Volunteer Income Tax Assistance (VITA) program

Scenario : Matthew and Rebecca Monroe

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

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VITA Program Eligibility

1. Describe how the client ( Matthew and Rebecca Monroe) 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 7: Matthew and Rebecca Monroe' 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 Matthew is a 6th grade teacher at a public school. Matthew and Rebecca are married and choose to file Married Filing Jointly on their 2023 tax return. Matthew worked a total of 1,500 hours in 2023. During the school year, he spent $733 on unreimbursed classroom expenses. Rebecca retired in 2020 and began receiving her pension on November 1st of that year. She explains that this is a joint and survivor annuity. She has already recovered $1,259 of the cost of the plan. Matthew settled with his credit card company on an outstanding bill and brought the Form 1099-C to the site. They aren't sure how it will impact their tax return for tax year 2023. The Monroes determined that they were solvent as of the date of the canceled debt. Rebecca received $200 from Jury duty. Their daughter, Safari, is in her second year of college pursuing a bachelor's degree in Biochemistry at a qualified educational institution. She received a scholarship and the terms require that it be used to pay tuition. Box 2 was not filled in and Box 7 was not checked on her Form 1098-T for the previous tax year. The Monroes provided Form 1098-T and an account statement from the college that included additional expenses. The Monroes paid $865 for books and equipment required for Safari's courses. This information is also included on the college statement of account. The Monroes claimed the American Opportunity Credit last year for the first time. Safari does not have a felony drug conviction. They are all U.S. citizens with valid Social Security numbers