Transcript EKS Training - Earn It! Keep It! Save It!

EKS Training
Classroom ground rules
Houseke
eping
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
Intro to
EKS:
Let’s
watch
Https://www.youtube.com/watch?v=UoCP4ePRTzc
5 Step Plan:
1. As a class we will review Client Notes, and
Class
Structure
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
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 │Pub 4012 pg 18
As a VITA volunteer you will also have to complete this
training. It covers the following topics:
Intake/Intervi
ew & Quality
Review
Training
 The purpose of consistently following a consistent
Intake/Interview and Quality Review process.
 The different sections of Form 13614-C Intake/Interview and
Quality Review Sheet
 The basic steps of a complete:
 Intake Process.
 Interview Process
 Quality Review Process
Publication 5101
User Setup for tax
preparati
on &
certificati
on
Review:
 Practice Lab or TaxWise Instructions
 Link & Learn Taxes Instructions
Instructor: Have class complete Standards of
Conduct certification
Publication 4012 & Form 13614-C
Key
Reference
Material
 You will use these consistently when preparing
tax returns
 Pull out Intake & Interview sheet 13614-C
 Publication 4012 (spiral bound book)
Let’s Review Together
Scenario #1
What you will learn in this scenario:
1. Who must file
Scenario
#1
2. Filing Status
3. Exemptions: personal exemption
4. Intro into income- taxable v. nontaxable
 W2, Unemployment Income, Interest income
5. Standard deduction
6. Refundable and nonrefundable credits
 EITC
Scenario
#1
Let’s review Olivia’s Information:
 Pull out Interview Notes
 Pull out Intake & Interview sheet 13614-C
 Olivia is single
Intervie
w Notes
Review
 Olivia did not itemize her deductions last year
 Olivia had health coverage the entire year through her father’s
insurance
 If Olivia is due a refund, she wants her refund to be directly
deposited in her checking account. If she has a balance due, she
will mail her payment.
Review 13614-C to ensure responses match
Let’s review 13614-C
Intake
&
Intervie
w
 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.
Publica
tion
4012
Is client eligible for VITA services?
Refer to Publication 4012 page 8-9
Scope of Services Chart
Taxpayer Requirements
Intake &
Interview
Sheet
13614-C
1.
Verify and confirm all information on Part I & II.
2.
Ask all questions in their entirety, even if already filled out by
client and confirm accuracy
3.
Confirm taxpayer’s identity and SSN or ITIN with supporting
documents and photo ID
4.
Ensure that the documents are available for each item if
taxpayer answer “Yes” in Parts IV & V
5.
Review part VI regarding health coverage. Use flow charts in
Section ACA 1-3 in your 4012 to determine next steps
6.
Ask the client if there were any questions that they didn’t
understand
 Make sure their client has the following- Top of 13614-C:
Intake &
Interview
Sheet
13614-C
cont...…
 Photo ID for all persons on the tax return
 Original Social Security (SSN) or Individual Taxpayer Identification
Number (ITIN) documents for everyone on the tax return.
 Household income of $53,000 or less. Instruct volunteers to ask
their site coordinator about income restrictions at your site – you
may be able to help higher incomes
Now… Lets look at the Job Aid in Pub 4012, pages 15-16.
Let’s
watch!
How does this play out at most
tax sites?
 Intake and Interview Video
FILING STATUS:
Tax Law
Topic #1
Turn to Publication 4012 Tab B
1.
Filing status—is based on marital status and family situation,
and determines the rate at which income is taxed.
2.
A taxpayer may be able to claim more than one filing status.
Usually, the taxpayer will choose the filing status that results in
the lowest tax. The list below is in order from the most
beneficial to the least.
3.
There are five filing statuses
Revie
w
13614
-C
Review 13614-C, Part II,
numbers 1 &2
 Based on decision tree, what
is Olivia’s filing status?
TaxWi
se
Instructor:
Let’s start return
(main information page only)
Students: WATCH instructor
Students:
TaxWi
se
Start the return by entering Olivia’s
personal information on the
Main Information page
Do Not Enter Income
Documents
EXEMPTIONS:
Tax Law
Topic #2
1.
There are two types of exemptions: Personal and Dependency.
For this scenario, we are only addressing a personal exemption.
2.
This year’s exemption amount is $3,950. This amount is
deducted from your taxable income for every person that is
claimed on your return, thus decreases the amount of tax owed.
3.
Only one exemption can be claimed per person. An exemption
for a particular person cannot be claimed on more than one tax
return.
Let’s Open Publication 4012 Tab C
INCOME:
Tax Law
Topic #3
1.
There are two types of income: taxable and nontaxable. All
income, such as wages and tips are taxable unless the law
specifically excludes it. See a list of types on income in Pub.
4012, Tab D-1.
2.
Employers report wage, salary and tip income on Form W2,
Wage and Tax Statement. Other documents you may see are:
1099 INT/DIV, 1099-G, 1099-MISC, etc.
3.
Income is reported on lines 7-21 on the 1040
Let’s Open Publication 4012 Tab D
Tax
Law
Revie
w
1. What type of exemption does
Olivia have?
2. What is that exemption amount?
3. What types of income does Olivia
have?
TaxWi
se
Instructor:
Let’s continue return
Enter Income Documents
Students: WATCH instructor
TaxWi
se
Students:
Enter Olivia’s Income information
DEDUCTIONS
Tax Law
Topic #4
Let’s Watch a VIDEO
DEDUCTIONS
Tax Law
Topic #4
Open Publication 4012 Tab F
Let’s review information and determine what
deduction Olivia will take.
Affordable Care Act:
Tax Law
Topic #5
1.
Most people are covered by insurance through their employer,
Medi-Cal, Medicare, etc.
2.
Taxpayers who receive insurance through the marketplace may
be eligible for a refundable premium tax credit.
3.
Many low-to-moderate income taxpayers who do not have
medical coverage will be eligible for an exemption
Turn to Publication 4012, Tab ACA
(other resource: Publication 5157)
Now lets review the federal tax return so far!
Reviewin
g the
Federal
Tax
Return
You’ll notice the amount on line 66:
Earned Income Tax Credit (Pub4012, Tab I)
This credit is called the "earned income" credit
because to qualify, you must work and have
earned income and meet certain eligibility
requirements. Earned Income includes wages,
salaries, and tips that are includible in gross
income and net earnings from self-employment
earnings.
THINGS YOU NEED TO KNOW ABOUT THE CA STATE RETURN:
Completin
g the
CA 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.
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
REFUNDS
Refunds
&
Balance
Due
1.
2.
Using the filers bank account and routing number, enter it into TW
on Main Info Sheet and Page 2 of the 1040.
Always double check account numbers!
BALANCE DUE
1.
2.
3.
Balances must be paid by the filing deadline (April 15th) to avoid
penalties and interest charges. There are separate penalties to
paying and filing late. Pay as much as you can before the deadline!
Filers will send in their own payments or have it directly debited
from their bank account. See Publication 4012, K-3 for instructions
If the filer chooses to send their payment via mail, show them the
1040V Payment Voucher and instruct them to send it with their
payment
Instructor:
TaxWi
se
Enter Olivia’s bank information for
direct deposit
Reference:
 Main Information sheet
 1040 Pg.2.
 Pub. 4012, Tab C-13
Students:
TaxWi
se
Enter Olivia’s bank information
Reference:
 Main Information sheet
 1040 Pg.2.
 Pub. 4012, Tab C-13
Qualit
y
Revie
w
Let’s check our work!
 Do we have matching AGI?
 Let’s review W2 entry
 Let’s review 1099-INT entry
 Let’s review 1099-G entry
What is something you always ask for during the intake and
interview process?
Identification
Knowled
ge
Check!
Where in our resource material can you find information on the
intake and interview process?
Publication 4012, Page 15
How many 5 filing statuses are there? Can you name them?
5: Single, Married Jointly, Married Separately, Qualified Widower
with Dependent Child, and Head of Household
Where can I find this info in our resource material?
Pub 4012, Tab B-1
Name the two types of exemptions and identify which one Olivia is
getting.
Personal and dependency; Personal
Knowled
ge Check
cont...
Where in our resource material can you find information on
exemptions?
Amounts are in Pub 4012, Tab C-1
Where can I find info on a filers exemptions in Taxwise?
Main Info, number 6 and line 42 on the 1040
What types of taxable income does Olivia have?
Wages/W2, Interest income/1099-INT, and Unemployment
Compensation/1099-G
Where in our resource material can you find information on income?
Publication 4012, Tab D
What tab in the 4012 specifies the line number for most income
documents?
Knowledge
Check
cont...
Pub 4012, Tab D-3
Where in our resource material can I find information on how to finish a
return?
Pub 4012, Tab K
What form do you use for splitting a refund?
8888
What form does the taxpayer send in with their balance due?
1040V Payment Voucher