LAW-L1 – Kent Refund Monitor

Filing Status: Married Filing Jointly

12-13-2014 TY2013 v0.7c

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 2013	4012 page 2014	Notes
0	Intake Various Notes							15	15	Verify and correct everything in Intake Parts II, III, IV, V Complete the shaded area of Intake Part II Determine filing status Verify with Mentor
1a	Intake Notes 1, 3, 4, 5, 7	Main Info						B-1 C-5 C-10	B-1 C-5 C-10	BP: List dependents from youngest to oldest 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
1b	Intake	NJ 1040 Pg1								Hint: Use Municipal Code lookup tool
1c	Note 2, 3, 11	NJ 1040 Pg 2								Hint: Is there a dependent attending college under 22?
1d	Intake	Prep Use						C-15	C-15	Do not enter anything on line 14 at this point
2	W-2	W2	Jefferson Independent School District	13,817	5,237	5,317	1,343	D-5	D-6	Hint: Check that Sch A, Box 5a = 816
3a	W-2	W2	Americus Petroleum	41,951	3,452	33,451	1,890	D-5	D-6	Hint: Check that Sch A, Box 5a = 2,638
3b	W-2	NJ 2450 TP Scratch Pad	Americus Petroleum	41,951	3,452	33,451	1,890			Hint: See NJ Special Handling for Disability Private Plan
4	Text	Sch B	Campbell Mortgage	44,733	2,980	36,233	1,803	D-7	D-8	Hint: Look on Preparer page Lookup Tool to see where to enter this
5	1099-INT	Interest Stmt	Kendall Federal Credit Union	45,143	2,940	36,643	1,796	D-8	D-9
6	1099-INT Text	Interest Stmt	Gordon Investment Services	45,143	2,940	36,643	1,796	D-8	D-9	Hint: Look at NJ Special Handling for exempt interest and savings bonds
7	Broker Stmt	Interest Stmt	ZYX Investments (Interest only)	47,721	2,925	36,955	1,790	D-8	D-9	BP: Use separate lines on Interest Stmt
8a	Broker Stmt	Dividend Stmt	ZYX Investments (Dividends only)	48,022	2,925	37,256	1,785	D-9	D-10
8b	Broker Stmt	1116 Pg 1	ZYX Investments (Dividends only)	48,022	2,929	37,256	1,785	G-2	G-2	Hint: May need to manually add form 1116 Hint: Do NOT worry about red stuff on form 1116 below “Simplified Limitation Election”
9a	1099-G	1040 Pg 1	NJ Div of Tax	48,309	2,899	37,256	1,785			Hint: See NJ Special Handling, State Income Tax Refunds
9b	1099-G	St Tax Refund	NJ Div of Tax	48,309	2,899	37,256	1,785			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	2,345	39,625	1,744	D-11	D-13	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	2,470	39,556	1,744	D-13	D-15	Hint: See Pub 4012 TY2013 Notes for additional info on filling out Cap Gn Wkt
12	Broker Stmt	Cap Gn Wkt	ZYX Investments (Capital Gains only)	47,442	2,645	39,556	1,744	D-13	D-15	Hint: Use INHERIT for Date Acquired for inherited stocks
13a	1099-R	1099R	Saulk Trust Company	48,280	2,565	39,556	1,744	D-19	D-19
13b	1099-R	NJ IRA Wkt	Saulk Trust Company	48,280	2,565	39,556	1,744			BP: Do NJ IRA Wkt now Hint: Copy #1 Hint: Check that NJ 1040 Line 19a = 838
14a	Text 1099-R	1099R IRA Rollover	Yale Security IRA	48,280	2,565	39,556	1,744	D-18 D-19	D-19 D-20	BP: Do IRA Rollover explanation (1040 line 15b) now
14b	Text 1099-R	NJ IRA Wkt	Yale Security IRA	48,280	2,565	39,556	1,744			BP: Do NJ IRA Wkt now Hint: Add new NJ IRA Wkt – Copy #2
15	1099-R	1099R	Defense Finance & Accounting SVC	49,480	2,445	39,556	1,744	D-18 D-19 D-23	D-19 D-20 D-26	Hint: See NJ Special Handling for Military Pensions Hint: Check that NJ 1040 Line 19a = 838
16a	Text 1099-R	1099R	Stillman Pension Fund	67,770	1,492	39,556	1,744	D-19 D-21 D-23	D-19 D-23 D-26	Hint: Use Simplified Method section Hint: Fill in prior year(s) recovery amount Hint: Check that NJ 1040 Line 19a = 19,128
16b	Text 1099-R	Scratch Pad	Stillman Pension Fund	67,770	1,492	39,556	1,744			Hint: See NJ Special Handling for non-taxable pensions on line 19b
17	K-1	Sch E Pg 1	Black Jack Production Company	68,820	1,334	40,606	1,726	D-24	D-27	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	1,072	40,606	1,726
19	SSA-1099	1040 Wkt1 Scratch Pad	Social Security	83,000	(316)	39,603	1,744	D-22	D-25	BP: Medicare Part B & D on Scratch Pad
20	W-2G Text	W2G	New Jersey Lottery	84,200	(496)	39,603	1,780			Hint: Need to add W2G (if not in tree) Hint: See NJ Special Handling for NJ Lottery BP: Include corresponding losses Hint: Check that Sch A, Box 5a = 2,674
21	Text	1040 Wkt2	Classroom supplies	83,960	(458)	39,603	1,780	E-3 E-5		Hint: Need to add 1040 Wkt2 (if not in tree)
22	Text	1040 Pg 1	Alimony to ex	80,360	82	36,003	1,843	E-3 E-5	E-3 E-5
23	Text	IRA Wkt	IRA Contribution	73,860	1,057	36,003	1,843	E-5	E-3 E-5	Hint: May need to add IRA Wkt
24	Text	1040 Wkt2	Student Loan Interest	73,592	1,094	36,003	1,843	E-4 E-5	E-4 E-5
25a	Text	Sch A A Detail	Itemized Deductions	73,592	1,402	28,478	1,975	F-5	F-5	Hint: Some items in text may not be deductible…
25b	Text	NJ 1040 Pg 3	Worksheet F	73,592	1,402	28,478	2,025
25c	Note 12	NJ 1040 Pg 3	Line 37b	73,592	1,402	28,478	2,025			Hint: Box on line 37b needs to be checked if homeowner on 10/01/2013
26	Text	2441 Pg 1	Maryville Day Care Center	73,592	1,622	28,478	2,025	G-3	G-3
27	1098-T etc.		Education Credits	73,592	1,622	28,478	2,025			BP: Save until later to make sure comparison involves all factors
28	Text	5695 Pg 2	Residential Energy Improvements	73,592	1,840	28,478	2,025	G-10		Hint: May need to add 5695
29	Text	F/S Tax Pd	Estimated payments	73,592	2,270	28,478	2,215			Hint: Ctrl-Space or F3 or Toggle Estimated state balance due line (if red) Hint: See NJ Special Handling page for F/S Tax Pd worksheet Hint:  Check that Sch A, Box 5a = 2,864
30	Note 8		Inheritance	73,592	2,270	28,478	2,215			Hint: No tax implications to recipient for inheritance
31	Note 13	Sch D Pg 1	Capital Loss carryover	73,592	2,270	28,478	2,215			Hint: Check that Sch D Line 15 = -3,410
32	Note 9	Sch B	still red - resolve	73,592	2,270	28,478	2,215
33	Note 3	Diagnostics Sch EIC	Resolve Diagnostics	73,592	2,270	28,478	2,215	N-12 I-6	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		73,592	2,270	28,478	2,215	N-12	N-12	No Errors
35x	1098-T etc		Try as adjustment Kendra and Kara	70,524	2,765	28,478	2,215	J-2	J-2
35x	1098-T etc		Try as LL for both Kendra and Kara	73,592	2,884	28,478	2,215	J-2	J-2	Hint: Need to add separate 8863 Pg 2 (not Pg 1) for each student
36	1098-T etc	8863 Pg 2 - Kendra Scratch Pad 8863 Pg 2 - Kara	Kendra as AOC Kara as LL	73,592	4,647	28,478	2,215	J-2	J-2
37	Note 10	NJ 1040 Pg 3	Line 45 Use Tax	73,592	4,647	28,478	2,151			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
38	Note 6	Main Info 1040 Pg 2	Enter Routing number and account number	73,592	4,647	28,478	2,151	K-1	K-1
39	Note 9	NJ DD Wkt	Still red – resolve	73,592	4,647	28,478	2,151
40		Diagnostics		73,592	4,647	28,478	2,151	N-12	N-12	No errors
41			Create e-File(s)	73,592	4,647	28,478	2,151	N-12	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