2016 CA-2 Instructor Workshop … and Day Two Begins Any New TaxSlayer Tips? Let’s look at some CA Issues. Questions from Day 1? 2016 CA-2 Instructor Workshop

Medicaid Waiver Income Not Taxable Income subject to Medicaid Waiver shall not be taxed – not optional Conditions: Caregiver and taxpayer reside together Not a “commercial” care home Dependency not relevant State agency doesn’t know about the circumstances Complexities Impacts EIC, Advanced CTC and Child/Dependent Care Credit 2016 CA-2 Instructor Workshop

TaxSlayer Medicaid Waiver Treatment Still waiting for something from TaxSlayer 12/11/16 BULLETIN!!! TaxSlayer tells me that they plan to add a check box to the W-2 form to indicate Medicaid Waiver treatment There is a possible workaround Will send out details if necessary 2016 CA-2 Instructor Workshop

Medicaid Waivers – The Future CA Dept. of Social Services is asking workers to “self-certify” Will take affect during 2017 at the earliest Will likely be perpetual issue as workers don’t necessarily understand rules …or may they choose to ignore them 2016 CA-2 Instructor Workshop

Quick Review of California EIC (Almost) same rules as federal Based only on CA W-2 income Goal is to provide extra support for very low income tax filers Sep 2015 Regional Meetings

California Earned Income Tax 2016 CA-2 Instructor Workshop

Fed plus CA EITC (if all income is W-2) 2016 CA-2 Instructor Workshop

TaxSlayer and California EIC Virtually seamless (when it works) … and that could be a problem Practice Lab 15 was erratic in treatment No way to enter address where EIC dependent lived with the TP Defaults to mailing address, could be a PO box May have to complete CA version of Paid Preparer’s EIC Checklist, form 3596 Stay tuned Sep 2015 Regional Meetings

2016 CA-2 Instructor Workshop Ready to Move On??? Questions… Comments… 2016 CA-2 Instructor Workshop