1. 1 NY3 Instructor Training 2010 Review Topics Suggested by Instructors

2. 2 NY3 Instructor Training 2010 SS vs SSDI vs SSI Social Security Retirement payments Reduced benefits at 62 Full benefits at 65, 66, 67, ??? Financed through payroll tax Up to 85% MAY be taxable – it depends

3. 3 NY3 Instructor Training 2010 SS vs SSDI vs SSI Social Security Disability Insurance Payments to workers that become disabled Financed through payroll taxes Can collect until minimum retirement age Entered on line 7 as earned income After min retirement age – becomes retirement income Entered line 16

4. 4 NY3 Instructor Training 2010 SS vs SSDI vs SSI SSI Supplemental Security Income For disabled with little or no income Administered by Social Security Admin NOT TAXABLE Financed through “general revenues” Clients frequently ask about children’s SSI

5. 5 NY3 Instructor Training 2010 NYS Retirement Exemption NYS Subtractions – Line 26 NYS, local, or federal pension Includes State and City Universities State pension from outside NYS not eligible NYS or Federal pension received via ex-spouse How do you know?? Ask client If not obvious and client doesn’t know Give client opportunity to find out Assume not a full subtraction but eligible for 20K subtraction – line 29 Explain to client

6. 6 NY3 Instructor Training 2010 NYS $20K Income Exclusion Private Pension Non NYS, local or Fed pensions Is non gov’t pension received via ex-spouse eligible? No – not from employer – employee relationship

7. 7 NY3 Instructor Training 2010 1099-R – Taxable?

8. 8 NY3 Instructor Training 2010 1099-R – Taxable? Payer should provide taxable amount unless reasonably unable to If unable to – box 2a left blank

9. 9 NY3 Instructor Training 2010 1099-R – Taxable? For Pension -If box 2b “Taxable amount not determined” is checked – 2a is blank For Traditional, SEP, or SIMPLE IRA Payer not required to determine taxable amount Box 2a will be same as box 1

10. 10 NY3 Instructor Training 2010 1099-R – Taxable? If 2a is blank – Interview client Contributions Date of retirement Date started collecting Was it spouse’s pension Connection to NYS subtraction

11. 11 NY3 Instructor Training 2010 1099-R – Taxable? If client cannot provide adequate answers: Give client option to go away and come back with answers Assume all taxable Explain assumption to client Worst thing to happen – additional refund or owe less

12. 12 NY3 Instructor Training 2010 414HSUB This year TW will accept 414H Eligible for Retirement Savings Credit form 8880?

13. 13 NY3 Instructor Training 2010 414HSUB NOT eligible for 8880 Not a voluntary contribution

14. 14 NY3 Instructor Training 2010 Energy Credits Non-business energy property credit Improvements made for main home Covers energy efficient Windows Doors Insulation Some metal and asphalt roofs Cannot include prep and/or installation

15. 15 NY3 Instructor Training 2010 Energy Credit Non-business energy property credit Can include Heat pumps Air conditioners Water heaters Stoves that burn bio-mass Prep and installation

16. 16 NY3 Instructor Training 2010 Energy Credit Credit is 30% of eligible costs up to $1500 $1500 is total of 2009 & 2010 credit If took $1000 credit in 2009 – can only take up to $500 in 2010 Claimed on form 5695 Part I

17. 17 NY3 Instructor Training 2010 Energy Credit Residential Energy Efficient Property Credit Covers Solar Wind Geothermal Form 5695 Part II OUT OF SCOPE

18. 18 NY3 Instructor Training 2010 Form 5695

19. 19 NY3 Instructor Training 2010 Out of Scope