The Ohio Benefit Bank
TM
Tax Counselor Quick Reference Guide
November 2016
Version 1.5
The Ohio Benefit Bank (OBBTM) Counselor Support Website:
support.ohiobenefits.org
Contents
Websites & Login Information for the OBB�����������������������������������������������������������������������iv
Your First Tax Appointment�������������������������������������������������������������������������������������������������v
Section One | Getting Started with The Ohio Benefit Bank
Working Together: Network Roles������������������������������������������������������������������������������������� 8
Your Role as an OBB Counselor���������������������������������������������������������������������������������������� 8
Counselor Support Website����������������������������������������������������������������������������������������������� 9
The Online Service����������������������������������������������������������������������������������������������������������� 10
Understanding the Counselor Homepage����������������������������������������������������������������������11
QuickCheck�����������������������������������������������������������������������������������������������������������������������12
Client Creation������������������������������������������������������������������������������������������������������������������13
Client Login and Agreements������������������������������������������������������������������������������������������ 14
Where to Find Help����������������������������������������������������������������������������������������������������������15
Section Two | Income Tax Specifics
Introduction to Income Taxes������������������������������������������������������������������������������������������ 17
Filing Status����������������������������������������������������������������������������������������������������������������������18
Qualifying Children�����������������������������������������������������������������������������������������������������������20
Qualifying Relatives����������������������������������������������������������������������������������������������������������22
Qualifying Person Decision Tree��������������������������������������������������������������������������������������23
Income������������������������������������������������������������������������������������������������������������������������������ 24
Sample Income Forms�����������������������������������������������������������������������������������������������������25
Adjustments and Deductions������������������������������������������������������������������������������������������29
The Affordable Care Act��������������������������������������������������������������������������������������������������� 31
Tax Credits������������������������������������������������������������������������������������������������������������������������34
Filing Your Return�������������������������������������������������������������������������������������������������������������36
After Filing������������������������������������������������������������������������������������������������������������������������� 37
Accessing the Training Website���������������������������������������������������������������������������������������38
Page iv
Websites & Login Information for the OBB
Your Counselor Login
Training Login
suppport.ohiobenefits.org
training.thebenefitbank.org
Login Name:
Login Name: oh_____
Password:
Password: tbb12345
Important Contact Information
Helpful Websites
The Benefit Bank® Help Desk
The Ohio Benefit Bank Counselor Support
1.855.TBB.HELP (855.822.4357)
http://support.ohiobenefits.org
The Ohio Benefit Bank
Job and Family Services Information Center
[email protected]
http://jfs.ohio.gov/ocomm_root/0001InfoCenter.
stm
Ohio State Legal Services
1.866.529.6446
Locate your Community Action Agency
http://development.ohio.gov/is/is_epp_locate.htm
Check the status of a HEAP application
https://portal.ocean.ohio.gov/OCEANClientPortal/
IVRAuthorization.aspx
FAFSA PIN Retrieval
www.pin.ed.gov
Ohio | Benefits
www.benefits.ohio.gov/
Ohio Medicaid Hotline
www.ohiomh.com
Page v
Your First Tax Appointment
Your first tax appointment as a counselor with The Ohio Benefit Bank is an important milestone where
you can finally apply the knowledge you’ve gained through training. Below, we’ve outlined the steps to a
successful tax appointment to help get you started.
Steps to a Successful Tax Appointment
1. Client’s first contact with the OBB
2. Pre-screen the client’s income and documentation
3. Read & review the Terms and Conditions of Use
4. Log into your counselor account
• Go to support.ohiobenefits.org
• Click counselor log in
• Enter your login and password
5. Create a new client account or log into an existing account
6. Click filing this year’s taxes
7. Complete each section of the return
8. Review and print each return
9. Review any necessary next steps
10. Provide the client with your organization’s contact information
Page 7
Section One
Getting Started with The Ohio Benefit Bank
Overview
Each year, more than $1.66 billion in tax credits and work support programs go unclaimed by Ohioans.
Nearly 95 percent of these dollars are federal funds and must be returned for re-allocation to other states
or programs.
The Ohio Benefit Bank (OBB) strives to assist Ohioans in accessing these dollars as:
▪▪ They are revenue for our local economies.
▪▪ They help stabilize families.
▪▪ They help low and moderate-income people overcome the devastating effects of poverty.
Implementation
The Ohio Benefit Bank is a program of the Ohio Association of Foodbanks and is implemented through
a public-private partnership between the State of Ohio, four federal agencies, eight state agencies, and
about 1,100 faith-based and community organizations across Ohio. Since inception in 2006, the OBB has
connected over hundreds of thousands of Ohioans with more than $1.59 billion in tax credits and potential
benefits, infusing federal dollars into local economies.
Key Features
▪▪ Internet-based
▪▪ Question-guided
▪▪ Counselor-assisted
▪▪ An eligibility estimator and application completion tool
▪▪ Secure and confidential
▪▪ Built in expertise so you do not need to be a benefits or tax expert to make an impact
▪▪ Easy to use, simple instructions, no math required
Working Together: Network Roles
Lead Agencies
Solutions for Progress
“The Benefit Bank”
The State of Ohio
TBB Programming &
Maintenance, Help Desk
Funding and Support
Ohio Association of Foodbanks
Lead Agency, Training, Grants,
Coordination and Marketing
Your Role as an OBB Counselor
An OBB Counselor DOES:
▪▪ Provide a welcoming and safe environment for
client sessions
An OBB Counselor DOES NOT:
▪▪ Sign client forms or tax returns
▪▪ Show all clients courtesy and respect
▪▪ Charge for services, solicit or accept donations
for OBB services
▪▪ Complete required training
▪▪ Help clients make decisions
▪▪ Attend update training, including tax year
refresher training
▪▪ Steer clients toward a certain choice
▪▪ Verify client identity, if required
▪▪ Interview the client and enter responses into
The Benefit Bank
▪▪ Provide a printed copy of client forms
▪▪ Store client applications, client documentation,
or client login names or passwords, on site, on a
computer, or on a computer server
▪▪ Choose or enter client passwords and security
questions
▪▪ Determine final eligibility on programs for which
a client applies
▪▪ Enter counselor information such as phone
number or email address into client forms
Section One • Page 9
Counselor Support Website
http://support.ohiobenefits.org
This website is a tool to help you be successful as an OBB counselor. It’s also a great starting point for
assisting clients as we’ve included a link to the counselor login page in the top-right corner.
Here you’ll find:
▪▪ Online Trainings
▪▪ Announcements
▪▪ Marketing order form
▪▪ Contact information for when you need help
▪▪ Resources
▪▪ Documents
▪▪ Training materials
▪▪ And more!
Page 10 • Section One
The Online Service
To assist clients you will need to access The Benefit Bank online service. To access the online service click
“counselor login” in the top-right corner of the counselor support website. If the background is teal, you are
on the right site! After completing this training you will receive login credentials for the online service. Until
then, you will not be able to enter.
support.ohiobenefits.org
https://secure.thebenefitbank.org
Section One • Page 11
Understanding the Counselor Homepage
The counselor homepage is the first page you’ll see when you log in to TBB as a counselor. This “main”
page allows you to log in an existing client, create a new client account, retrieve a client’s login name,
reset a client’s password, and check basic eligibility with QuickCheck.
Access
the Report
Portal
Client
checklists, fact
sheets,
steps docs
Helpful info.
on programs
and links to
applications
Make
changes
to your
counselor
profile info.
Reset a client’s password
(requires client login name)
Retrieve a client’s login name
Log in an
existing
client
Create a new
client account
Page 12 • Section One
QuickCheck
The QuickCheck calculator is a tool that helps to determine a person’s potential eligibility for various benefits and
work support programs within a few minutes. Advantages of QuickCheck:
▪▪ You do not have to be an OBB counselor to use QuickCheck
▪▪ Very little personal information is required and it will not be saved
▪▪ QuickCheck is a great pre-screening tool to use before scheduling a session with a client
Using QuickCheck
To access QuickCheck, click the link on the www.ohiobenefits.org home page.
1. Select “Ohio” from the drop-down menu and click the
forward arrow
2. Complete the information for the client and click the
forward arrow
3. Enter the client’s information for medical details and
household expenses and click the forward arrow
Section One • Page 13
4. Enter the client’s income and expenses and click
the forward arrow
5. Check all options that apply for the client’s details
and click the forward arrow to see the program eligibility
summary
6. QuickCheck displays a star rating to indicate how likely
a person is to be eligible for a program. Two or more stars
generally indicates a good possibility that a person would
qualify for the program or tax credit
Click the title to
view details and
links to apply
Page 14 • Section One
Client Creation
Each OBB client must have a personal TBB account. Counselors structure the client login name and
clients choose their own password, security questions, and answers.
It is important that counselors:
▪▪ Provide each client with a client login card complete with login and password
▪▪ Standardize the structure of client logins for you or even your entire agency
For example: <first initial of client first name><client last name> or tsmith
▪▪ Let clients know that passwords must be 8 characters long, alpha/numeric
▪▪ Allow clients to enter their own password, security questions, and answers
Section One • Page 15
Client Login and Agreements
Allow Client to Login
When you have successfully created the client account,
you will see the counselor portal page with a red
confirmation message, “Account <login name> has
been created!”
You can now log in to the client account. When
assisting a real client you would enter the login name
and the client would enter the password that they
created.
Terms and Conditions of Use
The Terms and Conditions of Use
contain legal protections for the
client, the counselor, and the
counselor’s organization. Clients
must agree to these terms to use
The Benefit Bank.
A full copy of the Terms and Conditions of Use is available in the Basic Information folder under
“Documents” on the counselor homepage. Provide a printed copy of this form for the client to read at his/
her own pace before you begin the session.
Consent to Contact and Share Information
The Benefit Bank works hard to keep client contact information private and secure. We do not sell or
exchange contact information about the users of The Benefit Bank with anyone.
However, occasionally staff may reach out to clients to offer information about new programs and gather
feedback on their experience using TBB. Also, OBB sometimes works with other organizations to find ways
to improve services. To do this, we may share client information with an outside educational institution for
research purposes only.
Clients may answer yes or no to
this question. Whatever they
decide will have no effect on their
eligibility for services.
Where to Find Help
Glossary Terms are single words or terms that appear as blue hyperlinks. Click to view a definition or
clarifying text.
Clarifying Questions are blue hyperlinks preceded by a question mark icon. These questions will appear on
the same page as the topic they clarify.
The Help Desk
Solutions for Progress provides a Help Desk that responds to phone and e-mail inquiries from counselors.
The Help Desk is available for support as you assist clients.
Contact the Help Desk when:
▪▪ You forget your login name and password
▪▪ Your client forgets his/her login name and password
▪▪ The Benefit Bank is not responsive or behaving as expected
▪▪ You need help with technical troubleshooting
▪▪ You get an error message
▪▪ You need help finding answers to client questions
Before contacting the Help Desk, read the blue help links and search TBB for answers. TBB contains links
to information that will answer many common questions.
Contact the TBB Help Desk
Hours During Tax Season:
1.855.822.4357
9 AM - 8 PM Monday-Friday
1.855.TBB.HELP
9 AM - 5 PM Saturday
[email protected]
(Response within two business days)
Normal Hours:
9 AM - 5 PM Monday-Friday
Page 17
Section Two
Income Tax Specifics
Introduction to Income Taxes
Completing a tax return is essentially a basic math equation.
Tax Paid (withholdings from paycheck)
- The amount of tax required
= Refund or Amount Owed
How is withholding determined?
Form W-4 is completed by an employee to indicate his or her
tax situation to the employer. The W-4 form tells the employer
the amount of tax that should be withheld based upon the
employee’s status, number of dependents, etc. In general, the
larger the number of allowances claimed on the W-4, the smaller
the amount of tax withheld.
How is the amount of tax required determined?
Tax filers determine the amount of tax required by entering information like income, filing status, and
number of dependents into a tax return form. There are several forms available to individual tax filers:
they may use a 1040, 1040A or 1040EZ. The Benefit Bank, however, only uses Form 1040 to file taxes
because it allows the tax filer to file for all available credits and deductions.
Page 18 • Part Two
Filing Status
Your client’s filing status will determine the amount of their standard deduction as well as the tax credits
for which they may be eligible. There are five filing statuses: single, married filing jointly, married filing
separately, head of household, and qualifying widow(er) with a dependent child.
Single
The single filing status is for people who are unmarried. A taxpayer can claim single when
they meet one of the following requirements:
▪▪ Unmarried on December 31st of the tax year
▪▪ Legally separated on December 31st of the tax year
Married Filing Jointly
Married filing jointly is used by couples who were married on or before December
31st of the tax year. This status will increase both the standard deduction and the
income limits for credits like the Earned Income Tax Credit.
Taxpayers can claim married filing jointly if any of the following apply:
▪▪ They were married on or before December 31st of the tax year
▪▪ Their spouse died during the tax year and they did not remarry during the tax
year
Married Filing Separately
Married filing separately is used by couples who were married on or before December
31st of the tax year who want to complete their taxes on their own. Clients who choose to
file married filing separately will not be eligible for the Earned Income Tax Credit and may
pay more in taxes. If your client wants to avoid the financial liabilities of their spouse they
may be able to file a joint return by mail and include form IRS-8379, the injured spouse
allocation.
Part Two • Page 19
Head of Household
The head of household filing status offers tax filers who are single or considered single
and have dependents a significantly higher deduction on their taxes and may dramatically
increase their tax refund. To claim head of household the tax filer must:
▪▪ Have a qualifying child or relative;
▪▪ Be unmarried or considered unmarried;
▪▪ And have paid over half the cost of keeping up the home
Qualifying Widow(er) with a Dependent Child
The qualifying widow or widower with a dependent child filing status is for individuals whose spouse died
within the last two tax years and they did not remarry before December 31st of the tax year. They must
also claim at least one dependent to be eligible for this filing status.
Page 20 • Part Two
Qualifying Children
A qualifying child can be used for the following purposes on a tax return:
▪▪ Head of Household
▪▪ Dependency
▪▪ Child and Dependent Care Credit
▪▪ Child Tax Credit
▪▪ Additional Child Tax Credit
▪▪ Earned Income Tax Credit
There are five tests a child must pass to be considered a Qualifying Child: Relationship, Age, Support, Joint
Return and Residency.
Relationship Test
To pass this test, the child must be your son, daughter, stepchild, eligible foster child, brother, sister,
stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew).
Age Test
The age test varies from credit to credit. View the box below to see how old the child must be to qualify for
a specific credit.
Head of Household
Dependency
Earned Income Tax Credit
Child and Dependent Care
Credit
▪▪ Under 19
▪▪ Under 13
▪▪ Under 24 if a full time
student
▪▪ Any age if permanently
and totally disabled
▪▪ Any age if permanently and
totally disabled
Child Tax Credit
Additional Child Tax
Credit
▪▪ Under 17
Part Two • Page 21
Support Test
The child cannot have provided more than half of their total support during the tax year. This means
that this child must not be paying for a majority of things associated with maintaining themselves. This
includes shelter, food, and utilities.
Note: A child does not have to pass the Support test for the Earned Income Tax Credit.
Joint Return Test
The child may not file a joint tax return with anyone.
Residency Test
To pass this test, the child must have lived with you for more than half the year. Temporary absences such
as school, vacation, business, medical care, military service, or detention in a juvenile facility DO count as
time lived at home.
A child who is born or died during the year is considered to have lived with you for the entire year.
Note: A child of divorced or separated parents may be considered the qualifying child of the noncustodial
parent if certain conditions are met. Each child may only be claimed by one parent each year. When filing
their taxes the noncustodial parent could claim an exemption for the child and the child tax credit but
no benefits like the Head of Household filing status, Earned Income Tax Credit, and Credit for Child and
Dependent Care Expenses.
Page 22 • Part Two
Qualifying Relatives
Taxpayers may also claim a person who meets the criteria for a qualifying relative as a dependent. A
person must pass the following tests to be considered your qualifying relative.
Member of Household or Relationship Test
A qualifying relative is a person who lived with you for the entire year OR is related.
Related is defined as:
▪▪ child, stepchild, foster child, or descendant of any of them (like a grandchild)
▪▪ sibling(s), including stepbrother, stepsister, brother-in-law, or sister-in-law
▪▪ niece or nephew
▪▪ parents, including stepfather or stepmother
▪▪ parent’s siblings like aunt or uncle
▪▪ grandparents
Income Test
The qualifying relative must have had a gross income of less than $4,000 during the tax year.
Support Test
You must have provided over half of the relative’s total support during the tax year.
Citizenship/Residency Test
The relative must be a U.S. citizen, national, or resident alien or a resident of Canada or Mexico.
Joint Return Test
The relative may not file a joint tax return with anyone.
Part Two • Page 23
Qualifying Person Decision Tree
Qualifying Child Tests
Note: This is an overview of the requirements.
More specific rules apply in certain cases.
Qualifying Relative Tests
The child is your son, daughter,
No
stepchild, fosterchild, sibling,
stepsibling, or descendant of any of
them.
Person is a member of your
household OR related (like a
parent).
No
Yes
Yes
The child is under age 19, under 24 No
and a full-time student, or any age if
disabled.
Person’s income is under the
income limit.
No
You cannot
claim this
person as a
dependent.
No
Yes
Yes
The child did not provide more than No
half of his or her own support.
Person received more than half of
his or her support from you.
No
Yes
Yes
The child lived with you for more
than half of the tax year.
No
Person will not file a joint return.
No
Yes
Yes
Person is a U.S. citizen, U.S.
resident, U.S. national, or a resident No
of Canada or Mexico for some part
of the year.
Yes
Yes
The child is your qualifying
child. The child is also your
dependent.
Person is a U.S. citizen, U.S.
resident, U.S. national, or a resident
of Canada or Mexico for some part
of the year.
Yes
Yes
You can
claim this
person as a
dependent.
Page 24 • Part Two
Income
Income is reported on Reporting Forms which vary depending upon the type of income being reported. The
Benefit Bank does not support all types of income. TBB will ask about all forms of taxable income, but will
only allow the client to move forward if each of their income types are accepted by the The Benefit Bank.
Clients’ taxable income must be lower than $95,000 for joint filers or $65,000 for all other filers.
Reporting Forms Supported by TBB
W2: Wage & Tax
Statement
1099MISC:
Miscellaneous Income
(i.e. Nonemployee or
Other Income)
1099R: Pensions,
Annuities, IRAs, &
Insurance Contracts
SSA1099: Social Security
Benefit Statement
RRB1099/RRB1099R:
Railroad Retirement
Board Statements
1099INT/1099OID:
Interest Income
1099DIV: Dividends
1098E: Student Loan
Interest Statement
1098T: Tuition
Statement
1099G: Government
Payments
(Unemployment or
State/Local Tax Refunds)
CSA 1099R/CSF 1099R: W2G: Certain Gambling
Statement for U.S. Civil
Winnings
Service Retirement
Benefits
5498: IRA Contribution
1099C: Cancellation of
Information
Debt
1098: Mortgage Interest 1099SA: Health
Statement
Savings Account (HSA)
distribution
Income Unsupported by TBB
Business income
reported on Schedule C
Rental and Real Estate
Income
Farm Income
Tips not reported on a
W-2
Capital Gains
Income reported on a
1099-B
Codes R, P or T in box 12
of a W-2
Non-Taxable Income
TBB will not ask about the following types of
income because they are not subject to federal tax:
▪▪ Child Support
▪▪ Cash Assistance
▪▪ Food Assistance
▪▪ Supplemental Security Income (SSI)
▪▪ Veterans Benefits
Sample Income Forms
Form W-2
Form 1099-MISC
Page 26 • Part Two
Form 1099-R
Form SSA-1099
Form 1099-INT
Form 1099-DIV
Page 28 • Part Two
Form 1099-G
Form 1099-C
Part Two • Page 29
Adjustments and Deductions
When individuals pay taxes throughout the year, they are paying an estimated tax. When you complete a
tax return, you figure out if you can get some or all of that money back. You can reduce the taxes you owe
through adjustments and deductions.
Adjustments
Taxpayers can subtract certain expenses, payments, contributions, fees, and other costs from their total
income, which reduces the amount they may be taxed. The figure remaining after computing the taxpayer’s
adjustments to income is their Adjusted Gross Income (AGI).
Adjustments include:
▪▪ Alimony payments
▪▪ Cost of supplies teachers purchase for their classroom
▪▪ One half of self-employment tax paid during the tax year
▪▪ Tuition and school fees (Note: It is sometimes better to take these payments as a credit; TBB will
determine the best choice for you)
▪▪ Student loan interest payments
▪▪ Portion of health insurance premiums paid by individuals who are self-employed
▪▪ Money contributed to a traditional Individual Retirement Account (IRA)
▪▪ Contributions to a Health Savings Account (HSA)
Deductions
Deductions are subtracted from your AGI and they further reduce the amount of income that is taxed.
Taxpayers have a choice of taking the standard deduction or itemizing deductions. Taxpayers should use
the type of deduction that results in the lowest amount of tax.
Standard Deduction
The standard deduction varies depending on your filing status. The smallest deduction is for a single
taxpayer and the largest is married filing jointly or qualifying widow(er) with a dependent child.
Standard Deduction
Single
$6,315
Married Filing Jointly
$12,700
Married Filing Separately
$6,350 (each)
Head of Household
$9,350
Qualifying Widow(er) with a
Dependent Child
$12,700
Page 30 • Part Two
Itemizing Deductions
Itemizing deductions is an alternative to the standard deduction where we add up each of the qualified
expenses to deduct from the taxpayer’s AGI. We only want to itemize if the total of the qualified expenses is
greater than the standard deduction. Expenses that can be claimed as deductions include:
▪▪ State and local income taxes or sales taxes
▪▪ Real estate taxes paid
▪▪ Home mortgage interest paid
▪▪ Gifts to charity
▪▪ Gambling losses
▪▪ Impairment related work expenses for disabled persons
▪▪ Losses from casualty
▪▪ Un-reimbursed employment expenses
▪▪ Fees for tax filing
▪▪ Medical and dental expenses
▪▪ Mortgage insurance premiums
Part Two • Page 31
The Affordable Care Act
Introduction
The implementation of the Affordable Care Act brought potentially life-saving health insurance benefits to
millions of Americans in 2014. It also introduces several new intricacies to filing income taxes. The changes
include new tax forms that report health coverage status, a new tax credit called the Premium Tax Credit,
and penalties for not obtaining health insurance coverage.
Health Coverage Status
Under the Affordable Care Act, you are required to have health insurance that qualifies as “minimum
essential coverage” for the year. All tax filers will be responsible for reporting health coverage status
for themselves and their dependents to the IRS when filing their taxes. If your clients or any of their
dependents do not have minimum essential coverage, then they are responsible for paying a fee on their
tax return. Some exemptions exist. Minimum essential coverage includes insurance policies through the
Health Insurance Marketplace, job-based coverage, Medicare, Medicaid, CHIP, TRICARE, and certain other
coverage.
Individual Shared Responsibility Payment
If your clients or their dependents do not have insurance that qualifies as minimum essential coverage
during the year, they will make an additional payment on their tax return, called the individual shared
responsibility payment, unless they qualify for an exemption from the fee.
The payment to be charged will be the higher of:
▪▪ 2.5% of yearly household income. (Maximum: Total yearly premium for the national average price of a
Bronze plan sold through the Marketplace)
▪▪ $695 for adults and $350 for children under 18. (Maximum: $6,085 per family)
TBB will ask questions to determine if your clients meet any of the following exemption qualifications:
▪▪ They are uninsured for less than 3 months of the year
▪▪ The lowest-priced coverage available to them would cost more than 8% of their household income
▪▪ They don’t have to file a tax return because their income is too low (this exemption still applies even if
they choose to file a tax return)
▪▪ They are a member of a federally recognized tribe or eligible for services through an Indian Health
Services provider; a recognized health care sharing ministry; or a recognized religious sect with
religious objections to insurance, including Social Security and Medicare
▪▪ They are incarcerated and not being held pending disposition of charges
▪▪ They are not lawfully present in the U.S.
▪▪ They have a hardship exemption which affects their ability to purchase health insurance coverage (this
is decided on an individual basis)
Page 32 • Part Two
Your clients will need to apply for an exemption for all instances except for being uninsured for less than
3 months or if their income is low enough that they are not required to file taxes. These exemptions
automatically apply when they file their taxes. To apply for an exemption, go to healthcare.gov or call 1-800318-2596. If your clients have applied for and have been granted an exemption, the Marketplace will mail
a unique exemption certificate number (ECN) that they will need for tax filing.
If clients were uninsured for three months or more, 1/12 of the yearly fee will apply to each month that
they were uninsured.
TBB will determine if clients are responsible for paying a fee on their return. If so, TBB will calculate the
total amount owed. The fee will be included on Form 1040 and will either reduce the refund or increase
the amount of tax owed.
Premium Tax Credit
If your clients get health insurance coverage through the Health Insurance Marketplace, they may be
eligible for the Premium Tax Credit. Clients can choose to receive the credit in advance, called the
Advanced Premium Tax Credit (APTC), or get the credit when they file taxes. This credit can help make
health insurance coverage more affordable for individuals with low to moderate incomes.
They may be eligible for a credit if they meet all of the following:
▪▪ Bought health insurance through the Marketplace
▪▪ Are ineligible for coverage through an employer or government plan
▪▪ Are within certain income limits
▪▪ Will not file a Married Filing Separately tax return (except in certain instances of domestic abuse and
spousal abandonment)
▪▪ Cannot be claimed as a dependent by another person
If your clients are eligible for the Premium Tax Credit, TBB will calculate the total credit amount and this will
be included on their tax return.
Claiming the Credit
If your client chose to get the credit in advance: Money is paid throughout the year directly to the insurance
company to lower their out-of-pocket monthly premiums. When they file their taxes, the total amount of
payments that were sent to the health insurance provider during the year will be subtracted from the total
amount of the premium tax credit that is calculated on the return. If the calculated total credit is more than
the advanced payments made for your client, then the difference will either increase the refund or lower
the amount of taxes owed. If the calculated credit is less than the advance payments made to your client’s
insurance company, then the difference will either decrease the refund or increase the amount of taxes
owed. TBB will reconcile the amount of your client’s credit and calculate the final credit amount on their
tax return.
If your client chose to get the credit later: They will receive the credit all at once when they file their taxes;
Part Two • Page 33
this will either increase the refund or lower the amount of taxes owed. TBB will calculate the total credit
amount and this will be included on the tax return.
The amount of your client’s Premium Tax Credit may be different from what was projected when they
applied for health coverage if they had a change in income, household size, or filing status. Clients should
always report these changes to the Health Insurance Marketplace when they happen in order to help get
the proper type and amount of financial assistance. This will help ensure that the amount received in
advance is not too much or too little.
IRS Forms used to report health coverage and calculate the credit
1095-A Health Insurance Marketplace Statement: This reporting form will be sent to you if you or a family
member is enrolled in health insurance coverage through the Health Insurance Marketplace. It will provide
information you need to complete Form 8962 if you are eligible for the Premium Tax Credit and/or if you
received the APTC.
1095-B Health Coverage: This reporting form will be sent to you if you, your spouse, or your dependents
had minimum essential coverage for some or all of the months during the year. It will provide information
you need to answer questions about your minimum essential health coverage on your tax return.
1095-C Employer Provided Health Insurance Offer and Coverage: This reporting form will be sent to you if
you are offered any health coverage by your employer, regardless of whether or not you are enrolled in it. It
will provide information you need to answer questions about your health coverage on your tax return.
TBB will ask you to report information from Form 1095-A, Form 1095-B, and Form 1095-C if you received
any of these forms. The information from these forms and additional questions will determine your credit
eligibility and amount and will be used to fill out Form 8962.
Form 8962 Premium Tax Credit: Forms part of your tax return if you are eligible for the Premium Tax
Credit, regardless of whether you chose to get advanced payments or receive the credit all at once. It will
be used to calculate the amount of your premium tax credit, and if you opted to receive the APTC, it will
reconcile the amount that was paid on your behalf.
Enroll in Health Coverage for 2017
For 2017 coverage, the Open Enrollment Period is November 1, 2016 – January 31, 2017. If your clients do
not have employer-sponsored health coverage or Medicaid/CHIP, they must enroll in a health care coverage
plan in the Marketplace during this enrollment period unless they experience a qualifying life event that
makes them eligible for a Special Enrollment Period. Persons who do not have minimal essentail coverage
for all or part of the year must pay a penalty on next year’s tax return.
Clients can apply apply for Medicaid and CHIP through the Ohio Benefits portal: benefits.ohio.gov.
The fastest way to apply for Marketplace insurance coverage is to apply online at HealthCare.gov. Clients
may also apply by phone at 1-800-318-2596 or with the assistance of a Navigator or Certified Application
Counselor. To find an in-person assister, visit areyoucoveredohio.org or call 1-800-648-1176.
Page 34 • Part Two
Tax Credits
There are two types of tax credits. Non-refundable tax credits reduce the tax owed or tax liability. These
credits can reduce the tax liability to $0 but they will not refund any amount thereafter. Refundable tax
credits are extra dollars that the government disperses to moderate and low income taxpayers which can
reduce the tax liability to $0 and will be refunded if they exceed the tax liability.
Non-Refundable
▪▪ Child Tax Credit - This credit reduces your tax liability up to $1,000 for each child that you claim as a
dependent. To take this credit each child must meet the qualifying child requirements.
▪▪ Child and Dependent Care Credit - To qualify for this credit you must have paid for child and/or
dependent care expenses for a qualifying child in order to work or look for work. Keep in mind:
▪▪ Married taxpayers must both work (have earned income) in order to claim this credit. If a spouse is
either a full-time student during five months of the year or is not capable of caring for themselves
for some period during the year, the credit can still be claimed.
▪▪ To claim this credit the taxpayer must provide the name, address, and taxpayer identification
number or Social Security Number of the person or organization who provided care for the child or
dependent.
▪▪ Credit for the Elderly or Disabled - You may be able to take this credit if by the end of the tax year you
were age 65 or older or were retired on permanent and total disability and you had taxable disability
income.
▪▪ Education Credits - If you paid expenses for yourself or dependents for higher education you may be
eligible for these credits.
▪▪ Savers Credit (Formerly known as the Retirement Savings Contribution Credit) - Only certain taxpayers
who make voluntary contributions to a retirement account may take this credit. Rollover contributions
to a traditional or Roth IRA do not count towards this credit.
▪▪ Mortgage Interest Credit - A taxpayer may claim a mortgage interest credit if he/she has been issued a
Mortgage Credit Certificate (MCC) by their state or local government.
Part Two • Page 35
Refundable
▪▪ Earned Income Tax Credit - To qualify without a qualifying child, you must be at least age 25 and under
65. You must have earned income, a valid social security number, and meet the following income limits:
Your Filing
Status
No qualifying 1 qualifying
children
child
2 qualifying
children
3 or more
qualifying
children
Single,
head of
household,
or qualifying
widow(er)
with a
dependent
child
Married
Filing Jointly
$15,010
$39,617
$45,007
$48,340
$20,600
$45,207
$50,597
$53,930
▪▪ Additional Child Tax Credit - This credit allows taxpayers to claim up to $1,000 per qualifying child. The
amount depends on the taxpayer’s tax liability, modified AGI, and filing status.
▪▪ Refundable Education Credits - If you paid expenses for higher education, you may be eligible for this
credit. Up to 40 percent of this credit is refundable.
▪▪ Premium Tax Credit - This credit help make health insurance, purchased through the Health Insurance
Marketplace, affordable. Individuals must meet certain income guidelines and cannot be claimed as a
dependent by another person. Individuals who file married filing separately will not be eligible except in
certain instances.
Page 36 • Part Two
Filing Your Return
Taxpayers have two options when filing their returns. They may file electronically or paper file. If they choose
to file electronically, or e-file, they will need to sign the electronic form with last year’s AGI. Last year’s AGI
can be found on line 37 of form 1040 (shown below).
Finding Last Year’s AGI
▪▪ If the client used TBB to file taxes last year, TBB will have the prior-year’s tax return and will display the
AGI.
▪▪ If the client used a paid preparer last year, it might be possible for the client to obtain a copy of last
year’s tax return from that preparer.
▪▪ If the client used a tax preparation software or program last year, it may be possible to return to your
prior-year software and view an electronic copy of your prior-year return.
▪▪ First time tax filers over the age of 16 enter zero as the AGI.
The IRS offers a “Get Transcript” self-help tool to receive or access a tax return transcript. There is an
online option to immediately view the AGI, and a mail option to request a paper copy of the prior year’s tax
return (takes 5-10 days to receive). The tool is available at: https://www.irs.gov/individuals/get-transcript.
Clients can also call the IRS at: 1-800-908-9946 to request a tax return transcript.
Part Two • Page 37
After Filing
Clients will receive a notification of their e-file status either via email
or mail, whichever they’ve selected. Please instruct your clients to
open any mail from The Benefit Bank immediately.
Counselors can also help clients find their e-file status using the
e-file status tool. Typically, this information is available within 5 or 10
minutes of submission.
If there is incorrect information on the tax return, like incorrect birthdates or social security numbers, the
e-file will be rejected by the IRS. E-file rejections are easily fixed and may be resubmitted to the IRS.
All rejections whether received by mail or electronically will be accompanied by detailed information on
why the return was rejected. Clients should bring this information with them when they return to have
their information corrected. Simply log into the online service, make the appropriate corrections, and click
Save and Continue until you see a message indicating that the return has been sent. Clients can also be
directed to self-serve to correct their returns if they have access to the internet.
If a client’s return is accepted and they are later contacted by the IRS because they failed to report a
source of income, incorrectly reported a source of income, or for some other reason owe additional tax
they will need to complete an amended return. Although The Benefit Bank online service cannot assist with
completing amended returns, you will be able to access the blank form to offer any interested clients.
Page 38 • Part Two
Accessing the Training Website
The Benefit Bank training website acts as a mirror to the live site. You may practice using TBB on this site
any time without worrying about submitting fake client information.
Never assist real clients using the training website and do not enter training clients into the live site. The
training site is red, the live site is teal.
To access the training site:
1. Go to:
http://training.thebenefitbank.org
2. In the Login Name box, enter the letters oh
followed by any number between 1 and 500.
You do not have to memorize these numbers,
as any set of numbers will allow you access
to the training site
3. Enter the password: tbb12345
If you see an “Authentication Failed” message, pick
a different number and try again.