General Instructions v15.0

Year: 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 (aka 1040 Wkt7) 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 (aka 1040 Wkt7) 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 (aka 1040 Wkt7) 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 q calculated  
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
19a NJ-1040 Line 19a: Pensions, Annuities, and IRA Withdrawals b NJ-1040, Line 19a Starting point for this section is NJ 1040 Line 19a Pensions, Annuities, and IRA Withdrawals. TW automatically excludes from Line 19a 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 19a. 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 19a in this situation. Check to see if amount was excluded
1099-R disability amounts for recipients over 65 will be included in Line 19a
  plus Military / RRB pensions not included in NJ Line 19a b 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 taxable amount from RRB-1099-R for Railroad Retirement Tier 2
  plus Disability pensions (1099-R Code 3) not included in NJ Line 19a b 1099-R Detail Report Enter taxable amount from any 1099-Rs for disability pensions not already included in Line 19a (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 b 1099-R Detail Report Enter portion of any non-rollover Roth distributions (1099-R Box 7, Code B, J, Q, or T) not taxed in NJ
Note: Any amount being rolled-over does not need to be entered.
Note: Qualified distributions are not taxed, so the whole amount should be entered here. (Code Q is always qualified; Other codes may or may not be qualified).
Note: Non-Qualified distributions may be (partially) subject to tax and, therefore, included on Line 19|19a - enter only the non-taxed amount here.
Note: If information is available from TP, then 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 non-taxed amount.
  minus Regular IRA to Roth IRA conversions included in NJ Line 19a b 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 b b 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 b
W-2 Detail Report
  Gross Wages column total (Sum of Box 1 from all W-2s) c 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
  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, Bequests, and Death benefits n Ask TP Do NOT include amounts from spouse / Civil Union partner