1. Tax Year 20091 TYPES OF PAYMENTS 1040 PG 2 Line 61- 63 & 68 Federal income tax withheld from W-2s, 1099s Estimated payments & $ applied from prior year Making work pay/government retiree credit NEW

2. Tax Year 20092 WITHHOLDING PUB 17 CHPT 4 Collected by employer Set aside from pensions Set aside from bonuses, commissions Set aside from gambling winnings $600 or more

3. Tax Year 20093 REPORTING WITHHOLDING TaxWise – collects and totals automatically from data entry on individual forms Exception 1099-B (no entry box on Schedule D) Enter 1099-B withholding on Interest Statement Enter 1099-N withholding on Scratch pad linked to Line 61 on 1040

4. Tax Year 20094 ESTIMATED PAYMENTS May made estimated payments because of: Self-employed Income Those with Investment Income Projected balance due >$1,000 (penalty) Payments made periodically by taxpayer Must ask taxpayer if payments made Need to know When and How Much for each payment Ask for Form 1040ES from 2008 or records of

5. Tax Year 20095 OVERPAYMENT PREVIOUS YEAR Ask taxpayer if refund applied from prior year to this years taxes TaxWise will bring forward Not very common

6. Tax Year 20096 REPORTING Estd. Payments In TaxWise, link to F/S Tax Paid Worksheet from 1040, line 62 Enter applied Refund carried forward from 2008 (if any ) Enter Estimated Payments Federal State, if Applicable

7. Tax Year 20097 PAYMENTS FROM EXTENSION TO FILE Taxpayer requested extension to file Must pay estimated Balance due with extension Amount paid with Extension reported on final return, Form 1040, line 68

8. Tax Year 20098 American Recovery & Reinvestment Act 0f 2009 (ARRA) Schedule M - New Reference Manual Publication 4013 Pages 10 thru 13 Line 63 on the 1040 Schedule M New

9. Tax Year 20099 ARRA New Refundable Credit & Direct Pay Refundable credit Making Work Pay Credit Direct Payments – No IRS link to verify Direct pay from Social Security Direct pay for certain Government employees

10. Tax Year 200910 MAKING WORK PAY CREDIT Publ 4012 pages 10-11 - 1040 Line 63 6.2% of Earned Income - $400/$800 max Must Have Earned Income - phaseouts To offset the reduction in Withholding Reduced by Government Retiree Credit or direct Social Security payment Complete Schedule MNEW

11. Tax Year 200911 DIRECT SSA/VA/RRB PAYMENT If receiving SSA, RRB or VA in Dec 2008, January 2009 & February 2009 Direct payment from the SSA, VA or RRB Maximum $250/$500 Still eligible for Making Work Pay Credit if employed but reduces it

12. Tax Year 200912 ARRA Government Payments U.S., State, or Local Gov. retiree NOT covered by Social Security Maximum $250/$500 Still eligible for Making Work Pay Credit if employed but reduces it Taxpayer provides information Complete new Schedule M

13. Tax Year 200913 Schedule M Lines 1 - 4

14. Tax Year 200914 Schedule M – credit amount

15. Tax Year 200915 Schedule M Social Security Stimulus payment

16. Tax Year 200916 Schedule M – Complete the credit