1. 2016 CA-2 Instructor Workshop
… and Day Two Begins
Any New TaxSlayer Tips?
Let’s look at some CA Issues.
Questions from Day 1?
2016 CA-2 Instructor Workshop

2. Medicaid Waiver Income Not Taxable
Income subject to Medicaid Waiver shall not be taxed – not optional
Conditions:
Caregiver and taxpayer reside together
Not a “commercial” care home
Dependency not relevant
State agency doesn’t know about the circumstances
Complexities
Impacts EIC, Advanced CTC and Child/Dependent Care Credit
2016 CA-2 Instructor Workshop

3. TaxSlayer Medicaid Waiver Treatment
Still waiting for something from TaxSlayer
12/11/16 BULLETIN!!!
TaxSlayer tells me that they plan to add a check box to the W-2 form to indicate Medicaid Waiver treatment
There is a possible workaround
Will send out details if necessary
2016 CA-2 Instructor Workshop

4. Medicaid Waivers – The Future
CA Dept. of Social Services is asking workers to “self-certify”
Will take affect during 2017 at the earliest
Will likely be perpetual issue as workers don’t necessarily understand rules
…or may they choose to ignore them
2016 CA-2 Instructor Workshop

5. Quick Review of California EIC
(Almost) same rules as federal
Based only on CA W-2 income
Goal is to provide extra support for very low income tax filers
Sep 2015 Regional Meetings

6. California Earned Income Tax
2016 CA-2 Instructor Workshop

7. Fed plus CA EITC (if all income is W-2)
2016 CA-2 Instructor Workshop

8. TaxSlayer and California EIC
Virtually seamless (when it works)
… and that could be a problem
Practice Lab 15 was erratic in treatment
No way to enter address where EIC dependent lived with the TP
Defaults to mailing address, could be a PO box
May have to complete CA version of Paid Preparer’s EIC Checklist, form 3596
Stay tuned
Sep 2015 Regional Meetings

9. 2016 CA-2 Instructor Workshop
Ready to Move On???
Questions…
Comments…
2016 CA-2 Instructor Workshop