TAX-AIDE

TAX-AIDE

District 18 Training Plan

December 9, 2015

TAX-AIDE

District 18 Overview

● Five tax preparation sites north of Denver Boulder, Broomfield, Lafayette,

Louisville, Longmont

● Approximately 70 total volunteers

● Starting our 3rd year of Immersion training

TAX-AIDE

Training class methodology

• Replicate end-to-end process used at tax prep sites

• Instructors lead counselors in preparing multiple returns Use modified NTTC Workbook scenarios Cover all common District 18 taxpayer issues Do not use templates

• Instructors pause regularly to direct counselors to applicable reference material for discussion (4012, Pub 17, Wiki page)

• Proceed at pace appropriate to counselor skill levels with frequent pauses to compare results

• Each new counselor has a mentor alongside

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Counselor feedback from Jan 2015 training

• Overall effectiveness All ratings 4 or 5 on scale of 1 to 5

• Most helpful training topics, in order ACA, all, education benefits, broker statements,

TWO – 4012 link

• Least helpful topics, in order None, multiple 1099-Rs, basic material

• What to improve, in order Nothing, more ACA examples

● Frequent comment: “Confidence”

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Change in 2016 training sessions

● Previous years: Two sessions One day for 1st year counselors Four days for all counselors (~ 60)

● 2016: Three sessions (< 30 people) Introductory for 1st year counselors

Basic for new and less experienced counselors

Advanced for more experienced counselors

Appropriate session for each counselor determined by Local Coordinators

Advantages: Set pace and content for skill levels, more individualized training, easier logistics

TAX-AIDE

Three distinct training sessions

1. Introductory Training

• Friday, December 11

• Tax-Aide program overview

• How to become a Tax-Aide Counselor Upcoming training sessions Training and reference materials Certification and qualification

• TaxWise Introduction How to navigate TWO Preparing a simple return

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2. Basic Training

• Mon-Wed, January 18-20

• Review of Tax-Aide program and policies, volunteer responsibilities, tax preparation process, TY 2015 tax law changes, Wiki

• Preparation of three straightforward returns in TWO with “routine” tax law topics

• Emphasis on use of reference materials

• Everything they need to know to pass Advanced Certification tests and prepare most taxpayer returns

Three distinct training sessions

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3. Advanced Training

• Thurs/Fri, Jan 21-22 OR Mon/Tues, Jan 25-26

• Two sites attend Thurs/Fri, three sites attend Mon/Tues

• Brief review of TaxAide program and policies, TY 2015 tax law changes, Wiki

• Preparation of one comprehensive return with emphasis on complex tax law topics

• Everything they need to know to pass Advanced Certification tests

• Optional session at end: amendments, part-year CO return, Health Savings Accounts

Three distinct training sessions

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Training preparation

• Select and modify scenarios from NTTC Workbook

Reduce some duplication but not all Add taxpayer forms and conditions to

cover all relevant situations Introduce modifications to taxpayer

forms to illustrate teaching points (e.g., 1099-R codes)

Fit lessons into allocated time

• Develop matrix of topics / returns / instructors / schedule

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Partial Matrix for Basic SessionBlack = 1st time topics Blue = repeated topics Red = scenario modifications

1040 Line Cunningham   Holmes   Yale1-5 Filing status Interview and Intake Sheet

Who must/should file? MFS, compare with others

  MFJDeceased spouse

  MFJ

6 Dependents ExemptionsQualifying child/relative4012 tables and Wiki dependent calculator

  Granddaughter   Children, Parent

7 Wages Income typesW-2

      W-2sTip income

8 Interest – taxable 1099-INT   1099-INT   1099-INT

Interest – tax free     1099-INT from broker   1099-INT

9 Dividends     1099-DIV from broker   1099-DIV

10 Taxable state refund

        Make refund taxable and add prior year data

11 Alimony received         Add Alimony received

12 Self-employment     Remove business income from notes

  1099-MISC box 7, cash, expenses

13 Capital gains     1099-B, Supplemental exercise data

   

15, 16 Retirement income

    1099-R, with changes for multiple conditions

  Early distribution, 1099 Simplified Method, PSO exclusion

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Partial Matrix for Basic Session

 Instructor  Opening1.5 hours

Cunningham 3.25 hours

Holmes6 hours

Yale9.75 hours

           Tom  Tax-Aide overview Federal return       1 hour 2.75 hours               Mark       Return start          Investment income          1.5 hours                                   Judith         Return start          Various income          Education adj&cred          4 hours           Ray       Retirement income          Other income          1040 page 2 items          Return finish          2.5 hours  

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Partial Matrix for Advanced SessionRed = scenario modifications

1040 Line Kerry Topics

1-5 Filing status MFJ, Deceased spouse

6 Dependents Qualifying child/relative, Wiki dependent calculator

7 Wages Petroleum W-2, delete other W-2s

8 Interest – taxable Seller financed mortgage, 1099-INT, OID, K-1

Interest – tax free 1099-INT, OID, Broker statement

9 Dividends 1099-DIV, Broker statement, K-1

10 Taxable state refund Taxable refund

11 Alimony received None

12 Self-employment 1099-MISC box 7, cash, expenses

13 Capital gains 1099-B, Broker Statement, Capital Loss Carryover, Wash Sales, Transaction Summaries, Inheritance, K-1 (Adjust for proper content and timing)

15, 16 Retirement income Incorrect distr. Code, delete Rollover and OMB, Simplified Method

17 Rents, royalties 1099-MISC, Schedule E

19 Unemployment comp None

20 Social Security SSA-1099, Reference lump sum but won't do

21 Other income Gambling W-2G, 1099-LTC, Jury income, credit card debt cancellation

23 Educator expenses Educator expenses

25 Health Savings Acct Optional session

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ACA Approach

● Handout at start of lesson Definition of terms Description of seven variations on taxpayer

and dependent coverages

● At conclusion of one tax return, for each coverage scenario

Discuss conditions and applicable references Clear previous scenario data from ACA

Worksheet and 8962 / 8965 forms Input new scenario data on ACA forms Discuss effects on 1040 page 2

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We also have some fun

● Trivia Contest – 15 questions mostly about taxes, with restaurant gift card to winner

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Take-Aways from Training

● Learn where to find information Procedures and policies, tax laws, TaxWise

● Help is available Training sessions, resource materials,

mentors, Local Coordinators

● Keep the goals in mind We help many very thankful people who

can’t do this on their own We exercise all our brain cells This really is enjoyable

TAX-AIDE

Questions / Comments?

District 18 Introductory Training December 15, 2014