AARP TaxAide Scope Out of Scope In Scope

AARP Tax-Aide Scope • Out of Scope • In Scope • Refer to Paid Tax Preparer NY 3 Instructor Training 2010 1

In Scope • • 1040 with Schedules A, B, and D Sched C w/up to $10 K expenses • No employees • No inventory • No losses • No depreciation • No returns, allowances, cost of goods sold Schedule E (Royalty income) 1099 MISC w/box 7 nonemployee comp reported on NY 3 Sched C/CEZ Instructor Training 2010 2

In Scope • • 1099 Misc (box 1, 2 - rents, royalties, with no expenses or depreciation - reported on Sched E 1099 Misc box 3 “Other Income” reported on 1040 Line 21 2441 Child & Dependent Care 8283 Section A Part 1 non-cash contribution to charity > $500 < $5000 NY 3 Instructor Training 2010 3

In Scope • • 8880 Qualified Savings Credit 8812 Additional Child Tax Credit 8863 Education Credits 9465 Installment Agreement 8379 Injured Spouse 1040 X Amended Return Sched K-1 only for interest, dividends, capital gains distributions and royalties (Sched B, D, E) NY 3 Instructor Training 2010 4

In Scope • Cancellation of Debt 1099 -A and/or 1099 -C and Form 982 if certified • Health Savings Accounts Form 1099 SA and Form 8889 if certified Note: 8606 – 4491 is unclear – will have to research NY 3 Instructor Training 2010 5

Out of Scope Schedule C with > $10, 000 Expenses Complicated/Lengthy Schedule D (Capital Gains and Losses) Schedule E (Rental Property) with expenses and/or depreciation NY 3 Instructor Training 2010 6

Out of Scope • FORM: 2106 (Employee Business Expense) 3903 (Moving Expenses) 8615 (Minor’s Investment Income) Innocent Spouse Schedule K-1’s that involve depreciation Reporting Savings Bond interest if accrued yearly � Casualty Losses � AMT NY 3 Instructor Training 2010 7

“Refer to Professional Tax Preparer” • See Word Document “SCOPE FROM 4491” NY 3 Instructor Training 2010 8

REMEMBER • To prepare an accurate return, • AARP Tax Counselors can determine if a return is too complicated • or outside the scope of their training NY 3 Instructor Training 2010 9