Volunteer Income Tax Assistance (VITA) Certification Practice Test

What should a volunteer do if a taxpayer reports "Yes" to the "Interest" question on Form 13614-C?

1. Input Form 1099-INT into tax software.

2. Go to the next question on Form 13614-C.

3. Ask the taxpayer if they had any other interest income.

4. Prepare the return without asking any follow-up questions.

The correct answer is: Ask the taxpayer if they had any other interest income.

When a taxpayer indicates "Yes" to the "Interest" question on Form 13614-C, it is crucial for the volunteer to gather more detailed information about the interest income. This is because understanding the full scope of the taxpayer's interest income is essential for accurately reporting their income and determining their tax liability. By asking if the taxpayer had any other interest income, the volunteer is ensuring that all relevant financial information is collected, providing a comprehensive view of the taxpayer's financial situation. This approach aligns with the VITA program's commitment to thoroughness and accuracy in preparing tax returns. Accurately reporting all interest income, whether from a single source or multiple, is vital since it directly impacts the taxpayer's adjusted gross income, which can affect eligibility for various credits and deductions. Failure to ask follow-up questions could lead to an incomplete or incorrect tax return, which could have financial implications for the taxpayer. In contrast, simply moving on to the next question or preparing the return without further inquiries would not ensure that all pertinent information is considered. Inputting information solely from a Form 1099-INT without verification of any other interest sources could overlook additional income that is required to be reported. As a result, it is vital to engage with the taxpayer