NTTC Workbook

For use by AARP Foundation Tax-Aide volunteers only. AARP Foundation Tax-Aide creates materials for exclusive use by Tax-Aide volunteers only. All other use is prohibited unless written permission is granted.

New Counselors

New counselors will be guided by an instructor (or assigned coach) who will introduce them to TaxSlayer - logging in and getting to the Practice Lab. Instructors and coaches guiding new counselors should integrate the Workbook problems with appropriate references in NTTC Pub 4012, NTTC Pub 4491 , and with the NTTC new volunteers training videos/slide decks. Instructors and coaches will work with new counselors as they complete their training, modifying training as necessary.

New counselors will be introduced to the tax return with four classroom exercises (returns) found in the Workbook. The goal is completion of four returns in class: Andrews, Baker, Caldwell, Davenport.

For certification, new counselors should complete at least four returns, normally outside the classroom, from the Workbook. Districts may determine certification requirements for new counselors to best meet their training needs.

Returning Counselors

NTTC Workbook Resources Links

NTTC Workbook - The new Workbook team created a new and vastly improved book for this year. Each exercise has a clearly stated purpose, has all information required for the exercise, and has TY24 answers (AGI only). Core exercises cover basic tax issues and some less common situations. Proficiency exercises include a three generation household, Schedule C gig worker, and Schedule A. It also includes SSA-1099 lump sum payment exercise and additional forms such as RRB-1099. Classroom exercises are available for instructor classroom use. Advanced (A) topics are clearly marked. The online version contains everything in the printed version plus links for additional materials, advanced exercises (education credit, Uber driver, Medicaid waiver payment, and Evans-Bryant).

Be aware of:

Garibaldi (p. 28) – College expenses exceed $2,000 thus covering the entire IRA withdrawal. The penalty exception for early withdrawal from the IRA is the education exception. The teaching point is the TC must ask questions about expenses that might qualify for an exception.
Hanson (p. 32) – Filing status is HOH since TP supports a dependent adult.
Miller (p. 43) - Military retirement pay does not carry to Form 8880.
Uber Driver – Jackson (p. 119) – The Uber tax summary shows driver reimbursement of $207 for tolls, airport fees, and surcharges. BUT, these expenses are charged to the rider, so the 1099-K includes $207. So, to report accurate income for the driver, $207 should be included in total expenses reported on Schedule C. The Uber statement shows Expenses, Fees and Tax of $5,759 to which $207 is added for total expenses of $5,966. See Understanding Uber's Tax Summary.

Workbook Matrix Excel

Quizzes

Workbook Answers

NTTC Workbook Certification Exercises for Returning Counselors

Certification exercises are designed to test the knowledge of returning counselors and to prepare counselors for the IRS certification test. The four required certification exercises are:

Garibaldi Hanson Janisch Miller

If a district anticipates having Social Security lump sum returns, a district may include Newell in addition to or as a substitute for one of the four exercises listed above.

For state certification, work the following proficiency exercises in TY25 software as shown below.

Keep all federal returns as given in the Workbook. Other than appropriate state entries for interest and dividend items, do not adjust for state supplemental information. None of the tax exempt interest or exempt interest dividends is from the state being worked on.

All federal and state training items including skinny answer sets are here.

Virginia - Work Garibaldi, Hanson, Janisch, Miller, (Newell) for VA

All TPs are residents of Arlington County, zip 22205

Garibaldi's VA $1 lottery ticket won $10 (do not change federal return for this - just do state as if this had been in federal). He paid $48 sales tax on an energy efficient appliance.

Hanson's dividend income includes $10 federal hidden interest; all tax-exempt interest is from other states.

Janisch has a state certificate for a gun safe that cost $300.

Miller has DFAS military retirement benefits and charitable mileage deduction. He contributed $4,500 to one 529 account. He paid LTC premiums.

DC - Just work Garibaldi for DC

Garibaldi is a resident of DC zip 20015. He paid $8,000 for real property taxes and contributed $500 to one DC College Savings plan account.

Maryland - Just work Hanson for MD

Hanson is a resident of Montgomery County (all other areas), zip 20816. His dividend income includes $10 federal hidden interest. He contributed $2,500 to one account under the MD College Investment Plan and donated $50 worth of disposable diapers to a qualified charity.

North Carolina - Just work Miller for NC

Miller is a resident of Gates County, zip 27919. His DFAS military retirement is Bailey eligible.

West Virginia - Just work Janisch for WV

Janisch is a resident of Berkeley County, zip 25419. He contributed $500 to WV Savings Trust Fund and paid $1,500 for LTC.

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