Training Using New NTTC Materials Carl Kantner

2018 Workbook Revised Two Objectives Provide Instructors with tools to facilitate classroom instruction Provide volunteers with exercises for proficiency and certification CO1 IW 2018

Contents Introduction/Table of Contents Training Exercises (New) Practice Exercises Quizzes CO1 IW 2018

Two Types of Exercises Training Exercises Practice Exercises For Instructor use in a classroom setting Contain all the core topics usually encountered on the Advanced Exam Separate Instructor Guide PowerPoint Presentations Provided for volunteers to reinforce/refresh knowledge and skill For volunteers to demonstrate proficiency and meet certification requirements CO1 IW 2018

Training Exercises Core Exercise Series (four exercises) Designed for new volunteers Core topics taught using four return scenarios Instructor Guide provides information and Ideas PowerPoint Presentations Core Inclusive Exercise For new or returning volunteers Single Exercise containing all core topics Instructors teach topics in old 1040 line-by-line approach Instructor Guide provides additional information CO1 IW 2018

Core Exercise Series Each lesson is designed around an exercise return Separate Instructor Guide provides information and ideas Single Working Taxpayer Single Working Parent Young Married Couple w/Self-Employment Lesson Senior Married Couple w/Capital Gain/Loss Lesson ACA Supplement Exercises require class to conduct an interview Example discussion points are provided for each tax topic The exercises only contain the Intake/Interview Sheet and TP documents so an interview is required. Discussion points are provided for each tax topic covered in the lesson CO1 IW 2018

Single Working Taxpayer Tom Andrews This lesson is used with NTTC Workbook Exercise Tom Andrews. It covers the following tax topics: Single filing status, Income (wages, interest, and unemployment), Adjustments (IRA Deduction and student loan interest), standard deduction, and retirement savings credit Information for conducting this training lesson is contained in the Instructor Guide for Tax-Aide National Tax Training Committee Workbook (Workbook Instructor Guide). Instructors should add, delete, or modify slides as necessary to meet their district training needs. Instructors should direct the volunteers to review appropriate section of the Counselor Resource Guide (Pub 4012) whenever possible. If volunteers wish to take notes during class, they should note that Pub 4012 is a good place to record them. Slides at the end of this presentation provide instructions for entering information for the various tax topic into TaxSlayer. Pub 4012 Tab O is emphasized as the best source for information on entering information into the software.

Single Working Taxpayer This lesson will focus on a simple tax return for a typical single employed taxpayer The following tax topics will be discussed: Single Filing Status Income: Wages, Interest, and Unemployment Adjustments: IRA Deduction and Student Loan Interest Standard Deduction Credits: Retirement Savings Credit Tom Andrews – Single Working Taxpayer Lesson

Tom Andrews – Single Working Taxpayer Lesson Filing Status Two criteria: Marital status on last day of tax year Federal definition – “married” Legal marriage under laws of any state or country Does not include civil unions or registered domestic partners Persons living in the home (may or may not be dependents) or supported by taxpayer Instructors will introduce the general topic of Filing Status, but only Single will be discussed in this lesson There is no requirement for taxpayers to substantiate their marriage – their statement that they are married is enough U.S. state includes the district of Columbia and U.S. territories Dependent: An individual who may be claimed as a dependent on another person’s tax return; that is, someone who meets all applicable dependency tests. Will discuss dependents in a later lesson Tom Andrews – Single Working Taxpayer Lesson 9

Filing Status Importance Many tax items affected by filing status Necessity to file a return (Pub 4012 Page A-1 Chart A) Standard deduction (Pub 4012 Page F-1 Exhibit 1) Tax rate bracket Eligibility for certain credits (e.g., Pub 4012 Page I-3 Step 3, and others) Instructors should direct volunteers to open and review the indicated sections of Pub 4012 Tom Andrews – Single Working Taxpayer Lesson 10

Five Choices for Filing Status Pub 4012 Tab B Single Married filing jointly (MFJ) Married filing separately (MFS) Head of household (HoH) Qualified widow(er) (QW) Single Filing Status: Filing status that applies to a taxpayer who (1) has never married, or (2) is legally separated or divorced. Tom Andrews – Single Working Taxpayer Lesson

Tom Andrews – Single Working Taxpayer Lesson Filing Status: Single Not married as of December 31 Married, but legally separated There may be a more advantageous filing status if the taxpayer has dependents or other qualifying person (covered in later lesson) Legally separated involves a court document; a private contract is not enough Tom Andrews – Single Working Taxpayer Lesson

Tom Andrews – Single Working Taxpayer Lesson Income Taxable vs Non-Taxable Examples? Turn to TAB D-1 Earned vs Not Earned Turn to TAB I-1 Ask the class for examples of taxable vs non-taxable and earned vs not earned then direct them to Pub 4012 TABs to review Tom Andrews – Single Working Taxpayer Lesson

Tom Andrews – Single Working Taxpayer Lesson Income: Wages Earned or Not Earned? Wages are reported on form W-2 See Intake/Interview Form Tom Andrews – Single Working Taxpayer Lesson

Training Exercise Interview Each exercise requires the class to conduct an interview Volunteers review the I&I Sheet and taxpayer documents Volunteers then interview the taxpayer (Instructor)* Interview topics and responses are provided in the Workbook Instructor Guide Volunteers update and annotate the I&I Sheet in response to the interview * Option: two Instructors could conduct the interview in a role play format CO1 IW 2018

Interview Example Example from the Workbook Instructor Guide Tom Andrews (Single Working Taxpayer) marked Yes for receiving unemployment benefits There is no 1099-G Tom replies he received benefits for two months while laid off but did not receive the form Instructor prompts discussion: “What are some options?” Instructor states that Tom is able to call the Unemployment Office and provides the amount received, taxes withheld and address and EIN of the agency Volunteers record this information on the I&I sheet The Instructor Guide provides the Instructor with all the information to identify interview issues and responses to interview questions from the volunteers CO1 IW 2018

Training Exercise Discussion Points After volunteers make a TaxSlayer entry Instructors have an opportunity to reinforce learning points The guide provides example discussion points for each tax topic CO1 IW 2018

Discussion Point Example Tom Andrews (Single Working Taxpayer) makes a contribution to his IRA After volunteers enter this in TaxSlayer Instructors could prompt discussion What limits this deduction? What effect can this have on the return? Was a retirement savings credit generated? What limits the retirement savings credit? What form will be printed for the taxpayer? The Instructor Guide provides example discussion points for each tax topic as volunteers enter information into TaxSlayer CO1 IW 2018

Practice Exercises Focused (New) – Five exercises that focus on specific tax topics Core* – Exercises that contain core topics that all volunteers must be familiar with Comprehensive* – Exercises that contain advanced topics which most experienced volunteers should be comfortable handling Specialty* – Two exercises that contain advanced topics (HSA and Education Benefits with unrestricted scholarships) *Refreshed versions of last year’s workbook exercises CO1 IW 2018

Focused Exercises Each exercise is focused on a specific core topic Instructor Guide provides additional information and ideas Basic Income Self-employment Income Retirement Income Investment Income Itemized Deductions and Education Benefits Exercises can be used with the Core Training Series to reinforce the lesson topics CO1 IW 2018

Core Inclusive Exercise A single exercise containing all the core topics Separate lessons in old Form 1040 line-by-line sequence AGI and Refund Monitors included to stay on track Requires class to conduct an interview Best use would be for returning Counselors in a classroom setting to refresh their knowledge and software skills CO1 IW 2018

Quizzes Same as last year: ACA Quizzes Filing Status/Dependent Quizzes Tax Topic Quizzes CO1 IW 2018

Instructor Guide Separate document to be distributed electronically through TRSs Information and ideas for using the Training Exercises in the classroom CO1 IW 2018

Instructor Guide Instructor Guide for Tax-Aide NTTC Workbook I will send an electronic copy to any instructor that requests one CO1 IW 2018

Instructor Guide Contents Introduction with Table of Contents Individual Guides for each Training Exercise Notes for each Practice Exercise highlighting key learning points Detailed notes for the two Specialty Exercises Appendix - Separate Interview Notes for the Training Exercises for use outside of the classroom Appendix - Example training schedules (New and Returning Volunteers) CO1 IW 2018

PowerPoint Presentations A PowerPoint Presentation has been prepared for each of the four exercises in the Core Training Exercise Series Slides drawn and adapted from the various NTTC Training Slide Sets Slides prompt volunteers to open and review the Volunteer Resource Guide (Pub 4012) wherever possible Slides for TaxSlayer data entry prompt volunteers to refer to Volunteer Resource Guide Instructors should delete, add, or modify slide to meet district training needs Presentations are available in the Portal Library CO1 IW 2018

Additional Resources from NTTC Available in the Portal Library New Volunteer Orientation Policy and Procedures Review Client Facilitator Training NTTC Training Slides (Release 1) 44 Topics CO1 IW 2018

New Volunteer Counselor Orientation TY2018 {Colorado, Your District} {Date} Please enter your State, split state, and orientation date. If you are conducting more than one Orientation session make sure to update accordingly

Tax-Aide Policies and Procedures Review For All Volunteers Tax Year 2018 This presentation provides training on the policies and procedures that all volunteers should be familiar with. Instructors should adjust their presentations depending on the volunteers level of certification For example: Client Facilitators (CF) may only need to be aware of some of these policies while having more emphasis on others QSRs 8 and 9 have little meaning for a CF while QSRs 3 and 10 are a major focus of the CF’s responsibilities Local Coordinators (LC) should not only be aware of all of these policies, but should also have emphasis on how they would ensure the QSRs and other policies are implemented and enforced at their sites LCs should receive far greater detail and discussion about the Incident Reporting information than other volunteers

The Client Facilitator Tax Year 2018 This training supplements the Tax-Aide Policies and Procedures training which is required for all AARP Foundation Tax-Aide Volunteers The Client Facilitator is generally the first “face” the taxpayer sees when coming to a site. The CF “facilitates” the start of the process of determining if the taxpayer is eligible to use Tax-Aide’s services and ensuring the taxpayer has all the needed documents.

Questions? CO1 IW 2018