VTA 2023-02 Certification Testing Using Practice Lab
Purpose: Volunteers should use caution when completing their certification tests using the Practice Lab.
Read the Alert: VTA-2023-02_
Dorothy Yetter
About Dorothy Yetter
Posts by Dorothy Yetter:
TaxSlayer Practice Lab up for TY2022
Practice Lab 2022 is now available for use. Please keep in mind that the Practice Lab will be updated twice a week as we receive finalized forms and instructions from the IRS.
You now have access to PL 2022 and PL 2021.
When you log in to your Production Sites, you will see the following TaxSlayer 2022, 2021, 2020, 2019, 2018 and 2017. You do not have the ability to create new returns in 2022, but you can still prepare returns in all of the available prior years. You will be able to electronically file 2021, 2020 and 2019 until the IRS shuts down their MeF system in preparation for the upcoming season in late November.
New for 2022 Configuration: You can now designate a tax year for your custom questions. All existing questions default to all years. If you do not need them for 2022, you can simply edit them and change them to Tax Year 2021. If you only want new questions to be displayed in 2022, you can designated them as Tax Year 2022 when you are setting them up.
States will not be available in the Practice Lab until closer to the filing season in either late December or early January. You can use PL 2021 to have your volunteers train or practice with state returns.
Tips for parents who share custody or alternate tax benefits
From the IRS Tax Tips
Some parents who have a legal agreement with their child’s other parent about who claims the child on their taxes may have some questions this tax season about the child tax credit and the 2021 recovery rebate credit. Here’s what people in this situation need to know before filing their 2021 federal tax return.
Economic Impact Payments and the Recovery Rebate Credit
The third Economic Impact Payment was an advance payment of the 2021 recovery rebate credit. The IRS used taxpayers’ 2020 or 2019 tax information to determine eligibility and amounts. Here’s what this means for people who share a qualifying dependent:
• If an eligible taxpayer did not receive a third-round Economic Impact Payment for a qualifying dependent they will claim on their 2021 tax return, they can claim the 2021 recovery rebate credit, regardless of any Economic Impact Payment the other parent received.
• If a taxpayer received a third-round Economic Impact Payment for a dependent they won’t claim on their 2021 tax return, they are not required to pay back all or part of the Economic Impact Payment if, based on the information reported on their 2021 tax returns, they should have received less.
Child Tax Credit
The IRS determined who received 2021 advance child tax credit payments based on the information on taxpayers’ 2020 tax returns, or their 2019 return if the IRS hadn’t processed the 2020 return. In other words, the parent who claimed the Child Tax Credit for a qualifying child on their 2020 return would have received the advance child tax credit payments in 2021. Here’s what that means for these parents:
• Families who knew they would not claim a child on their 2021 return had the option to unenroll from receiving monthly payments by using the Child Tax Credit Update Portal at IRS.gov. People who did not unenroll and received monthly payments during 2021 for a child they won’t claim on their 2021 tax return could have to repay those payments when they file. They may be excused from repaying some or all of the excess amount if they qualify for repayment protection.
• An eligible parent who did not receive advance payments for a qualifying child will be able to claim the full amount of the child tax credit for that child on a 2021 tax return even if the other parent received advance child tax credit payments.
Get the correct information to file an accurate return
Taxpayers who received these advance credits in 2021 need to compare the total amount they received with the amount they’re eligible to claim. Individuals can view the total amount of their payments through their individual Online Account. If spouses received joint payments, each of them will need to sign into their own account to retrieve their separate amounts.
More information:
Instructions for Schedule 8812 ,Form 1040, Credits for Qualifying Children and Other Dependents
Instructions for Form 1040, U.S. Individual Income Tax Return
Calculating the 2021 Recovery Rebate Credit
TaxSlayer Practice Lab still Updating for 2021
Re: TaxSlayer Initial Release
Practice Lab 2021 is up but … TaxSlayer advises that it continues to implement 2021 calculations and forms. Please check the TaxSlayer Blog for known issues and updates . The NTTC recommends that you wait about a week (or approximately November 17th) to allow TaxSlayer to more fully implement the updates before reporting any obvious errors. If you wish to communicate an issue or suggestion, send it to TaxSlayer (support@vita.taxslayerpro.com) or it’s suggestion box (search “suggestion” while in the blog), respectively.
PRACTICE LAB 2021 – TENTATIVE SCHEDULE
TSO will be rolling out Practice Lab 2021 on Tuesday, November 9th. Once Practice Lab 2021 is pushed, you will have access to TaxSlayer 2021 and TaxSlayer 2020 with your Practice Lab logins. This will allow you to create new TY2021 returns and continue to create new TY2020 returns. You will no longer have access to your TY2019 returns when you are logging in via the Practice Lab.
Full TSO post is here.
ABLE & 529 Credits Problems – Workarounds
From Paul Dickey
PROBLEM:
Credit #896 – Oregon 529 plan credit
I entered a contribution of $800
TaxSlayer adjusted the amount to $300 and gave full credit instead of $30, which would be the correct value if Table 12, page 115 of the 2020 OR publication 17 had been accessed.
Credit #897 ABLE Account contribution
I entered a contribution of $800
TaxSlayer did NOT adjust the amount to $300 and gave full credit of $800 instead of $30, which would be the correct value if Table 12, page 115 of the 2020 OR publication 17 had been accessed.
TaxSlayer will not be addressing this tax year.
WORKAROUND:
Manually calculate the credits using the percentages found in Table 12 on page 115 of the OR Pub 17. Calculate the correct credit and enter that number in the credit field in the Refundable Credits section of the State return. The actual number will be not greater than $150 or $300 depending on whether the return is Single or MFJ. (See the example calculation beneath Table 12.)
Please share with your District Leadership and Counselors.
New Issues & Remaining Impact of Rescue Act
We have two new issues being tracked in the log:
- 5883 impacting Oregon: When a PY or NR return is opened the “rotating calculating icon” appears. Resident OR returns are not affected
- 5901: Unemployment exclusion not being properly applied when MAGI is over 150,000 including UE, but under 150,000 when excluded.
From my current understanding, in addition to the above related to the American Rescue Act:
- Issue 5822: Federal UCE included on Line 13b of Injured Spouse Form
- Repayment of the Premium Tax Credit. To date the IRS has not provided any guidance to software vendors on how to handle the change. The IRS has not announced how returns already filed will be handled.
- The IRS has not adjusted their business rules to support direct debits past 4/15/21
Please share with your District Leadership and Counselors.
Can file new Unemployment but continue to hold on APTC repayments
Oregon has allowed the Unemployment Exclusion.
Here is the statement:
Unemployment benefits exclusion. On March 11, 2021, the American Rescue Plan Act of 2021 became law. The Act allows up to $10,200 of unemployment benefits received by a taxpayer in 2020 to be excluded from income if the modified adjusted gross income (AGI) on the taxpayer’s federal return is less than $150,000. Modified AGI refers to AGI before excluding any unemployment benefits. Oregon allows the same exclusion.
• Full-year residents. Your federal exclusion flows through to your Oregon return.
• Part-year residents and nonresidents. Your Oregon exclusion is proportional to your Oregon-source benefits. See our updated instructions under “Unemployment insurance benefits” in “Income.”
With TaxSlayer now updated for unemployment, it is “safe” to file new returns.
Warning still stands to wait for further instructions regarding returns already filed.
ALSO – continue to hold any returns requiring repayment of Advanced Premium Tax Credit. Instructions from IRS and TSO software are still coming.