Familiarization training
1 / 139

Familiarization Training - PowerPoint PPT Presentation

  • Uploaded on
  • Presentation posted in: General

Familiarization Training. NJ TAX-AIDE 2013 – 2014 SOMERSET COUNTY. Purpose of this Training. Understand policy & procedures of AARP Tax-Aide Program Understand what is expected of volunteers Understand typical tax documents

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

Download Presentation

Familiarization Training

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript

Familiarization Training


2013 – 2014


Purpose of this Training

  • Understand policy & procedures of AARP Tax-Aide Program

  • Understand what is expected of volunteers

  • Understand typical tax documents

  • Understand how to access & use TaxWise Online (TWO)

  • Understand how to prepare a simple tax return using TWO

AARP Tax-Aide

  • Charitable, non-profit program administered by AARP Foundation

  • Free, nationwide confidential service

  • Help low- to mid-income taxpayers with special attention to age 60+

  • Answer tax questions & prepare returns

  • Funded 1/3 AARP, 2/3 IRS Tax Counseling for the Elderly (TCE)

Mission of AARP Tax-Aide

  • To provide high-quality, free income tax assistance & tax form preparation to the greatest number of low- & moderate-income taxpayers which will produce the most beneficial result for the taxpayers we serve

    • No income or age limits

    • Only limits are on complexity of return

National, Volunteer-Run ProgramTY 2012 National Statistics

  • Tax-Aide started in 1968 and is now the largest nationwide, volunteer-run free tax service

  • Taxpayers served: > 2.6 million

  • Federal Tax Returns prepared: 1.6 M

  • Clients got $1.3 B in refunds, $233M in Earned Income Tax credits

  • Volunteers: 36,000

Somerset County Tax-Aide Program

In Somerset County:

  • For 2012 tax season, we completed over 1,683returns at 6 sites (up 10% over 2011)

    • 100% e-filed on the computer

    • Hillsborough, Manville, Raritan,

    • Franklin, Bridgewater, Green Brook

  • Approx. 60 volunteers

AARP Tax-Aide Counselors

  • Are trained

  • Become certified

  • Are assigned to a site

  • Provide free tax counseling

  • Report their service

  • Promote the program

AARP Tax-Aide Counselors Are Trained

  • In Federal & NJ tax law

  • In computer tax preparation software (TaxWise)

    • Use personal or loaner computers

  • In administrative requirements

  • In use of appropriate reference materials

    • Publications, forms, schedules provided

Publications & Tools

  • Volunteer Resource Guide (Pub 4012)

    • The “Bible”

  • Process-Based Training (Pub 4491)

  • Your Federal Income Tax (Pub 17)

  • NJ What’s In, What’s Out lists

  • Site Sign-In Sheet & Activity Report

  • Interview & Intake Sheets (Form 13614-C)

  • IRS 1040 Instruction Book

  • NJ 1040 Instruction Book & GIT Books

Important Reference Websites

  • http://www.njtaxaide.org/tavolunteers/somerset

    • Somerset County website

  • http://taxprep4free.org

    • Training resources

    • Proficiency problem scenarios & refund monitors

    • Replaced older website: (http://www.njtaxaide.org/tavolunteers/)

  • http://www.AARP.org/tavolunteers/

    • Volunteer portal includes news, cybertax notifications, links for administration for AARP Tax-Aide volunteers

Confidentiality, Privacy & Security

  • Keep taxpayer info strictly confidential

  • Do not retain taxpayer documents

  • Do not leave computer unattended if it has taxpayer data

  • Most sites use TaxWise Online where data is stored on secure servers

    • Only 1 site still using TaxWise Desktop. All taxpayer info is deleted from computers by April 30

Insurance Coverage & Liability

  • Travel accident insurance coverage if on Tax-Aide business

  • Insurance is supplemental to Medicare or its equivalent & covers medical expenses &/or death only. Does not cover personal property such as cars, computers, etc.

  • Notify district coordinator ASAP

  • By congressional law, counselors are not liable if they follow the rules

Types Of Returns YouCan/Can’t Prepare

  • Prepare only those returns for which you have been trained & certified & which do not appear on the NJ “What’s Out” List

  • Refer taxpayer to experienced counselor if tax subject is in Training Module “Topics for Experienced Counselors “ or if you are not comfortable with a particular tax situation

  • Refer taxpayer to paid tax preparer if anything on return is Out Of Scope

  • Do not prepare a tax return when you suspect information is untruthful

Counselor Certification Requirements

  • Pass IRS tests with grade of 80%+ (Volunteer Standards of Conduct – Ethics & Advanced level tests)

    • Open book

  • Demonstrate proficiency in preparing tax returns

    • Complete 4 problems (Baylor, Fleming, Sterling and a comprehensive problem tbd (focus on 2013 tax law changes) returns correctly

  • Sign Volunteer Standards of Conduct

Getting StartedOverall Process & The Interview


Overall Process

  • Client calls Tax Appointment phone line requesting tax help

  • Client is assigned to tax site coordinator/ volunteer via email

  • Tax volunteer calls client to set up appointment & reviews Initial Phone Sheet

  • Client arrives at tax site & completes Intake/Interview Form (Section A Pages 1& 2)

  • Tax return prepared, quality reviewed, printed and e-filed

    NOTE: Refer to Process Overview handout for more details

Interviewing – The Key To A Good Return

  • Focus on interviewing throughout data gathering process

    • Also review prior year return for items such as last year’s income and deductions, carry forward loss, and refund applied to this year’s taxes

  • TaxWise software alone is not enough

  • Use Intake/Interview form for questions on filing status, dependents, Earned Income Credit (EIC), Child Tax Credit (CTC) as applicable

    • AARP policy mandates use of IRS Intake/Interview Sheet by Tax-Aide volunteers (Form 13614-C)

  • Use Volunteer Reference Guide – (IRS Pub 4012) decision trees and flow charts

Effective InterviewingPub 4012 Page 4

  • Speak clearly, simply, and loud enough

  • Build rapport

  • Have patience

  • Reassure the taxpayer (“I understand”)

  • Ask effective questions (e.g. - probing and open-ended)

  • Allow the taxpayer time to respond

  • Involve the taxpayer in the process

Social Security Number (SS #)

  • Name/SS # must match Social Security Administration (SSA) database

  • If no SS #, taxpayer uses Form SS-5 to apply

    • Takes 6 weeks to process

  • Use appropriate verification documents to prevent processing delays or rejects

    • Social Security card

    • SSA-1099 benefit statement

    • SSA letter showing both SS # & name

Individual Taxpayer ID Number (ITIN)

  • Certain resident and non-resident aliens may not be eligible for a SS #

  • Need ITIN for federal tax reporting

  • Verify original copy of ITIN card or letter

  • Taxpayer is not eligible for Earned Income Credit (EIC)

  • ITIN return can be e-filed

AARP Intake/Interview Form (13614-C)

  • Completed by client – Section A

    • Page 1 – General information about taxpayer, spouse & dependents

    • Page 2 – Summary of income, expenses & life events

  • Completed by preparer

    • Page 1 - Shaded section about dependents

    • Page 4 - Notes

  • Used by quality reviewer

    • Page 3, Part VII

Intake/Interview Sheet - Personal Info,Marital Status & Household Info (P. 1)

Intake/Interview Sheet – Income, Expenses & Life Events (P. 2)

Intake/Interview Sheet –Life Events, Additional Info (P. 2)

Intake/Interview Sheet – Quality Review Section (P. 3)

Intake/Interview Sheet – Comments & Notes Sections (P. 4)

Taxpayer Information

  • Information from Intake/Interview sheet & client interview

  • Input into TaxWise on Main Info Screen

  • Includes

    • Personal information for taxpayer & spouse

    • Presidential election campaign question

    • Filing status

    • Dependent information

    • Exemptions

IRS Form 1040

  • Everyone files a 1040 or a version of 1040 (1040A, 1040EZ, etc.)

  • Split up into 4 general areas

    • Taxpayer information

    • Income

    • Taxes & Credits

    • Payments/Refunds Due & Signature

Form 1040 Taxpayer Information


Introduction To TaxWise

Pub 4012, Section N

TaxWiseTW Desktop or TWO

  • TaxWise forms-based software used for tax return preparation

  • Most sites will use TaxWise Online (TWO). One site might still use TaxWise Desktop

  • Familiarization training will use 2012 TWO software

Logging on to TaxWise Online (TWO) Training

  • Use this URL to access TWO training website for familiarization training:https://twonline.taxwise.com/training/12

  • Use client ID 2276756

  • First time logging on, use your assigned ID as both User ID and Password.

    • All IDs start with SOMERSET

    • Last 2 digits are your student #

TWO Initial Sign-In

User Name set up by administrator

Initially password is same as User Name

TWO Password Change Request

TWO Password Change

TWO Main Screen & Starting a New Return

Start a new return

TWO Start New Return

Enter SS # twice

SS# in XXX-YY-ZZZZ format

XXX=First 3 #s from problem

YY=Student ID

ZZZZ=4139 (EFIN)

TWO Open Existing Return(Select SS #)

Open an existing return by

clicking on SS#

TWO Open Existing Return (Enter SS #)

  • Open existing return by:

  • Click on Open return icon

  • Enter SS#

Always click on Go to Tax Forms; never use Go to Interview

TaxWise Refund Monitor & Navigation Tree

Refund Monitor

Adjusted Gross Income (AGI) amount &

Refund Amount provide running totals

Complete & Correct Form: Check Mark

Incomplete or Incorrect Form: All Red or Red Exclamation Point

State Forms Loaded when State is Selected

Sample Intake/Interview Sheet

Sample Intake/Interview Sheet (cont’d)

TaxWise Main Information Screen

Main Information ScreenBasic Information – TaxWise Tips

  • Enter names

    • Without punctuation marks (. , -)

    • Last name of spouse is only needed if different from taxpayer

  • Primary SS # is automatically populated

    • Spouse’s SS # must be entered

  • Enter zip code - TW populates city and state

TaxWise Main Information Screen (cont’d)

Main Information ScreenFiling Status – TaxWise Tips

  • Enter birth date as mmddyyyy (TW inserts slashes). Age is calculated

  • Check box for blind or disabled, if applicable. This is used to calculate standard deduction

  • Enter date of death (if taxpayer died in 2012 or 2013 only - since using 2012 software)

    • Check box to indicate who is filing return for deceased taxpayer

TaxWise Main Information Screen (cont’d)

Main Information ScreenFiling Status – TaxWise Tips

  • Donation for Presidential Election Campaign does not impact client’s refund/balance due

  • Click on box to choose filing status

    • For Married Filing Single (MFS)

  • Enter spouse’s name, SS #, & answer questions

  • For Head of Household (HOH)

    • Only enter child’s name and SS # if child is not being claimed as a dependent

  • For QW, must enter year of death (2010 or 2011, since we are using 2012 software)

    • For real tax returns TY2013, date of death of 2011 or 2012 to qualify for QW

  • Gubernatorial Elections Fund Question – NJ 1040 Page 3

    TaxWise Main Information Screen (cont’d)

    Main Information ScreenExemptions – TaxWise Tips

    • TaxWise calculates first line of Exemptions based on previous data

    • Check box on lines 6A, B or C only if appropriate

    Main Information ScreenDependents – TaxWise Tips

    • List dependents from youngest to oldest

      • If more than 4 dependents, list additional dependents via Form 1040 Page 1 link to New Addl Deps Form

    • Enter 1-12 in M in HM (Months in Home) box

    • Use Code box drop down to select relationship code

      • Only way to indicate non-dependent

    • Check DC box (Child & Dependent Care) if there are eligible expenses

    • Always check EIC box for children

    • CTC box is automatically checked by TaxWise if child is eligible

    TaxWise Main Information Screen (cont’d)

    Main Information Screen – TaxWise Tips

    State Information Section

    • State Return defaults to “NJ”

      • NJ state return automatically e-filed after Federal return is accepted.

    • For residents of other states, change state code

    • If TaxPayer does not have to file NJ return, click NO on box “Do You Want to Electronically File This Return” on P.3 of NJ return

      • Leaves NJ return as part of file, but does not e-file it. If NJ taken out on Main Info screen, NJ return deleted

    TaxWise Main Information Screen (cont’d)

    Main Information Screen – TaxWise Tips

    • Bank Information Section

      • If Direct Deposit or EFT processing is desired, enter 9-digit routing number and account number as per client’s sample check

      • Do not use deposit slip info

      • Will also have to enter information a second time at bottom of Form 1040 for verification purposes

    TaxWise Main Information Screen (cont’d)

    Preparer Use Form

    Preparer Use Form – TaxWise Tips

    • Must answer language/disability questions on Lines 11/12 from info on Interview/Intake Sheet, Page 3

    • Answers are used for grant and statistical purposes only

    • Enter preparer’s/quality reviewer’s initials on Lines 13/14

    • Site ID number will be pre-populated

    • Taxpayer reminders can be entered at bottom of screen

    TaxWise Forms Menu

    Forms Menu:

    List of all Forms & Worksheets in TaxWise

    Includes State Forms

    TWO Field Color Coding

    Underline Color in TWO

    Basic Tax Concepts – 1040 P.1Using TaxWise Software

    Pub 4012

    What We Will Review

    • IRS Form 1040

    • Income:

      • W-2 Wage & Tax Statement

      • IRS 1099-INT, 1099-DIV

      • 1099-R, 1099-G, SSA-1099

    • Adjustments/Deductions:

      • Student loan interest deduction

      • Standard and Itemized deductions (IRS Schedule A)

    • Taxpayer Credits

    • NJ 1040


    • All sources of income included in this section

    • Income derived from various forms usually issued by employer, financial institution, government agency, etc.

    • Information from IRS forms entered into respective form or worksheet in TaxWise

    • TaxWise puts appropriate values into 1040

    • Adjustments to income included in this section

    • Final line is “Adjusted Gross Income” (AGI)

    Form 1040 Income Section





    W-2 Wage & Tax Statement

    • Employer issues to employee for tax year

    • Includes:

      • Employer identification info

      • Employee identification info

      • Wages earned

      • Taxes withheld

    • All info to be copied to TaxWise EXACTLY as shown on W-2 form

    • TaxWise puts info entered in proper place

    W-2 Wages & Tax Statement

    Employer & Employee info

    Federal Wage &Tax Info




    State Wage & Tax Info


    NJ Specific Taxes

    TaxWise W-2 Screen

    Interest & Dividends1099-INT & 1099-DIV

    • Issued by financial institutions for interest &/or dividends received

    • Enter info from these forms in TaxWise on Sch B Interest/Dividend Statement screens

    • TaxWise transfers info onto Sch B Interest & Ordinary Dividends & then to 1040


    Interest Income

    Early Withdrawal



    Federal Income

    Tax Withheld

    TaxWise Schedule B Interest Statement Screen






    Payer & Payee Info


    Capital Gains


    Federal Taxes


    TaxWise Schedule B Dividend Statement Screen

    Retirement Income1099-R

    • Distribution from pension, IRA, annuities, etc.

    • Enter info on TaxWise 1099-R screen

    • TaxWise puts the proper info on the correct 1040 lines


    Taxable Amount

    Gross Distribution



    If taxable

    amount not


    there is more

    to do

    Distribution codes

    on back or in Help

    TaxWise 1099-R Screen

    Determining NJ Taxability of IRA Distribution – NJ IRA Worksheet

    • May be able to claim Federal tax exclusion when income is contributed to IRA; contributions all taxable on NJ return

    • To determine NJ taxability of IRA distributions, complete separate NJ IRA Worksheet for each IRA 1099-R

    • If taxpayer does not have info needed for Worksheet, must still complete by “getting the red out;” otherwise, income will not be included in NJ income

    NJ IRA Worksheet

    Copy # of IRA being worked on

    “Get the red out” if info not available

    Unemployment Compensation1099-G

    • Unemployment compensation received from government

    • Enter info on TaxWise 1099-G screen

    • TaxWise puts the proper info on the correct 1040 line

    TaxWise 1099-G



    New Jersey Department of Labor


    TaxWise 1099-G Screen

    Social SecuritySSA-1099

    • Enter info from SSA-1099 onto TaxWise 1040 Worksheet 1 screen

    • Includes:

      • 2012 net benefits (from Box 5)

      • Medicare Parts B, C & D (from Description box)

        • TaxWise transfers to Schedule A Detail Medical Expenses

      • Federal income taxes withheld (from Box 6)



    Medicare Part D

    TaxWise 1040 Worksheet 1 Screen(for Social Security)

    Student Loan Interest Deduction

    • Can deduct qualified student loan interest as an adjustment to income

      • On 1040 Line 33

    • Link to 1040 Worksheet 2 to enter into TaxWise

    TaxWise 1040 Worksheet 2 Screen(for Student Loan Interest)

    Other Sources of Income Not Covered in Familiarization

    • Examples of other sources of income we might see but not covered in familiarization:

      • Sale of stocks and bonds

      • Sale of home

      • Partnership income on Schedule K-1

      • Gambling income

      • Income tax and property tax refunds

      • Alimony

      • Business income

    Basic Tax Concepts – 1040 P.2 Using TaxWise Software

    Pub 4012

    Form 1040 Page 2 Taxes & Credits

    • Start with AGI

    • Deduct itemized or standard deductions

    • Deduct personal exemptions

    • Arrive at taxable income

    • Alternative Minimum Tax (Out of Scope)

    • Apply non-refundable tax credits

    • Add other taxes

    • Bottom line is Total Tax

    Form 1040 Taxes & Credits Section

    Standard vs. Itemized Deductions

    • Everyone is allowed a standard deduction

    • TaxWise determines amount of standard deduction depending on:

      • Filing status

      • If taxpayer is age 65 and older

      • If taxpayer is blind

    • For some, itemized deductions can be more beneficial than standard deduction

    Standard/Itemized Deductions on 1040

    Standard vs. Itemized Deductions (cont’d)

    • Itemized deductions include:

      • Medical

      • Taxes (e.g.-state/local taxes paid, real estate taxes)

      • Mortgage Interest

      • Charitable Contributions

      • Miscellaneous deductions

    • Enter itemized deductions in TaxWise on Sch A & Sch A Detail

      • TaxWise determines whether standard or itemized is better & transfers to 1040 Line 40

    Schedule A Itemized Deductions


    Items Not Eligible as Itemized Deductions

    • Clients frequently bring in extra documents that cannot be claimed as deductions

    • Counselor must determine which documents are not needed for tax return. Examples include:

      • Household bills (water, sewer, credit cards, etc.)

      • Funeral expenses

      • Life insurance proceeds

      • Ineligible charitable contributions

    Medical Expenses Paid

    • Medical expenses can be claimed on both Federal and NJ tax returns

    • On Federal, can claim medical expenses above 10% of AGI; 7.5% if 65 or older

    • On NJ, can claim medical expenses above 2% of NJ gross income

    • Enter expenses on Sch A Detail screen & TW will do appropriate calculations for both Federal & NJ

    TaxWise Schedule A Detail for Medical Expenses

    Real Estate Taxes Paid

    • Real estate taxes paid can be claimed on both Federal and NJ tax returns

    • On Federal, real estate taxes claimed as an itemized deduction on Schedule A

    • On NJ, taxpayer can claim a property tax deduction or credit (whichever is greater)

      • Property taxes entered on NJ Worksheet F

      • TaxWise automatically determines whether deduction or credit is greater

    TaxWise Schedule A Real Estate Taxes

    TaxWise NJ Worksheet F for Property Taxes

    Rent Paid

    • Rent paid cannot be claimed on Federal tax return

    • Portion of rent paid can be claimed on NJ tax return

      • Rent paid entered on NJ Worksheet F

      • TaxWise calculates the 18% of rent paid that constitutes property taxes

      • TaxWise automatically determines if property tax deduction or credit is greater

    TaxWise NJ Worksheet F for Rent

    Child Tax Credit (CTC)

    • Non-refundable credit that allows taxpayers to claim tax credit per qualifying child

    • TaxWise automatically populates CTC box on Main Info screen if eligible& calculates this credit

    • If not claimed in full, taxpayer may be eligible for refundable Additional Child Tax credit

    CTC Box on Main Info Screen

    CTC on 1040


    • Start with total tax

    • Apply tax withheld & estimated payments

    • Apply refundable credits

    • Bottom line

      • Refund

      • You owe

    • Direct deposit information

    • Signature line

    Form 1040 Payments/Refund/Owe/ Sign Sections

    Earned Income Credit (EIC)

    • Refundable tax credit for people who work but do not earn high incomes

    • There are requirements that must be met to get this credit (details in Federal Tax Training)

    • For this class:

      • Check EIC box next to dependent’s name on Main Info Screen

      • Follow form questions on EIC Worksheet in order they are shown

    EIC on Main Info Screen

    EIC Worksheet

    Answer only questions in red. Follow “go to” directions

    Bank Account Information

    • Taxpayer can have refund deposited directly into bank account or have tax due electronically transferred from bank account to IRS

    • Must enter routing number and bank account number twice on 2 different TaxWise screens

      • Main Info screen

      • 1040 Page 2

    Finding Routing Number & Account Number on a Check

    Robert & Mary Smith

    54 Main Street

    Bridgewater, NJ 08807

    Routing Number

    Account Number

    TaxWise Main Info Screen – Bank Account Information Section

    TaxWise 1040 Page 2 - Bank Account Information

    Additional NJ Entries

    • Municipality code must be entered on NJ 1040 Page 1

      • Can be found through TaxWise Help or in NJ 1040 Instruction Booklet

    • Dependent health insurance coverage

      • Must check box on NJ Dependent Worksheet if dependent does not have health insurance coverage

      • Info sent to NJ Department of Human Services so they can make uninsured residents aware of coverage available under Medicaid/NJ FamilyCare programs

    TaxWise NJ Municipality Code On NJ 1040 Page 1

    Taxwise NJ Dependents Worksheet

    Link to Dependents Worksheet from NJ 1040 Page 3 Line 13

    Additional NJ Exemption for Full-Time College Student

    • NJ allows an additional exemption for a college student if:

      • Student is under 22 years of age (at year end) for entire tax year

      • Student attends college full-time

      • Student spends at least some part of each of 5 calendar months of tax year in school

      • Educational institution is accredited

      • Taxpayer paid ½ or more of tuition & maintenance costs (not including financial aid)

    TW Additional NJ Exemption for Full-Time College Student – NJ 1040 Line 11

    NJ 1040Use Tax

    Individual buys a product/service outside of NJ (or on Internet), intended for use in NJ

    • If seller did not collect sales tax

      • purchaser should pay NJ sales tax

    • If seller did collect sales tax but at a rate lower than New Jersey's

      • purchaser should pay the difference in sales tax

    • Use NJ 1040 line 45 with scratch pad

    Use Tax on TaxWise NJ 1040 Line 45:Use Tax Due on Scratch Pad

    Concluding The Interview


    Completing The Interview

    • Options:

      • Advise taxpayer return is Out Of Scope

        (return all documents to taxpayer)


      • Continue to assist taxpayer with their return

    Finalizing Return (cont’d)

    • After return is completed:

      • Ensure all forms in red in Forms Tree are corrected (GET THE RED OUT)

        • Click on red item in Forms Tree & TaxWise will take you to correct screen

        • Scroll down until you find item underlined in red

        • Correct or complete red item(s)

    Forms to be Corrected in Forms Tree

    Click on item in red on Forms Tree

    Items to be Corrected

    Scroll down to item

    underlined in red

    & correct/complete

    Items to be Corrected

    Scroll down to item

    underlined in red

    & correct/complete

    Finalizing Return (cont’d)

    • Run Diagnostics (icon at top of TW screen)

      • Click on item in diagnostics that needs correction. TaxWise will take you to correct screen

        • Correct error(s)

      • Verify need for any overrides

      • Read warnings & determine if any action needs to be taken

      • Must re-run diagnostics after corrections

    Run Diagnostics

    Click on Run Diagnostics icon.

    Review and fix identified errors

    Quality Review (QR)QR is a requirement on 100% of returns

    • When the tax return has been completed in TaxWise, another certified counselor (second pair of eyes) performs a quality review

    • QR counselor continues probing while referring to Section C of the IRS Intake/Interview form

      • Verify all info from Intake/Interview form & source documents

    • Re-run diagnostics & correct errors

    Finalizing Return (cont’d)

    • Click on “Create e-File(s)” box (at bottom of diagnostics box) OR

    • Set the return stage, if not ready to e-file

      • Click on Return Summary icon or close return & go to appropriate client return

      • Select appropriate return status from drop down box

    • Print copy of return for taxpayer

    • Do not need to keep copies of W-2s & 1099s or signed 8879s; return everything to taxpayer

    • ERO will e-file returns & notify counselor of any rejects

    Setting Return Stage

    Click on Return

    Summary icon

    Return Stages in E-File Status Section of Return Summary

    Printing Return

    Click on Print Return icon

    Finalizing Return with TaxpayerPub 4012 Tab 13

    • Review printed return with taxpayer

      • Line-by-line Federal & NJ 1040s

      • Highlight any carryovers or “issues”

    • Have taxpayer(s) sign Form 8879 IRS E-File Signature Authorization

      • If joint return, BOTH taxpayers MUST sign

      • Tell taxpayers they are responsible for return

    • Assemble packet for taxpayer in envelope

      • Return all source documents, Intake/Interview sheet, 8879, etc.

    TW IRS e-file Signature Authorization - Form 8879


    TaxWise Process Flow Chart

    Default setting is “Forms-Based”

    Review return with client

    Client signs 8879. Return all documents

    Benefits of E-Filing Returns

    • File federal & state returns simultaneously

    • Faster/more accurate processing – Calculations done by TaxWise

    • Faster processing for refunds

      • Direct deposit within 7-14 days

    • Proof of filing – IRS/State acknowledge

    • File early, delay payment until April 15

    What Can’t Be E-FiledPaper File Return

    • Too much withholding (more than 50% of Taxpayer income, per W-2 or 1099-R)

    • No valid SSN or ITIN

    • Spouse not available to sign Form 8879

    • Amended (1040X) and Prior Year Returns

      • Can be prepared using TaxWise and printed

      • Must be mailed to IRS – Cannot be e-filed

  • Login