need to click on the picture to enlarge it)

 

Printed return – click here

 

Scenario Writeup – click here