Volunteer Income Tax Assistance (VITA) program

Scenario : David Maclee

Scenario Link :https://www.irs.gov/pub/irs-pdf/f6744.pdf

Page :102

VITA Program Eligibility

1. Describe how the client ( David Maclee) qualified for VITA in this Scenario

Tax Laws, Regulations, Codifications, and Filing Status

2. Identify the tax laws, regulations, codifications, and filing status as applicable to the scenario.

Include the following:

A. How tax laws, regulations, and codification apply to VITA clients

B. How various filing statuses apply to VITA clients

i) Provide reasoning used in selecting the filing status in the scenario.

C. Two examples of how tax laws, regulations, and the codification are used in the scenario

Types of 1040 Forms and Supporting Schedules

3. Describe 1040 forms and supporting schedules used in the scenario

Taxable and Non-Taxable Income

4. Describe how taxable and non-taxable income was presented to the client in the Scenario.

include the following:

A. Two examples of taxable income in the scenario

B. Two of nontaxable income in the scenario

Deductions versus Credits

5. Describe when deductions and credits were used in the scenario.

A. Provide itemized versus standard deduction examples.

Input Information Directly

6. Describe the importance of inputting information directly from intake sheets and tax documents into VITA tax software for the scenario

Accurate Tax Return

7. Describe the tools and procedures used to make an accurate tax return according to VITA for the scenario

Intake and Review Process

8. Describe the steps of the intake and review process used in the Scenario

Include the following:

A. Differentiate the VITA tax return process from the non-VITA tax return process.

B. Outline the quality review process in detail.

VITA Software

9. Describe how information was entered into VITA tax software In the scenario.

Consider the following:

Value

Accuracy

Speed

Real-time updates to laws, regulations, and the codification

Reporting

Research

Correct Tax Liability

10. Explain how a correct tax liability was obtained using the VITA tax software in the scenario.

Consider the following:

Total Tax line-item amount on Form 1040

Tax tables

Correct input of data

Filing status

Intake sheet validation

Accuracy

11. Provide references and citations

Advanced Scenario 9: David MacLee Directions Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice. Interview Notes . David is age 40 and was widowed in July, 2022. He has a daughter, Linda, age 8, who lived with him the entire year. . David provided the entire cost of maintaining the household and over half of the support for Linda. In order to work, he pays childcare expenses to Uptown Daycare . David purchased health insurance for himself and his daughter through the Marketplace. He received a Form 1095-A. . David and Linda are U.S. citizens and lived in the United States all year in 2023. SOCIAL SECURITY SOCIAL SECURITY AAL SECO AL SECO. 328-00-XXXX 125-00-XXXX David MacLee Linda MacLee David Mac Lee Linda MacLee