eks training november 22, december 6 and 13th. review day #1 tax law review filing status ...
TRANSCRIPT
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
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
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
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
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