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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