Scenario #3 PPT - Earn It! Keep It! Save It!

Report
EKS Training
November 22, December 6 and 13th
Tax Law Review
 Filing Status
Review
Day #1
 Exemptions
 Income: Taxable vs Nontaxable
 Standard Deduction
 Refundable Vs Nonrefundable Credits
Components of the 1040
Review
Day #1
 Income – adjustments = AGI
 AGI – deductions and exemptions = taxable income
 Taxable income X your tax rate = tax
 Tax – nonrefundable tax credits = tax (down to
zero)
 Tax + your payments (withholding, refundable
credits, etc.) = your refund or balance due
Review
Day #1
13614-C & 1040
 Review each section on the Intake & Interview
Form and how it translates to the 1040
Standa
rds of
Condu
ct
Trainin
g
As a volunteer in the VITA/TCE Programs, you must:
1. Follow the Quality Site Requirements (QSR).
2. Not accept payment or solicit donations for federal
return preparation.
or state tax
3. Not solicit business from taxpayers you assist or use the
knowledge you gained (their information) about them for any direct
or indirect personal benefit for you or any other specific individual.
4. Not knowingly prepare false returns.
5. Not engage in criminal, infamous, dishonest, notoriously
disgraceful conduct, or any other conduct deemed to have a
negative effect on the VITA/TCE Programs.
6. Treat all taxpayers in a professional, courteous, and respectful
manner.
4961 │ VSOC Quiz │ Volunteer Agreement
Scenario #3
5 Step Plan:
1. As a class we will review Client Notes, and
Scenario
#3
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
Scenario
#3
Let’s review Olivia & Brandon’s
Information:
 Pull out Interview Notes
 Pull out Intake & Interview sheet 13614-C
 Brandon & Olivia are married & will file a joint return
 They have two children who lived with them all year
Intervie
w Notes
Review
 Cash donation was made
 They had unreimbursed medical expenses
 Olivia & kids had health insurance
 They paid property taxes
 They did not itemize last year
 They want to split their refund between checking & savings
Review 13614-C to ensure responses match
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
Publica
tion
4012
Is client eligible for VITA services?
Refer to Publication 4012 page 8-9
Scope of Services Chart
TaxWi
se
Instructor:
Start the return on Main
Information
Students: WATCH instructor
TaxWi
se
Students:
Start the return on Main
Information
Tax Law
Topic
#1
Individual Taxpayer
Identification Number (ITIN)
Open: Publication 4012, Tab L
TaxWi
se:
Start
Return
Enter ITIN Number on Main
Info page
Students watch instructor
TaxWi
se
Students:
1. Enter ITIN for Brandon and
2. Input income documents
for Brandon & Olivia
Tax
Law
Topic
#2
Deductions:
Itemized Vs Standard
http://youtu.be/FbMyVscbbko
Tax
Law
Topic
#2
Itemized Deductions
1. Determine if Gonzaga’s should Itemize or
take the Standard Deduction?
Open: Publication 4012, Tab F
TaxWi
se
Instructor:
Schedule A
Students: WATCH
TaxWi
se
Students:
Start a Schedule A
 Mortgage interest
 Insurance premiums
 Property taxes
 Charitable donations
Tax
Law
Topic
#3
Affordable Care Act
1. Discuss coverage for Brandon, Olivia &
Children
2. Determine if Brandon qualifies for an
exemption
Open: Publication 4012, Tab ACA
Publicatio
n 4012:
Affordable
Care Act
ACA Decision Trees
Olivia & Children: Refer to Pub 4012, ACA-1
Brandon: Refer to Pub 4012, ACA-2 & Health
Care Exemption ACA-5
Afforda
ble Care
Act
Pub
4012,
Tab ACA
Brandon is not eligible for coverage because he
is undocumented. He qualifies for a healthcare
coverage exemption that will be claimed on
Form 8965. See Pub 4012, ACA Tab 2
TaxWi
se
Instructor:
Enter Information for ACA,
Form 8965
Students: WATCH
TaxWi
se
Students:
Complete Form 8965
CA
State
Return
Completing CA portion of
return
1. Follow instructor to learn how to complete
this section
Reviewin
g and
completi
ng the
return
1. Splitting the Refund
Pub 4012 Tab K-1 & K-2
2. Review the federal return
Peer-Return Review
3. Finish the return
If your client is itemizing their deductions, which Schedule do you
complete in TaxWise?
Knowle
dge
Check!
 Schedule A
What are two items does a client usually have to indicate that they
may itemize?
 Mortgage interest from owning a home and really high
unreimbursed medical bills
True or False: Filers with an ITIN are eligible to receive the Earned
Income Tax Credit?
 False
Now
Let’s
Practice
Pull Out your 6744

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