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TRAINING TOPICS - 2010

TRAINING TOPICS - 2010. Bob Eslinger – PRTA Janelle Riedl - TRS. What’s New Unchanged provisions MeF TW SW Enhancements Publications. Training Guide Cod & HSA Extranet Training Certification Taking The Test Volunteer Portal. Training Outline. IRS In-scope Changes for VITA-TCE.

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TRAINING TOPICS - 2010

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  1. TRAINING TOPICS - 2010 Bob Eslinger – PRTA Janelle Riedl - TRS

  2. What’s New Unchanged provisions MeF TW SW Enhancements Publications Training Guide Cod & HSA Extranet Training Certification Taking The Test Volunteer Portal Training Outline

  3. IRS In-scope Changes for VITA-TCE • Schedule C – up to $10,000 expenses – same rules as Schedule CEZ (no losses, no employees, no inventory) • Schedule K-1 - royalties • Two new “on-line” training modules and tests: • HSA – Health Savings Accounts • COD – Cancellation of Debt

  4. Schedule C Restrictions

  5. Economic Recovery Payment • Some SS recipients will receive $250 ERP in 2010 • If did not receive in 2009 when first eligible, • i.e. social security, ssi, railroad retirement, or veterans disability benefits in November 2008, December 2008, or January 2009 • Any Making Work Pay Credit will be reduced in 2010 by this payment

  6. Estate Tax, Basis & Holding Period Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) repealed estate tax after December 31, 2009 and before January 1, 2011 Basis of assets inherited from decedent dying in 2010 is the lesser of the decedent’s adjusted basis or fair market value Basis is treated as a gift Automatic “more than one year” or long term holding period does not apply Date of acquisition will be same as decedents’

  7. ARRA Provisions in 2010 First time homebuyer credit extended closing on purchase of home to September 30, 2010, if purchased before April 30, 2010; eligible for up to $8,000 credit First year for payback of 2008 FTHBC. New motor vehicle purchased in 2009 (after Feb 16, 2009 and before Jan 1, 2010) but did not pay sales taxes until 2010 – are eligible to deduct the amount paid in 2010

  8. Use Form 5405 Part IV To Report Repayment

  9. New or Unchanged Provisions in 2010 Investment income for children remains at $1900; Standard deduction for Head of Household increases to $8400 (from $8350) – all other standard deductions remain the same: Single - $5,700 Joint - $11,400 HOH - $8,400 Exemption amount remains the same in 2010 - $3,650; Standard Mileage Rates – for 2010 Business – 50 cents per mile Medical and moving – 16.5 cents per mile Charity – 14 cents per mile

  10. Earned Income Credit Amount of credit increases in 2010: One qualifying child – maximum $3050 Two qualifying children – maximum $5036 Three qualifying children – maximum $5666 No qualifying children – maximum $457 Earned income amount increases in 2010: $35,535 (joint $40,545) One qualifying child $40,363 (joint $45,373) Two qualifying children $43,352 (joint $48,362) Three qualifying children $13,460 (joint $18,470) No qualifying children

  11. Other changes or items Refund options for purchase of Savings Bonds For 2010, in addition to direct deposits can use refund to purchase savings bonds Can purchase up to three I bonds registrations, Purchase for themselves, beneficiaries, or co-owners, or other persons, other than themselves; Use Form 8888

  12. Expiring Tax Benefits(subject to possible extenders) Waiver of Minimum Required Distributions from IRAs’ and defined benefit plans; Exclusion of $2400 of unemployment compensation from income; Tax free distributions to charity from IRA; Deduction of educator’s expenses; Tuition and Fees Deduction from AGI; Extra $3000 IRA contribution for bankrupt companies; Increase of Standard Deduction for real estate taxes and disaster losses; Increase in Itemized Deduction or Standard Deduction for sales taxes of purchase of new motor vehicle; Increase in Itemized Deduction for state and local sales taxes; Certain tax benefits for Midwestern disaster areas

  13. What’s Is MeF MeF is a new system for the processing of efiles by the IRS. TaxWise 2010 will begin phasing in Modernized eFile (MeF)in the 2011 filing season. MeF is real time, individual return processing vs. batching the returns for processing.

  14. Modernized eFile (MeF) TaxWise 2010 will use both Modernized eFile (MeF) andlegacy processing in the 2011 filing season. TW 2010 will automatically pick the processing system based on the forms used in each return.

  15. Modernized eFile (MeF) Forms that Modernized eFile (MeF) will process in the 2011 Returns with a Form not on this list will be processed by the legacy system

  16. Modernized eFile (MeF) Modernized eFile (MeF) uses a Submission ID that is created when the efile is created, rather than a DCN. A new Submission ID when the new efile is created. Either a Submission IDs or DCN will print on the Form 8879 when return is prepared. There will be a new eFile Submission Report that will list both Submission IDs and DCNs

  17. MeF Advantages Faster acknowledgements From the IRS - 5 to 10 minutes From TaxWise when processing is completed usually within an hour Specific explanation of errors (rejected returns) MeF allows attachments in pdf

  18. MeF Advantages Prior year returns MeF will eventually accept returns from two prior year, but not this season. Amended Returns Will accept amended returns next season Tax Year 2011. Ability to eFile State returns when a Fed Return is not required

  19. TaxWise 2010 Enhancements Three additional Preparer Use Fields are added to the Main Information Sheet in both Desktop and TWO. #14 will be used for our national reporting of QR. Override can be disabled at preparer level Interactive Interview. The preparer can toggle back and forth between the Interview and the Tax Forms. CCH claims the Modem Communication problems are resolved. Desktop Changes

  20. TaxWise 2010 Enhancements Contact Sensitive Help will be available Time-out Reminder 5 min. before shut down New User Roles added - Reviewer, E-file Manager New Hot Keys for… Move Curser to next Entry Insert & Remove Rows - Statements & Worksheets User defined Printing of State Forms Custom Templates for tax form Defaults TWO Changes

  21. 2010 VITA/TCE Quality Statistical Sample (QSS) Review Comparisons

  22. Intake Sheet/Quality Review Pays Off • 85% accuracy when correct intake process was used • 86% accuracy when correct quality review form and process used

  23. Quality Form 13614-C Intake/Interview and Review Sheet Updated • Added an IRS email address and toll free number if problems are identified at the site. • Volunteers will check only one box on the Quality Review Checklist (Section C). • Section B is not required if Part II, Question 2 is blank • A column for taxpayers to check “unsure” in Parts III, IV, and V • Form numbers added where applicable

  24. Training Publications Tax Year 2010 Training Products updated by SPEC/Partner Teams: • Testing Materials - Printed and Link & Learn Taxes version - Publication 4189 & Form 6744 • Student Workbook - Comprehensive Problems & Exercises Workbook - Publication 4491-W e-file Administrator & the Volunteer Resource Guides - Publications 3189 and 4012 (TaxWise Yellow & Blue Tabs) • Training Products Quality Review – Publications 4491 and 4012 (Tax Law White Tabs) • “Optional” Online Module Training and Certification Test – Health Savings Accounts (HSAs) and Cancellation of Debt (COD)

  25. HSAs and CODs An Introduction to Health Savings Accounts and Cancellation of Debt

  26. NEW THIS YEAR This year new online courses on HSAs and/or CODs are available. The courses are available online at Link & Learn and are optional. It is not required, and is not referenced in the Basic, Intermediate or Advanced tests.

  27. Certification Volunteers who are interested in being certified or qualified to do a HSA and/or a COD returns will be allowed to go on-line to take the course. DCs or LCs will determine if there is a need for counselors at their site to be certified in HSA or COD returns. A minimum of two counselors per site will be required.

  28. http://www.aarp.org/tavolunteers/

  29. Counselor Certification • Counselors required to complete Basic, Intermediate & Advanced with 80% accuracy • All volunteers must attend portion of training on Policies and Procedures • Volunteer Agreement F-13645 must be filled in and signed by volunteer • Recommend counselors complete at least 4 problems from Pub 4491W

  30. Background • It is recommended that Practice Lab, TWO or TW Desktop be used to prepare test returns as needed • 2010 L&L, Practice Lab and the test are currently on-line • Access to a computer with Internet Explorer, high speed internet connection and print capability • Public computers (such as library computers) are acceptable

  31. Benefits • A certificate of completion of applicable test segments (Basic, Intermediate & Advanced and optionally for COD and HSA) and the Volunteer Agreement can be printed and given to their instructor • L&L modules can be used to learn the new tax law or brush up • Using Practice Lab will provide experience with TaxWise 2010 for federal returns

  32. Link & Learn Login http://www.irs.gov/ • You must use Internet Explorer for Link & Learn and Practice Lab • Log on to L&L - http://www.irs.gov/app/vita/index.jsp or http://www.irs.gov/ search Link & Learn. • It is suggested that login to L&L be saved as a Favorite or as a desktop icon for easy access at a later time.

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