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Volunteer Spotlight: In Rancho Cucamonga, a Team of Teenage Tax Slayers Helps Adults

07 Mar 24
Kim Manuel
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Link to New York Times article

At a high school in California, students help run a tax-return clinic. They get academic credit, breakfast burritos and life lessons.

On Saturdays at Rancho Cucamonga High School, the indoor-outdoor campus can resemble a community carnival.

Last week at 7:30 a.m., teams of spandex-clad, color-guard flag bearers warmed up for a competition on whatever patch of concrete was available. Setup was beginning for a Black cultural celebration.

And on a lower level, in a classroom sandwiched by a “Cash for College” meeting and a study session for students in A.P. Chinese, a group of teenagers filled out tax returns for anyone who had heard about their free clinic.

Three generations of one family came, having heard about the clinic from the fourth — the great-grandmother. They brought along a brand-new dependent: a 2-month-old baby. A boy in a Spider-Man suit watched Spider-Man videos while his grandparents received help. Two retirees — one a Harley enthusiast and another who arrived on a spiffy electric bicycle — checked in as well.

That anyone would trust high school students to prepare their returns is the doing of a little-known service called VITA, which stands for Volunteer Income Tax Assistance. It is an Internal Revenue Service program that trains people to help their neighbors with the annual task.

To participate, the students must plow through a kind of Income Tax 101 curriculum and then take tests drawn from Form 6744. (The I.R.S. has a form or publication for basically everything.)

At Rancho, as everyone refers to the school, the students work under the tutelage of Chris Van Duin, who has taught accounting there for 22 years. Each January, he starts showing up just after sunrise on Saturdays with breakfast burritos for his students.

On the day I was there, soft jazz was playing. At his desk, one screen displayed information on the clinic’s clients while another had the Manchester United-Fulham soccer match on mute. His cellphone rang every so often, because clinic clients have his personal number.

The students trickled in. Calob Chavez, 17, wants to be an investment banker. Destiny Linda, 17, hopes to get a doctorate in business someday. Many of them now look over their parents’ shoulders to make sure they file their tax returns on time and get every deduction.

There is no predicting who might turn up on any given Saturday. One victim of identity theft was trying to use a special PIN to file her taxes. Someone else was doing his taxes for the first time in seven years. He sat with seven neat stacks of paper in front of him. It looked like he would owe over $10,000.

“I wouldn’t wish that on my worst enemy,” said Nicholas Rosales, a 16-year-old junior who took his first accounting class a year ago and is now Mr. Van Duin’s teaching assistant.

Every tax return tells a story. Where do you live? What do you do? What kind of income does that yield? Whom are you raising, housing and helping — and how?

Reading even one return — let alone the 250 or so that the Rancho students put their hands on last year — is a kind of object lesson in personal finance. Ask the right questions of the person behind the numbers and you can learn a lot about how the world works and the paths to making your way in it.

When I first met with the students, they were perplexed by someone who was scheduled to come in the next day. She had five jobs in 2023. “How do people balance that many?” Nicholas asked.

On Saturday morning, Abigail Jimenez, 27, presented herself and explained. She had started the year as a salon-supply store manager. After a brief stint as a part-time receptionist, a competitor of the salon-supply store offered her a job and she jumped.

Then, she decided on a career change. Around the same time, she and her boyfriend moved, and she took a new job at a leasing company. Finally, as her professional interests shifted to numbers, she found work at an accounting firm, albeit one where they don’t file returns until later in the year, including those of their employees.

She wanted her refund, if any, as soon as possible, so she came to the clinic.

By 10 a.m., there were so many clients that there were no students left to help them. Groups huddled around computer screens, putting basic information into TaxSlayer, a software program. The guy with the seven returns was still there, walking in and out of the room every so often to talk on the phone.

Would he like to comment? “Hoooooo,” he said, tipping his head back before declining to say anything else.

The work winds down by noon each Saturday. In class, the students finish returns that they did not complete during the Saturday rush.

This year, Nicholas did his own taxes for the first time. “I work at Taco Bell,” he said. “I got an $8 refund. Which is $8 I can buy more candy with.”

But those refunds can get bigger over time if you know what to look for. “There are people who don’t have that knowledge,” Destiny said. “They lose out on a lot of opportunities.”

IRS Reject F8962-070

01 Mar 24
Kim Manuel
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3/1/2024 – Recycling this blog post. See below on how to handle this Federal reject related to 1095-A’s.


3/4/2022 – If you have a rejected Federal return at your site specific to missing Form 8962 or a binary statement not attached, you can now resubmit these returns electronically if they have not already been paper filed. For impacted returns, go back to the Health Insurance menu and on the first page, you will see two “No” options. Choose the option that is applicable to the taxpayers return. You can now resubmit the return and the appropriate statement will be included.

 

 

 

 

 

 

 

 

 

 


This is a new reject for TY 2021

The e-file database indicates that Form 8962 or a binary attachment with description containing “ACA Explanation” must be present in the return

  • It was added so returns may be corrected and avoid being kicked into error resolution, which could cause significant delays in the funding of the tax refund
  • This is the IRS top reject across all software vendors
  • If the return is rejected, the IRS has information that the taxpayer, spouse, or dependent has Marketplace insurance, and/or received an advance payment for marketplace insurance
  • These returns should have the 8962 or PDF attachment with their “ACA Calculations”
  • These taxpayers will receive a 1095-A, which providers are required to file by January 31, 2022.

Note:  The IRS has not issued guidance on the PDF attachment, or how to incorporate it into the software.  You would only need this attachment to show that the taxpayer, spouse, or dependent did not receive premium tax credit payments for TY2021.

If the taxpayer, spouse, or dependent received premium tax credit payments for medical insurance (even for 1 month), complete form 8962 using Form 1095-A

For additional information and to get help locating the documents needed to file a complete, correct tax return visit Healthcare.gov

 

 

February 22, 2024 All Partner Call – Canceled

22 Feb 24
Kim Manuel
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Alert: SPEC Partners

Today’s TaxSlayer All Partner Call has been canceled.

The next call will be March 7, 2024,  2:00 PM Eastern Time, Dail-in Number: 1-888-978-8818,  Access Code: 6941295

Sorry for any inconvenience.

Trending News that potentially impacts your sites: Cellular Outage

22 Feb 24
Kim Manuel
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Report: AT&T, T-Mobile, Verizon experiencing nationwide cellular outage

A cellular outage Thursday morning in the United States is being reported by AT&T, T-Mobile, Verizon and other network users.

More than 800 service outages of U.S. wireless carriers Verizon and T-Mobile were also reported on the platform.

Random Spanish pages and prints

19 Feb 24
Kim Manuel
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Scenario:  I open a return or print a return and I am presented with random Spanish forms, even though I did not change the return to Spanish.

Workaround:  Select the taxpayer drop down, Select Change Language, Select the left blue box ‘Ingles’

Sometimes closing out of the return and opening back up will also render all forms in English (may have to do it a couple of times)

Solution:  The resolution is currently going through our testing process.  Once the changes have passed all testing scenarios, we will deliver it to production (No ETA yet)

 

Release Notes: February 19th – F8379, F7206, 1099-R & MD

16 Feb 24
Kim Manuel
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A product deployment for TaxSlayer Pro Online will occur Monday, February 19th beginning at 5:00am ET to release the below update(s). Note that deployments may take up to 3 hours to complete. During this time, access to the program may be limited.

Form 8379

Allow negative amount for “Other income or loss” (Issue 1918)

MD

Form 502 correction: MD Form 502 Local Tax Rate (line 28) for Anne Arundel (Issue 1922)

Form 7206

Form 7206 is printing blank but not added on any menu (corrected)

1099-R

1099-R Box 2a not auto populating from Box 1 when carryforward is used (Issue 1833)

 

Sales Tax Worksheet: Detour in flow

15 Feb 24
Kim Manuel
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There is an unintended detour in the flow of accessing the Sales Tax Worksheet

  • Navigate to Deductions >> Itemized Deductions
  • Select Taxes you Paid
  • Select the “I want to input my state and local sales tax”
  • Select “Add sales tax you paid”
  • You will be presented with the “State and Local Sales Tax Override” page
    • If you really want to override, enter the amount here
    • If you are looking for the “Sales Tax Worksheet”, click Continue (Detour 1)
  • Select the “I want to input my state and local sales tax” (Detour 2)
  • Select the “Add sales tax you paid” (Detour 3)
  • You will now be presented with the Sales Tax Deduction worksheet

Currently only the Override amount will display on the Sales Tax Paid summary grid that displays.  If you are using the zip code to calculate the sales tax, it carries to the return and PDF correctly, but does not display on the summary grid.

We have entered issues to resolve both items.

 

 

2022 E-files: Stuck in Transmitted [update 2/13/2024 10:35 am EST RESOLVED]

09 Feb 24
Kim Manuel
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Update:  The majority of the returns that were stuck in the Transmitted status have been sent to the IRS and acknowledged.  If you continue to see your 2022 returns in the status of transmitted after submitting them, please email VITA/TCE support with the EFIN and last 4 digits of the returns.


 

We currently have a high priority ticket in to resolve the issue where the 2022 returns are getting stuck in the Transmitted state with the reason of mismatch.  Approximately 50% of the e-files are making it through with no issues.

Recommendation:  Hold your 2022 e-files until we can resolve this.  It doesn’t appear that resetting the status back to “in progress” and sending a 2nd or 3rd time is increasing the odds of getting them IRS accepted.