1. 1 2013 AARP FOUNDATION TAX-AIDE INTRODUCTION TO INCOME TAX

2. 2 2013 Tax Law Basics  All income is taxable, unless the law says it is not  No deduction is allowed, unless the law says it is  No credit is allowed, unless the law says it is

3. 3 2013 Tax Law Basics Income Less adjustments = Adjusted gross Income Less deductions and exemptions = Taxable Income

4. 4 2013 Form 1040  Identity, status & exemptions  Income  Adjustments  Deductions & exemptions  Tax & nonrefundable credits  Additional taxes  Refundable credits

5. 5 2013 Form 1040

6. 6 2013 Income

7. 7 2013 Adjustments

8. 8 2013 Page 2 Nonrefundable

9. 9 2013 Page 2 cont. Refundable

10. 10 2013 Training Materials  Pub 4491 – instruction guide  Pub 4491-W – exercises to practice  Pub 4012 – resource guide and  Form 6674 – certification test and retest

11. 11 2013 Pub 4491 Follows 1040 order

12. 12 2013 Pub 4491 (cont.)

13. 13 2013 4491-W Work- book

14. 14 2013 Intro to Income Tax  Comments?  Questions?