Revenue PowerPoint template 1 - AARP TaxAide MN-1

District Coordinator
September 26, 2014
Volunteer Coordinator
Kerrin Lee
651-556-3052 or 1-800-818-6871
[email protected]
Department Updates
• Direct Deposit Promotion
• Governor Dayton’s “Unsession”
• What have we been doing?
• Power of Attorney
• Payment Voucher Project
• What laws were eliminated?
“Opportunities to
give us feedback”
Department Updates
• Federal Conformity (1st Tax Bill)
March 21, 2014 tax bill
Aligns Minnesota’s tax code more closely to federal code
1.1 million returns filed with the new law changes
Reviewed 280,000 returns that were already filed
• Letters to Homeowners
• Potential eligibility for Homestead Credit Refund
• All letters were mailed by August 22, 2014
Tax Law Updates
• Omnibus (2nd) Tax Bill
• Signed May 20, 2014
• Retroactive Changes for 2013
• Property Tax Refunds
• Changes for 2014 and forward
Tax Law Updates
Temporary Reading Credit
The Basics
Tax year 2014 only
75% of qualifying expenses
Maximum credit of $2,000
Credit calculated on Schedule M1READ
Fact sheet will be released soon
• Visit our website and search Reading Credit
Tax Law Updates
Temporary Reading Credit
Qualifying Child
• A child who:
• meets the definition of a qualifying child for K-12
Education Credit,
• has been evaluated by a school district for a specific
learning disability,
• was found, through the evaluation, to have a deficiency
in reading skills, reading fluency or reading
comprehension that impairs his or her ability to meet
expected age or grade-level standards, and
• does NOT qualify for an Individualized Education
Program (IEP)
Tax Law Updates
Temporary Reading Credit
Qualifying Expenses
Tutoring, instruction, or treatment
Not compensated by insurance, or pre-tax accounts
Actual expenses that can be documented
Not used to claim the K-12 Credit or Subtraction
Tax Law Updates
Temporary Reading Credit
Qualifying Tutoring and Instruction Expenses
• Instruction by a qualified instructor that helps the child
meet state academic standards in various subjects
Qualifying Instructor
• Cannot be a lineal ancestor or sibling of the child
• Must meet one of the following tests:
• Have a valid teaching license for the grade level and subject
taught (or is supervised by someone who is)
• Have successfully completed a teacher competency evaluation,
• Provide instruction at an accredited school, or
• Have a bachelor’s degree
Tax Law Updates
Temporary Reading Credit
Qualifying Treatment
To qualify for the credit, the treatment must:
• be intended to improve the child’s basic reading skills, reading
comprehension and reading fluency,
• use recognized diagnostic assessments to determine what
intervention would be most appropriate for the child, and
• use a research based method to teach language decoding skills in a
systematic manner.
If you are unsure whether or not a child’s treatment qualifies,
contact the treatment provider.
Tax Law Updates
Child and Dependent Care Credit
• Minnesota Child and Dependent Care Credit aligns
more closely to the federal credit
• Maximum qualifying expenses increased:
• 1 Qualifying Child - $3,000 maximum
• 2 or more Qualifying Children - $6,000 maximum
• Percent of qualifying expenses allowed in calculating
the credit increased
Tax Law Updates
Additions and Subtractions
Minnesota Income Tax Additions
• Married couples claiming the standard deduction are no longer
required to add back a portion of their deduction
Minnesota Income Tax Subtractions
• Employer-provided mass transit benefits that are included in
federal taxable income can be subtracted. The per month
subtraction amount is limited to the lessor of:
• $120, or
• the benefits received in excess of $130
• Military pay earned under Title 32 AGR Status in the Minnesota
National Guard or Reserves can now be subtracted
Tax Law Updates
2013 Property Tax Refund
What changed?
• Renter’s Property Tax Refunds increased by 6%
• Homestead Credit Refunds increased by 3%
What if my clients already filed?
• We will make changes to returns filed before 6/4/2014 and those
that used outdated refund tables
What if my clients haven’t filed yet?
• Use our updated refund tables on our website if filing by paper
• Ensure that you have the most up-to-date version of TaxWise
installed if filing electronically13
Tax Law Updates
Supplemental Agricultural Credit
What is it?
• Agricultural homesteaded properties
• Property taxes payable 2014
• Lesser of $205, or net taxes excluding house, garage, and
surrounding acre
Additional Information
• Credit will be administered by counties as a reduction in property
taxes payable going forward
• Relative Agricultural Homestead classification qualifies
• Must not owe delinquent property taxes
What do you need to do?
• Nothing- we will mail checks by 10/15/14
• If you have questions, review our website or contact the county
Tax Law Updates
Tax Professional Enforcement
• What is it?
• Tax professionals must follow standards of ethics and conduct
• If you don’t, you may be subject to penalties, criminal
prosecution, or suspension from representation
• Who may this affect?
• Attorneys, accountants, enrolled agents, and any person
preparing returns for compensation
• Anyone who represents taxpayers in dealings with us
• Why are we sharing this with you?
• We want you to be informed and share this information
Tax Professional Enforcement
What can we do?
If a tax professional
Then we can
Knowingly files false or fraudulent tax
Advises a taxpayer to evade taxes
Does not file a required tax return
Attempts to threaten or bribe a
department employee
Does not demonstrate adequate
familiarity with state tax laws and rules
Is convicted of a crime related to tax
return preparation
Is assessed a civil penalty of more than
$1,000 for certain actions related to tax
return preparation
Suspend them from “representing”
taxpayers before the Department for up
to 5 years or bar them indefinitely
Place their name on our Tax
Professionals Sanction List
Place their name on our Tax
Professionals Sanction List
Administrative Updates
• DOR Letter Procedures
• Quality Review of M1 and M1PR
• Point of emphasis
• Modernized e-file
• Unlinking to send M1PR only
• Do not e-file federal returns with $1 of interest or income
• Site Visits
• See how the site operates
• Looking for best practices
• Available for questions or concerns
State Training
• January Training Sessions
• Contact Kerrin to set up a date and to discuss material you
wish to be covered
• MN Review Questions
• Incorporate into your state training
• Volunteers will need to answer the questions
• MN Intake Sheet
• Questions on the sheet should flag potential issues
• Feel free to make copies and distribute as needed
Volunteer Training Packets
• Packets will be mailed to volunteers using the volunteer
addresses provided by the IRS
• After mid-November, send any new volunteer names and
addresses directly to Kerrin to get MN training materials
• MN training materials will be mailed mid-December to all
• Extra copies of training packets are available
• Call or email Kerrin to have additional copies sent out
Form M281V:
Blank 2014 MN Forms
• Changes to order form for filing season 2014
• No payment vouchers
• Please correctly fill out the form and order only what
you need
• Forms are also available on our website or at libraries
• Contact Kerrin if you have a shortage of forms later in
the year
• Order the appropriate form and booklet if you are
doing prior year returns by paper
Site List on DOR Website
• Please update your tax site information in the AARP
Portal system
• If specific information applies to your site, make sure to
note it in the additional information section
• Military-certified volunteers: Please note this in the
additional information section or email Kerrin
• Update opening and closing dates for each site
• Will send out reminder to all DC’s before tax season
Helpful Resources
Minnesota Volunteer Hotline
VITA/AARP Tax Aide Hotline
• 651-556-3050
• 1-800-657-3829
• Hours: Monday – Friday, 8:00 am – 4:30 pm
Email questions to: [email protected]
Please encourage volunteers to use the hotline.
Outreach and Education Staff
Hillary Jasicki (Outreach & Education Leadworker)
651-556-6471, [email protected]
Celeste Marin (Latino Outreach Coordinator)
651-556-6616, [email protected]
Chueyee Moua (Asian Outreach Coordinator)
651-556-6613, [email protected]
Jake Feneis (Paid Preparer Outreach Coordinator)
651-556-6606, [email protected]
Karen Kittel (Withholding Tax Outreach Coordinator)
651-556-3668, [email protected]
Thank You
For All Of Your
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