EKS Training
Scenario One
Ground
Rules
o Don’t work ahead – stay on the current task
o Turn off your cell phone
o Question/Comments – raise your hand, stay in your seat
o No side conversations - don’t even ask your neighbor for help
o Returning volunteers sit next to new volunteers
o Bring your materials every day
o At least try to do your homework – bring your questions
Intro to EKS:
Let’s watch
https://vimeo.com/67702708
 Understanding the pieces of the 1040 will help you
understand and apply tax law better
 Preparing a tax return includes going over the key lines
with the taxpayer
1040 Review
 Intro Video
 2015 1040
4 Steps:
Class
Structure
1. As a class, we will review Interview Notes, Intake &
Interview Sheet (13614-C) & supporting documents
for each scenario.
2. Instructor will teach Tax Law – referencing Publication
4012 and 13614-C
3. Instructor will show you how to enter information into
TaxWise. WATCH!
4. Now DO! Students will enter information on TaxWise
 You will use this every day of training
Publication
4012
 You will use this every time you prepare a tax return
 Don’t memorize – look it up in here!
 These are the test questions!
Test Book 6744
 Basic vs. Advanced
 3 tests
As a volunteer in the VITA/TCE Programs, you must:
1. Follow the Quality Site Requirements (QSR).
2. Not accept payment or solicit donations for federal or state tax
return preparation.
Volunteer
Standards of
Conduct Training
3. Not solicit business from taxpayers you assist or use the knowledge
you gained (their information) about them for any direct or indirect
personal benefit for you or any other specific individual.
4. Not knowingly prepare false returns.
5. Not engage in criminal, infamous, dishonest, notoriously disgraceful
conduct, or any other conduct deemed to have a negative effect on
the VITA/TCE Programs.
6. Treat all taxpayers in a professional, courteous, and respectful
manner.
Publication 4961
 The two most important things you will do when preparing a return
– interview the taxpayer using the 13614-C and quality review the
tax return!
13614-C –
Your key to success!
 Every taxpayer must fill out the 13614-C, Intake and Interview Sheet
 Every taxpayer must be interviewed
 Every tax return must be quality reviewed
Publication 5101, Publication 4012, Tab K-3 and K-4
Videos!
 Intake and Interview Video
 Quality Review Video
Scenario #1
What you will learn in this scenario:
Scenario #1
1.
2.
3.
4.
5.
6.
7.
8.
Who should and must file
Filing Status
Personal Exemption
Income (taxable vs. nontaxable) – wages, interest,
unemployment
Refundable vs. Nonrefundable Credits and EITC
Standard Deduction
Affordable Care Act – Minimum Essential Coverage
Splitting a refund
Let’s review William’s Information:
Scenario #1
 Interview Notes
 Intake & Interview sheet - 13614-C
 Tax Documents
Interview
Notes Review
 What did you learn about William?
Deep Dive with the 13614-C
 Did William bring all the required documents?
Intake &
Interview
 Everything accurate?
 What’s missing/wrong/mismatched that needs to be
changed?
 Compare tax documents and interview notes
 Make any corrections needed on 13614-C
 Fill out greyed out boxes (dependency and ACA)
Publication 4012, Tabs K-3 and K-4
Does this taxpayer need to file their return?
Who should
Or should they?
file?
Publication 4012, Tab A
Is client eligible for VITA services?
In Scope?
What certification level is needed to prepare
this return?
Publication 4012, pages 8-10
Scope of Services Chart
Filing Status
 There are 5 filing statuses:
Tax Law
Topic #1
 Married Filing Jointly
 Head of Household
 Qualifying Widower/Widow with dependent
children
 Single
 Married Filing Separately
Publication 4012, Tab B-1, B-2
Tax Law
Topic #1
Review 13614-C, Part II, numbers 1 & 2
Let’s review the Decision Tree
 Could William qualify for more than one status?
Exemptions:
Tax Law
Topic #2
 Exemptions reduce the taxpayer’s taxable income
 Two types of exemptions - personal exemption and dependency
exemption
 Each exemption is worth $4,000 for the 2015 Tax Year
Publication 4012, Tab C-1 and C-2
Students: WATCH instructor
TaxWise
Enter William’s information on the Main Information Sheet
 Select Filing Status
 Personal Exemptions are calculated based on taxpayer and
spouse info entered
 Everything from the first page of the 13614-C
 Highlight/star on Publication 4012, Tab K-6 to K-11 as we
go
Publication 4012, Tab B-1, Tab K-6 to K-11
Students:
Enter William’s information on the Main Information Sheet
 Enter only required fields (will be red)
TaxWise
 Select Filing Status
Publication 4012, Tab K-6 to K-11
Income:
 Income is money received
Tax Law
Topic #3
 Some income is taxable and some is nontaxable
 What kind of income does William have?
 Wages (W-2)
 Interest (1099-INT)
 Unemployment (1099-G)
Publication 4012, Tab D-1 and D-3
Students: WATCH instructor
TaxWise
Enter William’s W-2
Publication 4012, Tab D-3, D-6, D-7
Students:
TaxWise
Enter William’s W-2
Publication 4012, Tab D-3, D-6, D-7
Students: WATCH instructor
TaxWise
Enter William’s 1099-INT
Publication 4012, Tab D-3, D-8, D-9
Students:
TaxWise
Enter William’s 1099-INT
Publication 4012, Tab D-3, D-8, D-9
Students: WATCH instructor
TaxWise
Enter William’s 1099-G
Publication 4012, Tab D-3
Students:
TaxWise
Enter William’s 1099-G
Publication 4012, Tab D-3
Deductions:
 Deductions reduce a taxpayer’s taxable income
Tax Law
Topic #4
 Taxpayer can take Standard or Itemized Deductions (should take the larger):
 Standard – a fixed dollar amount based on filing status
 Itemized – uses your qualified expenses like mortgage interest, medical or dental
expenses, charitable contributions
 Taxpayers born before 1951 or blind may be eligible for a larger standard
deduction
 TaxWise automatically calculates the Standard Deduction
Publication 4012, Tab F-1 and F-2
Tax Credits:
Tax Law
Topic #5
 Two Types: Refundable & Nonrefundable
 Nonrefundable credits allow taxpayers to lower their
liability to zero.
 Refundable credits allow taxpayers to lower their tax
liability and receive as a payment once liability is zero.
Nonrefundable Credits:
 Child & Dependent Care Credit
 Lifetime Learning - Education Credit
Tax Law
Topic #5
 Retirement Savings Credit
 Child Tax Credit
 Less common:
 Credit for Elderly or the Disabled
 Foreign Tax Credit
Publication 4012, Tab G & J
Refundable Credits:
Tax Law
Topic #5
 Additional Child Tax Credit
 American Opportunity Tax Credit – Education Credit
 Earned Income Tax Credit
Publication 4012, Tabs G, I & J
Earned Income Tax Credit
Tax Law
Topic #5
Publication 4012, Tab I
Part A
Rules for Everyone
Part C
Rules if you do not have a qualifying
child
Taxpayers & qualifying children must
all have SSN that is valid for
employment
Must be at least age 25 but under age
65 as of December 1
Filing status cannot be married filing
separately
Cannot be the dependent of another
person
Must be a US Citizen or resident alien
all year
Must have lived in the United States
more than half the year
Cannot file Form 2555 or Form 2555EZ (re: foreign income)
Cannot be a qualifying child of
another person
Investment income must be $3,400 or
less
Cannot be a qualifying child of
another person
Students: WATCH instructor
TaxWise
Enter William’s Earned Income Tax Credit - Schedule EIC
Worksheet
Interview Notes & Publication 4012, Tab I-6 and I-7
Students:
TaxWise
Enter William’s Earned Income Tax Credit - Schedule EIC
Worksheet
Interview Notes & Publication 4012, Tab I-6 and I-7
Affordable Care Act
Tax Law
Topic #6
 Did William have coverage all year?
 Any questions or clarity needed from 13614-C or the interview?
Interview Notes, 13614-C, Publication 4012, Tab ACA
Students: WATCH instructor
TaxWise
Enter Full Coverage information on ACA Worksheet
Interview Notes, 13614-C, Publication 4012, Tab ACA
Students:
TaxWise
Enter Full Coverage information on ACA Worksheet
Interview Notes, 13614-C, Publication 4012, Tab ACA
 Does William want to direct deposit his refund?
 If so, is he requesting to split his refund?
Refund
 Does he want to buy a savings bond?
13614-C and Interview Notes
Ask Every Taxpayer (AET)!
Savings
 How to talk about savings video
Students: WATCH instructor
 How to prepare the Form 8888 video
 Fill out 8888 to split William’s refund between his
savings and checking accounts
TaxWise
 On the 8888, fill in both accounts, amounts, choose
checking/savings
 Best practice to check they were entered in correctly
Interview Notes, 13614-C, Publication 4012, Tab K-14 and K-15
Students:
 Fill out 8888 to split William’s refund between his
savings and checking accounts
TaxWise
 On the 8888, fill in both accounts, amounts, choose
checking/savings
 Best practice to check they were entered in correctly
 On the 540, check the “different account” option, will have
to enter twice to verify
Interview Notes, 13614-C, Publication 4012, Tab K-14 and K-15
Finishing the
return
1.
Ask the questions in the Prep Use Fields
2.
All returns must be quality reviewed (checklist on 13614-C) Tab,
K-25
3.
Run Diagnostics for errors
4.
Print returns (Federal and State) for Taxpayer
5.
Review return with taxpayer (Formula 1040 activity)
6.
Have Taxpayer and Spouse sign 8879s for Federal and State and
remind them they are responsible for their return and by signing,
they are agreeing it is accurate:
 One copy for the taxpayer
 One copy for the VITA Site
Publication 4012, Tab K
 Do we have matching AGI, refund?
Check our
work
 Let’s review entry of:
- W-2
- 1099-INT
- 1099-G
- ACA
- Split refund
What is something you always ask for during the intake and interview
process?
Publication 4012, Tab K-3 and K-4 and Publication 5101
Photo Identification and Social Security Card or ITIN
Look it up!
True or False: IRS requires that 80% of taxpayers fill out the intake and
interview sheet (13614-C)
Publication 5101
False, it’s 100%!
How many filing statuses are there? Can you name them?
Publication 4012, Tab B
5: Single, Married Jointly, Married Separately, Qualified Widow/Widower with
Dependent Child, and Head of Household
Name the two types of exemptions and identify which one William is getting
in Scenario 1.
Publication 4012, Tab C-1
Personal and dependency; Personal
What is William’s standard deduction amount?
Publication 4012, Tab C-1
Look it up!
$6,300
What do I fill out first when I start a return in TaxWise?
Main Information Sheet
Name two requirements for everyone to qualify for the EITC.
Publication 4012, Tab I
Valid SSN, no MFS, US Citizen or resident alien, no form 2555, investment
income less than $3,400, can’t be a dependent of another person
What does MEC stand for?
Publication 4012, Tab ACA
Minimum Essential Coverage
Look it up!
Name a nonrefundable tax credit.
Publication 4012, Tab G
Child Tax Credit, Child and Dependent Care Credit, Lifetime Learning Credit,
Retirement Savings Credit
What two things happen for every tax return?
Publication 5101
Intake/Interview Sheet filled out and quality review of the return
What form do you use for splitting a refund?
Publication 4012, Tab K-15
8888
 Create Link and Learn login (instructions provided – let’s
review)
Before next
week…
 Take Standards of Conduct and Intake/Interview &
Quality Review Tests
 Try your Scenario 2 Homework