1. ACA Responsibility Triggers
If anyone in the household does not have MEC, then first check for all other exemptions.
1. marketplace exemption,
2. exemption for short gap, incarceration etc.,
3. below filing threshold,
4. less than 138 of FPL.
If no other exemption is found, THEN MUST CHECK FOR AFFORDABILITY IF
1. %FPL is over 400% or
2. an employer offer (individual or family coverage) was made that would have covered the one without MEC or
3. two or more members of the household had individual offers of insurance coverage or
4. anyone in the household had or was eligible for Government Insurance.

2. WHEN TO CHECK ACA AFFORDABILITY
(Household Income vs Federal Poverty Lines)
If No MEC and no Other Exemptions:
Check Affordability
No PTC
47,080
63,720
80,360
97,000
113,640
400% FPL
Check Affordability if:
- Family member on govt
insurance
- Employer insurance avail
PTC is available to make insurance coverage affordable
Affordable, must pay SRP if: No govt insurance and no employer insurance offer
16,243
21,983
27,724
33,465
39,206
138% FPL
Exemption Code G:
Resident of state not expanding Medicaid
Not required to have MEC. May have MEC if over 100% FPL, so can have PTC
Coverage not required
11,770
15,930
20,090
24,250
28,410
100% FPL 1 2 3 4
5 → Over 5 see Pub 4012 pg. ACA-12
# Persons in Household
FPL – Federal Poverty Lines

3. Pell Grants & Scholarship as Income
It may be possible to increase the American Opportunity Credit when the student includes certain scholarships or fellowship grants in the student's gross income.
The credit may increase only if the amount of the student's qualified education expenses minus the total amount of scholarships and fellowship grants is less than $4,000.
If this situation applies, consider including some or all of the scholarship or fellowship grant in the student's income in order to treat the included amount as paying nonqualified expenses instead of qualified education expenses.

4. Public Safety Officer Early Distribution Exception

5. Public Safety Officer
Effective for distributions after December 31, 2015, the exception for pubic safety employees who are age 50 or over is expanded to include specified federal law enforcement officers, customs and border protection officers, federal firefighters and air traffic controllers.
Also, the restriction that only defined benefit plans qualify for the exemption is eliminated. Thus, an exemption is allowed for distributions from defined contribution plans or other types of governmental plans, such as the TSP.

6. WHAT’S NEW
Form 1098T requirement. For tax years beginning after June 29, 2015, generally tax year 2016 returns for most taxpayers, the law requires a taxpayer (or a dependent) to have received a Form 1098-T from an eligible educational institution in order to claim the tuition and fees deduction, American opportunity credit, or the lifetime learning credit.
However, for tax year 2016, a taxpayer may claim one of these education benefits if the student does not receive a Form 1098-T because the student’s educational institution is not required to send a Form 1098-T to the student under existing rules.
If a student’s educational institution is not required to provide a Form 1098-T to the student, a taxpayer may claim one of these education benefits without a Form 1098-T if the taxpayer otherwise qualifies, can demonstrate that the taxpayer (or a dependent) was enrolled at an eligible educational institution, and can substantiate the payment of qualified tuition and related expenses.

7. Educational Institution does not have to file Form 1098-T or furnish a statement if
Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program;
Nonresident alien students, unless requested by the student; Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships; and
Students for whom the institution does not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement between an institution and the student's employer or a governmental entity, such as the Department of Defense.

8. New Provisions – Scope 1099-R with Box 7, Code U
ESOP (employee stock option plan) dividend distribution
Handled exactly like a 1099-R Box 7, Code 7
No additional training required at federal level

9. New Provisions – Scope
Interest included in debt discharged on Non-business Credit Card Debt
Because only non-business credit card debt forgiveness is in scope, any interest (box 3) would also be non-business therefore 100% of debt forgiven is taxable

10. New Provisions – IRA
Additional waiver reasons if recipient of retirement plan distribution inadvertently misses 60-day time limit for rolling distribution into another retirement plan or IRA

11. New Provisions – EIC
Taxpayers must have valid SSN by due date of return (including extension) to claim EIC
Taxpayers can’t file amended returns to claim credit for a year that taxpayer didn’t originally have a valid social security number

12. New Provision - American Opportunity Credit & Child Tax Credit
Taxpayers must have valid SSN or ITIN and student/child must have valid SSN, ITIN or ATIN (Adoption TIN) by due date of return (including extension) to claim American Opportunity Credit/Child Tax Credit, respectively
Taxpayers can’t make retroactive claims for the credit for a period that the taxpayer and student didn’t have a required identification number

13. New Provisions – Other
Refundable Credits Refund date – refund on hold until February 15 if taxpayer claimed EITC or additional child tax credit (ACTC)
Qualified higher education expenses for 529 plans expanded to include computer equipment and technology (1099-Q)

14. New Provisions – Other
Adjustment for educator classroom expenses up to $250
Now includes professional development courses
Indexed starting in 2016

15. Individual Taxpayer Identification Number
ITIN’s with middle digits 78 or 79 expired 12/31/2016
Affects .2% of ITINs issued, so limited impact on us
Guidance pending on how we handle these returns just in case

16. Federal Return Types for Returns with a Refund
Electronic Mailed: The return will be electronically filed and the taxpayer will receive their refund via check
Direct Deposit:  The return will be electronically filed and the taxpayer will receive their refund via the bank account information entered.
Paper Return with Direct Deposit:  The return will NOT be electronically filed.  The preparer will be prompted to enter the bank information where the refund will be deposited.
Paper Return:  The return will NOT be electronically filed and the taxpayer will receive their refund via check.

17. Federal Return Types for Returns with a Balance Due
Mail Payment:  The return will be electronically filed and the taxpayer will mail payment
Direct Debit:  The return will be electronically filed and the taxpayer will have the balance due withdrawn from a checking/savings account.
Paper Return with Direct Deposit:  The return will NOT be electronically filed.  (this type will be removed)
Paper Return:  The return will NOT be electronically filed.  The taxpayer will file their return via paper.

18. Answering the Due Diligence Questions for Earned Income Tax Credit, Child Tax Credit and American Opportunity Tax Credit
• Volunteers are not paid preparers and are not required to complete Form 8867 • TaxSlayer requires answers to due diligence questions to process the return • Although volunteers solicit information as part of the normal Intake and Interview process, such questions are not intended to meet a paid preparer’s due diligence standards. • The required way of answering the TaxSlayer questions is shown in Tab I, Pub 4012.

19. NOTES
Within a return, TaxSlayer has one place to record free-form information: notes.
After the Basic Information section of a return is completed, the name of the taxpayer will appear at the upper left of the screen.
Clicking on the taxpayer name, or the downward-pointing symbol to its right, displays the Tools dropdown list, which includes “Notes”.
Clicking on “Notes” opens a pop-up where notes can be added, and existing notes can be seen.
Notes will carry forward to the next year’s return.

20. NOTES CONTINUED
Notes don’t automatically identify the author, or include a date stamp. Preparers and Quality Reviewers must include this information, as, for example, “EF: 2/15/2017”
If you want to look at existing notes when within a return, follow the same process for creating a note; you’ll then see a pop-up window, “Found notes”, which will list the title of each existing note.
To view the content of a note, double-click on the title of that note.
On the Office Client List page, tax returns which have notes will have a blue flag, rather than a grayed-out flag, in the column to the right of the STATUS column. Notes can also be added when at this page.

21. NOTES CONTINUED – PRINTING NOTES
If notes exist for a return, the notes can be printed from the Office Client List page: once notes are opened, click on the “Print PDF” button to create a PDF for all notes.
In general, do not delete a note that reminds the preparer of something that needs to be done. Instead, the note should be changed to indicate something was DONE.
Retaining notes can be very helpful to the person doing the quality review.

22. Tax Counselor Role
Interview taxpayer to determine that all income, deductions and allowable credits are reviewed
Use Form C, Intake/Interview & Quality Review Sheet
Refer customers with out of scope returns to a paid preparer or firm 
Prepare only those tax returns for your certification AND comfort level 
 Before asking the taxpayer to sign the return:
Advise the taxpayer that he/she is ultimately responsible for the information on the return
Notify the taxpayer that by signing the return, he/she gives us permission to e-file the return on his/her behalf
If the return has tax owed, advise the taxpayer on payment options available (see publication 4012 – No Split Payment Option at NPL)

23. Administrative Information
Telephone
Emergency Exits
Covered Beverage Only
Parking Pass
Log Sheet
Bank Info – Notes
Absent Spouse
Sign in Sheet (w/CF)
NH Real Estate Rebate
Labels & Envelopes
Arrive 15 minutes early
Angry Taxpayer
Picture ID (TP & Spouse)
SS Card/Doc for all on return
Schedule C <$50K inc; <$25K exp
Students self file questions
Return Tags – use them
Penalties - OOS

24. References Pub 4012 – 5 Final Version Copies at site
Pub 17 – bring your copy
Site Reference – 5 Final Version Copies at site
– local site for NPL
Quickfinder – Site Resource Located In Cabinet
Quality Reviewer/Shift Coordinator

25. TaxSlayer Log On XX2602NPL (XX = 1st Letter of First and Last Name)
*NPL2602npl (Initial password)(No resets – you must change your own password)
The word ‘apple’ is always the security code for login)
During your password reset process, the Security Question Response is ‘Nashua’

26. Multi-Factor Authentication (MFA) for TSO
MFA challenges will be presented to a TSO user the first time that user logs onto the system using a new computer and PERIODICALLY thereafter as set by the Site Coordinator (7 to 90 days)
MFA Challenge
Screen

27. Multi-Factor Authentication (MFA) for TSO
Use the following steps:
1. Select the delivery option for the security code – either the or cell phone number entered in TSO.
2. Click Send Code.
3. Check your or text messages to find the code.
4. Type the code in the Enter Your Security Code box.
5. Click Submit.