finishing touches - aarp foundation tax-aide...
TRANSCRIPT
YOU ARE NOT DONE YET
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●Review intake-Interview
●View return
● [continue] to e-file
●Select Federal Return type
●Select State return type
Intake/Interview
●Confirm with taxpayer: −Estimated tax payments
−Apply last year’s refund to this year’s tax
−Check last year tax form for clues
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Estimated Payments
● Typically made if: − Self-employed − Investment income − Projected balance due >$1,000 (to avoid
penalty)
● Payments made periodically by taxpayer
● No form – ask taxpayer if payments made − “When” and “How Much” for each − Check last year’s Form 1040-ES
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Refund or Payment?
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● In TaxSlayer, amounts are shown at top of screen, −Green is a refund
−Red is owed
●Also on 1040 view, Lines 63 – 78
●Client has choices
Refund Options
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● Receive refund by check
● Receive refund by Direct Deposit − One account -OR- − Split refund
▪ Up to three different accounts ▪ Can deposit to MyRa account ▪ Can purchase US Series I Savings Bond ▪ Can receive a portion in a check
● Apply some or all to next year’s tax
Direct Deposits
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● Encourage Direct Deposit – Pub 4012, Pg K-16 − Faster (1-2 weeks versus 3+ weeks by
mail) − Safer
● Best to take numbers from current check with nine-digit routing transit number and account number
Direct Deposits
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● IRS will send refund to savings account, but its routing transit number is often not easy to locate
● IRS recommends direct deposit of refund go only to account (or accounts) in taxpayer’s name
● Financial institutions may not allow joint refund to be deposited into an individual account
Apply Refund to Next Year
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● In Payments & Estimates section, select Underpayment of Estimated Tax
Apply Refund to Next Year
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●May be reduced if IRS makes adjustment to return
Payment Due Options— (By April 18th)
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● Check or money order mailed with Form 1040-V, Payment Voucher − TaxSlayer will prepare voucher
● Electronic funds transfer (ACH)
● IRS Direct Pay
● Credit card (may have additional fee)
● Electronic Federal Tax Payment System (EFTPS)
Pub 4012, page K-18
Payment Due—Direct Pay, Credit Card or EFTPS
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●Taxpayer does on own through irs.gov/Payments
Pub 4012, page K-18
Full Pay in 60 or 120 Days
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● No user fee
● Interest and penalties apply on amounts paid after April 15
● Apply online at irs.gov/Payments Online Payment Agreement Application
● File return on time or penalty is much higher!
Installment Payments
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●Through www.irs.gov/payments OR
● In Miscellaneous Forms section, select Installment Agreement (Form 9465)—NEW HIGHER FEES
Line 77 Estimated Tax Penalty
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● If tax owed is $1,000 or more AND
● Withholding and estimated payments less than the smaller of: − 90% of tax shown on current tax return
OR − 100% of tax shown on 2015 tax return
● Advise the taxpayer of possible penalty
Line 77 Estimated Tax Penalty
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●We do not calculate penalty
● IRS will automatically compute whether penalty is due based on current year or prior year’s facts
● IRS will send notice and bill if appropriate
Quality Review
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●No estimated tax penalty shown
●Verify bank information if direct deposit or direct debit
●Verify ACH forms are correct
●State refund or balance due options?
Summary with Taxpayer
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● Refund or balance due
● If paying balance due by check, ensure understands when/how to mail it
● If under or over withheld − Revise withholding – Forms W-4 − Estimated taxes (another lesson)
● If possible penalty, be sure taxpayer is aware may receive notice/bill from IRS
PAPER WORK
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● Set the return tag
− Click on Return Tag in e-file area
● Log return on your Activity sheet
● If incomplete prepare “Pink sheet”
● Print return, Review return
● Have client sign the 8879 and state form
● Guide client to QC
RETURN TAGS
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● 1 E-FILE FINISHED
● 2 E-FILE HOLD 8879
● 3 E-FILE INCOMPLETE
● 4 DO NOT FILE
● 5 PAPER FINISHED
● 6 PAPER INCOMPLETE