EKS Training Scenario Three

Ground Rules o Don’t work ahead – stay on the current task o Turn off your cell phone o Question/Comments – raise your hand, stay in your seat o No side conversations - don’t even ask your neighbor for help o Returning volunteers sit next to new volunteers o Bring your materials every day o At least try to do your homework – bring your questions

Class Structure 4 Steps:  As a class, we will review Interview Notes, Intake & Interview Sheet (13614-C) & supporting documents for each scenario.  Instructor will teach Tax Law – referencing Publication 4012 and C  Instructor will show you how to enter information into TaxWise. WATCH!  Now DO! Students will enter information on TaxWise

Scenario #3

What you will learn in this scenario: 1.Filing a tax return as dependent 2.Gambling winnings income (W-2G) 3.Affordable Care Act for dependents 4.myRA contribution What you will review in this scenario: 1.Filing Status 2.Personal Exemptions 3.Income – W-2 4.Splitting refund on Form 8888

Scenario #3 Let’s review Jesse’s Information:  Interview Notes  Intake & Interview sheet C  Tax Documents

Interview Notes Review  What did you learn about Jesse?

Intake & Interview Deep Dive with the C  Did they bring all the required documents?  Everything accurate?  What’s missing/wrong/mismatched that needs to be changed?  Compare tax documents and interview notes  Make any corrections needed on C  Fill out greyed out boxes (dependency and ACA) Publication 4012, Tabs K-3 and K-4

Who should file? Does this taxpayer need to file their return? Or should they? Publication 4012, Tab A

In Scope? Is this client eligible for VITA services? What certification level is needed to prepare this return? Publication 4012, pages 8-10 Scope of Services Chart

Tax Law Topic #1 Filing a return as a dependent  Review personal exemption and dependency exemption  What is a “qualifying child” or “qualifying relative”? Publication 4012, Tab C-3

Tax Law Topic #1 What exemptions can Jesse take? Does Jesse qualify as “qualifying relative” or “qualifying child” of his parents?

Tax Law Topic #2 Filing Status Publication 4012, Tab B-1

Tax Law Topic #2  Review C, Part II, numbers 1 & 2  Let’s review the Decision Tree  Could Jesse qualify for more than one status?

TaxWise You Got This!: Enter Jesse’s:  Personal information on Main Information Sheet  Select filing status  Everything on page one of C goes on Main Info  Enter income documents: W-2 Publication 4012, K-6 to K-11 for Main Info and D-3 to D-9 for Income

TaxWise Students: WATCH instructor Ensure Jesse’s dependency is accurately reflected on the Main Information Sheet Publication 4012, K-8

TaxWise Students: Ensure Jesse’s dependency is accurately reflected on the Main Information Sheet Publication 4012, K-6 through K-8

Tax Law Topic #3 Gambling Winnings  Casinos, raffles and lotteries sometimes give a W- 2G to winners  Must be reported on line 21 Publication 4012, Tab D-3, D-4 and D-5

TaxWise Students: WATCH instructor Enter Jesse’s W2-G on Worksheet 7, linked to 1040 line 21 Publication 4012, Tab D-4

TaxWise Students: Enter Jesse’s W2-G on Worksheet 7, linked to 1040 line 21 Publication 4012, Tab D-4

Tax Law Topic #4 Affordable Care Act Exemptions  Did Jesse have coverage (MEC) all year? Interview Notes, C, and Publication 4012, Tab ACA

TaxWise You Got This!: Enter Jesse’s full coverage on ACA Worksheet Publication 4012, Tab ACA

Refund  Does Jesse want to direct deposit his refund?  If so, is he requesting to split his refund?  Does he want to buy a savings bond? C and Interview Notes

Savings Ask Every Taxpayer (AET)!  Remind Jesse of the savings option  Answer Questions  Be enthusiastic and positive!

Savings myRA  myRA is a Roth IRA that invests in a new United States Treasury retirement savings bond, which will not lose money.  myRA was designed for people without access to employer-sponsored retirement savings plans and for people looking for a simple, safe, and affordable way to start saving for retirement.  myRA accounts cost nothing to open, have no fees, and don’t require a minimum amount of savings.  Can be opened online and account numbers will be available in minutes 

TaxWise You Got This!: Enter Jesse’s Form 8888:  On the 8888, fill in both accounts, amounts, choose checking/savings  Best practice to check they were entered in correctly  On the 540, check the “different account” option, will have to enter twice to verify Interview Notes & Publication 4012, Tab K-14 to K-15

Completing the CA return 1.Get the red out! Most information will automatically populate from the federal return 2.State EITC Form – 3514* 3.If you have entered more than one W-2 on the 1040, you will have to manually add the additional W-2’s. The first W- 2 will carry over, but the rest won’t. 4.Make sure to complete the direct deposit or balance due portion of the return 5.Complete the CA Renters Credit Worksheet when applicable. *At the time of this ppt creation, details on how TaxWise will auto-populate the 3514 were not available

TaxWise You Got This!: Finish Jesse’s state return (540)

Finishing the return THINGS YOU NEED TO KNOW ABOUT FINISHING A RETURN 1.Ask the questions in the Prep Use Fields 2.All returns must be Quality Reviewed (checklist on C) Tab, K-25 3.Run Diagnostics to check for errors 4.Print returns (Federal and State) for Taxpayer 5.Review return with taxpayer (Formula 1040 activity) 6.Have Taxpayer and Spouse sign 8879s for Federal and State and remind them they are responsible for their return and by signing, they are agreeing it is accurate:  One copy for the taxpayer  One copy for the VITA Site Publication 4012, Tab K

Check our work  Do we have matching AGI, refund?  Let’s review entry of: -W-2 -W-2G -Dependent filing a return -ACA – full coverage as dependent -Split refund

Look it up! What was our first clue that Jesse is a dependent, being claimed by someone else? C, Question 10 True or False: You must claim gambling winnings on your Line 21 of your Publication 4012, Tab D-4 True Where is the box you check in TaxWise to ensure they know Jesse is a dependent on another return? Main Information Sheet What is the most important thing to remember when talking about savings with taxpayers? Ask every taxpayer (AET)! Be positive and enthusiastic! Answer any questions!