Lesson 1 Course Introduction

Transcription

1 Lesson 1 Course Introduction OBJECTIVES: 1. Identify five keys to preparing a correct tax return 2. Correctly utilize IRS Intake Form and interview techniques 3. Define due diligence 4. Know about your resource materials and how to use them

2 Five main ingredients to preparing an accurate tax return: 1. IRS Intake Form and interview questions 2. Exercise due diligence with taxpayer information 3. Understanding and correctly applying tax law 4. Entering data correctly in TaxSlayer software 5. Using your 4012 Resource Guide with #3 and #4

3 Understanding and utilizing the connection between: The IRS Intake Form The Form 1040 The 4012 Resource Guide and TaxSlayer software We will keep coming back to these!

4 Intake/Interview - before software! Verify identity with ID, SSNs, ITINs, etc Confirm that all tax documents are present Examine Intake Form Update/correct it as necessary (unsure boxes changed) Find out who all lived in the home in 2017 Gather and clarify any other necessary information

5 Let s look at Intake Form C We use this essential form to gain a sense of what a taxpayer s return will include General taxpayer information Dependent information Income Expenses Life Events Used as basis for Form 1040 (the Federal tax return)

6 Intake Form C Review the intake and interview sheet carefully with the taxpayer to ensure that all questions in Part III have been addressed and answered correctly. Use probing questions to confirm the accuracy of the taxpayers responses (i.e. instead of Are these all your W- 2s? ask How many jobs did you have last year?, instead of Did you provide over half the costs of the home? ask Who all lived in your home? Who paid the bills? ) Correct or update the intake and interview sheet if missing information or an error is identified. Provide clarification and assist the taxpayers with all questions that have been marked Unsure. Questions marked Unsure must be changed to a Yes or No response.

7 Be alert for conflicting information. Sometimes an entry on one part will raise a question on another part of Form C. For example: "I see that you and your husband both worked, yet you did not indicate you paid any child care expenses for your 3 year old son." I see that you are over the age of 65, yet you did not indicate that you received Social Security benefits. I see that you answered No to the question Can anyone claim you on their tax return? however, you are a full time student and live with your parents.

8 What is due diligence? Who would like to describe this concept to us? (from the IIQR training )

9 Due diligence = Doing your part and taking reasonable steps to ensure tax returns are correct and complete! This means: Question - and ask for clarification of - any unusual, inconsistent or incomplete items Making the effort to research the answer

10 When reviewing information for its accuracy, you need to ask yourself: Is the information Unusual or Questionable? If so, see your Site Coordinator immediately!

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12 Unsure of the answer? Take initiative and make an effort to find it! Some of your resources: Reference/research publications (i.e. Pub 4012, Pub 17, etc.) Seek assistance from a more experienced volunteer Seek assistance from the site coordinator. Research for your answer. Research the Interactive Tax Assistance (ITA) to address tax law qualifications. Contact the VITA Hotline at TaxSlayer Help

13 What resources are available to you? IRS Form C, Intake/Interview Sheet Pub 4012, Volunteer Resource Guide Pub 17, Your Federal Income Tax TaxSlayer software help options to come! Site Coordinator plus fellow preparers and Quality Reviewers

14 Resource Guide 4012 Your best friend! Helps determine answers to tax law questions such as filing status, who qualifies as a dependent, how to use the tax software, etc. You will bring this each time you volunteer!

15 Using your resource materials Your resource materials, especially the 4012, greatly aid in having success as a volunteer Not about memorizing tax law and software information, it s about looking for and finding the answers take the initiative!

16 Let s do a search! In your Resource Guide 4012 Filing Status Decision Tree page Starting a New Return pages How/Where to Enter Income page Questions Chart to assist in determining if person is Qualifying Relative dependent

17 Lesson 2 Filing Basics: Who must file a tax return? OBJECTIVES: 1. Know who must file a tax return 2. Know who should file a tax return

18 Lesson 2 Filing Basics: Who must file a tax return? To know who must file, you need to know individual s: Age Gross Income Filing Status Turn to Resource Guide 4012 pages A-1 and A-2 for Federal tax return minimums

19 *If individual has over $400 of self-employment income, they are required to file a tax return!

20 But for Oregon tax returns The (last year, TY2016) minimum amount of income one can earn is much lower Single filing status as low as $5,900 If you are someone else s dependent could be as little as $1,050

21 So you re not required, but should you file? Good rule of thumb = yes! Always the possibility of a refund, especially if they are low-income (tax credits to receive) If they have any withholding, should definitely file Who can tell us what withholding is? Never know when you may need to have your tax return/prove you have filed taxes: always best to have done it!