1. 1 NTTC Training 2011 WHAT'S NEW IN 2011 Highlights Certification Process Ordering Training Products New and Extended Tax Provisions Other Items – 2011 and beyond

2. 2 NTTC Training 2011 TRAINING & CERTIFICATION  All Volunteers need to be certified. New!  All must pass IRS Standards of Conduct test with 80% accuracy  All must sign new Volunteer Standards of Conduct  All Counselors must pass IRS test at 80%, Basic, Intermediate & Advanced levels, using Pub 6744 or IRS Link & Learn test system

3. 3 NTTC Training 2011 ORDERING TRAINING PACKETS  Two types of training packets  Pub 4491 Kit – hard copies of:  Pub 4491 - Training Guide  Pub 4012 - Resource Guide (Spiral Book)  Pub 4491-W - Problem Workbook  Pub 6744 - Test & Retest  Pub 4480 Kit – CD of Pub 4491 with hard copies of Pubs 4012, 4491-W and 6744  Instructors will receive 4491 Kit; Counselors will receive 4480 Kit.

4. 4 NTTC Training 2011 TRAINING PACKETS, cont’d  Link & Learn Training has been redeveloped  All Counselors can now use L & L Test.  More people use online for tax law training and learning TaxWise.  IRS - SPEC's ultimate goal is to have all partners transitioned to e-learning products and training by 2014.  Goal of changes is to encourge migration to more e-learning and decrease printing costs.  How do we move sensibly in this direction?

5. 5 NTTC Training 2011 SCH D & FORM 8949  Schedule D for 2011 – has new reporting lines using Form 8949 NEW  Form 8949 has codes and three check boxes to be completed for each line entry  For each asset sold, the 1099 will have an A/B/C designator:  Box A – Cost basis shown on 1099-B  Box B – Cost basis not shown on 1099-B  Box C – No 1099-B received

6. 6 NTTC Training 2011 SCH D & FORM 8949, pg 2  Assets can no longer be entered on Schedule D.  All assets information goes on Forms 8949  Page 1 is for short term; Page 2 is for long term.  In TaxWise, Capital Gain or Loss Transactions Worksheet will load 8949’s and put assets on apprpriate pages.

7. 7 NTTC Training 2011 SCH D & FORM 8949, pg 3  Long Term/Short Term Capital Gains/Losses Wkts will no longer be in Forms list  A/B/C designators will be located on Cap Gain Wkt under 1099 column  Column (b) is code for adjustments to gain/loss, wash sales, exclusion of gain on main home, etc  Column (g) is the amount of the adjustment  See MA TaxAide website (www.matax-aide.com) for more detail.

8. 8 NTTC Training 2011 SCH D & FORM 8949, pg 4  Column (b) is for gain/loss adjustment codes; see F1 help and Form 8949 instructions  Column (g) is for amount of adjustment

9. 9 NTTC Training 2011 NEW PREPARER USE FORM both TaxWise Desktop and Online  Dedicated to Preparer’s Use Fields  Prep Use Fields no longer on Main Info Sheet  Prep Use Fields increase from 15 to 25  Standardized to 15-character alphanumeric  Enter up to 25 questions in column A  All Preparer Use Field entries will be stored for reporting purposes.

10. 10 NTTC Training 2011  Taxpayer Reminder Field will be added  Enter information you need to convey to preparer for following year  Will automatically display when return is started in TY 2012 (January 2013)  Mandatory Fields for TaxWise (see MA HB)  Field 13 - Initials of Preparing Counselor  Field 14 - Initials of Quality Reviewer  Field 15 - Site Identification Number (SIDN)  Field 16 - Type of Quality Review PREPARER USE FORM, cont’d

11. 11 NTTC Training 2011 STANDARD MILEAGE RATES IN 2011  51¢/mile for business miles (55.5¢/mile effective 07/01/2011)  19¢/mile for medical or moving (23.5¢/mile effective 07/01/2011)  14¢/mile for charitable service  Use of car, vans, pickups or panel trucks included

12. 12 NTTC Training 2011 EXTENDERS THRU 2011  Qualified Charitable Distributions from certain individual retirement plans  Deduction for educator expenses  Tuition and fees deduction  Itemized deduction for sales taxes  Private mortgage insurance deduction  Non-business energy property credit (with significant limitations)

13. 13 NTTC Training 2011 EXTENDERS THRU 2012  American Opportunity Tax Credit  Child tax credit of $1,000 and the earned income threshold of $3,000 for the child tax credit  EITC increased credit for three or more qualifying children (thru 2012)

14. 14 NTTC Training 2011 NON-BUSINESS ENERGY PROPERTY CREDIT  Combined limits of $500, $200 for windows, for all tax years after 2005 (Form 5695, Pt I)  MUST ask about prior year energy credits  Maximum 2011 for residential energy property  $50 for advanced main air circulating fan  $150 for qualified natural gas, propane, or oil furnace, or hot water boiler  $300 for energy-efficient building property

15. 15 NTTC Training 2011 IRS CHANGES FOR VITA-TCE  No second copy of Form 8879 and income attachments, i.e. W2s’, 1099s’, etc retained at the site or by the ERO  SPEC no longer requires (or allows) copy for storage; taxpayer still signs single copy prior to efile submission and retains the copy with their tax records  See MA Tax-Aide website for sample ERO log.  Consider using ‘Return stage’ or ‘Client Letter’ to track status.  Lump-sum social security payments are included as Basic competency  Use of numbers from previous year returns in scope this year

16. 16 NTTC Training 2011 WHAT’S NEW IN 2011 QUESTIONS? COMMENTS?