5 ExemptionsThe amount a taxpayer can deduct for each exemption increased to $3,900 for 2013.
6 Standard Deductions: 2013 MFJ or QW $12,200 Head of Household $8,950 Single or MFS$6,100
7 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
8 Social Security Benefits Sometimes a taxpayer may receive Social Security payments for previous yearsTaxpayers can either:Report the amount for the previous years as income for the current tax year (2013)Use the Lump Sum Election Method, and report the amount for the previous years as income for the previous years (and thus pay any taxes on it based on previous years’ income)
9 Lump Sum Election Method Lump Sum Election Method is out of scope for basic volunteersIn order to compute the taxable benefits, you will need copies of the taxpayer’s prior year returns (to get their AGI)
10 Social Security Benefits: SSA-1099 Total benefitsMedicare premiumsDon’t miss withholding!Lump-Sum Benefit Payments
11 Reporting Lump-Sum Benefits Option 1: Report the whole payment as it was receivedEnter the whole payment on the first line (SS received this year)Same step as in Basic Training!
12 OPTION 1: Lump Sum Election Method Link Line 20a 1040 Wkt 1 Social Security received this yearMedicareFederal Tax Withheld
13 Reporting Lump-Sum Benefits Option 2: Separate payments based on year received and record taxable benefits appropriatelyOnly the current year income will be adjustedDo NOT file an amended returnTaxpayer can choose 2nd option if it lowers the taxable benefits (TaxWise will automatically determine which is more beneficial)
14 OPTION 2: Lump Sum Election Method Link Line 20a 1040 Wkt 1 Social Security received this yearMedicareFederal Tax WithheldThen scroll to the bottom of the sheet
15 OPTION 2: Lump Sum Election Method Enter the benefits for 2013 on the gross amount received lineClick on the amounts taxable from previous years line and type F9 to pull up a Lump Sum Wkt
16 OPTION 2: Lump Sum Election Method Enter the earlier year for which the benefits were received and the filing status
17 OPTION 2: Lump Sum Election Method Line 1: Enter the amount of benefits received in prior year and amount for prior year received in current yearLine 3: Enter the AGI for prior year
18 Lump Sum Election Method Step 1: Enter Box 5 total in the Social Security received this year line on 1040 Wkt 1Step 2: Calculate amount paid for current tax year by subtracting prior years from Box 5 benefitsStep 3: Enter in appropriate box at bottom of worksheetStep 4: Link to Lump Sum Wkt from line Amounts Taxable from Previous YearsStep 5: Enter pertinent prior year at top of Lump Sum Wkt (e.g., 2012) and check appropriate marital status for that yearStep 6: On Line 1, enter amount of benefits received in prior year and amount for prior year received in current yearStep 7: On Line 3, enter AGI for prior yearStep 8: One Lines 4 and 5, enter adjustments/exclusions and tax-exempt interest amounts for prior yearStep 9: Close worksheet; repeat steps 4-8 for additional prior years
19 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
20 2012 State Tax RefundThe 2012 State Tax Refund may be taxable and need to be reportedAnswer question in Box under line 9If YES, link: Line 10 State Tax RefundComplete the State Tax Refund Wkst with information from 2012 return
21 Info Needed from 2012 Return State refund amountSchedule A, line 5a: Income TaxesSchedule A, line 5b: General Sales TaxTotal itemized deductions amountFiling statusTaxable income amount
22 State Tax Refund in TaxWise Enter in the amount for:State refund amount (line 1)Sch A, line 5a: income taxes (line 2)Sch A, line 5b: general sales tax (line 2)
23 State Tax Refund in TaxWise Enter in the amount for:Total itemized deductions (line 6)Filing status (line 7)Taxable income amount (line 12)
24 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
25 Business IncomeIncome from personal business or independent contractorIncome can be reported on:1099-MISCW-2 (Statutory Employee)Personal records1099-KLink: Line 12 Sch C-EZ or C
26 Business IncomeWe can file a Schedule C or C-EZ if the taxpayer meets the following:Cash method of accountingNo inventoryDoes not want to depreciateNo net lossOnly one business (if taxpayer owns a business)No employees during the yearHad business expenses of less than $10,000Schedule C-EZ less than $5,000Schedule C up to $10,000
28 1099-MISCIncome reported in Box 7 on a 1099-MISC is considered self-employment income and should be reported on a Schedule C-EZ or Schedule CLink: Line 12 Sch C-EZ or Sch CThen, Link: Gross Receipts Line 1099-MISC
29 1099-MISCONE MORE TIME: Income reported in Box 7 on a 1099-MISC is considered self-employment income and should be reported on a Schedule C-EZ or a Schedule C
30 Schedule C-EZ and Schedule C Net profit = Gross Receipts – ExpensesDeductible expensesAdvertisingInsuranceInterestLegal and professional servicesRepairs50% of business entertainmentUtilitiesVehicle expenses (additional information needed for Part III of the C-EZ or Part IV of the C, Pg. 2)See your campus fellow manual Tab 5 for more details
31 Business Mileage Rates If used for business purposes, taxpayers can receive a mileage deduction at the federal rateCannot deduct commuting milesCannot calculate depreciation (out of scope)For 2013, the following rate is in effect:56.5 cents per mileOn Sch C-EZ and Sch C, enter total miles
32 Business Income Line F (Sch C-EZ) or Line I (Sch C) Did the business make any payments in 2013 that would require filing of Form(s) 1099?Line 1 (Income) structured differently:1a: Merchant card and third party payments (for 2013 enter -0-)1b: Gross receipts or sales not entered on line 1a1c: Income reported to you on Form W-2 (if the “statutory employee” box on that form was checked)1d: Total gross receipts
33 Schedule C in TaxWise: Income 1a: Merchant card & third party sales 1b: Gross receipts on on 1a 1c: Income reported on W2 if the “statutory employee” box is checked 1d: TaxWise calculates total gross receipts
34 Schedule C in TaxWise: Expenses Enter in the amounts for the qualified business expenses
35 Schedule C in TaxWise: Vehicle Expense Enter in the amounts and answer the questions TaxWise carries over the mileage for you
36 Schedule C-EZ in TaxWise Enter in the business information
37 Schedule C in TaxWise: Income & Expenses 1a: Merchant card & third party sales 1b: Gross receipts on on 1a 1c: Income reported on W2 if the “statutory employee” box is checked 1d: TaxWise calculates total gross receipts2: Total expenses(Link to a scratch pad)
38 Self Employment TaxMust file Schedule SE if self-employment earnings are over $400Covers Social Security and Medicare taxesComplete Schedule C or C-EZ firstTaxWise automatically calculates the tax onto Line 56
39 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
40 Types of Retirement Plans Pension: A series of payments for past workAnnuity: A series of payments from a contract with a company, trust, or individual401(k) Plan: The employer contributes part of the employee’s cash wages to a retirement plan on a pre-tax basis (not subject to income tax when deferred)
42 Taxable Portion of Distributions Depending on employee contributions, income from retirement plans can be:Fully Taxable if:Employee did NOT contribute (all $ came from employer)Employee contributed with before-tax moneyPartially Taxable if:Employees contributed part of funds with after-tax moneyNot Taxable if:Employee made ALL contributions with after-tax dollars (i.e. Roth IRAs)
43 FIND YOUR SITE COORDINATOR Important NoteYou can only prepare returns for retired individuals ONLY if the taxable amount of the retirement distribution has already been determinedIf Box 2a is empty,FIND YOUR SITE COORDINATOR
45 Railroad Retirement Plans RRB 1099Treated like SSA-1099 (social security benefits)RRB-1099-RTreated like 1099-R (pension)
46 Rollover (Tax-Free Distribution) (Code G will be in Box 7 of the 1099-R) Enter the amount the taxpayer rolled overCheck the Box and type F9Provide an explanation
47 Defined Benefits Retirement Plans IF IT IS A DEFINED BENEFITS PLAN, CLICK BOX 1 ON THE BOTTOM OF THE 1099-R IN TAXWISE
48 Defined Benefits & Defined Contributions Taxpayer receives a set amount each month for retirement and is based on salary history and years which they worked at a company.Defined Contributions:Taxpayer's retirement depends on the amount of contributions made into an investment account and the performance of those investments contributed.Examples: 401(k), 403(b), employee stock ownership plan, profit-sharing plan.
49 Alabama Tax RulesDefined Benefits Plan: A promised benefit is based on a formula in the plan, often using a combination of the employee’s age, years worked for the employer, and/or salaryContributions from employee, employer, or both.Employer bears investment risk.Defined Contributions Plan: The benefit depends on contributions made by the employee and/or the employer, performance of the account’s investments, and fees charged to the account.Employee bears investment risk.
50 Alabama Tax RulesDefined Benefits Plans are NOT taxable at the Alabama level.To find out if a plan is Defined Benefits or Defined ContributionsConsult online list ( or your Campus Fellow ManualCall the company that administers the planCall the IRSSee Tab 5 in your Campus Fellow Manual for more info at the tax siteHint: All retired civil servants(i.e. teachers, city employees, soldiers, etc)have Defined Benefits plans
51 IF IT IS A DEFINED BENEFITS PLAN, CLICK BOX 1 IN TAXWISE Alabama Tax RulesIF IT IS A DEFINED BENEFITS PLAN, CLICK BOX 1 IN TAXWISE
52 PracticeJoe has been receiving his retirement payments for several years and has received a 1099-R. When you ask him if he knows what kind of plan it is, he says he has no idea but he knows it is from his employment as a teacher. Is this a defined benefits or defined contributions plan?
53 All civil servants will have a defined benefits plan. PracticeJoe has been receiving his retirement payments for several years and has received a 1099-R. When you ask him if he knows what kind of plan it is, he says he has no idea but he knows it is from his employment as a teacher. Is this a defined benefits or defined contributions plan?Defined benefits planAll civil servants will have a defined benefits plan.
54 PracticeMaria began receiving her retirement payments this year and was issued a 1099-R. She tells you that this is being drawn from an investment account that she would contribute to and her former employer would match that contribution. Is this a defined benefits plan or defined contributions plan?
55 PracticeMaria began receiving her retirement payments this year and was issued a 1099-R. She tells you that this is being drawn from an investment account that she would contribute to and her former employer would match that contribution. Is this a defined benefits plan or defined contributions plan? Defined contributions plan
56 PracticeCharles has been receiving his retirement for seven years. Every month, he receives $100. Is this a defined benefits plan or defined contributions plan? Defined benefits plan
57 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
58 Adjustments to Income Decreases Taxable Income Found on lines of Form 1040Educator ExpensesHalf of Self-Employment TaxEarly Withdrawal PenaltyAlimonyIRA (traditional) ContributionsStudent Loan InterestCollege Tuition PaymentsJury Duty
59 Educator Expenses Eligible Educators: Qualified Expenses (up to $250): K-12 teacher, instructor, counselor, principal, or aideWorked at least 900 hoursQualified Expenses (up to $250):Ordinary and necessary amountsBooksSuppliesEquipment
60 Educator Expenses: Link: Line 23 1040 Wkt2 Enter qualified expenses up to $250 for each person.If taxpayer and spouse are both eligible educators, can deduct up to $500.
61 Half of Self-Employment Tax Offsets the tax burden placed on individuals who do not have employers to pay half of their taxes.TaxWise will automatically calculate this adjustment if you have completed a Schedule C-EZ or a Schedule C.
62 Penalty on Early Withdrawal of Savings TaxWise will automatically calculate from information on the Interest StatementTaxWise automatically calculates the adjustment on Line 30Make sure you entered in ALL interest and penalties imposed correctly on the Schedule BImportant: Make sure you haveentered in ALL interest received AND penalties imposedfor early withdrawals onthe Interest Statement of Schedule B
63 Alimony PaidPayment to a spouse or former spouse under a divorce/separation agreementChild support and voluntary payments are NOT considered alimonyAlimony received is considered incomeDeduct total alimony paid for the whole year, not just one monthEnter in amount and recipient’s SSN on Line 31
64 IRA Contributions Deduction IRA: Individual Retirement ArrangementsPersonal savings plan that offers tax advantages to set aside money for retirementEarnings and gains on contributions are not taxable until withdrawalContributions to a traditional IRA can be either deductible or nondeductible
65 IRA Deduction: Deductible Contributions Eligibility Requirements:Only contributions to a traditional IRA are deductibleAge Limit: must be under the age of 70 ½ at the end of the tax yearCompensation: must have taxable compensationTime Limit: Contributions must be made by due date of filing the return
66 IRA Deduction: Joint Returns If the taxpayers file a joint return and one spouse’s compensation is greater than the other’s:Married taxpayers’ combined contributions cannot exceed combined compensationNeither spouse can contribute more than $5,000 ($6,000 if > age 50)
67 IRA Deduction: Allowable Deduction The allowable deduction may be adjusted based onFiling statusIncomeWhether or not the taxpayer/spouse is covered by an employer retirement plan
68 IRA Deduction: Penalties Taxpayers may incur penalties forExcess contributionsEarly withdrawalsToo little withdrawals
69 IRA Deduction: Excess Contribution Contributions for 2013 can be made up until the due date of the return (i.e. April 15, 2014).An excess contribution above these limits and any earnings on it will be taxed.They should still be reported on Form 8606If the taxpayer has made excess contributions, refer them to a professional preparer!
71 Student Loan InterestUp to $2,500 of interest paid on loan in the name of a:TaxpayerSpouseDependent (when the loan was obtained)Note: Student must have been enrolled at least half-time ina program leading to a degree, certificate,or other credential
72 Student Loan Interest: Eligibility School IS:AccreditedQualified to participate in a student aid program or conduct internship/residency programs leading to a degree or certificateTaxpayer IS NOT:Filing MFSAble to be claimed as a dependentIf the taxpayer cannot be claimed as a dependent but her parents paid the student loan interest, the student can claim the deduction
73 Tuition and Fees Deduction Tuition amounts paid by the taxpayer are reported on a 1098-T and can be entered as an adjustment or a creditThe deduction can be claimed for the taxpayer, spouse or any qualified dependentOnly out-of-pocket expenses can be claimed; you must subtract amounts paid with scholarships and grants
74 Tuition and Fees Deduction Taxpayers can deduct up to $4,000 in qualified tuition and related expenses; NOT BOOKSLink: Line 34 1040 Wkt2
75 Student Loan Interest: Qualified Expenses Qualified expenses include tuition and fees required for enrollment, usually reported on a 1098-EExpenses that do not qualify: room and board, transportation, books, and suppliesMust be reduced by scholarships, employer-provided benefits, or tax-free education expenses
76 Jury Duty Pay Given to Employer Jury duty pay is taxable income.BUT if that pay is given to the employer, it can be deducted as an adjustment.Enter the amount on Line 35, Jury duty pay you gave to your employer.
77 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
78 Itemized DeductionsEvery taxpayer can take a specific amount for a “standard” deductionReduces taxable incomeThere are certain designated expenses that a taxpayer can choose to list out separately, and, if they total more than the standard deduction, the taxpayer will “itemize” his deductionsReduces taxable income by a greater amount
79 When to ItemizeA taxpayer can receive a larger deduction by itemizing if he/she has:At the Federal Level (higher standard deduction):Home mortgage paymentLarge number of medical billsAt the State Level (lower standard deduction):Expenses that may/may not have been sufficient to justify itemization on the federal levelReported on Schedule ANote: If a taxpayer is MFS and his/her spouse itemizes, the taxpayer must also itemize, regardless of whether the Standard Deduction would be higher
80 Qualifying Expenses Unreimbursed Medical Expenses Charitable ContributionsTaxesHome Mortgage InterestMiscellaneous Deductions
81 Unreimbursed Medical Expenses A taxpayer can claim expenses forHim/HerselfSpouseDependentsHe/she can only deduct the amount that exceeds7.5% of his/her AGI on federal returns4% of his/her AGI on state returns
82 Deductible Medical Expenses Co-pays to doctor, dentist, eye doctorPrescription drugsCost of glasses or hearing aidsCost of medical equipmentHealth insurance premiumsLong-term care insurance premiums (cap on amount based on age)Cost of surgery, operationsMiles to and from doctorNOTE: For a complete listing of deductible andnondeductible expenses see Pub 502 on the IRS website
83 Nondeductible Medical Expenses Life insurance policy premiumsFuneral, burial, cremation costsUnnecessary cosmetic surgeryNonprescription drugsNOTE: For a complete listing of deductibleand nondeductible expenses seePub 502 on the IRS website
84 Medical Expenses in Taxwise (Click on the A Detail in the Loaded Forms Menu) Enter in the amounts for:Medical milesInsuranceMedicare (carries over from 1040 Wkt 1)Other medical expenses (prescriptions, glasses, etc.)
86 Charitable Contributions Deductible Items:Monetary donationsFair market value (FMV) of clothing, furnitureUniforms required to be worn during serviceUnreimbursed transportation expensesIMPORTANT: The taxpayer must keep receipts!
87 Charitable Contributions Nondeductible Expenses:Raffle, bingo, lottery ticketsTuitionValue of time of serviceBloodContributions to individualsThe FMV of any good received in exchange for a donation (i.e. t-shirts, cds, tote bags, etc.)
88 Charitable Contributions in TaxWise (Click on the A Detail in the Loaded Forms Menu) Enter in the amounts for:Charitable milesCharitable cash contributionsUniforms required for serviceFMV of other than cash contributions
89 Taxes Deductible Nondeductible Taxes imposed on and paid by the taxpayer in 2013NondeductibleTaxes the taxpayer pays for someone elseTaxes someone else pays for the taxpayerTaxes not paid during 2013
90 Taxes Deductible Nondeductible State and local taxes Federal taxes Real estate taxes (Property Tax)Hunting licensesWater/sewerState and local taxes on a new car purchaseTaxes on alcohol, tobacco, or gasAd valorem tax on car tags (total paid - $24.50)Utilities
91 Taxes Paid in TaxWise (Click on the Schedule 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 before entering (8)
92 Taxes Paid in TaxWise (Click on the Schedule A in the Loaded Forms Menu) TaxWise automatically chooses 5a or 5b:The amount for income taxes automatically fillsLink: Line 5b Sales TaxLine 1: Enter in ALLine 3: Check Yes and enter local sales tax (6 for Birmingham)Line 4: Check Yes and enter 4
94 Home Mortgage Interest in TaxWise (Click on the Schedule A in the Loaded Forms Menu) Enter the amounts for:Home mortgage interest and points (10)Mortgage insurance premiums (13)
95 Nondeductible Interest Personal interestpersonal loanscar loanscredit cardsetc.
96 Miscellaneous Deductions Union duesUniforms (that cannot be worn in any other circumstance)Professional books, journalsEmployment-related educational expensesExpenses for looking for a new jobTax preparation fee from last yearSafe deposit boxGambling losses up to amount of winnings
97 Miscellaneous Deductions in TaxWise (Click on the Schedule A in the Loaded Forms Menu) Enter the amounts and descriptions for:Employment: job travel, union dues, job education, literary journal for work, educator expenses (21)Tax prep fees (22)Safe deposit box (23)Miscellaneous: literal journal not for work, gambling losses from W2-G (28)
98 Nondeductible Expenses Burial or funeral expensesWedding expensesFees and licensesFines, penalties, traffic ticketsHome repairs and insuranceRentInsurance premiums (except health and mortgage)Losses from sale of home
99 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
100 Education CreditsOffset higher education expenses paid during the yearThe student can be taxpayer, spouse, or a dependentPartially RefundableTwo types of credits available:American Opportunity CreditLifetime Learning Credit
101 Education Credits: Eligibility Filing status cannot be MFSQualified expenses paid by taxpayerCAN claim on the basis of expenses paid with student loansAccredited institutionTaxpayer or student will often receive Form 1098-T
102 Education Credits: Dependents When the student can be claimed as a dependent,Taxpayer must claim credit if taxpayer claims the exemptionStudent must claim credit if taxpayer does not claim exemptionIf the taxpayer claims the dependency exemption, any amount paid by the student is considered to have been paid by the taxpayer
103 American Opportunity (Hope) Credit Lifetime Learning Credit Up to $2,500 per eligible studentUp to $2,000 credit per returnAvailable for the 1st 4 years of collegeAvailable for all yearsStudent must be pursuing a degree or recognized education credentialStudent does not need to be pursuing a degree or credentialStudent must be enrolled at least half timeAvailable for one or more coursesNo felony drug conviction on student’s recordFelony drug conviction does not applyExpenses include tuition, fees, and course materialsExpenses include only tuition and fees
105 Education Credits: American Opportunity Credit 40% (up to $1,000) is refundable (unless the taxpayer claiming the credit can be claimed as a dependent by his/her parent)Qualified expenses include “Course materials” (any required books and supplies, whether available in regular bookstores)Remember, room and board is never a qualified expense.
106 Qualified Expenses for Credit American Opportunity (Hope) CreditQualified tuition and related expensesIncludes 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 1
107 PracticeJames takes one course at a local community college. He received a Form 1098-T showing qualified tuition expenses of $1,000. He lives with his parents, who can claim him as a dependent. Who is entitled to claim the credit? Which credit?
108 PracticeJames takes one course at a local community college. He received a Form 1098-T showing qualified tuition expenses of $1,000. He lives with his parents, who can claim him as a dependent. Who is entitled to claim the credit? Which credit?If James’s parents claim him, they must claim the credit.If James’s parents do not claim him, James must claim the credit.Lifetime Learning Credit
109 PracticeLaQuandra is a sophomore enrolled at UAB full-time. She provides all of her own support. She paid $10,000 in 2013 for tuition and fees for enrollment to UAB. She received a tax-free scholarship worth $4,000, and paid the rest from a student loan in her name. Can LaQuandra claim an education credit? Which one? How much of her expenses are qualified expenses?
110 PracticeLaQuandra is a sophomore enrolled at UAB full-time. She provides all of her own support. She paid $10,000 in 2013 for tuition and fees for enrollment to UAB. She received a tax-free scholarship worth $4,000, and paid the rest from a student loan in her name. Can LaQuandra claim an education credit? Which one? How much of her expenses are qualified expenses? Yes American Opportunity or Lifetime Learning Credit Qualified expenses = $6,000
111 Education Credits: No Double Benefits The taxpayer CANNOT claimBoth the American Opportunity (Hope) and Lifetime Learning credits for the same qualified tuition expensesExpenses 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)
112 Foreign Tax CreditTaken if a taxpayer paid income tax to a foreign country; U.S. possession; or political subdivision, agency, or instrumentality of a foreign countryForeign tax paid > $300 is out of our scope!We may see some foreign tax reported on a 1099-DIV in Box 6Enter the amount of foreign tax paid on Line 47
113 Residential Energy Credit Nonrefundable creditAvailable to a taxpayerwho made purchases for qualified energy efficient improvements for his main homewho owns his home
114 Residential Energy Credit Use Form 5695, Part IEligible expenses includehigh-efficiency heat pumps, air conditioners, and water heaters;energy-efficient windows, doors, insulation materials, and certain roofs
115 Residential Energy Credit Non-Business Energy Property (home improvements)Heating, ventilating, air-conditioning, insulation, roofs water heaters (non-solar), windows, and doors.Part I of the 5695 (IN SCOPE)Residential Energy-Efficient Property CreditSolar panels, solar-powered water heaters, geothermal heat pumps, photovoltaic systems, small wind energy system, fuel cellsPart II of the 5695 (OUT OF SCOPE)
116 Residential Energy Credit Link: Line 52 5695 Pg. 1 Fill in 1a, b, and c
117 Residential Energy Credit Line 2: Enter any amounts claimed in the previous 4 yearsLine 3 (Qualified energy efficiency improvements):3a: Insulation3b: Exterior doors3c: Roof (metal or asphalt)3d: Exterior windows /skylights
118 Residential Energy Credit Line 6 (Residential energy property costs):6a: Electric heat pump, central air conditioner, water heather6b: Natural gas, propane or oil furnace, hot water boiler6c: Main air circulating fan used in natural gas, propane or oil furnace
119 Residential Energy Credit Taxpayers MAY qualify for an energy credit for qualifiedsolar electric property costssolar water heating property costssmall wind energy property costsgeothermal heat pump property costs.Important: This is outside scope of VITA
120 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
121 Paper Returns: When to Mail Situations in which a return CANNOT be e-filed:A dependent has been claimed incorrectly by another taxpayer on a previous return.The taxpayer has been incorrectly claimed as a dependent on a previous return.A taxpayer files MFS but does not know his spouse's SSN.Note: Sometimes, tax returns cannot be e-filed OR the taxpayer simply prefers to mail the return.
122 Preparing Paper Returns in TaxWise To set up the return to be filed as a paper return:Federal: On the Main Info Sheet, scroll midway down and click “Paper” next to Type of Return.State: On the AL40, scroll to the bottom and click “No” stating that you do NOT want to e-file the return.
123 Preparing Paper Returns in TaxWise Prepare the return as you would normally.Print two copies of everything – give one to the taxpayer to keep and one copy to mail.Have the taxpayer sign the 1040 and the AL40.
124 Paper Returns: Final Notes Paper returns take much longer to process than e-filed returns.Refunds can still be directly deposited on a paper return – just include this information in TaxWise.
125 Amended ReturnsOnce a tax return has been accepted by the IRS, it cannot be changed without submitting an amended returnA taxpayer should amend his return ifAnything was excluded that affects taxable income ORTax liability ORIf anything was reported incorrectly
126 Amended Returns Common reasons returns must be amended: Taxpayer receives another W-2Taxpayer remembers another source of incomeTaxpayer wants to add itemized deductionsA dependent was mistakenly claimed
127 Amended ReturnsIf we completed the return, you will be able to pull it up in TaxWise to amend it.If someone else completed the return, you will need to re-key the original return that was submitted (exactly as it was submitted) before you can amend it.
128 Amended Returns: First Steps BEFORE MAKING ANY CHANGES TO THE RETURNAdd a 1040XIMPORTANT: On the 1040X, click the check-box that says “Check this box to override”If the AL return must be amended, click the box at the top of the AL40 that says “Amended Return”
129 Amended Returns: Making Changes Once you check the appropriate boxes on the 1040X and the AL40, make any needed changes to the tax returnAdd a new W-2Add or take off a dependentChange filing statusEtc.All changes will be recorded on the 1040X
130 Amended Returns: Important Lines Line C: explains what changes are being made to the tax return and whyLine 15: indicates if the taxpayer already made a paymentNote: A new amount owed or refunded will belisted once ALL changes are made
131 Amended Returns: Filing Amended returns cannot be e-filed.Print1040X andAL40 andany new schedules that have been added (if applicable)Include documentation of changes (if necessary – e.g., a new W-2).
132 Amended Returns: Final Notes Print the ENTIRE pdf for the taxpayer's records (e.g., the 1040X and the resulting 1040 after changes).Warn the taxpayer that it may take weeks for the IRS to process an amended return.Refer the taxpayer to if they have further questions about when the return will be processed.
133 Practice Complete the Fleming exercise on your own Twonline.taxwise.com/trainingClient ID:User Name: all caps, last name then first initial, e.g. Seth Nelson NELSONSPassword: user set OR if password gets reset, password will be same as username
134 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
135 Additional Topics on 2013 Advanced Test Pull out your “Helpful Tips for Additional Topics on the 2013 Advanced Test” packetThe following topics will appear on the 2013 Advanced Certification Exam BUT will be out of scope for you at the tax site.Campus Fellows = SaveFirst Intermediate LevelThe following topics MUST be performed by an Impact Site Coordinator (or SaveFirst Advanced Level) at the site.Capital gains (sale of stock, capital loss carryover)Retirement Income with Taxable Amount Not DeterminedSchedule K-1: Interest Income, Royalty Income
136 Sale of Stock Sale of stock = Capital Gains GAIN = AMOUNT REALIZED – ADJUSTED BASISIn Layman’s Terms…GAIN = MONEY YOU GET – MONEY YOU PAIDBASIS: original cost of the asset.ADJUSTED BASIS: original cost of the shares of stockincreased or decreased to account for commissions,fees, depreciation, etc.
137 Inherited property is ALWAYS long-term Holding PeriodPeriod starts the day after the property is acquired and continues through the day it is soldShort-term: held for one year or lessLong-term: held for more than one yearInherited property is ALWAYS long-term
138 Reporting Income from Sale of Stock Line 13 (if short-term)Sch D Pg 18e, 9e or 10e1e, 2e or 3e8949 Pg 13a1aCap Gn WktLine 13 (if long-term)
139 Carryover LossesLoss that can be claimed in one year is the lesser of:The total loss OR$3,000 ($1,500 if MFS)Unused portion of loss can be carried over from year to year until total loss is claimedRemains long-term or short-term.If not claimed in some year, unused loss is decreased by the amount that should have been claimed.Report carryover losses on Sch D Pg 1.Line 6 (short-term) or line 14 (long-term).
141 Retirement Income: Taxable Amount Not Determined Simplified MethodCalculates tax-free portion of each pension or annuity paymentCalculates taxpayer’s cost basis for each monthly paymentBasis – amount the taxpayer paid in to the plan that is being distributed in each monthly paymentTaxpayer’s cost basis = Monthly Tax-Free# of monthly payments Portion
142 Simplified Method Enter in the amounts for: Cost in plan at start date from 9b of 1099-R (line 1)Age at start date (line 2)Number of months payments were received in 2013 (line 4)Amount recovered tax free in prior years (line 5)
143 Simplified Method TaxWise Calculates: Line 3 Exclusion per monthLine 6 ExclusionAutomatically pulls through to Line 16b on 1040.Do NOT fill in box 2b on1099-R – it should remain blank.
144 Schedule K-1: Interest & Royalty Income Reports the taxpayer’s share of income or distributions from partnerships, S Corporations, and some estates & trustsSome interest income and royalty income is reported on a Schedule K-1
145 Reporting Income from Schedule K-1 Type of Income Taxable Interest Income Royalties Where to Report 1040 Line 8a Sch B Line 1b Interest Stmt (same as interest income from 1099-INT) 1040 Line 17 Sch E Pg 1 1*C K1 P/S Pg 1 Line 7/6 (use code 6 in Part 1)
146 PracticeLet’s complete practice scenarios 1 and 2 in your “Helpful Tips” packet togetherYou should use this packet and these exercises as a guide for the advanced topics when completing the certification exam
147 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
149 Quality ReviewWe must thoroughly quality review EVERY RETURN (E-file and Paper)Campus Fellows may assist Site Coordinators to conduct Quality ReviewsUSE TAB 4 IN YOUR CAMPUS FELLOW MANUAL FOR ALL QUALITY REVIEWS!
150 Volunteer Organization Make sure that everyone signs in (Campus Fellows: set a good example!)Place volunteers in stationsPartner volunteers in such a way that they are both comfortable and competentKeep students busy!Enforce “Volunteer Dos and Don'ts”
151 Crowd Control Make sure each taxpayer signs in at the door Direct taxpayers to the Intake and Interview FormsPlace taxpayers with available volunteers
152 Appointment Confirmation Talk to the Site Coordinator about assisting with day-before appointment reminder callsCall all appointments 24 hours beforeIdentify Self and Organization (you may need to say “the tax people”)Confirm appointment time (make a note if the taxpayer mentions he/she might be late)Remind the taxpayer to bring Social Security Cards, W2s, and other tax forms; if filing jointly, spouses both need to come inCall taxpayers who do not show up for appointments to rescheduleSee script on Pg. 6 in your Campus Fellow Manual
153 Paperwork Requirements Items for TAXPAYER (AND SPOUSE) to complete DURING the return:INPUT pin # for Main Information Page in TaxWiseConfirm “I authorize” selection on Federal Form 8879Confirm “I authorize” selection on Alabama Form 8453INPUT pin # on consent to use form (“Gen Use” in TaxWise)INPUT pin # on consent to disclose form (“Gen Disclose” in TaxWise)
154 Paperwork Requirements Forms to print for an E-file return:1 copy of the entire return for the taxpayer’s records (including copy of 8879 and 8453)Extra Form 8888, if applicableForms for taxpayer to complete/sign:Federal form 8879*Alabama form 8453*Consent to use/disclose forms ONLY IF volunteer enters pin # on consent to use in Taxwise for taxpayerSNWL paperwork, if applicableNote: These signed forms are then given back to the taxpayer for their records. We keep electronic copies only.
155 Paperwork Requirements Forms to retain for our records:Completed Intake/Interview & Quality Review SheetSigned copies of consent to use form and consent to disclose form ONLY IF volunteer enters pin # on consent to use/disclose forms for taxpayerCompleted SNWL paperwork and Form 8888, if applicable
156 Assisting the Site Coordinator Always ask the Site Coordinator if there is anything you can do to help her/him!
157 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
158 Understanding the Intake/Interview Form and Conducting a Thorough Quality Review for Every Taxpayer
159 Required for Use by IRS VITA Sites An important tool for accuracy and due diligence!Must be completed by (or with) the taxpayer.Must be used to conduct the Quality Review process.Must be used when e-filing tax returns.Must be kept on file in our site records.
160 The Intake Process: Completing Form 13614-C In most cases, the taxpayer completes pages 1 and 2 of the Intake Interview Form (Form C) in the waiting room before meeting with a tax preparer.Provide assistance as needed
161 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.If multiple/prior year returns:Go to IRS.gov and print out the Intake/Interview form from that tax yearComplete an intake/interview form for EVERY year for which the taxpayer is filing
162 The Intake Process: 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 Campus Fellow ManualIf a topic seems complicated or unfamiliar to you, double-check the Scope of Service Chart to be sure it is listed in scope.Sometimes this determination may be unclear. If you are unsure, ask your supervisor.
163 The Intake Process: Return and Volunteer Certification Levels Remember, SaveFirst volunteers are following slightly different scopes than the IRS’s levels of certification.Reference your SaveFirst Scope of Service chart in your Campus Fellow Manual, pgs if you have questionsRemember: Campus Fellows are Intermediate Level Volunteers
164 If part of a taxpayer’s return will be out of scope for the volunteer preparer, but will be in scope for you, the site coordinator, or your Campus Fellows, then if you are busy you may have the volunteer begin the return and stop when they have completed all of the topics within their scope.
186 Review Tab 4 pages 22-26 in your Campus Fellow Manual as we go over the Quality Review process. Turn to Tab 4, pages in your Campus Fellow Manual for the “Process for Conducting a Thorough Quality Review”
187 For every quality review, you will use the Intake/Interview sheet, page 3. You will go through the checklist on that sheet and mark that you have confirmed each step of the quality review.However, you will find that the Quality Review process as outlined on page 3 is not thorough enough to catch many of the common errors you will find on a tax return. Tab 4 of your Campus Fellow Manual has a more comprehensive guide for what you should do for each question on the Quality Review Checklist on the Intake/Interview Form C. You should follow this checklist in Tab 4 for EVERY quality review!!
189 Before you start the quality review… Introduce yourself to the taxpayer and explain you are going to review the volunteer’s work prior to electronically filing the return.Ask the taxpayer if they have any questions or concerns about the return as the volunteer prepared it. Pay close attention to the response: if a taxpayer is concerned about the size of the refund, make a note so you can look out for any errors that could have affected the size of the refund.Look at pages 1-2 of the Intake sheet. If every question is not completely filled out, ask the volunteer to finish the interview and enter in any additional information before you conduct the quality review.As you review the Intake sheet, make a mental note of all the items you will be looking for in TaxWise.
190 BEFORE you get started: have the Campus Fellows open their books to Tab 4 of the Campus Fellow Manual and make corrections to the numbering. At bullet point 6e, thy should underline “Personal and Dependency Exemptions” and write #7 out to the left. Points F through J should be subpoints of #7 Personal and Dependency Exemptions.Then they should Change “All Income…” to #8, change “Adjustments..” to #9, “Standard, Additional, or Itemized Deductions….” to #10, “All Credits…” to #11, “Withholding…” to #12, and “Direct Deposit…” to #13.
191 The certification levels of this tax return and volunteer preparer were verified. Check the volunteers’ ID badges for certification levels. (Remember to confirm the SaveFirst volunteer levels and not just the IRS volunteer levels. SaveFirst volunteer levels will be indicated on their ID badges.)Confirm on the Intake Sheet whether non-basic issues appeared. If so, confirm that an Intermediate-level or, as needed, an Advanced-level preparer worked on those parts of the return.The quality reviewer should have at least an Intermediate level of certification. A quality reviewer with advanced level of certification is required for returns that contain Advanced level topics.
192 All unsure boxes were discussed with the taxpayer and correctly marked yes or no. Confirm that all boxes have an answer and were not left blank. Often a taxpayer may accidentally miss one of the questions.If any boxes are still marked unsure, ask the taxpayer about the item in a very clear, explanatory manner to find out if you need to mark yes or no.As you go through the return, if you notice that an item was incorrectly marked yes or no, you should correct the answer on the Intake/Interview form for our records.
193 The information on pages one and two was correctly addressed and transferred to the return. This step will be complete once you follow steps 4-13 below.
194 Taxpayer’s identity has been verified and address and phone numbers are correct. You will do this along with completing Step 5. See instructions below.
195 Names, SSNs, ITINs, and EINs, were verified and correctly transferred to the return. Check the photo ID of the taxpayer and spouse.Verify the information on the Intake sheet by looking at the TaxWise Main Information Sheet. Ask the taxpayer to look at the computer screen with you as you confirm the following information:Spelling of Taxpayer & Spouse NamesMailing AddressDates of BirthPhone Numbers (make sure any and all numbers are listed)Be sure to double-check the social security cards of everyone who appears on the return. Names and numbers must match the cards exactly – including middle initials – or the return will be rejected.
196 Filing status was verified and correct. Confirm with the taxpayer and volunteer that the Pub 4012 was used in determining dependency exemptions. If it was not, you must take a few minutes to go through the decision tree to determine dependency eligibility and remind the volunteer that this is an IRS requirement.You should know enough about the taxpayer’s situation by reviewing the Intake sheet to have a good sense of the filing status. You can briefly double-check the decision tree if the filing status isn’t obvious. If anything about the decision seems complicated, you should consult the Pub 4012 decision tree/questions again.If single, confirm the taxpayer wasn’t married during the tax year.If Head of Household, confirm the taxpayer paid more than 1/2 of the costs of keeping up the home. Also, confirm that if married, s/he did not live with spouse for the last six months of the year.Confirm the filing status on the Alabama return. If Head of Household, confirm if the taxpayer is correctly listed as Head of Family or Single by double-checking that the taxpayer was not considered married. If MFJ or MFS in a same-sex couple marriage, confirm HoH or Single status is correctly listed.Personal and Dependency Exemptions are entered correctly on the return.Check Line 6 on the 1040 for the exemptions listing.Quick check for verification of personal exemptions: (1) If over age 24 and not disabled, cannot be a qualifying child; (2) if earned more than the exemption amount, cannot be a qualifying relative.If either of these cases is not met, you will need to ask a few more questions to determine if the taxpayer can be claimed as a dependent (ex., Did someone else pay more than half of your expenses for the year?) Remember that if the taxpayer cannot claim an exemption for themselves because they can be claimed as a dependent, this box must not be checked for the taxpayer.To confirm dependency status, ask the following: Is there another adult living in the home? What is that other adult’s relationship to the child? Could the other adult be claimed as a dependent? Is there a divorce or other legal agreement allowing another adult to claim the child?
197 Personal and Dependency Exemptions are entered correctly on the return. Check Line 6 on the 1040 for the exemptions listing.Quick check for verification of personal exemptions: (1) If over age 24 and not disabled, cannot be a qualifying child; (2) if earned more than the exemption amount, cannot be a qualifying relative.If either of these cases is not met, you will need to ask a few more questions to determine if the taxpayer can be claimed as a dependent (ex., Did someone else pay more than half of your expenses for the year?) Remember that if the taxpayer cannot claim an exemption for themselves because they can be claimed as a dependent, this box must not be checked for the taxpayer.Confirm with the taxpayer and volunteer that the Pub 4012 was used in determining dependency exemptions. If it was not, you must take a few minutes to go through the decision tree to determine dependency eligibility and remind the volunteer that this is an IRS requirement.To confirm dependency status, ask the following: Is there another adult living in the home? What is that other adult’s relationship to the child? Could the other adult be claimed as a dependent? Is there a divorce or other legal agreement allowing another adult to claim the child?
198 All Income (including income with or without source documents) checked “yes” in section A, part III was correctly transferred to the tax return.Compare W‐2s , 1099s and other income documents with what is recorded in TaxWise. Confirm all amounts are listed on the forms in TaxWise.The 1099‐MISC with amount in Box 7 should be reported on a Schedule C or Sch C‐EZ . If there is a loss or if expenses exceed $10,000, this return is out of scope for out VITA tax site.If the taxpayer has a 1099‐R , confirm that the volunteer has determined if it is a defined benefits plan by checking the list or calling the customer service number of the plan administrator. If it is a defined benefits plan, Box 1 must be checked in TaxWise (lower left). If it is defined benefits, it will not be taxable on the Alabama state return, but you will need to list this amount on the AL-40 as income not appearing on the state return.Double-check that if a taxpayer is disabled and received a 1099-R with Code 3 that the appropriate box is checked on the 1099-R in TaxWise.When checking income documents, be sure to confirm that withholding and the Employer’s Federal ID Number (EIN) are correctly reported.
199 Adjustments to Income are correctly reported. Check Educator Expenses, Alimony paid, IRA Deduction for contribution to traditional IRA, Student Loan Interest, Tuition and Fees Deduction, jury duty pay given to employer.Confirm the amounts listed on the forms linked from the 1040 are accurate based on the taxpayer’s records and documents and that the amounts have been listed in the appropriate lines.Note that either the Tuition and Fees Deduction or an Education Credit can be claimed per person. You cannot claim both for the same person. If the Tuition and Fees Deduction has been entered in TaxWise, ask more questions about why the Education Credit was not utilized. If the taxpayer does not seem to know, you should ask the volunteer. If the taxpayer qualifies for a credit, you may need to re-enter the information to determine if the education credit would be more beneficial than the deduction.
200 Standard, Additional or Itemized deductions are correct. Review the deductions that have been entered for accuracy. Check the Sch A, even if it is not pulling through to the federal return, for any amounts that were listed to confirm the information was entered correctly. Remember that these amounts may still pull through to the state return.Confirm with the taxpayer that they did not have any other itemizable expenses, such as out-of-pocket medical expenses or prescriptions, tax preparer fees, charitable contributions, mortgage interest or insurance premiums, real estate taxes or ad valorem car tax.Note that mortgage insurance premiums do not always appear on the 1098 statement. Confirm with the taxpayer whether they paid mortgage insurance premiums and make sure this is recorded on the proper line. (Note that homeowner’s insurance for fire, flood, or theft, etc., is not the same as mortgage insurance premiums, or MIP.)
201 All credits are correctly reported. These include the Earned Income Tax Credit, Education Credits, the Child & Dependent Care Credit, the Retirement Savings Contribution Credit, the Foreign Tax Credit, and Residential Energy Credits.Confirm all amounts that have been entered against the taxpayer’s documents and records. Double-check qualified education expenses were calculated and listed correctly.If a taxpayer is not receiving the EITC or Child Tax Credits, do a quick mental evaluation of whether that seems right. If you think perhaps they should be getting those or that the amount should be higher, double-check that the correct boxes were checked in the Interview portion of TaxWise for dependent information and that the appropriate worksheets have been completed accurately.
202 Withholding shown on Forms W-2, 1099 and Estimated Tax Payments are correctly reported. You should have checked withholding when reviewing Income documents.Ask: Did you make any estimated tax payments during the tax year? This means money that you sent to the federal government over and above what was already taken out of your paycheck.
203 Direct Deposit/Debit and checking/saving account numbers are correct. You should compare these numbers to the check and also ask the taxpayer to do the same.Double-check information entered on the 8888.Double-check information entered on both the federal and state returns.
204 The correct SIDN is shown on the return. This should be provided to you by the site coordinator. It can be found at the bottom of the Main Information Sheet. The correct site location should be listed here next to the SIDN.
205 The taxpayer(s) was advised that they are responsible for the information on their return. Tell this to the taxpayer.After you complete the quality review...If the taxpayer is still concerned with the size of the refund, be sure to discuss with the taxpayer what might have changed from last year to this year to affect the size of the refund. Ask to see last year’s return in order to compare numbers if the taxpayer is still concerned or confused. If they came to a SaveFirst site last year, you can pull this up in prior year TaxWise.Make sure the taxpayer understands what to do if they owe a balance.If you have time, once the return is printed, go through the 1040 pages 1 and 2 and give a brief explanation of what their tax return says, including the following:Show them the income section and state how much money they earned for the year.Show them any adjustments that were taken and explain that adjustments help reduce the amount of income they will be taxed on.Point out their “AGI,” or “adjusted gross income.”Show that the standard deduction (or itemized deductions) and exemptions also reduce the amount of income they will be taxed on.Compare their taxable income to their total earned income to drive home this point.Show the amount of tax that they owe, and then explain that their withholding during the year covers this amount.Show them any tax credits they took and how that affected the tax owed or refund amount.Thank the taxpayer for coming in and hand him or her a few postcards advertising the site. Request that he or she give these to friends and family.Remind the taxpayer to come back next year.
206 Let’s Conduct a Quality Review! With a partner, complete a thorough Quality Review of each other’s Fleming tax returns.Discuss any issues you come across with your “taxpayer” (partner) and ask any relevant questions.
207 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
208 Campus Fellow ManualUSE THIS AT THE TAX SITE!!
209 Campus Fellow Manual Tab 1: Site Information Remember: Each tax site has a unique Client ID! Make sure you use the correct Client ID!Important phone numbers, Local IRS and SSA OfficesAlways talk to your Site Coordinator if you have questions BEFORE calling one of these numbers with a question or referring your taxpayer to any of these numbers.
210 Campus Fellow Manual Tab 2: Site Organization and Set-Up Site Coordinator’s Daily Checklist: Ask your site coordinator how you can assist them!Day-Before Call Script, pg. 6Documents/Forms to be kept on site (just for reference)
211 Campus Fellow Manual Tab 3: Volunteer Information Volunteer FAQ Volunteer Etiquette GuideWhat Issues Can I Handle? (Campus Fellows are Intermediate)Scope of Service ChartForm C Intake/Interview Job Aid for VolunteersRead through this before coming to the tax site!
212 Campus Fellow Manual Tab 4: Finishing a Return Pgs : Process for Conducting a Thorough Quality ReviewUSE THIS EVERY TIME you do a Quality Review!!Consent to Use and Disclose Forms (Read through this before you come to the tax site)Paper ReturnsAmended Returns
213 Campus Fellow Manual Tab 5: 1040 and Forms Form 1040 Form AL-40 Alabama Tax LawsVarious Income FormsImportant information re: codes on 1099-Rs, W-2sItemized Deductions1098-T Tuition Statement InformationAdditional forms you may see
214 Campus Fellow Manual Tab 6: Save Your Refund Completing Form 8888 Entering taxpayers into the prize drawing
215 Campus Fellow Manual Tab 7: Alabama Exempt Defined Benefits Plans Lists defined benefits plans exempt from AL taxesCheck this list first when trying to determine if a plan is defined benefits
216 Campus Fellow Manual Tab 8: Campus Fellow Summary Chart Line by line instructions for entering taxpayer information into TaxWise
217 Training Outline Basic Level Updates Social Security and Lump Sum Election MethodState Tax RefundBusiness IncomeRetirement IncomeAdjustments to IncomeItemized DeductionsIntermediate CreditsPaper & Amended ReturnsAdditional Topics on 2013 Advanced TestAdditional DutiesQuality ReviewsCampus Fellow ManualVolunteer Paperwork
218 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.
219 Ethical ViolationsAn ethical violation is a knowing breach of any of the volunteer standards of conductAll VITA volunteers must undergo training on volunteer standards of conduct to avoid ethical violationsThe IRS uses reviews called SPEC QSS to determine the accuracy rate and possible violations at tax sites.
220 Ethical ViolationsConsequences of intentional violations impact both the volunteer and the organizationThe volunteer may be removed from VITA and face criminal investigationSaveFirst might lose its IRS grants and the EFIN number that allows it to operate tax sitesNOTE: 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.
221 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.
222 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.
223 Other ViolationsVITA 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.
224 Other ViolationsIf 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.
225 Standards of Conduct Test All volunteers must complete and pass the Volunteer Standards of Conduct Test before volunteering at the tax siteTake 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 examTurn in to your trainer when you finish
226 Schedule and Online Availability Forms You will be scheduled for regular weekly shifts between January 20 – March 8 based on your Campus Fellow AgreementOn Saturdays, you should be prepared to travel (e.g., Decatur, Montgomery, Gadsden, etc.)You will be reimbursed for mileage and meals. Please complete the appropriate Campus Fellow availability form online ( You must complete this form NOW.
227 Volunteer PaperworkIf you did not attend the fall training in person, please fill out the following forms and return them to your trainer:Volunteer AgreementConfidentiality and Liability FormMedia ReleaseW-9If we do not have this paperwork, you cannot receive your stipend or reimbursement!
228 CertificationRemember to take the IRS Advanced Certification by JANUARY 17.Use Classmarker to submit your answers.The link to Classmarker is at