Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

Advanced VITA

This Presentation is designed to:

• Assist you in completing simple State of California Tax Returns.

• Provide a reference while using TaxWise software.

For tax law information please consult FTB 5130, Volunteer Reference Manual, or the 540 Booklet.

Where do I get help?

• Volunteer Hotline – 1.800.522.5665

Operating hours – Monday thru Friday

8 am until 4:30 pm

• Volunteer Reference Manual – FTB 5130

Are You Ready?

Let’s Begin!Let’s Begin!

State View of TaxWise

In the State Information Section, full year resident box, set CA as the default state.

Required Field

Use 999999 when State ID number box is blank.

SDI is often found in Box 14 of the form W-2. Always enter SDI amounts in boxes 19 and 20.

Check to change social security and Medi-care income and tax amounts.

Check to change the amount of state wages.

Enter SDI 2 times on the W2

AND NOW FOR THE GOOD NEWS!

Most California tax information flows automatically from the

federal return.

When does TaxWise need your input? Let’s look at the most frequently used

screens.

Renter’s Credit

Every question on this form helps the software to correctly calculate the Renter’s Credit.

The renter’s credit amount on the worksheet may differ from the amount on the return.

Why?

Do we “Get the red out?”

Why is this important?

The state form requires unearned income information.

Enter percentage of physical custody.

Enter bank information on the New Interest Statement for correct flow through in TaxWise.

Exempt Interest Income from a Mutual Fund

Tribal Income of a Tribal Member (FTB Pub 674)

Railroad Retirement

Taxable Refunds

Unemployment/Paid Family Leave

ADJUSTMENTS TO LOOK FOR

Savings Bond/Treasury Note Interest

IRA Adjustment

California Lottery

Capital Loss Carryover

US Social Security & Foreign Social Security

For a complete list – get FTB Publication 1001

ADJUSTMENTS TO LOOK FOR

Capital Loss Carryover

Enter in Box 6, as a negative number.

IRA

Adjustment

More Good News!

TaxWise automatically calculates the California adjustment for Unemployment and Social Security.

Railroad Retirement needs a little help.

There are rarely any adjustments on this line. Certain tribal income is a direct entry on the CA CA.

Did the software tax the correct income for California? This form tells the tale.

When filing a HOH return, the HOH Schedule is a required form for electronic filing.

On Form 5805, always override estimate penalties to zero.

Electronic signature options should be set as a default. Choosing a refund method is up to the taxpayer, and the input to the volunteers !

For Federal tax owed/state refund, check the different account box on 540, Page 2, and then re-key the bank account information. Even if it is the same account.

For a federal refund/state balance due, check the Electronic Filing Only option. TaxWise defaults red all fields that must be re-keyed.

How to set next year’s estimate payments using TaxWise.

Give the California 8879 form to the taxpayer to keep with their records.

RDP filing is a senior issue.

Diagnostics Make A Difference

• Informs the volunteer of efiling errors made on the state return.

• Gives important information on how the volunteer can fix the error.

What Publications Will Help?

540 Booklet540 Booklet Publication 1001 – Publication 1001 –

California AdjustmentsCalifornia Adjustments Publication 1005 – Pension Publication 1005 – Pension

and Annuity Guidelinesand Annuity Guidelines Publication 1540 – Publication 1540 –

California Head of HouseholdCalifornia Head of Household

Begin with the Main Info Screen Happy Retiree – Happy Retiree –

DOB 05/12/1939 - DOB 05/12/1939 - RetiredRetired

Spouse Retiree – Spouse Retiree – DOB 12/01/1940 – DOB 12/01/1940 – StudentStudent

Address – 2222 22Address – 2222 22NDND Street, Sacto., CA Street, Sacto., CA 9581495814

Use a Practice SSNUse a Practice SSN

Phone Number – Phone Number – 916.444.4444916.444.4444

Married Filing Joint Married Filing Joint filing statusfiling status

Direct Deposit for Direct Deposit for refundrefund

Routing: 121000358Routing: 121000358

Account: 001500155Account: 001500155 Practitioner PinPractitioner Pin

What! An exercise?

Darn, just when I thought I could catch a NAP!

Next Step – 1099R & Income FED ID - 94-FED ID - 94-

01234560123456 $40,000 FED and $40,000 FED and

CA PensionCA Pension $2500 FED $2500 FED

withholdingwithholding $500 CA $500 CA

withholdingwithholding $19,000 Social $19,000 Social

Security IncomeSecurity Income

Taxpayer’s Taxpayer’s address is correctaddress is correct

$17,000 Capital $17,000 Capital loss carryoverloss carryover

No State ID listedNo State ID listed $75 Bank Interest $75 Bank Interest

& $25 Savings & $25 Savings Bond InterestBond Interest

Additional Information

The Retirees take the The Retirees take the standard deduction .standard deduction .

They rent a duplex They rent a duplex from their daughter. from their daughter. Landlord address: Landlord address: 2223 222223 22ndnd Street Street Sacramento CA Sacramento CA 95814.95814.

The Retirees sold their The Retirees sold their home in 2009 and home in 2009 and moved into the rental moved into the rental 06/25/2009.06/25/2009.

There was no taxable There was no taxable gain on the home sale.gain on the home sale.

Spouse paid $500 Spouse paid $500 tuition in 2009.tuition in 2009.

AGI $45,310

Questions?