page Refund and Amount of Tax OwedTime Required: 30 minutes - PDF document

��page Refund and Amount of Tax OwedTime Required: 30 minutes Introduction Objectives Topics This lesson covers the Refund and Amount You Owe Refund or tax dueU.S. savings bondsAmount owedEstimated tax penaltyAdjusting Tax WithholdingThird party designeesAvoiding common errors Key Terms Form 2210Underpayment of Estimated Tax by Individual Refund and Amount of Tax Owed ��page Teacher TipsGuidelinesfor Lesson Guideline Instructor Notes Presentation Aids Lesson background infoReviewthe online demo of TaxSlayeron refunds or balance dueTaxSlayerDemoFrom the Practice Lab, select:TaxSlayerIRS training Click the appropriate demoProvide details and engage the studentsDiscussall tips and cautions in detailAskstudents to read and/or roleplay examples and sample interviewsReviewanswers to each exercise; ask students how they arrived at their answersInternet:Lin& Learn Taxes (L<Refund and Amount of Tax Owed Topicspecific Tips Topic Name Instructor Notes Presentation Aids IntroductionReviewlesson objectivesEmphasize at taxpayers have several choices forhow to receive a refund, or how to pay a balance to the IRSReviewlist of referencesState theresentation timeVisualForm 1040 Refund and Amount You Owesection Form 13614 Page Pub 4012Tab K, Finishingthe Return Refund or tax due Displaythe Refund section of Form 1040 to show where an overpayment is entered, and the options for the refund.Ask students to list the options taxpayers have for refunds.Explain how to handle each refund option.Displaythe Amount You Owe section of Form 1040 to show where an amount owed is enteredDemonstrateentering RTN and DAN for direct deposit on the BasicInformation sectionand Form 1040. Emphasizethe importance of accurate routing and account numbers for direct deposit refunds.Visuals:Form 1040 Refund and Amount You Owesection Pub 4012Tab K, Finishingthe Returnand Tab P, Partner ResourcesSplit Refund Option Pointers for Direct Deposit of Refunds Balance Due Returns Where’s My Refund? Form 8888 Internet: Refund Inquiries Refund and Amount of Tax Owed ��page Inform students about Form 8888. Explainwhat happens if an error or offset increases or decreases the amount of the refund. Point the new "Identity Protection PIN" field near the signature section of Form 1040.Point out the IRS2Go Video on YouTube U.S. savings bondReviewwhat U.S. savings bonds are.Informstudents that taxpayers may purchase savings bonds with their tax refunds for themselves or coowners, such as children or grandchildren.ShowForm 8888 and explain how a taxpayer elects to buy savings bonds.Refer to Form 8888 Instructions for more details.Explainthe “Where’s My Refund” feature on irs.govaxpayers cancall 18008291954 to check the status of their refund.Demonstratelinking to Form 888from Form 1040VisualForm 8888 Internet: Tax Tip: Use Your Federal Tax Refund to Buy Savings Bonds Online tool: Where is my Refund? Youube Video When will I get My Refund? Refund and Amount of Tax Owed ��page Amount owedmindstudents that taxpayers with an amount owed must file their return by the due date even if they cannot pay the full amount with the returnAskstudents to list the fivetypes of payments that are acceptable (cash is not one of the options).Recommendvolunteersreview the Balance Due Returns section in Pub 4012Tab K, Finishingthe Return,whenever they have a return with an amount owed.Explainthe options taxpayers have if they cannot pay by the filingdue date: Pay in full within 120 days with no feeusing the Online Payment Agreement Application (OPA); interest and penalties are charged on payments after the April due dateMonthly installment payments using Form 9465, with a feein addition to interest and penaltiesEmphasize to students that they can provide a valuable service to the taxpayer by beingthoroughly familiar with the payment optionsPoint that interest and penalty are charged on tax that is due but not paid by the April due date. This is true even if the taxpayer is given a shortterm extension to pay or an installment agreement.Advise students to encourage taxpayerswho cannot fully pay their tax amount oweto pay as much as possible with their return to reduce these charges.Point outthat TaxSlayerautomatically calculates the amount that is owed when the payment total is less than the amount of the tax.Reviewthe video on irs.gov, Owe Taxes? Understanding IRS Collection Efforts.VisualForm 1040 Amount You Owe section Pub 4012Tab H, Other TaxesPaymentsand ACA,and Tab K, Finishingthe Return:Form 1040 Balance Due Returns Form 1040 Form 9465 Internet: Owe Taxes? Understand IRS Collection Efforts YouTube video: IRS Taxes Three Easy Ways to Pay YouTube video: Owe Taxes But Can’t Pay? YouTube video: Owe Taxes? Tax TopicThe Collection Process Tax TopicTax Payment Options Refund and Amount of Tax Owed ��page Estimated tax penaltyExplainthathile completion of Form 2210 is out of scope forVITA/TCE, it is important for studentsto know about the estimated tax penalty provisions.Discussthe general type of situations that may cause a taxpayer to owe a tax penalty.Remind students about the estimated tax penalty. Instructstudents on how TaxSlayerhandles the estimated tax penalty, and explain that, if a penalty is due, the IRS will figure the penalty and send the taxpayer a notice. Askstudents to read the case study for taxpayer who is likely to have a tax penalty.Visuals:Form 1040 Form 2210 Internet:Tax Topic Penalty for Underpayment ofEstimated Tax Adjusting tax withholdingReviewways to help taxpayers make sure they are paying the correct amount of taxes withheld during the tax year.DiscussForms W4 and when taxpayers may want to change exemptions to increase or decrease their withholding amount.Askstudents to read examples that pertain to Forms WExplainthe circumstances under which a taxpayer may need to make estimated tax payments.Visuals:Form Form W Form W Form W Form 1040 Pub 17 Tax Withholding and Estimated Tax Internet:Tax Topic: IRS Withholding Calculator Third party designeesPoint outthat taxpayers can allow the IRS to discuss their return with another person by using the Third Party Designee section of the return.Emphasizethat volunteer tax preparers must never be designated as the third party designee.Visuals:Form 1040 , Third Party Designee section Pub 17 Filing Information, Third Party Designee Internet:Tax Topic: Disclosure Authorizations Refund and Amount of Tax Owed ��page Avoiding common erroRemind studentsto doubleand triplecheck the bank routing and account numbers for direct deposit and electronic funds withdrawalAsktaxpayers to compare the numbers entered on the return to their checks or other account informationEmphasizethat errors in bank information may result in significant delays or misdirected funds.Visuals:Form 1040 Form 8888 kills WorkoutReviewthe Skills Workout with the classVisuals:L< Refund and Amount of Tax Owedlick Certification Warm Up icon to review the exercises Refund and Amount of Tax Owed ��page References Form 1040Form 1040 , Lines Form 13614Form 13614 , Intake/Interview & Quality Review Sheet, page Pub 4012Pub 4012, Volunteer Resource GuideTab K, Finishingthe Returnand Tab P, Partner ResourcesSplit Refund Option Pointers for Direct Deposit of Refunds Balance Due Returns Where's My Refund? Pub 17Pub 17 Your Rights as a Taxpayer, Collections and Refunds Form 8888Form 8888, Allocation of Refund Form 1040Form 1040ES, Estimated Tax for Individuals Form 1040Form 1040V, Payment Voucher Form WForm W4, Employee’s Withholding Allowance Certificate Form WForm W4P, Withholding Certificate for Pension or Annuity Payments Form WForm W4V, Voluntary Withholding Request Optional Pub 505Pub 505 , Tax Withholding and Estimated Tax Pub 594Pub 594, The IRS Collection Process Form 2210 Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts Form 2210 InstructionsForm 2210 Instructions Form 9465Form 9465, Installment Agreement Request Refund and Amount of Tax Owed ��page ecommended Classroom ActivitiesSkills Workout: Link & LearnTaxesRefund and Amount of Tax OwedClick Skills Workout for a new way to access L&LRefund and Amount of Tax OwedCertification Warm UpExerciseClick Certification Warm Up for a new way to access the xercises in L< Refundand Amount of Tax OwedMediaVideo & Audio for LessonYouTube video: IRS2GoMobile Apphttps://www.youtube.com/watch?v=GY1IQ6bmLIo YouTube video: IRS Taxes Three Easy Ways to Pay https://www.youtube.com/watch?v=ALz9iinf91o YouTube video: Owe Taxes But Can’t Pay?https://www.youtube.com/watch?v=URJZEKDHxp0 YouTube video: How to use Where’s My Refund? Tool https://www.youtube.com/watch?v=mdGhiGZxr3E Youube Video: When will I get my refund? https://www.youtube.com/watch?v=Yt_9rJBZdnM Youube Video: Owe Taxeshttps://www.irsvideos.gov/owetaxes/ TaxSlayerTips and Resources for LessonTaxSlayer Training VideoEnteringPayments and Estimates Practice Lab TutorialFrom the Practice Lab : Enter the universal password (if you do not have the password, you can request it from your site coordinator or SPEC relationship manager).Sign in to Practice Lab or create an account.Select the appropriate tutorial. Refund and Amount of Tax Owed ��page Job AidsITAandFAQsfor LessonOnline ToolWhere’s My Refund?http://www.irs.gov/Refunds/Where'sRefundIt'sQuick,Easy,Secure. FAQsRefund Inquirieshttps://www.irs.gov/faqs/irsprocedures/refundinquiries Tax TopicsRefund Informationhttp://www.irs.gov/taxtopics/tc152.html The Collection Processhttp://www.irs.gov/taxtopics/tc201.html Tax Payment Optionshttp://www.irs.gov/taxtopics/tc202.html Penalty for Underpayment of Estimated Taxhttp://www.irs.gov/taxtopics/tc306.html Disclosure Authorizationshttp://www.irs.gov/taxtopics/tc312.html Tax TipUse Your Federal Tax Refund to Buy Savings Bonds https://www.irs.gov/refunds/usingyourincometaxrefundsave buyingsavingsbonds Practice LabPractice Labhttps://vita.taxslayerpro.com/IRSTraining