eks training. review day #2 tax law review individual taxpayer identification number (itin) ...

EKS Training

Review Day

#2

Tax Law Review Individual Taxpayer Identification Number (ITIN)

Itemized DeductionsAffordable Care Act: Exemptions

Scenario #4

Scenario #4

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

Scenario #4

Let’s review Olivia & Brandon’s Information:

Pull out Interview NotesPull out Intake & Interview sheet

13614-C

Interview

Notes Review

Olivia and Brandon Rodgers are married and want to file a joint return.

Brandon retired and began receiving retirement income March 1, 2014. Brandon and Olivia selected a joint survivor annuity for these payments.

Olivia and Brandon paid $5,942.18 in property taxes for their home.

Olivia and Brandon did not itemize last year.

Brandon is a self-employed landscaper. He is a cash-basis taxpayer who materially participates in the operation of his business.

The total mileage on his work vehicle for 2014 was 14,325 (5,628 commuting miles). He placed his car in service on January 6, 2010 and always takes the standard mileage rate. Brandon used Olivia’s car for personal use.

Both Brandon and Olivia have employer provided health insurance all year.

If Olivia and Brandon are due a refund, they want their refund to be directly deposited in their checking account. If they have a balance due, they will mail in the payment.

Review 13614-C to ensure responses match

Intake &

Interview

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

Publication

4012

Is client eligible for VITA services?

Refer to Publication 4012 page 8-9

Scope of Services Chart

TaxWise

Instructor: Start the return on Main

Information

Students: WATCH instructor

TaxWise

Students: Start the return on Main

Information

Do Not Enter Income Documents

TaxWise

Students: Now, input income

documentsW2

1099-INT

Tax Law Topic #1

Retirement Income

Open: Publication 4012, Tab D

Pull out: Brandon’s 1099R

TaxWise

Instructor:Input 1099R information

on 1040

Students watch instructor

TaxWise

Students:1. Enter 1099R for

Brandon

Reference Publication 4012, Tab D pages 19-22

Tax Law Topic #2

Social Security Benefits

Reference:

Publication 4012, Tab D-22Pull out Form SSA-1099 (Social Security Benefit Statement)

TaxWise

Instructor:Input SSA-1099

information on 1040


TaxWise

Students: Enter SSA-1099

Reference Publication 4012, Tab D-22

Tax Law Topic #3

Schedule C & Cez

1. What is it?

2. When does this schedule need to be used?

3. What is in scope for VITA sites?

4. What are the requirements?

Open: Publication 4012, Tab D-10

TaxWise

Instructor:Input information on Schedule CRefer to information on interview notes & 13614-C


TaxWise

Students:1. Enter information on

Schedule C

Reference Publication 4012, Tab D-10-11

Tax Law Topic #4

Capital Gain/Loss Transactions

1. What is it?



Reference:

Publication 4012, Tab D-10 & D-3

Pull out Form 1099DIV, 1099INT, 1099B

TaxWise

Instructor:Enter: 1099-DIV;

1099INT & 1099-B


TaxWise

Students: Enter: 1099-DIV; 1099INT & 1099-B

Reference Publication 4012, Tab D-10 & D-15

Tax Law Topic #3

Schedule C & Cez

1. What is it?

2. When does this schedule need to be used?



Open: Publication 4012, Tab D-10

TaxWise

Instructor:

Input information on Schedule C

Refer to information on interview notes & 13614-C


TaxWise

Students:1. Enter information on

Schedule C

Reference Publication 4012, Tab D-10-11

Tax Law Topic #5

Affordable Care Act

1. Discuss coverage for Brandon & Olivia

2. Review minimum essential coverage

Reference:

Publication 4012, Tab ACA13614-C Part VI

TaxWise

Instructor: Enter Information for

ACA, Form 8965

Students: WATCH

TaxWise

Students: Enter Information for

ACA, Form 8965

Reference Publication 4012, Tab ACA

CA State

Return

Completing CA portion of return

1. Follow instructor to learn how to complete this section

Reviewing and completing the return

1.Review the federal returnPeer-Return Review

2.Finish the return

Knowledge

Check!

If someone comes in with a 1099-MISC, what schedule will you complete in TaxWise?

Schedule C

What is the maximum amount of expenses allowed, to file a Schedule C/Cez, for VITA?

$10,000

True or False: Most VITA clients will have taxable social security benefits?

False, most will have nontaxable social security benefits because they often don’t have another source of income that makes a portion of their social security taxable

What is the common form you will receive from a client if they have retirement income?

1099-R

What line do you link from on the 1040 to input a 1099-R?

Line 16

Now Let’s Start the

Test!!!

Pull Out your 6744

You Can Do It!!!