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Accounting Aid Society 2006 Tax Season Michigan Tax Training. January 2006. Overview. Our training is designed to provide you with the skills to prepare taxes for the clients of Accounting Aid Society.
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TaxWise: Press F1 when you are on Form MI-1040 and select MI Codes for a list of school district codes.
TaxWise Hint: Pressing F1 when on Form MI-1040 and selecting MI Codes will bring up a list of School District Codes.
TaxWise: Full-year residency of MI will be defaulted on the Main Information Sheet. This section should be changed by the preparer if taxpayer is a part-year or non-resident.
TaxWise: In the Taxpayer Information section of the Main Information Sheet there are fields to check for Blind, and Totally and Permanently Disabled.
Their total exemptions, personal and special, is 6:
TaxWise: Adjusted Gross Income and most Additions and Subtractions to income carry over from the federal return.
Some of the Michigan nonrefundable credits include:
TaxWise: There are fields on Page 2 of the MI-1040 to enter city tax paid or city refund received during 2005.
TaxWise: If there is Michigan withholding on a Form 1099, Sch. W will remain red until the bottom of the schedule is completed by checking the appropriate column of R, G, or M – indicating if it was a Form 1099-R, 1099-G, or 1099-MISC. Once the appropriate column is marked, TaxWise will fill-in the rest of the information.
TaxWise: Identifying information, school district code and residency status will carry over from the Main Information Sheet and the MI-1040.
TaxWise: 65 or older will carry over from Main Info
Blind or disabled will also carry over from Main Info.
Unremarried spouse and deaf or plegic must be marked directly on the credit form.
After reviewing the Property Tax Statement slides:
Service Fee Housing:
Cooperative Housing Residents:
Nontaxable income generally has to be entered by the preparer directly on Form MI-1040CR. These items can include SSI, child support, workers’ comp., veterans’ benefits, DHS (was FIA) benefits, and gifts.
TaxWise: The amounts entered on Worksheet 1 for the taxpayer and/or spouse’s benefits will carry over to Form MI-1040CR.
TaxWise: There is a field on TaxWise’s MI-1040CR where the preparer can enter death benefits and amounts received for minor children or dependent adults.
TaxWise: SSI is entered as an override entry on Form MI-1040CR and is included on the line with Social Security benefits and Railroad Retirement benefits. SSI is never entered on 1040 Wkt 1. See the TaxWise Step by Step Instructions.
TaxWise: Adjustments carry over from the federal return with the possible exception of medical insurance premiums. These may need to be entered by the preparer on Form MI-1040CR, Line 27 (Line number may change.)
TaxWise: All of the above calculations to determine the credit are done by TaxWise from information previously entered.
TaxWise: Press F1 on Form MI-1040CR-7 and select MI Codes for a list of county codes.
TaxWise: Exemptions will carry over from the entries made on Main Info and on the MI-1040. It is critical to enter all of the exemptions the taxpayer is entitled to.
TaxWise:Important: No income is entered directly on the MI CR-7 (Home Heating Credit) in TaxWise. All income carries over from the federal return and from entries made on the MI CR Pg 1 (Property Tax Credit Claim.)
TaxWise: To e-file credit only returns, it is imperative that the box at the top of TaxWise’s MI-1040 be checked designating credit-only e-filing. This will be discussed more in the TaxWise lab session.