EKS Training November 22, December 6 and 13th

Review Day #1 Tax Law Review  Filing Status  Exemptions  Income: Taxable vs Nontaxable  Standard Deduction  Refundable Vs Nonrefundable Credits

Review Day #1 Components of the 1040  Income – adjustments = AGI  AGI – deductions and exemptions = taxable income  Taxable income X your tax rate = tax  Tax – nonrefundable tax credits = tax (down to zero)  Tax + your payments (withholding, refundable credits, etc.) = your refund or balance due

Review Day # C & 1040  Review each section on the Intake & Interview Form and how it translates to the 1040

Standa rds of Condu ct Trainin g As a volunteer in the VITA/TCE Programs, you must: 1. Follow the Quality Site Requirements (QSR). 2. Not accept payment or solicit donations for federal or state tax return preparation. 3. Not solicit business from taxpayers you assist or use the knowledge you gained (their information) about them for any direct or indirect personal benefit for you or any other specific individual. 4. Not knowingly prepare false returns. 5. Not engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other conduct deemed to have a negative effect on the VITA/TCE Programs. 6. Treat all taxpayers in a professional, courteous, and respectful manner │ VSOC Quiz │ Volunteer AgreementVSOC Quiz Volunteer Agreement

Scenario #3

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

Intervie w Notes Review  Brandon & Olivia are married & will file a joint return  They have two children who lived with them all year  Cash donation was made  They had unreimbursed medical expenses  Olivia & kids had health insurance  They paid property taxes  They did not itemize last year  They want to split their refund between checking & savings 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

Tax Law Topic #1 Individual Taxpayer Identification Number (ITIN) Open: Publication 4012, Tab L

TaxWi se: Start Return Enter ITIN Number on Main Info page Students watch instructor

TaxWi se Students: 1.Enter ITIN for Brandon and 2.Input income documents for Brandon & Olivia

Tax Law Topic #2 Deductions: Itemized Vs Standard

Tax Law Topic #2 Itemized Deductions 1.Determine if Gonzaga’s should Itemize or take the Standard Deduction? Open: Publication 4012, Tab F

TaxWi se Instructor: Schedule A Students: WATCH

TaxWi se Students: Start a Schedule A  Mortgage interest  Insurance premiums  Property taxes  Charitable donations

Tax Law Topic #3 Affordable Care Act 1.Discuss coverage for Brandon, Olivia & Children 2.Determine if Brandon qualifies for an exemption Open: Publication 4012, Tab ACA

Publicatio n 4012: Affordable Care Act ACA Decision Trees Olivia & Children: Refer to Pub 4012, ACA-1 Brandon: Refer to Pub 4012, ACA-2 & Health Care Exemption ACA-5

Afforda ble Care Act Pub 4012, Tab ACA Brandon is not eligible for coverage because he is undocumented. He qualifies for a healthcare coverage exemption that will be claimed on Form See Pub 4012, ACA Tab 2

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

TaxWi se Students: Complete Form 8965

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.Splitting the Refund  Pub 4012 Tab K-1 & K-2 2.Review the federal return  Peer-Return Review 3.Finish the return

Knowle dge Check! If your client is itemizing their deductions, which Schedule do you complete in TaxWise?  Schedule A What are two items does a client usually have to indicate that they may itemize?  Mortgage interest from owning a home and really high unreimbursed medical bills True or False: Filers with an ITIN are eligible to receive the Earned Income Tax Credit?  False

Now Let’s Practice Pull Out your 6744