TAX-AIDE District 18 Training Plan December 9, 2015

TAX-AIDE District 18 Overview ● Five tax preparation sites north of Denver  Boulder, Broomfield, Lafayette, Louisville, Longmont ● Approximately 70 total volunteers ● Starting our 3 rd year of Immersion training

TAX-AIDE Training class methodology Replicate end-to-end process used at tax prep sites Instructors lead counselors in preparing multiple returns  Use modified NTTC Workbook scenarios  Cover all common District 18 taxpayer issues  Do not use templates Instructors pause regularly to direct counselors to applicable reference material for discussion (4012, Pub 17, Wiki page) Proceed at pace appropriate to counselor skill levels with frequent pauses to compare results Each new counselor has a mentor alongside

TAX-AIDE Counselor feedback from Jan 2015 training Overall effectiveness  All ratings 4 or 5 on scale of 1 to 5 Most helpful training topics, in order  ACA, all, education benefits, broker statements, TWO – 4012 link Least helpful topics, in order  None, multiple 1099-Rs, basic material What to improve, in order  Nothing, more ACA examples ● Frequent comment: “Confidence”

TAX-AIDE Change in 2016 training sessions ● Previous years: Two sessions  One day for 1 st year counselors  Four days for all counselors (~ 60) ● 2016: Three sessions (< 30 people)  Introductory for 1 st year counselors  Basic for new and less experienced counselors  Advanced for more experienced counselors  Appropriate session for each counselor determined by Local Coordinators  Advantages: Set pace and content for skill levels, more individualized training, easier logistics

TAX-AIDE Three distinct training sessions 1. Introductory Training Friday, December 11 Tax-Aide program overview How to become a Tax-Aide Counselor  Upcoming training sessions  Training and reference materials  Certification and qualification TaxWise Introduction  How to navigate TWO  Preparing a simple return

TAX-AIDE 2. Basic Training Mon-Wed, January Review of Tax-Aide program and policies, volunteer responsibilities, tax preparation process, TY 2015 tax law changes, Wiki Preparation of three straightforward returns in TWO with “routine” tax law topics Emphasis on use of reference materials Everything they need to know to pass Advanced Certification tests and prepare most taxpayer returns Three distinct training sessions

TAX-AIDE 3. Advanced Training Thurs/Fri, Jan OR Mon/Tues, Jan Two sites attend Thurs/Fri, three sites attend Mon/Tues Brief review of TaxAide program and policies, TY 2015 tax law changes, Wiki Preparation of one comprehensive return with emphasis on complex tax law topics Everything they need to know to pass Advanced Certification tests Optional session at end: amendments, part-year CO return, Health Savings Accounts Three distinct training sessions

TAX-AIDE Training preparation Select and modify scenarios from NTTC Workbook  Reduce some duplication but not all  Add taxpayer forms and conditions to cover all relevant situations  Introduce modifications to taxpayer forms to illustrate teaching points (e.g., 1099-R codes)  Fit lessons into allocated time Develop matrix of topics / returns / instructors / schedule

TAX-AIDE Partial Matrix for Basic Session Black = 1 st time topics Blue = repeated topics Red = scenario modifications 1040 LineCunningham Holmes Yale 1-5 Filing statusInterview and Intake Sheet Who must/should file? MFS, compare with others MFJ Deceased spouse MFJ 6 DependentsExemptions Qualifying child/relative 4012 tables and Wiki dependent calculator Granddaughter Children, Parent 7 WagesIncome types W-2 W-2s Tip income 8 Interest – taxable1099-INT Interest – tax free 1099-INT from broker 1099-INT 9 Dividends 1099-DIV from broker 1099-DIV 10 Taxable state refund Make refund taxable and add prior year data 11 Alimony received Add Alimony received 12 Self-employment Remove business income from notes 1099-MISC box 7, cash, expenses 13 Capital gains 1099-B, Supplemental exercise data 15, 16 Retirement income 1099-R, with changes for multiple conditions Early distribution, 1099 Simplified Method, PSO exclusion

TAX-AIDE Partial Matrix for Basic Session Instructor Opening 1.5 hours Cunningham 3.25 hours Holmes 6 hours Yale 9.75 hours Tom Tax-Aide overviewFederal return 1 hour2.75 hours Mark Return start Investment income 1.5 hours Judith Return start Various income Education adj&cred 4 hours Ray Retirement income Other income 1040 page 2 items Return finish 2.5 hours

TAX-AIDE Partial Matrix for Advanced Session Red = scenario modifications 1040 LineKerry Topics 1-5 Filing statusMFJ, Deceased spouse 6 DependentsQualifying child/relative, Wiki dependent calculator 7 WagesPetroleum W-2, delete other W-2s 8 Interest – taxableSeller financed mortgage, 1099-INT, OID, K-1 Interest – tax free1099-INT, OID, Broker statement 9 Dividends1099-DIV, Broker statement, K-1 10 Taxable state refundTaxable refund 11 Alimony receivedNone 12 Self-employment1099-MISC box 7, cash, expenses 13 Capital gains1099-B, Broker Statement, Capital Loss Carryover, Wash Sales, Transaction Summaries, Inheritance, K-1 (Adjust for proper content and timing) 15, 16 Retirement incomeIncorrect distr. Code, delete Rollover and OMB, Simplified Method 17 Rents, royalties1099-MISC, Schedule E 19 Unemployment compNone 20 Social SecuritySSA-1099, Reference lump sum but won't do 21 Other incomeGambling W-2G, 1099-LTC, Jury income, credit card debt cancellation 23 Educator expensesEducator expenses 25 Health Savings AcctOptional session

TAX-AIDE ACA Approach ● Handout at start of lesson  Definition of terms  Description of seven variations on taxpayer and dependent coverages ● At conclusion of one tax return, for each coverage scenario  Discuss conditions and applicable references  Clear previous scenario data from ACA Worksheet and 8962 / 8965 forms  Input new scenario data on ACA forms  Discuss effects on 1040 page 2

TAX-AIDE We also have some fun ● Trivia Contest – 15 questions mostly about taxes, with restaurant gift card to winner

TAX-AIDE Take-Aways from Training ● Learn where to find information  Procedures and policies, tax laws, TaxWise ● Help is available  Training sessions, resource materials, mentors, Local Coordinators ● Keep the goals in mind  We help many very thankful people who can’t do this on their own  We exercise all our brain cells  This really is enjoyable

TAX-AIDE Questions / Comments? District 18 Introductory Training December 15, 2014