The Ohio Benefit Bank TM · Food Assistance Program (formerly known as Food Stamps) Free Application for Federal Student Aid (FAFSA) Golden Buckeye Health Care Programs for Families

The Ohio Benefit BankTM

Tax Guide

Tax Year 2012 Version 1

© 2013 by the Ohio Association of FoodbanksAll Rights Reserved.

To access updated tax guides, login as a counselor and click the training tab from the counselor portal.

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ContentsQuick Reference ..........................................................................................................vi

OBB Regional Contacts ..............................................................................................vii

Icons & What They Mean ..........................................................................................viii

Section One: Introduction and Beginning TBB PracticeOrganization Map ......................................................................................................12

Your Role as an OBB Counselor ...............................................................................12

Supported Programs .................................................................................................13

Client Session Flow ...................................................................................................14

Accessing The Ohio Benefit Bank website...............................................................15

QuickCheck ................................................................................................................16

Accessing the Training Website ................................................................................17

Understanding the Counselor Portal .......................................................................18

Client Creation ...........................................................................................................20

Client Login and Agreements ...................................................................................21

Understanding the Client Portal Page .....................................................................22

Understanding the Benefit Homepage ....................................................................23

Summary Pages ........................................................................................................24

How To Make Changes..............................................................................................24

Where to Find Help ...................................................................................................24

The Help Desk ...........................................................................................................25

Section Two: Tax Guide and Continued TBB PracticeThe Basics .................................................................................................................29

Filing Status ...............................................................................................................30

Qualifying Child..........................................................................................................33

Qualifying Relative.....................................................................................................35

Qualifying Person Quick Reference ..........................................................................36

Income .......................................................................................................................38

Adjustments, Deductions, and Exemptions ............................................................41

Non-Refundable Tax Credits .....................................................................................46

Refundable Tax Credits .............................................................................................48

Filing Your Return ......................................................................................................51

How to Sign an E-File ................................................................................................52

After Filing ..................................................................................................................53

Free Application for Federal Student Aid (FAFSA) ...................................................56

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Knowledge Evaluation ..............................................................................................57

Alvarez Family Scenario ............................................................................................58

Section Three: Additional ResourcesHow to Order OBB Marketing ...................................................................................67

Tax Clinic Kit ..............................................................................................................67

Terms and Conditions of Use ...................................................................................68

OBB Mobile Express ..................................................................................................69

Extra Practice Scenarios ...........................................................................................70

OBB Counselor Quick Reference ..............................................................................85

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Quick ReferenceWebsites & Login Information for The Ohio Benefit Bank (OBBTM)

Your Counselor Loginwww.ohiobenefits.org

Login Name:

Password:

Training Logintraining.thebenefitbank.org

Login Name: oh_____

Password: tbb12345

Important Phone NumbersThe Benefit Bank® Help Desk

1.855.TBB.HELP (855.822.4357)

The Ohio Benefit Bank

1.800.648.1176 or 614.221.4336

Ohio State Legal Services

1.866.529.6446

Helpful WebsitesJob and Family Services Information Center

http://jfs.ohio.gov/ocomm_root/0001InfoCenter.stm

Locate your Community Action Agency

http://development.ohio.gov/community/ocs/locate.htm

Check the status of a HEAP application

http://development.ohio.gov/Community/ocs/energyhelp.htm

FAFSA PIN Retrieval

www.pin.ed.gov

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OBB Regional Contacts

________________________________________

Your Regional Coordinator

_______________________________________

RC Email

______________________________________

RC Phone Number

Regional Coordinator (RC)

________________________________________

Your Community Organizer

______________________________________

CO Email

______________________________________

CO Phone Number

Americorps VISTA Community Organizer (CO)

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Icons & What They MeanWith the hope of helping your training flow smoothly and to remind you of important concepts you will find four icons throughout this manual.

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Bright Idea

Tips and recommendations to help your OBB session flow smoothly.

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Remember

Important information to remember.

TBB Practice

Indicates that it’s time to turn to your computer and practice on The Benefit Bank (TBBTM) training website.

TBB PRACTICE

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What’s This?

Answers to frequently asked questions.

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Section OneIntroduction and Beginning TBB PracticeOverviewEach year, more than $2.2 billion in tax credits and work support programs go unclaimed by Ohioans. Nearly 95 percent of these dollars are federal funds and must be returned for re-allocation to other states or programs.

The Ohio Benefit Bank (OBB) strives to assist Ohioans in accessing these dollars as:

▪ They are revenue for our local economies.

▪ They help stabilize families.

▪ They help low- and moderate-income people overcome the devastating effects of poverty.

ImplementationThe Ohio Benefit Bank is a program of the Ohio Association of Foodbanks and is implemented through a public-private partnership between the State of Ohio, four federal agencies, nine state agencies, and over 1,100 faith-based and community organizations across Ohio.

Key Features ▪ Internet-based

▪ Question-guided

▪ Counselor-assisted

▪ An eligibility estimator and application completion tool

▪ Secure and confidential

▪ The expertise is built into The Benefit Bank; you do not need to be a benefits or tax expert to be an OBB counselor

▪ Easy to use, simple instructions, no math required

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Page 12 • Section One

Organization Map

The State of Ohio Solutions for Progress “The Benefit Bank”

Funding and SupportTBB Programming &

Maintenance, Help Desk

Lead Agencies

Ohio Association of FoodbanksLead Agency, Training, Grants, Coordination, and Marketing

Your Role as an OBB CounselorAn OBB Counselor DOES:

▪ Complete required training

▪ Attend update training, including tax year refresher training

▪ Verify client identity, if required

▪ Interview the client and enter responses into The Benefit Bank

▪ Provide a printed copy of client forms

An OBB Counselor DOES NOT: ▪ Sign client forms or tax returns

▪ Charge for services, solicit or accept donations for Benefit Bank services

▪ Help clients make decisions

▪ Steer clients toward a certain choice

▪ Store client applications, client documentation, or client login names or passwords, on site, on a computer, or on a computer server

▪ Determine final eligibility on programs for which a client applies

Page 12 • Section One Section One • Page 13

Benefit ProgramsNote: This module requires additional training. Contact your community organizer for more information.

Note: The agency providing benefits will always make the final determination regarding client eligibility.

Bureau for Children with Medical Handicaps (BCMH)

Child and Family Health Services (CFHS)

Child Care Assistance

Extra Help for Medicare Part D

Food Assistance Program (formerly known as Food Stamps)

Free Application for Federal Student Aid (FAFSA)

Golden Buckeye

Health Care Programs for Families and Children

Home Energy Assistance Program (HEAP)

Medicaid for Aged, Blind or Disabled

Medicare Premium Assistance

Ohio Works First (OWF)

Ohio’s Best Rx

Senior Community Service Employment Program (SCSEP)

USDA Child Nutrition Programs

Veterans Education Benefits

Vocational Rehabilitation Services

Women Infants and Children (WIC)

Supported ProgramsFederal and State Tax Returns Nearly any household that makes under $60,000 can use The Benefit Bank to file their federal and state returns.

The Benefit Bank screens for various credits, including the Earned Income Tax Credit (EITC), which are often missed by tax filers otherwise.

Clients can e-file and receive their refunds in 14 days or less.

Clients may also file up to three years of back taxes.

Voter Registration

Clients can complete the National Voter Registration Application or change registration information, like name, address, or political party affiliation.

Self-Serve Program

Clients may apply for benefits and file taxes without the assistance of an OBB counselor at: www.ohiobenefits.org


Client Session FlowThe chart below maps the typical flow of a TBB session with a client. It is important that OBB counselors learn the steps and tasks involved. The following pages describe these core tasks in detail. You will also learn these tasks as we practice with hands-on client scenarios.

1. Intake

Set expectations

Review client documents

Review Terms and Conditions of

Use with client

2. Login Process

Go to ohiobenefi ts.org

Log into your counselor account

3. Filing the Return

Create a client account OR Log

into existing client account

Review application/tax

return.

Print Forms1 copy for

e-fi le, 2 for pa-per fi les

Review follow- up instructions


Accessing The Ohio Benefit Bank websiteGo now to: www.ohiobenefits.org

This website serves as a portal for both self-serve clients and OBB counselors.

Save this web address in favorites or bookmarks to

quickly access later.

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Self-Serve Program: apply for benefits, file taxes and FAFSA, on your own, without the assistance of an OBB counselor

QuickCheck: check potential client eligibility in just a few minutes

Site Locator: find an OBB site near you


QuickCheckThe QuickCheck calculator is a tool you can use to help find out a person’s potential eligibility for various benefits and work support programs within a few minutes.

Advantages of QuickCheck:

▪ You do not have to be an OBB counselor to use QuickCheck

▪ Very little personal information is required and it will not be saved

▪ You can use QuickCheck as a pre-screening tool before scheduling a counseling session with a client

How to Use QuickCheck

5. The amount of stars under a program or tax credit indicates how likely a person is to be eligible.

Two or more stars generally indicates a good possibility that a person would qualify for a program or tax credit.

2. Choose Ohio and click “Continue”3. Enter each household

member separately

4. Enter client’s household information and click “Finish”

1. Click “QuickCheck” located on the right side of the OBB website


Accessing the Training WebsiteThe Benefit Bank training website acts as a mirror to the live site. You may practice using TBB on this site any time without worrying about submitting fake client information.

Never assist real clients using the training website and do not enter training clients into the live site. The training site is red, the live site is green.

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To access the training site:

1. Go to:

http://training.thebenefitbank.org

2. In the Login Name box, enter the letters oh followed by any number between 1 and 500. You do not have to memorize these numbers, as any set of numbers will allow you access to the training site

3. The password is always tbb12345

If you see an “Authentication Failed” message, pick a different set of numbers and try again.


Understanding the Counselor PortalThe counselor portal is the first page you’ll see when you log in to TBB as a counselor. This “main” page allows you to log in an existing client, create a new client account, reset a client’s password, and check basic eligibility with QuickCheck.

Client checklists, fact sheets,

“steps” pyramids

Refresher Courses Updated Guides

Your counselor profile, update changes of contact information here (ex: new

email address)

Your agency name will

appear here

Create a NEW client

account

Log in an Existing Client

Reset a client’s password

(requires client login name)


Documents TabThis tab contains everything you need to assist clients as they apply for benefits or file tax returns. The Basic Information folder contains agreements and TBB’s technical requirements. The Taxes tab contains check lists, and the Summary of Limitations.

Terms and Conditions of

Use: Clients will electronically

agree to these terms inside TBB.

Federal Taxes Checklist: List of documents clients should bring to a tax appointment.

Summary of Limitations: Situations

that prevent individuals from using TBB to file their tax return.


Client CreationEach OBB client must have a personal TBB account. Counselors structure the client login name and clients choose their own password, security question, and answer.

It is important that counselors:

▪ Have each client write down their login names/passwords

▪ Standardize the structure of client login names for you or even your entire agency

For example: <client last name><client date of birth> or smith01051980

▪ Let clients know that passwords must be 8 characters long, alpha/numeric

▪ Allow clients to enter their own password, security question, and answer

TBB PRACTICE

Create a client: Donna BrewerSelect “Create a client” from the counselor portal.

We will use Donna Brewer’s account throughout the rest of your training today.

WRITE DOWN THE LOGIN NAME/PASSWORD you created for her below:

Login Name

_____________________________

Password

_____________________________Choose a UNIQUE

login name. Do not use

dbrewer007.

When done, click Save


Client Login and AgreementsAllow Client to LoginWhen you have successfully created the client account, you will return to the counselor portal page and see a red confirmation message, “Account <login name> has been created!”

You can now log in to the client account. When assisting a real client you would enter the login name and the client would enter the password they chose on the previous page.

Terms and Conditions of UseThe Terms and Conditions of Use contain legal protections for the client, the counselor, and the counselor’s organization. Clients must agree to these terms to use The Benefit Bank.

See page 68 of this guide for a full copy of the Terms and Conditions of Use.

Consent to Contact and Share InformationThe Benefit Bank works hard to keep client contact information private and secure. We do not sell or exchange contact information about the users of The Benefit Bank with anyone.

However, occasionally staff may reach out to clients to offer information about new programs and gather feedback on their experience using The Benefit Bank. Also, OBB sometimes works with other organizations to find ways to improve services. To do this, we may share client information with an outside educational institution for research purposes only.

Clients may say YES or NO to this question. Whatever they decide will have no effect on their eligibility for services.

Terms and Conditions of Use

Provide a printed copy of this form for the client to read at his/her own pace before you begin the session; it’s available under the Documents Tab on the Counselor Portal Page.

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Understanding the Client Portal PageAfter completing the agreements, you and your client will then see the client’s portal page, containing links to the benefit, tax, voter registration, and FAFSA modules.

View or change Household Information

View or change answers to the Agreements

Recent and historical applications and forms are stored here

Check on the status of an e-submitted tax return

Check on the status of e-submission for Food Assistance, OWF, and Medicaid

applications


Understanding the Benefit HomepageEach benefit/tax module has a home page that shows the multiple sections that must be completed before an application or tax return can be filed.

A check mark next to a section means the section is complete.

A green arrow appears next to the sections that are next.

TBB PRACTICE

Begin Donna’s 2012 Federal Tax ReturnSelect Household Information from the tax homepage.

1. Donna prefers the title Ms.

2. Yes, there are two other people in her household: her spouse Victor B. Brewer and her niece Grace M. Brewer.

Use the table below to complete the Household Information section.

3. Donna prefers English.

4. She does not have a separate mailing address and her phone number is (330) 555-7100.

Household Member Date of Birth Marital Status Sex Social Security

Number Citizen? Disabled/Blind?

Donna L. March 2, 1975 Married F 244-44-5555 Yes No

Victor B. June 20, 1970 Married M 555-77-1234 Yes No

Grace M. April 9, 2002 Single F 322-55-5432 Yes No


Summary PagesAt the end of each section, TBB displays a summary of the data entered. This is a chance for you and your client to ensure that the information entered is correct.

If you need to add, delete, or edit data, click the corresponding buttons to do so. When editing an entry you will only see pages for the selected entry.

How To Make ChangesAs stated above, you are able to edit information from the summary page.

You may also make changes using the Review and Edit or Roadmap links located in the upper right corner.

Roadmap will take you back to the Benefit Summary page. Review and Edit allows you to quickly jump to a section or subsection.

To review or edit a section, simply click the link for that section. Sections that were skipped, do not apply, or have not yet been completed appear as inactive links.

Where to Find HelpGlossary Terms are single words or terms that appear as blue hyperlinks. Click to view a definition or clarifying text.

Clarifying Questions are blue hyperlinks preceded by a question mark icon. These questions will appear on the same page as the topic they clarify.


The Help DeskSolutions for Progress provides a Help Desk that responds to phone and email inquiries from counselors. The Help Desk is available for support as you assist clients.

Contact the Help Desk when:

▪ You forget your login name and password

▪ Your client forgets his/her login name and password

▪ The Benefit Bank is not responsive or behaving as expected

▪ You need help with technical troubleshooting

▪ You get an error message

▪ You need help finding answers to client questions

Before contacting the Help Desk, read the blue help links and search TBB for answers. TBB contains links to information that will answer many common questions.

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Contact the TBB Help Desk1.855.822.4357

[email protected]

(Response within 2 business days)

Hours During Tax Season 9 AM - 8 PM Monday-Friday

9 AM - 5 PM Saturday

Normal Hours: 9 AM - 5 PM Monday-Friday


TBB PRACTICE

Continue Donna’s 2012 Federal Tax Return

1. Donna is NOT receiving Food Assistance, Cash Assistance or Medicaid. She does not want more information about these programs.

Preliminary Information2. Donna reviews all of the supported forms and decides she would like TBB to help her prepare her taxes.

3. Donna and Victor consent to allow TBB to disclose their tax information. They each type their full names and today’s date in the boxes provided.

4. Donna and Victor consent to allow TBB to use their tax information for purposes other than tax preparation. They each type their full name and today’s date in the boxes provided.

5. Donna and Victor lived in Ohio on December 31.

6. They would like to file their state taxes with TBB.

Consent to Disclose and Use These are two separate consents, required by

federal tax law, that allow The Benefit Bank to disclose a client’s tax information to other agencies and use client’s tax information to complete other modules. For example, if a client would like to apply for federal student aid (FAFSA) the client would need to consent to allow TBB to use their tax information inside the FAFSA module and to disclose their tax information with the Department of Education.

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Section TwoTax Guide and Continued TBB PracticeThe BasicsCompleting a tax return is essentially a basic math equation.

How is withholding determined? Form W-4 is completed by an employee to indicate his or her tax situation to the employer. The W-4 form tells the employer the amount of tax that should be withheld based upon the employee’s status, number of dependents, etc. In general, the larger the number of allowances claimed on the W-4, the smaller the amount of tax is withheld.

How is the amount of tax required determined?Tax filers determine the amount of tax required by entering information like income, filing status, and number of dependents into a tax return form. There are several forms available to individual tax filers: they may use a 1040, 1040A or 1040EZ. The Benefit Bank, however, only uses Form 1040 to file taxes because it allows the tax filer to file for all available credits and deductions.

Page 29

Tax Paid (withholdings from paycheck)

- The amount of tax required

= Refund or Amount Owed

Page 30 • Section Two

Filing StatusYour filing status will determine the amount of your standard deduction as well as the credits you may be eligible for. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) with a Dependent Child.

SingleThe Single filing status is for people who are unmarried. A taxpayer can claim Single when he or she meets the following requirements:

▪ Unmarried on the last day of the tax year (December 31st).

▪ Legally separated on or before the last day of the tax year.

▪ Widowed before the first day of the tax year (January 1st) and did not remarry during the tax year.

Married Filing JointlyMarried Filing Jointly is generally used by moderate and low income couples who were married on the last day of the tax year. This status will increase both the standard deduction and the income limits for credits like the Earned Income Tax Credit.

Taxpayers can claim Married Filing Jointly if any of the following apply:

▪ You and your spouse were married on or before the last day of the tax year.

▪ Your spouse died during the tax year and you did not remarry during the tax year.

Keep in mind:

▪ If you file a joint return you are generally responsible for your spouse’s tax.

▪ If you file a joint return both you and your spouse will have to sign the return.

Section Two • Page 31

Married Filing Separately Generally, upper income filers prefer to file returns Married Filing Separately. However, there are cases where clients of The Benefit Bank may want to file separately from their spouses, like:

▪ If a client is a victim of domestic violence.

▪ If a client wants to avoid the financial liabilities of his/her spouse.

Head of HouseholdThis filing status offers tax filers who are single (or considered single) and have dependents a significantly higher deduction on their taxes. It’s an important filing status for moderate and low income taxpayers because it can dramatically increase their tax refund.

To file as Head of Household the tax filer must:

▪ Have a qualifying child or a qualifying relative. Remember that special conditions apply, particularly in the case of separation agreements.

▪ Be unmarried or considered unmarried, meaning you lived apart from your spouse for the last six months of the tax year.

▪ Paid over half the cost of keeping up your home.

Remember that The Benefit Bank will tell a client if they are eligible to file as Head of Household, but the client still must choose their filing status.

Qualifying Widow(er) with a Dependent ChildTo be eligible for this status the following conditions must be met:

▪ Your spouse died in one of two prior years and you did not remarry before the last day of the tax year.

▪ You have a child for whom you can claim an exemption.

Note: If you and your spouse filed Married Filing Separately in previous years, this status is not available to you.

Clients who choose to file Married Filing Separately will not be eligible for the Earned Income Tax Credit and may pay more in taxes.

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Review What You’ve Learned

Fill-in-the-BlankUse pages 29 through 31 to add the correct word to each sentence below.

1. The Benefit Bank only uses Form ____________ to file taxes.

2. A client may want to choose the ______________________________ status if he/she would like to avoid the financial liabilities of his/her spouse.

3. A client may file as Single if they were unmarried on ___________________.

4. To file as Head of Household a client must have a qualifying child or qualifying __________________________.


Qualifying ChildA qualifying child can be used for the following purposes on a tax return:

▪ Head of Household

▪ Dependency

▪ Child and Dependent Care Credit

▪ Child Tax Credit

▪ Additional Child Tax Credit

▪ Earned Income Tax Credit

There are five tests a child must pass to be considered a Qualifying Child: Relationship, Age, Support, Joint Return and Residency.

Relationship TestTo pass this test, the child must be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew).

Age TestThe age test varies from credit to credit. View the box below to see how old the child must be to qualify for a specific credit.

Support TestThe child cannot have provided more than half of their total support during the tax year. This means that this child must not be paying for a majority of things associated with maintaining themselves. This includes shelter, food, and utilities.

Note: A child does not have to pass the Support test for the Earned Income Tax Credit.

Head of HouseholdDependency

Earned Income Tax Credit

Child and Dependent Care Credit

Child Tax CreditAdditional Child Tax

Credit ▪ Under 19

▪ Under 24 if a full time student

▪ Any age if permanently and totally disabled

▪ Under 13

▪ Any age if permanently and totally disabled

▪ Under 17


Joint Return TestThe child may not file a joint tax return with anyone.

Residency TestTo pass this test, the child must have lived with you for more than half the year. Temporary absences such as school, vacation, business, medical care, military service, or detention in a juvenile facility DO count as time lived at home.

A child who is born or died during the year is considered to have lived with you for the entire year.

Note: A child of divorced or separated parents may be considered the qualifying child of the noncustodial parent if certain conditions are met. When filing their taxes the noncustodial parent could claim an exemption for the child and the child tax credit but no benefits like the Head of Household filing status, Earned Income Tax Credit, and Credit for Child and Dependent Care Expenses.


True or FalseUse pages 33 through 34 to answer True of False to the scenarios below.

1. David pays for child care for his niece Tina. She has lived with him for the last seven months of the tax year. She is 12 years old and David has provided over half of her total support. David may claim her for the Child and Dependent Care Credit.

Answer: ___________

2. Maryjo’s son turned 17 on the last day of the tax year. He lived with Maryjo for all of 2012 and Maryjo provided all of his support. Maryjo may claim her son for the Child Tax Credit.

Answer: ___________


Qualifying RelativeTaxpayers may also claim a person who meets the criteria for a qualifying relative as a dependent. A person must pass the following tests to be considered your qualifying relative.

Member of Household or Relationship TestA qualifying relative is a person who lived with you for the entire year OR is related.

Related is defined as:

▪ child, stepchild, foster child, or descendant of any of them (like a grandchild)

▪ sibling(s), including stepbrother, stepsister, brother-in-law, or sister-in-law

▪ niece or nephew

▪ parents, including stepfather or stepmother

▪ parent’s siblings like aunt or uncle

▪ grandparents

Income TestThe qualifying relative must have had a gross income of less than $3,800 during the tax year.

Support TestYou must have provided over half of the relative’s total support during the tax year.

Citizenship/Residency TestThe relative must be a U.S. citizen, national, or resident alien or a resident of Canada or Mexico.

Joint Return TestThe relative may not file a joint tax return with anyone.


Qualifying Person Quick Reference

Yes

The child is your qualifying child. The child is also your

dependent

Qualifying Child Tests Qualifying Relative Tests

The child is your son, daughter, stepchild, fosterchild, sibling,

stepsibling, or descendant of any of them

The child is under age 19, under 24 and a full-time student, or any age if

disabled

The child did not provide more than half of his or her own support

The child lived with you for more than half of the tax year

Yes

Person is a member of your household OR related (like a parent)

Yes

Yes

Person’s income is under the income limit

Person received more than half of his or her support from you

No

You cannot claim this

person as a dependent

Yes

Yes

Yes

You can claim this

person as a dependent

NoNo

No

No

No No

No

NoPerson will not file a joint return

Person is a U.S. citizen, U.S. resident, U.S. national, or a resident of Canada or Mexico for some part

of the year

Yes

Yes

Yes

Person is a U.S. citizen, U.S. resident, U.S. national, or a resident of Canada or Mexico for some part

of the year

Yes

Yes

No

Note: This is an overview of the requirements. More specific rules apply in certain cases.


TBB PRACTICE


Filing Status and Dependents1. Donna was married on December 31.

2. Victor was her spouse on December 31.

3. Donna and Victor are Citizens.

4. Donna will file as Married Filing Jointly with Victor.

5. Donna and her spouse lived with and provided financial support for no one besides their niece Grace.

6. Grace is a Citizen.

7. Donna and her spouse provided more than half of Grace’s total financial support.

8. Both Victor and Grace lived with Donna for all of 2012.

9. Grace lived with Donna and Victor as a member of the household.

10. No one else can claim Grace as dependent.

11. Donna will claim Grace as a dependent.

12. Donna will claim an exemption for herself and her spouse.

13. Donna and Victor will contribute to the Presidential Election Campaign Fund.


IncomeIncome is reported on Reporting Forms which vary depending upon the type of income being reported.

The Benefit Bank does not support all types of income. TBB will ask about all forms of taxable income, but will only allow the client to move forward if each of their income types are accepted by the The Benefit Bank.

Reporting Forms Supported by TBB

W2: Wage & Tax Statement

1099INT/1099OID: Interest Income

1099MISC: Miscellaneous Income (i.e. Nonemployee or Other Income)

1099DIV: Dividends

1099R: Pensions, Annuities, IRAs,& Insurance Contracts

1098E: Student Loan Interest Statement

SSA1099: Social Security Benefit Statement

1098T: Tuition Statement

RRB1099/RRB1099R: Railroad Retirement Board Statements

1099G: Government Payments (Unemployment or State/Local Tax Refunds)

CSA 1099R/CSF 1099R: Statement for U.S. Civil Service Retirement Benefits

W2G: Certain Gambling Winnings

5498: IRA Contribution Information

1099C: Cancellation of Debt

1098: Mortgage Interest Statement

1099SA: Health Savings Account (HSA) distribution

Income Unsupported by TBB

Business income reported on Schedule C

Tips not reported on a W-2

Rental and Real Estate Income

Capital Gains

Farm Income Income reported on a 1099-B

Codes R, P or T in box 12 of a W-2

Non-Taxable IncomeTBB will not ask about the following types of income because they are not subject to federal tax:

▪ Child Support

▪ Cash Assistance

▪ Food Assistance

▪ Supplemental Security Income (SSI)

▪ Veterans Benefits


TBB PRACTICE


1. Donna and Victor’s income consisted of Wages reported on a W-2 and a 1099-G (unemployment).

(Answer “No” to all other income types.)

See Donna’s W-2 below to answer the next few questions.

If a box is blank, leave the corresponding box in TBB blank as well.

SD indicates witholdings for School District taxes. Each School District is assigned a 4-digit number.

Enter employee’s address as it appears on the W-2.

Turn page


2. Donna and Victor have no other W-2s to enter.

Use the form below to answer questions regarding Victor’s 1099-G.

3. Victor did not repay any of this unemployment compensation.

4. They have no other 1099-Gs to enter.

5. They have no more income to add.


Adjustments, Deductions, and ExemptionsWhen individuals pay taxes throughout the year, they are paying an estimated tax. When you complete a tax return you figure out if you can get some or all of that money back. You can reduce the taxes you owe through adjustments, deductions, and exemptions.

AdjustmentsTaxpayers can subtract certain expenses, payments, contributions, fees, etc. from their total income, which reduces the amount they may be taxed. The figure remaining after computing the taxpayer’s adjustments to income is their Adjusted Gross Income (AGI).

Adjustments include:

▪ Alimony payments

▪ Cost of supplies teachers purchase for their classroom

▪ One half of self-employment tax paid during the tax year

▪ Tuition and school fees (Note: It is sometimes better to take these payments as a credit; TBB will determine the best choice for you)

▪ Student loan interest payments

▪ Portion of health insurance premiums paid by individuals who are self-employed

▪ Money contributed to a traditional Individual Retirement Account (IRA)

▪ Contributions to a Health Savings Account (HSA)


Adjustments Scenario

Marsha and Donald had a combined income of $37,050 this past year. Marsha paid $600 in student loan interest. They had no other adjustments.

$ 37,050 Total Income

-(minus) $ ____________ Total adjustments

= $ ____________ Adjusted Gross Income (AGI)


DeductionsDeductions are subtracted from your adjusted gross income (AGI). They further reduce the amount of income that is taxed.

You have a choice of taking the standard deduction or itemizing deductions. Taxpayers should use the type of deduction that results in the lower tax.

Standard Deduction

The Standard Deduction varies depending on your filing status. Note: If you are 65 or older or blind, there is an additional amount added to your Standard Deduction.

Itemized Deductions

The following expenses can be claimed as deductions. If the total of these deductions is more than the Standard deduction, a client can save money by listing, or itemizing, each deduction.

Standard Deduction

Single $5,950

Married Filing Jointly $11,900

Married Filing Separately $5,950 (each)

Head of Household $8,700

Qualifying Widow(er) with a Dependent Child $11,900

▪ State and local income taxes or sales taxes ▪ Losses from casualty

▪ Real estate taxes paid ▪ Un-reimbursed employment expenses

▪ Home mortgage interest paid ▪ Fees for tax filing

▪ Gifts to charity ▪ Medical and dental expenses

▪ Gambling losses ▪ Mortgage insurance premiums

▪ Impairment related work expenses for disabled persons


ExemptionsThe amount of dependents you claim, along with yourself and your spouse, are given to you as Exemptions. For each person you claim on your taxes, the amount of income that you are taxed on is reduced by $3,800.


Exemptions Scenario

Calculate Marsha and Donald’s taxable income after they take their exemptions.

Remember that after taking the Standard Deduction, the income that Marsha and Donald are taxed on was reduced to $24,550

Marsha + Donald + Krista = _______ Exemptions

_____ Exemptions X $3,800 = _________

$24,550

- (minus) ____________ Total amount for exemptions

= ____________ Marsha and Donald’s Taxable Income


TBB PRACTICE


Deductions and Adjustments1. Donna paid student loan interest in 2012.

2. Victor paid tuition and fees for post-secondary education.

3. They did not pay alimony or separate maintenance.

4. They did not pay educator expenses.

5. They did not contribute to a Health Savings Account (HSA).

6. They did not have excess contributions in an HSA for the previous tax year.

7. They did not have travel expenses as an Armed Forces reservist. They did not have any business expenses as a fee-basis government official or a performing artist.

8. They did not contribute to a traditional IRA.

9. They did not have any excess contributions to a traditional IRA.

See box one of Donna’s 1098-E below for the amount of student loan interest she paid.

10. Victor was a post-secondary student in 2012.

11. Victor attended an eligible educational institution.

12. He was in a program leading to a degree.

13. The courses were not taken to acquire or improve job skills.


14. Victor attended at least half-time.

15. He has not finished his first four years of post-secondary education.

16. Victor has not claimed the American Opportunity Credit (including the Hope Credit) four times.

17. Victor has a high school diploma.

18. Victor does not have a felony conviction.

19. Victor paid for the expenses.

20. He paid $1000 in tuition and fees.

21. He paid $0 directly to the institution for course related books or supplies.

22. He paid $300 for course related books and supplies.

23. No one is blind.

24. They will take the standard deduction.

25. Victor chooses the American Opportunity Credit.


Non-Refundable Tax CreditsAfter taking adjustments, deductions, and exemptions, tax filers are left with a taxable amount of income. In the Marsha and Donald scenario, they have $13,150 of taxable income. Their federal tax is determined on this amount not on the $37,050 they received throughout the year. In this case, Marsha and Donald owe $1318 in taxes, about 10% of their taxable income. However, Marsha and Donald may not have to pay the $1318 in taxes. The amount of their tax can be reduced by Non-refundable tax credits.

Non-refundable tax credits reduce the tax owed or tax liability. These credits can reduce what is owed to $0 but they will never give you any money back.

Non-refundable tax credits supported by The Benefit Bank are:

▪ Child Tax Credit - This credit reduces your tax liability up to $1,000 for each child that you claim as a dependent. To take this credit each child must meet the qualifying child requirements (See pages 29-30 for more information).

▪ Child and Dependent Care Credit - To qualify for this credit you must have paid for child and/or dependent care expenses for a qualifying child in order to work or look for work. Keep in mind:

▪ Married taxpayers must both work (have earned income) in order to claim this credit. If a spouse is either a full-time student during five months of the year, or is not capable of caring for themselves for some period during the year, the credit can still be claimed.

▪ To claim this credit the taxpayer must provide the name, address, and taxpayer identification number or Social Security Number of the person or organization who provided care for the child or dependent.

▪ Credit for the Elderly or Disabled - You may be able to take this credit if by the end of 2012 you were age 65 or older, or were retired on permanent and total disability and you had taxable disability income.

▪ Education Credits - If you paid expenses for yourself or dependents for higher education you may be eligible for these credits.

▪ Savers Credit (formerly known as the Retirement Savings Contribution Credit) - Only certain taxpayers who make voluntary contributions to a retirement account may take this credit. Rollover contributions to a traditional or Roth IRA do not count towards this credit.

▪ Mortgage Interest Credit - A taxpayer may claim a mortgage interest credit if he/she has been issued a Mortgage Credit Certificate (MCC) by their state or local government.



Credits Scenario

Marsha and Donald owe $1318 in taxes. See how Non-Refundable Tax Credits reduce the amount they owe.

1. Marsha and Donald receive $780 in Education Credits. The tax they owe is $1318. Their

tax is reduced to $___________.

2. They also qualify for the Retirement Savings Contribution Credit, in the amount of $240.

Their tax is reduced to $___________.

3. Marsha and Donald also qualify for the Child Tax Credit. Although that credit is worth up

to $1,000, they are eligible for the Child Tax Credit in the amount of $____________.

4. Marsha and Donald’s Tax Liability (the tax they owe) is $___________.


Refundable Tax CreditsThese credits are extra dollars that the government gives moderate and low income tax filers who qualify. Even if your tax liability is zero (you don’t owe anything) you can still get a refund if you qualify.

Refundable Credits supported by The Benefit Bank are:

▪ Earned Income Tax Credit - To qualify without a qualifying child, you must be at least age 25 and under age 65. You must have earned income, a valid social security number, and meet the following income limits:

▪ Additional Child Tax Credit - This credit allows taxpayers to claim up to $1,000 per qualifying child. The amount depends on the tax payer’s tax liability, modified AGI, and filing status.

▪ Refundable Education Credits - If you paid expenses for higher education, you may be eligible for this credit. Up to 40 percent of this credit is refundable.

Your Filing Status

No qualifying children, income must be less than:

1 qualifying child, income must be less than:

2 qualifying children, income must be less than:

3 qualifying children, income must be less than:

Single, Head of Household or Qualifying Widow(er) with a Dependent Child

$13,980 $36,920 $41,952 $45,060

Married Filing Jointly $19,190 $42,130 $47,162 $50,270



Credits Scenario

See how Refundable Tax Credits add to Marsha and Donald’s refund.

1. Add Marsha and Donald’s total Refundable tax credits below.

2. Marsha and Donald had 3,780 in tax withheld from their paychecks last year. Find out their refund below.

$904 Earned Income Tax Credit

+ $520 Education Credit

+ $702 Additional Child Tax Credit

= _______________ Total Credits

____________ Total Credits

+ $3,680 Amount withheld from paychecks

= _______________ Total Refund


TBB PRACTICE


Credits1. They did not pay for child care.

2. Donna contributed to a retirement plan.

3. They did not pay mortgage interest.

4. Victor was a full-time student.

5. They did not contribute to an IRA.

6. Donna contributed to a 401(k).

7. They have never received distributions from a retirement plan.

8. Donna contributed $1200 to her 401(k).

9. Victor did not contribute to a retirement plan.

Earned Income Tax Credit and Filing Information

**TBB will say Donna and Victor are eligible for $904 in the Earned Income Tax Credit**10. They would like to claim the EITC.

11. Their EITC has never been denied or reduced by the IRS.

12. None of their income was earned in a penal institution.

13. Grace lived with Donna and Victor for all of last year.

14. They did not make any estimated federal income tax payments.

15. They did not file Form 4868.


Filing Your ReturnTaxpayers have two options when filing their returns. They may file electronically or paper file. Taxpayers who choose to paper file must mail all their tax forms and income statements to the IRS.

Direct Deposit & Savings BondsTaxpayers can have their returns directly deposited into up to three different bank accounts.

Tax filers may also purchase a Series I Savings Bond with a portion of their refund. They may choose an amount of up to $5,000 in multiples of $50. If the taxpayer is filing jointly, the bonds will be issued in the names of both spouses.

Clients who choose to Paper File must sign their return. Couples who file jointly must both sign the return.

TBB Counselors are not paid preparers. You will never sign a client’s forms.

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How to Sign an E-FileThere are three options available to tax filers who choose to e-file. They can sign their e-file with the previous year’s Adjusted Gross Income (AGI), the previous year’s Personal Identification Number (PIN), or they can request a new PIN from the IRS.

Last Year’s PINIf the taxpayer e-filed last year, they may have selected a 5-digit Personal Identification Number. They can sign this year’s e-file by entering this number into TBB when prompted.

Last Year’s AGIThe previous year’s AGI is found on last year’s Form 1040 on line 37. You will be prompted to enter the exact dollar amount of last year’s AGI.

If the tax filer does not have his/her 2009 Form 1040, they will need to call 1-800-TAX-1040 and ask for their last year’s AGI.

New PIN Given by IRSClients can request a new PIN on the IRS website. Visit www.irs.gov and search for Electronic Filing PIN Request. Or, call the IRS at 1-866-704-7388.

PIN or AGIEncourage your clients to obtain this information before arriving for a tax appointment.

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After FilingTax filers who e-file and request direct deposit can expect to have their refund deposited between 8 and 14 days from the day the e-file was accepted by the IRS.

Tax filers who e-file and request a paper check can expect to receive a check 3-4 weeks from the day the e-file was accepted by the IRS.

Tax filers who paper file can expect to receive their refund 6-7 weeks from the day the return was received by the IRS.

E-File StatusClients will receive notification of their e-file status (acceptance or rejection) via email, if they select this option in TBB, or via mail. Instruct your clients to open any mail from The Benefit Bank immediately.

Counselors can also help clients find their e-file status. To do this, have your client log into TBB and scroll to the bottom of the client home page and select E-file Status.

RejectionsIf there is incorrect information on the tax return, like incorrect birthdates or social security numbers, the e-file will be rejected by the IRS. E-file rejections are easily fixed and may be re-submitted to the IRS.

All rejections, whether received electronically or by mail, will be accompanied by detailed information on why the return was rejected. Clients should bring this information with them when they return to you to have their information corrected. Simply log into TBB, make the appropriate corrections, and click “Save & Continue” until you see a message that indicates you have sent the return. Clients may also correct and resubmit their own returns using the Self-Serve version of TBB.

Where’s My Refund?Clients can check on the status of their refund by calling the IRS automated refund information hotline at 1-800-829-4477.

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RejectionsBe sure each client knows who to call if their return is rejected. Consider designating an on-site counselor to help clients correct their returns.

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TBB PRACTICE


Filing The Return1. They would like to e-file their return.

**TBB will say Donna and Victor are owed a refund of $5806.**2. Donna would like the IRS to send a check.

3. Victor can sign the return.

4. Their daytime phone number is 330-555-7100.

5. Donna is a Caterer. Victor is a Student.

6. The IRS has not assigned them a six-digit Identity Protection Personal Identification Number.

7. They do not want to designate another person to discuss their return.

8. Donna and Victor agree to the disclaimers and agreements.

9. They will use last year’s AGI to sign their return.

10. Their last year’s AGI was 45,500.

11. They choose 55441 as their PIN.

Ohio State Taxes12. Donna and Victor would like to file Ohio State taxes.

13. They are full-time residents.

14. Donna and Victor lived together during all of 2012.

15. They did not move within Ohio last year.

16. On December 31st they lived at 67 N. Hansen Avenue, Mount Vernon, OH 43014 in Knox County.

17. Their school district was Danville LSD.

Each of these green links contains important tax forms and schedules. Print 1 copy for e-filers and 2 for paper filers.

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18. They have never claimed the Ohio Lump Sum Retirement Credit.

19. They did not need to pay back any income they received in another year.

20. They did not put money into a CollegeAdvantage 529 savings plan.

21. They were not paid back for tuition and fees deducted in another year.

22. They were not paid back for expenses deducted in another year.

23. They had no unreimbursed medical or dental expenses.

24. They did not pay for accident or health insurance.

25. No one is in the military.

26. They did not put money into an IDA.

27. Neither Donna nor Victor donated an organ.

28. Victor lost a job in 2010, because his place of employment permanently closed.

29. Neither Donna or Victor paid for job training.

30. They did not contribute to a political campaign.

31. They did not restore a historical building.

32. They did not make any estimated tax payments.

33. They did not have their refund credited to this year’s taxes.

34. They did not submit a filing extension request.

35. They did not buy anything they did not pay sales tax on.

36. They would not like to contribute to the Ohio Political Party Fund.

**TBB should say they are owed a refund of $110*37. They do not wish to donate their refund.

38. They do not want to credit their refund to next year’s tax return.

Ohio School District Taxes

**TBB should recognize that $320 in Box 19, Line 2 is whitholdings for a school district tax**39. The $405 withheld for MVRON (Mount Vernon) was withheld for city tax.

40. They did not make estimated tax payments to Danville LSD.

41. They did not have part of their refund last year credited to this year’s taxes.

42. They did not submit an extension request to Danville LSD.

**TBB will say Donna and Victor owe $229**43. They chose to e-file their Ohio and School District returns.

44. Donna agrees to the perjury statement.

45. They would like to receive a check for their Ohio state refund.

46. They will pay their School District taxes with a credit card.

47. They would not like the Ohio Department of Taxation to send them tax forms next year.

**TBB will populate a Ohio Income Tax form and Ohio School District Income Tax**48. Donna would like to receive e-file status via email - [email protected]

49. Donna and Victor would like to submit their e-file now.


Free Application for Federal Student Aid (FAFSA)FAFSA is used to apply for federal financial aid to cover the costs of college and other post-secondary programs.

There are three categories of federal student aid: grants, work study, and loans.

Filing the FAFSA using TBB ▪ FAFSA requires a variety of personal data from the student applicant and, when applicable, their parents, spouse

and dependents.

▪ FAFSA requires information from the current year’s taxes. FAFSA clients are not required to use TBB to complete their taxes, but those who do will be able to complete the FAFSA more quickly.

Application SubmissionApplicants may submit their FAFSA form electronically or by mail. Those who choose to electronically file should obtain a Personal Identification Number (PIN) prior to filing with a TBB counselor by going to www.pin.ed.gov.


Knowledge EvaluationGeneral KnowledgeAnswers can be found in Section 1.

True or False

1. The Benefit Bank can assist clients with up to 3 years of back taxes.

Answer: _________

2. Clients must agree to the Terms and Conditions of Use to use The Benefit Bank.

Answer: _________

Multiple Choice

3. What link located on the Client Portal Page will allow clients to view their completed applications or tax returns?

A. Agreements

B. Forms Browser

C. E-file Status

D. None of the above

4. If an OBB counselor forgets his or her TBB login name and password who should they contact?

A. Their community organizer

B. The Internal Revenue Service

C. The Benefit Bank Help Desk

D. Their site administrator

Tax KnowledgeAnswers can be found in Section 2.

True or False

5. Gayle is single and lives in Columbus. She cares for her father who lives in Philadelphia. Gayle’s father has a part-time job and earned $3,000 last year. Gayle sends him $10,000 a year for his support, which is over half his total support. Gayle’s father is single and a U.S. citizen. Gayle may claim her father as a dependant on her tax return.

Answer: _________

6. Zach is 26, single, and has no dependents. His earned income is $12,000. Zach can claim the Earned Income Tax Credit.

Answer: _________

Multiple Choice

7. Which of the following statements regarding standard and itemized deductions is accurate and complete?

A. Most taxpayers have a choice of taking the standard deduction or itemizing.

B. The standard deduction is not the same for all taxpayers.

C. If itemized deductions are greater than the standard deduction, it is usually in the taxpayers’s best interest to take the itemized deduction.

D. All of the above.


Alvarez Family Scenario

Household Member

Relation-ship Date of Birth Marital

StatusSocial Security

NumberCiti-zen?

Disabled/Blind?

Mr. Ernesto S. Aug. 15, 1965 Married 222-00-2222 Yes No

Mrs. Brenda T. spouse Feb. 2, 1967 Married 111-00-1111 Yes No

Mr. James M. child Sept. 18, 1996 Single 555-55-0001 Yes No

Miss. Christina R. child May 1, 2002 Single 333-00-8888 Yes No

TBB PRACTICE Ernesto S. Alvarez lives with his wife Brenda and his two children: James and Christina. He has brought two W-2 Forms, a 1099-R, and a 1099-MISC with him today.

Create a Client1. Ernesto S. Alvarez lives at: 100 Junction Road, Columbus, OH 43202, Franklin County.

2. He prefers English.

Agreements3. Ernesto reads and agrees to the Terms and Conditions of Use.

4. He does not want to share his information.

Use the box below to complete the Household Information section.

5. Ernesto prefers English.

6. He does not have a separate mailing address. His phone number is 614-555-3100.

7. Ernesto is not receiving Food Assistance, Cash Assistance, or Medicaid. He does not want more information about these programs.

Preliminary Information8. Ernesto reviews all of the supported forms and decides he would like TBB to help prepare his taxes.

9. Ernesto does not wish to “Consent to Disclose” his tax information (leave boxes blank and click Save and Continue).

10. Ernesto does not wish to “Consent to Use” his tax information (leave boxes blank and click Save and Continue).

11. They lived in Ohio on December 31.

12. Ernesto does not want to file Ohio state taxes.

Filing Status and Dependents13. He was married to Brenda on December 31st.

14. Ernesto and Brenda were citizens on December 31st.


15. Ernesto would like to file a joint return with Brenda (Married Filling Jointly).

16. Neither Ernesto nor Brenda provided financial support for anyone besides James and Christina.

17. James and Christina are citizens.

18. Ernesto and Brenda provided all of the financial support for James and Christina.

19. Brenda, James, and Christina lived with Ernesto for all of 2012 as a member of his household.

20. No one else can claim James and Christina as a dependent.

21. Ernesto will claim James and Christina as dependents.

22. He will claim an exemption for himself and his spouse.

23. Both Ernesto and Brenda will contribute to the Presidential Election Campaign Fund.

IncomeErnesto has 4 income forms with him today:

W-2 from Ewing & Willis, PLLC

W-2 from Apple One Employment Services

1099-R from McGhee Manufacturing Pension Plan

1099-MISC from Rio Mar Restaurant & Catering




Additional Information for the 1099-MISC24. Brenda is an independent contractor; this income was NOT misreported as non-employee compensation.

25. They do not have more self-employment income to add.

26. Brenda had self-employment income in 2012.

27. Catering is the professional activity that gave Brenda this income.

(Find the 6-digit code that describes this income. HINT: It’s located under Accommodation, Food Services and Drinking Places.)28. She does not have a business.

29. She does not have an Employer Identification Number.

30. The business address is not different from the income earner’s home address.

31. Brenda did not make any payments in 2012 that required a Form 1099.

32. Brenda has $0 of self-employment income that was NOT reported on a form.

33. She did not work as a notary public.

34. She had $300 in expenses.

35. She has no expenses for car or truck.

36. Brenda does not need help figuring out her expenses.


Additional Information for the 1099-R37. This 1099-R was not rolled over.

38. None of the exceptions apply to him.

39. Ernesto will use the Simplified Method Worksheet.

40. Ernesto did not contribute to the cost of this pension.


Deductions and Adjustments41. Ernesto has no deductions or adjustments.

(Select No to each deduction/adjustment.)

42. No one is blind.

43. He will take the Standard Deduction.

44. The household had more than $2,954 in medical/dental expenses.

45. The household had $5,000 in medical and dental expenses. Ernesto was not paid back for these expenses.

46. Ernesto used a portion of his pension (1099-R) to pay for medical and dental expenses.

Credits47. Ernesto and Brenda paid for child care.

48. They did not put money into an IRA.

49. They did not pay mortgage interest.

50. No one is physically or mentally disabled.

51. They paid for someone to care for Christina.

52. They did not receive dependent care benefits from a dependent care assistance program

53. They did not have a flexible spending account to cover dependent care expenses.

54. The provider’s name is City Kidz Daycare at 500 E. Town Street, Columbus, Ohio 43215.

55. Their EIN is 51-1234567.

56. They paid $900 to City Kidz Daycare.

57. No one is a student.

**TBB will report Ernesto and Brenda are eligible for the EITC in the amount of $1640**58. They would like to claim the EITC. Their EITC has never been reduced or denied.

59. No wages were earned in prison.

60. James and Christina have lived with their parents the entire year.

61. They did not make estimated federal tax payments. They did not request an extension.

Filing the Return62. Ernesto would like to e-file.

**TBB will report they are owed a refund of $4431*63. They would like direct deposit.

64. Their bank’s routing number is 123456780, their checking account number is 987654321.

65. Brenda can sign the return.

66. Their daytime phone number is 614-555-4715.

67. Ernesto is an Office Manager. Brenda is a Chef.

68. They have not been assigned a six-digit Identity Protection Personal Identification Number.

69. They do not want to designate another person to discuss their return.


70. They agree to all the disclaimers and agreements.

71. They will sign using last year’s AGI.

72. Ernesto and Brenda’s 2011 AGI was 43,000. They both choose 54321 as their PIN.

73. They do not wish to receive their e-file status via email.

74. They review their documents again and would like to submit their e-file.

-End Scenario-

Section ThreeAdditional ResourcesHow to Order OBB MarketingYou can order free OBB marketing materials at the OBB website. Go to www.ohiobenefits.org and click Free Marketing Materials.

You must have Adobe Reader to download the order form. Go to: http://get.adobe.com/reader to download.

Simply fill in the order form and submit by email or print and fax.

All fliers, brochures, envelopes, login cards, and other materials are available to all OBB sites at no cost.

Please note: due to the high volume of marketing requests please allow 10 business days for your order to arrive.

Samples of marketing are available from your community organizer or regional coordinator.

If you have questions about marketing, or would like to check on the status of your order, please call 614.221.4336.

Tax Clinic KitA clinic is an event where trained counselors help clients, neighbors, members, or congregants file taxes. A growing number of organizations have discovered how easy it is to host a clinic, and the immense advantages it offers to the community.

You can find a guide to planning, preparing, and hosting a tax clinic at:

www.ohiobenefits.org/taxclinickit

Page 67

Page 68 • Section Three Page 69 • Section Three

Terms and Conditions of UseThis document contains legal protections for the client, the counselor and the counselor’s organization. See page 21 to see how this document integrates into an OBB session.


OBB Mobile ExpressThe OBB Mobile Express functions like a full-service OBB site and is available to attend various events and provide OBB enrollment services. The Mobile Express comes complete with two highly trained OBB counselors and all of the technology necessary to use the OBB, including satellite Internet access.

The Mobile Express attends events that will target specific populations, including seniors, veterans, and people living with disabilities. These populations often face unique barriers to accessing and utilizing benefits, so service providers have to work smarter to help. The Mobile Express team will help identify effective strategies and share them with the OBB network.

The mobile enrollment specialists discuss their efforts in the Mobile Express blog, where you can catch some great tips for

better connecting to different groups of people.

If you are planning an event that will reach out to populations including seniors, veterans, or people living with disabilities, please fill out the OBB Mobile Express Request for Participation found at www.ohiofoodbanks.org. If you have any questions, or if you are not sure if your event fits, please contact Tyler Davis at [email protected].


Extra Practice Scenarios

See page 13 for information on how to access The Benefit Bank training website.

You are assisting Agnes Parker with her Federal and State tax return. Agnes cares for her grandson Andrew. She has two sources of income: Social Security (SSA-1099) and Interest Income (1099-INT).

Create a Client(Click Create a Client from the Portal Page.)

1. Agnes G. Parker lives at 900 Short Street, Toledo, Ohio, 43605 in Lucas County.

2. She prefers English.

(Create a Login Name for Agnes, a password, Security Question and Answer.)

Agreements3. Agnes reads and agrees to the Terms and Conditions of Use.

4. She does not want to share her information.

(Select Filing 2012 Taxes from Agnes’ Homepage)

Household Information5. Agnes prefers the title Ms.

6. Yes there are other people in her household: her grandson Andrew B. Parker.


7. Agnes prefers English.

8. She does not have a separate mailing address.

9. Her home phone number is 419-555-2222.

10. Agnes is receiving Food Assistance. She does not receive Cash Assistance or Medicaid. She would not like more information about these programs.

Parker Family Scenario

Parker Family At a GlanceLevel of Difficulty: EasyFiling Status: Head of HouseholdIncome: 1099-INT, SSA-1099

Household Member Relationship Date of Birth Marital Status

Social Security Number Citizen? Disabled/

Blind?

Ms. Anges G. March 20, 1943 Widowed (in 2000) 125-55-1211 Yes No

Mr. Andrew B. grandchild July 5, 1999 Single 211-44-1234 Yes No


Preliminary Information11. Agnes reviews the information and decides she would like TBB to help her prepare her taxes.

12. Agnes consents to allow TBB to disclose her tax information. She prints her full name and today’s date in the boxes provided.

13. Agnes consents to allow TBB to use her tax information for purposes other than tax preparation. She prints her full name and today’s date in the boxes provided.

14. Agnes lived in Ohio on December 31st.

15. She would like to file her Ohio taxes with TBB.

Filing Status and Dependents16. Agnes was a citizen on December 31, 2012.

17. She did not provide financial support for anyone besides Andrew.

18. Andrew is a citizen.

19. Agnes provided more than half of Andrews’s financial support.

20. Andrew lived with Agnes for part of 2012.

21. He did not live with Agnes for all of 2012.

22. He lived with Agnes for 9 months, more than half of 2012.

23. No one else can claim Andrew as a dependent.

24. Agnes will claim Andrew as a dependent.

25. She paid more than half the cost of keeping up her home.

26. Agnes will file as Head of Household.

27. She will claim an exemption for herself.

28. Agnes will contribute to the Presidential Election Campaign Fund.

Income29. Agnes has two sources of income: Social Security (SSA-1099) and Interest Income (1099-INT).



Deductions and Adjustments30. Agnes did not pay any student loan interest.

31. She did not pay tuition or fees.

32. She did not pay alimony.

33. She did not pay any educator expenses.

34. Agnes did not contribute to a Health Savings Account (HSA).

35. She had no excess contributions to an HSA.

36. She did not have any travel expenses as an Armed Forces reservist.

37. She had no business expenses.

38. She did not contribute to an IRA.

39. She did not have excess contributions to an IRA.

40. Agnes is not blind.

41. She will take the Standard Deduction.

Credits**TBB should say Agnes’ tax is $0 and therefore entering information on Non-Refundable tax credits is unnecessary**

**TBB should say Agnes is not eligible for EITC because she is over the age of 65**

42. Agnes did not make any estimated federal income tax payments.

43. Agnes did not request an extension.

Filing the Return44. Agnes would like to e-file her return.

**TBB should say that Agnes is owed a refund of $350**

45. She would like the IRS to mail her a check.

46. Her daytime phone number is 419-555-2222.

47. Agnes is Retired.

48. The IRS did not assign her a six-digit Identity Protection Personal Identification Number.

49. She does not want to designate another person to discuss her return with the IRS.

50. Agnes reviews her Form 1040 and worksheet.

51. She agrees to the disclaimers and agreements.

52. She will sign using her 2011 PIN: 56789 and chooses the same PIN for this year’s taxes.

53. Agnes reviews her forms and decides she is ready to e-file.


Ohio State Taxes54. Agnes would like to file her Ohio state taxes today.

55. Agnes was a full-time resident of Ohio.

56. She did not move within Ohio.

57. 900 Short Street in Toledo was her address on December 31st.

58. Toledo CSD is her School District.

59. Agnes’ interest from Farley Federal Bank is not from the State or local government.

60. Agnes’ interest does not need to be taxed.

61. She has never claimed the Ohio Lump Sum Distribution Credit or the Ohio Lump Sum Retirement Credit.

62. She did not need to pay back any income she received in another year.

63. She did not put money into anyone’s CollegeAdvantage Savings plan.

64. Agnes was not paid back for college tuition and fees she deducted in another year.

65. She had no unreimbursed medical or dental expenses.

66. Agnes did not pay for accident or health insurance.

67. She did not contribute to an IDA.

68. She did not donate an organ.

69. She did not lose a job.

70. She did not donate to a political campaign.

71. She did not restore a historical building.

72. She did not make any estimated tax payments. She did not have her refund last year credited to this year’s return. She did not submit an extension request.

73. She did not buy anything she did not pay sales tax on.

74. She does not want to donate $1 to the Ohio Political Party Fund.

**TBB should say Agnes owes $0 in state taxes**

**TBB should say that Agnes’ school district does not collect taxes**

75. Agnes will e-file her Ohio State return.

76. She agrees to the perjury statement.

77. She does not want the tax forms sent to her next year.

78. Agnes reviews her state return.

79. She does not want to receive her e-file status via email.

80. She reviews her forms one last time and decides to submit her e-file now.

-End Scenario-


Reed Family At a GlanceLevel of Difficulty: HardFiling Status: Married Filing JointlyIncome: W-2, 1099-R, 1099-GOther Notes: School District Taxes

Reed Family Scenario

See page 13 for information on how to access The Benefit Bank training website.

Create a Client(Click Create a Client from the Portal Page.)

1. Richard L. Reed lives at 8005 Fairmont Road, Circleville, Ohio, 43113 in Pickaway County.

2. He prefers English.

(Create a Login Name for Richard, a password, security questions & answer.)

Agreements3. He reads and agrees to the Terms and Conditions of Use.

4. He does not want to share his information.

(Select Filing 2012 Taxes from Richard’s Homepage)

Household Information5. Richard prefers the title Mr.

6. Yes, there are other people in his household: his spouse Betty T. Reed.


7. Richard prefers English.

8. He does not have a separate mailing address.

9. His home phone number is 740-555-1000.

Household Member Relationship Date of Birth Marital Status

Social Security Number Citizen? Disabled/

Blind?

Mr. Richard L. March 1, 1949 Married 111-22-3333 Yes No

Mrs. Betty T. Spouse April 10, 1949 Married 222-11-2222 Yes No


10. The household is not receiving Food Assistance, Cash Assistance or Medicaid. Richard would not like more information about these programs.

Preliminary Information11. Richard and Betty review the information on Limitations and decide they would like TBB to help prepare their

taxes.

12. Richard and Betty consent to allow TBB to disclose their tax information. They each type their full names and today’s date in the boxes provided.

13. Richard and Betty consent to allow TBB to use their tax information for purposes other than tax preparation. They each type their full names and today’s date in the boxes provided.

14. Richard and Betty lived in Ohio on December 31st.

15. They would like to file their Ohio taxes with The Benefit Bank.

Filing Status and Dependents16. Richard was married on December 31st.

17. Betty was his spouse on December 31st.

18. Richard and Betty are citizens.

19. Richard and Betty will file Married Filing Jointly.

20. They did not provide financial support for anyone.

21. Betty lived with Richard for all of 2012.

22. Richard can claim an exemption for himself and his spouse Betty.

23. Richard and Betty will contribute to the Presidential Election Campaign Fund.

IncomeRichard has three income forms with him today:

W-2 from Carter Center for the Arts

1099-R from the Circleville Police Department

1099-G from the State of Ohio Department of Taxation



Additional information for Form 1099-R24. This 1099-R was not rolled over.

25. Betty will use the Simplified Method Worksheet.

26. Betty did not contribute to the cost her pension.


Deductions and Adjustments27. Richard’s filing status last year was Married Filing Jointly.

28. He filed a joint return with Betty.

29. Richard itemized his deductions in 2011.

30. He did not deduct state/local general taxes instead of state and local income taxes.

31. Richard has a zero on line 39a of last year’s 1040.

32. Richard did not file Form 4684 last year.

33. Line 5 of Richard’s 2011 Schedule A reads $1200.

34. Line 6 of Richard’s 2011 Schedule A reads $800.

35. Line 7 of Richard’s 2011 reads 0.

36. Line 29 of Richard’s 2011 reads $14,000.

37. Neither Richard nor Betty paid student loan interest.

IT 1099G 2012Below is a statement from the Ohio department of Taxation that shows the amount of your refund received during 2010.

This is NOT A BILL or a NOTICE OF REFUND.

PAYER’s name, address, ZIP code and Federal Identifying number:

State of Ohio Department of Taxation P.O. Box 2476 Columbus OH 43215 Federal ID #31-6402047

OMB No. 15444

2012 Certain Government Payments

Copy B - For Recipient

RECIPIENT’S name, address and zip code Richard L. Reed8005 Fairmont RoadCircleville, OH 43113

RECIPIENT’S identifying number:

111-22-3333#1 - Refund is for tax year:

2011#2 - State or local in-

come tax refunds:

$465.00

Total Reported to IRS

$465.00Instructions for RecipientBox #1 - Identifies the tax year for which the refunds shown in boxes #2 were made. Box #2 - Shows refunds, credits or offsets of state or local income tax you received. If there is an entry in the boxes, it may be taxable to you if you deducted the taxes paid as itemized deductions of your federal income tax return.

FORM 1099 G

**Note that the boxes on Richard’s 1099-G will not match the screen. To enter this form properly into TBB you’ll need to read the information in the blue help links.


38. They did not pay tuition or fees.

39. They did not pay alimony or separate maintenance payments.

40. They did not pay educator expenses.

41. They did not contribute to a Health Savings Account (HSA).

42. They had no excess contributions to an HSA.

43. They did not have travel expenses as an Armed Forces reservist.

44. They did not have business expenses.

45. They did not contribute to an IRA.

46. They did not have any excess contributions to an IRA.

47. No one was blind on December 31st, 2012.

48. Richard will itemize his deductions.

49. The household had more than $2,900 in medical and dental expenses.

50. Richard and Betty paid real estate taxes.

51. Richard and Betty paid home mortgage interest.

52. They gave gifts to charity in 2012.

53. They did not have losses from casualty or theft.

54. They did not have any employee business expenses.

55. They paid tax preparation fees last year.

56. Betty and Richard had $4,900 in medical and dental expenses last year.

57. They were not paid back for these expenses.

58. Richard and Betty need help figuring out which expenses to deduct.

59. Richard and Betty did not pay state and/or local income taxes before 2012.

60. They have never made any estimated state and/or local tax payments.

61. They did not live in more than one state during 2012.

62. They did not receive Veterans’ Benefits during 2012.

63. They did not receive Worker’s Compensation.

64. Richard’s general sales tax rate is 1.5 percent.

65. Richard did not purchase any of these items.

66. Richard does not know the amount of actual state and local sales tax he paid last year.

**TBB should say the amount of state and/or local income taxes is greater than the general sales tax.**

67. Richard would like to deduct his local income taxes.

68. They paid $800 in real estate taxes.

69. Richard does not have a Mortgage Credit Certificate.


70. Richard and Betty gave money to charity last year.

71. They also gave gifts other than cash or checks to charity last year.

72. They gave $950 in cash and checks to charity.

73. They gave $400 in non-cash gifts to charity.

74. Richard and Betty paid $250 in tax preparation fees last year.

Credits75. They did not pay for child care.

76. They did not put money into an IRA or other retirement plan.

**TBB should say they are not eligible for the EITC**

77. They did not make estimated federal income tax payments.

78. They did not request an extension.

Filing the Return79. Betty and Richard would like to e-file.

**TBB should say they are owed a refund of $2060**

80. They would like the IRS to send them a check.

81. Betty is able to sign the return.

82. Richard’s daytime telephone number is 740-555-4321.

83. Richard is an Assistant Curator, Betty is Retired.

84. The IRS has not assigned them a six-digit Identity Protection PIN.

85. Richard does not want to designate another person to discuss his return with the IRS.

86. Richard reviews his forms and follow-up instructions.


87. He agrees to the disclaimers and agreements.

88. They will sign using their 2011 PIN: 43215 and choose the same PIN for this year’s taxes.

89. They review their forms.

Ohio State Taxes90. Richard and Betty were full-time residents of Ohio.

91. They lived together for all of 2012.

92. They did not move within Ohio.

93. 8005 Fairmont Road Circleville, OH 43113 was their address on December 31st.

94. Their school district is Circleville CSD.

95. They have never claimed the Ohio Lump Sum Retirement Credit.

96. Betty’s 1099-R was received due to retirement.

97. They did not receive retirement related to military service.

98. They did not have federal civil service retirement based on credit for military service.

99. They did not need to pay back any income that they received in another year.

100. They did not put money into anyone’s CollegeAdvantage savings plan.

101. They did not have CollegeAdvantage 529 carryover amounts to claim as a deduction this year.

102. They were not paid back for college tuition and fees.

103. They were not refunded or paid back for itemized deductions they had on past year’s Federal Taxes.

104. They have $4,900 in other health care expenses.

105. They did not pay for accident or health insurance premiums.

106. No one was in the military.

107. They did not put money into someone else’s IDA.

108. Neither Richard nor Betty donated an organ last year.

109. Neither Richard nor Betty lost a job in the past 3 years.

110. Neither Richard nor Betty contributed to a political campaign.

111. They did not restore a historical building.

112. They did not make estimated Ohio state tax payments in 2012.

113. They did not have part of their refund credited to this year’s taxes.


115. They did not buy anything they did not pay sales tax on.

116. Neither Richard nor Betty would like to donate $1 to the Ohio Political Party Fund.

**TBB should say they are owed a $575 refund**

117. Richard and Betty would not like to donate their refund.


118. They do not want to credit this year’s refund to next year’s tax return.

School District Taxes119. TBB should recognize that $502.58 on Richard’s W-2 was withheld for school district tax (Circleville CSD).

120. The amount in Box 19, Line 1 for CIRCL was withheld for city tax.

121. They did not make estimated tax payments for Circleville CSD.

122. They did not have part of the 2011 school district tax refund credited to 2010 taxes.


**TBB should say they are owed a $225 refund**

124. They do not want to credit their refund to next year’s return.

125. The would like to paper file state and school district taxes.

126. They review their forms one last time and decide to submit their e-file now.

-End Scenario-

Page 84 • Section Three

Page 84 • Section Threetear hereOBB Counselor Quick Reference

Page 85

Ohio Association of Foodbanks • The Ohio Benefit Bank

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Columbus, Ohio 43215614.221.4336

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