EKS TrainingScenario Three

Ground Rules

oDon’t work ahead – stay on the current taskoTurn off your cell phoneoQuestion/Comments – raise your hand, stay in your

seatoNo side conversations - don’t even ask your

neighbor for helpoReturning volunteers sit next to new volunteersoBring your materials every dayoAt least try to do your homework – bring your

questions

Class Structure

4 Steps:

1. As a class, we will review Interview Notes, Intake & Interview Sheet (13614-C) & supporting documents for each scenario.

2. Instructor will teach Tax Law – referencing Publication 4012 and 13614-C

3. Instructor will show you how to enter information into TaxWise. WATCH!

4. Now DO! Students will enter information on TaxWise

Scenario #3

Scenario #3

What you will learn in this scenario:1. Filing a tax return as dependent

2. Gambling winnings income (W-2G)

3. Affordable Care Act for dependents

4. myRA contribution

What you will review in this scenario:5. Filing Status

6. Personal Exemptions

7. Income – W-2

8. Splitting refund on Form 8888

Scenario #3

Let’s review Jesse’s Information:

Interview Notes Intake & Interview sheet - 13614-CTax Documents

Interview Notes Review

What did you learn about Jesse?

Intake & Interview

Deep Dive with the 13614-C Did they bring all the required documents? Everything accurate?

What’s missing/wrong/mismatched that needs to be changed?

Compare tax documents and interview notes

Make any corrections needed on 13614-C Fill out greyed out boxes (dependency and ACA)

Publication 4012, Tabs K-3 and K-4

Who should

file?

Does this taxpayer need to file their return?

Or should they?

Publication 4012, Tab A

In Scope?

Is this client eligible for VITA services?

What certification level is needed to prepare this return?

Publication 4012, pages 8-10

Scope of Services Chart

Tax Law Topic #1

Filing a return as a dependent Review personal exemption and dependency

exemption

What is a “qualifying child” or “qualifying relative”?

Publication 4012, Tab C-3

Tax Law Topic #1

What exemptions can Jesse take?

Does Jesse qualify as “qualifying relative” or “qualifying child” of his parents?

Tax Law Topic #2

Filing Status

Publication 4012, Tab B-1

Tax Law Topic #2

Review 13614-C, Part II, numbers 1 & 2

Let’s review the Decision Tree Could Jesse qualify for more than one status?

TaxWise

You Got This!:

Enter Jesse’s: Personal information on Main Information Sheet

Select filing status Everything on page one of 13614-C goes on Main Info

Enter income documents:

W-2Publication 4012, K-6 to K-11 for Main Info and D-3 to D-9 for Income

TaxWise

Students: WATCH instructor

Ensure Jesse’s dependency is accurately reflected on the Main Information Sheet

Publication 4012, K-8

TaxWise

Students:

Ensure Jesse’s dependency is accurately reflected on the Main Information Sheet

Publication 4012, K-6 through K-8

Tax Law Topic #3

Gambling Winnings

Casinos, raffles and lotteries sometimes give a W-2G to winners

Must be reported on line 21

Publication 4012, Tab D-3, D-4 and D-5

TaxWise

Students: WATCH instructor

Enter Jesse’s W2-G on Worksheet 7, linked to 1040 line 21

Publication 4012, Tab D-4

TaxWise

Students:

Enter Jesse’s W2-G on Worksheet 7, linked to 1040 line 21

Publication 4012, Tab D-4

Tax Law Topic #4

Affordable Care Act Exemptions

Did Jesse have coverage (MEC) all year?

Interview Notes, 13614-C, and Publication 4012, Tab ACA

TaxWise

You Got This!:

Enter Jesse’s full coverage on ACA Worksheet

Publication 4012, Tab ACA

RefundDoes Jesse want to direct deposit his refund? If so, is he requesting to split his refund?Does he want to buy a savings bond?

13614-C and Interview Notes

Savings Ask Every Taxpayer (AET)!

Remind Jesse of the savings optionAnswer QuestionsBe enthusiastic and positive!

SavingsmyRA

myRA is a Roth IRA that invests in a new United States Treasury retirement savings bond, which will not lose money.

myRA was designed for people without access to employer-sponsored retirement savings plans and for people looking for a simple, safe, and affordable way to start saving for retirement.

myRA accounts cost nothing to open, have no fees, and don’t require a minimum amount of savings.

Can be opened online and account numbers will be available in minutes

https://myra.gov/

TaxWise

You Got This!:

Enter Jesse’s Form 8888: On the 8888, fill in both accounts, amounts,

choose checking/savings Best practice to check they were entered in

correctly On the 540, check the “different account”

option, will have to enter twice to verify

Interview Notes & Publication 4012, Tab K-14 to K-15

Completing the CA return

1. Get the red out! Most information will automatically populate from the federal return

2. State EITC Form – 3514*

3. 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.

4. Make sure to complete the direct deposit or balance due portion of the return

5. Complete the CA Renters Credit Worksheet when applicable.

*At the time of this ppt creation, details on how TaxWise will auto-populate the 3514 were not available

TaxWise

You Got This!:

Finish Jesse’s state return (540)

Finishing the return

THINGS YOU NEED TO KNOW ABOUT FINISHING A RETURN

1. Ask the questions in the Prep Use Fields

2. All returns must be Quality Reviewed (checklist on 13614-C) Tab, K-25

3. Run Diagnostics to check for errors

4. Print returns (Federal and State) for Taxpayer

5. Review return with taxpayer (Formula 1040 activity)

6. Have Taxpayer and Spouse sign 8879s for Federal and State and remind them they are responsible for their return and by signing, they are agreeing it is accurate: One copy for the taxpayer One copy for the VITA Site

Publication 4012, Tab K

Check our work

Do we have matching AGI, refund?Let’s review entry of:

- W-2- W-2G- Dependent filing a return- ACA – full coverage as dependent- Split refund

Look it up!

What was our first clue that Jesse is a dependent, being claimed by someone else?

13614-C, Question 10

True or False: You must claim gambling winnings on your Line 21 of your 1040.

Publication 4012, Tab D-4

True

Where is the box you check in TaxWise to ensure they know Jesse is a dependent on another return?

Main Information Sheet

What is the most important thing to remember when talking about savings with taxpayers?

Ask every taxpayer (AET)!

Be positive and enthusiastic!

Answer any questions!