LAW-L1 – Kent Refund Monitor

Filing Status: Married Filing Jointly

01-09-2013 TY2011 v1.0a-3

Step	TP Form/ Note(s)	TW Form	Payee/Name	Fed 37 AGI	Fed 74/76 Refund	NJ 37 Taxable	NJ 55/65 Refund	4012 page	Notes
1	Intake etc. Notes 2, 3, 4, 5, 7	Main Info Prep Use						C-4 1-8	Hint: Use Code 1 (or 2) if dependent is “qualifying child” per IRS rules; use code 3 if dependent is “qualifying relative” Hint: Check EIC box for all dependents who might qualify for EIC
2	W-2	W2	Jefferson Independent School District	13,817	5,081			2-3
3	W-2	W2	Americus Petroleum	41,951	3,090			2-3
4	Text	Sch B	Campbell Mortgage	44,733	2,815				Hint: Look on Preparer page Lookup Tool to see where to enter this
5	1099-INT	Interest Stmt	Kendall Federal Credit Union	45,143	2,775			2-5
6	Text	Interest Stmt	Gordon Investment Services	45,143	2,775			2-5	Hint: Look at NJ Special Handling for exempt interest and savings bonds
7	Broker Stmt	Interest Stmt	ZYX Investments (Interest only)	47,721	2,760			2-5	BP: Use separate lines on Interest Stmt
8	Broker Stmt	Dividend Stmt 1116 Pg 1	ZYX Investments (Dividends only)	48,022	2,764			2-6 5-2	Hint: May need to manually add form 1116 Hint: Do NOT worry about red stuff on form 1116 below “Simplified Limitation Election”
9	1099-G	St Tax Refund	NJ Div of Tax	48,309	2,734				Hint: See NJ Special Handling, State Income Tax Refunds Hint: Karl was over 65 last year
10	1099-MISC	Sch C Pg 1 Sch C Pg 2 1099 MISC Scratch Pad	Pratt Medical Centers, Inc. (plus other)	50,519	2,124			2-7	Q: How would you lookup Business code at site (i.e. when not supplied as part of scenario)? Q: Do you need to fill in line E, Business address? Hint: Link from line 1b to add 1099-MISC and also link from same box to add Scratch Pad to document non-1099-MISC income
11	1099-B	Cap Gn Wkt	Pelrum Brokerage Service	49,220	2,311			2-10	Hint: See Pub 4012 TY2011 Notes for additional info on filling out Cap Gn Wkt
12	Broker Stmt	Cap Gn Wkt	ZYX Investments (Capital Gains only)	47,450	2,522			2-9	Hint: Use INHERIT for Date Acquired for inherited stocks
13	1099-R	1099R	Saulk Trust Company	48,288	2,437			2-17
14	Text 1099-R	1099R IRA Rollover	Yale Security IRA	48,288	2,437			2-17	BP: Do IRA Rollover explanation (1040 line 15b) now
15	1099-R	1099R	Defense Finance & Accounting SVC	49,488	2.266			2-17	Hint: See NJ Special Handling for Military Pensions
16	Text 1099-R	1099R	Stillman Pension Fund	67,778	1,244			2-17 2-18	Hint: Use Simplified General Rule Hint: Fill in prior year(s) recovery amount
17	K-1	Sch E Pg 1	Black Jack Production Company	68,828	1,086			2-21	Hint: Need to add Sch E (see Special Topic document available from Preparer page) Hint: Do NOT use K-1 form in TW!
18	1099-G	1099G Wkt	NJ Department of Labor	71,378	824
19	SSA-1099	1040 Wkt1	Social Security	83,008	(564)			2-19	BP: Medicare Part B & D on Scratch Pad
20	W-2G Text	W2G	New Jersey Lottery	84,208	(744)				Hint: Need to add W2G (if not in tree) Hint: See NJ Special Handling for NJ Lottery BP: Include corresponding losses
21	Text	1040 Wkt2	Classroom supplies	83,968	(706)				Hint: Need to add 1040 Wkt2 (if not in tree)
22	Text	1040 Pg 1	Alimony to ex	80,368	(166)			3-1
23	Text	IRA Wkt	IRA Contribution	74,368	734				Hint: May need to add IRA Wkt
24	Text	1040 Wkt2	Student Loan Interest	74,100	771				Hint: May need to add 1040 Wkt2
25	Text	Sch A A Detail Scratch Pad	Itemized Deductions	74,100	1.191			4-2 4-4	Hint: Some items in text may not be deductible… BP: Use Scratch Pad to document Real Estate tax detail
26	Text	2441 Pg 1	Maryville Day Care Center	74,100	1,411			5-3
27	1098-T etc	8863 Pg 1 Scratch Pad	a) Kendra - Northern Kentucky University b) Kara - Local University”	74,100	3,788			5-3	Hint: May need to add 8863 BP: Should do this last to make sure comparison involves all factors, but done here for to keep flow of problem
28	Text	5695 Pg 1	Residential Energy Improvements	74,100	4,006			G-9	Hint: May need to add 5695
29	Text	F/S Tax Pd	Estimated payments	74,100	4,406				Hint: Ctrl-Space (or F3) state balance due line (if red)
30	Note 8		Inheritance	74,100	4,406				Hint: No tax implications to recipient for inheritance
31		1040 Pg 1	still red - resolve	74,100	4,406				Hint: Line 21 – see help
32	Note 9	Sch B	still red - resolve	74,100	4,406
33	Note 6			74,100	4,406				BP: get red out and run diagnostics before handling refund/payment
34		Diagnostics Sch EIC		74,100	4,406			6-5	Hint: Can click on diagnostic error to go to worksheet Hint: Answer EIC Wkt questions in order and only if red
35		Diagnostics		74,100	4,406				No Errors
36	Note 6	1040 Pg 2	Apply 1/2 refund to next year	74,100	2,203			6-2	Hint: Enter ½ of refund on line 75
37	Note 6	Main Info 1040 Pg 2	Enter Routing number and account number	74,100	2,203
38		Diagnostics		74,100	2,203				No errors
39		NJ 1040 Pg1		74,100	2,203	29,522	1,956		Hint: Follow NJ Special Handling line-by-line for NJ-1040 Hint: NJ Municipal codes available in TWO Help or in NJ 1040 Instructions or via Preparer Page
40	Note 2 Note 3 Note 11 Note 12	NJ 1040 Pg3		74,100	2,203	28,522	1,974		Note: Save line 44 entry until next step
41	Note 10	NJ 1040 Pg3		74,100	2,203	28,522	1,942		Hint: NJ Special Handling contains a table which is useful for situations where the NJ suggested standard amount is used for Use Tax entry (line 44)
42	Sch A deductions list	NJ 1040 Pg4 (Sch F)		74,100	2,203	28,522	1,992		Hint: Property tax from Sch A is automatically shown in NJ-1040 Sch F worksheet, but actual amount needs to be manually entered in correct box
43		NJ DD Wkt		74,100	2,203	28,522	1,992		BP: get red out of other worksheets and run diagnostics before handling refund/payment
44		NJ IRA Wkt 01 NJ IRA Wkt 02		74,100	2,203	28,522	1,992		Hint: Need to add IRA Wkt(s) and set Copy Number for each IRA BP: OK to leave unknown values red in IRA Wkt Q: NJ-1040 line 19 changed – why didn’t line 37 change?
45		Diagnostics		74,100	2,203	28,522	1,992		No errors
46	Note 6	NJ 1040 Pg4	Apply ½ refund to next year	74,100	2,203	28,522	996		Hint: Enter ½ of refund amount on NJ line 57
47		Diagnostics		74,100	2,203	28,522	996		No errors
48			Create e-File(s)	74,100	2,203	28,522	996		Hint: If get error “The ‘Adjustments ToGainOrLossCd’ is invalid” then change code in column (b) of Cap Gn Wkt to double letter (e.g. use “OO” instead of just “O”)

Values with pink background – value changed from previous row

Click on links in TW Form column to see screen shot of completed TWO form (you may need to click on the picture to enlarge it)

Printed return – click here

Scenario Writeup – click here

Printable version of this page – click here