Dependent Sharing and Comparing Return Results

1. Confirm there is at least one "shareable dependent"
2. Confirm both taxpayers are interested in proceeding, are present and have all their tax documents.
3. Review tax forms (W2's, etc.) to identify taxpayer who probably has a higher AGI. We'll call them TP1.
   • (Refer to the full instruction sheet if there are special considerations such as, if only one TP qualifies for key credits such as OKC, CTC, EITC, WFHDCC.)

In Dependent Sharing Tool

4. Open Dependent Sharing Tool, select Tax Year and complete sections on:
   • Taxpayer info, using estimated AGIs
   • Dependent info, including all dependents (shareable and not)

In TaxSlayer

5. Complete the two initial tax returns. Be sure all dependents are claimed (and each by only one TP.) Unless there is a reason to do otherwise, do the following for the initial returns:
   • TP 1 should claim all shareable dependents for initial return.
   • All non-shareable dependents should be claimed by the taxpayer that can claim them.
   • Complete all sections of return to ensure all credits are reflected – Federal plus OR and/or WA.
6. Have initial returns QR'ed. (QR can skip e-file pages for now, but rest must be reviewed for accuracy.)
   • If completed tax returns reveal taxpayer can no longer claim a dependent and/or wrong filing status, note changes needed and re-do taxes appropriately.
7. Generate PDF of each taxpayer's full tax return for this scenario and keep open in a tab in browser in case you need to refer to it later (e.g., if unexpected credits awarded/missing in other scenarios.)

In Dependent Sharing Tool

8. Update the sections on:
   • Taxpayer info, using AGIs computed by TaxSlayer.
   • Dependent info, including any changes on who can claim each dependent.
9. Complete scenario matching initial tax returns. (if TP1 claimed all shareable dependents, use Scenario 1.)
   • Check all fields (filing status, dependents) for accuracy and correct if necessary.
   • Fill in all refunds (amount owed)

10. Identify the other scenarios you want to evaluate. The tool will prepopulate most scenarios, but you can customize these scenarios – and create additional scenarios if needed for special considerations.
11. Select one shareable dependent to move between tax returns.
    • If no special considerations, move the youngest child from TP1 to TP2. (These instructions assume TP1's AGI confirmed to be higher than TP2's. If TP2's AGI is higher, move the oldest child.)
12. Input filing status & dependents claimed in appropriate scenario (Scenario 2, if first return was Scenario 1)

In TaxSlayer

13. Modify the tax returns, "moving" the selected dependent from one taxpayer to the other.
    • Note any state-specific entries prior to changing filing status – because changing filing status will delete the State return (e.g., OR kicker).
    • To temporarily "remove" a dependent from a return, open dependent record and select the following:
      • Check if this qualifying child is NOT YOUR DEPENDENT
      • Check if you wish NOT to claim this dependent for Earned Income Credit purposes.
    • Re-do the state return(s) if deleted in TaxSlayer.

In Dependent Sharing Tool

14. Record the new refunds (amount owed) in the Scenario started in step 10.

15. Continue "moving" dependents – revising tax returns in TaxSlayer, recording data in tool – until all scenarios have been completed.
    • If more scenarios needed, click on "Add Custom Scenario." Document purpose of extra scenario(s).
16. "Recommendation" at the bottom of the tool shows which scenario provides the taxpayers with the highest combined refund (lowest amount owed.)
17. Print Taxpayer Copy of tool results and confirm with QR (or site coordinator) that everything looks right prior to reviewing results with the taxpayer.
18. Once a scenario is agreed upon with the taxpayers, make applicable notes regarding decision on printout.

In TaxSlayer

19. Finalize returns. "Remove" and/or "reenable" dependents for each taxpayer to match the selected scenario. Reconfirm:
    • Correct filing status used in each return
    • All dependent info is correct and each dependent is claimed exactly once.
    • All expected credits are taken and no credits taken incorrectly
    • Refunds match what was initially put in the tool