VITA Basic - Paul Ramirez IRS VITA Filing Basics: Who Must...

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Unformatted text preview: Paul Ramirez IRS VITA Filing Basics: Who Must File? Things you need to know for whether someone should file a tax retu rn: 1) Age 2) Gross Income 3) Filing Status 4) The person can be claimed as an dependent 5) The person is blind 6) The person received Advanced Earned I ncome Credit (AEIC) PMTs 7) Special taxes might be owed on different types of income 8) Some of the income is excludable or exempt I t is acquired in the approved intake and interview sheet, Form(s) W-2 and Form(s) 1099 Gross Income An estimate of GI is enough. To approximate GI you must: 1) Obtain the total of wages, tips, and other employment compensation reported in box 1 of the taxpayer's Form(s) W-2. 2) Review the income questions on page 2 of the approved intake and interview sheet with the taxpayer to see if there was any additional income (from investments, retirement plans, social security, unemployment, or other income not reported on Form W-2 or Form 1099) and determine each amount. 3) Total the above amounts to determine the taxpayer’s approximate gross income. *Do not include social security benefits when determining the filing requirement unless the taxpayer is married, filing a separate return, and lived with their spouse at any time during the tax year. Filing Status Forms for Filing Status • Use Form 13614-C (Intake/Interview & Quality Review Sheet) as a starting point for comprehensive interaction with the TP in combination with all the source docs, he provides you. • To ensure accurate filing status, verify the TP’s marital status. Using Publication 4012, Volunteer Resource Guide, and/or Publication 17, confirm that the appropriate decision tree, interview tips, and informational charts were used to determine filing status. 5 Filing Statuses from Most Beneficial to Least Beneficial 1) Married Filing Jointly (MFJ) 2) Qualifying Widow(er) with dependent child 3) Head of Household (HH) 4) Single 5) Married Filing Separately (MFS) *Taxpayers may qualify for more than one filing status. Choose the filing status that results in the lowest tax (most beneficial) for the taxpayer. Use the Volunteer Resource Guide (Tab B) to help determine the correct filing status(es) Ma rital Status affects Filing Status The first step is to confirm their marital status on the last day of the tax year . Generally, taxpayers are considered to be unmar ried for the entire year if, on the last day of the tax year, they were: • Unmarried • Legally separated under a separate maintenance decree, or • Divorced under a final decree on or before December 31 st of the tax year Taxpayers are considered to be mar ried for the entire year if: • They were married on the last day of the tax year, or • The spouse died during the year and the surviving spouse has not remarried Single Taxpayers A taxpayer is considered single if, on the last day of the tax year, the taxpayer was: • Never married • Legally separated or divorced, or • Widowed before the first day of the tax year and not remarried during the year...
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This note was uploaded on 10/13/2010 for the course ACCTG 471 at Penn State.

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VITA Basic - Paul Ramirez IRS VITA Filing Basics: Who Must...

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