Welcome to the 2013 - 2014
Volunteer Basic Tax Training
A Session
SaveFirst Volunteer Overview
• Basic Tax Training
• A Session
• B Session
• Certification
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Volunteer Standards of Conduct Test (B session training)
Tax Year 2013 IRS Basic Test
Attend Testing Session or On Your Own
Passing score: 80% or better
Must pass before serving at the tax site.
• Volunteer Hours at Site
• January 20 – March 8
• Complete Availability Form at End of Training
The impact you will have as a
SaveFirst volunteer this season
• Serve a record 6,800 families this year
• Save Alabama families over $2 million in
commercial fees
• Provide a quality, reliable service and an
alternative to a costly, predatory industry for
hard-working families
• Watch the SaveFirst video!
https://vimeo.com/69241080
Resources
• SaveFirst Basic Volunteer Training Agenda
• SaveFirst Basic Volunteer Training Notes
• SaveFirst Basic Training Summary Chart
• SaveFirst Basic Training Practice Exercise: Beth
Branch
• Helpful Tips for New Topics on 2013 IRS Basic
Certification Exam (use on the test)
• Selections from IRS Publication 4012 Volunteer
Resource Guide
• Impact Alabama Staff
Training Outline: A Session
• 1) Tax Terminology
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2) Federal Income Tax Process and Form 1040 Overview
3) Tax Preparation Process
4) Exemptions
5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Form 1040
• Two-page form
• Contains all of the information we will use to file tax returns!
• Automatically loaded in TaxWise
Filing Status
• Affects tax liability
• Based on marital status and family situation
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Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er) with Dependent Child
Choose correct Filing Status on Lines 1-5
Exemption
• Amount the taxpayer can claim for himself, his
spouse, and his dependents that decreases
taxable income.
• $3,900 for each exemption
Total # of Exemptions found on line 6d
Exemption
A taxpayer may claim 2 types of exemptions:
1) Personal exemption (lines 6a/6b)
 Taxpayer can claim herself (and spouse)
2) Dependency exemption (line 6c)
 Taxpayer can claim qualifying dependents
Dependent
• An individual whom the taxpayer supports
financially or who lives with the taxpayer
• Qualifying child, or
• Qualifying relative
Earned vs Unearned Income
1) Earned: income received through work
(wages, salary, tips, etc.)
2) Unearned: income other than pay from work
(interest, social security, retirement, etc.)
Income is entered on Lines 7-21
Total income is found on Line 22
Adjustment
• Decreases the amount of income on which the
taxpayer will be taxed
Adjustments are entered on Lines 23-35
Total adjustments are found on Line 36
Adjusted Gross Income (AGI)
• Amount of taxable income after adjustments
are made
AGI found on Lines 37/38
(bottom of 1040 page 1)
Total Income
(Earned and Unearned)
Adjustments
ADJUSTED
GROSS
INCOME
Deduction
• Amount subtracted from the AGI to further
decrease taxable income
• Standard deduction: based on filing status, age, blind
status
• Itemized deductions: taxpayer can chose to enter
expenses if larger than standard deduction amount (or if
filing status is Married Filing Separately and spouse itemizes)
Standard/Itemized Deduction(s)
found on Line 40
Taxable Income
• Any income that is subject to federal income tax
• Can include both earned and unearned income
Taxable Income found on Line 43
Adjusted Gross Income
(AGI)
Deductions
TAXABLE
INCOME
Tax Liability
• Amount of tax owed for the year based on the
taxable income
Tax Liability
(before credits are subtracted)
found on Line 46 of 1040.
Tax Credit
• Direct reduction of the taxpayer’s liability
1) Nonrefundable credits
2) Refundable credits
Nonrefundable Tax Credit
• Reduces the tax liability – only to zero.
• Child and Dependent Care Expenses
• Retirement Savings Contribution Credit
• Child Tax Credit
Nonrefundable Credits entered on Lines 47-53
Total Nonrefundable Credits found on Line 54
Refundable Tax Credit
• Reduces tax liability to zero, then taxpayer will
receive the remainder of the credit value as a
refund.
• Earned Income Credit,
• Additional Child Tax Credit
Refundable Tax Credits entered on Lines 64-67
Withholding
• Amount of money that can be taken from each
form of income and received by the
government each pay period
Total Withholding found on Line 62
Training Outline: A Session
• 1) Tax Terminology
• 2) Federal Income Tax Process and Form 1040
Overview
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3) Tax Preparation Process
4) Exemptions
5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Federal Income
Tax Process
TOTAL INCOME
Earned
Income
TOTAL INCOME
Unearned
Income
Earned
Income
TOTAL INCOME
Unearned
Income
Earned
Income
TAXABLE INCOME
after adjustments,
deductions, and
exemptions
TOTAL INCOME
Unearned
Income
Earned
Income
TAXABLE INCOME
after adjustments,
deductions, and
exemptions
TAX LIABILITY
TOTAL INCOME
Unearned
Income
TAXABLE INCOME
TAX LIABILITY
after adjustments,
deductions, and
exemptions
TAX CREDITS
Earned
Income
AMOUNT OWED
OR REFUNDED
Form 1040 Overview
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Filing Status
Exemptions
7: Wages
8: Interest
9: Dividends
19: Unemployment
20: Social Security
21: Other Income
30: Early Penalty
37/38: AGI
40: Deduction(s)
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42: Exemptions
43: Taxable Income
46: Tax Liability
48, 50, 51, 53: NR Credits
54: Total NR Credits
59b: Homebuyer Payment
61: Total Tax
62: Withholding
64a, 65: R Credits
72: Total Payments
Refund
Amount You Owe
Training Outline: A Session
• 1) Tax Terminology
• 2) Federal Income Tax Process and Form 1040 Overview
• 3) Tax Preparation Process
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4) Exemptions
5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Tax Preparation Process
• Part 1: Preliminary Interview
• Part 2: Preparing the Return in TaxWise
• Part 3: Quality Review (by Advanced
Volunteer or Site Coordinator)
• Part 4: Finishing the Return
• Part 5: Filing the Return
Tax Preparation Process
• Part 1: Preliminary Interview
• Taxpayer completes pages 1 and 2 of Intake/Interview
Form
• Verify photo ID(s) & Social Security cards(s)
• Ensure taxpayer cannot be a dependent of anyone else (Pub
4012: C-4 to C-6)
• Determine dependents (Pub 4012: C-3 to C-7)
• Complete part of Section II “To be completed by a Certified
Volunteer Preparer”
• Determine filing status (Pub 4012: B-1 to B-3)
• REVIEW pages 1-2 of I/I Form
• Collect necessary forms
• “Yes” or “No” answer for all questions on pg 2
• Write your full name at the bottom of page 3
Identification
• Photo IDs
• Verify photo IDs for taxpayer (and spouse)
• Social Security cards
• Obtain and verify a SS card (original or copy)
• Verify SS numbers for taxpayer (and spouse)
• Verify SS numbers for dependent(s)
• Enter name EXACTLY as it appears on SS card!
Acceptable Documents other than SS Card
• SSA letter
• Name, SS number and statement that taxpayer applied
for a card
• Form SSA-1099 statement
• ITIN card or letter
• Issued for nonresidents who need to file tax returns but
cannot receive SS cards
• 9XX-XX-XXXX (enter just like SS number)
• ATIN for dependent
• Issued for child while adoption is pending
• 9XX-XX-XXXX (enter just like SS number)
Why conduct an interview?
• You get to know the taxpayer and build a
relationship
• You might discover credits and deductions that
could increase the taxpayer’s refund
• You might discover important income
documents that must be recorded
• You may find that the return is out of scope
• Required by the IRS for due diligence
Tax Preparation Process
• Part 1: Preliminary Interview
• Part 2: Preparing the Return in TaxWise
• Part 3: Quality Review
• Part 4: Finishing the Return
• Part 5: Filing the Return
Training Outline: A Session
• 1) Tax Terminology
• 2) Federal Income Tax Process and Form 1040 Overview
• 3) Tax Preparation Process
• 4) Exemptions
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5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Exemptions/Dependents – Line 6
• Refer to Pub 4012 – Tab C
• C-1: Exemptions Summary
• C-2: Personal Exemptions Chart
• C-3: Overview of Rules for Claiming an Exemption for a
Dependent
• C-4: Overview of Rules for Qualifying Child of More Than One
Person
• C-5: Chart for Determining Dependency Exemption (Qualifying
Child)
• C-6/7: Chart for Determining Dependency Exemption for
Qualifying Relative
• C-8: Chart for Determining Dependency for Children of
Divorced or Separated Parents or Parents Who Live Apart
Personal Exemptions – Lines 6a/6b
• Each personal exemption decreases the
taxable income by $3,900.
• Taxpayers can claim exemptions for:
• Taxpayer (themselves) UNLESS the taxpayer can
be claimed as a dependent by someone else.
• Spouse UNLESS the spouse can be claimed as a
dependent by someone else.
Personal Exemptions
• Remember: It’s not whether the taxpayer IS
claimed as a dependent, but whether the
taxpayer CAN BE claimed as a dependent
that determines whether the taxpayer can
claim an exemption.
Dependency Exemptions – 6c
• Each dependency exemption decreases
taxable income by $3,900.
• A taxpayer can claim exemptions for:
• qualifying children
• qualifying relatives
• These qualifying individuals typically live in
the taxpayer’s home and generally receive
significant financial support from him/her.
Determining Dependency
Exemptions
Turn to Tab C-5 in Pub 4012
ALWAYS USE THIS CHART TO DETERMINE
THE NUMBER OF QUALIFYING PERSONS!
Qualifying Child or Relative?
• If no one else can claim the taxpayer or spouse as a
dependent, you need to determine if the other
people living in the house can be Qualifying
Children, and if not see if they can be Qualifying
Relatives.
• Remember: Each dependent decreases the taxable
income by $3,900!
Determining Exemptions
• Qualifying Child/Relative: follow Dependency
Exemption chart on C-5 to see if person is a
Qualifying Child
1. If you get through every step and answer No in Step 9,
then you can claim the person as a Qualifying Child.
2. If answer YES in Step 9, then go to C-4 for chart on
Qualifying Child of More Than One Person
3. If answer Yes in Step 7 AND parents are divorced or live
apart, use charts on C-3, C-4, and C-8.
4. If answer NO to Steps 5-7, you will be directed to the
Chart for Dependency Exemption for Qualifying Relative
on C-6/7 if not a Qualifying Child.
Qualifying Child: The Taxpayer Eligibility Test
If YES: Stop
Step 1
Can you or your spouse (if filing
jointly) be claimed as a dependent on
someone else’s tax return this year? If NO, go to
Step 2
Qualifying Child: The Marital Status Test
If YES,
go to Step 3
Step 2
Was this “child” considered married
on December 31, 2013?
If NO, go to
Step 4
Qualifying Child: The Joint Return Test
Step 3
Is the “child” filing a joint return
for this tax year?
If YES, Stop
(Answer “NO” if the child is filing a joint
return only to claim a refund and no tax
If NO, go to
liability would exist for either spouse if
Step 4
they had filed separate returns.)
Qualifying Child: The Citizenship Test
Step 4
Was the “child” a U.S. citizen, U.S.
resident alien, U.S. national, or a resident
of Canada, or Mexico?
If YES,
go to
Step 5
If NO, Stop
Qualifying Child: The Relationship Test
If YES,
Was the “child” your son, daughter,
go to Step
stepchild, eligible foster child, brother, sister,
6
half brother, half sister, stepbrother,
Step 5
stepsister, or a descendant of any of them
(i.e. your grandchild, niece, or nephew)? If No, go
to Table 2
Qualifying Child: The Age Test
Was the “child”:
- under age 19 at the end of the year
and younger than you (or spouse if
MFJ)? OR
Step 6 - a full-time student under age 24 at the
end of the year and younger than you
(or spouse if MFJ)? OR
- permanently and totally disabled* at
any time during the year?
If YES,
go to Step 7
If NO, go to
Table 2
Qualifying Child: The Residency Test
Step 7
If YES,
go to Step 8
Did the child live with you as a
member of your household, except (Use Table 3 if
for temporary absences for more
parents live
than half the year?
apart)
(Answer “YES” if the child was born
or died during the year.)
If NO, go to
Table 2
Residency Note
• A child is considered to have lived with you
during periods of time when one of you, or
both are temporarily absent due to illness,
education, business, vacation or military
service.
Qualifying Child: The Support Test
Did the “child” provide more than half
of his or her own support*
Step 8
for the year?
If YES, Stop
If NO,
go to Step 9
Qualifying Child: The Other Adults Test
Step 9
If YES, go to QC of More Than One
Is the “child” a
Person Chart (C-3_
qualifying child
of any other
If NO, you can claim this child as a
person?
dependent.
Practice
TRUE or FALSE:
Every taxpayer can claim a personal
exemption for himself.
Practice
TRUE or FALSE:
Every taxpayer can claim a personal
exemption for himself.
FALSE
A taxpayer who can be claimed as a dependent
by someone else CANNOT claim an exemption for
himself.
Practice Scenario #1.1
Rebecca is unmarried with one child, Colin.
Colin is 8 years old and lives full time with his
mother, who provides all of his support. He is
a U.S. citizen, and no other adults live in their
household. Can Rebecca claim Colin as a
dependent?
Use the Chart on C-5
Practice Scenario #1.1: Answer
Rebecca is unmarried with one child, Colin.
Colin is 8 years old and lives full time with his
mother, who provides all of his support. He is
a U.S. citizen, and no other adults live in their
household. Can Rebecca claim Colin as a
dependent?
YES. Colin meets all the requirements to be claimed
as a qualifying child.
Practice Scenario #1.2
Paul is a U.S. citizen who is 26 years old,
permanently disabled, unmarried, did not pay
for more than half of his support and lived
with his parents for the entire year.
Can Paul be claimed as a dependent
by his parents?
Practice Scenario #1.2: Answer
Paul is a U.S. citizen who is 26 years old,
permanently disabled, unmarried, did not pay
for more than half of his support and lived
with his parents for the entire year.
Can Paul be claimed as a dependent by his
parents? YES
Determining Exemptions
• Qualifying Child/Relative: follow Dependency
Exemption chart on C-5 to see if person is a
Qualifying Child
1. If you get through every step and answer No in Step 9,
then you can claim the person as a Qualifying Child.
2. If answer YES in Step 9, then go to C-4 for chart on
Qualifying Child of More Than One Person
3. If answer Yes in Step 7 AND parents are divorced or live
apart, use charts on C-3, C-4, and C-8.
4. If answer NO to Steps 5-7, you will be directed to the
Chart for Dependency Exemption for Qualifying Relative
on C-6/7 if not a Qualifying Child.
Qualifying Child of More Than One Person
• Did any other adult live in your home?
• What was that other adult’s relationship to the
child?
• Could the other adult be
claimed as a dependent
Write these
by someone else?
questions under
STEP 9!
Qualifying Child of More Than One Person
• Sometimes, a child meets all of the tests to be
claimed by more than one taxpayer.
• Example: a mother and a grandmother
• Parenthood and AGI are taken into consideration
in determining who is eligible to claim the child.
Use the Chart on C-4
Qualifying Child of More Than One Person
If only one taxpayer is the child’s parent, the
child is the qualifying person of the parent.
Parenthood trumps all.
Qualifying Child of More Than One Person
• If two parents claim the same child on separate
returns, the exemption goes to the custodial
parent (the parent the child lived with for the
longer period).
• If the parents are equal custodial parents, the
exemption goes to the parent with the highest
AGI.
Parenthood, then AGI.
Qualifying Child of More Than One Person
• If neither parent can claim the child as a
qualifying child, the child is treated as the
qualifying child of the person who had the highest
AGI.
If no parent, then AGI.
Qualifying Child of More Than One Person
• If a parent can claim the child but agrees not to, then the
child is treated as the qualifying child of the person who
had the highest AGI, but only if the person’s AGI is higher
than the highest AGI of any of the child’s parents.
• The taxpayer’s AGI must be higher than AGIs of all other
taxpayers who are eligible to claim the child.
If no parent, then AGI
(if higher than parents).
Practice Scenario #2
Janet has a 2-year-old son Jacob and both live
with Janet’s sister, Lisa. Janet’s AGI is
$25,000 and Lisa’s AGI is $16,000.
Both Janet and Lisa meet all of the tests to claim
Jacob.
If Janet agrees not to claim Jacob, is Lisa allowed
to claim him on her tax return?
Practice Scenario #2: Answer
Janet has a 2-year-old son Jacob and both live with
Janet’s sister Lisa. Janet’s AGI is $25,000 and
Lisa’s AGI is $16,000. Both Janet and Lisa meet all
of the tests to claim Jacob. If Janet agrees not to
claim Jacob, is Lisa allowed to claim him on her tax
return?
No. Lisa is not allowed to claim Jacob, even if Janet
agrees, because her AGI is less than Janet’s AGI.
Determining Exemptions
• Qualifying Child/Relative: follow Dependency
Exemption chart on C-5 to see if person is a
Qualifying Child
1. If you get through every step and answer No in Step 9,
then you can claim the person as a Qualifying Child.
2. If answer YES in Step 9, then go to C-4 for chart on
Qualifying Child of More Than One Person
3. If answer Yes in Step 7 AND parents are divorced or
live apart, use charts on C-3, C-4, and C-8.
4. If answer NO to Steps 5-7, you will be directed to the
Chart for Dependency Exemption for Qualifying Relative
on C-6/7 if not a Qualifying Child.
What if the parents live apart?
• The custodial parent generally claims the
dependency exemption for his/her child.
• The noncustodial parent can claim the
exemption if the parents have signed an
agreement.
• Form 8332 (REQUIRED for post-2008 divorce)
• Other legally binding document (if divorce went
into effect BEFORE 2009)
Division of Benefits: Form 8332
• Custodial parent gives noncustodial parent
right to claim dependency exemption for
• Current Tax Year OR
• Group of Years
• Custodial parent can revoke noncustodial
parent’s right—revocation takes effect the
tax year after signed
Division of Benefits: Form 8332
• Normally, only ONE TAXPAYER can claim a particular
child for ALL of these benefits:
Dependency Exemption
Child Tax Credit
Head of Household
Child & Dependent Care Credit
Earned Income Credit
Division of Benefits: Form 8332
• When parents sign a Form 8332:
Noncustodial parent gets: Dependency Exemption
Child Tax Credit
Custodial parent gets:Head of Household
Child & Dependent Care Credit
Earned Income Credit
Practice Scenario #3
Randy has been divorced since 2010. He
has one child, Paul (age 5). Paul lives with
his mother who provides most of his
support. Can Randy claim Paul as a
dependent?
Use Chart on C-4.
Practice Scenario #3: Answer
Randy is divorced. He has one child, Paul (age
5). Paul lives with his mother who provides most of
his support.
Can Randy claim Paul as a dependent?
NO.
Paul is the qualifying child of his mother; therefore, he
cannot be the qualifying relative of Randy.
UNLESS
Randy can claim Paul if Paul’s mother has signed a
Form 8332 Division of Benefits OR if Paul’s mother is
not required to file a tax return.
Determining Exemptions
• Qualifying Child/Relative: follow Dependency
Exemption chart on C-5 to see if person is a
Qualifying Child
1. If you get through every step and answer No in Step 9,
then you can claim the person as a Qualifying Child.
2. If answer YES in Step 9, then go to C-4 for chart on
Qualifying Child of More Than One Person
3. If answer Yes in Step 7 AND parents are divorced or live
apart, use charts on C-3, C-4, and C-8.
4. If answer NO to Steps 5-7, you will be directed to the
Chart for Dependency Exemption for Qualifying
Relative on C-6/7 if not a Qualifying Child.
Qualifying Relative: The Qualifying Child Test
If YES, not a
Is the person your qualifying child qualifying relative.
Step 1
or the qualifying child of anyone
else?
If NO,
go to Step 2
Qualifying Relative: The Relationship Test
Step 2
Was the person your son, daughter, stepchild, foster child, or
a descendant of any of them?
OR
Was the person your brother, sister, or a son or daughter of
either of them?
OR
Was the person your father, mother, or an ancestor or sibling
of either of them?
OR
Was the person your half brother, half sister, stepbrother,
stepsister, stepfather, stepmother, son-in-law, daughter-inlaw, father-in-law, mother-in-law, brother-in-law, or sisterin-law?
If NO,
go to Step
3.
If YES,
go to Step
4
Note
• The relatives listed in Step 2 are considered
“Relatives who do not have to live with you.”
Qualifying Relative: The Residency Test
If NO, you
Was the person any other person can’t claim this
person.
(other than your spouse) who lived
Step 3
with you ALL YEAR as a member of
your household?
If YES,
go to Step 4
Note
• There are exceptions for kidnapped children;
a child who was born or died during the year;
certain temporary absences – school, vacation,
medical care, etc.
Qualifying Relative: The Gross Income Test
Step 4
Did the person have a gross
taxable income of less than
$3,900 in 2013?
If NO, you
can’t claim
this person.
If YES,
go to Step 5
Qualifying Relative: The Support Test
Step 5
Did YOU provide more than
half of the person’s
total support for the year?
If YES, you
can claim this
person as
your
dependent
If NO,
go to Step 6
Qualifying Relative: Multiple Support Tests
Step 6
Did another person provide more than half of the
person’s total support?
If NO,
go to Step 7
Step 7
Did two or more people together provide more
than half the person’s total support?
If YES,
go to Step 8
Step 8
Did you provide more than 10% of the
person’s total support for the year?
If YES,
go to Step 9
Did the other person(s) providing more than 10%
If YES,
of the person’s total support for the year provide you can claim an
Step 9 you with a signed statement (Form 2120) agreeing exemption
for this
person
not to claim the exemption?
Qualifying Relative: Multiple Support Tests
• If a relative passes all except the support test, a
taxpayer still may be able to claim the
dependency exemption for him/her IF
• The taxpayer, together with another individual,
provided over 50% of the total support, AND
• The taxpayer contributed over 10% of the total
support, AND
• Each other person who contributed over 10% signs a
statement waiving his rights to claim the exemption
(Form 2120).
Practice Scenario #4.1
Roderick, age 29, lives with his uncle. Last year, he
worked part-time and earned $2,100. His uncle
provided for the rest of his support, including rent
and household costs.
Can his uncle claim Roderick as a dependent? Can
Roderick claim a personal exemption?
Start with the Chart on C-4 and then C-5.
Practice Scenario #4.1
Roderick, age 29, lives with his uncle. Last year, he
worked part-time and earned $2,100. His uncle
provided for the rest of his support, including rent
and household costs.
Can his uncle claim Roderick as a dependent? YES.
His uncle can claim Roderick as a qualifying relative.
Can Roderick claim a personal exemption? NO.
Roderick cannot claim a personal exemption because
he can be claimed as a dependent.
Practice Scenario #4.2
Gina Brown provides all support for her uncle.
Uncle Jim is unmarried, 72 years old, and lives
in another city. He has no gross income for the
calendar year. Can Gina claim Uncle Jim as a
dependent?
Start with the Chart on C-4 and then C-5.
Practice Scenario #4.2
Gina Brown provides all support for her uncle.
Uncle Jim is unmarried, 72 years old, and lives
in another city. He has no gross income for the
calendar year. Can Gina claim Uncle Jim as a
dependent?
YES.
Jim meets all of the requirements to be a
qualifying relative of Gina.
Training Outline: A Session
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1) Tax Terminology
2) 1040 Overview
3) Tax Preparation Process
4) Exemptions
5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Five Filing Statuses
• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household
• Qualifying Widow(er) with Dependent Child
Use Charts on B-1, B-2 and B-3
Single
• If on December 31, 2013, the taxpayer was
• Not married OR
• Legally separated/divorced OR
• Widowed
IMPORTANT:
Some taxpayers considered single can also file under
a more advantageous status (HoH or QW).
Be sure to check all options!
Married Filing Jointly
• If on December 31, 2013,
• They lived together as a married couple OR
• They lived apart but were not legally
separated/divorced OR
• One spouse died during the year, and the
taxpayer did not remarry.
Married Filing Separately
• Married taxpayers can choose to file
separately; HOWEVER,
• If one spouse itemizes, the other spouse must
itemize.
• Taxpayers filing with this status are not eligible to
claim several tax credits.
Be careful!
This status generally results in a
HIGHER overall TAX.
Why do some choose MFS?
• Sometimes MFS is chosen when one spouse
does not want to be responsible for the other
spouse’s tax obligations or filing separately
may result in a lower total tax.
• RARELY happens!
• Sometimes to avoid an offset of their refund
against their spouse’s outstanding debts (child
support, student loans…)
• Recommend the other spouse files an Injured
Spouse Form
Note
• If a spouse died during the tax year (2013),
and the taxpayer did not remarry, they are
considered married for the entire year.
• The surviving spouse is eligible to file as MFJ
or MFS.
• Surviving spouses that remarry must file with
the new spouse, as MFJ or MFS.
• The deceased spouse’s filing status becomes MFS.
Head of Household
• Taxpayers can file HoH if they
• Are considered unmarried* AND
• Live with a dependent child or relative AND
• Maintain half the costs of keeping a home.
*A legally married taxpayer can be considered
unmarried and file as HoH if he/she has not lived
with the spouse at any time during the last six
months of the tax year.
Head of Household: Qualifying Person
• See spiral notebook, page B-3, for a list of
qualifying persons for Head of Household
filing status.
• A qualifying relative who is unrelated to the
taxpayer is NOT a qualifying person for
Head of Household.
THIS IS IMPORTANT!
Head of Household: Separated Parents
• Even if the custodial parent has given up
his/her right to claim the dependency
exemption for a child (Form 8332), he/she can
file HoH using that child as his/her qualifying
person.
• Noncustodial parent can never claim HoH.
Division of Benefits: Form 8332
• When parents sign a Form 8332:
Noncustodial parent gets: Dependency Exemption
Child Tax Credit
Custodial parent gets:Head of Household
Child & Dependent Care Credit
Earned Income Credit
Qualifying Widow(er) with Dependent Child
• A taxpayer files QW if his/her
• Spouse died recently, AND
• The taxpayer did not remarry, AND
• The taxpayer has a dependent child (son,
daughter, stepson, stepdaughter), AND
• The taxpayer provides over half the costs to
maintain the main home for himself and the child.
Unmarried, Widowed Taxpayer?
• If the spouse died during the current tax year (2013):
Married Filing Jointly
• If the spouse died during one of the two preceding
tax years (2011, 2012) and taxpayer has a
qualifying child: Qualifying Widow(er)
• If the spouse died three or more years before the
current year (2010 or earlier): Single, Head of
Household
From Lowest to Highest Tax Burden
• Married Filing Jointly and Qualifying
Widow(er) with Dependent Child
• Head of Household
• Single
• Married Filing Separately
Practice
• Use the Charts on B-1, B-2, B-3
Practice #1
Lily left her husband in August 2013, but they
did not get divorced. She took her children
with her, supported them during all of 2013,
and will claim them as dependents. Lily
refuses to file a joint return with her husband.
Which filing status should she use?
Practice #1
Lily left her husband in August 2013, but they
did not get divorced. She took her children
with her, supported them during all of 2013,
and will claim them as dependents. Lily
refuses to file a joint return with her husband.
Which filing status should she use?
MFS.
Because Lily lived with her husband for some part
of the last six months of the year, she cannot claim
HoH.
Practice #2
Em left her husband in February 2013, but they
did not get divorced. She took her children
with her, supported them during all of 2013,
and will claim them as dependents. Em refuses
to file a joint return with her husband.
Which filing status should she use?
Practice #2
Em left her husband in February 2013, but they
did not get divorced. She took her children
with her, supported them during all of 2013,
and will claim them as dependents. Em refuses
to file a joint return with her husband. Which
filing status should she use?
Head of Household.
Practice #3
Lane, a single woman, lives alone. She provides
full support for her mother, Theresa, who lives
in a nearby town. Since Theresa had no
income for the year, Lane paid all costs to
maintain her home and will claim her as a
dependent.
What is Lane’s filing status?
Practice #3
Lane, a single woman, lives alone. She provides full
support for her mother Theresa who lives in a
nearby town. Since Theresa had no income for
the year, Lane paid all costs to maintain her home
and will claim her as a dependent. What is
Lane's filing status?
Head of Household.
A taxpayer can claim H of H filing status on the
basis of a dependent parent who does not live
with him/her only if the taxpayer pays ½ of the
costs of keeping up the parent’s home.
Practice #4
Brian and Ashley have been happily married
since 1965. They have no children, but Brian’s
brother has lived with them for the last 10 years.
Ashley passed away in March 2011. Even after
her death, Brian continued to maintain the entire
cost for the home and his brother still lived there.
What is Brian’s filing status?
Practice #4
Brian and Ashley have been happily married
since 1965. They have no children, but Brian’s
brother lived with him for the entire year. Ashley
passed away in March 2011. Even after her
death, Brian continued to maintain the entire cost
for the home.
Head of Household
Training Outline: A Session
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1) Tax Terminology
2) 1040 Overview
3) Tax Preparation Process
4) Exemptions
5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Who Must File?
• To decide whether someone must file a tax
return, you need to know the individual’s:
• Age
• Gross income (approximate)
• All the income received during the year in the form
of money, goods, property and services not exempt
from tax (earned and unearned – Tab D)
• Do not include Social Security (unless MFS and lived
with spouse at any time during year)
• Filing status
Who is Legally Required to File a Return?
• Use the Pub 4012, Tab A
•
•
•
•
Chart A: For Most People Who Must File
Chart B: For Children and Other Dependents
Chart C: Other Situations When You Must File
Chart D: Who Should File
Other Situations When You Must File
• Taxpayer owes special taxes
• Taxpayer received Health Savings Account
distributions
• Net self-employment earnings of at least
$400
Who Should File
• Had income tax withheld from pay
• Made estimated tax payments
• Qualify for the Earned Income Credit
• Qualify for Additional Child Tax Credit
• Qualify for American Opportunity Credit
Using TaxWise
• Determine the exemptions and filing status first!
• Training: www.twonline.taxwise.com/training
• Client ID: 778068
• Username: Kelly Kotarek  KOTAREKK
• Click “New Return”
• Enter taxpayer’s SS number
• Training: xxx-xx-0196 (& cannot start with a “9”)
• Click “Go to Interview”
Filing Status
Personal Information
Make sure to ask if the Earned Income Credit was disallowed!
Address
Special Processing
Special processing is out of scope for VITA!
General Questions
Dependents: Click Edit
Dependents
Dependents List
• Dependent Codes:
• 1: Your Child who Lives with You
• 2: Your Child who does NOT live with you due to
divorce/separation
• 3: All Other Dependents
• 4: Non-Dependents
• Make sure to check the Child and Dependent Care
Expenses if it applies.
• Always check EIC, and then answer the questions
on the worksheet later.
After entering dependent information…
Switch to Tax Forms!
Loaded Forms & Refund Monitor
Main Info Form
• Check all of the taxpayer’s information
• Check the filing status
• Check the information about the dependents,
including if the boxes for Dependent Care
Expenses, Child Tax Credit and the Earned
Income Credit should be checked
• Check the number of exemptions
Main Info Form
• In the State Information Section, either check
the box if you are not preparing a state
return for the taxpayer or type in AL for either
the full year resident or part-year resident
box.
Dependents Form
• If taxpayer has dependents, fill out the
Dependents Form before entering any income.
• Fill in all questions in red and ONLY those in
red.
• Make sure the correct exemption appears:
• Mark IS a qualifying child.
• Mark IS NOT a qualifying relative.
BREAK
• 10 MINUTES
Practice Exercises
• Review the interview notes and Intake/Interview
form for Beth Branch
• Determine the following:
• Personal exemptions
• Dependency exemptions
• Filing status
• Log in to TaxWise
•
•
•
•
•
www.twonline.taxwise.com/training (GREEN)
Client ID: 778068
Username: SMITHJ
Need to create password
Complete the Interview, Main Info Form and
Dependents Form
Training Outline: A Session
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•
•
1) Tax Terminology
2) 1040 Overview
3) Tax Preparation Process
4) Exemptions
5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Taxable Income
• Wages
• Tips
• Gambling Winnings
• IRA Distributions
• Some Social Security
Benefits
• Awards and Prizes
• Interest
• Alimony
• All Unemployment
Compensation
• Jury Duty Pay
• Etc
Nontaxable Income
•
•
•
•
Child Support
Inheritances
Life Insurance
Supplemental
Security Income
• Insurance Payments
• Gifts
• Public Assistance
Payments
• Veterans’ Disability
Benefits
• Worker’s
Compensation
For a more complete listing of income, see the chart on D-1.
1040 Form in TaxWise
• Information other than personal information,
filing status and dependents is added to the
1040 by linking to specific forms.
Line 7: Wages, Salaries, Tips
Form W-2
Link: Line 7  W2
Filling out a W-2 Form
• Check taxpayer or spouse at top
• Make sure to type in all information exactly as
you see it on the W-2
• Do not change the address if it is different than the
taxpayer’s current address.
• The calculations on lines 3, 4, 5, 6 and 16
automatically fill in, so click the box at the top of
the W-2 if you need to enter in different numbers
than appear.
Employers must make this form available to
employees by January 31st!
W-2 Form in TaxWise
LINK
Filling out a W-2 Form
• If Box 12, 13 (Retirement plan) or 14 is filled
in, check to see if taxpayer qualifies for the
Retirement Savings Contribution Credit
• We will cover this credit at the next training!
W-2 Form in TaxWise
Reported Tips
• Tips totaling more than $20/month
• Usually reported to employer
• Already totaled in Box 1 of Form W-2.
• Allocated tips of any amount
• Appear in Box 8 of W-2
• Tips totaling less than $20/month
• Not reported to employer
• Must be reported to the federal government on
a Form 4137
Tips
• If taxpayers have jobs in which tips are normally
received (waiter, bellhop, hotel housekeeper, etc.),
make sure to ask about any tips received.
• >$20/month at one job and reported to employer:
• Appear on W-2, boxes 1, 5 and 7
• >$20/month at one job and not reported:
• Report on line 4 of Form 4137
• Subject to SS and Medicare taxes
• <20/month at one job and not reported:
• Report on line 5 of Form 4137
• NOT subject to SS and Medicare taxes
Line 7: Tips Not Reported
(Form 4137)
Link: Line 7  Form 4137
(Enter in unreported tips on Line 4 or Line 5)
Reported Tips
• Tips totaling more than $20/month
• Usually reported to employer
• Already totaled in Box 1 of Form W-2.
• Allocated tips of any amount
• Appear in Box 8 of W-2
• Tips totaling less than $20/month
• Not reported to employer
• Must be reported to the federal government on
a Form 4137
Scholarships/Fellowships
• Scholarship money used by a student pursuing
a degree to pay for tuition, fees, books,
supplies, and equipment required of all
students is nontaxable.
• Amount used for room and board is taxable.
Pub 4012, Tab D-3
Scholarships/Fellowships
• If taxpayer received a W-2 for the
scholarship, include the amount on the 1040,
line 7 (just like a W-2).
• If taxpayer did not receive a W-2 for the
scholarship:
• Link: Line 7  1040 Wkt 1
• Enter the amount on the line “Scholarship Income –
no W2”
• Amount should transfer to the 1040, line 7 and the
box “SSHIP” should be checked
Household Employee Income
• If a household employee earns less than
$1,700 a year, the employer is not required
to issue a W2.
• But, the amount of income must be entered on
line 7 (just like taxable scholarship income).
Scholarships/Fellowships &
Household Employee Income
Link: Line 7  W2
Link: Line 7  1040 Wkt 1 (if no W2)
Interest
• Money earns interest when it is:
• Deposited into accounts
• Used to buy certificates of deposit (CDs) or bonds
• Classified as unearned income
Interest: Savings and Checking Accounts, CDs
• Interest is taxed in the year and is credited to a
taxpayer’s account.
• If an early withdrawal penalty is incurred, fill in
the amount in Early Penalty line on the Interest
Statement.
• This amount will carry over to Line 30 on the 1040.
Line 8: Interest
Form 1099-INT
Link: Line 8a  Sch B  1b  Interest Stmt
Line 8: Interest (Form 1099-INT)
Line 8a
Sch B
1b
Interest Stmt
1099-INT Instructions
• Fill in the payer
• Fill in Box 1 or 3 amount
• Fill in any other info (early withdrawal penalty
or withholding)
• If interest is tax exempt:
• NAEOB: enter E
• NAEOB Amount: enter amount from Box 8 of 1099INT
Dividends
• Unearned income
• Payments made by corporations to
shareholders
• Reported to federal government annually
Line 9: Dividends
Form 1099-DIV
Link: Line 9a  Sch B  5a  Dividend Stmt
Line 9: Dividends (Form 1099-DIV)
Line 9a
Sch B
5a
Dividend Stmt
1099-DIV Instructions
• Fill in payer
• Fill in ordinary (1a) and qualified (1b)
dividends
• Fill in capital gains (2a)
• Make sure it carries over to the 1040, line 13
• Fill in withholding (4)
Line 10: 2012 State Tax Refund
• The 2012 State Tax Refund may be taxable
and need to be reported.
• Answer question in Box under Line 9.
• NO: Check no.
• YES: Out of Scope for Basic Volunteers.
• An Advanced Certified Volunteer or Impact Staff
Member must complete.
Line 19: Unemployment Compensation
Form 1099-G
Link: Line 19  1099G Wkt
1099-G in TaxWise
Social Security Benefits
• Some portion of the Social Security benefits
may be taxable.
• Generally, if SS benefits are the only source of
income, then they are not taxable.
• Supplemental Security Income (SSI) is never
taxable.
• SSI is aimed at helping low-income elderly, blind,
and disabled individuals pay for their basic needs.
Line 20: Social Security Benefits
Form SSA-1099
Total benefits
Medicare
premiums
Lump-Sum
Benefit
Payments
Don’t miss
withholding!
Link: Line 20a  1040 Wkt1
Reporting SS Benefits
• If the taxpayer also has other forms of income,
link to the 1040 Wkt 1 .
OR
• If the taxpayer has no other source of income
(only SS benefits), consult the Chart on A-1.
 Taxpayer MIGHT not need to file a return.
1040 Wkt1 in TaxWise
- Social security
received this year
- Medicare
- Federal tax
withheld
Lump-Sum Benefit Payments
• Some taxpayers may have received a lump-sum benefit
payment (for current tax year and prior tax years).
• Found on Form SSA-1099 (Description of Amount in Box 3)
• Two options when entering into TW:
• 1st: Taxpayer may report the entire payment as it was
received
• 2nd: Separate payments based on year received and
record taxable benefits appropriately; with this option
only the current year income will be adjusted
• Taxpayer can choose 2nd option if it lowers the taxable
benefits
Lump Sum Instructions
• 1) Enter in SS, Medicare and Withholding
• 2) Scroll down and enter the benefits for 2013 on the
gross amount received line
• 3) Click on the amounts taxable from previous years
line and type F9 to pull up a Lump Sum Wkt
• 4) Enter the earlier year for which the benefits were
received and the filing status
• 5) Line 1: enter amount of benefits received in prior
year and amount for prior year received in current
year
• 6) Line 3: Enter the AGI for prior year
• 7) Close worksheet and repeat steps 4-6 for
additional prior years
Lump Sum in TaxWise
Line 21: Gambling Winnings
Form W-2G
Loaded Forms Menu: Add W2-G
(If taxpayer doesn’t have a W2G, Link: Line 21  1040 Wkt 7)
W2-G in TaxWise
Loaded Forms Menu: Add W2-G
Without W2-G in TaxWise
If taxpayer doesn’t have a W2G, Link: Line 21  1040 Wkt 7
Enter amount of winnings on Line 1
Other Income (Prizes & Awards)
Link: Line 21  1040 Wkt 7
Enter amount from Box 3 to Line 2
Other Income (Jury Duty Pay)
Link: Line 21  1040 Wkt 7
Enter amount on Line 14
If jury duty pay is given to employer, record on the
1040, Line 35.
Out of Scope
• Self-Employment/Business Income (including
Form 1099-MISC)
• Sale of Stock (Form 1099-B)
• IRA/Pension Income (Form 1099-R)
• Any form we did not just cover in this training
Impact Staff or Advanced trained volunteers
must prepare these for taxpayers at the sites.
Training Outline: A Session
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•
•
•
•
•
•
•
•
•
•
•
•
1) Tax Terminology
2) 1040 Overview
3) Tax Preparation Process
4) Exemptions
5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Standard Deduction
• Reduces amount of income that is taxed
• Amount of deduction based on
•
•
•
•
Filing Status
Age
Whether taxpayer/spouse is blind
Whether taxpayer is a dependent
• TaxWise calculates automatically
Standard Deduction for Most Filers
MFJ or QW
$11,900
HoH
$8,700
Single or MFS
$5,950
Pub 4012, F-6
Itemized Deductions
• Instead of taking the standard deduction, a
taxpayer can choose to itemize, which is to list
certain deductible expenses separately, in
order to receive a greater deduction.
Itemized Deductions
• Itemized deductions include (but are not limited
to):
• Un-reimbursed medical expenses
• Charitable contributions
• Home mortgage payments
• We will review more later. However, this will be
out of scope for basic volunteers at the tax site.
• An advanced trained volunteer or Impact Staff
member must complete an itemization at the tax
site.
Training Outline: A Session
•
•
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•
•
•
•
•
•
•
•
•
•
•
•
1) Tax Terminology
2) 1040 Overview
3) Tax Preparation Process
4) Exemptions
5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Earned Income Credit
• Refundable tax credit that applies to individuals
who work but make low to moderate incomes.
• The EIC is the largest federal anti-poverty
program and has been one of the most successful
programs to lift families, especially families with
children, out of poverty.
• The EIC has been especially successful in
providing an incentive for single mothers with
children to find work.
Maximum Credits
Tax Year 2013:
$6,044 with three or more
qualifying children
$5,372 with two
qualifying children
$3,250 with one
qualifying child
$487 with no qualifying
children
Line 64a: Earned Income Credit
(Form Sch EIC and Sch EIC Wkt)
Use the Charts in Tab I of the Pub 4012
EIC Eligibility: Tab I-2
EIC Eligibility
• Rules for everyone:
•
•
•
•
•
•
Must have earned income (and AGI has limits)
Valid SSNs and U.S. citizens/resident aliens
Not MFS
No foreign earned income
Investment income less than $3,150
Taxpayer cannot be qualifying child of another person
• If taxpayers meet the rules for everyone, then
follow the chart based on if the taxpayer has a
qualifying child or not.
TaxWise
• Sch EIC & Sch EIC Wkt
• Make sure you mark “EIC” in interview for each
dependent!
• If you later determine that a child does not qualify for
the EIC, go back to the interview and uncheck the box.
• Use 4012 to determine if taxpayer qualifies for
EIC and determine if each dependent is a
qualifying child for the EIC.
• Fill out all red lines on forms.
Qualifying Child of More than One Person
• Sometimes, a child meets all of the tests to be
claimed by more than one taxpayer.
• Same rules for QUALIFYING CHILDREN OF
MORE THAN ONE PERSON.
See Chart on I-5
Who can claim the EIC?
1) If only one taxpayer is the child’s parent,
the child is the qualifying person of the
parent.
2) If separated parents both claim the child, the
child is the qualifying child of the parent
with whom the child lived with longer.
(Remember the Division of Benefits –
custodial parents gets EIC.)
Who can claim the EIC?
3) If no parent is eligible to claim the child, the
only person allowed to claim the EIC is the
taxpayer with the highest AGI who meets all of
the tests.
4) Another taxpayer may claim the child if the
parent agrees ONLY IF the other taxpayer’s
AGI is higher than the parent’s AGI and those
of all other taxpayers who are eligible to claim
the child.
Disallowance
• EIC disallowed for
• Reckless or Intentional Disregard of the Rules: 2
years
• Fraudulent Claim: 10 Years
• To claim EIC again, a taxpayer must
• Wait full period of disallowance
• Submit a Form 8862
IMPORTANT NOTE:
Mathematical and clerical errors are NOT bases for disallowance.
Disallowance
• If the taxpayer had the EIC disallowed, make sure
to check the correct box when filling out the
taxpayer’s information.
Practice #1
Sharon, who has an earned income and AGI
of $15,525, takes care of her sister’s son, Eric.
If Eric is 12 years old and began living with
Sharon in August 2013, can Sharon claim the
EIC?
Use the Charts on Tab I
Practice #1: Answers
Sharon, who has an earned income and AGI
of $15,525, takes care of her sister’s son, Eric.
If Eric is 12 years old and began living with
Sharon in August 2013, can Sharon claim the
EIC?
NO.
Sharon’s AGI is too high to claim the EIC alone,
and since Eric lived with her for less than half a
year, he is not her qualifying child.
Practice #2
Doug and Donna are married and live
together with their 4-year-old son Sam. Their
combined earned income is $25,000, but they
file separately. Doug reports an AGI of
$11,000 on his return, and Donna reports AGI
of $14,000.
Can Doug and/or Donna claim the EIC?
Practice #2: Answers
Doug and Donna are married and live together
with their 4-year-old son Sam. Their combined
earned income is $25,000, but they file
separately. Doug reports an AGI of $11,000 on
his return, and Donna reports AGI of $14,000.
Can Doug and/or Donna claim the EIC?
No.
Neither can claim the EIC because both have a filing status
of Married Filing Separately.
Practice #3
Doug and Donna are still married and still live
together with Sam, but now they decide to file
a joint return. Their combined earned income
and AGI are $25,000. Can they claim the EIC
on this return?
Practice #3: Answers
Doug and Donna are still married and still live
together with Sam, but now they decide to file
a joint return. Their combined earned income
and AGI are $25,000. Can they claim the EIC
on this return?
Yes.
Their joint income is low enough to claim the EIC
with one qualifying child (Sam).
Practice #4
Tom is 64 years old, retired and collected
$10,000 of social security during 2013. He
does not have any qualifying children.
Can he claim the EIC on his return?
Practice #4: Answers
Tom is 64 years old, retired and collected
$10,000 of social security during 2013. He
does not have any qualifying children.
Can he claim the EIC on his return?
No. Tom does not have any earned income.
Training Outline: A Session
•
•
•
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•
•
•
•
•
•
•
•
•
•
•
1) Tax Terminology
2) 1040 Overview
3) Tax Preparation Process
4) Exemptions
5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Line 51: Child Tax Credit
• One credit for each qualifying child under 17
years of age.
• A taxpayer can claim a Child Tax Credit for a
child only if they CAN AND DO claim a
dependency exemption for the child.
• Nonrefundable credit with a maximum of
$1,000 per child.
• TaxWise will calculate this automatically.
• Amount actually claimed depends on taxpayer’s
tax liability, MAGI and filing status
• MAGI: typically same as AGI
Line 51: Child Tax Credit
• If the taxpayer’s tax liability is zero, they
cannot claim this credit because there is no tax
to reduce.
• However, the taxpayers may be able to take
the additional child tax credit.
• Tab G-7: Qualifying Child
• Under 17, U.S. citizen, claimed as your dependent,
“related” to you, did not provide over half their
support, *lived with taxpayer for more than half
the year.
Line 65: Additional Child Tax Credit
• Refundable portion of the CTC.
• Applied if taxpayer cannot take full Child Tax
Credit because tax liability is less than $1,000.
• Taxpayer must have at least one qualifying child
under the age of 17.
• Must have at least $3,000 of earned income.
• TaxWise automatically calculates this credit.
• Taxpayers with three or more children may be
able to claim this credit, regardless of income
level.
Training Outline: A Session
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
1) Tax Terminology
2) 1040 Overview
3) Tax Preparation Process
4) Exemptions
5) Filing Status
6) Filing Basics
PRACTICE EXERCISE: BRANCH
7) Income
PRACTICE EXERCISE: BRANCH
8) Standard Deduction
9) Earned Income Tax Credit
10) Child Tax Credit
11) Child and Dependent Care Credit
PRACTICE EXERCISE: BRANCH
12) Volunteer Paperwork and Availability
Child & Dependent Care
Expenses Credit
• Nonrefundable credit
• Applied to offset expenses paid so taxpayer
can work or look for work
• Dependent child under 13
• Spouse who is incapable of self-care
• Dependent who is incapable of self-care
Pub 4012, G-3 and G-4
C & DC Expenses Credit - Eligibility
• Care had to be for qualifying persons
• Taxpayer (and spouse) had to have earned
income
• A spouse is treated as having earned income for any
month the spouse is physically/mentally incapable of
care, or is a full-time student.
• Expenses must have been for work or to look for
work
• Payments can’t have been made to taxpayer’s
spouse, dependent child or child under 19
• Must have care provider’s name, address, and
SSN/EIN (due diligence)
Qualified Work-related Expenses
• Expenses must be paid for the care of the
qualifying person to allow the taxpayer (and
spouse) to work or look for work
• Care includes the costs of services for the
qualifying person’s well-being and protection
• Expenses to attend Kindergarten or a higher
grade: NOT AN EXPENSE
• Expenses for summer day-camp qualify, but those
for over-night camp are not!
• $3,000 limit for one qualifying person or $6,000
for two or more qualifying persons.
Notes:
• If you had expenses that met the requirements
for 2012, except that you did not pay them
until 2013, you may be able to claim them in
2013.
• Taxpayer’s who cannot provide all of the
provider’s information or who have incorrect
information may still be able to take the credit
if they can show they used due diligence in
trying to obtain the info.
• Record on Form 2441, but cannot E-file!
Line 48: C & DC Expenses Credit
• Make sure to check the C & DC Expenses box in
the interview!
Link: Line 48  2441 Pg 1
C & DC Expenses Credit: Part 1
•
•
•
•
1(a): Enter care provider (person or organization)
1(b): Enter address
1(c): Enter SSN or EIN (check EIN if organization)
1(d): Enter total amount paid
C & DC Expenses Credit: Part 1
• If there are more than 2 care providers:
Link: Total of the line 1 amounts  2441 Wkt 1
C & DC Expenses Credit: Part 2
• 2(a-c): Carries forward from interview
• Enter the total amount of qualified expenses; make sure to
split the amount if expenses if they were for more than one
child!
C & DC Expenses Credit: Part 3
• Employer-provided dependent care benefits
• Include amounts the employer pays either directly
to the taxpayer or the care provider
• Appear in Box 10 of the W-2
• Reduces the dollar amount of the credit
• Taxpayers must complete Part III of Form 2441,
even if they are not eligible for the credit
C & DC Expenses Credit: Part 3
Divorced/Separated Parents
• Custodial parent can claim the C & DC
Expenses Credit, even if he/she did not claim
the dependency exemption
• Reminder: Division of Benefits (Form 8832)
Practice #1
Andrea and Bill, the parents of 7-year-old Charles,
are divorced. For the entire year, Charles lived
with his mother. She paid all the expenses of
keeping up the home, as well as bills for beforeschool and after-school child care totaling $1,800.
Nevertheless, as part of their divorce, Andrea
signed a Form 8332 allowing Bill to claim the
dependency exemption for Charles. Who can claim
the Child and Dependent Care Credit?
Pub 4012, Tab G-4
Practice #1: Answer
Andrea and Bill, the parents of 7-year-old Charles, are
divorced. For the entire year, Charles lived with his mother.
She paid all the expenses of keeping up the home, as well
as bills for before-school and after-school child care
totaling $1,800. Nevertheless, as part of their divorce,
Andrea signed a Form 8332 allowing Bill to claim the
dependency exemption for Charles. Who can claim the
Child and Dependent Care Credit?
Andrea.
She paid the expenses, and Form 8332 does not allow the
noncustodial parent to claim this credit.
Practice #2
Julie spent the following amounts on child care
for her 10-year-old daughter Melissa. Are
any of these eligible costs for the Child &
Dependent Care Expenses Credit?
1. $300 for overnight camp
2. $1000 to her ex-husband for after schoolcare
3. $1500 to her mother for after-school care
4. $500 to her 15-year-old son for
babysitting
Practice #2: Answers
Julie spent the following amounts on child care
for her 10-year-old daughter Melissa. Are
any of these eligible costs for the Child &
Dependent Care Expenses Credit?
1. $300 for overnight camp - NO
2. $1000 to her ex-husband for after schoolcare
3. $1500 to her mother for after-school care
4. $500 to her 15-year-old son for
babysitting
Practice #2: Answers
Julie spent the following amounts on child care
for her 10-year-old daughter Melissa. Are
any of these eligible costs for the Child &
Dependent Care Expenses Credit?
1. $300 for overnight camp - NO
2. $1000 to her ex-husband for after schoolcare - NO
3. $1500 to her mother for after-school care
4. $500 to her 15-year-old son for
babysitting
Practice #2: Answers
Julie spent the following amounts on child care for
her 10-year-old daughter Melissa. Are any of
these eligible costs for the Child & Dependent
Care Expenses Credit?
1. $300 for overnight camp - NO
2. $1000 to her ex-husband for after school-care
- NO
3. $1500 to her mother for after-school care YES
4. $500 to her 15-year-old son for
babysitting
Practice #2: Answers
Julie spent the following amounts on child care for
her 10-year-old daughter Melissa. Are any of
these eligible costs for the Child & Dependent
Care Expenses Credit?
1. $300 for overnight camp - NO
2. $1000 to her ex-husband for after school-care
- NO
3. $1500 to her mother for after-school care YES
4. $500 to her 15-year-old son for
babysitting - NO
TaxWise Exercise: Branch
• Branch exercise
• Earned Income Tax Credit
• Child Tax Credit, Child
• Dependent Care Credit
• Twonline.taxwise.com/training
• Client ID: 778068
• User ID: FARRISC
Volunteer Forms to Complete
• Complete packet and turn in to trainers
• Tax Site Availability Form
http://impactalabama.org/taxprep/
Welcome to the 2013 - 2014
Volunteer Basic Tax Training
Session
“Stories of Impact”:
Video Portraits of Alabama Families
• The Charles Family:
https://vimeo.com/76462362
• The Miller Family: https://vimeo.com/76462364
Your service this tax season is incredibly
important to hard-working Alabama families,
like the Charles and Miller families,
all over the state.
Training Outline: B Session
• 1) Miscellaneous Credits
• 2) Form 8888
PRACTICE EXERCISE: BRANCH
• 3) Alabama Return
• 4) New Topics on 2013 IRS Basic Certification Exam:
Retirement Income
• 5) New Topics on 2013 IRS Basic Certification Exam:
• 6) New Topics on 2013 IRS Basic Certification Exam:
Itemized Deductions
• 7) New Topics on 2013 IRS Basic Certification Exam: Higher
Education Expenses (Credits & Deductions)
• 8) Volunteer Requirements and Standards of Conduct Test
• 9) Intake/Interview & Quality Review
Line 50: Retirement Savings
Contribution Credit
• Nonrefundable credit for taxpayers who:
• Contributed to a qualified retirement plan
(traditional or Roth IRA)
• Meet AGI and age limitations
• Cannot be claimed as dependents
• Are not full-time students
Pub 4012, Tab G-6
Retirement Savings Credit:
Contributions Record
• Contribution information could appear in Box
12 of Form W-2 (typically code D or E) or as
a check in Box 13.
• If contribution information is found is listed
somewhere else, check your Site Coordinator
Manual!
• Box 14 of Form W-2
• Not reported on the W-2 (ask the taxpayer!)
Line 50: Retirement Savings
Contribution Credit
• How do I know if the taxpayer has made a
qualifying contribution?
• Form W-2, Box 12 and one of the codes: D, E, F, G,
H, S, AA or BB
• Form W-2, Box 14 and codes for military
personnel: Q or E
Pub 4012, Tab G-6
Retirement Savings Credit: Testing
Period
• Taxpayers must reduce their eligible
contributions by the amount of distributions
received during these years
• 2010 through 2013 until April 15
Maximum Contribution Amount
• For MFJ taxpayers, both spouses may be
eligible for a credit on a maximum annual
contribution of $2,000 each.
• If either spouse has received a distribution
during a testing period, both spouses must
reduce their eligible contribution by that
amount!
Retirement Savings Credit: W-2
Link: Line 50  8880
Filling out Form 8880
1) Check the correct box for if either the
taxpayer and spouse was a full-time student
(make sure each W2 is labeled correctly as
taxpayer or spouse)
2) On line 4, enter the amount (if any) of
distributions that were made before the due
date OR enter F3 if no distributions were
made
Form 8880 in TaxWise
Practice #1
Bob, age 48, contributed $600 to an IRA in
2013. During the year, he worked full-time and
had an AGI of $24,000. He is not a student. Is
Bob eligible to claim the Retirement Savings
Contribution Credit?
Pub 4012, Tab G-6
Practice #1: Answer
Bob, age 48, contributed $600 to an IRA in
2013. During the year, he worked full-time and
had an AGI of $24,000. Is Bob eligible to
claim the Retirement Savings Contribution
Credit?
Yes: Bob contributed to an IRA, meets the age
and AGI limits, is not a dependent and is not a
full-time student.
Elderly & Disabled Credit: Schedule R
• Taxpayer is
 Over 65 AND/OR
 Retired and on disability benefits before the
mandatory retirement age
• Elderly are seldom eligible because of income limits.
• Mandatory retirement age is set by a taxpayer’s
employer.
• TaxWise automatically calculates this credit on a
Schedule R.
Tab G-11 in Pub 4012
Schedule R in TaxWise
• TaxWise will calculate this credit if the date of
birth is provided.
• Be sure to include the taxpayer’s Social
Security benefits, regardless of their
taxability, to ensure the calculation is correct!
Line 59b: Repayment of First-time Homebuyers
Credit (Form 5405)
• Individuals who took $7,500 credit in 2008 to buy
a home had to begin to repay in 2010
• At least $500 (1/15 of that owed) has to be paid
and reported in “Additional Taxes” section on Line
59b
This is out of scope for Basic Volunteers. An
Impact Staff or Advanced certified volunteer
must prepare this at the tax site.
Training Outline: B Session
• 1) Miscellaneous Credits
• 2) Form 8888
PRACTICE EXERCISE: BRANCH
• 3) Alabama Return
• 4) New Topics on 2013 IRS Basic Certification Exam:
Retirement Income
• 5) New Topics on 2013 IRS Basic Certification Exam:
• 6) New Topics on 2013 IRS Basic Certification Exam:
Itemized Deductions
• 7) New Topics on 2013 IRS Basic Certification Exam: Higher
Education Expenses (Credits & Deductions)
• 8) Volunteer Requirements and Standards of Conduct Test
• 9) Intake/Interview & Quality Review
Refunds
• Taxpayers can choose to receive their refund
either by check or direct deposit
• Checks take 6-8 weeks to be mailed.
• Electronic deposits will be made in 1-2 weeks.
• Remind taxpayers that they can choose to
allocate part of their refund to order savings
bonds.
Save Your Refund
• For every $50 in bonds a taxpayer invests in
savings bonds or places in other savings
accounts, he/she receives a chance to win a
cash prize at the end of tax season or to kick
off the season next year!
01
2009
123-45-6789
John Q. Saver
123 Main Street
Anywhere, WA 99000-0000
OR Jen Saver
:C000090007 :04
000000000000
FRB-MPLS
04-15-07
2
C000000000
I
Barriers to Savings
1. 20% of households earning less than
$30,000 do not have any bank accounts
1. Saving is a challenge with low income and
pressing financial needs
1. Convenience/Automation have a huge
influence on rates of saving across income
levels
We can lower the barriers to
saving
1. Savings bonds are an important savings tool
for “unbanked” households
2. Prize-Linked Savings programs work! And
they work when you, as the preparer, share
information and ASK.
3. Tax time is a unique time to save – large
refund amount and convenient savings
opportunity.
Bond Order Process
• Our Role
• Explain opportunity - describe savings bonds &
chance to order at tax site AND share information
about the Save Your Refund prize-linked savings
program
• Seek decision – ask client to decide if, how much, &
for whom to order bonds
• Process order – complete IRS Form 8888
The Government will mail a physical bond to the
taxpayer at the address listed on the return.
Savings Bonds
• All taxpayers can buy bonds for
• Themselves
• And/or 2 other people (kids, grandkids, spouses,
nieces/nephews, godchildren, etc.)
• How it works
• Taxpayer needs only name of gift recipient
• Client & gift recipient will be listed on bond as coowners
• Either party may redeem bond
Rate of Return Comparison
Rate of Return
Annual Fees
Minimum to Open
Rate Fixed
Minimum Holding
Period
Early Redemption
Penalty / Forfeiture
ChexSystems
(Application)
May Buy as a Gift
Savings
Account*
.17%
$0
$100
1 Year CD*
.73%
$0
$1,000
Series I U.S.
Savings Bond
2.20%
$0
$50
Adjusts biannually
No
Yes
None
1 year
1 year
None
All interest
earned to
withdrawal date
3 months interest
(redemptions
within 5 years of
purchase)
Yes
Yes
No
No
No
Yes
Form 8888 in Taxwise
1) Click Add in the Loaded Forms Menu
2) Type in 8888 and click to add
3) Fill out Part II with the recipient(s) name and
amount first.
Form 8888 in Taxwise
4) Then fill out either Part I (Direct Deposit) or Part III
(Paper Check). Note that a taxpayer may also
choose to split their refund between multiple bank
accounts (e.g. checking and savings).
Form 8888 in Taxwise
5) Subtract the amount of bonds purchased from the
total refund to get the allocation.
Total refund – bond purchases = allocation
(Total on Line 8 must equal the Federal refund)
Important Note
• If a taxpayer invests in savings bonds or splits
their refund, ONLY fill out the routing and
account numbers on the Form 8888.
• If a taxpayer does not invest in savings bonds
or split their refund, fill out the routing and
account numbers on the main page and on line
74.
Save Your Refund – Instructions to
Enter
• 1) Complete Form 8888 in TaxWise
• 2) Fill out the Save Your Refund Entry Form
• You must fill out all blanks; be sure to complete both
sides of the form!
• Don't forget the section "For SaveFirst use only“
• 3) Print an extra copy of the 8888 from TaxWise
and attach to the SYR entry form
• File with taxpayer’s Intake/Interview paperwork at site
Locating a Savings Bond
• To check the status of a bond purchase for this
year: go to Where’s My Refund on IRS.gov or
call 1-800-829-1954.
• If the taxpayer needs information about a savings
bond purchase from a previous tax year: contact
the Treasury Retail Securities Site at 1-800-2452804.
Direct Deposit
• Encourage taxpayers to use direct deposit
• But, refunds will be delayed 4-6 weeks if the
routing and account numbers are not valid
• Refunds may only be deposited into their own
accounts
• Refunds can be deposited in up to three
accounts
Direct Deposit
• Routing number (9 digits): can look up online
• Account number: do not include check number!
• Do NOT include spaces or hyphens!
Refunds: Electronic Deposit
• If a mistake is made that increases the amount
of the refund, the IRS will send a letter
explaining the changes in the adjustment.
• If a taxpayer owes debts (child support or
student loans), the IRS will decrease the refund
after you E-file it.
• Encourage taxpayers to still E-file
• We do not have access to any of this information!
Tax Due
• To avoid a penalty, taxpayers with an amount
owed must file their return by the due date
even if they cannot pay the full amount with
the return!
• Advise taxpayers to pay as much as possible
by the due date.
• Once taxpayers receive a notice, they can pay
the remaining amount in full or choose another
payment option if needed.
Tax Due
• Payment options:
• Pay by check or money order with Form 1040-V
(Payment Voucher)
• Pay by direct debit from their bank account on a date
that they choose (up to the due date)
• Pay with a credit or debit card (convenience fee)
• Taxpayers will be advised of the amount of this fee when
they call the interactive voice response system
• Electronic Federal Tax Payment System (EFTPS)
Even if taxpayers owe money, encourage them to Efile. Payments just need to be made by the due date!
Electronic Federal Tax Payment System
• File Form 9465, Installment Agreement, to pay
the tax in monthly installments
• Fee plus interest and penalties
• File an Online Payment Agreement (OPA)
• Pay in full within 60/120 days with no fee
• Interest and penalties after the due date
Undue Hardship
• Taxpayers who can show they will have a
substantial financial difficultly if they pay their
tax on the due date are considered to have
unique hardship.
• Can request an extension by filing Form 1127
by the due date
• Advise them to visit or call the local IRS office
• Undue hardship is MORE than inconvenience!
Estimated Tax Penalty
• Out of Scope for all VITA volunteers!
• Calculated on Form 2210 and reported in the
Amount You Owe section on Form 1040
• Taxpayers must make estimated tax payments
if they expect to owe at least $1,000 and
their withholding and credits will be less than
the smaller of:
• 90% of the tax shown on the current return
• 100% of the tax shown on the prior year return
Estimated Tax Penalty
• If Form 2210 appears in TaxWise, leave the form
and leave the estimated tax penalty line of Form
1040 blank.
• Do NOT send in Form 2210 with the paper return! Print
and give to the taxpayer!
• Hint: Line 9 of Form 2210 should default to $0 to
prevent preparers from calculating the estimated
tax penalty. If it is not “0”, change to “0.”
• Advise taxpayer to call or visit the IRS office if
they have an estimated tax penalty.
• IRS will calculate the penalty and send a bill.
Tax Due
• To avoid having tax due next year:
• Adjust withholding on Form W-4 (from employer) or
Form W-4P (pension)
• Taxpayers should submit a revised form when there
is a change in life events (marriage, child, etc.)
• Publication 919
• Make quarterly estimated tax payments (Form
1040-ES)
• Out of Scope for VITA!
Training Outline: B Session
• 1) Miscellaneous Credits
• 2) Form 8888
PRACTICE EXERCISE: BRANCH
• 3) Alabama Return
• + Finishing a Return
• 4) New Topics on 2013 IRS Basic Certification Exam: Retirement
Income
• 5) New Topics on 2013 IRS Basic Certification Exam:
• 6) New Topics on 2013 IRS Basic Certification Exam: Itemized
Deductions
• 7) New Topics on 2013 IRS Basic Certification Exam: Higher
Education Expenses (Credits & Deductions)
• 8) Volunteer Requirements and Standards of Conduct Test
• 9) Intake/Interview & Quality Review
Practice Exercise: Branch
• Complete the Retirement Savings Contribution
Credit, Form 8888
Training Outline: B Session
• 1) Miscellaneous Credits
• 2) Form 8888
PRACTICE EXERCISE: BRANCH
• 3) Alabama Return
• 4) New Topics on 2013 IRS Basic Certification Exam:
Retirement Income
• 5) New Topics on 2013 IRS Basic Certification Exam:
• 6) New Topics on 2013 IRS Basic Certification Exam:
Itemized Deductions
• 7) New Topics on 2013 IRS Basic Certification Exam: Higher
Education Expenses (Credits & Deductions)
• 8) Volunteer Requirements and Standards of Conduct Test
• 9) Intake/Interview & Quality Review
Alabama Return
Who Must File
Full Year
Residents
Single
MFS
HoF
MFJ
Gross Income
$4,000
$5,250
$7,700
$10,500
Part Year
Residents
Single
MFS
HoF
MFJ
Gross Income
$4,000
$5,250
$7,700
$10,500
Source: http://ador.alabama.gov/incometax/itfaq01.htm
Creating a Return
On the Main Information page in TaxWise,
type AL into the appropriate blank under
state information so it creates an AL-40 Form.
 Even if the taxpayer is a part-year resident or
nonresident in another state, do not input that
state into TaxWise, as it may create out-ofstate tax forms that we are not qualified to
file.

Filling Out a Return
Fill out the Federal return first – most of the
information that you need for the AL return will
carry over.
 When you have finished the federal return,
pull up the AL-40, page 1.
 Scroll to the bottom and click “yes” to e-file
the return.

Personal Exemptions
Based on Filing Status
• TaxWise calculates automatically
• Single and MFS: $1,500
• HoF and MFJ: $3,000
• Dependents: Taxpayers receive a personal
exemption in AL even if they CAN be claimed as
a dependent by someone else.
Dependents
Under Alabama law, a dependent is an individual
other than the taxpayer and his or her spouse who
received over 50% of his or her support from the
taxpayer during the year and is also related to the
taxpayer in one of the following relationships:
*Alabama's dependency laws state that a qualified person
must be the taxpayer's son, daughter, step-son, stepdaughter, legally adopted child, parent, grandparent,
grandchild, brother, sister, step-brother, step-sister, stepmother, step-father, mother-in-law, father-in-law, brother-inlaw, sister-in-law, son-in-law, father-in-law, and IF RELATED
BY BLOOD, uncle, aunt, nephew, niece
Dependents
• Most federal dependents also qualify on the
state level EXCEPT:
• Foster children
• Non-related individuals who lived with the
taxpayer for the entire year*
You cannot claim a foster child, friend, cousin,
yourself, or your spouse as a dependent on your
Alabama income tax return.
Dependents
Determining AL Filing Status
• A taxpayer’s filing status is the same on the AL
return as it is on the federal return, except for
Qualifying Widow(er) and Head of Household.
• QW does not exist in Alabama
• TaxWise will automatically choose Head of Family on the
AL return
• Taxpayers can only file Head of Family on their AL
return if:
• They are unmarried or legally separated at the end of
2013 AND
• Their qualifying person is NOT a foster child
• Same-sex married couples must file Single or Head
of Family on their Alabama return
AL Filing Status
Income
• TaxWise automatically pulls the income from
the Federal return to the state return
• However, TaxWise recognizes that there are
several types of income that are taxable
federally, but not in Alabama. It will not
transfer these amounts to the state return.
Non-taxable Income
• Types of non-taxable income that are
not carried over to the AL return:
• Unemployment Compensation
• Social Security Benefits
Though not taxable, amounts these amounts must be
reported in the appropriate blanks on the AL-40,
Page 2.
Standard Deduction
• In Alabama the standard deduction depends on the
filing status and AGI.
Filing Status
Deduction Range
Single
$2000-$2500
Head of Family
$2000-$4700
Married Filing Jointly
$4000-$7500
Married Filing Separately
$2000-$3750
Itemized Deductions
• Because the standard deduction is so
much lower on the state level than the
federal level, many individuals may
itemize on the state return, even if they
don’t itemize on the federal level.
Talk to your supervisor if your taxpayer
wants to itemize deductions to reduce
their state tax liability.
Finishing the AL Return
• Questions at the bottom of the AL 40, page 2:
1) Did the taxpayer file an AL return during the
previous tax year?
2) Who is the taxpayer's current employer?
3) Does the taxpayer have any income on their
federal return that is not on their state return?
4) Paying a Balance/Receiving a Refund
1) Previous Year AL Return
• Did the taxpayer file an AL return for the
previous tax year?
• Answer YES or NO
• If NO, provide an explanation:
• Taxable income too low
• Lived in a different state
• Neglected to file
2) Current Employer Information
• Who is the taxpayer's current employer?
• If multiple, select the W-2 with the higher
amount of wages.
• Need information from the taxpayer’s W-2
• Enter the copy number of the W-2 for both the
taxpayer and spouse
• If the taxpayer is currently unemployed, leave “0”
in the blank
2) Current Employer Information
3) Non-taxable Income
• Does the taxpayer have any income on
their federal return that is not on their
state return
• Unemployment Compensation
• Social Security Benefits
• You must input this information manually on the
AL-40, Page 2.
3) Non-taxable Income
Answer “Yes” or “No”
Fill out the Description and Amount
4) Paying a Balance/Receiving a Refund
• Taxpayers can have their refunds directly
deposited or they can receive a check.
• Taxpayers can have their liabilities directly
debited or they can send a check.
• If a taxpayer wants to send a check, TaxWise will
generate a voucher to send along with it.
• Choose the correct option and ONLY enter the
account information onto IF:
• Taxpayer wants the state refund deposited to a
different account
• If taxpayer purchases savings bonds, you will need to
enter the account information again on the AL return.
• Taxpayer requests a direct debit
4) Paying a Balance/Receiving a Refund
Training Outline
• 19) Finishing the Return
• 20) Volunteer Standards of Conduct
• 21) Additional Practice Exercises
Tax Preparation Process
• Part 1: Preliminary Interview
• Part 2: Preparing the Return in TaxWise
• Part 3: Quality Review
• Part 4: Finishing the Return
• Part 5: Filing the Return
Tax Preparation Process
• Part 1: Preliminary Interview
• Taxpayer completes pages 1 and 2 of Intake/Interview
Form
• Verify photo ID(s) & Social Security cards(s)
• Ensure taxpayer cannot be a dependent of anyone else (Pub
4012: C-4 to C-6)
• Determine dependents (Pub 4012: C-3 to C-7)
• Complete part of Section II “To be completed by a Certified
Volunteer Preparer”
• Determine filing status (Pub 4012: B-1 to B-3)
• REVIEW pages 1-2 of I/I Form
• Collect necessary forms
• “Yes” or “No” answer for all questions on pg 2
• Write your full name at the bottom of page 3
Tax Preparation Process
• Part 2: Preparing the Return in TaxWise
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•
•
•
Do not carry forward info from a prior year!
Interview: enter Filing Status through dependents
“Switch to Tax Forms”
Fill out Main Info Form and Dependent Form(s)
Complete the 1040 Form line by line, linking to
appropriate forms
• Complete AL 40 Pg 1 and Pg 2
• Complete the forms: Gen Use, Gen Disclosure and Prep
Use
• Review the entire return and take care of any red forms
Preparing the Return
Complete in the Form 1040:
• 1-5: Filing Status
• 6: Dependents List and Total # of Exemptions
• 7: Wages, salaries, tips (Link to W2)
• 8: Interest (Link to Sch B  1b  Int Stmt)
• 9: Dividends (Link to Sch B  5a  Div Stmt)
• Answer question in Box under Line 9 about state
refund and itemized deductions last year
Preparing the Return
Complete in the Form 1040:
• 19: Unemployment (Link to 1099G)
• 20a: Social Security Benefits (Link to 1040
Wkt1)
• 21: Other Income/Gambling (Link to 1040
Wkt1 to W2G or 1099-MISC)
• 37: AGI (TW calculates)
• 38: AGI (TW calculates)
Preparing the Return
Complete in the Form 1040:
• 40: Standard Deduction (TW calculates)
• 42: Exemptions (TW calculates)
• 48: Child/Dependent Care Expenses (Link to
2441)
• 50: Retirement Savings (Link to 8880)
• 51: Child Tax Credit (TW calculates)
• 53: Credit for the Elderly/Disabled (Link to Sch
R)
Preparing the Return
Complete in the Form 1040:
• 62: Federal Income Withheld (CHECK)
• 64a: EIC (Sch EIC & Sch EIC Wkt)
• 65: Additional Child Tax Credit (TW calculates)
• 74: Amount to be refunded (Add 8888 for Savings
Bond Purchase)
• 76: Amount you owe
Main Info Form
• In the PIN section, have each taxpayer enter a
5-number pin.
General Use Form
General Disclosure Form
Prep Use Form
Identity Protection Pin
You’ll enter this on the taxpayer’s
return at the bottom of the Main
Information sheet. This won’t affect
the taxpayer’s return in any way,
but it must be entered or the return
will be rejected when it is
submitted. This pin ensures that no
one fraudulently files their return
this year.
Common Errors
• Claiming children who are not the
taxpayer’s qualifying children
• Selecting the incorrect filing status
• Submitting returns with incorrect social
security numbers
Line 62: Withholding
• Check all W-2s and 1099 Forms and make
sure the total amount matches!
• TaxWise automatically calculates this amount!
Tax Preparation Process
• Part 3: Quality Review
Tax Preparation Process
• Part 4: Finishing the Return
• Make sure the preparer and quality reviewer names are
listed on the I/I Form
• Note the status of the return on the I/I Form
• Print return (1 if E-Filing & 2if paper filing)
• Assist with payment (voucher, addressing envelope…)
• Advise taxpayers they are ultimately responsible for all
information provided
• Taxpayer and spouse must sign and date federal and
Alabama returns and keep for their records
• File I/I Form (and Save Your Refund paperwork, if
applicable) in filing box
• Do NOT keep any personal documents!
Training Outline: B Session
• 1) Miscellaneous Credits
• 2) Form 8888
PRACTICE EXERCISE: BRANCH
• 3) Alabama Return + Finishing the Return
• 4) New Topics on 2013 IRS Basic Certification Exam:
Retirement Income
• 6) New Topics on 2013 IRS Basic Certification Exam:
Higher Education Expenses (Credits & Deductions)
• 7) New Topics on 2013 IRS Basic Certification Exam:
Itemized Deductions
• 8) Volunteer Requirements and Standards of Conduct Test
• 9) Intake/Interview & Quality Review
Additional Topics – Out of Scope
at Tax Site
• IRS changed VITA certification levels
• 1st Year SaveFirst Volunteers maintain previous
Basic Certification standard
• Some more advanced topics on your 2013 IRS
Basic Certification test, but you will not
prepare at the tax sites
• We will briefly review now…
Additional Topics for 2013 VITA
Basic Exam –
Out of Scope at Tax Site
1. IRAs/Pensions
2. Higher Education Expenses
3. Itemized Deductions
Use Handout: “Helpful Tips for New Topics
on 2013 IRS Basic Certification Exam”
Additional Topics – Out of Scope at Tax Site
IRAs/PENSIONS
• Retirement income from an Individual Retirement
Account (IRA) or Pension reported on 1099-R
• From Form 1040, link from Line 16 Pension to a
Form 1099-R
• Gross Distribution
• Taxable Amount
• Boxes in line 2b
• Taxable Amount Not Determined
• Total Distribution
• Federal Income Tax Withheld
• Distribution Code(s)
• Total Employee Contributions
Additional Topics – Out of Scope at Tax Site
IRAs/PENSIONS
• Practice exercise: Sarah Brown
• See Handout “Helpful Tips for New Topics on 2013
IRS Basic Certification Exam”
• Check Line 15/16 on 1040 Page 1
• Find Additional Tax on IRAs, Other Qualified
Retirement Plans, etc.
• Form 1040 > Page 2 > Other Taxes section > Line
58
• Form W4-P: Withholding Certificate for
Pension or Annuity Payments
Additional Topics – Out of Scope at Tax Site
IRAs/PENSIONS
• On Your Own: Review the Sarah Brown
exercise in your “Helpful Hints” handout and
answer the questions for exercises 1 and 2.
Additional Topics – Out of Scope at Tax Site
IRAs/PENSIONS
Review answers together:
• 1.1) What is the amount that appears on Form 1040 Line 16b Taxable Amount?
1500
• 1.2) What is the amount of Total Earned Income on Form 1040 page 1? 0
• 1.3) What is the amount of Total Income on Form 1040 Line 22? 1500
• 1.4) What is the amount of additional tax on IRAs, other qualified retirement
plans, etc. on Form 1040 Line 58?
• 1.5) What is the amount of Federal income tax withheld on Form 1040 Line 62?
300
• 1.6) Sarah must pay a 10% additional tax on the distribution from her 401(k)
because she is under 59 ½ years old and does not qualify for an exception.
TRUE
• 2.1) A taxpayer receives an annual distribution from their retirement account but
does not have any tax withheld so they always has a balance due every year.
He or she can submit a Form W4-P to have tax withheld on his or her pension.
TRUE
Additional Topics for 2013 VITA
Basic Exam –
Out of Scope at Tax Site
1. IRAs/Pensions
2. Higher Education Expenses
3. Itemized Deductions
Use Handout: “Helpful Tips for New Topics
on 2013 IRS Basic Certification Exam”
Additional Topics – Out of Scope at Tax Site
HIGHER EDUCATION EXPENSES
Tuition & Fees Deduction
American Opportunity Credit
Lifetime Learning Credit
Up to $4,000 deduction
Up to $2,500 credit per eligible student
Up to $2,000 credit per return
Available for all years
Available for the 1st 4 years of college
Available for all years
Student does not need to be pursuing a degree
or credential
Student must be pursuing a degree or
recognized education credential
Student does not need to be pursuing a
degree or credential
Available for one or more courses
Student must be enrolled at least half time
Available for one or more courses
Felony drug conviction does not factor
No felony drug conviction on student’s
record
Felony drug conviction does not factor
Expenses include only tuition and fees (no
books)
Expenses include tuition, fees, and required
course materials (books
Expenses include only tuition and fees (no
books)
Tuition and Fees Expenses
• Tuition amounts paid by the taxpayer are
reported on a 1098-T and can be entered as an
adjustment or a credit.
• Only out-of-pocket expenses can be
claimed; you must subtract amounts paid
with scholarships and grants.
Form 1098-T
Education Credits
• Offset higher education expenses paid during
the year for a taxpayer, spouse, or a
dependent
• Two types of credits available:
• American Opportunity Credit
• 40% (up to $1,000) is refundable
• Lifetime Learning Credit
• Nonrefundable credit
Education Credits: Eligibility
• Filing status cannot be MFS
• Cannot be claimed as a dependent on
someone else’s return
• Qualified expenses: tuition and fees
required for enrollment
• Accredited institution
• CAN claim on the basis of expenses paid
with student loans
Expenses That Do Not Qualify
• Room and board
• Insurance
• Medical expenses (including student health
fees)
• Transportation costs
• Personal, living or family expenses
• Expenses for a course involving sports,
games or hobbies, unless it is required for
the degree/certificate
Education Credits: Dependents
• When the student can be claimed as a
dependent:
• Taxpayer must claim credit if taxpayer claims the
exemption.
• Student must claim credit if taxpayer does not
claim exemption.
• If the taxpayer claims the dependency
exemption, any amount paid by the student is
considered to have been paid by the
taxpayer.
Qualified Expenses for Credit
• American Opportunity (Hope) Credit
• Qualified tuition and related expenses up to $4,000 per
eligible student
• Includes expenses for course materials (books,
supplies, and equipment needed for a course of study,
whether or not they were purchased from institution)
Link: Line 49  8863 Pg 2
Qualified Expenses for Credit
• Lifetime Learning Credit
• Expenses include only tuition and fees
• Course-related books, supplies and fees are
included ONLY if they must be paid to the institution
as a condition of enrollment
Link: Line 49  8863 Pg 2
Education Credits: No Double Benefits
• The taxpayer CANNOT claim:
• Both the American Opportunity (Hope) and
Lifetime Learning credits for the same qualified
tuition expenses
• A credit and the adjustment
• Expenses paid with a tax-free scholarship,
grant, or other assistance, including Pell grants
(in other words, the taxpayer must subtract
these scholarships from the total expenses
before claiming either credit)
Determining the Amount of the Credit
• Review the list of qualifying students and
expenses and decide which credit is best.
• Enter each qualifying student and SSN on
Form 8863
• Enter the students’ qualifying expenses
• Include only qualified expenses
• Are reduced by untaxed benefits (scholarships,
grants, etc.)
• Are reduced by amounts paid in previous years
• Do not exceed the limit for the credit
Education Credits in TaxWise
Education Credits in TaxWise
• Line 23:
• Yes  Lifetime Learning (Line 31)
• No  American Opportunity (Line 24)
Education Credits in TaxWise
OR
Practice Exercise: Marsha Brady
• “Helpful Tips” packet
• Answer exercise 3 questions on your own using
packet
Answers: Marsha Brady Scenario
• 3.1) Which education benefit is Marsha not eligible to take?
• a) American opportunity credit
• 3.2) Marsha is eligible to claim the American Opportunity Credit.
• False
• 3.3) Which of the following are Marsha’s qualified educational
expenses for the lifetime learning credit?
• a) $1,250 in tuition
• 3.4) How much does Marsha have in qualified educational
expenses for the lifetime learning credit?
• $1,250
Additional Topics for 2013 VITA
Basic Exam –
Out of Scope at Tax Site
1. IRAs/Pensions
2. Higher Education Expenses
3. Itemized Deductions
Use Handout: “Helpful Tips for New Topics
on 2013 IRS Basic Certification Exam”
Some Qualifying Expenses
Below is a list of some of the qualifying expenses that may be
included on the taxpayer’s return if they itemize.
• Unreimbursed doctor bills for the taxpayer, spouse, and
dependents
• Unreimbursed prescription drugs for the taxpayer, spouse,
and dependents
• Donations to a church or eligible nonprofit
• Gambling losses (up to the amount of winnings, i.e. if you
had $500 in losses but you only had $300 in winnings, you
can include only $300 in losses in your itemized deduction
• Mortgage Interest
• Mortgage Insurance Premiums
• Real Estate Tax paid
*This is NOT an exhaustive list.
Expenses NOT eligible for itemized
deductions
• A taxpayer CANNOT claim the following
expenses:
• Interest on a personal loan or credit card
• Medical expenses that have already been
reimbursed
• Monetary donation to a neighbor in need
Medical Expenses in TaxWise
(Click on the A Detail in the Loaded Forms Menu)
Enter in the amounts for:
-
-
Medical miles
Insurance premiums
paid
Medicare (carries
over from 1040
Wkt1)
Other medical
expenses
(prescriptions,
glasses, etc.)
Charitable Contributions in TaxWise
(Click on the A Detail in the Loaded Forms Menu)
Enter in the amounts for:
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Charitable miles
Charitable cash
contributions
Uniforms required for
service
FMV of other than cash
contributions
Miscellaneous Deductions in TaxWise
(Click on the Sch A in the Loaded Forms Menu)
Enter the amounts and descriptions
for:
- Miscellaneous: gambling losses
from W2-G (Line 28)
- Enter losses on bottom of W2G when you enter it as income.
Losses will automatically
transfer to this form from the
W2-G
Taxes Paid in TaxWise
(Click on the Sch A in the Loaded Forms Menu)
Enter in the amounts for:
-
City/county real estate
taxes (6)
Personal property taxes
(7)
Ad valorem tax, make
sure to subtract $24.50
(amount of car tag)
before entering (8)
Home Mortgage Interest
(Interest, Points and Premiums may be deductible.)
Home Mortgage Interest in TaxWise
(Click on the Sch A in the Loaded Forms Menu)
Enter the amounts for:
-
Home mortgage
interest and points
(10)
-
Mortgage insurance
premiums (13)
**Link to a Scratch Pad
for multiple mortgages.
Practice Exercise: McGregor
• USE TAXWISE
• On your own: Prepare Interview section,
answer questions on the 8880, Schedule EIC,
and Dependents worksheet; and enter all
income from Ewan during the year.
When you finish entering this information, we
will prepare the itemization and education
credits together.
Practice Exercise: McGregor
• Together: prepare itemization and education
credits
Practice Exercise: McGregor
Carl’s Higher Education Expenses
• Carl is Ewan’s Qualifying Child
• Can Ewan claim the educational expenses paid for
Carl at River College?
• Which education credit is Ewan eligible for?
•
•
•
•
•
Carl is attending an eligible institution
Carl is enrolled at least half-time
Carl is in his first year of college
Carl is pursuing a degree
Carl does not have a felony conviction
Practice Exercise: McGregor
Carl’s Higher Education Expenses
• Carl is Ewan’s Qualifying Child
• Can Ewan claim the educational expenses paid for
Carl at River College? YES
• Which education credit is Ewan eligible for?
•
•
•
•
•
Carl is attending an eligible institution
Carl is enrolled at least half-time
Carl is in his first year of college
Carl is pursuing a degree
Carl does not have a felony conviction
Practice Exercise: McGregor
Carl’s Higher Education Expenses
• Carl is Ewan’s Qualifying Child
• Can Ewan claim the educational expenses paid for Carl
at River College? YES
• Which education credit is Ewan eligible for?
American Opportunity Credit
•
•
•
•
•
Carl is attending an eligible institution
Carl is enrolled at least half-time
Carl is in his first year of college
Carl is pursuing a degree
Carl does not have a felony conviction
Practice Exercise: McGregor
• Which of Carl’s expenses are qualifying expenses for
the American Opportunity Credit?
• Course-Related Books: $900
• Room and Board: $7,000
• Tuition and Fees from Form 1098: $6,000
• Carl received scholarship or grant money. You must subtract the
scholarship/grant amount from the tuition and fees amount to
determine how much was paid out of pocket.
• $6,000 - $5,000 = $1,000
• Out of Pocket Tuition and Fees: $1,000 qualifying expense for
Education Credit
• Add up Carl’s total qualified expenses for the
American Opportunity Credit: _____
Practice Exercise: McGregor
• Which of Carl’s expenses are qualifying expenses for
the American Opportunity Credit?
• Course-Related Books: $900 YES
• Room and Board: $7,000 NO
• Tuition and Fees from Form 1098: $6,000
• Carl received scholarship or grant money. You must subtract the
scholarship/grant amount from the tuition and fees amount to
determine how much was paid out of pocket.
• $6,000 - $5,000 = $1,000
• Out of Pocket Tuition and Fees: $1,000 qualifying expense for
Education Credit YES
• Add up Carl’s total qualified expenses for the
American Opportunity Credit: $1,900
Practice Exercise: McGregor
• Prepare itemized deductions in TaxWise
together
Practice Exercise: McGregor
• Answer questions 4.1 – 4.6 on your own. We
will review the answers when you are finished.
Practice Exercise: McGregor
• 4.1) What is Ewan’s total tax deduction on Schedule
A, line 9? $______
• 4.2) What is Ewan’s total interest deduction on
Schedule A, line 15? $________.
• 4.3) How should Ewan report his lottery activities?
• 4.4) To compute the American opportunity credit,
which of Carl’s following expenses qualify?
• 4.5) Does Ewan qualify for the retirement savings
contributions credit?
• 4.6) What is the refundable amount of Ewan’s
American opportunity credit from the payments
section of Form 1040, page 2? $________.
Training Outline: B Session
• 1) Miscellaneous Credits
• 2) Form 8888
PRACTICE EXERCISE: BRANCH
• 3) Alabama Return + Finishing the Return
• 4) New Topics on 2013 IRS Basic Certification Exam:
Retirement Income
• 6) New Topics on 2013 IRS Basic Certification Exam: Higher
Education Expenses (Credits & Deductions)
• 7) New Topics on 2013 IRS Basic Certification Exam:
Itemized Deductions
• 8) Volunteer Requirements and Standards of Conduct Test
• 9) Intake/Interview & Quality Review
Volunteer Etiquette
• Follow the Quality Site Requirements.
• Conduct a thorough interview.
• Be sensitive to the taxpayer.
• Keep personal information confidential.
• Do only what you are trained and certified to
do.
Ethical Violations
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An ethical violation is a knowing breach of any of the
volunteer standards of conduct
All VITA volunteers must undergo training on volunteer
standards of conduct to avoid ethical violations
The IRS uses reviews called SPEC QSS to determine
the accuracy rate and possible violations at tax sites.
Ethical Violations

Consequences of intentional violations impact
both the volunteer and the organization


The volunteer may be removed from VITA and face
criminal investigation
SaveFirst might lose its IRS grants and the EFIN
number that allows it to operate tax sites
• NOTE: If you make an accidental mistake, you are
protected as a volunteer by the VITA program.
And ultimately, taxpayers are responsible for the
information that is entered on their return.
Quality Site Requirements


Every return must be prepared by a volunteer with
the proper level of certification needed for that
return. Returns should be assigned after the level of
certification needed and the certification level of the
preparer have been determined and match up.
Every volunteer has to use the Intake/Interview sheet
in preparing a return.
Quality Site Requirements


The volunteer must verify the taxpayer has
photo ID, social security cards for
themselves and any dependents they are
claiming, and all income documents as soon
as possible.
Taxpayers should be informed that they
are ultimately responsible for any
information they gave us.
Other Violations


VITA is a volunteer service. We can not accept cash,
solicit donations, or have a donation/tip jar in the
entry, waiting, tax preparation, or quality review
areas of the tax site.
Never use or keep a taxpayer's confidential
information for personal gain. This includes soliciting a
personal business, offering to receive and turn over a
refund for a taxpayer without a bank account, or
even asking a taxpayer on a date if you notice they
are filing single.
Other Violations
• If you feel a taxpayer is providing
fraudulent information, you are not
required to complete their return.
• Never knowingly prepare a fraudulent
return.
• Talk to your supervisor (discretely) if you
are concerned about a taxpayer’s return or
about information they are providing.
Standards of Conduct Test
• All volunteers must complete and pass the
Volunteer Standards of Conduct Test before
volunteering at the tax site
• Take the test (in your training materials), and
we’ll grade it now!
• PUT YOUR NAME ON THE TEST!
• Open-book, open-note; refer to the training
materials as you complete the exam
• Turn in to your trainer when you finish
Training Outline: B Session
• 1) Miscellaneous Credits
• 2) Form 8888
PRACTICE EXERCISE: BRANCH
• 3) Alabama Return + Finishing the Return
• 4) New Topics on 2013 IRS Basic Certification Exam:
Retirement Income
• 6) New Topics on 2013 IRS Basic Certification Exam: Higher
Education Expenses (Credits & Deductions)
• 7) New Topics on 2013 IRS Basic Certification Exam:
Itemized Deductions
• 8) Volunteer Requirements and Standards of Conduct Test
• 9) Intake/Interview & Quality Review
Intake/Interview & Quality
Review Sheet
• Form 13614-C (October 2013)
• All VITA programs are required to use this
sheet for every tax return filed at the tax site.
Assuring a Quality Service and
Accurate Return
• Taxpayers using services offered through the Volunteer Tax
Assistance (VITA) and Tax Counseling for the Elderly (TCE)
Programs should be confident they receive quality service.
This includes having an accurate tax return prepared.
• A basic component of preparing an accurate return begins
with listening to the taxpayer and asking the right questions.
• Form 13614-C, Intake/Interview & Quality Review Sheet, is
a tool designed to help the volunteer ask the right questions.
When used properly, this form effectively contributes to
accurate tax return preparation.
Using this Form Completely and
Appropriately
• The IRS conducts oversight to ensure that EVERY
part of the form is being used appropriately
and completely during the interview with the
taxpayer and while preparing their return.
• The IRS requires compliance with use of this
form to ensure high quality tax returns for our
VITA program.
Required for Use by IRS VITA
Sites
• An important tool for accuracy and due
diligence!
• Must be completed by (or with) the taxpayer.
• Will be used to conduct the Quality Review
process.
• Must be kept at tax site for site records.
Intake/Interview Form is a Huge
Asset to You
• Provides an extra record for you to doublecheck information on the tax return in TaxWise
and note things the taxpayer forgets to
mention when speaking with you
The Intake Process: Completing Form
13614-C
• In most cases, the taxpayer completes pages 1
and 2 of the Intake Interview Form (Form
13614-C) in the waiting room before sitting
down with you, the tax preparer.
• Provide assistance as needed
Complete an Intake/Interview Form
for EVERY Return
• We MUST have an intake/interview form on
file for EVERY return filed at our tax sites.
The Intake Process: Tax Return and
Volunteer Certification Levels
 It is a violation of our VITA Grant and IRS Compliance and
your Volunteer Standards of Conduct Agreement to file a
tax return that is out of scope of the VITA tax site.
• At SaveFirst sites, to ensure all returns are in-scope
for VITA:
• Consult the Scope of Service Chart – at every tax station,
in the Pub 4012 Volunteer Resource Guide, and in your
Site Coordinator Handbook
• If a topic seems complicated or unfamiliar to you, doublecheck the Scope of Service Chart to be sure it is listed in
scope.
• Sometimes this determination may be unclear. If you are
unsure, talk to your Site Coordinator.
The Intake Process: Tax Return and Volunteer
Certification Levels
• SaveFirst Basic Volunteer Preparers
• Review the 2013-14 SaveFirst Volunteer Scope of
Service Chart for SaveFirst Basic Volunteers
To verify SSN, we can accept: Original or copy of Social Security Card, Letter or
Statement from Social Security Administration, or Medicare Card with “A” after SSN
Congratulations!
• We’ve completed the 2013 SaveFirst Basic Tax
Training!
• Next steps:
• Certification Exam (80% or better, by deadline)
• Serving families at the tax sites
• Sharing information about these services with
families
• 1st-2nd week: Some of you may be asked to help with
marketing to families of children in targeted schools to
ensure they are aware of our services; appx 1-2 hours
during slower times at tax site
• Incredibly valuable in helping us to serve families who need
the services you’ll be offering
2013 Certification
• Complete the 2013 Tax Year Basic Tax
Certification Exam
• In class
• At a testing session
• On your own
• Pass with at least 80% correct
Additional Practice
• Center Practice Exercise in your packet
• Use TaxWise