1. TAX-AIDE Miscellaneous Credits Pub 4012 – Tab G & Extenders Tab Pub 4491 – Part 5 – Lesson 27 and Part 2 – Lesson 2 (Extenders)

2. 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

3. 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

4. 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

5. 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

6. TAX-AIDE Form 8880 NTTC Training - TY 2015 6 Automatically added to tree if W-2 or IRA Wkt shows eligible contributions

7. TAX-AIDE Retirement Savings Credit Form 8880 NTTC Training - TY 2015 7 Must complete section 4

8. 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-7 e.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

9. TAX-AIDE Energy Related Improvements ● Note – solar electric, solar water heating, small wind energy, and geothermal heat pump property costs are out of scope NTTC Training - TY 2015 9

10. TAX-AIDE Residential Energy Credits ● Nonbusiness Energy Property Credit extended but with limits Lifetime limits  Cumulative $500 ($200 for windows) for all tax years after 2005 Individual item limits Improvements to Main Home only NTTC Training - TY 2015 10

11. TAX-AIDE Residential Energy Credits Placed in service in current tax year Energy efficient windows, doors, insulation, roof (materials only, not installation) Heating, ventilating, and air conditioning, hot water heaters (materials and installation) NTTC Training - TY 2015 11 Pub 4012, page G-10

12. TAX-AIDE Residential Energy Credits ● Link from 1040 line 52 to Form 5695 Part II on Page 2 ● Form 5695 Part I on page 1 (solar electric, solar water heating, small wind energy, and geothermal heat pump) – Out-of-scope NTTC Training - TY 2015 12 Pub 4491, page 2-7 Pub 4012

13. TAX-AIDE Form 5695, Pg 2 NTTC Training - TY 2015 13 Need prior year returns

14. 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

15. 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

16. 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

17. TAX-AIDE Miscellaneous Credits NTTC Training - TY 2015 17 Questions? Comments?