Miscellaneous Topics – and Some Reminders 2016 CA-2 Instructor Workshop

Resident or Non-Resident Alien? Review Pub 4012, Page L-1 – ITIN Returns Visa status All visa types are OOS “Physical presence” determination Tricky if in US less than six months Most sites will see none of these, but…make counselors aware! 2016 CA-2 Instructor Workshop

W-2 Verification Code – In Full Swing! Will be displayed on 50 million W-2’s as: XXXX-XXXX-XXXX-XXXX Enter on TS form W-2 Entry is optional. Failure to enter will not affect IRS return processing https://www.irs.gov/Individuals/IRS-Tests-W-2-Verification-Code 2016 CA-2 Instructor Workshop

2016 CA-2 Instructor Workshop Schedule C Issues (1) If TP paid for health insurance inform TP that ignoring that adjustment could cost them – marginal tax rate of premium cost. If family had Marketplace coverage, OOS in any event Since we don’t do “Home Office” returns travel from home to work-site is always commute mileage Standards for a Home Office are high – if TP thinks they can claim, send to paid preparer 2016 CA-2 Instructor Workshop

2016 CA-2 Instructor Workshop Schedule C Issues (2) “de minimis” procurements are in scope because they don’t require Form 4562 (Depreciation and Amortization) There is a “safe-harbor” threshold for items costing less than $2500, but taxpayer must file a statement with the return. Tax-Aide policy – “better to get forgiveness than permission” I’ll send out the instructions for this so they can be given to TP in case the IRS inquires See: Schedule C Guidelines Summary on OneSupport for much more! 2016 CA-2 Instructor Workshop

2016 CA-2 Instructor Workshop Itemized Deductions Medical Medicare and MediGap premiums may be paid without appearing on any TP info forms CSA-1099-R box 5 only shows medical premiums Not dental, vision or long-term care premiums that may have been deducted 2016 CA-2 Instructor Workshop

Completing 1099-R with Nontaxable Distribution PSO – Medical Insurance paid from pension QCD – Qualified Charitable Distribution from IRA HSA – HSA contribution from IRA After entering 1099-R, preparer must visit : Income > IRA/Pension Distributions > Nontaxable Distributions And check the appropriate box 2016 CA-2 Instructor Workshop

EIC (and ACTC and AOTC) Checklist May be referred to as: Paid Preparer’s Due Diligence Checklist New this year –> will also apply to other refundable credits… Except TaxSlayer hasn’t caught on yet – they still only address EIC - Expect this form to change. 2016 CA-2 Instructor Workshop

Standard Responses and Situational Responses Responses meet Tax-Aide Standards Have a discussion Ask questions Use the Intake Sheet to make notes (or Notes in TaxSlayer) Don't ignore information presented 2016 CA-2 Instructor Workshop

Documents Used to determine Residency Earned Income Credit EIC Checklist 4/15/2018 Documents Used to determine Residency Accept taxpayer’s word on residency unless we have reason not to, and don’t ask for any documents to support it other than the Intake Sheet Standard answer 2016 CA-2 Instructor Workshop NTTC - TY 2016

Answer based on situation EIC Checklist – Part 1 From NTTC Training Slides Answer based on situation Standard answers based on normal Tax-Aide interview process 2016 CA-2 Instructor Workshop

EIC Checklist – Part 2 We don’t keep any records QC responses are situational 2016 Oregon Tax-Aide IWS

2016 CA-2 Instructor Workshop EIC Checklist -- Result If TP qualifies but it isn’t indicated, check your answers! 2016 CA-2 Instructor Workshop

“Miscellaneous Statement” – Huh? 2016 CA-2 Instructor Workshop “TaxSlayer Pro Online does not submit the information you type in this section to the IRS with the electronic file. The purpose of this section is to ask the additional questions required to determine EITC eligibility.” Need to check “This is a private statement”. Meaningless Statement – Skip right over it! 2016 CA-2 Instructor Workshop

2016 CA-2 Instructor Workshop You Have to do WHAT?? Other Checklists… may appear after EIC For a Business Always check: “Did not rely on any documents” For a Disability 2016 CA-2 Instructor Workshop

Itemized Sales Tax Deduction TaxSlayer’s calculator seems to have some inaccuracies (and erratic behavior) Also, can’t add non-reportable income IRS has a calculator – there is a link from TaxSlayer page Need to know: Approximate income ZIP code Household Size (number of exemptions) 2016 CA-2 Instructor Workshop

Jeff Bogart’s Wondrous Tools! https://cotaxaide.org/tools/ ACA Affordability Annuity Education Refund (Taxability of State Tax Refund) 2016 CA-2 Instructor Workshop

2016 CA-2 Instructor Workshop Amending Returns TaxSlayer’s VITA/TCE Blog Entry on Dec. 6 has federal amending guidance Has anyone tried it? 2016 CA-2 Instructor Workshop

Some forms print unnecessarily with no explanation Form 8880 will print if taxpayer is a Student – and properly calculate zero credit, but not clear why. A few others…I lost track 2016 CA-2 Instructor Workshop

ACA consideration for San Francisco and San Mateo Counties These counties have expanded County Children’s Health Initiative Program (C-CHIP) Children under age 20 are covered when household income is <322% of FPL They are eligible for “Government Coverage” They are not eligible for PTC 2016 CA-2 Instructor Workshop

2016 CA-2 Instructor Workshop Dealing with ID theft Dependents may now have IP PIN Enter all IP PIN’s on TaxSlayer: Miscellaneous Forms > IRS Identification PIN When to advise TP to file form 14039, Identity Theft Affidavit? Check one of two boxes: ID theft that has affected federal tax records, or ID theft that may affect federal tax records in the future 2016 CA-2 Instructor Workshop

TaxSlayer “Training Issues” TaxSlayer has characterized more than 100 NTTC-submitted concerns as “training issues” That means it’s up to us to train counselors how to deal with them Many relate to challenging confirmation of data entry during QR The NTTC is compiling these and plans to distribute detailed guidance 2016 CA-2 Instructor Workshop

2016 CA-2 Instructor Workshop Bits and Pieces Questions… Comments… 2016 CA-2 Instructor Workshop