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

Dec 18, 2015

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Martha Bond
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Page 1: 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.

Page 2: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 3: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

Are You Ready?

Let’s Begin!Let’s Begin!

Page 4: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

State View of TaxWise

Page 5: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Required Field

Page 6: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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.

Page 7: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Check to change the amount of state wages.

Page 8: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

Enter SDI 2 times on the W2

Page 9: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

AND NOW FOR THE GOOD NEWS!

Most California tax information flows automatically from the

federal return.

Page 10: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

screens.

Page 11: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

Renter’s Credit

Page 12: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 13: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Why?

Page 14: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

Do we “Get the red out?”

Why is this important?

Page 15: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

The state form requires unearned income information.

Enter percentage of physical custody.

Page 16: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 17: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using 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

Page 18: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 19: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

Capital Loss Carryover

Enter in Box 6, as a negative number.

Page 20: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.
Page 21: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

IRA

Adjustment

Page 22: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

More Good News!

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

Page 23: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

Railroad Retirement needs a little help.

Page 24: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 25: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 26: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 27: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.
Page 28: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

On Form 5805, always override estimate penalties to zero.

Page 29: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 30: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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.

Page 31: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 32: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 33: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 34: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

RDP filing is a senior issue.

Page 35: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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.

Page 36: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 37: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 38: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

What! An exercise?

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

Page 39: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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

Page 40: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

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.

Page 41: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

AGI $45,310

Page 42: Advanced VITA This Presentation is designed to: Assist you in completing simple State of California Tax Returns. Provide a reference while using TaxWise.

Questions?