The Tax Interview
What is the 1st step in the Tax Interview
Greet the client and develop rapport for 2 minutes.
What is the maximum amount of the child tax credit for 2018?
$2000.
By making Clients must feel like we respect and value them as a person, feel welcome and secure, and create a lasting positive impression, we are demonstrating _________ ___________.
Genuine Care.
If the client(s) have a balance due for the tax year 2018 what tool in Blockworks should you tax advantage of to help the client and how can you find it?
The W-4 Planner is available in BlockWorks 2018 to help taxpayers understand their upcoming tax situation and make adjustments to withholding that might impact their 2019 return. It is accessed by searching for W-4 in the forms search box.
Everything that prints before the Send-A-Friend Coupon page need to be signed and __________________.
Maintained in the office.
What is the most common error on H&R Block prepared returns?
Missing or misreported income.
What is the maximum refundable portion of the child tax credit for 2018?
$1400
How do our CSPs demonstrate hospitality and care?
Make your client feel confident, they’ve made the right choice, feel welcome, and feel like they’re in good hands.
If a client provides consent in Blockworks for personalized services what type of services does that enable us to provide?
What are the advantages of a MyBlock Account for a client?
Instantly check e-file status
Print & download current & prior year returns
Receive a custom checklist
Upload and share documents with tax pro
Check Emerald Card balance and transaction history
Why is it important for tax professionals to ask the right questions during the interview?
Errors cost us money.
What is the new credit for people that do not qualify for the child tax credit that live in the household?
Non-refundable Dependent Credit.
How do our TPs demonstrate hospitality and care?
You are the expert, they came to see a person, a confidant, who is here to listen, to look at their tax situation, and to translate it into the best possible tax outcome. They have your full undivided attention, and that you’re ready to talk and to listen.
During your tax interview, you discover that one of the clients dependents will be 17 next year. What do you need to discuss with your client?
You will no longer be eligible for the $2000 child tax credit; therefore your refund we be decreasing. We should take a look at adjusting your withholding to adjust for that if you want your refund to stay the same or are you okay with the lower refund for next year?
Block Advantage statements should ______ stapled in the folder
explained and not
What is the best way to obtain the information you need to prepare and accurate tax return?
Ask open ended questions.
Home Equity Mortgage Interest is fully deductible, true or false?
False.
How often should someone check with waiting clients?
Check in with waiting clients periodically, every 7-10 minutes.
During the tax interview process you find out the client are getting divorced in 2019. What tax advice under the Tax Cuts Jobs Act can you give them.
Beginning 1/1/2019, Alimony is no longer deductible by the payor or income to payee.
Local earned income tax returns for Cumberland, Perry, or Lancaster counties should be completed in Blockworks? True or False?
False
What should we advise our clients of about income matching with the IRS during the tax interview process?
The IRS uses automated programs that match returns against information statements. If information on a tax return does not match the information provided to the IRS, the taxpayer is likely to receive a notice from the IRS.
You can deduct charitable contributions up to what percentage of your adjusted gross income for 2018?
60%
What are the 4 points during the tax interview process that a tax professional should complete?
Introduce yourself and reset expectations
Learn your client’s story
Respond appropriately to life events
Communicate clearly throughout the tax prep process
Juan tells you that next year his father is going to be coming to live with him. The only income his father has is social security. What tax credit can you let Juan know he may qualify for in 2019?
Set an appointment up with Juan after his father comes to live with him. Let Juan know he may potentially qualify for the new Non-refundable dependent credit.
A Copy of the Local Income tax return is to be kept with the office copies? True of False
True
What is a Refund Surprise?
This happens when a client is expecting a better "bottom line" to the return than is legally possible.
What section of the Schedule A has been eliminated by the TCJA?
Miscellaneous Itemized Deductions subject to 2% of adjusted gross income.
What is the second phase in the Value Proposition?
Demonstrating Expertise
At the tax desk, you client has expressed dissatisfaction with their current brokerage account manager. How can you help them?
Ask the client if they would like a no obligation 2nd opinion? If they agree, have the client complete a 7216 for Amerprise and contact Steve Hoffman to set up a time that is convenient for the client.
A Client wants to pay with a Refund Transfer but has not come to the office to verify their identity and sign the, (paper) "Consent to Use." Can they use "Approve Online"?
No they cannot.
Q4 on the Survey, My Tax Professional clearly described the H&R Block service process at the beginning so I knew what to expect, is to measure how a tax professional ____________.
Sets expectations.
If you are in a Qualified Disaster Area and you take an early distribution from your pension to cover expense from the disaster, do you have to pay the penalty?
No there is a forgiveness for the early withdrawal penalty in disaster areas.
Upfront Pricing is an attempt to ______ __________ to our clients.
Reassure transparency.
What tools in Blockworks can you use to prevent a "Refund Surprise for 2019?
If the client mails their documents to a preparer but never comes into the office, can they do approve online to complete their return?
Yes, if the Client Service Agreement is emailed and signed by the client prior to starting the process.
How do you handle a Refund surprise at the tax desk this year?
For the qualified business income what is the percentage of the deduction?
20%
How many bundles and add-ons are there in our upfront pricing for 2019?
5 Bundles and 22 Add-ons.
Your client tells you that next year they are cashing in EE Savings bonds that have matured. The face amount of the bonds are $5,000 each and they are cashing in 5 of them. Their income for this year consists of interest income, pensions, and social security. What should you do for this client for 2019?
You should estimate the interest amount per bond (or ask the client if they have the amount), complete the Estimated tax worksheet in Blockworks for 1040ES vouchers for 2019.
If a taxpayer has received an Emerald Advance and then files a return but the return does not qualify for a Refund Transfer, how must the return be filed?
The return must be filed with a direct deposit to the Emerald Card and tax preparation fees must be paid prior to sending the return.
Starting this year who is to respond to positive client surveys with a thank you email?
Tax Professionals.
For assets purchased after 9/27/2017 what was the amount of the Special Bonus Depreciation available and what is the optional amount you can elect instead?
100%
Optional 50%
Do we confirm the price of the return before or after we review the clients documents at the tax desk?
After we review the documents, we confirm the price estimate.
Your client is self employed and tells you that next year they are selling their business. They want to know how they should set up the sale of the business so they pay the least amount of tax. What is your next step as a tax professional?
You will need to first ask if they have an offer on the business for a certain amount. Take a look at the assets of the business first to see if there will be recapture, then see if an installment sale would be the best option to defer the gain.
If your dependent is going overseas to study abroad what product would you recommend to your client?
The Emerald Card because there are no foreign transaction fees.
Why is the Protect & Secure Bundle the best option we have for our clients?
It is a discount of our 2 most valuable products Peace of Mind, The best extended service plan in the industry and Tax Identity Shield a tax identity theft protection — nothing else like it on the market.
One of the biggest changes in the 529 plans in the TCJA was that up to $10,000 per year per student can be used for ___________________.
elementary and secondary school
What free services do all our clients receive with their return preparation?
Maximum Refund Guarantee, Satisfaction Guarantee, Free e-file, Free 2nd Look, Help you answer letters from any government authority.
Your client says their spouse died and they are not sure if they need to do anything. What advice do you need to give them?
In Pennsylvania, we have Inheritance Tax and even though you may not have to pay tax on what was left to you it needs to be reported to the county. We can help you with that return if you would like.
If the client has a balance due on a return how as tax professionals can we help them?
IRS Installment Agreement if they cannot pay in full.
Pay by credit card at Pay1040, official payments, payusatax.com
Pay by direct debit or check.
Do tax planning for 2019.