1. Miscellaneous Topics – and Some Reminders
2016 CA-2 Instructor Workshop

2. Resident or Non-Resident Alien?
Review Pub 4012, Page L-1 – ITIN Returns
Visa status
All visa types are OOS
“Physical presence” determination
Tricky if in US less than six months
Most sites will see none of these, but…make counselors aware!
2016 CA-2 Instructor Workshop

3. W-2 Verification Code – In Full Swing!
Will be displayed on 50 million W-2’s as:
XXXX-XXXX-XXXX-XXXX
Enter on TS form W-2
Entry is optional. Failure to enter will not affect IRS return processing
2016 CA-2 Instructor Workshop

4. 2016 CA-2 Instructor Workshop
Schedule C Issues (1)
If TP paid for health insurance inform TP that ignoring that adjustment could cost them –
marginal tax rate of premium cost.
If family had Marketplace coverage, OOS in any event
Since we don’t do “Home Office” returns travel from home to work-site is always commute mileage
Standards for a Home Office are high – if TP thinks they can claim, send to paid preparer
2016 CA-2 Instructor Workshop

5. 2016 CA-2 Instructor Workshop
Schedule C Issues (2)
“de minimis” procurements are in scope because they don’t require Form 4562 (Depreciation and Amortization)
There is a “safe-harbor” threshold for items costing less than $2500, but taxpayer must file a statement with the return.
Tax-Aide policy – “better to get forgiveness than permission”
I’ll send out the instructions for this so they can be given to TP in case the IRS inquires
See: Schedule C Guidelines Summary on OneSupport for much more!
2016 CA-2 Instructor Workshop

6. 2016 CA-2 Instructor Workshop
Itemized Deductions
Medical
Medicare and MediGap premiums may be paid without appearing on any TP info forms
CSA-1099-R box 5 only shows medical premiums
Not dental, vision or long-term care premiums that may have been deducted
2016 CA-2 Instructor Workshop

7. Completing 1099-R with Nontaxable Distribution
PSO – Medical Insurance paid from pension
QCD – Qualified Charitable Distribution from IRA
HSA – HSA contribution from IRA
After entering 1099-R, preparer must visit :
Income > IRA/Pension Distributions > Nontaxable Distributions
And check the appropriate box
2016 CA-2 Instructor Workshop

8. EIC (and ACTC and AOTC) Checklist
May be referred to as:
Paid Preparer’s Due Diligence Checklist
New this year –> will also apply to other refundable credits…
Except TaxSlayer hasn’t caught on yet –
they still only address EIC
- Expect this form to change.
2016 CA-2 Instructor Workshop

9. Standard Responses and Situational Responses
Responses meet Tax-Aide Standards
Have a discussion
Ask questions
Use the Intake Sheet to make notes (or Notes in TaxSlayer)
Don't ignore information presented
2016 CA-2 Instructor Workshop

10. Documents Used to determine Residency
Earned Income Credit EIC Checklist
4/15/2018
Documents Used to determine Residency
Accept taxpayer’s word on residency unless we have reason not to, and don’t ask for any documents to support it other than the Intake Sheet
Standard answer
2016 CA-2 Instructor Workshop
NTTC - TY 2016

11. Answer based on situation
EIC Checklist – Part 1
From NTTC Training Slides
Answer based on situation
Standard answers based on normal Tax-Aide interview process
2016 CA-2 Instructor Workshop

12. EIC Checklist – Part 2 We don’t keep any records
QC responses are situational
2016 Oregon Tax-Aide IWS

13. 2016 CA-2 Instructor Workshop
EIC Checklist -- Result
If TP qualifies but it isn’t indicated, check your answers!
2016 CA-2 Instructor Workshop

14. “Miscellaneous Statement” – Huh? 2016 CA-2 Instructor Workshop
“TaxSlayer Pro Online does not submit the information you type in this section to the IRS with the electronic file. The purpose of this section is to ask the additional questions required to determine EITC eligibility.” Need to check “This is a private statement”.
Meaningless Statement – Skip right over it!
2016 CA-2 Instructor Workshop

15. 2016 CA-2 Instructor Workshop
You Have to do WHAT??
Other Checklists…
may appear after EIC
For a Business
Always check:
“Did not rely on any documents”
For a Disability
2016 CA-2 Instructor Workshop

16. Itemized Sales Tax Deduction
TaxSlayer’s calculator seems to have some inaccuracies (and erratic behavior)
Also, can’t add non-reportable income
IRS has a calculator – there is a link from TaxSlayer page
Need to know:
Approximate income
ZIP code
Household Size (number of exemptions)
2016 CA-2 Instructor Workshop

17. Jeff Bogart’s Wondrous Tools!
ACA Affordability Annuity Education Refund (Taxability of State Tax Refund)
2016 CA-2 Instructor Workshop

18. 2016 CA-2 Instructor Workshop
Amending Returns
TaxSlayer’s VITA/TCE Blog Entry on Dec. 6 has federal amending guidance
Has anyone tried it?
2016 CA-2 Instructor Workshop

19. Some forms print unnecessarily with no explanation
Form 8880 will print if taxpayer is a Student – and properly calculate zero credit, but not clear why.
A few others…I lost track
2016 CA-2 Instructor Workshop

20. ACA consideration for San Francisco and San Mateo Counties
These counties have expanded County Children’s Health Initiative Program (C-CHIP)
Children under age 20 are covered when household income is <322% of FPL
They are eligible for “Government Coverage”
They are not eligible for PTC
2016 CA-2 Instructor Workshop

21. 2016 CA-2 Instructor Workshop
Dealing with ID theft
Dependents may now have IP PIN
Enter all IP PIN’s on TaxSlayer:
Miscellaneous Forms > IRS Identification PIN
When to advise TP to file form 14039, Identity Theft Affidavit?
Check one of two boxes:
ID theft that has affected federal tax records, or
ID theft that may affect federal tax records in the future
2016 CA-2 Instructor Workshop

22. TaxSlayer “Training Issues”
TaxSlayer has characterized more than NTTC-submitted concerns as “training issues”
That means it’s up to us to train counselors how to deal with them
Many relate to challenging confirmation of data entry during QR
The NTTC is compiling these and plans to distribute detailed guidance
2016 CA-2 Instructor Workshop

23. 2016 CA-2 Instructor Workshop
Bits and Pieces
Questions…
Comments…
2016 CA-2 Instructor Workshop