1. Training Specifics Friday

2. NJ Division of Taxation What’s new? FLI in box 14 (family leave insurance ) Jim Gordon 609-633-6015 Jacob Foy 609-633-8899 www.state.nj.us/treasury/taxation

3. New Fed 1040

4. New Harry Bonfanti INTAKE SHEET

5. New Schedule L Schedule M

6. Voice Over Slides Demo NJ Property Tax Reimbursement Joe McFadden

7. Required Problems Moore FlemingSterling AARP requires we do 4 problems minimum Plus pass the test Do them on 2008 software Mentors review the data entry 100% correct!!!!!!!!

8. Required Problems cont’d Assign them as homework Use class time for other training Yes answer keys are in the back of the book, but it is important that the got the answers in an acceptable way. Add NJ components to finish exercise

9. Proficiency Problem Aka Jones problem Goal: To ensure all volunteers are 100% proficient in data entry, esp NJ. There are some potential pitfalls No one should proceed to a site till they are 100% accurate on this NJ example Great final exercise!!!!

10. Proficiency Problem Suggested format – Do in class, independent of everyone else – It may take more than an hour – Another measure of proficiency will be the time it takes them to complete problem, not the how fast, but the how long

11. Workbook Comprehensive Problem Good old Dalhart is now Kent Same old scenario Should not count as one of the 4 required Incorporate it in your training of new volunteers Best done only in class as it is easy to get out of order

12. Lesson Plans AARP suggested NJ reworked – All on website Start there and rework to suit

13. Website Our joint source of information Software downloads Power point presentations Additional information Possible inserts Updates Warnings

14. Tax Law Specifics need to revisit K-1 Schedule E 1099A/ 1099C IRAs with contributions 8606 Other States PTR teach skills needed QR at site Balance Due

15. K-1 Simple ones Interest, div, cap gains When in doubt, stop! Text 12-1 to 2 PBT K-1 ppt on website

16. Schedule E Nothing has changed We do not do rental property no matter what In text it jumps from K-1 to Sch E – Please observe Schedule E is for military, not us

17. Debt Cancellation Start with sale of home Lead into cancellation of debt and Abandonment of property Everyone needs to learn this Chapter 10 in text, good explanation PBT 2.4 Several powerpoints on web

18. IRAs Will see more where tp made contributions and are now taking distribution PBT slides cover nicely How to use 1099R, and fill out 8606 Requires complete data

19. 1040 X New paper format Change in software? Probably still have to mark the same little box on Fed and NJ Make a point of checking this out later

20. Other States New York NY only non resident returns, ie live in NJ If it looks tricky, don’t do it! Limit preparers to those few who have studied the law and understand the procedure PBT 2.5 Any other states? NO

21. PENNSYLVANIA If NJ resident and W-2 has PA w/h 1. must request refund of PA tax (0 taxable income line 1a, w/h line 13, copy of W-2, copy of NJ resident return)paper return to mail 2.must file NJ return using PA wages and 0 withholding

22. Pennsylvania cont’d Additional consideration Philadelphia wage tax Now must fill out “taxes to other jurisdictions” section of NJ tax return

23. PTR Reaching more each year Train on filling out PTR-1 and PTR- 2 Make sure preparers know the rules for who files, when, what’s required to file (cribsheet in 4012?) Be sure taxpayer has a copy, preferably in tax envelope When completed, it must have QR Mark sign-in sheet state only and QR Issues? Jim or Jacob can often solve PBT 1.32, 1.33

24. Balance Due New this year, software will not include penalty for underpayment Mark up 4012 (p.13-7)to include: – Choices – 9465 procedure – Fees mentioned in text not 4012 – IRS.gov search “OPA” to set up payments

25. Be Aware Pensioners may have insufficient withholding and for the first time in years, may owe or not receive their nice refund