EKS TrainingNovember 22, December 6 and 13th

Review Day

#1

Tax Law ReviewFiling StatusExemptions Income: Taxable vs NontaxableStandard DeductionRefundable Vs Nonrefundable Credits

Review Day

#1

Components of the 1040

Income – adjustments = AGI AGI – deductions and exemptions = taxable income

Taxable income X your tax rate = tax Tax – nonrefundable tax credits = tax (down to zero)

Tax + your payments (withholding, refundable credits, etc.) = your refund or balance due

Review Day

#1

13614-C & 1040

Review each section on the Intake & Interview Form and how it translates to the 1040

Standards of

Conduct

Training

As a volunteer in the VITA/TCE Programs, you must:1. Follow the Quality Site Requirements (QSR).

2. Not accept payment or solicit donations for federal or state tax return preparation.

3. Not solicit business from taxpayers you assist or use the knowledge you gained (their information) about them for any direct or indirect personal benefit for you or any other specific individual.

4. Not knowingly prepare false returns.

5. Not engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other conduct deemed to have a negative effect on the VITA/TCE Programs.

6. Treat all taxpayers in a professional, courteous, and respectful manner.

4961 │ VSOC Quiz │ Volunteer Agreement

Scenario #3

Scenario #3

5 Step Plan:

1. As a class we will review Client Notes, and

2. Intake & Interview Sheet & supporting documents.

3. Instructor will teach Tax Law – referencing Pub 4012 and 13614-C

4. Instructor will show you how to enter information into TaxWise. WATCH!

5. Now Do! Students will enter information on TaxWise

Scenario #3

Let’s review Olivia & Brandon’s Information:

Pull out Interview NotesPull out Intake & Interview sheet

13614-C

Interview

Notes Review

Brandon & Olivia are married & will file a joint return

They have two children who lived with them all year

Cash donation was made

They had unreimbursed medical expenses

Olivia & kids had health insurance

They paid property taxes

They did not itemize last year

They want to split their refund between checking & savings

Review 13614-C to ensure responses match

Intake &

Interview

Let’s review 13614-C

Everything accurate? If not, what’s missing/wrong/needs to be changed?

Notice anything different?Did they have all the required documents?

Make any corrections needed on 13614-C

Publication

4012

Is client eligible for VITA services?

Refer to Publication 4012 page 8-9

Scope of Services Chart

TaxWise

Instructor: Start the return on Main

Information

Students: WATCH instructor

TaxWise

Students: Start the return on Main

Information

Tax Law Topic #1

Individual Taxpayer Identification Number

(ITIN)

Open: Publication 4012, Tab L

TaxWise:

Start Retur

n

Enter ITIN Number on Main Info page

Students watch instructor

TaxWise

Students:1. Enter ITIN for Brandon

and2. Input income

documents for Brandon & Olivia

Tax Law Topic #2

Deductions:Itemized Vs Standard

http://youtu.be/FbMyVscbbko

Tax Law Topic #2

Itemized Deductions

1. Determine if Gonzaga’s should Itemize or take the Standard

Deduction?

Open: Publication 4012, Tab F

TaxWise

Instructor: Schedule A

Students: WATCH

TaxWise

Students: Start a Schedule A

Mortgage interest Insurance premiums

Property taxesCharitable donations

Tax Law Topic #3

Affordable Care Act

1. Discuss coverage for Brandon, Olivia & Children

2. Determine if Brandon qualifies for an exemption

Open: Publication 4012, Tab ACA

Publication 4012: Affordable Care Act

ACA Decision Trees

Olivia & Children: Refer to Pub 4012, ACA-1

Brandon: Refer to Pub 4012, ACA-2 & Health Care Exemption ACA-5

Affordable Care

Act Pub

4012, Tab ACA

Brandon is not eligible for coverage because he is undocumented. He qualifies for a healthcare coverage exemption that will be claimed on Form 8965. See Pub 4012, ACA Tab 2

TaxWise

Instructor: Enter Information for

ACA, Form 8965

Students: WATCH

TaxWise

Students: Complete Form 8965

CA State

Return

Completing CA portion of return

1. Follow instructor to learn how to complete this section

Reviewing and completing the return

1.Splitting the RefundPub 4012 Tab K-1 & K-2

2.Review the federal returnPeer-Return Review

3.Finish the return

Knowledge

Check!

If your client is itemizing their deductions, which Schedule do you complete in TaxWise?

Schedule A

What are two items does a client usually have to indicate that they may itemize?

Mortgage interest from owning a home and really high unreimbursed medical bills

True or False: Filers with an ITIN are eligible to receive the Earned Income Tax Credit?

False

Now Let’s

Practice

Pull Out your 6744