1. EKS 2 SCENARIO-BASED TRAINING

2. IN THIS SCENARIO YOU WILL REVIEW
Who must file
Filing Status
Exemptions: personal exemption
Income- taxable v. nontaxable
W-2 income
Standard deduction
ACA- full year coverage

3. IN THIS SCENARIO YOU WILL LEARN
Filing a return as a dependent
Exemptions: Dependency exemption
Gambling income
ACA- full year coverage through parents

4. LET’S GET STARTED
This will be you!

5. Let’s meet the taxpayer1.
SCENARIO
JESSE CASH
Let’s meet the taxpayer

6. Hello!
I AM JESSE CASH
My parents still take care of me. They pay for my school, and I was home with my them for the summer.

7. A LITTLE ABOUT ME
I work at a bagel shop. I eat bagels for almost every meal.
I’m in college.
Sic ‘em Bears!

8. INTERVIEW NOTES Jesse wants to have his refund by check
Jesse did not itemize his deductions
Jesse loves to play the lottery and had some winnings last year
Jesse is on his parent’s health plan
Jesse is single

9. Let’s look at the Intake/Interview Sheet2.
SCENARIO 2
JESSE CASH
Let’s look at the Intake/Interview Sheet

10. What questions should we ask Jesse?

11. What forms should we look for?

12. What do we do with grey box?

13. BEFORE DIVING IN... Does Jesse need to file? Is the return in scope?

14. Does Jesse need to file? A1

15. Is Jesse’s return in scope?
9-11

16. 3.
SCENARIO 2
JESSE CASH
1040 Step by Step

17. FILING STATUS
Filing status is based on marital status and family situation and determines the rate at which income is taxed.
A taxpayer may be eligible for more than one filing status. The taxpayer should choose the filing status that results in the lowest tax. B1

18. 5 FILING STATUSES Married Filing Jointly Married Filing Separately
Legally married people file together
Married Filing Separately
Legally married people file separately
Single
Not married, never been married, legally divorced
Head of Household
An unmarried or considered unmarried person with a qualifying dependent
Qualifying Widow/Widower
A taxpayer whose spouse has died in the prior two tax years AND they have a qualifying dependent.

19. What is Jesse’s filing status?B1

20. Exemptions reduce the taxpayer’s taxable income
DEPENDENCY EXEMPTION
Exemptions reduce the taxpayer’s taxable income

21. CLAIMING A DEPENDENT
You can’t claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer.
You can’t claim a married person who files a joint return as a dependent unless that joint return is only to claim a refund of income tax withheld or estimated tax paid.
You can’t claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.
You can’t claim a person as a dependent unless that person is your qualifying child or qualifying relative C3

22. QUALIFYING CHILD TESTS
Under age 19 or under age 24 and a full time student AGE
Not filing a joint return unless it is to claim a refund of tax witheld
JOINT RETURN
Must be son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. RELATIONSHIP
Not provided more than half of his her own support during the year
SUPPORT
Lived with you more than half the year RESIDENCY C3

23. QUALIFYING RELATIVE TESTS
Must be related to you OR live with you all year
Can’t be your qualifying child or the qualifying child of anyone else
Cannot have more than $4,050 in income
More than half of the support of this person must be provided by the taxpayer C3

24. Can Jesse be claimed as a dependent?

25. Exemptions reduce the taxpayer’s taxable income
PERSONAL EXEMPTION
Exemptions reduce the taxpayer’s taxable income

26. Can Jesse claim a personal exemption?

27. WATCH instructor
Enter Jesse’s Personal Information, Filing Status and Personal Exemption K8

28. Now you try
Enter Jesse’s Personal Information, Filing Status and Personal Exemption K8

29. INCOME Taxable Wages* Cash Income Lottery winnings* Jury Duty Payments
Interest & Dividents D1

30. Scenario 2 Wages

31. Scenario 2 Lottery Winnings

32. Enter Jesse’s W-2 and W2-G
WATCH instructor
Enter Jesse’s W-2 and W2-G
D3&44

33. Now you try
Enter Jesse’s W-2 & W2-G
D3&44

34. DEDUCTIONS Deductions reduce your taxable income.
TaxSlayer calculates the Standard Deduction for you.

35. What is Jesse’s Standard deduction?
F1-2

36. Let’s look at Jesse’s
Standard Deduction

37. AFFORDABLE CARE ACT
Every taxpayer is required to have health coverage and report that coverage on their tax return

38. THREE OPTIONS MEC Exemptions SRP Minimum Essential Coverage
Taxpayers will receive 1095-A, 1095-B or 1095-C as proof of coverage. Only A is required if covered through the marketplace.
Exemptions
Some taxpayers are exempt from having coverage
SRP
Shared Responsibility Payment
ACA

39. Which one applies to Jesse?
ACA4

40. Enter Jesse’s ACA information
WATCH instructor
Enter Jesse’s ACA information
ACA 1-3

41. Enter Jesse’s ACA Information
Now you try
Enter Jesse’s ACA Information
ACA 1-3

42. SAVINGS IS A BIG PART OF TAX TIME
Ask every taxpayer if they want to save part of their refund.

43. Would you like to save part of your refund today?
Tax time is the perfect time to save for an emergency, a college savings account or another life dream you have.

44. SAVE SOME. SPEND SOME.
Use Form 8888.

45. WITH FORM 8888 THERE ARE OPTIONS
Checking Account
Savings
Account
Savings
Bond

46. WHAT DOES JESSE WANT TO DO WITH HIS REFUND
CHECK
Mailed check can take several weeks.
DIRECT DEPOSIT
Usually deposited in 7-10 days. You need the bank account and routing numbers. .
K14-15

47. Enter Jesse’s check preference in the return
WATCH instructor
Enter Jesse’s check preference in the return

48. Enter Jesse’s check preference in the return
Now you try
Enter Jesse’s check preference in the return

49. 4.
SCENARIO 2
JESSE CASH
Finishing the return

50. CHECK YOUR WORK QUALITY REVIEW
Review entries:
Basic Information - filing status & exemptions
Income: W-2
Credits: EIC
ACA: MEC
Do we have matching AGI & refund?

51. AGI (2015 calculations) Federal Refund (2015 calculations)
$2,023
AGI (2015 calculations)
$130
Federal Refund (2015 calculations)

52. FINISHING THE RETURN Ask the custom questions
All returns must be Quality Reviewed
Print returns (Federal and State) for Taxpayer
Review return with taxpayer
Have Taxpayer and Spouse sign 8879s for Federal and State
Remind them they are responsible for their return and by signing, they are agreeing it is accurate – 1 for the taxpayer, 1 for the VITA site
Not sure if this is really true in taxslayer

53. YOU DID IT!
Any questions?

54. WORKOUT
Dependency Exemptions

55. CREDITS
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