 Classroom ground rules o Ask when unsure o Do not be disruptive when instructor is teaching o No side conversations: if you have a question ASK o Be respectful to your peers o Turn Cell Phones to silent o Wait for instructor prompt to begin computer work

Https://www.youtube.com/watch?v=UoCP4ePRTzc

5 Step Plan:
1.
As a class we will review Client Notes, and
2.
Intake & Interview Sheet & supporting documents.
3.
Instructor will teach Tax Law – referencing
Pub 4012 and 13614-C
4.
Instructor will show you how to enter information into TaxWise. WATCH!
5.
Now Do! Students will enter information on
TaxWise

As a volunteer in the VITA/TCE Programs, you must:
1. Follow the Quality Site Requirements (QSR).
2. Not accept payment or solicit donations for federal or state tax return preparation.
3. Not solicit business from taxpayers you assist or use the knowledge you gained (their information) about them for any direct or indirect personal benefit for you or any other specific individual.
4. Not knowingly prepare false returns.
5. Not engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other conduct deemed to have a negative effect on the VITA/TCE Programs.
6. Treat all taxpayers in a professional, courteous, and respectful manner.
4961 │ VSOC Quiz │ Volunteer Agreement │ Pub 4012 pg 18

Intake/Interview &
Quality Review
Training
As a VITA volunteer you will also have to complete this training. It covers the following topics:
 The purpose of consistently following a consistent
Intake/Interview and Quality Review process.
 The different sections of Form 13614-C Intake/Interview and
Quality Review Sheet
 The basic steps of a complete:
 Intake Process.
 Interview Process
 Quality Review Process
Publication 5101

Review:
 Practice Lab or TaxWise Instructions
 Link & Learn Taxes Instructions
Instructor: Have class complete Standards of
Conduct certification

Publication 4012 & Form 13614-C
 You will use these consistently when preparing tax returns
 Pull out Intake & Interview sheet 13614-C
 Publication 4012 (spiral bound book)

#1

#1
What you will learn in this scenario:
1.
Who must file
2.
Filing Status
3.
Exemptions: personal exemption
4.
Intro into income- taxable v. nontaxable
 W2, Unemployment Income, Interest income
5.
Standard deduction
6.
Refundable and nonrefundable credits
 EITC

Let’s review Olivia’s Information:
 Pull out Interview Notes
 Pull out Intake & Interview sheet 13614-C

 Olivia is single
 Olivia did not itemize her deductions last year
 Olivia had health coverage the entire year through her father’s insurance
 If Olivia is due a refund, she wants her refund to be directly deposited in her checking account. If she has a balance due, she will mail her payment.
Review 13614-C to ensure responses match

 Everything accurate? If not, what’s missing/wrong/needs to be changed?
 Notice anything different?
 Did they have all the required documents?
 Make any corrections needed on 13614-C
Lets look at the Job Aid in Pub 4012, pages 15-16.

Is client eligible for VITA services?
Refer to Publication 4012 page 8-9
Scope of Services Chart

Taxpayer Requirements
1.
Verify and confirm all information on Part I & II.
2.
Ask all questions in their entirety, even if already filled out by client and confirm accuracy
3.
Confirm taxpayer’s identity and SSN or ITIN with supporting documents and photo ID
4.
Ensure that the documents are available for each item if taxpayer answer “Yes” in Parts IV & V
5.
Review part VI regarding health coverage. Use flow charts in
Section ACA 1-3 in your 4012 to determine next steps
6.
Ask the client if there were any questions that they didn’t understand

 Make sure their client has the following- Top of 13614-C:
 Photo ID for all persons on the tax return
 Original Social Security (SSN) or Individual Taxpayer Identification
Number (ITIN) documents for everyone on the tax return.
 Household income of $53,000 or less. Instruct volunteers to ask their site coordinator about income restrictions at your site – you may be able to help higher incomes
Now… Lets look at the Job Aid in Pub 4012, pages 15-16.

How does this play out at most tax sites?
 Intake and Interview Video

Turn to Publication 4012 Tab B
1.
Filing status—is based on marital status and family situation, and determines the rate at which income is taxed.
2.
A taxpayer may be able to claim more than one filing status.
Usually, the taxpayer will choose the filing status that results in the lowest tax. The list below is in order from the most beneficial to the least.
3.
There are five filing statuses

Review
13614-C



TaxWise
Instructor:

TaxWise
Students:
Start the return by entering Olivia’s personal information on the
Main Information page

1.
There are two types of exemptions: Personal and Dependency.
For this scenario, we are only addressing a personal exemption.
2.
This year’s exemption amount is $3,950. This amount is deducted from your taxable income for every person that is claimed on your return, thus decreases the amount of tax owed.
3.
Only one exemption can be claimed per person. An exemption for a particular person cannot be claimed on more than one tax return.
Let’s Open Publication 4012 Tab C

1.
There are two types of income: taxable and nontaxable. All income, such as wages and tips are taxable unless the law specifically excludes it. See a list of types on income in Pub.
4012, Tab D-1.
2.
Employers report wage, salary and tip income on Form W2,
Wage and Tax Statement. Other documents you may see are:
1099 INT/DIV, 1099-G, 1099-MISC, etc.
3.
Income is reported on lines 7-21 on the 1040
Let’s Open Publication 4012 Tab D

Tax Law
Review
1.
What type of exemption does
Olivia have?
2.
What is that exemption amount?
3.
What types of income does Olivia have?

TaxWise
Instructor:

TaxWise
Students:
Enter Olivia’s Income information

Let’s Watch a VIDEO

Open Publication 4012 Tab F
Let’s review information and determine what deduction Olivia will take.

1.
Most people are covered by insurance through their employer,
Medi-Cal, Medicare, etc.
2.
Taxpayers who receive insurance through the marketplace may be eligible for a refundable premium tax credit.
3.
Many low-to-moderate income taxpayers who do not have medical coverage will be eligible for an exemption
Turn to Publication 4012, Tab ACA
(other resource: Publication 5157)

Now lets review the federal tax return so far!
You’ll notice the amount on line 66:
Earned Income Tax Credit (Pub4012, Tab I)
This credit is called the "earned income" credit because to qualify, you must work and have earned income and meet certain eligibility requirements. Earned Income includes wages, salaries, and tips that are includible in gross income and net earnings from self-employment earnings.

THINGS YOU NEED TO KNOW ABOUT THE CA STATE RETURN:
1.
Get the red out! Most information will automatically populate from the federal return
2.
If you have entered more than one W-2 on the 1040, you will have to manually add the additional W-2’s. The first W-2 will carry over, but the rest won’t.
3.
Make sure to complete the direct deposit or balance due portion of the return
4.
Complete the CA Renters Credit Wkt when applicable.

Pub 4012, Tab K
THINGS YOU NEED TO KNOW ABOUT FINISHING A RETURN
1.
All returns will be e-filed (unless otherwise specified)
2.
Bank account information needed for direct deposit- refer to
Part VII of the Intake Sheet
3.
Identity Protection PIN- if client checked the “yes” in box 12 of the Intake Sheet, refer to Pub. 4012, Tab P-1

REFUNDS
1.
Using the filers bank account and routing number, enter it into TW on Main Info Sheet and Page 2 of the 1040.
2.
Always double check account numbers!
BALANCE DUE
1.
Balances must be paid by the filing deadline (April 15th) to avoid penalties and interest charges. There are separate penalties to paying and filing late. Pay as much as you can before the deadline!
2.
Filers will send in their own payments or have it directly debited from their bank account. See Publication 4012, K-3 for instructions
3.
If the filer chooses to send their payment via mail, show them the
1040V Payment Voucher and instruct them to send it with their payment

TaxWise
Instructor:
Enter Olivia’s bank information for direct deposit
Reference:
 Main Information sheet
 1040 Pg.2.
 Pub. 4012, Tab C-13

TaxWise
Students:
Enter Olivia’s bank information
Reference:
 Main Information sheet
 1040 Pg.2.
 Pub. 4012, Tab C-13

Quality
Review
Let’s check our work!
 Do we have matching AGI?
 Let’s review W2 entry
 Let’s review 1099-INT entry
 Let’s review 1099-G entry

What is something you always ask for during the intake and interview process?
Identification
Where in our resource material can you find information on the intake and interview process?
Publication 4012, Page 15
How many 5 filing statuses are there? Can you name them?
5: Single, Married Jointly, Married Separately, Qualified Widower with Dependent Child, and Head of Household
Where can I find this info in our resource material?
Pub 4012, Tab B-1

Name the two types of exemptions and identify which one Olivia is getting.
Personal and dependency; Personal
Where in our resource material can you find information on exemptions?
Amounts are in Pub 4012, Tab C-1
Where can I find info on a filers exemptions in Taxwise?
Main Info, number 6 and line 42 on the 1040
What types of taxable income does Olivia have?
Wages/W2, Interest income/1099-INT, and Unemployment
Compensation/1099-G

Where in our resource material can you find information on income?
Publication 4012, Tab D
What tab in the 4012 specifies the line number for most income documents?
Pub 4012, Tab D-3
Where in our resource material can I find information on how to finish a return?
Pub 4012, Tab K
What form do you use for splitting a refund?
8888
What form does the taxpayer send in with their balance due?
1040V Payment Voucher