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New in 2012 filing year

  • All Counselors and Non-counselors – IRS Standards of Conduct test (80%) and  sign Volunteer Agreement
  • All Counselors must pass NEW IRS test at 80%, Basic, Intermediate & Advanced levels, using NEW Pub 6744 or IRS Link & Learn test system

Certification for Volunteers

Link& Learn Training used for self-study

Use online resources for tax law training and learning TaxWise

Volunteers can use self-study and on-line tools for learning under direction of the instructor

Returning Volunteers are still required to complete training and workbook problems

Continue to use:

Field 13 and 14 –initials Preparer/QR

Field 15 –SDIN (continue watch - may not be required - should be in TaxWise template)

2012 Changes

            2012 Standard Deduction:

Single/MFS = $5,950 ($150 increase)

HOH = $8,700 ($200 increase)

MFJ/QW = $11,900 ($300 increase)

Additional standard deduction for people 65/older or blind remains same

$1,150 for married individuals filing jointly or separately and qualifying widow(er)s and $1,450 for singles/HOH

Personal exemption increase of $100 to $3,800.

FICA Tax - Extension of temporary decrease in employee’s share of payroll tax

4.2% social security tax on first $110,100 wages

Self-employed tax rate of 10.4% up to the social security wage limit of $110,100 wages

Social Security & Medicare wage threshold for household employees = $1,800 ($100 increase)

Expired Provisions*  (beginning after December 31, 2011)
  • IRA Distributions for Charitable Purposes
  • Educator Expense Adjustment - not in  excess of $250
  • Tuition/Related Expenses - for qualified tuition and related expenses, ranging from $2,000 to $4,000
  • Mortgage Insur Premium Deduction
  • State/local general sales taxes Deduction
  • * As of this date, unless extended by Congress
  • AMT Exemption Amount  - alternative minimum tax (AMT) exemption amount for individuals is scheduled to drop significantly

It will decrease from 2011 levels of $74,450 for joint filers and surviving spouses and $48,450 for single individuals other than surviving spouses

To $45,000 and $33,750, respectively, in 2012

  • Non-business Energy Credit


Schedule C/C-EZ ... VITA Volunteers are limited to $5,000 in business expense ... NO EXCEPTIONS!

Tax Forms

  • Form W-2 - cost of employer-sponsored health coverage must be reported in box 12 using code DD -amount not taxable
  • Form 8863- Education Credits

Parts II and IV are moved to page 1 and renumbered as Parts I and II

Old Part I became Part III on page 2

Part III is for information regarding the student, the student’s eligibility for a credit and the educational institution(s) information

  • The Capital Gains Worksheet has been changed – we now report in separate columns along with description of the sale

Stock Symbol

Number of Shares

Code for adjustment is next to amount

Form 8849 should take care of itself in TaxWise