Instructions

General Instructions v12.2

Enter values into appropriate boxes on left side of screen; application will automatically calculate amounts to transfer to right side (right is a copy of PTR Income Categories page from PTR application booklet)
Two types of help available for this tool:
- General Instructions – top left of screen
- Instructions for each box (these will show if the Auto-Help checkbox (below) is checked)
The heading on each section on left tells you where to obtain the necessary info. Far left column tells you specific line numbers to reference
Always consult with taxpayer if unsure about specific info on tax return
If a Source document is not available in the Print package, then you may enter zero in that box
Column next to box where you enter data tells you line to which data will be transferred
Once you have entered a number in a box, hit enter or tab key to register the value
If you enter a value in certain boxes, the tool may add additional lines to request more information (e.g. – you enter Other Income, tool will then ask for a breakdown of Other Income, such as gambling winnings, recoveries, etc.)
If you are completing a PTR-1 application, choose the year you are working on at top left of screen
Once you have entered all required info, you can print a copy of the screen and manually copy the numbers to the actual PTR application page
You can change font size by clicking on Font buttons on top right of screen

Line-by-Line Instructions

Federal 1040
9a	Ordinary dividends	g	Federal 1040, Line 9a	Enter ordinary dividends (Line 9a) only; ignore qualified dividends (Line 9b)
11	Alimony received	m	Federal 1040, Line 11	Enter Alimony received
12	Business income or (loss)	j	Federal 1040, Line 12	Enter business income; negative amount is ok (but out of scope for VITA/TCE)
13	Capital gain or (loss)	h	Federal 1040, Line 13	Enter capital gain (or loss); negative amount is ok
17	Rental real estate, royalties, partnerships, …	+	Federal 1040, Line 17	If you enter an amount from Line 17, the tool will add lines requesting breakdown amounts for: Rental Income Royalties Partnerships (OUT OF SCOPE) S Corporations (OUT OF SCOPE) VITA/TCE only deals with rents & royalties. Look at the detail on the printed Sch E to obtain the breakdown between rents & royalties
	Portion of Line 17 from Rental Income	i	Federal Sch E	Enter any amounts from Sch E which are rents
	Portion of Line 17 from Royalties	o	Federal Sch E	Enter any amounts from Sch E which are royalties
	Portion of Line 17 from Partnerships	k	OUT OF SCOPE	Enter Partnership income
	Portion of Line 17 from S Corporations	l	OUT OF SCOPE	Enter S Corporation income
19	Unemployment compensation	d	Federal 1040, Line 19	Includes both unemployment compensation and family leave benefits from 1099-G Line 1
20a	Social Security Benefits (do not use Line 20b)	a	Federal 1040, Line 20a	Enter the full amount of Social Security from Line 20a, NOT the taxable amount from Line 20b
21	Other Income	+	Federal 1040, Line 21	If you enter an amount for Other Income, the tool will add lines requesting the different amounts that are included in Other Income. Obtain this info from the Line 21: Other Income Worksheet included in the print package. Detail lines: Gambling Winnings. If entered, the tool will then ask for offsetting losses. It will transfer the net winnings to Line p on the right side (but not if < 0) Recoveries. Enter any PTR or Homestead Benefit amounts include on Line 21. If you netted the recoveries on Sch A, Line 6, Box 4, do not enter them on this line. Tool will exclude recovery amounts, since they are not included as income for PTR purposes Remainder. Tool will calculate the remainder of Other Income (after gambling winnings and recoveries) and then transfer the remainder to Line r
	Portion of Line 21 from Gambling Winnings	p	Line 21: Other Income Worksheet	Note: For TY2011, there is no Other Income Worksheet - Use W-2G Detail Report instead Enter gross gambling winnings
	Gambling Losses	p	W-2G Detail Report	Enter gambling losses (as a positive number). Tool will calculate net gambling winnings
	Net Gambling Winnings	p	calculated
	Portion of Line 21 from Recoveries		Line 21: Other Income Worksheet	Enter any PTR or Homestead Benefit amounts which were included on Line 21 Do NOT include any PTR or Homestead Benefit amounts which were netted against current year property taxes on Sch A, Line 6, Box 4
	Remainder of Line 21 not from above	r	calculated
NJ-1040
15a	Taxable interest income	f	NJ-1040, Line 15a	Enter NJ taxable interest. This amount has already subtracted out any early withdrawal penalty (does not count as income for PTR purposes)
15b	Tax-exempt interest income	f	NJ-1040, Line 15b	Enter NJ tax-exempt interest
W-2 Detail Report
	Gross Wages column total (Sum of Box 1 from all W-2s)	b	W-2 Detail Report	Enter the total of the Gross Wages column on the W-2 Detail Report. (Sum of Box 1 from all W-2s) You cannot use Line 7 from the federal 1040 because it may contain disability income from a 1099-R if the recipient is under minimum retirement age for his company You cannot use Line 14 from the NJ-1040 because it is calculated from Box 16 on the W-2s, not Box 1
Other
	Bonuses, Commissions, Fees not included elsewhere	c	Ask TP	Rare - do NOT include amounts already included on W-2s
	Disability Benefits not included elsewhere (rare)	e	Ask TP	Rare - do NOT include Disability Pensions (1099-R Code 3) or Social Security Disability
	Inheritances	n	Ask TP	Do NOT include amounts from spouse / Civil Union partner
	Bequests and Death benefits	q	Ask TP	Do NOT include amounts from spouse / Civil Union partner
1099-R Detail Report
	Gross column total (Sum of Box 1 from all 1099-Rs)	t	1099-R Detail Report	Enter the total of the Gross column on the 1099-R Detail Report. (Sum of Box 1 from all 1099-Rs) This will include some amounts that are not taxable, but are included for PTR income purposes. When you enter an amount on this line, several additional lines will appear: Portion from Rollovers Portion from Tax-free exchanges Portion from Regular IRA to Roth IRA conversions If, after entering any applicable amounts for these additional boxes, the Income Categories Line u amount is above the threshold, then some additional lines necessary to calculate Income Categories Line v will appear. (If this happens, see NJ-1040, Line 19 for more detail. )
	minus Portion from Rollovers	t	1099-R Detail Report	Enter rollover amounts from any 1099-Rs that are rolled over from one qualified retirement plan into an IRA or other qualified plan either directly (Code G) or indirectly (Code 1 or 7 with an amount on exclusion worksheet Line 1). Rollovers will have an R in Roll/Exclude column on 1099-R Detail Report
	minus Portion from Tax-free exchanges	t	1099-R Detail Report	Enter amounts from any 1099-Rs that are considered tax-free exchanges of a policy or contract between 2 insurance companies Tax-free exchanges may be shown in 2 different ways on 1099-R screen: Code 6 in Box 7 – will have an R in Roll/Exclude column on 1099-R Detail Report Code 7 in Box 7 with an amount on Exclusion Worksheet Line 5 - will have an E in Roll/Exclude column
	minus Portion from Regular IRA to Roth IRA conversions	t	1099-R Detail Report	Enter conversion amounts from any 1099-Rs that involve conversions from a regular IRA to a Roth IRA (If this type of conversion occurred, the print package should include a Form 8606 with Part II completed)
	= Amount for PTR Line t	t	calculated	Tool will subtract rollovers, tax-free exchanges, and regular IRA to Roth conversions from the Gross 1099-R amount then will transfer result to Line t
PTR Line v Stuff - only if Line u > 80,000 for 2011 or 82,880 for 2012
19	NJ-1040 Line 19: Pensions, Annuities, and IRA Withdrawals	v	NJ-1040, Line 19	Starting point for this section is NJ 1040 Line 19 Pensions, Annuities, and IRA Withdrawals. TW automatically excludes from Line 19 amounts that are not taxable for NJ: Military pension Railroad Retirement Tier 2 Qualified Roth IRA distributions Rollovers Tax-free exchanges 1099-R disability amounts (Box 7 Code 3) for recipients under age 65 should also be excluded from Line 19. However, due to a TW glitch, this may not happen for taxpayer who is over minimum retirement age for his company, but under 65. If the method described in NJ Special Handling was applied in this case, then counselor should have done a scratch pad adjustment to exclude disability amount from Line 19 in this situation. Check to see if amount was excluded 1099-R disability amounts for recipients over 65 will be included in Line 19
	plus Military pensions not included in NJ Line 19	v	1099-R Detail Report	Enter taxable amount from 1099-R for military pension(s) (Payer should be Defense Finance & Accounting Service for military pension)
	plus Disability pensions (1099-R Code 3) not included in NJ Line 19	v	1099-R Detail Report	Enter taxable amount from any 1099-Rs for disability pensions not already included in Line 19 (usually 1099-R disability for recipients under 65) (If correct adjustment for TW glitch described above was not done, do not enter disability amount for taxpayer in that situation, since already in Line 19)
	plus Qualified Roth IRA distributions (Code Q)	v	1099-R Detail Report	Enter 1099-R amount for Qualified Roth IRA Distributions (Will have Box 7 Code Q) Only include portion that would be taxable if treated as a regular IRA (as if you had completed NJ IRA Worksheet with all relevant information). If complete info is not available, enter total Roth IRA distribution
	minus Regular IRA to Roth IRA conversions included in NJ Line 19	v	1099-R Detail Report	Enter conversion amounts from any 1099-Rs that involve conversions from a regular IRA to a Roth IRA (If this type of conversion occurred, the print package should include a Form 8606 with Part II completed)
	= Amount for PTR Line v	v	calculated	Tool will add in amounts above from military pensions, disability pensions, & qualified Roth IRA distributions. It will subtract regular IRA to Roth conversions. The result will be transferred to Line v