AARP Foundation Tax-Aide

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Presentation transcript:

AARP Foundation Tax-Aide Introduction to Federal Income Tax Law NTTC Training – 2014

Tax Law Basics All income is taxable, No deduction is allowed, unless the law says it is not No deduction is allowed, unless the law says it is No credit is allowed, NTTC Training – 2014

Tax Law Basics Income Less adjustments = Adjusted gross Income Less deductions and exemptions = Taxable Income NTTC Training – 2014

Form 1040 Identity, filing status and exemptions Income Adjustments Deductions and exemptions Tax and nonrefundable credits Additional taxes Refundable credits NTTC Training – 2014

Form 1040 Select one status as shown on this form 1040. NTTC Training – 2014

Income NTTC Training – 2014

Adjustments NTTC Training – 2014

Page 2 Nonrefundable NTTC Training – 2014

Page 2 Nonrefundable NTTC Training – 2014

Page 2 cont. Refundable Lines 61 and 69 are new this year as a result of ACA. If the taxpayer and all dependent have Minimum Essential Coverage (MEC), the box on line 61 is checked. A Shared Responsibility Payment (SRP) is entered on line 61. A refundable net premium tax credit as determined from Form 8962 is entered on line 69. NTTC Training – 2014

Training Materials Pub 4491 – Training Guide Pub 4491W – Problems and Exercises for Practice Pub 4012 – Resource Guide Pub 5157 – VITA/TCE Affordable Care Act Form 6674 – Certification Test and Retest Pub 17 – Your Federal Income Tax for Individuals NTTC Training – 2014

The Text Book evergreen NTTC Training – 2014

Pub 4491 Follows Form 1040 order Note that Pub 5157 Affordable Care Act has been added NTTC Training – 2014

Pub 4491 (cont) NTTC Training – 2014

Work-book evergreen NTTC Training – 2014

Pub 4491W NTTC Training – 2014

The Golden Book Primary Reference Tool Contains new ACA Tab NTTC Training – 2014

Text Book for Affordable Care Act New Resource for 2014 NTTC Training – 2014

The Test NTTC Training – 2014

Basic Test not required for AARP Tax-Aide The Test Basic Test not required for AARP Tax-Aide NTTC Training – 2014

Tax Law Details NTTC Training – 2014

Details Line-by Line 3 NTTC Training – 2014

Introduction to Income Tax Questions… Comments… NTTC Training – 2014