EKS Training

Review Day #2 Tax Law Review  Individual Taxpayer Identification Number (ITIN)  Itemized Deductions  Affordable Care Act: Exemptions

Scenario #4

5 Step Plan: 1.As a class we will review Client Notes, and 2.Intake & Interview Sheet & supporting documents. 3.Instructor will teach Tax Law – referencing Pub 4012 and C 4.Instructor will show you how to enter information into TaxWise. WATCH! 5.Now Do! Students will enter information on TaxWise

Scenario #4 Let’s review Olivia & Brandon’s Information:  Pull out Interview Notes  Pull out Intake & Interview sheet C

Intervie w Notes Review  Olivia and Brandon Rodgers are married and want to file a joint return.  Brandon retired and began receiving retirement income March 1, Brandon and Olivia selected a joint survivor annuity for these payments.  Olivia and Brandon paid $5, in property taxes for their home.  Olivia and Brandon did not itemize last year.  Brandon is a self-employed landscaper. He is a cash-basis taxpayer who materially participates in the operation of his business.  The total mileage on his work vehicle for 2014 was 14,325 (5,628 commuting miles). He placed his car in service on January 6, 2010 and always takes the standard mileage rate. Brandon used Olivia’s car for personal use.  Both Brandon and Olivia have employer provided health insurance all year.  If Olivia and Brandon are due a refund, they want their refund to be directly deposited in their checking account. If they have a balance due, they will mail in the payment. Review C to ensure responses match

Intake & Intervie w Let’s review C  Everything accurate? If not, what’s missing/wrong/needs to be changed?  Notice anything different?  Did they have all the required documents?  Make any corrections needed on C

Publica tion 4012 Is client eligible for VITA services? Refer to Publication 4012 page 8-9 Scope of Services Chart

TaxWi se Instructor: Start the return on Main Information Students: WATCH instructor

TaxWi se Students: Start the return on Main Information  Do Not Enter Income Documents

TaxWis e Students: Now, input income documents  W2  1099-INT

Tax Law Topic #1 Retirement Income Open: Publication 4012, Tab D Pull out: Brandon’s 1099R

TaxWi se Instructor: Input 1099R information on 1040 Students watch instructor

TaxWi se Students: 1.Enter 1099R for Brandon Reference Publication 4012, Tab D pages 19-22

Tax Law Topic #2 Social Security Benefits Reference:  Publication 4012, Tab D-22  Pull out Form SSA-1099 (Social Security Benefit Statement)

TaxWi se Instructor: Input SSA-1099 information on 1040 Students watch instructor

TaxWi se Students: Enter SSA-1099  Reference Publication 4012, Tab D-22

Tax Law Topic #3 Schedule C & Cez 1.What is it? 2.When does this schedule need to be used? 3.What is in scope for VITA sites? 4.What are the requirements? Open: Publication 4012, Tab D-10

TaxWi se Instructor:  Input information on Schedule C  Refer to information on interview notes & C Students watch instructor

TaxWi se Students: 1.Enter information on Schedule C Reference Publication 4012, Tab D-10-11

Tax Law Topic #4 Capital Gain/Loss Transactions 1.What is it? 2.What is in scope for VITA sites? 3.What are the requirements? Reference:  Publication 4012, Tab D-10 & D-3  Pull out Form 1099DIV, 1099INT, 1099B

TaxWi se Instructor: Enter: 1099-DIV; 1099INT & 1099-B Students watch instructor

TaxWi se Students: Enter: 1099-DIV; 1099INT & 1099-B  Reference Publication 4012, Tab D-10 & D-15

Tax Law Topic #3 Schedule C & Cez 1.What is it? 2.When does this schedule need to be used? 3.What is in scope for VITA sites? 4.What are the requirements? Open: Publication 4012, Tab D-10

TaxWi se Instructor:  Input information on Schedule C  Refer to information on interview notes & C Students watch instructor

TaxWi se Students: 1.Enter information on Schedule C Reference Publication 4012, Tab D-10-11

Tax Law Topic #5 Affordable Care Act 1.Discuss coverage for Brandon & Olivia 2.Review minimum essential coverage Reference:  Publication 4012, Tab ACA  C Part VI

TaxWi se Instructor: Enter Information for ACA, Form 8965 Students: WATCH

TaxWi se Students: Enter Information for ACA, Form 8965  Reference Publication 4012, Tab ACA

CA State Return Completing CA portion of return 1.Follow instructor to learn how to complete this section

Reviewin g and completi ng the return 1.Review the federal return  Peer-Return Review 2.Finish the return

Knowle dge Check! If someone comes in with a 1099-MISC, what schedule will you complete in TaxWise?  Schedule C What is the maximum amount of expenses allowed, to file a Schedule C/Cez, for VITA?  $10,000 True or False: Most VITA clients will have taxable social security benefits?  False, most will have nontaxable social security benefits because they often don’t have another source of income that makes a portion of their social security taxable What is the common form you will receive from a client if they have retirement income?  1099-R What line do you link from on the 1040 to input a 1099-R?  Line 16

Now Let’s Start the Test!!! Pull Out your 6744 You Can Do It!!!