VITA/TCE Volunteer Tax Alert
VTA 2021-02 Certification Testing and Using Practice Lab – UPDATE
Purpose
Volunteers should use caution when completing their certification tests using the Practice Lab.
Identified Issues
The Practice Lab has incorporated additional 2020 tax law changes, including the rebate recovery calculation to account for the first and second economic impact payments. These updates will have an impact on the Link and Learn online certifications answers.
Messages to Volunteers
1. Final revisions of the Form 6744, VITA/TCE Test-Retest, have already printed/posted. Because of this, specific questions regarding the economic impact payment/recovery rebate credit will not be updated. In the initial rollout of the online certifications and published Form 6744, we included the following disclaimer:
“Note: Congress may have enacted additional legislation that will affect taxpayers after this publication went to print. Please answer questions based on the information provided in Publication 4491, VITA/TCE Training Guide, and Publication 4012, VITA/TCE Resource Guide.”
Regardless of the calculation using the Practice Lab or other software, volunteers should follow this guidance. These questions can be answered without using software and using the publications stated above with the 10-2020 Revision date.
Also, there are some questions where the additional economic impact payment/recovery rebate credit will impact calculations for bottom line amounts. These questions will not be updated either. However, you can enter these answers to score correctly:
■ Basic Scenario 7, Test Question 24 – Emma has a balance due of $________ on her 2020 tax return. Answer: 289
■ Advanced Scenario 7, Test Question 27 – What are the total payments reported on the Kennedys’ Form 1040? $________. Answer: 4385
■ Advanced Scenario 7, Retest Question 27 – What are the total payments reported on the Kennedys’ Form 1040? $________. Answer: d. $4,385
2. The following disclaimer was added for Advanced Scenario 6, Question 17, with the initial release of the Practice Lab:
“Note: In the initial release of the Practice Lab, last year’s Federal Poverty Line amount is used to calculate Form 8962, Premium Tax Credit. Enter 1646 as the correct answer.”
3. New and more specific information has been released regarding the deferral for certain Schedules H and SE filers. Taxpayers can’t defer amounts they’ve already paid, which includes:
■ Federal income taxes withheld
■ Estimated taxes
■ Amounts paid with request for extension to file
■ Excess social security and tier 1 RRTA taxes withheld
This information changes an answer:
■ Advanced Scenario 8, Test Question 35. – Which of the following statements is true? Answer: d. Richard does not have the option to defer half of his share or the employer share of Social Security tax.
Resources
Practice Lab
VITA/TCE Central
For additional questions, please talk to your site coordinator, partner or IRS SPEC relationship manager.
Thank you for volunteering and for your dedication to top QUALITY service!