Transcript Revenue PowerPoint template 1 - AARP TaxAide MN-1
MN-1 District Coordinator Meeting
September 26, 2014
Volunteer Coordinator
Kerrin Lee
651-556-3052 or 1-800-818-6871 [email protected]
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Department Updates
• Direct Deposit Promotion • Governor Dayton’s “Unsession” • What have we been doing? • Power of Attorney • Payment Voucher Project • What laws were eliminated?
3 “Opportunities to give us feedback”
Department Updates
• Federal Conformity (1st Tax Bill) • March 21, 2014 tax bill • Aligns Minnesota’s tax code more closely to federal code • 1.1 million returns filed with the new law changes • Reviewed 280,000 returns that were already filed • Letters to Homeowners • Potential eligibility for Homestead Credit Refund • All letters were mailed by August 22, 2014 4
Tax Law Updates
• Omnibus (2nd) Tax Bill • Signed May 20, 2014 • Retroactive Changes for 2013 • Property Tax Refunds • Changes for 2014 and forward 5
Tax Law Updates
Temporary Reading Credit The Basics • Tax year 2014 only • 75% of qualifying expenses • Maximum credit of $2,000 • Credit calculated on Schedule M1READ • • Fact sheet will be released soon Visit our website and search Reading Credit 6
Tax Law Updates
Temporary Reading Credit • Qualifying Child A child who: • • • meets the definition of a qualifying child for K-12 Education Credit, has been evaluated by a school district for a specific learning disability, was found, through the evaluation, to have a deficiency in reading skills, reading fluency or reading comprehension that impairs his or her ability to meet expected age or grade-level standards, and • does NOT qualify for an Individualized Education Program (IEP) 7
Tax Law Updates
Temporary Reading Credit Qualifying Expenses • Tutoring, instruction, or treatment • Not compensated by insurance, or pre-tax accounts • Actual expenses that can be documented • Not used to claim the K-12 Credit or Subtraction 8
Tax Law Updates
Temporary Reading Credit •
Qualifying Tutoring and Instruction Expenses
Instruction by a qualified instructor that helps the child meet state academic standards in various subjects • •
Qualifying Instructor
Cannot be a lineal ancestor or sibling of the child Must meet one of the following tests: • Have a valid teaching license for the grade level and subject taught (or is supervised by someone who is) • Have successfully completed a teacher competency evaluation, • Provide instruction at an accredited school, or • Have a bachelor’s degree 9
Tax Law Updates
Temporary Reading Credit
Qualifying Treatment
• • • To qualify for the credit, the treatment must: be intended to improve the child’s basic reading skills, reading comprehension and reading fluency, use recognized diagnostic assessments to determine what intervention would be most appropriate for the child, and use a research based method to teach language decoding skills in a systematic manner.
If you are unsure whether or not a child’s treatment qualifies, contact the treatment provider.
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Tax Law Updates
Child and Dependent Care Credit • • • Minnesota Child and Dependent Care Credit aligns more closely to the federal credit Maximum qualifying expenses increased: • 1 Qualifying Child - $3,000 maximum • 2 or more Qualifying Children - $6,000 maximum Percent of qualifying expenses allowed in calculating the credit increased 11
Tax Law Updates
Additions and Subtractions • Minnesota Income Tax Additions Married couples claiming the standard deduction are no longer required to add back a portion of their deduction • • Minnesota Income Tax Subtractions Employer-provided mass transit benefits that are included in federal taxable income can be subtracted. The per month subtraction amount is limited to the lessor of: • $120, or • the benefits received in excess of $130 Military pay earned under Title 32 AGR Status in the Minnesota National Guard or Reserves can now be subtracted 12
Tax Law Updates
2013 Property Tax Refund • • What changed?
Renter’s Property Tax Refunds increased by 6% Homestead Credit Refunds increased by 3% • What if my clients already filed?
We will make changes to returns filed before 6/4/2014 and those that used outdated refund tables • • What if my clients haven’t filed yet?
Use our updated refund tables on our website if filing by paper Ensure that you have the most up-to-date version of TaxWise installed if filing electronically 13
Tax Law Updates
Supplemental Agricultural Credit • • • What is it?
Agricultural homesteaded properties Property taxes payable 2014 Lesser of $205, or net taxes excluding house, garage, and surrounding acre • • • Additional Information Credit will be administered by counties as a reduction in property taxes payable going forward Relative Agricultural Homestead classification qualifies Must not owe delinquent property taxes • • What do you need to do?
Nothing- we will mail checks by 10/15/14 If you have questions, review our website or contact the county auditor 14
Tax Law Updates
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Tax Professional Enforcement
• What is it?
• Tax professionals must follow standards of ethics and conduct • If you don’t, you may be subject to penalties, criminal prosecution, or suspension from representation • Who may this affect?
• Attorneys, accountants, enrolled agents, and any person preparing returns for compensation • Anyone who represents taxpayers in dealings with us • Why are we sharing this with you?
• We want you to be informed and share this information 16
Tax Professional Enforcement
What can we do?
• • • • • • •
If a tax professional
Knowingly files false or fraudulent tax returns Advises a taxpayer to evade taxes Does not file a required tax return Attempts to threaten or bribe a department employee Does not demonstrate adequate familiarity with state tax laws and rules Is convicted of a crime related to tax return preparation Is assessed a civil penalty of more than $1,000 for certain actions related to tax return preparation 17 • • •
Then we can
Suspend them from “representing” taxpayers before the Department for up to 5 years or bar them indefinitely Place their name on our Tax Professionals Sanction List Place their name on our Tax Professionals Sanction List
Administrative Updates
• • • • DOR Letter Procedures Quality Review of M1 and M1PR • Point of emphasis Modernized e-file • Unlinking to send M1PR only • Do not e-file federal returns with $1 of interest or income Site Visits • See how the site operates • Looking for best practices • Available for questions or concerns 18
State Training
• • • January Training Sessions • Contact Kerrin to set up a date and to discuss material you wish to be covered MN Review Questions • Incorporate into your state training • Volunteers will need to answer the questions MN Intake Sheet • Questions on the sheet should flag potential issues • Feel free to make copies and distribute as needed 19
Volunteer Training Packets
• Packets will be mailed to volunteers using the volunteer addresses provided by the IRS • After mid-November, send any new volunteer names and addresses directly to Kerrin to get MN training materials • MN training materials will be mailed mid-December to all volunteers • Extra copies of training packets are available • Call or email Kerrin to have additional copies sent out 20
Form M281V: Blank 2014 MN Forms
• • • Changes to order form for filing season 2014 • No payment vouchers Please correctly fill out the form and order only what you need • Forms are also available on our website or at libraries • Contact Kerrin if you have a shortage of forms later in the year Order the appropriate form and booklet if you are doing prior year returns by paper 21
Site List on DOR Website
• • Please update your tax site information in the AARP Portal system • If specific information applies to your site, make sure to note it in the additional information section • Military-certified volunteers: Please note this in the additional information section or email Kerrin • Update opening and closing dates for each site Will send out reminder to all DC’s before tax season starts 22
Helpful Resources
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Minnesota Volunteer Hotline
VITA/AARP Tax Aide Hotline • 651-556-3050 • 1-800-657-3829 • Hours: Monday – Friday, 8:00 am – 4:30 pm Email questions to: [email protected]
Please encourage volunteers to use the hotline.
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Outreach and Education Staff
Hillary Jasicki (Outreach & Education Leadworker)
651-556-6471, [email protected]
Celeste Marin (Latino Outreach Coordinator)
651-556-6616, [email protected]
Chueyee Moua (Asian Outreach Coordinator)
651-556-6613, [email protected]
Jake Feneis (Paid Preparer Outreach Coordinator)
651-556-6606, [email protected]
Karen Kittel (Withholding Tax Outreach Coordinator)
651-556-3668, [email protected]
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