TRAINING TOPICS - 2010. Bob Eslinger – PRTA Janelle Riedl - TRS. What’s New Unchanged provisions MeF TW SW Enhancements Publications. Training Guide Cod & HSA Extranet Training Certification Taking The Test Volunteer Portal. Training Outline. IRS In-scope Changes for VITA-TCE.
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Bob Eslinger – PRTA
Janelle Riedl - TRS
Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) repealed estate tax after December 31, 2009 and before January 1, 2011
Basis of assets inherited from decedent dying in 2010 is the lesser of the decedent’s adjusted basis or fair market value
Basis is treated as a gift
Automatic “more than one year” or long term holding period does not apply
Date of acquisition will be same as decedents’
First time homebuyer credit extended closing on purchase of home to September 30, 2010, if purchased before April 30, 2010; eligible for up to $8,000 credit
First year for payback of 2008 FTHBC.
New motor vehicle purchased in 2009 (after Feb 16, 2009 and before Jan 1, 2010) but did not pay sales taxes until 2010 – are eligible to deduct the amount paid in 2010
Investment income for children remains at $1900;
Standard deduction for Head of Household increases to $8400 (from $8350) – all other standard deductions remain the same:
Single - $5,700
Joint - $11,400
HOH - $8,400
Exemption amount remains the same in 2010 - $3,650;
Standard Mileage Rates – for 2010
Business – 50 cents per mile
Medical and moving – 16.5 cents per mile
Charity – 14 cents per mile
Amount of credit increases in 2010:
One qualifying child – maximum $3050
Two qualifying children – maximum $5036
Three qualifying children – maximum $5666
No qualifying children – maximum $457
Earned income amount increases in 2010:
$35,535 (joint $40,545) One qualifying child
$40,363 (joint $45,373) Two qualifying children
$43,352 (joint $48,362) Three qualifying children
$13,460 (joint $18,470) No qualifying children
Refund options for purchase of Savings Bonds
For 2010, in addition to direct deposits can use refund to purchase savings bonds
Can purchase up to three I bonds registrations,
Purchase for themselves, beneficiaries, or co-owners, or other persons, other than themselves;
Use Form 8888
Waiver of Minimum Required Distributions from IRAs’ and defined benefit plans;
Exclusion of $2400 of unemployment compensation from income;
Tax free distributions to charity from IRA;
Deduction of educator’s expenses;
Tuition and Fees Deduction from AGI;
Extra $3000 IRA contribution for bankrupt companies;
Increase of Standard Deduction for real estate taxes and disaster losses;
Increase in Itemized Deduction or Standard Deduction for sales taxes of purchase of new motor vehicle;
Increase in Itemized Deduction for state and local sales taxes;
Certain tax benefits for Midwestern disaster areas
MeF is a new system for the processing of efiles by the IRS.
TaxWise 2010 will begin phasing in Modernized eFile (MeF)in the 2011 filing season.
MeF is real time, individual return processing vs. batching the returns for processing.
TaxWise 2010 will use both Modernized eFile (MeF) andlegacy processing in the 2011 filing season.
TW 2010 will automatically pick the processing system based on the forms used in each return.
Forms that Modernized eFile (MeF) will process in the 2011
Returns with a Form not on this list will be processed by the legacy system
Modernized eFile (MeF) uses a Submission ID that is created when the efile is created, rather than a DCN.
A new Submission ID when the new efile is created.
Either a Submission IDs or DCN will print on the Form 8879 when return is prepared.
There will be a new eFile Submission Report that will list both Submission IDs and DCNs
From the IRS - 5 to 10 minutes
From TaxWise when processing is completed usually within an hour
Specific explanation of errors (rejected returns)
MeF allows attachments in pdf
Prior year returns
MeF will eventually accept returns from two prior year, but not this season.
Will accept amended returns next season Tax Year 2011.
Ability to eFile State returns when a Fed Return is not required
Three additional Preparer Use Fields are added to the Main Information Sheet in both Desktop and TWO. #14 will be used for our national reporting of QR.
Override can be disabled at preparer level
Interactive Interview. The preparer can toggle back and forth between the Interview and the Tax Forms.
CCH claims the Modem Communication problems are resolved.
Contact Sensitive Help will be available
Time-out Reminder 5 min. before shut down
New User Roles added - Reviewer, E-file Manager
New Hot Keys for…
Move Curser to next Entry
Insert & Remove Rows - Statements & Worksheets
User defined Printing of State Forms
Custom Templates for tax form Defaults
(QSS) Review Comparisons
Form 13614-C Intake/Interview and Review Sheet Updated
Tax Year 2010 Training Products updated by SPEC/Partner Teams:
An Introduction to
Health Savings Accounts and Cancellation of Debt
This year new online courses on HSAs and/or CODs are available.
The courses are available online at Link & Learn and are optional. It is not required, and is not referenced in the Basic, Intermediate or Advanced tests.
Volunteers who are interested in being certified or qualified to do a HSA and/or a COD returns will be allowed to go on-line to take the course.
DCs or LCs will determine if there is a need for counselors at their site to be certified in HSA or COD returns.
A minimum of two counselors per site will be required.
search Link & Learn.
A web-based and centralized access point that provides:
Interfaces to VMIS
If yes, must include contact and phone number
– Compressed for display purposes (actual form includes 20 rows.
Local Coordinator Activity Reporting Form –
Note that the reporting of QR for efile sites is not an available field
of AARP Tax-Aide Produced Materials