1. Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise software. For tax law information please consult FTB 5130, Volunteer Reference Manual, or the 540 Booklet.

2. Where do I get help? Volunteer Hotline – 1.800.522.5665 Operating hours – Monday thru Friday 8 am until 4:30 pm Volunteer Reference Manual – FTB 5130

3. Are You Ready? Let’s Begin!

4. State View of TaxWise

5. In the State Information Section, full year resident box, set CA as the default state. Required Field

6. Use 999999 when State ID number box is blank. SDI is often found in Box 14 of the form W-2. Always enter SDI amounts in boxes 19 and 20.

7. Check to change social security and Medi-care income and tax amounts. Check to change the amount of state wages.

8. Enter SDI 2 times on the W2

9. AND NOW FOR THE GOOD NEWS! Most California tax information flows automatically from the federal return.

10. When does TaxWise need your input? Let’s look at the most frequently used screens.

11. Renter’s Credit

12. Every question on this form helps the software to correctly calculate the Renter’s Credit.

13. The renter’s credit amount on the worksheet may differ from the amount on the return. Why?

14. Do we “Get the red out?” Why is this important?

15. The state form requires unearned income information. Enter percentage of physical custody.

16. Enter bank information on the New Interest Statement for correct flow through in TaxWise.

17. Exempt Interest Income from a Mutual Fund Tribal Income of a Tribal Member (FTB Pub 674) Railroad Retirement Taxable Refunds Unemployment/Paid Family Leave ADJUSTMENTS TO LOOK FOR

18. Savings Bond/Treasury Note Interest IRA Adjustment California Lottery Capital Loss Carryover US Social Security & Foreign Social Security For a complete list – get FTB Publication 1001 ADJUSTMENTS TO LOOK FOR

19. Capital Loss Carryover Enter in Box 6, as a negative number.

21. IRA Adjustment

22. More Good News! TaxWise automatically calculates the California adjustment for Unemployment and Social Security.

23. Railroad Retirement needs a little help.

24. There are rarely any adjustments on this line. Certain tribal income is a direct entry on the CA CA.

25. Did the software tax the correct income for California? This form tells the tale.

26. When filing a HOH return, the HOH Schedule is a required form for electronic filing.

28. On Form 5805, always override estimate penalties to zero.

29. Electronic signature options should be set as a default. Choosing a refund method is up to the taxpayer, and the input to the volunteers !

30. For Federal tax owed/state refund, check the different account box on 540, Page 2, and then re-key the bank account information. Even if it is the same account.

31. For a federal refund/state balance due, check the Electronic Filing Only option. TaxWise defaults red all fields that must be re-keyed.

32. How to set next year’s estimate payments using TaxWise.

33. Give the California 8879 form to the taxpayer to keep with their records.

34. RDP filing is a senior issue.

35. Diagnostics Make A Difference Informs the volunteer of efiling errors made on the state return. Gives important information on how the volunteer can fix the error.

36. What Publications Will Help? 540 Booklet 540 Booklet Publication 1001 – California Adjustments Publication 1001 – California Adjustments Publication 1005 – Pension and Annuity Guidelines Publication 1005 – Pension and Annuity Guidelines Publication 1540 – California Head of Household Publication 1540 – California Head of Household

37. Begin with the Main Info Screen Happy Retiree – DOB 05/12/1939 - Retired Happy Retiree – DOB 05/12/1939 - Retired Spouse Retiree – DOB 12/01/1940 – Student Spouse Retiree – DOB 12/01/1940 – Student Address – 2222 22 ND Street, Sacto., CA 95814 Address – 2222 22 ND Street, Sacto., CA 95814 Use a Practice SSN Use a Practice SSN Phone Number – 916.444.4444 Married Filing Joint filing status Direct Deposit for refund Routing: 121000358 Account: 001500155 Practitioner Pin

38. What! An exercise? Darn, just when I thought I could catch a NAP!

39. Next Step – 1099R & Income FED ID - 94-0123456 FED ID - 94-0123456 $40,000 FED and CA Pension $40,000 FED and CA Pension $2500 FED withholding $2500 FED withholding $500 CA withholding $500 CA withholding $19,000 Social Security Income $19,000 Social Security Income Taxpayer’s address is correct $17,000 Capital loss carryover No State ID listed $75 Bank Interest & $25 Savings Bond Interest

40. Additional Information The Retirees take the standard deduction. The Retirees take the standard deduction. They rent a duplex from their daughter. Landlord address: 2223 22 nd Street Sacramento CA 95814. They rent a duplex from their daughter. Landlord address: 2223 22 nd Street Sacramento CA 95814. The Retirees sold their home in 2009 and moved into the rental 06/25/2009. There was no taxable gain on the home sale. Spouse paid $500 tuition in 2009.

41. AGI $45,310

42. Questions?