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Instructor Workshop What’s New in 2013 Highlights

Instructor Workshop What’s New in 2013 Highlights. Janelle Riedl – AZ TRS. Agenda. Volunteer Certification Changes New Plastic Project Training Products Tax Law Changes AARP Scope Changes TaxWise Changes Arizona Changes. Volunteer Certification Changes. Source: IRS Fact Sheet.

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Instructor Workshop What’s New in 2013 Highlights

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  1. Instructor Workshop What’s New in 2013Highlights Janelle Riedl – AZ TRS AZ Instructor Workshop TY13

  2. Agenda • Volunteer Certification Changes • New Plastic Project • Training Products • Tax Law Changes • AARP Scope Changes • TaxWise Changes • Arizona Changes AZ Instructor Workshop TY13

  3. Volunteer Certification Changes Source: IRS Fact Sheet AZ Instructor Workshop TY13

  4. New This Year for All Volunteers • Volunteer Standards of Conduct (VSC) – Ethics — Pub 4961 will include training and certification on the Intake/ Interview and Quality Review Processes • Approximately 10 questions AZ Instructor Workshop TY13

  5. Changes to Counselor Certification Test • Test reduced from three (Basic, Intermediate and Advanced) to two independent tests (Basic OR Advanced) • AARP Tax-Aide will certify to Advanced • Approximately 40 questions • HSA and COD remain as independent certification AZ Instructor Workshop TY13

  6. Required Training • Client Facilitators • Client Facilitator Training • Counselors • Interview & Intake • Quality Review • Volunteer Policies and Procedures • Local Coordinator Policies and Procedures AZ Instructor Workshop TY13

  7. Form 13615, Page 1 AZ Instructor Workshop TY13

  8. Form 13615, Page 2 AZ Instructor Workshop TY13

  9. Form 13615, Page 2 Request for CE credits to be sent to National Office for Approval. Do NOT send to SPEC. AZ Instructor Workshop TY13

  10. QUESTIONS/COMMENTS? AZ Instructor Workshop TY13

  11. New Plastic Project Sent to all volunteers AZ Instructor Workshop TY13

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  15. QUESTIONS/COMMENTS? AZ Instructor Workshop TY13

  16. Training Products Source: IRS Fact Sheet 8/13 AZ Instructor Workshop TY13

  17. Available IRS Training Products • Pub 4480 VITA/TCE Link & Learn Training Kit • Pub 4012, Volunteer Resource Guide • Pub 4491W, Problems and Exercises (Evergreen) • Pub 5051 (CD) • Form 6744, Test/Retest AZ Instructor Workshop TY13

  18. Pub 5051 CD • Pubs 4012, 4491-W, 4491, Form 6744 • Pub 4942, HSA, COD Test • Pub 4961, Volunteer Standards of Conduct – Ethics Training • Pub 4965(PR) Puerto Rico Volunteer Test • Pub 4704-FS, Foreign Student Test • Form 13614-C EN & SP Intake/Interview and Quality Review Sheet AZ Instructor Workshop TY13

  19. Evergreen Products • Pub 4491 Training Guide and Pub 4491W Problems and Exercises • Evergreen products require minimal updates and will be updated every 2–3 yrs • NOTE: Evergreen products should be maintained at the end of the filing season and used again the next filing season • Pub 4491-X will contain updates to Pub 4491 and Pub 4491W AZ Instructor Workshop TY13

  20. QUESTIONS/COMMENTS? AZ Instructor Workshop TY13

  21. Federal Tax Law Changes 2013 AZ Instructor Workshop TY13

  22. Federal Tax Law Changes 2013 • New provisions • Indexing • Extenders • Form change • Due Dates AZ Instructor Workshop TY13

  23. Medical Deduction Haircut • Taxpayers can deduct amount of unreimbursed medical and dental expenses that exceeds 10%of AGI (was 7.5%) • If 65 or older, threshold remains 7.5% AZ Instructor Workshop TY13

  24. Capital Gains Tax Rate • New 20% rate for higher income taxpayers AZ Instructor Workshop TY13

  25. New Taxes • Medicare tax on high incomes • Net investment income tax for high income taxpayers • Both apply if AGI exceeds • $200,000 Single or HH • $250,000 MFJ or QW • $125,000 MFS • Both out of scope AZ Instructor Workshop TY13

  26. Social Security Tax Rate • Employee portion of social security tax returns to 6.2% (was 4.2% for 2011–2012) • Applies to self-employment tax too • Full social security rate now 12.4% • Total S-E tax rate 15.3% AZ Instructor Workshop TY13

  27. Standard Deduction and Exemption Increases • $6,100 – Single or MFS • $7,600 – Single >65 or blind • $8,950 – HH • $10,150 – HH >65 or blind • $12,200 – MFJ or QW • $13,400 – MFJ, QW >65 or blind • Exemptions increase to $3,900 AZ Instructor Workshop TY13

  28. Standard Mileage Rates 2013 • 56.5¢ per mile – business miles • 24¢ per mile – medical miles • 14¢ per mile – charitable miles AZ Instructor Workshop TY13

  29. EIC Maximum Creditsand Income • $6,044 – three or more qualifying children • $5,372 – two qualifying children • $3,250 – one qualifying child • $487 – no qualifying child • $46,227 ($51,567 MFJ) 3 qualifying children • $43,038 ($48,378 MFJ) 2 qualifying children • $37,870 ($43,210 MFJ) 1 qualifying child • $14,340 ($19,680 MFJ) no qualifying child Max Credit Max Income AZ Instructor Workshop TY13

  30. Earned Income Credit AZ Instructor Workshop TY13

  31. Deductible Long-Term Care Premium Limits • Qualified long-term care premiums includible as medical expense on Sch A • $360 – Age 40 or under • $680 – Age 41 to 50 • $1,360 – Age 51 to 60 • $3,640 – Age 61 to 70 • $4,550 – Age 71 and over AZ Instructor Workshop TY13

  32. Other Indexing • HSA Limits • $3,250 self-only coverage • $6,500 family coverage • Both + $1,000 if age 55 or older • Retirement savings credit income limits • Max $29,500, $59,000 MFJ, $44,250 HH • Max investment income for EIC $3,300 AZ Instructor Workshop TY13

  33. Other Indexing • IRA contributions • Max $5,500 ($6,500 if age 50 or older) • Modified AGI limits when covered by employer plan • Lifetime learning credit income limits • Excludible savings bond interest – out of scope • Foreign earned income exclusion AZ Instructor Workshop TY13

  34. Extended Provisions 2013 • Tax-free distribution from IRAs to public charities for individuals age 70½ or older • COD exclusion for principal residence • Adjustment for educator classroom expenses up to $250 • Adjustment for qualified tuition and fees AZ Instructor Workshop TY13

  35. Extended Provisions • Premiums for mortgage insurance deductible as interest for qualified residence • Deduction for state and local general sales taxes • Nonbusiness energy property credit AZ Instructor Workshop TY13

  36. Form Changes • Sch D new lines if all transactions on statement are Code A or D – basis reported to IRS with no adjustments • Continue to enter all capital gains/losses on Capital Gains Worksheet in TaxWise • TaxWise will carry to proper forms/lines AZ Instructor Workshop TY13

  37. Due Dates • 2013 tax returns are due Tuesday, April 15, 2014 • 2014 estimated payments due • April 15, 2014 • June 15, 2014 • September 15, 2014 • January 15, 2015 AZ Instructor Workshop TY13

  38. Form 8453 • Where Form 8453 is required • Can be scanned and sent with return or • Copy must sent to Austin AND to the local SPEC office. Prepaid mail label are suppose to be provided AZ Instructor Workshop TY13

  39. Defense of Marriage Act (DOMA) • AARP Tax-Aide will be required to prepare MFJ Federal tax returns for same sex married couples married in a state that recognizes same sex marriage. • Separate AZ paper returns will be required for each taxpayer along with AZ Sch S. • Further discussion in AZ Tax Law AZ Instructor Workshop TY13

  40. Identity Theft • If unable to file return electronically because primary/secondary SSN was misused, attach Form 14039 to paper return and submit to IRS AZ Instructor Workshop TY13

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  42. Notice CP01A • IRS sent Notice CP01A to over 600,000 taxpayers last year • CP01A contains Identity Protection PIN for use on current year return • Enter IP PIN on Main Info Sheet in field located below where TP PINS entered AZ Instructor Workshop TY13

  43. Enter IP PIN on Main Info Sheet AZ Instructor Workshop TY13

  44. QUESTIONS/COMMENTS? AZ Instructor Workshop TY13

  45. AARP Tax-Aide Scope Changes AZ Instructor Workshop TY13

  46. AARP Tax-Aide Scope Changes • SPEC has approved the following requested scope changes • Sch C Expenses limit to $10,000 • Wash Sales (Schedule D) reported on 1099-B or equivalent • SEP/Simple IRA Distribution AZ Instructor Workshop TY13

  47. Other AARP Tax-Aide Changes • We should try to enter bank information only from a check. If the taxpayer insists on using information they have, we can enter the bank information but the taxpayer must initial the return bank information and the counselor must enter the source of the information on the return. • Name tags should include volunteer first name AND last initial only AZ Instructor Workshop TY13

  48. QUESTIONS/COMMENTS? AZ Instructor Workshop TY13

  49. TaxWise® Tax Year 2013 Changes AZ Instructor Workshop TY13

  50. Tax Year 2013 Changes 2013SoftwareInitiatives–TWO only • Additional dependent statement linked from main information screen instead of from Form 1040 pg 1 • Standalone Mortgage Interest Worksheet linked to Schedule A AZ Instructor Workshop TY13

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