MN-1 District Coordinator Meeting

MN-1District Coordinator

Meeting

September 26, 2014

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Volunteer Coordinator

Kerrin Lee651-556-3052 or 1-800-818-6871

[email protected]

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• Direct Deposit Promotion

• Governor Dayton’s “Unsession”• What have we been doing? • Power of Attorney• Payment Voucher Project

• What laws were eliminated?

Department Updates

“Opportunities to give us feedback”

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• Federal Conformity (1st Tax Bill)• March 21, 2014 tax bill• Aligns Minnesota’s tax code more closely to federal

code• 1.1 million returns filed with the new law changes• Reviewed 280,000 returns that were already filed

• Letters to Homeowners• Potential eligibility for Homestead Credit Refund• All letters were mailed by August 22, 2014

Department Updates

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• Omnibus (2nd) Tax Bill• Signed May 20, 2014• Retroactive Changes for 2013 • Property Tax Refunds

• Changes for 2014 and forward

Tax Law Updates

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Tax Law UpdatesTemporary Reading Credit

The Basics• Tax year 2014 only• 75% of qualifying expenses• Maximum credit of $2,000• Credit calculated on Schedule M1READ• Fact sheet will be released soon• Visit our website and search Reading Credit

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Tax Law UpdatesTemporary Reading Credit

Qualifying Child• A child who:• meets the definition of a qualifying child for K-12

Education Credit, • has been evaluated by a school district for a specific

learning disability,• was found, through the evaluation, to have a

deficiency in reading skills, reading fluency or reading comprehension that impairs his or her ability to meet expected age or grade-level standards, and

• does NOT qualify for an Individualized Education Program (IEP)

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Qualifying Expenses• Tutoring, instruction, or treatment• Not compensated by insurance, or pre-tax

accounts• Actual expenses that can be documented• Not used to claim the K-12 Credit or

Subtraction

Tax Law UpdatesTemporary Reading Credit

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Qualifying Tutoring and Instruction Expenses• Instruction by a qualified instructor that helps the child

meet state academic standards in various subjects

Qualifying Instructor• Cannot be a lineal ancestor or sibling of the child• Must meet one of the following tests:• Have a valid teaching license for the grade level and subject

taught (or is supervised by someone who is)• Have successfully completed a teacher competency evaluation,• Provide instruction at an accredited school, or• Have a bachelor’s degree

Tax Law UpdatesTemporary Reading Credit

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Qualifying TreatmentTo qualify for the credit, the treatment must:• be intended to improve the child’s basic reading skills,

reading comprehension and reading fluency,• use recognized diagnostic assessments to determine what

intervention would be most appropriate for the child, and• use a research based method to teach language decoding

skills in a systematic manner.

If you are unsure whether or not a child’s treatment qualifies, contact the treatment provider.

Tax Law UpdatesTemporary Reading Credit

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Tax Law UpdatesChild and Dependent Care Credit

• Minnesota Child and Dependent Care Credit aligns more closely to the federal credit

• Maximum qualifying expenses increased:• 1 Qualifying Child - $3,000 maximum• 2 or more Qualifying Children - $6,000 maximum

• Percent of qualifying expenses allowed in calculating the credit increased

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Minnesota Income Tax Additions• Married couples claiming the standard deduction are no

longer required to add back a portion of their deduction

Minnesota Income Tax Subtractions• Employer-provided mass transit benefits that are included

in federal taxable income can be subtracted. The per month subtraction amount is limited to the lessor of:• $120, or• the benefits received in excess of $130

• Military pay earned under Title 32 AGR Status in the Minnesota National Guard or Reserves can now be subtracted

Tax Law UpdatesAdditions and Subtractions

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Tax Law Updates2013 Property Tax Refund

What changed?• Renter’s Property Tax Refunds increased by 6%• Homestead Credit Refunds increased by 3%

What if my clients already filed?• We will make changes to returns filed before 6/4/2014

and those that used outdated refund tables

What if my clients haven’t filed yet?• Use our updated refund tables on our website if filing

by paper• Ensure that you have the most up-to-date version of

TaxWise installed if filing electronically

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Tax Law UpdatesSupplemental Agricultural Credit

What is it?• Agricultural homesteaded properties• Property taxes payable 2014• Lesser of $205, or net taxes excluding house, garage, and

surrounding acre

Additional Information• Credit will be administered by counties as a reduction in

property taxes payable going forward• Relative Agricultural Homestead classification qualifies• Must not owe delinquent property taxes

What do you need to do?• Nothing- we will mail checks by 10/15/14• If you have questions, review our website or contact the

county auditor

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Tax Law Updates

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• What is it?• Tax professionals must follow standards of ethics and conduct• If you don’t, you may be subject to penalties, criminal

prosecution, or suspension from representation

• Who may this affect?• Attorneys, accountants, enrolled agents, and any person

preparing returns for compensation• Anyone who represents taxpayers in dealings with us

• Why are we sharing this with you?• We want you to be informed and share this information

Tax Professional Enforcement

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What can we do?

Tax Professional Enforcement

If a tax professional Then we can• Knowingly files false or fraudulent

tax returns• Advises a taxpayer to evade taxes• Does not file a required tax return• Attempts to threaten or bribe a

department employee• Does not demonstrate adequate

familiarity with state tax laws and rules

• Suspend them from “representing” taxpayers before the Department for up to 5 years or bar them indefinitely

• Place their name on our Tax Professionals Sanction List

• Is convicted of a crime related to tax return preparation

• Is assessed a civil penalty of more than $1,000 for certain actions related to tax return preparation

• Place their name on our Tax Professionals Sanction List

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• DOR Letter Procedures• Quality Review of M1 and M1PR• Point of emphasis

• Modernized e-file• Unlinking to send M1PR only• Do not e-file federal returns with $1 of interest or

income• Site Visits• See how the site operates• Looking for best practices• Available for questions or concerns

Administrative Updates

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• January Training Sessions• Contact Kerrin to set up a date and to discuss

material you wish to be covered• MN Review Questions• Incorporate into your state training• Volunteers will need to answer the questions

• MN Intake Sheet• Questions on the sheet should flag potential issues• Feel free to make copies and distribute as needed

State Training

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• Packets will be mailed to volunteers using the volunteer addresses provided by the IRS

• After mid-November, send any new volunteer names and addresses directly to Kerrin to get MN training materials

• MN training materials will be mailed mid-December to all volunteers

• Extra copies of training packets are available • Call or email Kerrin to have additional copies sent out

Volunteer Training Packets

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• Changes to order form for filing season 2014• No payment vouchers

• Please correctly fill out the form and order only what you need• Forms are also available on our website or at

libraries • Contact Kerrin if you have a shortage of forms later

in the year• Order the appropriate form and booklet if you are

doing prior year returns by paper

Form M281V: Blank 2014 MN Forms

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• Please update your tax site information in the AARP Portal system• If specific information applies to your site,

make sure to note it in the additional information section• Military-certified volunteers: Please note this in

the additional information section or email Kerrin

• Update opening and closing dates for each site• Will send out reminder to all DC’s before tax

season starts

Site List on DOR Website

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Helpful Resources

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VITA/AARP Tax Aide Hotline• 651-556-3050• 1-800-657-3829• Hours: Monday – Friday, 8:00 am – 4:30 pm

Email questions to: [email protected]

Please encourage volunteers to use the hotline.

Minnesota Volunteer Hotline

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Outreach and Education Staff

Hillary Jasicki (Outreach & Education Leadworker) 651-556-6471, [email protected]

Celeste Marin (Latino Outreach Coordinator)651-556-6616, [email protected]

Chueyee Moua (Asian Outreach Coordinator)651-556-6613, [email protected]

Jake Feneis (Paid Preparer Outreach Coordinator)651-556-6606, [email protected]

Karen Kittel (Withholding Tax Outreach Coordinator)651-556-3668, [email protected]

Thank You For All Of Your HARD WORK!