1NTTC Training 2011

WHAT'S NEW IN 2011Highlights

Certification Process Ordering Training ProductsNew and Extended Tax

ProvisionsOther Items – 2011 and beyond

2NTTC 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

3NTTC 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 WorkbookPub 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.

4NTTC 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?

5NTTC Training 2011

SCH D & FORM 8949

Schedule D for 2011 – has new reporting lines using Form 8949NEW

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

6NTTC 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.

7NTTC 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.

8NTTC 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

9NTTC Training 2011

NEW PREPARER USE FORMboth 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.

10NTTC 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

11NTTC 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

12NTTC 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)

13NTTC 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)

14NTTC 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

15NTTC Training 2011

IRS CHANGESFOR 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

16NTTC Training 2011

WHAT’S NEW IN 2011

QUESTIONS?

COMMENTS?