1. TAX-AIDE Changes to Arizona Tax Law - 2014 Instructor Workshop - 20141

2. TAX-AIDE 2014 Tax Forms Take on a New Look ● Easier to follow Don’t need to go to separate schedules for additions and subtractions. Exemptions information on Page 1 Instructor Workshop - 20142

3. TAX-AIDE Standard Deduction Indexed for Inflation - 2014 ● Single or married filing separate - $5,009 ● MFJ or HH - $10,010 Instructor Workshop - 20143

4. TAX-AIDE Subtraction for Net Long-Term Capital Gains ● You may take a subtraction from AZ gross income for 20% of any net long- term capital gain included in AGI derived from assets acquired after 12/31/11 Instructor Workshop - 20144

5. TAX-AIDE New Voluntary Gift on Tax Return for Sustainable State Parks and Roads fund ● You may give some or all of your refund ● Funds will aid the state to operate, maintain and make capital improvements to buildings, roads, parking lots, highway entrances and any related structure used to operate state parks. Instructor Workshop - 20145

6. TAX-AIDE Subtraction for Long-Term Care Insurance Premiums ● Beginning in 2013, you may subtract the amount of qualifying premium costs for long-term care insurance as long as you are not claiming itemized deductions. Instructor Workshop - 20146

7. TAX-AIDE Subtraction for AZ Long-Term Health Care Savings Accounts ● Beginning in 2013, you may subtract amounts you paid into long-term health care savings account established under AZ law Instructor Workshop - 20147

8. TAX-AIDE Subtraction for 529 College Savings Plans ● Single or HH - $2,000 ● MFJ - $4,000 Instructor Workshop - 20148

9. TAX-AIDE Credit for Contributions to Charities that Provide Assistance to the Working Poor ● Beginning in 2013, you are no longer required to itemize deductions in order to claim a credit for contribution make to a qualifying charitable organization ● Total maximum credit $400 for single taxpayers and $800 for married taxpayers ● See AZ Form 321 for more information Instructor Workshop - 20149

10. TAX-AIDE Credit for Contribution to Private School Tuition ● For 2014, the amount of the allowable credit for contributions to private school tuition organizations adjusted for inflation. ● Single/HH - $528 maximum ● MFJ - $1,056 maximum ● See AZ Form 323 for more information Instructor Workshop - 201410

11. TAX-AIDE Credit for Contributions Made to Certified School Tuition ● For 2014, amount of allowable credit for contributions to certified school tuition organizations adjusted for inflation ● Single/HH - $525 ● MFJ - $1,056 ● See AZ Form 348 for more information Instructor Workshop - 201411

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13. TAX-AIDE 2009 Unemployment ● In May 2010, after tax season, AZ decided not to recognize the Federal first $2400 in unemployment compensation as tax free ● Taxpayers affected by this are now receiving tax bills from AZ. ● No action required on our part. Just explain to taxpayers and indicate that they should pay. Instructor Workshop - 201413

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17. 17 AZ Returning Counselor Training 2013 For Identity Theft Protection  Prepare and e-file a Federal return for PTC and ET returns.  If Federal return is accepted, SSN is Ok for the present  If Federal return rejected for duplicate SSN taxpayer will have to contact IRS  Side benefit – Info will carry forward 17

18. 18 AZ Returning Counselor Training 2013 Process for AZ ET  Prepare 1040 and AZ140, if no income enter $1 in interest statement  Get the red out and run diagnostic  QR, Create e-file(s) and have TP sign 8879 and AZ8879 18

19. 19 AZ Returning Counselor Training 2013 Process for AZ PTC  Prepare 1040 and AZ 140, if no income enter $1 in interest statement and enter property tax paid in Sch A.  Open AZ PTC pg 1 and complete form  Open AZ 140 pg1 and check [No] on [Do you want to electronically file this return]  Run diagnostics  QR and create e-file (will be for 1040 only)  Print 1040, 8879, AZ140(2) and AZ PTC(2)  Sign 8879, sign and mail AZ140 & AZPTC with Property Tax receipt

20. TAX-AIDE QUESTIONS/COMMENTS? Instructor Workshop - 201420