1 NY3 Instructor Training 2010 AARP Tax-Aide Scope Out of Scope In Scope Refer to Paid Tax Preparer

2 NY3 Instructor Training 2010 In Scope 1040 with Schedules A, B, and D Sched C w/up to $10K 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 Sched C/CEZ

3 NY3 Instructor Training 2010 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 Child & Dependent Care 8283 Section A Part 1 non-cash contribution to charity > $500 < $5000

4 NY3 Instructor Training 2010 In Scope 8880 Qualified Savings Credit 8812 Additional Child Tax Credit 8863 Education Credits 9465 Installment Agreement 8379 Injured Spouse 1040X Amended Return Sched K-1 only for interest, dividends, capital gains distributions and royalties (Sched B, D, E)

5 NY3 Instructor Training 2010 In Scope Cancellation of Debt 1099-A and/or 1099-C and Form 982 if certified Health Savings Accounts Form SA and Form 8889 if certified Note: 8606 – 4491 is unclear – will have to research

6 NY3 Instructor Training 2010 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

7 NY3 Instructor Training 2010 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

8 NY3 Instructor Training 2010 “Refer to Professional Tax Preparer” See Word Document “SCOPE FROM 4491”

9 NY3 Instructor Training 2010 REMEMBER To prepare an accurate return, AARP Tax Counselors can determine if a return is too complicated or outside the scope of their training