1. EKS Training

2. Houseke eping Classroom ground rules o Ask when unsure o Do not be disruptive when instructor is teaching o No side conversations: if you have a question ASK o Be respectful to your peers o Turn Cell Phones to silent o Wait for instructor prompt to begin computer work

3. Class Structure 5 Step Plan: 1.As a class we will review Client Notes, and 2.Intake & Interview Sheet & supporting documents. 3.Instructor will teach Tax Law – referencing Pub 4012 and 13614-C 4.Instructor will show you how to enter information into TaxWise. WATCH! 5.Now Do! Students will enter information on TaxWise

4. Scenario #2

5. What you will learn in this scenario: 1.Determining Filing Status 2.Exemptions: Dependency 3.Credits- Refundable vs Nonrefundable EITC – CTC – Advanced CTC- Dependent Care 1.Determining Itemization

6. Scenario #2 Let’s review Olivia’s Information:  Pull out Interview Notes  Pull out Intake & Interview sheet 13614-C

7. Intervie w Notes Review  What’s different in this scenario?  Any questions you have when reviewing the notes? Review 13614-C to ensure responses match

8. Intake & Intervie w Let’s review 13614-C  Everything accurate? If not, what’s missing/wrong/needs to be changed?  Notice anything different?  Did they have all the required documents?  Make any corrections needed on 13614-C Lets look at the Job Aid in Pub 4012, pages 15-16.

9. Publica tion 4012 Is client eligible for VITA services? Refer to Publication 4012 page 8-9 Scope of Services Chart

10. Tax Law Topic #1 Dependency Exemption:  Review personal exemption and dependency exemption  What is a “qualifying child” or “qualifying relative”? Open: Publication 4012 Tab C

11. Tax Law Topic #1 What exemptions will Olivia take? Does Nicholas qualify as a “qualifying relative”?

12. Revie w 13614 -C  Review 13614-C, Part II, numbers 1 &2  Based on decision tree, what is Olivia’s filing status?

13. Tax Law Topic #2 Filing Status:  What is Olivia’s filing status? Open: Publication 4012, Tab B

14. TaxWi se Let’s start: Enter Olivia’s:  Personal information on Main Information page  Income documents: W2 & 1099- INT Refer to Publication 4012, Tab D

15. Tax Law Topic #2 Adjustments to income:  What are adjustments to income?  Does Olivia have an “adjustment to income”? Let’s Open Publication 4012 Tab E-5 & Olivia’s 13614-C

16. TaxWi se Instructor: Enter Olivia’s:  1098 E Refer to Publication 4012, Tab E-5 Students: WATCH instructor

17. TaxWi se Students: Enter Olivia’s 1098 E Refer to Publication 4012, Tab E-5

18. Tax Law Topic #3 Deductions: Common deductible expenses:  Unreimbursed Medical Expenses  Charitable Contributions Let’s Open Publication 4012 Tab F & Schedule A

19. TaxWi se Instructor: Let’s enter Olivia’s deductions. Refer to Interview notes & Publication 4012, Tab F-3 Students: WATCH instructor

20. TaxWi se Students: Enter Olivia’s deductions Refer to Publication 4012, Tab F-3

21. TaxWi se Should Olivia itemize her deductions? Refer to Publication 4012, Tab F

22. Tax Law Topic #4 Tax Credits:  Two Types: Refundable & Nonrefundable  Refundable Credits allows taxpayers to lower their tax liability to zero and everything over zero they get as credit/payment.  Nonrefundable Credits allow taxpayers to lower their liability to zero.

23. Tax Law Topic #4 Nonrefundable Credits:  Child & Dependent Care Expenses (pub 4012, Tab G-3-5)  Education Credit (pub 4012, Tab J-4)  Child Tax Credit (pub 4012, G-8-9) Refer to Publication 4012, Tab G 1040, Tax & Credits, Lines 48-54

24. Tax Law Topic #4 Refundable Credits:  Advanced Child Tax Credit (pub 4012, Tab G-8)  Earned Income Tax Credit (pub 4012, Tab I) Refer to Publication 4012, Tab G & I 1040, Payments, Lines 66-72

25. Tax Law Topic #4 What credits can Olivia possibly qualify for?

26. TaxWi se Child & Dependent Care Credit Instructor: Enter Olivia’s childcare expenses Refer to client documents & Publication 4012, Tab G-3 Students: WATCH instructor

27. TaxWi se Students: Enter Olivia’s childcare expenses Refer to Publication 4012, Tab G-5

28. TaxWi se Education Credit Instructor: Enter Olivia’s education expenses Refer to client documents & Publication 4012, Tab J Students: WATCH instructor

29. TaxWi se Students: Enter Olivia’s education expenses Refer to Publication 4012, Tab J

30. TaxWi se Let’s Review Auto-populated credits on TaxWise: Did Olivia qualify for these credits?  Child Tax Credit  Advanced Child Tax Credit  Earned Income Tax Credit Let’s review 1040 to see!

31. Completin g the CA return THINGS YOU NEED TO KNOW ABOUT THE CA STATE RETURN: 1.Get the red out! Most information will automatically populate from the federal return 2.If you have entered more than one W-2 on the 1040, you will have to manually add the additional W-2’s. The first W-2 will carry over, but the rest won’t. 3.Make sure to complete the direct deposit or balance due portion of the return 4.Complete the CA Renters Credit Wkt when applicable.

32. Savings Initiative Let’s Watch! WHY

33. Wrapp ing up Return Let’s Review Olivia’s return  Does Olivia want to direct deposit her refund?  If so, is she requesting to split her refund? Pull out 13614-C, Part VII HOW

34. Splitting the Refund Instructor: Enter Olivia’s bank information on Form 888  Open Publication 4012, Tab K-2

35. TaxWi se Students: Fill Out Form 8888

36. Finishing the return Pub 4012, Tab K THINGS YOU NEED TO KNOW ABOUT FINISHING A RETURN 1.All returns will be e-filed (unless otherwise specified) 2.Bank account information needed for direct deposit- refer to Part VII of the Intake Sheet 3.Identity Protection PIN- if client checked the “yes” in box 12 of the Intake Sheet, refer to Pub. 4012, Tab P-1

37. Qualit y Revie w Let’s check our work!  Do we have matching AGI?  Let’s review entry of: -W2 -1099-INT -1099-E -1098-T

38. Knowled ge Check! Can an unmarried person claim “head of household” status? Yes, if they provide more than half of the cost of keeping their home and a “qualified person” lived with them for ½ the year. True or False: The term “dependent” means a “qualifying child” or “qualifying relative”? True A taxpayer must have this to qualify for EITC? Earned Income Where in the 4012 can you find examples of earned income? Pub 4012, Tab I-1

39. Knowled ge Check cont... True or False: Laura’s foster son Jack is 12. He is a US citizen, he lives with Laura and she provides his full financial support. Is Jack a qualifying child for the child tax credit? True The tax credit for child and dependent care expenses allows taxpayers to claim a credit for expenses paid for the care of children under what age? 13 True or False: The qualifying person must live with the taxpayer for the entire year? False, the qualifying person must live with them for more than ½ the year. Where can you find information in the 4012 about Deductions? What tab does it tell you the standard deductions amount. Tab F

40. Knowledge Check cont... What is the most common big ticket item in which the taxpayer may benefit most from itemizing? Mortgage Interest Where can you find the requirements to qualify for the Child Tax Credit in the 4012? Tab G-8 & 9 Is the Child Tax Credit a refundable or nonrefundable credit? Nonrefundable, but the client may be eligible for the Additional Child Tax Credit with is refundable. What should you do for every tax return to ensure the taxpayer receives EITC? Always check the EIC box on the Main Information sheet when inputting dependent information.