VITA Basic Training Tax Year 2013

1. VITA Basic Training Tax Year 2013

2. What Makes a Successful Volunteer • Ask questions • Be on time • Call in advance if you cannot make it to your volunteer shift • Be professional • Have fun!

3. Ethics • All volunteers must take the ethics certification test. • The IRS and the Coalition take seriously that we are: 1) volunteers, 2) professional and 3) honest.

4. Ethics Continued • Do not accept payment or tips • What if the taxpayer wants direct deposit but doesn’t have a bank account? • Do not intentionally leave income off of tax returns. • Only complete returns within scope of volunteer certification level. • Inform taxpayers of their responsibility for information provided. • Volunteer Protection Act • What happens when a volunteer knowingly completes a false return?

5. The Intake Process • Taxpayer fills out Intake Sheet (4012 p. 6-8) • Volunteer completes Interview • Check Identification • Review Documents • Prepare Return • Quality Review

6. The Taxpayer Will Provide: • Tax information • Forms W-2, 1099, 1098. • Social security cards or ITIN letters • Proof of Identity • Valid drivers license or other government issued picture ID

7. Scenario One • Sheryl pays all of the household expenses to support herself and her child. • Sheryl’s friend Willie has been living with her since April and is fully supported by Sheryl.

8. Intake and Interview

9. Filing Status

11. Intake and InterviewWhat tax documents will we need?

12. Intake Continued

13. W2

14. 1099-G

15. Dependent Care

16. EITC • Taxpayer with kids: • Kids must pass three tests (similar to QC test): • Relationship Test • Age Test • Residency Test • *No support test! • Taxpayers without kids: • Taxpayer or Spouse must be 25 to 64 • Cannot be claimed on another’s return • Live in the US for more than 6 months

17. EITC • Must have earned income less than: • $46,227 ($51,567 married filing jointly) with 3 or more qualifying children • $43,038 ($48,378 married) with 2 qualifying children • $37,870 ($43,210 married) with 1 qualifying child • $14,340 ($19,680 married) with no qualifying children?

18. Direct Deposit

19. www.saveyourefund.com • 10 weekly winners of $100 • 1 grand prize winner of $25,000 • Grand Prize is a Photo Contest • Who is eligible? • Low to moderate income taxpayers • 18 or older • Saved at least $50 of refund using form 8888

20. Scenario One Quality Review • Have a Site Coordinator do a quality review • After printing the return: • Have the taxpayer double check the return • Go over the return with them • Answer any questions • Have them sign the 8879 • Ask them to fill out a satisfaction survey • They will be entered into a drawing after completing it. • The taxpayer keeps: All tax documents, a copy of their entire tax return, and form 8879 complete with signature • The Site keeps: Form 8879 complete with signature and the intake sheet

21. Scenario TwoNotes • They would like to file a joint return • They would like to file a joint return • Stacy is a 9th grade teacher. • Stacey’s mother lived with them for the entire year. She earned $2,500 as a teacher’s aide, $360 in interest, and $4,200 in Social Security. Sean and Stacey provided over half of her support.

23. Filing Status

27. W2

28. 1099 INT

29. 1099 DIV

30. 1099-R

31. Social Security Benefits

32. W-2G

33. 1098-T

34. Schedule A • $4,500 - Unreimbursed medical expenses • $1,750 – Real estate tax • $5,600 – Mortgage interest paid • $300 – Charitable contributions • $50 – Union dues • $200 – Educator expenses • $500 – Student Loan Interest

35. Form 8880 • Cannot be a full time student • Cannot be claimed on someone else’s tax return • Born before January 2, 1995 • AGI of less than: • $28,750 – Single • $43,125 – Head of Household • $57,500 – Married Filing Jointly • Taxpayer must make a contribution • W2 amount in box 12 or 14 or an ‘x’ in the retirement box.

36. Scenario Two Quality Review • Have a Site Coordinator do a quality review • After printing the return: • Have the taxpayers double check the return • Go over the return with her • Answer any questions • Have her sign the 8879 • Ask they would like to fill out a satisfaction survey • Taxpayer keeps: All tax documents, a copy of her entire tax return, and form 8879 complete with signature • The Site keeps: Form 8879 complete with signature and the intake sheet

37. If the Taxpayer Owes the IRS Money • Pay by credit card for a fee • Fill out form 9645 to set up payment plan • Electronic withdrawal from their bank account • Mail in check/money order with 1040V • Request a Full Pay Within 60-120 Days Agreement • Go on www.irs.gov to file and online payment plan agreement

38. Free Application for Federal Student Aid • What is FAFSA? • Why is FAFSA an important add on to free tax preparation? • Extra certification is needed to assist clients with the FAFSA application

39. Affordable Care ActBrief Overview • Premium tax credit – refundable credit • Get it now or get it later • Requirements • Must be a US Citizen • Can’t be a dependent • No Married Filing Separately • Enroll through the Market Place • Taxpayer is not eligible for other insurance coverage

41. Ohio EITC • 5% • Nonrefundable • Cap on income • Taxwise does the work for you

42. Now What? • Take the test •  https://www.linklearncertification.com/ • www.voltaxprep.com –Password is learntwo • After passing the test, please email your certification to volunteer@refundohio.org • Sign up to volunteer at www.refundohio.org • Still have questions? Contact us: • volunteer@refundohio.org