EKS Training
November 22, December 6 and 13th
Classroom ground rules
Housekeepin
g
o Ask when unsure
o ….
Restrooms
No food in lab
Cell phone etiquette
Intro to EKS:
Let’s watch
Https://www.youtube.com/watch?v=UoCP4ePRTzc
In this scenario, you will learn about:
1. Who must file
2. Filing Status
Scenario #1
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
When you’re finished, you will know how to:
Scenario #1
1.
2.
3.
4.
5.
Login into TaxWise and start a tax return
Identify the clients filing status
Explain what a personal exemption is
Input income from a W2, 1099-G and 1099-INT
Use 4012 to distinguish the difference between
taxable and nontaxable income
6. Explain the EITC for a filer without qualifying
children
7. Finish a basic tax return
Intake & Interview
1.
As a volunteer you must check taxpayer identification and
SSN/ITIN’s for everyone on return
1.
Determine if the client is eligible for VITA services – see Scope
of Service chart in Publication 4012, Pages 8 and 9
1.
Review Intake and Interview form, making sure all information
is filled out correctly
Let’s review the process
Taxpayer Requirements
Intake & Interview
Sheet
13614-C
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
Intake & Interview
Sheet
13614-C cont...…
 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.
Let’s watch!
 Intake and Interview Video
It’s time to start the tax return!
Starting the Tax
Return –
Pub 4012, Tab N
Using your Login Instructions:
1.
Login into TaxWise
2.
Input information from Part I of Intake Sheet into Main
Information sheet. Refer to Pub. 4012, Tab C-10
NOTE: Taxpayers must choose a five digit PIN number and todays
date- recommend using zip code. Enter 12345 for taxpayers PIN for
practice. This is the client’s e-file approval signature.
THREE THINGS YOU NEED TO KNOW ABOUT FILING STATUS:
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.
The five filing statuses are:
Filing Status
Pub 4012, Tab B
 Married filing jointly- married and filing the same return
 Qualifying widow(er) with dependent child- for widows/widower
with dependent children. See Pub 4012, Tab B-1
 Head of household (HOH)- Usually an “unmarried” person who
maintains household with children. Rules are complex – See Pub
4012, Tab B-3
 Single- unmarried, legally divorced or legally separated
 Married filing separately- legally married but filing separate returns
THREE THINGS YOU NEED TO KNOW ABOUT EXEMPTIONS:
Exemptions
Pub 4012, Tab C
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.
THREE THINGS YOU NEED TO KNOW ABOUT INCOME
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
Income
Pub 4012, Tab D
THREE THINGS YOU NEED TO KNOW ABOUT DEDUCTIONS
Deductions
Pub 4012, Tab F
A deduction is a set amount (based on your filing status) that
decreases your taxable income, thus decreasing the amount of tax
you owe.
Tax filers have the choice to take the standard deduction or itemize
their deductions. For this scenario we are only going to focus on the
standard deduction.
Your standard deduction increases if you are 65 or over and/or blind.
See Publication 4012, Tab F-1 for deduction amounts. TaxWise
populates this automatically.
Now lets review the federal tax return so far!
You’ll notice the amount on line 66:
Reviewing the
Federal Tax Return
Earned Income Tax Credit
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:
Completing the
CA 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.
Finishing the
return
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.
2.
Refunds &
Balance Due
Using the filers bank account and routing number, enter it into TW
on Main Info Sheet and Page 2 of the 1040.
Always double check account numbers!
BALANCE DUE
1.
2.
3.
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!
Filers will send in their own payments or have it directly debited
from their bank account. See Publication 4012, K-3 for instructions
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
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?
Knowledge
Check!
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
Knowledge Check
cont...
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
Knowledge Check
cont...
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