AARP Tax Aide Help

[RetiredAndLovingIt]

I'm curious if anyone has filled in the form to get some help from them and if so do they get back to you within a few days or does it take longer?
My taxes are done and have been for a month except this is the first time dealing with a 1099-DIV and I'm not sure it I entered it properly so I need someone to take a look at it for me.
If I'd thought about it earlier today, I could have ran down to the senior center but now they're gone till next Wednesday

 

[SecondCor521]

If you just have a question, my district would just take you as a walk in. (If you wanted us to do your entire return, we'd schedule an appointment, and we're currently about a week out on those.)

We also have about 8 different sites, all with different schedules. If the site you're familiar with is gone until next Wednesday, there may be another site that is in the same general geographic area that is open in the next day or two. Call your local AARP office number, or the senior center, or put your location in here: https://www.aarp.org/money/taxes/aarp_taxaide/locations.html.

Heck, if you're willing to describe the problem here I could try to help via DM or this thread. @cathy63 probably would too.

 

[SevenUp]

I...this is the first time dealing with a 1099-DIV and I'm not sure it I entered it properly so I need someone to take a look at it for me.

If you used tax software, did you enter the numbers in the 1099-DIV boxes into the same numbered boxes in the software?

As SecondCor521 suggested, you might just spell out what was on the 1099-DIV and what you did with it, and there are folks here who could comment.

If you want to go through Tax-Aide, are you looking for the "Have Someone Prepare..." or the "Prepare My Own..." programs (see AARP Foundation Tax-Aide Service)?

 

[cathy63]

I'm not sure how the online Q&A process works, except that they're currently recruiting volunteers to help with that (I declined, in-person tax season work is enough for me!)

At my site, we also would try to answer your questions if you came by in person with all your paperwork. If the question is "did I put this number in the right place?" we can help with that. If the question is "how do I use the Schedule D worksheet to figure my tax?" we are probably not going to tackle that by hand and would make an appointment where we could do the entire return online and e-file it for you.

At my site we only do same-day appointments, so people line up in the morning and we tell them what time to return, so we might have to tell you to come back the next time we're open if we were already full for the day when you came in.

If you have specific questions about your 1099-DIV, you can PM me and I'll try to help.

 

[jebmke]

I'm not sure how the online Q&A process works, except that they're currently recruiting volunteers to help with that (I declined, in-person tax season work is enough for me!)

At my site, we also would try to answer your questions if you came by in person with all your paperwork. If the question is "did I put this number in the right place?" we can help with that. If the question is "how do I use the Schedule D worksheet to figure my tax?" we are probably not going to tackle that by hand and would make an appointment where we could do the entire return online and e-file it for you.

At my site we only do same-day appointments, so people line up in the morning and we tell them what time to return, so we might have to tell you to come back the next time we're open if we were already full for the day when you came in.

If you have specific questions about your 1099-DIV, you can PM me and I'll try to help.

What state is doing in-person taxes? Mine certainly is not. We have a mix of drop-off and scanning models.

 

[leftymd]

Here in NE we do in-person w/ client waiting in adjacent room while numbers entered into TaxSlayer. (Appt only)

 

[jebmke]

Here in NE we do in-person w/ client waiting in adjacent room while numbers entered into TaxSlayer. (Appt only)

That is what we do; they can go wherever they want as long as they are willing to answer the phone and they return before the end of the day. Otherwise we shred their docs.

I think "in person" is prep with the TP in front of you. Not allowed in MD.

 

[leftymd]

Here the TP is in for "Interview"....out during entries & back in for review. Client can't leave building.

 

[jebmke]

Here the TP is in for "Interview"....out during entries & back in for review. Client can't leave building.

We'd probably do the same but there isn't space. We are requiring them to complete all the intake materials in advance. Mixed success with that. But we have hacked our scope to reduce demand and complexity so that helps.

 

[cathy63]

What state is doing in-person taxes? Mine certainly is not. We have a mix of drop-off and scanning models.

We are doing in-person taxes at some of our sites. Our waiting and intake area is outdoors, only tax prep is indoors. Everyone wears a mask while indoors, and we work in a large, well ventilated room at tables that are spread far apart. All volunteers are required to be vaccinated. We don't ask our clients about vax status, but our state and local area both have high vax rates.

 

[jebmke]

We are doing in-person taxes at some of our sites. Our waiting and intake area is outdoors, only tax prep is indoors. Everyone wears a mask while indoors, and we work in a large, well ventilated room at tables that are spread far apart. All volunteers are required to be vaccinated. We don't ask our clients about vax status, but our state and local area both have high vax rates.

ah; OK, so you are using Drop Off method, essentially. Same here. Same day drop off.

I think the scan system is going to win out long term if they ever get a robust document management system. Even post pandemic. All the majors have used it for a while. TaxAide isn't ready for prime time with this though.

 

[dak2018]

We are in-person with the clients waiting at a bit of a distance while their taxes are prepared. Everyone masked regardless of state or local mandates. This is in San Diego County.

This is my first year with the program - I like it!

 

[cathy63]

ah; OK, so you are using Drop Off method, essentially. Same here. Same day drop off.

I think the scan system is going to win out long term if they ever get a robust document management system. Even post pandemic. All the majors have used it for a while. TaxAide isn't ready for prime time with this though.

No, it's actually the regular in-person process with as much as possible being done outdoors.

 

[jebmke]

No, it's actually the regular in-person process with as much as possible being done outdoors.

Interesting. That wouldn't work here. It was 20 degrees the other morning. I doubt we could get any volunteers to work outside. Attrition is high enough already. Sadly, this could be the final year for our district.

 

[friar1610]

We are in-person with the clients waiting at a bit of a distance while their taxes are prepared. Everyone masked regardless of state or local mandates. This is in San Diego County.

This is my first year with the program - I like it!

We’re doing the same at my center in MA. Last year was my first year and we were entirely remote with scanned docs. I hated that because if you had a minor question for the taxpayer it was a PITA to call them on the phone, have them not answer, leave a message and hope they’d call back. This way, even though the taxpayer isn’t sitting across from you, he/she is in the building and you can find them and ask the question.

 

[RE2Boys]

Not a tax aide, but a VITA site here. We are only open all day Saturday as a drop-off site. Folks come in to a large open area in our library, fill out the paperwork and leave their documents with us. I provide assistance and check the paperwork for completeness and usually ask many questions regarding filing status , etc. We have a college student that is excellent doing the data entry of documents into the Taxslayer program. We tell the clients that they can pick up the return the following Saturday (They are welcome to check back later on Saturday if they wish if it a 2-3 document return).

On Monday two of us go through QCing the returns, make changes as necessary, occasionally making phone calls. I sit across a round table from folks with a mask. Has worked well for us at this site, is one of six sites in the city.

Our target clients are those eligible for the earned income credit but seniors are an increasing percentage of our clients ever since the AARP program shut down in our area the passed two seasons due to COVID. The AARP program is supposed to be back this year. but folks tend to return to where they got their taxes done in previous year. There was some talk of limiting our clientele to only folks with W2 income but not the case this tax season.

Edit: I just checked the AARP site locator, the nearest site is about 40 miles away.

 

[RetiredAndLovingIt]

I'm not sure how the online Q&A process works, except that they're currently recruiting volunteers to help with that (I declined, in-person tax season work is enough for me!)

At my site, we also would try to answer your questions if you came by in person with all your paperwork. If the question is "did I put this number in the right place?" we can help with that. If the question is "how do I use the Schedule D worksheet to figure my tax?" we are probably not going to tackle that by hand and would make an appointment where we could do the entire return online and e-file it for you.

At my site we only do same-day appointments, so people line up in the morning and we tell them what time to return, so we might have to tell you to come back the next time we're open if we were already full for the day when you came in.

If you have specific questions about your 1099-DIV, you can PM me and I'll try to help.

I was going to pm you my 1099-DIV docs so you could see everything but apparently I can't send attachments in PM.
So I looked at my securities and I have AGG and ISTB that I think need to be adjusted for US government interest. I looked up the percentages from the ishares website but unsure of the calculation. Do I take the total of the non qualified dividends for each security times the percentage rate and enter that number into TT for example $10 x 29.34% = $2.93.

 

[SecondCor521]

I was going to pm you my 1099-DIV docs so you could see everything but apparently I can't send attachments in PM.
So I looked at my securities and I have AGG and ISTB that I think need to be adjusted for US government interest. I looked up the percentages from the ishares website but unsure of the calculation. Do I take the total of the non qualified dividends for each security times the percentage rate and enter that number into TT for example $10 x 29.34% = $2.93.

Yes, that's generally correct.

Often, states will exclude from taxation any income earned from US government obligations. It's still taxed at the federal level, so the tax software will usually have you enter the total dividend amounts (ordinary and qualified), then have a place for you to indicate the amount exempt from state taxation.

You'll want to check your state tax laws as described in your state tax instructions to see exactly what qualifies for the exemption from state taxation - sometimes the definitions differ. But with my state it's exactly as you describe - take the total amount of dividends for that security and multiply it by the percentage of US government obligations for that security. In any case, you should be able to match up your state's definition with the information in the consolidated 1099.

If you have separate securities with different percentages, it works like you would guess: ($10 * 29.34%) + ($20 * 15.87%) + ....

Usually the consolidated 1099 will have the additional information needed at the end or in a separate document.

You can look at your state return after you're finished, and you should see a line where the total you entered is subtracted or adjusted from your state gross income. The line may even be titled "Interest from US government obligations" or something like that. In my state it's on a separate schedule, so if you claim the subtraction then you'll have an additional two pages added to your return.

As an additional tip, it's good practice to look at all of the subtractions on your state tax return to see if any of them apply to you. You might find a subtraction that applies that you weren't even aware of. My state, for example, gives credits for contribution to youth rehabilitation facilities and cash donations to state educational institutions, and these stack on top of the federal deductions for charitable contributions.

 

[RetiredAndLovingIt]

Thanks, when you say the consolidated statement will have the information I need do you mean what securities need to be adjusted? There is nothing on this Acorns statement that gave me that info, someone just mentioned it on the forum when i was asking questions.
I have read all the mouse type and I just don't see it anywhere. I even logged onto my account to see if there was another document available, there wasn'

 

[cathy63]

I was going to pm you my 1099-DIV docs so you could see everything but apparently I can't send attachments in PM.
So I looked at my securities and I have AGG and ISTB that I think need to be adjusted for US government interest. I looked up the percentages from the ishares website but unsure of the calculation. Do I take the total of the non qualified dividends for each security times the percentage rate and enter that number into TT for example $10 x 29.34% = $2.93.

Here's the relevant California info from CA FTB pub 1001.

California does not tax dividends paid by a fund attributable to interest received from U.S. obligations or California state or municipal obligations if at least 50% of the fund’s assets would be exempt from California tax when held by an individual. California taxes dividends derived from mutual funds that are paid from interest received from obligations (bonds) issued by non-California states or municipalities in other states. The fund will provide a statement regarding the dividends it pays.

If your fund has only 29.34% of its income from U.S. Government securities, then it's fully taxable in California.

 

[SecondCor521]

Thanks, when you say the consolidated statement will have the information I need do you mean what securities need to be adjusted? There is nothing on this Acorns statement that gave me that info, someone just mentioned it on the forum when i was asking questions.
I have read all the mouse type and I just don't see it anywhere. I even logged onto my account to see if there was another document available, there wasn'

Well, the three pieces you need to know are:

1. The dividends that were paid to you by security,
2. The percentage of income from US government obligations, and
3. Your state law.

Yes, normally the brokerage will provide you with the information for (1) and (2). (1) is usually in the statement, and (2) is either in the statement or in an extra document. If (2) is in a separate document, it will be a general document and won't be specific to your particular account (because it just lists percentages for each fund).

But brokerages differ in how much they help their investors. Since your brokerage hasn't provided the information, it could mean any number of things. They don't have it, don't know they should provide it, don't care enough to provide it, or some other reason.

Anyway, you might be able to contact the investor relations for the ETFs themselves and see if they can provide you with the correct information. It would seem to me that you're entitled to the adjustment as long as you meet the state tax requirements.

Since your profile lists you're in California and @cathy63 helpfully shared the California rules for (3), it might be a moot point. The first ETF you mentioned seems to be well below 50%. The second one might hit the 50% benchmark - you could try giving Blackrock (?) a call.

Another thing to consider is how much this might save you. I do the tax return for an entity and it's technically entitled to several tax deductions that I don't bother to take because the total amount saved is only a few dollars and it's not worth the paperwork hassle. You might take the dividends that ISTB paid you in 2021, multiply by 50% (estimate of the US Government obligations it might be paying), then multiply by your state marginal rate and see if that number is worth your effort.

You're probably not required to take the deduction, but you certainly may if you qualify for it and it's worth the hassle.