As of Nov 2017 Subject to change… What New Tax Year 2017 As of Nov 2017 Subject to change…

CORE: COlorado REsource New Scope Provisions – CORE: COlorado REsource Donation of vehicle, boat, plane – If value $500 or less Conversion of traditional IRA to Roth Allows use of Form 8606 Part II 2 CO1 – IW 2017 CO1 - LC 2017 2

Scope Manual On OneSupport Help Center CO1 - LC 2017

New Provisions – Sch A Medical Expenses now subject to 10% floor for all taxpayers Indexing (i.e. standard deductions, mileage – $ 0.53.5, retirement, HSA, etc.) 4 CO1 - LC 2017 CO1 – IW 2017

Extended Provisions – Expired December 31, 2016 COD exclusion for principal residence Premiums for mortgage insurance deductible as interest for qualified residence Nonbusiness energy property credit Adjustment for qualified tuition and fees In the past few years, these provisions have been extended every time they were scheduled to expire. They have NOT been extended as of August 14, 2017. 5 CO1 - LC 2017 CO1 – IW 2017 5

TaxSlayer Computation Changes Added Section IX – Form 5329 –Failure to take RMD – Waiver of Penalty – 2016 and 2017 Reinstated Refund/Balance Due Monitor – 2016 and 2017 Form 5329 – RMD Penalty: See screen shots on next two slides. Fixed for both 2016 and 2017 Refund Monitor: Fixed for both 2016 and 2017 Medicaid Waiver Payment : If spouse received Medicaid waiver payment, TaxSlayer was reducing the TP's earned income. Fixed for both 2016 and 2017. CO1 - LC 2017

TaxSlayer Computation Changes Carryforward data includes: Taxpayer’s/Spouse’s name, filing status, SSN/ITIN, dob and phone # W-2, 1099-R EIN, Schedule D (Capital loss carryforward) Schedule C name, business code and description Schedule K-1 payer information CO1 - LC 2017

TaxSlayer Computation Changes Child care providers with dependents claimed Banking information for direct deposit Schedule B financial institution information Form 1099-INT/DIV State and local refund worksheet Counselor can choose which, if any, items to carryforward CO1 - LC 2017

TaxSlayer - Carryforward Consent – 2018 Filing Season All taxpayers must agree to or deny cross- site carryforward for 2019 filing season in 2018 Consent form will be in e-file section 2017 return cannot be e-filed unless consent form is completed Consent applies across all VITA/TCE sites – no special Tax-Aide provisions for 2019 tax season CO1 - LC 2017

TaxSlayer Carryforward: Normal – Extended – Global Normal Carryforward When: 2018 Filing Season* and future seasons What: Carryforward from prior-year returns prepared at the SAME Tax-Aide site How: Counselor automatically given option to use some or all of data. Extended Carryforward When: 2018 Filing Season ONLY What: Carryforward from a Tax Year 2016 return prepared at ANY still active Tax-Aide site. How: Counselor automatically given option to use some or all of data. The IRS is giving Tax-Aide a one-year exception allowing carryforward from ANY still active Tax-Aide site. During Filing Season 2018, Tax-Aide will implement consent questions for Global Carryforward. Global Carryforward When: 2019 Filing Season and future seasons What: Carryforward from ANY still active VITA/TCE site (including Tax-Aide sites) if taxpayer consented in prior year. How: Counselors will need to ask for consent** each filing season starting in Filing Season 2018. Denying permission will not impact e-filing that year or normal carryforward at the SAME site in following year. * Filing season, aka tax season = the ~February – April period when most tax returns are prepared, e.g., filing season 2018 is ~Feb 1 – Apr 17, 2018. ** Tax year = the calendar year for the tax return, e.g., tax year 2017 (TY17) is the tax return for 2017 that is due by April 17, 2018 CO1 - LC 2017

TaxSlayer Carryforward data: May be dropped from list. Name, Filing Status, SSN/ITIN, DOB, phone # Dependents Name, DOB, SSN/ITIN, relationship W-2 (employer EIN database) Form 1099-R (payer EIN database) Schedule D (Capital Loss carryforward) Schedule C (name, business code, and description) Schedule E rental information and Schedule K-1s Child care providers with dependents claimed Banking information for Direct Deposit Schedule B financial institutions information for Form 1099- INT/DIV State and local refund worksheet Return Notes Counselor can choose which, if any, items to carryforward CO1 - LC 2017

TaxSlayer - Computation Changes Continue button saves information entered on state entry pages – 2017 Field validations added to state entry pages – 2017 Edit state return with 1040NR – 2017 Continue button: Selecting the continue button on the state screens will post data on each page. This will give the preparer the confidence that the data entered is saved. Field validations: Field level validation will occur on each page of the state return. The corrections to the validation errors will mimic the federal program making the state entry more streamlined 1040NR: Previously, if a return contained a form 1040NR, the preparer was unable to edit the state return. There are situations where the site needs to make additions or subtractions to the state return. CO1 - LC 2017

TaxSlayer - Computation Changes Age of taxpayer and dependent(s) added to Client Form Listing Summary – 2017 Direct Debit Information added to Client Form Listing Summary – 2017 Age: Age of taxpayer and dependents as of end of tax year will be added to the Client Form Summary Page of the QR print set. 2017. Direct Debit Information: Previously, the direct debit information was not included in the print package. For 2017, the RTN, account number, amount and date of debit will be included in the print set. CO1 - LC 2017

TaxSlayer - Changes CO1 - LC 2017

TaxSlayer - Navigation Changes Due diligence questions have been eliminated. Questions to determine EITC eligibility located in basic information section Due Diligence: Eliminated due diligence questions. EITC Eligibility Questions: See next slide. Form 8888: If Form 8888 is offered by site, but taxpayer has elected not to split refund, for 2016 preparer was required to key the refund amount in if they were not wanting to split their refund or purchase savings bonds. With change, amount will be entered automatically once the preparer selects “pull refund”. If volunteer has completed the Form 8888 and the amount of refund changes due to a change in the return (eg additional dividend income increases taxable income and decreases refund), the program will give you a warning that the amount entered into the Form 8888 does not match the new refund amount. The Form must be revised in order to e-file the return. Fixed for both 2016 and 2017. CO1 - LC 2017

TaxSlayer - Navigation Changes Due diligence questions eliminated Can create pdf of 15 forms/schedules After rendering one of new form views, next attempt to print complete return from 1040 View page just gives that previously selected single form. Printing from Summary page or from Client Search work properly. Is an issue with printing next item – reverts to selected form CO1 - LC 2017

TaxSlayer - Navigation Changes Former Federal ReturnTypes (Refund) Revised Federal Return Types (Refund) Electronic Mailed Direct Deposit Paper Return With Direct Deposit Paper Return E-File: Paper Check E-file: Direct Deposit Paper Return with Direct Deposit Paper Return CO1 - LC 2017

TaxSlayer - Navigation Changes Former Federal Return Types (Balance Due) Revised Federal Return Types (Balance Due) Mail Payment Direct Debit Paper Return with Direct Debit Paper Return E-file: Mail Payment E-file: Direct Debit Paper Return CO1 - LC 2017

TaxSlayer - Navigation Changes Modified left navigation bar – 2016 and 2017 Preparer can check status of return from left navigation bar while in another return – 2016 and 2017 Able to enter free form Box 14 entries on a W-2 – 2017 Modified Left Navigation bar: For 2017 left navigation bar will have a more streamlined look. Added the ability to collapse the menu for more on screen real estate. Added the menu items found in the federal section to the left navigation bar. See next slide for example of this new feature. Preparer can check status of return: Currently, if the preparer wants to check the status of another return they must log out of the return they are in. This new feature will prevent the preparer from having to close their existing return to answer a quick status question about another return. W-2 Box 14 Entries: Preparer can now enter information in Box 14 of Form W-2. This is in addition to the drop down list already available. Available for 2017. CO1 - LC 2017

TaxSlayer - Capacity Changes Increased print servers from 2 to 6 Increased calculation servers from 16 up to 64 depending on demand CO1 - LC 2017

TaxSlayer Issues Many reported on VITA/TCE Blog – encourage all to check site before raising questions https://vitablog.taxslayerpro.com/ CO1 - LC 2017

TaxSlayer Issues Gambling losses entered do not carry to Schedule A, line 28 Trying to create Schedule E for Royalties entered on Form 1099-MISC kicks user completely out of the program Dependent information not carrying to page 2 of Form 2441 CO1 - LC 2017

TaxSlayer Date Issues Some forms, references on data entry pages and rates and amounts not updated to 2017 In progress Some IRS acceptance tests still using 2016 rates E-File: Direct Debit is forcing immediate debiting since today's date is after 4/15/2017 Entering today or later 2017 date for stock transaction is not accepted CO1 - LC 2017

Tests – Practice Lab 2017 Advanced Test Capital loss carryover doesn’t work in Practice Lab 2017 Advanced Test – asks for mileage amount, but software shows Schedule C-EZ (can force Schedule C in site print set) HSA Test – situation as presented is confusing as there are excess contributions Fixed Nov 30 Advanced Q #20 Drake HSA test question is worded: what amount is USED in the calculation, not what amount is DEDUCTIBLE. May want to caution vols to take that question literally ($2,000 is used to start, $1,900 becomes deductible). $1,900 is not an available answer. CO1 - LC 2017

TaxSlayer - Stress Tests Goal is to stretch boundaries of the online software operating system Date Dec 20: 12:00pm – 1:30pm MST Stress test procedures and scenarios to be posted on blog CO1 - LC 2017

ETAs Workbook answers using Practice Lab 2017 – mid-Dec NTTC Training Slides Rel 2 – second half of Dec NTTC modified Pub 4012 – second half of Dec Have received some errata for training slides – thank you! CO1 –IW 2017

What’s New? Comments… Questions? CO1 - LC 2017