tax-aide miscellaneous credits pub 4012 – tab g & extenders tab pub 4491 – part 5 – lesson...
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TAX-AIDE
TAX-AIDE
Miscellaneous Credits
Pub 4012 – Tab G & Extenders TabPub 4491 – Part 5 – Lesson 27 and
Part 2 – Lesson 2 (Extenders)
TAX-AIDE
Other Non-Refundable Credits
●Retirement Savings Credit
●Nonbusiness Energy Property Credit
●Credit for the Elderly or Disabled
Nonrefundable – offset income tax only, no cash back
NTTC Training - TY 2015 2
TAX-AIDE
Retirement Savings Credit
●Ask if taxpayer made (or plans to make) contribution to a retirement account
●May not show on any tax document
● “Other” may include myRA contributions Eligible for retirement savings credit Can designate tax refund as a contribution
NTTC Training - TY 2015 3
TAX-AIDE
Retirement Savings Credit
● For qualifying taxpayers who made contributions to qualified retirement plan
●Review Decision Tree and Reminders (Pub 4012, pg G-6)
●Requires Form 8880 (Pub 4012, pg G-7)
●TaxWise computes credit – carefully verify data – W-2 Box 12 and 14(Pub 4012, pg D-6)
NTTC Training - TY 2015 4
TAX-AIDE
Retirement Savings Credit
● Form W-2 Retirement Savings Contribution Entry in block 12 will generate Form 8880
automatically if qualified Entries in block 14 require taxpayer
interview to see if entry qualifies for Form 8880 then check the box next to the entry
NTTC Training - TY 2015 5
TAX-AIDE
Form 8880
NTTC Training - TY 2015 6
Automatically added to tree if W-2 or IRA Wkt shows eligible contributions
TAX-AIDE
Retirement Savings CreditForm 8880
NTTC Training - TY 2015 7
Must complete section 4
TAX-AIDE
Retirement Savings Credit
● Form 8880 Line 4 – distributions received during three prior years
●Do not include distributions listed on Pub 4012 page G-7e.g., some government plans have required contributions and do not permit elective contributions – distributions from those plans should not be input
NTTC Training - TY 2015 8
TAX-AIDE
Elderly or Disabled Credit
●Taxpayer is 65 or over, or retired on disability pension
● Income limits – see Pub 4012, page G-11● Schedule R
TaxWise computes automatically if correct data input (including SSA/RRB on 1040 Wkt 1)
Must enter any nontaxable income not entered on the 1040 on Sch R, pg 2
NTTC Training - TY 2015 14
TAX-AIDE
Quality Review – Misc Non-Refundable Credits
●Confirm retirement contributions on W-2 or that are not on a tax document (IRAs) are properly captured
●Ensure energy credits don’t exceed cumulative limits
●Verify if elderly or disabled credit is computed correctly (this credit is very rare)
NTTC Training - TY 2015 15
TAX-AIDE
Summary with Taxpayer
●Review benefits of retirement contribution, if any
●Review benefit of Credit for the Elderly or Disabled, if any
●Review energy credits, if any
NTTC Training - TY 2015 16
TAX-AIDE
Miscellaneous Credits
NTTC Training - TY 2015 17
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