VITA/TCE Quality Site Requirements - Tax-Aide Print Pages 2017-12-29... · 11 All taxpayers using the services offered through the Volunteer Income Tax Assistance (VITA) and Tax Counseling

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All taxpayers using the services offered through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) Programs should be confident they are receiving accurate tax return preparation and quality service. The purpose of the ten Quality Site Requirements (QSR) is to ensure quality and accurate tax return preparation and consistent site operations. The QSR are required to be communicated to all volunteers and partners to ensure IRS and partner mutual objectives are met. The 10 requirements are listed below.

1. Certification2. Intake/Interview & Quality Review Process3. Photo ID and Taxpayer ID Numbers4. Reference Materials5. Volunteer Agreement6. Timely Filing7. Civil Rights8. Site Identification Number (SIDN)9. Electronic Filing Identification Number (EFIN)10. Security

VITA/TCE Quality Site Requirements

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• Certification: Complete training, prepare at least four returns assessed by an instructor, pass required tests with a score of 80% or better, and sign Form 13615 Volunteer Standards of Conduct. Understand that out-of-scope returns must be referred to a professional preparer. • Volunteer Agreement: Pass Standards of Conduct and Intake/Interview & QR tests. A completed Form 13615 Volunteer Standards of Conduct Agreement, signed by the volunteer and by an approved official, (or a list of certified volunteers) must be at the site when working, retained at district level to end of year. • Volunteers wear name badge on-site. • Photo ID & taxpayer ID Numbers: Have all taxpayers show photo ID and SS cards or ITIN docs for everyone on return (in lieu of TIN document, may accept carryforward data from last year’s return matched with this year's documents). • Intake/Interview & Quality Review (QR) Process: Use current year Form 13614-C, Intake/ Interview & Quality Review Sheet and ask probing question while reviewing it and supporting docs; make notes on form of new and changed information. Have a 2nd certified counselor conduct QR with taxpayer reviewing the return & all documents, asking probing questions to ensure correct application of tax law (not just verifying name & numbers) and noting new or changed info on the intake form. • The use of electronic documents is allowed with SMT approval. W-2's etc. can be accepted on a smartphone or tablet computer--if legible. Flash drives are not accepted due to the risk of a virus or malware. • Form 1098-T must be present before an American Opportunity Credit can be claimed for the following reasons: 1. The institution is required to complete it for each student--with only a few exceptions. 2. The form confirms enrollment status of at least 1/2 time and whether a graduate student. 3. In addition, the form identifies adjustments for prior years--which make the return OOS. If there are extenuating circumstances, and the student statement of account is available, exceptions can be made with LC approval and proper due diligence. • Taxpayer must be informed that s/he is responsible for accuracy of return. • Both taxpayer and spouse must sign Form 8879 to authorize e-file. • Security, Privacy and Confidentiality: Protect physical and electronic data and maintain taxpayer confidentiality. No taxpayer forms or info may ever be retained by volunteers. No taxpayer personal data included in an e-mail. • To assist in identifying and preventing identity theft, Tax-Aide recommends taxpayers e-file returns, even if not required. Since a $0 AGI return cannot be e-filed, enter $1 on Line 21 Other Income and describe as “IN ORDER TO EFILE.” This will also force a long Form 1040 to print.

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Selected Tax-Aide Return Preparation Policies

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For additional information refer to the Tax-Aide Policy and Procedures Manual and the Volunteer Policy and Procedures and the Local Coordinator presentations on the OneSupport Help Center.

www.irs.gov/pub/irs-pdf/p5166.pdf

www.irs.gov/pub/irs-pdf/p5166.pdf

https://www.irs.gov/pub/irs-pdf/p1084.pdf

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Notes

Cancellation of Mortgage Debt and Foreclosure Flowchart

Yes

No

Yes

Yes

No

No Yes Was a 1099-C issued?

Gain

No

Yes

No

No

No

No

Yes Did the taxpayer ever use the home in a trade or business or as rental property?

Yes

Loss

No

No

Footnote: Lender should provide either a corrected 1099-C with box 7 filled in or a 1099-A per IRS instructions.

Yes Yes

Yes

Yes

No

Yes

Was the 1099-C for the principal place of residence (home where you

ordinarily live most of the time)?

Any entry in box 3?

Did taxpayer keep the home?

Enter the smaller of Box 2 or the taxpayer’s basis in Part II (Basis

of nondepreciable property)

Sale Price = Box 2 on 1099-A

In the Income section, create a capital gains transaction. Add an entry with description “HOME FORECLOSED”.

Enter sale price using above info. Enter cost or basis as usual.

Cannot claim a loss on personal residence. Enter the loss as a

positive number in the adjustment box with “Nondeductible loss other

than a Wash Sale” for the explanation.

May be able take the principal residence exclusion ($250K or $500K MFJ) If so,

enter the exclusion (as a negative number) in the adjustment box with

“Exclude Some/All of the Gain from the Sale of Your Main Home” for the

explanation.

Out of Scope

Was a 1099-A issued?

Is there an entry in box 7 on 1099-C?

Was box 5 on the 1099-A checked?

Sale Price = lesser of Box 2 or Box 4 on 1099-A

Sale Price = Box 7 on 1099-C

Was there a gain or a loss?

Out of Scope

Done

-Open Form 982 -Check the 5th box (principal residence) -Enter the amt from box 2 from 1099-C

See footnote

Rev. 05/2016

Did the taxpayer ever use the home in a trade or business or as rental property?

Code A in box 6?

Was this mortgage: • Secured by the taxpayer’s principal

residence,• Used to buy, build or substantially

improve taxpayer’s principal residence,• Not used for any other purpose and• Less than $2 MM ($1 MM if MFS)?

Expired December 31, 2016

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12/29/2017

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B-15

Entering Basic Information (continued)

ID Theft PINs are entered in the Miscellaneous Forms Section.

Note: If the taxpayer or spouse is deceased, check the appropriate box from the list and enter the date of death when prompted. When you print the return, the tax software prints the Deceased and the date of death next to the deceased person’s name at the top of Form 1040 page 1, as required by the IRS.

Next is an input screen that gathers the taxpayer’s personal information.

TaxSlayer Navigation: Basic Information>Personal Information

Checking the taxpayer is deceased box will generate a Date of Death box, which must be completed. Once com-pleted, click ‘Continue’ at the bottom of the page to proceed.

Verify spouse’s last name with Social Security card. If different from the taxpayer’s, correct the auto-filled entry.

Enter spouse’s SSN. If the taxpayer is filing MFS and does not know the SSN of the spouse, enter the spouse’s SSN

as 111-00-1111. You may leave the spouse’s DOB blank.

Without the spouse’s SSN, the return must be paper-filed.

This section is important for calculation of filing status, exemption, standard deduction, Presidential Election Fund, and military status.

You must input birth date. Include spouse if filing a joint return. Enter digit(s) or use dropdown boxes to select Month, Date and Year.

Check the box if the taxpayer between the ages of 18 and 24 is a full-time student during some part of each of any 5 calendar months of the year. See Tab C for full definition of student.

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Personal Information

Taxpayer's Information H

Title * Primary First Name * Ml

Suffix (Jr, Sr, etc.)Last Name *T

Social Security Number *

Date of Birth *

MM DD YYYY

Occupation *

Spouse's Information

Title * Spouse First Name * Ml

T

Suffix (Jr, Sr, etc.)Last Name *

<Social Security Number *

Date of Birth

MM * DD YYYY *Occupation *

< Filing Status Cancel I Continue

Check here if the Taxpayer can be claimed as a dependent on someone else's return.

Check here if Taxpayer was over age 18 and a full-time student at an eligible educational institution.

Check here if Taxpayer is blind.

Check here if Taxpayer is deceased.

Check here if the Taxpayer wishes to contribute $3 to the Presidential Election Campaign Fund.

Check here if the Taxpayer or Spouse served in a Combat Zone during the current tax year.

Check here if Taxpayer was a nonresident alien for any part of the year.

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Do not mark this box if taxpayer or spouse is married to a citizen or resident alien and they have elected to treat the nonresident alien as a resident alien.

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B-16

Entering Basic Information (continued)

Note 1: Resident State Return - This option will allow you to select the taxpayer state of residency. Once the state has been selected, clicking on Continue will prompt the state questions. The program will create the state return based on the state selected. If there isn’t a state return to complete, choose None from the list. The program will automatically transfer basic information into the state return for you. Any additional states to be attached will be selected within the State Return section of the return.

Dependent/Qualifying Child Information:

Dependents or Qualifying Person(s) are entered on the next screen. If the taxpayer is claiming dependents or other qualifying persons on their tax return, select the YES button to begin filling in applicable information pertaining to each dependent. To bypass the dependent entry menu, select the NO button.

Always ask for at least one telephone number. The daytime phone will appear on the printed return. Enter area code first.

See Note 1 for residency status.

Entering the ZIP code will cause the city and state to auto-fill. Correct the city name if needed.

Check the Military and foreign address boxes if they apply.

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Check here if foreign address *<Address (Number and Street) *

123 Sample Drive

Apartment

City, Town, or Post Office *

Augusta

State *Georgia

Zip Code *<30904

Residency Status *<Full-Year Resident of This State

Mobile Phone

( 800 ) 123 4567

Daytime Telephone Number *( 800 ) 123 M-4567

Cancel I Continue

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After entering personal info, always click continue

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If taxpayer lived in more than one state during 2017, enter the state he or she lived in with the highest federal poverty level (FPL). That FPL will be used to make ACA calculations.

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TIP on Tips: If the taxpayer earned tips that weren’t reported to the employer, enter in the Unreported Tips box. This will add Form 4137 to the return. If the taxpayer received tips that weren’t reported to the employer because they were less than $20 a month, go to other taxes, select Form 4137 and also enter the amount there. If a taxpayer wishes to use their tip log instead of allocated tips in box 8, leave box 8 blank and report it as unreported tips within the W-2.

Form W-2 ALERT!

IRS requires that information on electronically filed Form(s) W-2 match the printed Form(s) W-2 exactly if possible. For example, the the name cannot be changed, and the software will not accept special characters.

A taxpayer with multiple Forms W-2 could possibly have a different address on several, if not all, of the Forms W-2.

Check them carefully; the change must be made on every Form W-2 that is different from the current address

Be sure to enter every item from the taxpayer’s original W-2 – key what you see.

Review box 2 and box 17 to ensure tax withheld was entered and is correct.

The entries in boxes 3, 4, 5, 6 and 16 will auto-populate based on the Box 1 entry. If the figures don’t match taxpayer’s Form W-2, correct the data so that it matches the information on Form W-2.

Form W-2 Instructions (continued)

If there is an entry in Box 10, Form 2441 must be completed.

Be sure to complete Box 11 if there is an entry on the original Form W-2. An entry here may indicate that the taxpayer is receiving deferred compensation earned in a prior year.

Wages

2 Federal Tax Withheld1 Wages, Tips

$ $

4 Soc. Sec. Tax Withheld3 SS Wages

$ $

5 Medicare Wages 6 Medicare Tax

$ $

8 Allocated Tips7 SSTips

$ $

10 Dependent Care9

Reserved $ <

11 NonQual Plan Unreported Tips

$ $

Form W-2 Instructions (continued)

For Box 12 choose the code from the drop-down menu and enter the dollar amount. If there are more than 4 items in box 12, enter the items that impact the tax return (Code D, E, G, P, Q, T, W, AA, BB, EE).

Be sure to check box 13 as indicated on Forms W-2. This is important in calculating the deductibility of IRA contributions.

Third party pay, Box 13, is sick pay reportedin Box 1 and is taxable. Nontaxable sickpay is in Box 12, Code J.

If Box 16 and Box 17 are both blank, leave Box 15 blank

If the Form W-2 shows withholding from more than one state, click the “Add State” button to add the additional information.

Form W-2 Reference Guide for Common Box 12 Codes

A Uncollected social security or RRTA tax on tips B Uncollected Medicare tax on tips C Taxable cost of group-term life insurance over

$50,000 (included in Boxes 1, 3 (up to social security wage base), and 5)

D* Elective deferrals to a section 401 (k) cash or deferred arrangement*

E* Elective deferrals under a section 403 (b) salary reduction agreement*

G* Elective deferrals and employer contributions (including non-elective deferrals) to a section 457 (b) deferred compensation plan*

H Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan. See "Adjusted Gross Income" in the Form 1040 instructions for how to deduct.

J Nontaxable sick pay

M Uncollected social security or RRTA tax on taxable cost of group-term life insurance over $50,000 (former employees only). See "Other Taxes" in the Form 1040 instructions.

P Excludable moving expense reimbursements paid directly to employee

Q Nontaxable combat pay (Military certification)R Employer contributions to Archer MSA (out of scope) T Adoption benefits (Out of scope) W Employer contributions (including amounts the

employee contributes through a cafeteria plan) to your health savings account (HSA certification); will require Form 8889

AA* Designated Roth contributions under a section 401(k) plan*

BB* Designated Roth contributions under a section 403 (b) plan*

DD Cost of employer-sponsored health coverage EE* Designated Roth contributions under a

governmental section 457 (b) plan*

*Codes D, E, G, AA, BB, and EE indicate elective (voluntary) contributions which qualify for Retirement Savings Credit. Seepage G-9.

D-6

Select from the list. If the amount is eligible for the retirement saver’s contributions credit (a voluntary—not mandatory—contribution), select Retirement (Not in Box 12)- Carry to Form 8880.

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12 13 14Statutory Employee

Retirement Plar

Third Party ray ^

Code Amount Code A/

$ T $a

+add another row+add another row

State Information | cmr |15 State Name 17 St Tax PaidState EIN 16 St Wages

- Please Select - $

18 Local Wages 19 Local Tax Paid 20 Local Name

$ $

X Cancel Continue

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CAUTION: Making an entry in Box 12 does not alter Boxes 3 or 5.

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If statutory employee is marked, employment taxes are withheld by employer, but taxpayer will report income and deduct expenses using Schedule C. Re-enter income as statutory income on Schedule C Income screen. Also enter related expenses. Do not mix statutory employee income with other income on the same Sch C.

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If W-2 only reporting nontaxable sick pay (Code J in Box 12 and 0 in Box 1, no need to include on return unless there is withholding. If there is withholding, enter it under Payaments & Estimates, Other Federal Withholding.)

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Permitted benefits under a qualified small employer health reimbursement arrangement (see ACA in Tab H)

D-15

Sometimes income reported in box 7, Nonemployee compensation is related to a hobby - an activity that isn’t engaged in for profit. Activities not for profit are out of scope. See Pub 525, Taxable and Nontaxable Income, for more complete information about not-for-profit activities.

Self-employment income generally appears in box 7, Nonemployee compensation. If there is income reported in other boxes and it was earned by the business, it should also be reported as other business income on the Schedule C.

Form 1099-MISC (continued)

Note: There is usually no income tax withholding on a Form 1099-MISC. But always double check to make sure!

Some income that isn’t self-employment, such as prizes and awards, is reported in box 3, Other income. This income is reported on Form 1040, line 21.

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1099-MISC Information

1 Rents

$

2 Royalties

$

3 Other income

$ 4-

4 Federal income tax withheld

4$

5 Fishing boat proceeds

$

6 Medical and health care payments

$

7 Nonemployee compensation

$ 4-

8 Substitute payments in lieu of dividends or interest

$

9 Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient) for resale

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The guidance from IRS SPEC regarding income reported on a Form 1099- MISC is to: 1) Add a Form 1099-MISC in TaxSlayer for each 1099-MISC form received by the taxpayer, and 2) Enter the amount in the TaxSlayer line for each form that directs the income to the correct Schedule or line on the Form 1040 even if that is not the box on the paper Form 1099-MISC. Examples: • Box 2 Royalties for oil and gas – enter as Royalties so the income goes to Schedule E • Box 2 Royalties that are a result of self-employment, e.g., writers, singers, etc. – enter as Nonemployee compensation so income goes to Schedule C • Box 3 Other Income that isn’t reported elsewhere such as prizes or awards – enter as Other income so income goes to line 21 • Box 3 Other Income that is mis-reported self-employment income – enter as Nonemployee compensation so income goes to Schedule C • Box 7 Non-Employee Compensation that is not really a business such as an honorarium for a speech where there is no continuing relationship and no expectation of ever doing it again – enter as Other income so income goes to line 21.

D-16

Form 1099-MISC (continued)

10 Crop insurance proceeds

$

11 Foreign tax paid

$

12 Foreign country or U.S. possession

13 Excess golden parachute payments

$

14 Gross proceeds paid to an attorney

$

15a Section 409-A Deferrals

$

15b Section 409-A Income

$

State Information 1

Clear

16 State tax withheld

$

18 State income

$

17 State

- Please Select -

Payer's State No.

Clear State Information 1

State Information 2

Clear

16 State tax withheld

$

18 State income

$

State

- Please Select -

Payer's State No.

D-19

Schedule C - Questions about your Business

Business Expenses You Can Deduct You may also be able to deduct the following expenses. See Pub 535 to find out whether you can deduct them

Business Expenses You Cannot Deduct

• Advertising.• Bad debts• Bank fees.• Donations to business

organizations.• Education expenses.• Energy efficient commercial

buildings deduction expenses.• Environmental cleanup costs.• Insurance• Ιnterest on debts related to the

business.• Interview expense allowances.• Legal and professional fees• Licenses and regulatory fees.• Moving machinery.• Outplacement services.

• Penalties and fines you pay forlate performance ornonperformance of a contract.

• Pension plan• Rent• Repairs that keep your

property in a normal operatingcondition.

• Repayments of income.• Subscriptions to trade or

professional publications.• Taxes• Travel, meals & entertainment

related to the business (subjectto limitations)

• Utilities.• Vehicle mileage.

You usually cannot deduct the following as business expenses. For more information, see Pub 334.

• Bribes and kickbacks.• Charitable contributions.• Demolition expenses or losses.• Dues to business, social,

athletic, luncheon, sporting,airline, and hotel clubs.

• Lobbying expenses.• Penalties and fines because

you broke the law• Political contributions• Repairs that add value to your

property if more than deminimis $2,500

To be in scope, the accounting method must be Cash and there can be no inventory, no cost of goods sold, no employees, no business use of the home, and no depreciation (completing Form 4562).

TaxSlayer navigation: Federal Section>Income>Profit or Loss from a Business> Questions about the Operation of Your Business; 1040 View Line 12

In most cases, the taxpayers do materially participate in the business. This means that the taxpayer ran the business and did the work.

If the taxpayer has a business loss carried over from another tax year or is required to file a Form 1099, the tax return is out of scope.

NTTC 12/17/2017

Questions about your Business

Accounting Method * ® Cash

O AccrualO Other

Method used to value closing inventory * O CostO Lower of cost or market® Not Applicable

Check here if there were any changes in determining inventory.

Check here if this is the first Sch. C filed by you for this business.

Check here if you "materially participated" in the operation of this business during the taxyear.

This box must be checked to allow a net loss on your return.

Prior year unallowed loss (ONLY enter an amount if current year's activity is 5a net profit.)

Check here if you made any payments in 2016 that would require you to file Form(s) 1099.

Check here for Qualified Joint Venture. (Ownership between Taxpayer and Spouse must be50/50. If you are filing Business Use of Home deductions or using the Clergy Worksheet,you will need to file separate Schedule C forms, one for each spouse)

Check here to Prorate Expenses for Minister/Clergy.

D-20

Schedule C General Expenses

Schedule C Expenses

All allowable and documented expenses must be reported on Schedule C. If there are deductible expenses as described in Pubs 4491 and 535 that are out of scope for Tax-Aide, the return is out of scope for Tax-Aide and the taxpayer must be referred to a professional tax preparer – there is no option to disregard allowable and documented expenses.

See also OneSupport Help Center>Tax Training>Policy/Tax Law>Schedule C Guidelines Summary for more information about Schedule C income and expenses.

The following expenses are out of scope: Contract Labor, Depletion, Employee benefit program, Health Insurance, Mortgage interest, Pension and profit sharing, and Wages.

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

Note: Car and truck expenses aren’t entered on this page. Those expenses are entered on a separate page.

TaxSlayer navigation: Federal Section>Income>Profit or Loss from a Business>General Expenses; 1040 View Line 12; Keyword “C”

Assets or repairs to assets that cost less than $2,500 per item or invoice can be deducted without depreciating it. Enter it on the Other Expense page, labeled "de minimis asset."

• Vehicles rented formore than 30 daysare subject tospecial limitationrules and are outof scope.

• Rentals of otherbusinessequipment aredeductible and inscope.

NTTC 12/17/2017

Schedule C - ExpensesAdvertising /Pension and profit sharing y$ $

Contract Labor Rent or lease of equipment$ $

Commission and fees Rent or lease of property$ $

Depletion Repairs and maintenance$ $

SuppliesEmployee benefit programs $ $

Health Insurance(will carry automatically toworksheet)

Taxes and licenses$ $

Travel $

Meals and entertainment (50%)Enter 100% of the expenses.

Insurance(other than health)

$$

Meals and entertainment (80%)Enter 100% of the expenses.

Mortgage interest $$

Other interest $Utilities $

Legal and professional services $Wages(less employment credits)

$Office expense $

ContinueX Cancel

D-27

OUT OF SCOPE

Adjustment CodeIF…

You received a Form 1099-B or 1099-S (or substitute statement) as a nominee for the actual owner of the property.

N

You sold or exchanged qualified small business stock and can exclude part of the gain. Q

You can exclude all or part of your gain under the rules explained in the Schedule D instructions for DC Zone assets or qualified community assets.

X

You are electing to postpone all or part of your gain under the rules explained in the Schedule D instructions for any rollover of gain (for example, rollover of gain from QSB stock or publicly traded securities).

R

You had a loss from the sale, exchange, or worthlessness of small business (section 1244) stock and the total loss is more than the maximum amount that can be treated as an ordinary loss.

S

You disposed of collectibles (see the Schedule D instructions). C

Adjustments to Basis in TaxSlayer–TY2017 (continued)

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Sale of Property Inherited:

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The taxpayer is responsible for providing the basis and acquisition date. Property inherited in 2010 may have a carryover basis (the decedent’s basis, not fair market value on the date of death) if the estate filed an estate tax return and made the carryover election. In that case, the taxpayer should present Form 8939 with the information. In all other cases, the basis will be the fair market value on the date of death.

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Sale of Property Received as a Gift:

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Sale of gifted property is entered in the Capital Gain Worksheet, with the basis and acquisition date provided by the taxpayer. If the value on the date of gift is less than the donor’s basis, it is used to measure a subsequent loss. If the value on the date of gift is more than the donor’s basis, the donor’s basis is used to measure a subsequent gain. It is possible that there is no gain and no deductible loss on the disposition. The return is out of scope if the taxpayer cannot provide the basis.

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Sale of Bonds:

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• A bond that matured or was sold with no gain or loss is entered on the Capital Gain Worksheet with [the same amount for sales price and for cost basis]. • If the sale of a bond is reported on a brokerage statement with a gain or loss but no ordinary income, enter it on the Capital Gain Worksheet as reported. • If there is ordinary income associated with the sale, the return is out of scope.

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Disposition of Worthless Securities

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If a security is deemed totally worthless (zero value) on the brokers’ statement, enter it on the Capital Gains entry screen and use the alternate options "Worthless" for the date sold.

Capital Gains or Losses Sale of Main Home

Report the sale or exchange of your main home as a Capital Gain or Loss IF: • You can’t exclude all of your gain from income, or• You received a Form 1099-S for the sale or exchange.

Generally, if you meet the following two tests, you can exclude up to $250,000 of gain. If both you and your spouse meet these tests and you file a joint return, you can exclude up to $500,000 of gain (but only one spouse needs to meet the ownership requirement in Test 1). • Test 1. During the 5-year period ending on the date you sold or exchanged your home, you owned it for

2 years or more (the ownership requirement) and lived in it as your main home for 2 years or more (the use requirement). *Military members may be able to suspend the 5-year period while serving on qualified official extended duty.

• Test 2. You haven’t excluded gain on the sale or exchange of another main home during the 2-yearperiod ending on the date of the sale or exchange of your home.

If you have a gain that can’t be excluded, it is taxable.

If you are required to report the sale AND IT RESULTS IN A GAIN, go to the Sale of Home Worksheet.

D-28

TaxSlayer navigation: Federal Section>Income>Capital Gains and Losses>Sale of Main Home; 1040 View Line 13; Keyword “CAP”

Death of spouse. If you sell your home after your spouse dies (within 2 years after your spouse dies), and you have not remarried as of the sale date, you can count any time when your spouse owned the home as time you owned it, and any time when the home was your spouse’s residence as time when it was your residence. You can exclude up to $500,000 of gain if, just before your spouse's death, both spouses met the use requirement and at least one spouse met the ownership requirement of Test 1, and both spouses met Test 2. If this applies and the sale must be reported, you should enter the additional allowable exclusion using the capital gain or loss screen with the code "H."

Enter the purchase date, purchase price, sale date, and sales price in the Sale of Home Worksheet (you will enter improvement and other adjustments to basis on the next screen).

Enter the number of days you lived in and number of days you owned the home and mark the Maximum Exclusion box if you meet both tests above.

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Sale of HomeBasic Info about the SaleDate of purchase * MM g DD g

YYYY QPurchase price * $

Date of sale * MM g DD gYYYY g

Sale price * $

Allowable Depreciation related to the business use or rental ofthe home

$

Depreciation taken after 05/06/1997 $

Info about your homeHow many days in the last 5 years was the home your mainhome?

How many days in the last 5 years did you own your home?

Check here if you received the First-time Homebuyers Credit Althe credit in 2008 OR you did NOT meet tbto exclude ropaymant Ml I Ilf

eivedownership requirements

Q Check here if you qualify for the Maximum Exclusion or the Reduced MaximumExclusion.

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Main home is where taxpayer lives most of time (must have cooking, sleeping & bathroom facilities).

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D-35

Form 1099-R (continued)

Box 9b shows the total employee contributions and may be needed if Box 2 has no entry – usually requires Worksheet (see Box 2a).

Box 7 is a required entry – enter exactly as shown on document. If IRA/SEP/Simple is marked, check to enter exactly as on document. See Distribution Codes Chart in this tab.

Box 5 on the document may be current year’s amount of employee contributions or insurance premiums. If Box 5 is the same as Box 1, none of the distribution is taxable. If the payer has calculated the taxable amount of the pension in Box 2, generally the difference between Boxes 1 and 2 will appear in Box 5. If Box 5 is the amount of health insurance premiums, (typically only on a CSA 1099-R) you mustMANUALLY carry the amount to the Schedule A, Itemized Deductions.

NTTC 12/17/2017

5 Employee contributions or insurance premiums

> $State *

6 Net unrealized appreciation in employer's securities- Please Select -$

Zip Code *7 Distribution Code(s) *

>

Recipient Information IIRA/SEP/Simple

8 Other (Not collected)Check here if foreign address

Address (Number and Street) * 9a Your percentage of total distribution

%

9b Total employee contributionsCity, Town, or Post Office *$>

10 Amount allocable to IRR within 5 yearsNot needed for e-filing

State *- Please Select -

Zip Code *

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Distribution from IRA if Any Contributions Were Not Deductible (would be partially taxable) • Taxpayer should keep running record of nondeductible contributions and remaining basis at end of each year • Use the Forms Search Box to go to Form 8606 entry screen and the Nondeductible Contributions section. • Enter total basis for prior year (from prior year Form 8606 line 14), year-end value (provided by taxpayer or Form 5398 box 5 amount) and amount of distribution. Enter any late contributions and outstanding rollovers as well. • Look at the PDF of Form 8606 and find the taxable amount of the distribution on Line 15. • Enter the taxable amount in the 1099-R Box 2a. • May need a second Form 8606 if each spouse has basis in their IRAs or if it is an inherited IRA (basis tracked separately). Form 8606, Part III, is out-of-scope.

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If you enter a foreign address and the country does not use postal codes, enter 0 (zero) for the postal code.

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D-36

Taxable Amount Not Determined(Special Circumstances)

TaxSlayer Navigation: Federal Section>Income>IRA/Pension Distributions>Add or Edit a 1099-R>Calculate taxable amount; 1040 View Line 15a, 15b, 16a or 16b; or Keyword “1099-R”

Distributions Used To Pay Insurance Premiums for Public Safety Officers

If you are an eligible retired public safety officer (police/law

enforcement officer, firefighter, chaplain, or member of a rescue

squad or ambulance crew), you can elect to exclude from income

distributions made from an eligible retirement plan that are

used to pay the premiums for accident or health insurance or

long-term care insurance. The premiums can be for coverage

for you, your spouse, or dependents. The distribution must be

made directly from the plan to the insurance provider. You can

exclude from income the smaller of the amount of the insurance

premiums or $3,000. You can only make this election for amounts

that would otherwise be included in your income. The amount

excluded from your income can’t be used to claim a medical

expense deduction.

Enter the amount of PSO health insurance premiums paid from the pension (up to $3,000).Deduct any amount of premiums paid in excess of $3,000 as an Itemized Deduction.

entry is required.

If the retired PSO does not need a simplified method calculation, select the PSO Distribution.

For the simplified general rule worksheet, click here.If the taxpayer has both retired public safety officer (PSO) health insurance exclusion and simplified method features, select the simplified general rule worksheet.

NTTC 12/17/2017

Calculate Taxable Amount m m m mmm

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Public Safety Officers Distribution Begin

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Public Safety Officers DistributionPublic Safety Officer Exclusion for Health Insurance Premiums

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For the simplified general rule worksheet, click here. If the taxpayer has both retired public safety officer (PSO) health insurance exclusion and simplified method features, select the simplified general rule worksheet.

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The following screen is displayed when "Calculate Taxable Amount" is selected.

Form 1099-R Simplified Method (Cont.)

NTTC recommends using the annuity calculator at cotaxaide.org/tools. (Complete all boxes in yellow fields)

Form 1099-R Entry Variations Example 1 (most common)—An amount is shown in Box 1, Box 2a is blank or the same amount as Box 1, the distribution code in Box 7 is “7,” and nothing is entered in Box 5 or 9b. • The amount in Box 1 is fully taxable. TaxSlayer will transfer the amount in Box 1 to Box 2 and to

Form 1040 Line 16b.

Example 2—An amount is shown in Box 1, Box 2a is blank, the distribution code is “7,” and an amount is entered in Box 9b. • The Simplified Method Section will have to be completed to determine what portion of the amount

from Box 9b will be tax free. Click on the text below Box 2a and begin “Simplified General Rule Worksheet.” See “Form 1099-R Simplified Method” in this Tab. When you have completed the worksheet, return to the 1099-R and complete it. TaxSlayer will transfer the taxable amount to Form 1040 Lines 16a and 16b.

Continued on next page

D-38.1

TaxSlayer navigation: Federal Section>Income>IRA/Pension Distributions>Add or Edit a 1099-R> Calculate taxable amount; 1040 View Line 15 or 16; or Keyword “1099-R”

Enter the plan cost (shown in Box 9b of Form 1099-R)

Enter spouse’s birthdate only if the annuity includes survivor benefit. • For a joint and survivor

annuity that starts AFTER the death of the employee, enter the spouse’s birthdate as the annuitant’s.

• For a joint and survivorannuity that starts BEFORE the death of either beneficiary, continue with the same exclusion amount after the first death.

Click to calculate, print the resulting chart for the taxpayers’ envelope, and enter the taxable amount in Box 2a of Form 1099-R.

NTTC 12/17/2017

Annuity/Pension Exclusion Calculator(version 10.08, 8/31/2017) Clear and reset calculator

Taxpayer's name and pension typefor tax year | 2016 Check if a public safety officer pension ©

r Check if a disability pension ©Age^ fannuityEnter dates as MM/DD/YYYY

ZAnnuity start date

xr Died in 2016Annuitant' s birthdate

(N/A for annuity before 1998)Spouse' s birthdateCombined age for survivor annuity Not used

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Total annuity contributionsExclusion months in 1st yearTotal months to be excludedMonthly exclusionFirst year exclusionExclusion for remaining yearsFinal year exclusion I

Click here to CalculateEnter taxpayer data in yellow rowsjhejj^

Form 1099-R Entry Variations (Cont.) Example 3—An amount is shown in Box 1 and the taxable amount (other than zero) is entered in Box 2a with a distribution code of “7.” There may or may not be an entry in Box 5. Generally, the amount in Box 2a is the amount in Box 1 minus the amount in Box 5. • The payer has made things easy by providing the taxable amount. Enter the printed amount

from Box 2a into Box 2a on the screen. TaxSlayer will enter the taxable amount on Form1040 Line 16b.

Example 4—An amount is shown in Box 1, Box 2a is blank or zero, an amount is in Box 5, and the distribution code is “7.” • Except in the case of a CSF or CSA 1099-R, the amount in Box 5 should be nontaxable

and therefore should be subtracted from Box 1 and the result entered in Box 2a.

Example 5—An amount is shown in Box 1, Box 2a is blank or zero, Box 2b “Taxable amount not determined” is NOT checked, and the distribution code is “7” or “3.” • If this is a disability pension for an on-the-job injury and the taxpayer believes it is not

taxable, enter zero in Box 2. If the retiree is below the employer's minimum retirement age,check the box so the disability pension is reported as wages.

Example 6--Box 2b and IRA/SEP/SIMPLE boxes are both checked. • Ask taxpayer if any non-deductible contributions were made to any IRA. If so, see D-35.

Forms CSF 1099R and CSA 1099R Form CSA 1099R is used to report a federal government retiree’s pension income. The CSF 1099R is used to report spousal survivor benefit income.

D-38.2

If there is an amount in Box 2a, use it as the taxable pension.

If there is no number in Box 2a, use the number in Box 9b to start the calculation of the nontaxable amount of the pension using the Simplified Method Worksheet. On a 1099R from OPM, any number in Box 5 is ALWAYS health insurance premiums and

needs to be entered on Schedule A as a medical deduction if the taxpayer is itemizing.

However, there may be other insurance premiums not included in Box 5. If the retiree is having dental, vision or long term care insurance premiums deducted from the pension, these amounts will not be included in Box 5. They can be found on a Form RI 20-53, which the annuitant should have received from OPM in February of the tax year.

NTTC 12/17/2017

t >MH No 1545-011*FM IOWHPAID OFFICE OF PERSONNEL MANAGEMENTov RETIREMENT SERVICES PROGRAMBY P O BOX 45

BOYERS.PA 16017-0045

STATEMENT OF ANNUITY PAID 2017Copy C - For annuitant's record* .

This information I* being furnishedto the U S Internal Revenue

Rcurrmcnt or Profit -/PUm, IRAv

1PAYER'* Federal Identification52*6083699

Recipients II)No. ( Annuitant )

12345-6789Aocounl number IRetirement Claim No.)

CSA123456. Gross distribution

25000.005. Eaployw Contribtion*''Designated ROTH Contribution*or Insurance Premiums

2a. Taxable amountPAID 23000.00TO Tom T Jones123 Main StreetJoppa, MD 21085

4 Federal Income Tax Withheld3750.002964.00

Distribution / odds >7 - NONDISABILITY

State I 10. State Income Tax W ithheid2000.00P.1D

<*> Total Ei x Contributions99999.00

Staie 2 10. State Income Tax W ithheldNONE

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Form 1099-R: Rollovers, Disability under Minimum Retirement Age, and IRA Conversions

Rollovers • A taxpayer should not receive a Form 1099-R for a trustee-to-trustee transfer from one IRA to another, but

should receive a Form 1099-R for a trustee-to-trustee direct rollover from an employer qualified plan to an IRAwith code G.

• A rollover that involves a distribution of funds to the participant isn’t taxable if the funds are deposited into anIRA (or the same IRA) or an employer plan within 60 days. Form 1099-R will have either a code 1 or code 7.

Subtract the rollover amount from the gross distribution (Box 1) and enter the difference as the taxable amount in Box 2a.

• A participant is allowed only one rollover from an IRA to another (or the same) IRA in any 12-month period,regardless of the number of IRAs owned. However, you can continue to make unlimited trustee-to-trusteetransfers between IRAs because it is not considered a rollover.

• Sometimes a distribution includes both a regular distribution (generally taxable) and a rollover (generally non-taxable).

• The Form 1099-R Rollover or Disability section is used to input the amount that won’t be taxed, and Box 2aneeds to be adjusted.

• If taxpayer inadvertently missed the 60-day rollover deadline for one of several reasons, he can submit acertification to the trustee, and the amount can be considered a rollover on his tax return. See Page D-43 fordetails.

Note: The above applies to pre-tax accounts (e.g. traditional IRAs) and to post-tax accounts (e.g. Roth IRAs) within each group. If rolling or converting from pre-tax to post-tax, the amount will generally be taxable.

Conversion from a Traditional IRA to Roth IRA A Form 1099-R for a Traditional to Roth IRA Conversion should have Code 2 in box 7 if the participant is under age 59½ or Code 7 if the participant is at least age 59½ and the IRA/SEP/SIMPLE box checked. The amount converted is taxable income, but a Code 2 distribution is not subject to the additional 10% early distribution tax.

1. Enter the amount converted in Box 1 and Box 2a on the Form 1099-R entry page.

2. Search for Form 8606 and enterthe amount converted in thesixth box.

3. If the traditional IRA had a basis, also complete Part I of Form 8606. See page D-35.

D-39

Rollover: If any portion was rolled over check to bring up screen to enter the amount.

Even if Box 7 is Code G, this entry must be made.

Also, enter the difference between the gross distribution (Box 1) and the rollover amount as the taxable distribution in Box 2a.

Disability: Check if Code 3 is in box 7 and the taxpayer is disabled and under the minimum retirement age* of the employer’s plan. This will put this disability income as wages on Line 7 of Form 1040, instead of Line 16. It will be considered earned income in the calculation of some credits.

*Minimum retirement agegenerally is the age at which you can first receive a pension or annuity if you aren’t disabled.

NTTC 12/17/2017

Rollover or Disability

0 Check here if all/part of the distribution was rolled over, and enter the rollover amount.

Rollover Amount *$

Check here to report on Form 1040., Line 7 (Distribution code must be a ,3n)

Net amount converted from traditional. SEP.and SIMPLE IRAs to Roth tRAs in 2017

S

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Basis of distributed property. The basis of property distributed from a Roth IRA is its fair market value (FMV) on the date of distribution, whether or not the distribution is a qualified distribution.

You don’t include in your gross income qualified distributions or distributions that are a return of your regular contributions from your Roth IRA(s).

Distributions from a Roth IRA are tax free and may be excluded from income if the following requirements are met:

• The distribution is made after the 5-year period beginning with the first day of the first taxable year for which acontribu tion was made to a Roth IRA set up for the taxpayer’s benefit, and

• The distribution is:

- Made on or after age 59½, or

- Made because the taxpayer was disabled, or

- Made to a beneficiary or to an estate, or

- To pay certain qualified first-time homebuyer amounts (up to a $10,000 lifetime limit)

Figure 2-1. Is the Distribution From Your Roth IRA a Qualified Distribution?

Start Here

Has it been at least 5 years from the beginning of the year for which you first set up and contributed to a Roth IRA?

Were you at least 59½ years old at the time of the distribution?

No

Yes

Yes

Is the distribution being used to buy or rebuild a first home as explained in Publication 590, First Home under Early Distribu-tions in chapter 1?

Is the distribution due to your being disabled (defined Publica-tion 590, under Early Distributions in chapter 1)?

Was the distribution made to your beneficiary or your estate after your death?

The distribution from the Roth IRA is a qualified distribution. It isn’t subject to tax or penalty. This distribution is in scope. This will generally be designated by code Q on Form 1099-R.

The distribution from the Roth IRA isn’t a qualified distribution. The portion of the distribution allocable to earnings may be subject to tax and it may be subject to the 10% additional tax. This return is out of scope. Refer taxpayer to a professional tax preparer.

No

Yes

No

Yes

No

No

Yes

See the lists Roth IRA distribution codes that are in scope and out of scope for the VITA/TCE programs.

Form 1099-R Roth IRA

NTTC 12/17/2017

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If, in the last five years, any amounts were converted from a traditional IRA or rolled over from a qualified retirement plan to the Roth IRA, the return is out of scope.

Form 1099-R Box 7 Distribution Codes

Box 7 Distribution Codes Explanations 1 — Early distribution,

no known exception.

• If this amount was rolled over within 60 days of the withdrawal and—if the distribution wasfrom an IRA--no prior rollover was made in the same 12-month period, subtract therollover amount from Box 1 and enter the result in Box 2a. Also, check the rollover boxjust above the state information. Trustee to trustee transfer isn’t considered a priorrollover. If more than one rollover from an IRA in the 12-month period, return is out ofscope. See also self-certify procedure if 60-day period was missed for one of the listedreasons.

• If this wasn’t rolled over, a 10% additional tax will be applied unless the taxpayer qualifies foran exception. See page H-2 for a list of exceptions. If the taxpayer qualifies for an exception, go to Form 5329, enter the amount that qualifies for an exception and select the reason for the exception from the dropdown list.

2 — Early distribution, exception applies.

Code 2 applies if the taxpayer is under 59 ½ but the payer knows that an exception to the additional tax applies. If the IRA/SEP/SIMPLE box ISN’T checked, no further action needed. If the IRA/SEP/SIMPLE box IS checked, additional reporting may be required on Form 8606.

3 — Disability. Code 3 is for a disability pension. • If the taxpayer is under the minimum retirement age for the company he retired from, then

check the box under Rollover or Disability that says, “Check here to report on Line 7.”This will put this disability income on Line 7 of Form 1040 instead of Line 16. It will alsoinclude the amount in earned income for calculation of the earned income credit, thedependent care credit and the additional child tax credit.

• If the taxpayer has reached the minimum retirement age, no further action is needed.4 — Death. Code 4 is for a survivor’s benefit or an inherited IRA. If it’s a pension, the original retiree has

died, and the survivor is receiving his or her share of the pension. If the original pensioner was using the Simplified Method, continue to use it for the survivor. If it’s an inherited IRA and the original owner had a basis, the survivor takes over that basis.

5 — Prohibited transaction This code is out of scope.

6 — Tax-free Section 1035 exchange.

This code is in scope for Tax-Aide. The amount is not taxable but must be reported. Enter -0- in TaxSlayer Box 2a and--if the taxpayer is itemizing--reduce the MAGI in the sales taxcalculation by the amount in Box 1.

7 — Normal distribution.

Code 7 is for normal distributions. It may occur in several different situations: • If the amounts in Box 1 and 2a are the same, and Box 2b isn’t checked, the pension is fully

taxable.• If the taxpayer makes a rollover from one IRA to another and holds the money less than 60

days, subtract the rollover amount from Box 1 and enter the result in Box 2a. Also, mark the "rollover" box just above the State/Local Information, and enter the rollover amount. • If the Box 2b is checked and there is an amount in Box 9b, complete the Simplified Method. Be sure to use the taxpayer’s age at the time of retirement—not current age. • If there is an amount in Box 2 that is different than Box 1, no further action is needed.• If there is no amount (or zero) in Box 2a, check to see if there is an amount in Box 5. If this

is the same amount as Box 1, the distribution is the taxpayer’s own money coming back.None of the distribution will be taxed.

• If any portion of this distribution was sent directly from the trustee to a charity, and thetaxpayer is over 70 1/2 years old, enter the net taxable amount in box 2a (which maybe zero). Hit Continue and at the IRA/Pensions Distributions page, select NontaxableDistributions and check the box to mark that there is a QCD. No charitable deduction maybe taken for the donation.

• If the recipient is a retired public safety officer, health and long term care insurance premiums (up to $3,000) withheld from his pension can be subtracted from Box 1 and the results entered in Box 2a. 8 — Excess

contributions This code is out of scope.

9 — Cost of current life insurance

This code is out of scope

D-41 NTTC 12/17/2017

Form 1099-R Box 7 Distribution Codes (continued)

Box 7 Distribution Codes Explanations

A — May be eligible for 10-year tax option.

This code is out of scope.

B — Designated Roth account distribution

Code B is for a distribution from a designated Roth account. This code is in scope only if taxable amount has been determined.

D — Annuity payments from nonqualified annuities

Code D is used for a distribution from a private annuity in conjunction with the regular code. The distribution is subject to the net investment income tax. If the taxpayer has AGI over a threshold amount ($200,000 for a single taxpayer or HoH, $250,000 MFJ or QW, $125,000 MFS), then this code means the return is out of scope. If the AGI is less than the threshold amount the return is in scope and no further action is needed.

E — Distributions under Employee Plans Compliance Resolution System (EPCRS).


F — Charitable gift annuity.

Code F is used for the annuity payments from a charitable gift annuity. The difference between the distribution in Box 1 and the capital gain shown in Box 3 will appear on Line 15 of the 1040. Schedule D must be completed to report the capital gain. Describe it as “From 1099-R”. The gain should be the amount in Box 3, and the gain is long term.

G — Direct rollover of distribution and direct payment.

Code G is for a direct rollover from a qualified plan to an eligible retirement plan. If box 2a, taxable amount, is zero or blank, it won’t be taxed. If there is an amount in box 2a, the direct rollover is fully or partially taxable. Check the rollover box just above the State information.

H — Direct rollover of a designated Roth account distribution to a Roth IRA.

Code H is for a direct rollover of a distribution from a designated Roth account to a Roth IRA. It won’t be taxed. No further action is needed. Box 2a should be blank. Place check mark in box IRA/SEP/SIMPLE.

J — Early distribution from a Roth IRA.

This code is out of scope unless it is in error, and it is a qualified distribution (except first-time homebuyer exception is out of scope). See page D-40.

K — Distribution of IRA assets not having a readily available FMV


L — Loans treated as deemed distributions

Code L is for loans treated as deemed distributions. This code could possibly be combined with codes 1, 4, or B. For more information on how it is treated see the codes on this chart.

N — Recharacterized IRA contribution.


P — Excess contributions plus earnings/excess deferrals


Q — Qualified distribution from a Roth IRA.

This distribution isn’t taxable. TaxSlayer® enters the distribution amount on Form 1040 Line 15a but not 15b. Box 2a should be blank.

R — Recharacterized IRA contribution.


S — Early distribution from a SIMPLE IRA in the first 2 years, no known exception.

A 25% additional tax will be applied unless the taxpayer qualifies for an exception. See Tab H for a list of exceptions. If the taxpayer qualifies for an exception, go to Form 5329 and enter the amount of the distribution not subject to the additional tax and the code for the exception and the amount that qualifies for it.

T — Roth IRA distribution, exception applies.

This code is out of scope unless it is in error, and it is a qualified distribution (except first-timehomebuyer exception is out of scope). See page D-40.

U — Dividends distributed from an ESOP

This code is in scope for Tax-Aide. It is treated exactly like Code 7.

W — Charges or payments for LTC contracts

D-42 NTTC 12/17/2017

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This code is in scope for Tax-Aide. Amount is not taxable but must be reported.

Forms SSA-1099 and RRB-1099 Distributions Enter amount from Box 5 of Form SSA-1099 or enter from Form RRB-1099 - Tier 1 (Blue form) Social Security Equivalent Benefits (SSEB)

Be sure to check for any tax withheld. Often taxpayers choose this option.

Enter the total of Medicare Parts A, B, C, and D. Repeat for spouse.

Canadian or German Social Security Canada Pension Plan, Quebec Pension Plan and Old Age Security from Canada and Germany are treated like U.S. Social Security. Add amounts (converted to U.S. dollars) to amounts on Social Security 1099 SSA entry screen.

All other foreign old age pensions are out of scope

Note: Social Security repayment of $3,000 or less. If the total of amounts in Box 5 for all SSA 1099s is negative and you repaid $3,000 or less, deduct it as a miscellaneous itemized deduction from your income in the year you repaid it. Enter it on Schedule A (Form 1040), line 23. Repayment over $3,000 when the total of all Box 5x is negative is out of scope

for the VITA/TCE programs.

D-45

If an amount is present in Box 3 on Form SSA-1099, the taxpayer received benefits attributable to a prior year. Consider using the Lump-Sum worksheet to see if the taxable amount of social security is reduced.

If Lump-Sum calculation is needed, click here. Taxpayer will need to provide prior year tax returns

NTTC 12/17/2017

Social Security 1099 SSASocial Security Benefits

Taxpayer's Social Security Benefit (Generally Box 5 of Form SSA-1099) $

Taxpayer 's Federal Tax Withheld (Amount from Box 6 of Form SSA-1099) $

Taxpayer 's Medicare Premiums $

Spouse's Social Security Benefit (Generally box 5 of Form SSA-1099) $

Spouse's Federal Tax Withheld (Amount from Box 6 of Form SSA-1099) $

Spouse's Medicare Premiums $

Begin WorksheetLump-Sum Payments:

X Cancel V Continue

TAXABLE SOCIAL SECURITY BENEFITSAdd 1/2 of Social Security benefits to ALL other income minus adjustments from Lines 23— 32 to get a test sum.Compare the test sum to two threshold amounts, a lower threshold and an upper threshold.

r

85% is taxed -If sum ismore thanupperthreshold,50% ofamountbetweenthresholdsplus 85% ofexcess istaxed.

Upper threshold

50% is taxed <{50% is taxedLower threshold If sum is more

than lowerthreshold but lessthan upperthreshold, 50% ofexcess is taxed.

If sum is lessthan lowerthreshold, noSS is taxed.

ZeroLimited to 50% of total SS Limited to 85% of total SS

UpperThreshold Threshold

$32,000 $44,000$25,000 $34,000$25,000 $34,000

LowerFiling StatusMFJS, HoH, QWMFS (lived apart)MFS (lived together $0 $0

D-46

Form SSA-1099 Lump-Sum Distributions

Enter relevant year, as shown on Form SSA-1099.

If more than one year has prior year payments use additional Lump-Sum worksheet.

Dropdown is available for prior year Filing Status.

Use this worksheet for the prior year MAGI entry: ____________+____________+____________+____________

AGITax-exempt interest (1040 L 8b) Student loan interest (1040 L 33) Tuition and fees (1040 L 34) Adoption benefits +____________Qualified U.S. savings bond interest (Form 8815) +____________ Domestic production activities +____________Foreign earned income or housing (Form 2555) +____________Certain income of American Samoan residents +____________ Total Modified AGI for earlier year =__________ NTTC 12/17/2017

Social Security Lump-Sum PaymentYear the lump sum payment was made for

2015 **Filing Status in Earlier Year *

<- Please Select -

- Please Select -SingleMarried Filing JointMarried Filing SeparateHead of HouseholdQualifying Widow(er) with Dependent ChildrenNonresident Alien

$

Modified Adjusted Gross Income for Earlier Year

$

Taxable Benefits Reported in Earlier Year

$

Social Security Lump-Sum PaymentYear the lump sum payment was made for

2015

Filing Status in Earlier Year *- Please Select -

SSA Payments received in Earlier Year

$

Portion of this years SSA for Earlier year *$

Modified Adjusted Gross Income for Earlier Year

Taxable Benefits Reported in Earlier Year

$

Cancel I Continue

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If attorney fees are shown, they must be pro-rated between the taxable and nontaxable part of Social Security benefits. The fees attributable to the taxable portion can be entered on Schedule A, Line 23, if itemizing.

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From Line 20a of earlier year 1040. If it was an MFJ return, include SSA payments received that year by BOTH taxpayer and spouse.

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From this year's SSA-1099 (lower left)

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See below

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From Line 20b on earlier year return

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Schedule K-1 (Form 1041) 2017

Beneficiary’s Share of Income, Deductions, Credits, etc.

Department of the Treasury Internal Revenue Service

See back of form and instructions.

OMB No. 1545-0092

661117 Final K-1 Amended K-1

For calendar year 2017, or tax year

beginning / / 2017 ending / /

Information About the Estate or Trust Part I A Estate’s or trust’s employer identification number

B Estate’s or trust’s name

C Fiduciary's name, address, city, state, and ZIP code

D Check if Form 1041-T was filed and enter the date it was filed

E Check if this is the final Form 1041 for the estate or trust

Information About the BeneficiaryPart II F Beneficiary's identifying number

G Beneficiary's name, address, city, state, and ZIP code

H Domestic beneficiary Foreign beneficiary

Beneficiary’s Share of Current Year Income, Deductions, Credits, and Other Items

Part III

1 Interest income

2a Ordinary dividends

2b Qualified dividends

3 Net short-term capital gain

4a Net long-term capital gain

4b 28% rate gain

4c Unrecaptured section 1250 gain

5 Other portfolio and nonbusiness income

6 Ordinary business income

7 Net rental real estate income

8 Other rental income

9 Directly apportioned deductions

10 Estate tax deduction

11 Final year deductions

12 Alternative minimum tax adjustment

13 Credits and credit recapture

14 Other information

*See attached statement for additional information.

Note: A statement must be attached showing the beneficiary’s share of income and directly apportioned deductions from each business, rental real estate, and other rental activity.

For

IRS

Use

Onl

y

For Paperwork Reduction Act Notice, see the Instructions for Form 1041. www.irs.gov/Form1041 Cat. No. 11380D Schedule K-1 (Form 1041) 2017

Schedule K-1 (Form 1041)

NTTC 12/17/2017

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OOS

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B

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C

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Short term cap loss

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Long term cap loss

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Other codes OOS

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OOS

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OOS

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OOS

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OOS

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OOS

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OOS

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OOS

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**A

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Tax-exempt interest

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**B

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Foreign tax

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**Box 14 not in TaxSlayer K-1 screen. 1) Enter amounts for Code A in Income>Interest and Dividends> Tax-exempt Interest 2) Enter amounts for Code B in Deductions>Credits>Foreign Taxes Paid. 3) Enter in state as needed.

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K-1s and Scope

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D-46.1

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Other codes OOS

K-1s and Scope (Cont.)

* No need to enter in TaxSlayer**Box 14 not on TaxSlayer K-1

screen. 1) Enter amounts for Codes L

and M in Deductions>Credits>Foreign axes Paid.

2) Enter in state as needed.

NTTC 12/17/2017

( 71117Final K-1 D Amended K- 1 OMB No. 1545-0123

Schedule K-1 (Form 1120S) Shareholder’s Share of Current Year Income,Deductions, Credits, and Other Items1(0)17 Part III

Ordinary business income (loss) 13 CreditsDepartment of the TreasuryInternal Revenue Service

1For calendar year 2017, or tax year

OOS oosNet rental real estate income (loss)2/ / 2017 / /beginning

Shareholder’s Share of Income, Deductions,Credits, etc.

ending OOSOther net rental income (loss)3

OOSSee back of form and separate instructions.Interest income4

Parti Information About the CorporationOrdinary dividends5aA Corporation's employer identification number

Qualified dividends Foreign transactions5b 14B Corporation's name, address, city, state, and ZIP code */^Country or Variou >

*BForeign income

^ Income sourced byshareholder

*D Passive category

L Foreign taxForeign taxA.B,D,L,M in scopeOther codes OC S

Royalties6

Net short-term capital gam (loss)7

bsm? Net long-term capital gain (loss)8aD Final K- 1 G Amended K '

Partner's Share of Current Year Income,Deductions, Credits, and Other Items

OMB No. 1545-0123Schedule K-1 (Form 1065) 1017 Part III Collectibles (28%) gain (loss)8b(Form 1065)Department of the TreasuryInternal Revenue Service

**OOSOOS15 Credits1 0r<3 ncomeOoss)oos Unrecaptured section 1250 gam8cFor calendar year 2017. or tax year * kMOOS/ / 2017 2 Net rental rea estate

OOSincome (loss)/ /begnnng

Partner’s Share of Income, Deductions,Credits, etc.

endng Net section 1231 gain (loss)9

OOS3 Other net rental ncome (kiss)

OOS16 Foreign transactions

*A Country or var ous*B Foreign incom !

Income sourced_ ^ by partner

*D Passive categc ry*"*L Foreign tax

**|\/| Foreign taxA,B,D,L,M in scopeOther codes OOS

10 Alternative minimum tax (AMT) itemsOther income (loss) 15See back of form and separate nstructioos. OOS|Parti Information About the Partnership 4 Guaranteed payments

OOS OOSA Partnership's employer toentrfication number5 interest income

B Partnership's name, address, oty, state, and ZIP code6a Ordinary dividends

6b Quaified drndends

7 RoyaitesC IRS Center where partnership filed return Section 179 deduction 1611 Items affecting shareholder basis

Tax-exempt interestNondeductibleexpensesAdjust for stateas needed

oos A0 D Check if this is a publicly traded partnership (PTP) 8 Net short-term capital gan (loss) 12 Other deductions

*COOS|Part II Information About the Partner 17 Atematve mnimum tax (AMT) items9a Net tong-term capital gain (toss)

E Partner's identifyng number9b Collectibles^F Partner's name, address city, state, and ZIP code Other codes OC S9c Unrecaptured section 1250 gam

OOS10 Net section 1231 gan (toss)

OOS18 Tax-exempt income and

nondeductible expenses

ATax-exempt interest*pNondeductible ex )enses'“ 'Adjustfor state as ne >ded

Other codes OOS

17 Other information

G General partner or U.Cmember-manager

H D Domestic partner

G Limited partner or other LLCmember

D Foreign partner

11 Other income doss)

11 What type of entity is the partner?

12 If this partner sa retirement plan (iRA-SEP/Keogh/etc ). check here GJ Partner's share o< profit, toss, and caprtal (see instructions):

Beginning

19 Distributors

N/A Disregard12 Section 179 deduction

OOSEnding13 Other deduct

OOSProfit % %w.ir20 Other nformaton% %Loss

Captai % % OOSK Partner's share of liabnties at year end:

NonrecourseQualified nonrecourse fnanong . SRecourse

S14 Seif-employment earmrgs (toss)

OOSs

L Partner's capital account analyses:Begnnng capital account . . . SCaprtal contributed during the year SCurrent year ncrease (decrease) . SWithdrawals & dstnbutions . . SEndng captal account . . .

’See attached statement for additional information.

* No need to enter in TaxSIayer

|**Box 16 notonTaxSlayerK-1 screen.§ 1) Enter amounts from Codes L an i

M in Deductions>Credits>Forei<|nTaxes Paid.

11 2) Enter in state as needed.

s|f negative. OOSTax bass GAAP Secfon 704«book

D Omar (explaxi)3wcr5

M Dtothe partner contribute property with a buft-ngan or toss?Yes NoIf "Yes." attach statement (see nstructions)

For Paperwork Reduction Act Notice, see Instructions for Form 1065. www rsgovjforml065 Cat. No. 11394R Schedule K-1 (Form 1065) 2017

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D-46.2

D-49

Income reported on Schedule K-1 that is within the scope of the VITA/TCE programs includes:

• Interest income (flows to 1040, line 8a)• Dividend income (1040, line 9a)• Qualified Dividends income (1040, line 9b)• Net short-term capital gains and losses (Schedule D, line 5)• Net long-term capital gains and losses (Schedule D, line 12)• Tax-exempt interest income (Form 1040, line 8b)• Royalty income (Schedule E)

If the K-1 includes any deductions, expenses, credits, or other items not listed above, the return is out of scope.

Entering K-1 Information in TaxSlayer® (continued)

Form 1120S K-1

Part III - Shareholder's Share of Current Year Income, Deductions, Credits etc.

Actively Managed Passive Loss Carryover

$

Disposition Gain/Loss

$

Other Passive Loss Carryover

$

Carry Gain/Loss to

Form 4797

1 Ordinary Business Income (Loss) 7 Net Short-Term Capital Gain (Loss)

$ $

2 Net Rental Real Estate Income (Loss) 8a Net Long-Term Capital Gain (Loss)

$ $

3 Other Net Rental Income (Loss) 8b Collectibles (28%) Gain (Loss)

$ $

8c Unrecaptured section 1250 Gain4 Interest Income

$ $

9 Net Section 1231 Gain (Loss)5a Ordinary Dividends

$ $

5b Qualified Dividends Check if the Section 1231 Gain (Loss) is Passive$

11 Section 179 Deduction

6 Royalties $

$

Cancel I Continue

D-50

Entering Rents & Royalty Income in TaxSlayer®

Enter the required information about the rental property in this section.

Volunteers must certify at Military level to prepare Schedule E for rental income and taxpayer must be active-duty military.

If the taxpayer made any payments that would require them to file Form 1099, the return is out of scope.

2017

NTTC 12/17/2017

Schedule E Required Informationthat would require you to file Form(s) 1099Check here if you made any payments in

^ ContinueX

Schedule E Rent and Royalty InformationType -Select-

Description

Address

Check here > f foreign address

Address ^Number and StreetJ

Zip Code

City, Town, or Post Office

State

- Please Select -

Volunteer

Text Box

For land rental, if income is reported on 1099-MISC, enter the 1099-MISC and attach it to Schedule E. If it is cash income, on 1040 view, click on Line 17 to open Schedule E, and enter amount as rental income. Only expense can be Property Tax which must be put on Schedule A. Rental of your main home for less than 15 days during the year is not a taxable event. Do not enter the income and do not enter any rental expenses unless the income is reported on Form 1099-Misc. In that case, enter the 1099-Misc, attach it to Sch E, and enter the same amount as an Additional Expense labeled "less than 15-day rental of main home." Also applies to a second home if you used it more than 14 days and didn't otherwise rent it out. This is in scope. Rental income from sources such as a home is out of scope except for an active duty military taxpayer AND the Counselor and Quality Reviewer both have Military certification. All other rental situations (room in home, apartment over garage, separate building, for profit, not for profit, Airbnb, etc.) are out of scope regardless of certifications. See Other Income Section. Royalty income from Form 1099-Misc or a K-1 with no expenses is in scope for those with advanced certification. Enter the income document and, if necessary, attach to Sch E.

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Schedule E and Scope

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TaxSlayer Navigation: Income>Rents and Royalties; 1040 View Line 17; Keyword "SC"

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D-53

Other Income

Use Other Inc. Not Reported Elsewhere to enter amounts from:• Form 1099-MISC Box 3 (Other Income), or Box 7

(hobby income) or Box 8 (Substitute payments in lieu ofdividends or interest.)

• Jury Duty Pay• Alaska Permanent Fund Dividend

• Gambling winnings not reported on a Form W-2G (usethe description “Gambling Winnings”)

• Other income not entered elsewhere on the return

Use the Other Compensation menu to report scholarships and grants, taxable fringe benefits, household employee income, prisoner earned income and foreign compensation.

Taxable distributions from Coverdell Education Savings Accounts (ESAs), Qualified Tuition Programs (QTPs) or Achieving a Better Life Experience (ABLE) accounts are out of scope. If qualifiedexpenses are more than distributions,income is neither taxable nor reportable. If distribution is greaterthan the expense, return is OOS.

Gambling winnings are reported to the taxpayer on Form W-2G and are fully taxable and must be reported as income on the tax return. Gambling Losses up to the amount of winnings reported may be deducted as a Miscellaneous deduction, not subject to the 2% limit on Schedule A.

Cancellation of Debt from a credit card or Primary Mortgage

Forgiveness if extendeded are

in scope for preparers with advance certifications.

In scope ONLY for those with International Certification: United States Citizens and resident aliens who live and work abroad may be able to exclude all or part of their foreign salary or wages from their income when filing their U.S. federal tax return. They may also qualify to exclude compensation for their personal services or certain foreign housing costs.

The K-1 Earnings menu allows you to enter all items of income, deductions, etc. that were reported to the taxpayer on Form K-1 from either a partnership (Form 1065), S-Corporation (Form 1120S) , or trust (Form 1041). Enter the amounts from the K-1 in the spaces provided exactly as they appear on your client’s paper K-1.

NTTC 12/17/2017

Less Common Income ){; |=

Other Income Not Reported Elsewhere < Edit

Gambling Winnings Form W-2G ^ Begin

Other Compensation^ Begin

l->. Payments from Qualified Education Programs Form 1099-Q Begin

Cancellation of Debt Form 1099-C, Form 982 Begin

Installment Sale Income Form 6252 Begin

Sale of Business Property Form 4797 Begin

K-1 Earnings <• Begin

Gains and Losses From Section 1256 Form 6781 Begin

Foreign Earned Income Exclusion Form 2555 Begin

Continue to Income

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TaxSlayer Navigation: Income>Other Income; 1040 View Line 21

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Reverse Mortgage: Income is not taxable or reportable.

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Form 1099-LTC Long Term Care Benefits: • Search for Form 8853 and scroll to the Long Term Care section. • Answer the questions based on the information on Form 1099-LTC. • Enter the number of days covered. The last two fields are rarely needed. Most payments will not be taxable.

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D-54

Entering Foreign Earned Income Exclusion Information in TaxSlayer® (International

Certification only)

U.S. citizens and U.S. resident aliens are required to report worldwide income on a U.S. tax return.

However, certain taxpayers can exclude income earned while living in foreign countries.

To claim the foreign earned income exclusion, taxpayers must:• Demonstrate that their tax home is in a

foreign country• Meet either the bona fide residence test

or the physical presence test• Have income that qualifies as foreign

earned income (reported on Form 1040,line 7 as taxable wages or on line 12 asself-employment income.)

The foreign earned income exclusion doesn’t apply to wages and salaries of U.S. military members and civilian employees of the U.S. government.

If the taxpayer qualifies to exclude foreign earned income, the excludable amount will be reported as a negative amount on Form 1040, line 21.

For 2017, the maximum exclusion is $102,100.

You can’t exclude or deduct more than the taxpayer’s foreign earned income for the year.

TaxSlayer Navigation: Federal Section>Income>Other Income>Foreign Earned Income Exclusion, 1040 View Line 21, or Keyword “Form 2555”

Form 2555 General InformationForm belongs to *

O Taxpayer Example

Spouse Example

Your Foreign Address

Address (Number and Street) *


Foreign State or Province *

Foreign Country *- Please Select -

Foreign Postal Code *

Employer's US Address

Address (Number and Street) *


State *- Please Select -

Zip Code *

D-61

Entering Other Compensation in TaxSlayer®

When entering compensation on a joint return, be careful to indicate whether the income belonged to the taxpayer or the spouse.

Scholarships and grants used to pay for tuition, fees and course-related expenses are NOT taxable. Use this link to report only amounts that were used for non-qualifying expenses. “SCH” will appear on the dotted line next to line 7 on Form 1040. Taxable scholarship is considered “unearned”

Enter wages received as a household employee for which the taxpayer did not receive a Form W-2 because the employer paid less than $2,000 in 2017. “HSH” will appear on the dotted line next to line 7 on Form 1040.

Enter the amount received for work while an inmate in a penal institution. For purposes of the Earned Income Credit, this isn’t considered “earned” income. This includes amounts received for work performed while in a work release program or while in a halfway house. “PRI” will appear on the dotted line next to line 7 on Form 1040. This entry is made in addition to entering the Form W-2 from the penal institution.

Enter foreign earned income (wages, salaries, etc.) paid by a foreign employer for work performed while the taxpayer lived in a foreign country.

NTTC 12/17/2017

Other Compensation a a am*mmm mmm

Scholarships and Grants Begin

Fringe Benefits Begin

< >Household Employee Income ^ Begin

<Prisoner Earned Income Begin

Foreign Earned Compensation Begin

Continue

fEnter Household Employee IncomeOwner *

• Taxpayer Example -<O Spouse Example

Employer's Name *

Amount Paid *$

Cancel I Continue

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TaxSlayer Navigation: Income>Other Income>Other Compensation; 1040 View Line 21

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income for kiddie tax purposes but is "earned" income for determining filing requirement.

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D-62

Entering Medicaid Waiver Payments

Scenario A:

If income is reported on Form W-2 (and payer will not change), enter the Form W-2 as provided and mark the Medicaid Waiver box.

Scenario B:

If income is reported on a Form 1099-MISC enter the 1099-MISC with the amount in Box 3, then go to line 21>Other income

not reported elsewhere and enter Notice 2014-7 in the description field and the same amount as a negative.

Scenario C:

If income is reported on a Form 1099-MISC and you are in the business of providing home care services, enter the full amount of payments under Gross Receipts in the Schedule C Income section. If the payment was for the care of fewer than 10 children or five adults, you should then report the excludable amount as an expense in Part V, and write “Notice 2014-7” next to that amount. Even though you are a sole proprietor, because the amounts are excludable from income, they are not self-employment income and are not subject to self-employment tax.

NTTC 12/17/2017

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Note 1: For the income to be excludable, the care must be in provider's home. Note 2: If NOT reported, do not do anything. It is excludable income. A taxpayer may not choose to include in gross income difficulty of care payments that are excludable from gross income under § 131 as provided in Notice 2014-7.

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TaxSlayer will reduce the earned income of the taxpayer for EIC and other credit calculations. If filing MFJ, the Medicaid Waiver income belongs to the spouse, and there is a CDC, confirm it has been calculated correctly

Health Savings Accounts (HSA) Requires HSA Certification

Don’t rely on this document alone. Refer to HSA references to provide assistance.

How will you know if the taxpayer has an HSA issue?

• The Interview/Intake & Quality Review Sheet has the Yes or Unsure HSA box checked.• The taxpayer’s (or spouse’s) Form W-2 has a box 12 entry of code W for employer contributions.• [Caution: contributions to an employee’s account through a Section 125 (cafeteria) plan are treated as

employer contributions and aren’t deductible.]• The taxpayer (or spouse) has a Form 1099-SA with an X in box 5 showing distributions from an HSA.• The taxpayer (or spouse) may receive Form 5498-SA for their HSA contributions. If taxpayers don’t have

this form they can provide the information regarding HSA contributions based on their records.

If the other spouse has a separate HSA, check the box.

Spouses must share the family limit if either has family coverage. If one spouse has family coverage and both have HSAs, use “family” for both. When both spouses have HSAs, you must also complete the adjustment section in TaxSlayer for both Taxpayer and Spouse. Otherwise, Form 8889 will be incomplete.

Each HSA owner needs to file Form 8889 if they made a contribution to, or had a distribution from, the account. Prepare two forms if both spouses each have an HSA.

Select the appropriate (HDHP) coverage Self-only or family. TaxSlayer uses the maximum HSA limitation unless adjusted (see next page).

E-3

Form 8889 - Health Savings AccountForm belongs to:Taxpayer <—

Coverage under high deductible health plan*-Please Select -! v

- Please Select -Self-only

Family ns

Coverage under high deductible health plan*Family

Check here If you and your spouse have separate HSAs,

V

Form belongs to:Spouse

Coverage under high deductible health plan *

Family

- Please Select -

Self-only iti your spouse have separate HSAs.Family

NTTC 01/21/2018

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six new pages

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Next six pages have been completely revised.

Taxpayer and Spouse can each have a self-only HSA. If either has a family plan, the family limit applies to the combined contributions, including employer contributions. Each can increase their account contribution if age 55 or older. CAUTION: Make sure that taxpayer contributions do not exceed the limitation less employer contributions. Do this manually. Use the worksheet on E-4.2. Any excess contribution must be withdrawn before the due date of the return or an additional tax will apply, and the return will be out of scope Use the HSA Adjustments section shown on the next page for MFJ returns with family coverage when both spouses have separate HSAs. It is needed for a self-only plan only when the plan coverage has changed during the year (e.g. family for part of the year and self-only for part of the year).

Enter number of months person had a high deductible policy, no other major medical policy (including Medicare), and could not be claimed as dependent. Use “12” if person is using the last month rule. Note: it is not required that the person have an HSA for each month; it must be set up by the return due date. TaxSlayer will compute the amount for Form 8889 line 3 based on the type of plan and months entered. BUT see below if both spouses have HSAs.

Out of scope

Employers should report their contribution on Form W-2. Do not duplicate it here.

Out of scope

2017 deduction limits: Self-Only $3,400 Family $6,750

Plus $1,000 if age 55 or older at the end of the year

E-4

HSA Contributions

HSA Contributions you made for 2017

* INCLUDE contributions made from Jan 1 to Apr 15 of this year that were for2017.* DO NOT INCLUDE employer contributions, contributions through a cafeteriaplan,or amounts that were rolled over into your HSA(s).$

Number of months during this tax year that

- Please Select -

Amount you and your employer contributedfrom Form 8853, lines 3 and 4. If you and ydunder an HDHP at any time during the tax year, also include any amountcontributed to your spouse's Archer MSA.

$

Employer Contributions made to your HSA for 2017

We will automatically pull your employer contributions from your W-2. DO NOTenter amounts from your W-2.

$

Qualified HSA Funding Distributions from IRA or ROTH IRA

$

NTTC 01/21/2018

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Health Savings Accounts (HSA) (Cont.)

When there is family coverage and each spouse has an HSA, you will need to manually compute the amounts to report on line 3 and line 6 of each Form 8889. Use the worksheet on the following page.

This is for Form 8889 Line3: For a family plan, enter $6,750 for each spouse, or less based on the worksheet calculation. Do not split the limit nor include the extra age 55 or older amount For a self-only plan, an entry will adjust the basic $3,400 – enter a positive or negative as needed – BUT don’t duplicate the months’ calculation that TaxSlayer makes automatically.

This is for Form 8889 Line 6: For a family plan when both spouses have an HSA, splitthe limit of $6,750* between the spouses as they wish, e.g. $3,375 each or $2,000 to one and $4,750 to theother. Do not include the extra age 55 or older amount. For a self-only plan, an entry will adjust the basic $3,400 – enter a positive or negative as needed. * Or less based on the worksheet calculation

TaxSlayer automatically uses $1,000 for each account owner that is 55 or older. An entry here will either adjust that amount or override that amount depending on other entries. An entry should never be needed.

E-4.1

HSA Adjustments

Limitation - Adjust amount of limitation from w

Note: This amount will adjust a cal mour

$

Adjust your share of high-deductible health plan. If you and your spouse had separate HSAsAND had family coverage under an HDHP, see Page 4 of the Instructions for the amount toenter.

Note: This amount will adjust a calculated amour

$

If you were age 55 or older at the end of the taxfamily coverage under an HDHP at any time durAmount.

Note: This amount will adjust a calculated amoun

$

NTTC 01/21/2018

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Limitation Chart and Worksheet: (from Form 8889 instructions)

E-4.2

Computed limitation from worksheet _________________ Less employer contributions _________________ Maximum taxpayer and spouse contribution

(including those made by other individuals) _________________

IF family coverage, taxpayer and spouse get a single $6,750 to share plus each can add $1,000 to their separate HSA if 55 or older.

Start HemWere you enrolled in Medicare for themonth? Yes

No

XWere you an eligible individual (seeEligible Individual. earlier) on the firstday of the month (see the line 3instructions, earlier)?

Enter -0- on the linebelow for the month.No

Yes

iWhat type of coverage did your HDHP provide on the firstday of the month?

Self-only coverageEnter $3,400 on the line below for themonth. If you were age 55 or older at theend of 2017, enter $4,400 for the month.

Family coverageEnter $6,750 on the line below for themonth. If, at the end of 2017, you wereunmarried and age 55 or older, enter$7,750 for the month.

Amount fromchart aboveMonth in 2017

January

February.

March

April

May

June

July

August

September

October

November

December

Total for all months

Limitation.Divide the total by 12. Enter here and on line 3 .

NTTC 01/21/2018

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Qualified medical expenses are expenses that generally would qualify for medical and dental expenses deduction on Schedule A. Examples include unreimbursed expenses for doctors, dentists, and hospitals. A medicine or drug will be a qualified medical expense only if the medicine or drug: a) requires a prescription, b) is available without a prescription (an over-the counter medicine or drug) and the taxpayer has a prescription for it, or c) is insulin. Only these Insurance premiums can be included:

a. Long-term care insurance subject to premium limits shown in What’s New tab,b. Health care continuation coverage such as coverage under COBRA,c. Health care coverage while receiving unemployment compensation, andd. Medicare and other health care coverage if the taxpayer was 65 or older (other than premiums for a

Medicare supplemental policy, often called Medi-gap coverage)

Note the limited exceptions to the 20% additional tax on distributions in excess of qualified medical expense.

Ask the taxpayer for Form 1099-SA, with the HSA box checked. If not an HSA distribution, refer the taxpayer to a professional tax preparer.

E-4.3

HSA Distributions

Total distributions received during 2017 from all HSAs,

(Usually shown in Box 1 of Form(s) 1099-SA)

$

Distributions used for qualified medical expenses

* If you do not enter an amount here your entire distribution will be considered taxable.

$

Distributions you received in 2017 that you rolled over into another HSA. Also include anyexcess contributions (and the earnings on those excess contributions) included above thatwere withdrawn by the due date of your return.

$

Exceptions - The additional 20% tax does not apply to distributions madeafter the account beneficiary dies, becomes disabled,or turns age 65.

Check here if you meet any of the exceptions to the 20% taxS\

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E-4.4 NTTC 01/21/2018

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Interview Tips – Itemized DeductionsThese interview tips will assist you in determining whether a taxpayer’s itemized deductions are more than their standard deduction amount. It may be more advantageous for a taxpayer to itemize their deductions if the amount is larger than the allowable standard deduction amount.

Do you have expenses in the following categories: medical and dental expenses, taxes you paid, home mortgage interest you paid, gifts to charity, job expenses, and certain miscellaneous deductions? Note: Casualty and theft losses and some miscellaneous deductions are beyond the scope of VITA/TCE.

If YES, go to Step 2.If NO, generally speaking, you should take the standard deduction if eligible. For further explanation see exceptions in Publication 17, Standard Deduction chapter.

Were the medical and dental expenses paid by an employer under a pre-tax plan (not included in box 1 of the taxpayer’s Form W-2) or were the expenses reimbursed by an insurance company?

If YES, you can’t deduct reimbursed expenses. Go to Step 4.If NO, you can claim these expenses. Go to Step 3.

Were the medical and dental expenses more than 10% of your adjusted gross income Note: You can include medical and dental bills you paid for:

• Yourself and your spouse

• All dependents you claim on your return

• Your child whom you don’t claim as a dependentbecause of the rules for children of divorced orseparated parents

• Any person you could have claimed as a dependent onyour return except that person received $4,050 or moreof gross income or filed a joint return

• Any person you could have claimed as a dependentexcept that you, or your spouse if filing jointly, can beclaimed as a dependent on someone else’s 2017 return

If YES, you can claim qualified expenses. Go to Step 4.If NO, you can’t deduct these expenses. Go to Step 4.

Were the following taxes you paid imposed on you: state sales tax, local or foreign income taxes, real or personal property taxes?

If YES, go to Step 5.If NO, you can’t claim this expense as a deduction because you weren’t obligated to pay the taxes. Go to Step 6.

Did you pay these taxes during this tax year? If YES, you can claim these expenses and go to Step 6.If NO, you can’t deduct taxes for this year that were paid in another year. Go to Step 6.

Are you legally liable for a home mortgage loan? If YES, go to Step 7.If NO, you can’t take an interest expense for a mortgage for which you aren’t legally liable. Go to Step 12.

step

1

step

2

step

3

step

4

step

5

step

6

F-3

F-4

Note 1: If you refinanced in an earlier year, and weren’t eligible to take all the points in that year, you can add in this year’s portion of those prior year points.

Was the mortgage a secured debt on a main or second home?

If YES, go to Step 8.If NO, you can’t take an interest expense. Go to Step 11.

Did you pay the mortgage interest in this tax year?

If YES, go to Step 9.If NO, you can’t take the mortgage interest deduction. Go to Step 11.

Did you take out the mortgage on or before October 13, 1987?

If YES, your mortgage interest is fully deductible. Go to Step 10.If NO, follow the flowchart, Is My Home Mortgage Interest Fully Deductible in Publication 17 to determine what is deductible. Go to Step 11.

Did you pay points to obtain a home mortgage (on a main home or second home or home improvement loan or to refinance your home)?

If YES, follow the Are My Points Fully Deductible This Year flowchart in Publication 17 and then go to Step 11. See Note 1.If NO, go to Step 11.

Did you make a cash contribution to a qualified organization?

If YES, you must have a written record fromthat particular organization, and then go to Step 12.If NO, go to Step 12.

Did you make a noncash donation to a qualified organization?Note: Generally the value of a donation is the lesser of your cost or fair market value.

If YES, advise the taxpayer that generally he or she must have a written receipt from that particular organization. Go to Step 13.If NO, Go to Step 14

Is the total of all noncash donations $5,000or less?

If YES, see Publication 17 for more details. Go to Step 14.If NO, this is beyond the scope of VITA/TCE. Refer taxpayer to a professional tax preparer. Go to Step 14.

Do you have any employee, job hunting or investment expenses?

If YES, report the expenses on Schedule A, Job Expenses and Certain Miscellaneous Deductions.If NO, your employee and investment expenses aren’t deductible.

step

7

step

8

step

9

step

13

step

12

step

11

step

10

step

14

Note 2: For noncash donations less than $250, you are not required to have a receipt where it is impractical to get one (for example if you leave property at a charity’s unattended drop site).

Interview Tips – Itemized Deductions (continued)

NTTC 12/17/2017

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Items must be in good condition to be deductible. On the data entry screen for "Non-Cash Donations (more than $500)," enter requested information for each donation date. Taxpayer should estimate the fair market value. Motor vehicles include any motor vehicle intended for use on roads, a boat or an airplane. A donation of any of these worth more than $500 is out of scope.

F-7

Schedule A - Itemized Deductions (continued)

Points from refinancing must be spread over the life of the mortgage unless used to remodel (see Publication 17, Points). Enter loan origination fee from closing statement as Points not reported on Form 1098 if not included as points on Form 1098.

These types of donations are not deductible: political; country club/fraternal lodge; chambers of commerce; raffle, bingo, or lottery tickets; tuition; value of time/services; gifts to lobby groups; civic leagues, social clubs; labor unions, homeowners association dues.

If there are multiple mortgages, make additional Schedule A Interest entries.

Select for mortgage interest reported on Form 1098.Enter amount from Form 1098, box 1 (and box 2, if applicable).

NTTC 12/17/2017

Schedule A Interest EE

>Mortgage Interest Reported on Form 1098 Begin

Mortgage Interest Not Reported on Form 1098 Begin

Points Not Reported on Form 1098 Begin

Private Mortgage Insurance (PMI) Deduction Begin

Continue

Mortgage Interest Reported on 1098Add/Edit Interest Reported

Add Interest & Points Paid

Real Estate Taxes (Non-Business Property)Real Estate Taxes (Non-Business Property)

$

Cancel I Continue

Gifts to Charity ::: EE

Cash Gifts to Charity Begin

Non-Cash Gifts to Charity Begin

Non-Cash Donations (more than $500) Begin

Limitation on Charitable Contributions Deduction Q eam more Begin

Declaration of Appraiser Begin

Donee Acknowledgement Begin

Continue

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Note that private mortgage insurance goes on a separate screen--if extended.

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Reverse mortgage interest is deducted when actually paid--usually when loan is paid in full. It is subject to home equity loan limits (<$100,000).

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Do not use this if the total of noncash gifts is more than $500--except for charitable mileage.

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Use this screen if total of non-cash gifts is more than $500. Enter each donation.

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Certain qualified contributions made for relief efforts in disaster areas are not subject to the AGI limitation. See Public Law 155, H.R. 3823 Disaster Tax Relief and Airport and Airway Extension Act of 2017. For more information about other tax relief related to Hurricane Harvey, Hurricane Irma, and other disasters, see the IRS disaster relief page and the Fact Sheet for Federally Declared Disasters.

F-8

Schedule A - Miscellaneous Deductions

Schedule A - Itemized Deductions (continued)

Note: Enter amounts given by cash or check under Cash Gifts to Charity. The 30% & 50% refer to the percentage of your AGI that can be deducted this year. See Publication 17 for definitions. Enter the value of noncash items (including miles driven in service to a charity) donated under Non-Cash Gifts to Charity. Be careful to list them separately. If Non-Cash contributions are greater than $500 Form 8283 must be completed. Motor vehicles over $500are out of scope,as are non-cashdonations over $5,000.

The cost of charitable raffles, bingos etc are not deductible as charitable donations but can be deducted as gambling losses to the extent of winnings.

Non deductible Miscellaneous expenses: commuting; home repair; rent; loss from sale of home; personal legal expenses; lost/misplaced cash or property; fines/penalties.

Gambling losses up to the amount of winnings are deducted here. You can’t deduct gambling losses that are more than the taxpayers winnings reported on Line 21.

NTTC 12/17/2017

Charity Cash Contributions

To group all cash contributions as one single entry, select the "Override' button below

Chanty Name

Description

Amount Donated $

Date of Donation MM DD YYYY

Set the total contributions without itemizing.

3 Cancel s/ Continue

Schedule A - Miscellaneous DeductionsAmortizable premium on taxable bonds

<E

Federal estate tax on income in respect to a decedent

a»

Gambling losses to the extent of gambling winnings

a<r*

Impairment-related work expenses

a$

Repayment under claim of right (if greater than $3000)

aO If your repayment was less than S3000, click Add/Edit below and enter It as an additional Miscellaneous Deduction

$

Unrecovered investment in pension

*Tax Return Preparation

a*

Safe Deposit Box Rental

a$

Investment Fees and Expenses

a$

Add/Edit Miscellaneous Deductions that are not listed above

Add Additional

For information about what qualifies to be added as an additional Miscellaneous Deduction, click here

Cancel Continue

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At death of last beneficiary, any remaining basis in the pension or annuity can be deducted here.

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Repayment of income taxed in a prior year if under $3,000

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Include amounts you pay in giving services to a qualified organization. The amounts must be: • Unreimbursed; • Directly connected with the services; • Expenses you had only because of the services you gave; and • Not personal, living, or family expenses. Mileage is entered on the non-cash screen (< $500).

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Repayment of income taxed in a prior year if over $3,000

1. Where is your tax home?TAX HOME: Regular place of business or post of duty, regardless of where you maintain your family home. It includes the entire city or general area in which your business or work is located.

If you have no regular place of business, your tax home is the place where you regularly live.

If you do not have a regular or main place of busi‐ness and there is no place where you regularly live, you are considered an i nerant (transient), and your tax home is wherever you work. You cannot claim travel expenses.

Is the job loca on expected to last (or has lasted) more than one year? Your tax home is the job loca on.

Do you have a place where you regularly live (a family home)?

2. Did you travel away from your tax home?TRAVELING AWAY FROM HOME: Du es require you to be away from your tax home substan‐

ally longer than a day’s work, and you need to sleep or rest while away from home.

3. Did you have deduc ble travel expenses?Transporta on: Travel by airplane, bus or car between your tax home and your work, includes baggage fees, taxi, tolls and parking Lodging: Actual costs Meals: 50% of either actual costs or standard meal allowance (M&IE*) M&IE = $51/day or see www.gsa.gov Per Diem Rates for high cost areas Miscellaneous: Cleaning, phone calls, ps, other Going home on days off: You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work

Yes

Yes

Yes

Yes

No deduc ble travel expenses

No

No

No

No

For self‐employment travel, enter expenses on Schedule C. For unreim‐bursed employee expenses, enter on Form 2106, and total will carry to from Schedule A, Line 21. If par ally reimbursed, return is OUT OF SCOPE.

Travel Expenses When Working Outside Your Metropolitan Area

* M&IE = Meals and Incidental Expenses

NTTC 12/17/2017

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>

>

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F-8.1

General Sales Tax Deduction Income Worksheet(for use with IRS Sales Tax Calculator)

Name: Tax Year:

Number of Exemptions (line 6d): Zip Code:

From IRS Calculator Total Sales Tax:‡

Local Tax Rate (%): State Tax Rate (%):

‡Enter in TaxSlayer at Override

Income Description Source AmountADD Adjusted Gross Income Form 1040, Line 37 +ADD Tax-exempt Interest Form 1040, Line 8b +SUBTRACT Taxable IRA Distributions Form 1040, Line 15b** -ADD Total IRA Distributions* Form 1040, Line 15a +SUBTRACT Taxable Pensions and Annuities Form 1040, Line 16b** -ADD Total Pensions and Annuities* Form 1040, Line 16a +SUBTRACT Taxable Social Security Benefits Form 1040, Line 20b -ADD Total Social Security Benefits Form 1040, Line 20a +ADD Medicare Waiver Payments Form 1099-Misc +ADD Nontaxable Combat Pay Form W-2 +ADD Workers Compensation Payments Taxpayer +ADD Disability Insurance Payments Taxpayer +ADD Veterans Benefits (VA not DFAS) Taxpayer +ADD Public Assistance Payments Taxpayer +ADD Cash Gifts and Inheritances Taxpayer +ADD Residential Rental (less than 15 days) Taxpayer +ADD Prior Year Nontaxable Tax Refunds Prior Year Form 1040 +ADD Supplemental Social Security Benefits Taxpayer +ADD Any Other Nontaxable Income*** Taxpayer +Income for Sales Tax Calculator =

* Do not include rollovers** Skip this and next entry if 1040 line in TaxSlayer is blank as there is no nontaxable distribution*** See Publication 4012, Page D-1, Table B for additional examples of non-taxable income.

Sales Tax on Large Item Purchases Source TaxMotor Vehicle (including RVs, ATVs etc.) Taxpayer +Watercraft or Aircraft Taxpayer +

Taxpayer +

House (if general sales tax applies) Taxpayer +Total Sales Tax on Large Item Purchases =

Building Materials for home construction or remodel (if identified separately)

NTTC 12/17/2017

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F-8.2

G-11

Don't include any of the following as distributions:

• Military pensions• Distributions not taxable as the result of a rollover or a trustee-to-trustee transfer• Distributions from your IRA (other than a Roth IRA) rolled over or converted to your Roth IRA• Loans from a qualified employer plan treated as a distribution• Distributions of excess contributions or deferrals (and income allocable to such contributions or deferrals)• Distributions of contributions made during a tax year and returned (with any income allocable to such contributions)

on or before the due date (including extensions) for that tax year• Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k)• Distributions that are taxable as the result of an in-plan rollover to your designated Roth account• Distributions from an inherited IRA by a nonspousal beneficiary

Over- But not over- Married filing jointly Head of household Single, Married filing separately, or Qualifying

widow(er)

--- $18,500 .5 .5 .5

$18,500 $20,000 .5 .5 .2

$20,000 $27,750 .5 .5 .1

$27,750 $30,000 .5 .2 .1

$30,000 $31,000 .5 .1 .1

$31,000 $37,000 .5 .1 .0

$37,000 $40,000 .2 .1 .0

$40,000 $46,500 .1 .1 .0

$46,500 $62,000 .1 .0 .0

$62,000 --- .0 .0 .0

If AGI is- And your filing status is-

The credit is calculated using the following percentages:

Retirement Savings Contributions Credit (continued)

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Child Tax Credit

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Note: Disaster relief – Qualifying taxpayers can elect to substitute earned income from tax year 2016 for the calculation of EITC and CTC. Puerto Rico taxpayers can substitute Social Security taxes paid for earned income. See Public Law 155, H.R. 3823 Disaster Tax Relief and Airport and Airway Extension Act of 2017. For more information about other tax relief related to Hurricane Harvey, Hurricane Irma, and other disasters, see the IRS disaster relief page and the Fact Sheet for Federally Declared Disasters.

G-12

The child tax credit is generally a nonrefundable credit; however, certain taxpayers may be entitled to a refundable additional child tax credit.

• Taxpayers with more than $3,000 of taxable earned income may be eligible for the additional child taxcredit if they have at least one qualifying child.

• Taxpayers with three or more children may also be eligible for additional child taxcredit regardless of their income.

Schedule 8812 is used to calculate the allowable additional child tax credit.

See Tab C, Exemptions/Dependency, and the worksheet in the instruction booklet for additional information (including definitions and special rules relating to an adopted child, foster child, or qualifying child of more than one person).

Child Tax CreditThis is a credit intended to reduce the tax. This part of the credit isn't refundable. The credit is up to $1,000 per qualifying child.

Qualifying child:

1. Under age 17 at the end of the tax year.

2. A U.S. citizen or U.S. national* or resident alien of the United States. See the Resident/NR Alien tab.

3. Claimed as your dependent.**

4. Your:

a. son or daughter, adopted child, stepchild, eligible foster child, or a descendant of any of them

b. brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example,your niece or nephew)

5. Didn't provide over half of his or her own support.

6. Lived with the taxpayer for more than half of the tax year. (See Interview Tips for Child Tax Credit for Exception

to Time Lived with You section if the child didn't live with the taxpayer for more than half the year.)

* National is an individual who, although not a U.S. citizen, owes his or her allegiance to the United States. U.S. nationals includeAmerican Samoans and Northern Mariana Islanders who chose to become U.S. nationals instead of U.S. citizens.

**Refer to the tables on page C-3 for the rules governing who may be claimed as a dependent.

Note: No credit or refund for an overpayment for a taxable year shall be made to a taxpayer before the 15th day of the second month following the close of the taxable year (generally February 15th) if the taxpayer claimed the EITC or additional child tax credit on the tax return.

Note: Taxpayers claiming the Child Tax Credit must now have a valid identification number by the due date of the tax return (including extensions). Taxpayers may not file an amended return to retroactively claim the additional child tax credit for a qualifying child if a valid TIN for the child is issued after the due date of the tax return.

Note: You must claim the child as a dependent on your return to qualify for the Child Tax Credit

Note: If you claim the foreign earned income exclusion, the housing exclusion, or the housing deduction on Form 2555 or Form 2555-EZ, you can't claim the additional child tax credit.

Note: See Disallowance of Certain Refundable Credits in the EIC tab if the taxpayer received a letter saying they had to

complete Form 8862.

Note: Make sure the taxpayers credit hasn't been disallowed previously. If previously disallowed see Form 8862 in the EITC tab.

Additional Child Tax Credit – General Eligibility

Caution: If the taxpayer is able to claim the dependent under the rules for divorced and separated parents, he or she is the only parent entitled to claim the child tax credit or additional child tax credit.

NTTC 12/17/2017

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And see note on G-11.

H-1

Other Taxes and Payments

Hint: TaxSlayer provides all the forms and schedules you need in order to figure and report these taxes, and in most cases, performs the calculations.

Self-Employment Tax –

Entered automatically from Schedule SE. TaxSlayer® calculates the amount using the entries from Schedule C.

Tax on Unreported Tip Income –

TaxSlayer Navigation: Federal Section>Income>Wages>Add or edit W-2>Unreported tips; 1040 View Line 7; or Keyword “W2”.

Tax on Early Distribution –

TaxSlayer Navigation: Federal Section>Other Taxes> >Tax on Unreported Tip Income; 1040 View Line 59; or Keyword “5329”

A 10% penalty is calculated on Form 5329 for early withdrawal before age 59-1/2. If an exception applies, enter the code and the amount on line 2 of Form 5329. See next pages.

Household Employment Taxes – (out of scope)

Repayment of First-Time Homebuyer Credit Form 5405 –

TaxSlayer Navigation: Federal Section>Other Taxes> >First-time Homebuyer Repayment; 1040 View Line 60b; or Keyword “5405”

NTTC 12/17/2017

Other Taxes

Self-Employment Tax Schedule SE Begin

Alternative Minimum Tax Form 6251 Begin

Tax On Unreported Tip Income Form 4137 Begin

Tax On Early Distribution Form 5329 Begin

Household Employment Tax Schedule H Begin

First-time Homebuyer Repayment Form 5405 Begin

Tax For Children Under Age 18 Form 8615 Begin

Child's Interest/Dividend Earnings Form 8814 Begin

Net Investment Income Tax Form 8960 Begin

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If there is notary income, which is exempt from self-employment tax (and EIC), link from 1040 View Line 57 and enter the net profit.

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Tab H

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OOS if this tax becomes greater than zero.

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OOS

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OOS

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OOS

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OOS

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Enter unreported tips on Form W-2. If unreported because less than $20/mo. ALSO enter on Form 4137.

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2008 homebuyers who received the First Time Homebuyer Credit (maximum of $7,500 loan) started repayments in 2010 and must complete Form 5405, Part II.

H-2

Other Taxes and Payments (continued)

Exception codes and explanations for early distributions from IRA or retirement plans: (Do not rely on this list alone. See Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs), for rules and details pertaining to each exception.)

No Exception

01 Qualified retirement plan distributions (doesn’t apply to IRAs) if you separated from service in or after the year you reach age 55 (age 50 for qualified public safety employees).

02 Distributions made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from an employer plan, payments must begin after separation from service).

03 Distributions due to total and permanent disability. Does not apply if the disability occurred after the distribution.

04 Distributions due to death (doesn’t apply to modified endowment contracts).

05 Qualified retirement plan distributions up to (1) the amount you paid for unreimbursed medical expenses during the year minus (2) 10% of your adjusted gross income for the year.

06 Qualified retirement plan distributions made to an alternate payee under a qualified domestic relations order (doesn’t apply to IRAs).

07 IRA distributions made to unemployed individuals for health insurance premiums. Footnote 1 on H-308 IRA distributions made qualified for higher education expenses.

09 IRA distributions made for purchase of a first home, up to $10,000.

10 Distributions due to an IRS levy on the qualified retirement plan.

11 Qualified distributions to reservists while serving on active duty for at least 180 days.

12 Other (see Other, below). Also, enter this code if more than one exception applies. * Footnote 2 on H-3

Note: For those with HSA certification only. Additional taxes for HSA distributions not used for qualified medicalexpenses may be applicable unless age 65, disabled, or deceased See Form 8889.

When using TaxSlayer® enter the amount not subject to additional tax. Select the appropriate exception from the drop down menu.

NTTC 12/17/2017

Form 5329

Part I - Additional Tax on Early Distributions

Form belongs toTaxpayer Example

SIMPLE Retirement Distributions that are not subject to 25% Tax

$

Early Distributions that are not subject to 10% tax Learn more$

Select the reason for exemption

- Please Select -

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Note: Only Parts I and IX of Form 5329 to remove a penalty are in scope for Tax-Aide preparers with Advanced certification. Part VII - Tax on Excess Contributions to HSA are in scope for those with HSA certification.

H-2.1

Early Distribution Exceptions – Form 5329 Part I

Notes: • Some codes apply only to IRAs, some apply only to employer plans such as a 401(k); some

apply to both.• Code 03 applies if the taxpayer was considered disabled when the distribution occurred, i.e., it

does not apply if the disability occurred after the distribution.• For codes 05, 07 and 08, the distributions do not have to be specifically for the stated

expenses, but the distribution and the expenses must occur in same tax year.• For all other codes, the distribution must be specifically for the reason applicable to that code– see Pub 590-B and Form 5329 Instructions for details

05 Qualified retirement plan distributions up to the amount paid for unreimbursed medical expenses during the year minus 10% (or 7.5% if taxpayer or spouse were 65 or older) of adjusted gross income (AGI) for the year. Applies to IRA and employer plan distributions.

Example: Joyce, age 50 withdrew $10K from her 401(k). Her total unreimbursed qualified medical expenses for the year were $8K. Her AGI is $50K.

Item Amount Early distribution included in income $10,000 Amount of early distribution not subject to additional tax

$8,000 of medical expenses less 10% of her $50K AGI or $8,000 minus $5,000 =

Amount subject to additional tax $10,000 minus $3,000 = $7,000 10% Additional tax $700

08 IRA distributions made for qualified higher education expenses. It does not apply to employer plan distributions.

Example: Bob, age 54, withdrew $10,000 from his traditional IRA. Bob’s son James is a more than half-time student at a local college. Bob can apply expenses paid for himself, his spouse, his or his spouse's child, foster child, adopted child, or descendant of any of them to this exception. Note – the student does not have to be a dependent. If the student is at least a half- time student, room and board are qualified education expenses only to the extent they are not more than the greater of the allowance for room and board, as determined by the educational institution, that was included in the cost of attendance (for federal financial aid purposes) for the academic period, and the actual amount charged if the student is residing in housing owned or operated by the educational institution.

(Continued on next page)

NTTC 12/17/2017

H-2.2

Early Distribution Exceptions – Form 5329 Part I (continued)

Scenario Applicable to Exception Bob pays college $12,000 for tuition, books and fees

$10,000

Scholarship covers tuition, books and fees. ‒ James lives in on-campus housing with

room and board* ‒ James lives at home*

‒ James lives in off-campus housing*

− Standard cost for school-operated housing*

− Actual cost for room and board limited to amount determined by Institution for students residing at home*

− Actual cost for room and board limited to amount determined by Institution for students residing off-campus in private facilities*

∗ Taxpayer must obtain the appropriate room and board allowance from the Institution. This allowance represents either the only amount (on-campus housing) or the maximum amount that can be claimed toward this exception. See https://www.admissions.ucla.edu/prospect/budget.htm for an example. If the Institution has no allowance for a specific room and board situation, then nothing can be claimed.

Failure to take required minimum distribution (RMD) from traditional IRA - Form 5329 Part IX If taxpayer has failed to take RMD from a qualified retirement plan, go to entry screen for Form 5329. Complete Part IX and request a waiver of the 50% penalty. Describe the reasons the taxpayer failed to take the distribution (illness, relied on trustee, clerical error in calculation, etc.). Taxpayer needs to correct the error by taking the missed distribution as soon as possible. This will result in paying tax on two distributions in following year.

(Difference between first two entries)

NTTC 12/17/2017

Part IX - Additional Tax on Excess Accumulation in Qualified RetirementPlans (Including IRAs)

Minimum required distribution for current year

$

Amount actually distributed to you in current year

$

0 Check here to claim a waiver on your additional tax for failure to take a RequiredMinimum Distribution.

Waiver for Additional Tax

$

Explanation for Waiver

https://www.admissions.ucla.edu/prospect/budget.htm

H-3

Footnote 2

*Other: Distributions incorrectly indicated as early distributions by code 1, J, or S in box 7 of Form1099-R. Include on line 2 the amount you received when you were age 59 1/2 or older. See Form 5329 Instructions or Pub. 590-B for additional exceptions. For additional exceptions that apply to annuities, see Pub. 575.

Footnote 1

07 Medical insurance for yourself, your spouse, and your dependents (no 10% of AGI reduction). All of the following

conditions must apply:

• You lost your job.

• You received unemployment compensation paid under any federal or state law for 12 consecutive weeks because youlost your job.

• You receive the distributions during either the year you received the unemployment compensation or the followingyear.

• You receive the distributions no later than 60 days after you have been reemployed.

Other Taxes and Payments (continued)

Note: For those with HSA certification only. Additional taxes for HSA distributions not used for qualified medicalexpenses may be applicable unless age 65, disabled, or deceased. See Form 8889. All other taxes on this line are out of scope.

NTTC 12/17/2017

Part IX - Additional Tax on Excess Accumulation in Qualified RetirementPlans (Including IRAs)

Minimum required distribution for current year

$

Amount actually distributed to you in current year

$

0 Check here to claim a waiver on your additional tax for failure to take a RequiredMinimum Distribution.

Waiver for Additional Tax

$

Explanation for Waiver

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Always request a waiver. The addition to tax on the return is out of scope. Taxpayer must take correcting distribution, resulting in a double up of taxable distributions in the future year. Search for 5329 and complete Part IX - check the box to claim a waiver. Provide a brief (70 characters or less) explanation, such as "Taxpayer sick, failed to take RMD on time; it has since been made."

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Part IX - Failure to take required minimum distribution (RMD) from traditional IRA

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(Difference between previous two boxes)

H-4

AFFORDABLE CARE ACT (ACA)

• Each person in the tax household should be screened individually to determine in which months the person has coverage, is eligible for an exemption, or is subject to a shared responsibility payment.

• A tax return claiming zero personal exemptions (a dependent filing his or her own return) should not complete the ACA Worksheet. The dependent’s coverage exemption or premium tax credit will be reported on the return of the taxpayer who properly claims his or her dependency exemption.

2 If YES: In ACA Worksheet, check “Exm” and complete Form 8965.

A Yes answer will require entry of information from Form 1095-A. See Premium Tax Credit section later in this tab for help entering Form 1095-A.

Answer Yes if the taxpayer received Form 1095-A for any part of the year.

Select Yes if anyone in the tax household had Minimum Essential Coverage (MEC) at any time during the year. (See Types of Minimum Essential Coverage chart, later in this tab).

If the taxpayer applied for coverage via the Marketplace but was instead enrolled in Medicaid, answer No.

Health Insurance QuestionnaireDid you or your family have health insurance at any time in 2016?

• Yes ^O No

Below are some examples of healthcare plans that may be purchased or qualify as a purchased plan under the Affordable Care Act.

• A private plan purchased from a health insurance company• An employer-sponsored health insurance plan or insurance through your work, spouse's work or parent's work

Health Insurance QuestionnaireDid you purchase health insurance via HealthCare.gov or a State Marketplace? *G Yes <

No -4

< Restart Questionnaire Continue

H-5

Types of Minimum Essential Coverage

Minimum essential coverage means health care coverage under any of the following programs. It does not, however, include coverage consisting solely of excepted benefits. Excepted benefits include stand-alone vision and dental plans, workers’ compensation coverage, and coverage limited to a specified disease or illness.

Employer-sponsored coverage: Group health insurance coverage for employees under—

A governmental plan, such as the Federal Employees Health Benefit program, A plan or coverage offered in the small or large group market within a state, or A grandfathered health plan offered in a group market

A self-insured health plan for employees, COBRA coverage, Retiree coverage, or Coverage under an expatriate health plan for employees and related individuals.

Individual health coverage: Health insurance you purchase directly from an insurance company Health insurance you purchase through the Marketplace Health insurance provided through a student health plan Catastrophic coverage, or Coverage under an expatriate health plan for non-employees such as students and missionaries

Coverage under government-sponsored programs: Medicare Part A coverage, Medicare Advantage plans, Most Medicaid coverage,* Children’s Health Insurance Program (CHIP) coverage, Most types of TRICARE coverage, Comprehensive health care programs offered by the Department of Veterans Affairs, Health coverage provided to Peace Corps volunteers, Department of Defense Nonappropriated Fund Health Benefits Program, Refugee Medical Assistance, or Coverage through a Basic Health Program (BHP) standard health plan.

Other coverage: Certain foreign coverage, Certain coverage for business owners, or Coverage recognized by HHS as minimum essential coverage.**

*Medicaid programs that provide limited benefits generally don’t qualify as minimum essential coverage; however, HHSwill provide a hardship exemption to individuals with certain types of limited-benefit Medicaid coverage.

**Plans recognized as minimum essential coverage are listed at: www.cms.gov/CCIIO/Programs-and-Initiatives/Health Insurance-Market-Reforms/minimum-essential- coverage.html, scroll down and click on the link for the list of approved plans.

No proof of coverage is needed. Oral statement from the taxpayer is acceptable, unless normal due diligence leads you to believe the taxpayer’s statement is incorrect.

https://www.cms.gov/CCIIO/Programs-and-Initiatives/Health-Insurance-Market-Reforms/minimum-essential-coverage.html

https://www.cms.gov/CCIIO/Programs-and-Initiatives/Health-Insurance-Market-Reforms/minimum-essential-coverage.html

Affordable Care Act (Cont.)

Use the Add a New Household Member button only to add a family member for whom you must pay an SRP or claim an exemption. This may include a person the taxpayer can, but does not, claim as a dependent.

Although the unclaimed dependent is a member of the tax household, their income is NOT part of the taxpayer’s household income; the unclaimed dependent has their own separate household income for all exemption purposes. That means that any exemption that might apply to the unclaimed dependent, especially filing threshold*, less than 138% of FPL in a nonexpansion state, and affordability (cost of coverage is more than 8.16% of their separate MAGI), is determined for that individual independently from the other members of the tax household. There is a high likelihood that the unclaimed dependent will be entitled to an exemption and no SRP will be due.

If the filing threshold exemption applies to an unclaimed dependent, or their cost for coverage (without PTC**) would have been more than 8.16% of their MAGI, use the drop-down menu's "Coverage is unaffordable" exemption (Type A) as their exemption for each month. See examples below.

If the unclaimed dependent's MAGI is less than 138% of FPL, use the "Resident of a state that did not expand Medicaid" exemption.

* Is the unclaimed dependent’s gross income less than their filing threshold or is their MAGI (AGI plus tax-exemptinterest plus excluded foreign income) less than their filing threshold? See page H-29 for ways to reduce MAGI.

Unclaimed dependent example:

Student Johnny is 23 and has earned income of $5,000. His parents could but do not want to claim him. Johnny's income is below the filing threshold for a dependent (Page H-9: $6,350). Add Johnny to his parent's return and claim the unaffordable coverage exemption for the whole year.

If Johnny had $5,000 of unearned income instead, his gross income and MAGI are more than the filing threshold (page H-9). However, his cost of coverage would be $211 per month (as a dependent, he is not eligible for PTC). The monthly cost of $211 is more than 8.16% of his MAGI ($5,000 x 8.16% / 12 = $34). Add Johnny to his parent's return and claim the unaffordable coverage exemption (type A) for Johnny for the whole year.

If Johnny lived in a nonexpansion state at all during the year, he could claim that exemption (type G) instead because his income is less than 138% of FPL for one person.

H-6

** A dependent, whether claimed or not, is not an applicable taxpayer and cannot get PTC.

NTTC 12/17/2017

Verify Your Household Members

© If you have additional family members that are neither a spouse nor a dependent, click "Add a New Household Member."

If you need to add or remove dependents, click here to oo to Personal Information.

O Add New Household Member

Date of BirthName SSN

Taxpayer Example 400-00- 1/1/1985

Spouse Example 5/5/1986xxx-xx-

Dependent Example 400-00- 2/2/2010

O Add New Household Member

t k

Continue to Months Insured

Affordable Care Act (Cont.) Months Insured – Select Yes if everyone in the tax household was insured for all 12 months. If No, select the number of months each individual had coverage. Individuals are treated as having MEC for a month as long as they were covered for at least one day during that month.

Then indicate which months the individual had coverage:

H-7

Months InsuredWas your entire household insured for all 12 months of 2016? *O Yes

® No

Please enter the number of months Insured for each household member.

Months InsuredName

Taxpayer Example - Please Select -

- Please Select -

Spouse Example 121110

Dependent Example 987654< Restart Questionnaire Continue3210

Months Insured - Taxpayer Example

Specify the 10 months that Taxpayer Example had minimum essential coverage

FebruaryJanuary £1 March

I*I April 0 May 0 June

0 July I*I August I*I September

0 October I*I November i*i December

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H-8

Exemptions: Overview

Exemptions: Where do I start?

1STEP

Does anyone in the tax household already have an exemption in hand from the Marketplace?Marketplace exemptions require an application. If a person applied for an exemption through the Marketplace (or if they were granted an exemption because they were denied Medicaid coverage in a state that did not expand Medicaid), they should have received an Exemption Certificate Number (ECN) from the Marketplace. It is a 6 or 7 digit alphanumeric code.

2STEP

Is household or gross income under the filing threshold?If yes, everyone on the tax return is exempt from the coverage requirement, and there is no need to consider additional exemptions. Line 7 on Form 8965 is used to claim an income-based exemption. See Household Exemptions for Income Below Filing Threshold section later in this tab for more information about this exemption.

3STEP

If the tax household does not qualify for an exemption under Step 2, does any individual qualify for an exemption that can be claimed directly on the tax return?If yes, the exemption code is entered on Form 8965, Part III. (Refer to the Types of Coverage Exemptions chart later in this tab).

4STEP

For any uninsured individual that does not qualify under Step 2 or 3, does any individual in the tax household qualify for an exemption from the Marketplace?If yes, direct the person to the Marketplace for additional help. Enter “pending” as shown on the following page if the Marketplace has not processed the application for exemption before the return is filed. A tax return with a “pending” exemption can still be e-filed. The IRS may follow up with a taxpayer directly on a pending submission if the Marketplace does not approve the exemption.

• Enter the dependent’s income ONLY if their gross income exceeds the filing threshold.

• The software will calculate household income for the filing threshold exemption.

• TaxSlayer will also use the appropriate dependents’ MAGI for SRP and PTC purposes.

NTTC 12/17/2017

Dependents' Modified AGI (if filing requirement)Enter the AGI for your dependents from Form 1040, line 38; Form 1040A, line 22; Form 1040EZ, line 4; and Form 1040NR, line 37

$

Enter any tax-exempt interest for your dependents from Form 1040, line 8b; Form 1040A, line 8b; Form 1040EZ, the amount written to the left ofthe line 2 entry space; and Form 1040NR, line 9b

$

Enter any amounts for your dependents from Form 2555, lines 45 and 50, and Form 2555-EZ, line 18

$

Enter for each of your dependents the difference, if any, between Form 1040, lines 20a and 20b; and Form 1040A, lines 14a and 14b

$

< Back Continue

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(Steps 1 and 2 are in reverse order in TaxSlayer)

Affordable Care Act Exemptions – TY2017 Quick Reference Guide – Page 1

Revised 09/18/2017 REFER TO FORM 8965 INSTRUCTIONS FOR MORE INFORMATION

Exemptions Available on Tax Return 1 (in order of ease of use) Description Code Notes Duration 2

Household income below filing threshold

– After input of MAGI for claimed dependents that have a filing requirement (donot include MAGI of a dependent that is not claimed)

Exemption applies to all members in the tax family 3

Full year

Gross income below filing threshold

– Include gross income of taxpayer 4 only (do not include income of dependents)Exemption applies to all members in the tax family 3

Full year

Short coverage gap (<3 months)

B One such gap only per individual; to count months, look back to 2016 but not forward to 2018 (applies to the first gap if there are two short gaps)

Another exemption may apply to months before or after a short gap

Months of short gap

State did not expand Medicaid

G Household income (increased by untaxed social security) is less than 138% of FPL in states not expanding Medicaid: AL, FL, GA, ID, KS, ME, MO, MS, NC, NE, OK, SC, SD, TN, TX, UT, VA, WI, or WY

Full year for persons who lived in such state

Certain citizens living abroad Certain noncitizens

C A U.S. citizen or resident who spent at least 330 full days outside of the U.S. during a 12-month period

A U.S. citizen who is a bona fide resident of a foreign country A bona fide resident of a U.S. territory A resident alien who was a citizen or national of a foreign country with which

the U.S. has an income tax treaty with a nondiscrimination clause, and who was a bona fide resident of a foreign country for the tax year

Not a U.S. citizen, not a U.S. national, and not lawfully present in the U.S. (includes a DACA-status immigrant)

A nonresident alien, including (1) a dual-status alien in the first year of residency and (2) a nonresident alien or dual-status nonresident alien who elects to file a joint return with a spouse (does not apply if meet certain presence requirements and elect to be treated as resident – Pub 519)

Months of such status

Incarceration 5,6 F Includes being in a jail, prison, or similar penal institution or correctional facility after the disposition of charges

Does not include: time in jail pending disposition of charges (being held but not convicted of a crime), nor time in probation, parole, or home confinement

Months of incarceration

Member of Indian tribe or individual otherwise eligible for services from an Indian health care provider 5,6

E Either a member of a Federally-recognized Indian tribe, including an Alaska Native Claims Settlement Act (ANCSA) Corporation Shareholder (regional or village), or otherwise eligible for services through an Indian health care provider or the Indian Health Service

Federally-recognized Indian tribes list at www.bia.gov/WhoWeAre/BIA/OIS/TribalGovernmentServices/TribalDirectory

ANSCSA list at dnr.alaska.gov/mlw/trails/17b/corpindex.cfm

Months of tribe membership

Health care sharing ministry (HCSM) 5,6

D A HCSM is a tax-exempt organization acting as clearinghouse for those who have medical expenses and those who desire to share those medical expenses

Months of ministry membership

Born, adopted or died during the year

H Claim on 8965 only if need to file 8965 to claim another exemption. Use Code H for the months: of and before the birth or adoption; of and after death

Specified months

HCTC G Health coverage tax credit – out of scope

1 Exemption may also be claimed on an amended return (F1040-X) and using F8965 2 One day of MEC in a month satisfies the MEC requirement for the whole month; one day of exemption in a month covers the whole month; may need to test on a month-by-month basis, annualized if needed 3 Tax family includes the taxpayer, spouse (if filing MFJ), and dependents claimed on the taxpayer’s return 4 Taxpayer income includes spouse’s income if filing MFJ 5 Exemption is no longer issued by the Marketplace; can continue to use prior exemptions for 2017 6 Exemption can be retroactively granted by the Marketplace up to three years back

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http://www.bia.gov/WhoWeAre/BIA/OIS/TribalGovernmentServices/TribalDirectory

Affordable Care Act Exemptions – TY2017 Quick Reference Guide – Page 2

REFER TO FORM 8965 INSTRUCTIONS FOR MORE INFORMATION Revised 09/18/2017

Affordability Exemptions Available on Tax Return 1 (in order of priority) Description Code Notes Duration 2

Coverage is unaffordable because its cost is more than 8.16% of household MAGI and:

Household MAGI = AGI + exempt interest income + excluded foreign income + pre-tax medical (salary reduction plan)

Include each tax family 3 member’s MAGI with a filing requirement Do not include the MAGI of a dependent who is not claimed on the return MUST compare against correct plan cost:

Covers:

1. Employer offersself-only coverage 7 to taxpayer or family member

A Lowest cost employer coverage available for employee-only coverage Must know cost of coverage offered by employer (Form 1095-C, if available) Exemption applies to individual offered coverage only

Applicable months

2. Employer offersfamily coverage to taxpayer or spouse

A Lowest cost family coverage for eligible tax family 3 members who do not qualify for another exemption (offer includes the employee)

Must know cost of family coverage offered by employer Exemption 8 applies to tax family 3 members, other than the employee, who are

eligible for the coverage and do not qualify for another exemption

Applicable months

3. More than one taxfamily 3 member is offered employer coverage

G Two or more family members offered employer coverage: (1) Individual coverage offers are affordable but (2) their combined cost is greater than 8.16% of income and (3) no family coverage is offered for less than 8.16% of income

Must know cost of coverages offered by employers Exemption 8 applies to all members in the tax family 3

The whole year, if criteria met for at least one month

4. Employer doesNOT offer coverage

A The lowest-cost bronze Marketplace plan for all individuals shown on the return who do not have an employer offer and do not qualify for another exemption: 1) find the lowest cost bronze plan at the Marketplace 9, then 2) account for any PTCs the person would have been eligible to receive 10 (need SLCSP cost for the tax family 3 members eligible for PTC, i.e. not eligible for government coverage)

Exemption applies to members in the tax family 3 included in the bronze plan quote

Applicable months

Marketplace-ONLY Exemptions (ECN issued by Marketplace)6,11 Members of certain religious sects Determined ineligible for Medicaid in a state that did not expand Medicaid coverage No access to affordable coverage based on projected household income General hardship as determined by the Marketplace Enrolled in Medicaid programs that are not MEC (pregnancy-only or spend-down coverage) Hardship exemptions granted by the Marketplace include 14 categories below: (exemption is effective at least one month

before and after hardship) 1. Homelessness2. Evicted in the last 6 months or facing eviction or

foreclosure3. Utility shut-off notice4. Domestic violence5. Death of a close family member6. Disaster that resulted in substantial property damage7. Filed for bankruptcy in the last 6 months8. Significant debt from medical expenses in the last 24

months9. High expenses caring for ill, disabled or aging relative

10. Failure of another party to comply with a medical supportorder for a dependent child who is determined ineligible forMedicaid or CHIP

11. Through an appeals process, determined eligible for aMarketplace QHP, PTC, or CSR but was not enrolled

12. Determined ineligible for Medicaid because the state did notexpand (must have applied and been denied)

13. Individual health insurance plan was cancelled and believeMarketplace plans are considered unaffordable

14. Other hardship in obtaining coverage (including for people inAmeriCorps, VISTA and NCCC who are enrolled limited durationor self-funded coverage)

7 See 8965 instructions for wellness incentives, health reimbursement arrangements, health flex contributions and opt-out payments 8 Exemption can be claimed even if one or more offers are accepted 9 Include individuals even if they have, or could have had, government coverage (Medicare, Medicaid, CHIP, etc.) 10 Do not factor in a PTC if no PTC would have been allowable, e.g. eligible for Medicaid or Medicare, or >400% of FPL 11 Use “PENDING” as the ECN on F8965 if the ECN has not yet been received

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H-17

Incarceration (code “F”). You can claim a coverage exemption for

which the individual was incarcerated for at least 1 day in the month. For this purpose, an individual is considered incarcerated if he or she was confined, after the disposition of charges, in a jail, prison, or similar penal institution or correctional facility. To claim this coverage exemption, enter code “F” in Part III, column c, and identify the months to which the exemption applies as described under Column

household described in condition 1 could enroll in through an employer exceeds 8% of household income, and

3. The combined cost of the self-only coverage identified in condition 1 exceeds 8% of household income.

Example 1—two offers of self-only coverage that together are unaffordable. Justin and Sally are married, have no dependents, and file a joint return. Justin is offered self-only

employer-sponsored coverage was different.

CAUTION! Do not complete this worksheet unless you were instructed to do so in the Affordability Worksheet.

1. Enter the monthly premium for the lowest cost bronze plan that covers everyone in your tax household for whom a personal exemption deduction is claimed, who is not eligible for employer coverage, and who does not qualify for another coverage exemption for the month. To find the lowest cost bronze plan go to the Marketplace for your area . . . . . . . . . . . . . . . .

2. Enter your household income (see Household income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3. Enter the total of all nontaxable social security benefits received by you, your spouse, and each claimed dependent who

must file a tax return* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5. Enter the federal poverty line for the number of individuals in your tax household less any dependents not claimed. See the

instructions for Form 8962, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6. Divide line 4 by line 5. If the result (without rounding) is less than 1.0 or more than 4.0, skip lines 7 through 10 and enter -0-

on line 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7. Multiply line 6 by 100 and round to the nearest whole number. Enter the applicable figure for the result from the table in the

instructions for Form 8962, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8. Multiply line 4 by line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9. Divide line 8 by 12.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10. Enter the monthly premium for the second lowest cost silver plan premium that covers everyone in your tax household for

whom a personal exemption deduction is claimed, who is not eligible for minimum essential coverage (other than coverage in the individual market), and who does not qualify for another coverage exemption for the month. To find the second lowest cost silver plan go the Marketplace for your area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12. Subtract line 11 from line 1. If zero or less, enter -0-. This is the individual's required contribution for the month . . . . . . .13. Is the individual eligible for this coverage for every month of the year?

Yes. Multiply line 12 by 12.0. This is the annualized premium. Enter this amount in the space for every month on the Affordability Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .No. Use the Annualized Premium Worksheet to determine what the annualized premium would be for each month the individual was eligible for the coverage being tested. Enter the annualized premium in the space for the appropriate months on the Affordability Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

*If the individual filed Form 1040, figure the nontaxable social security benefits received by that individual by subtracting Form 1040, line 20b from Form 1040, line 20a. If the individual filed Form 1040A, figure the nontaxable social security benefits received by that individual by subtracting Form 1040A, line 14b from Form 1040A, line 14a. If the individual filed Form 1040EZ, he or she should have received a Form SSA-1099 or Form RRB-1099 showing the social security benefits received by that individual, all of which were nontaxable.

Subtract line 9 from line 10 . If zero or less, enter -0-.

otherwise exempt.

Enter the appropriate amount on the Affordability Worksheet as directed. This worksheet will compare the annualized premium to the affordability threshold.

Do not complete this worksheet unless you were instructed to do so in the Affordability Worksheet.

1. Enter the monthly premium for the lowest cost bronze plan that covers everyone in your tax household for whom a personal exemption deduction is claimed, who isn't eligible for employer coverage, and who doesn't qualify for another coverage exemption for the month. To find the lowest cost bronze plan go to www.HealthCare.gov/tax-tool or the Marketplace foryour area. If you are married and file a separate return, enter the monthly premium here and on line 12. Don’t completelines 2-11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter your household income (see Household income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Enter the total of all nontaxable social security benefits received by you, your spouse, and each claimed dependent who must file a tax return* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Enter the federal poverty line for the number of individuals in your tax household less any dependents not claimed. Seethe instructions for Form 8962, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Divide line 4 by line 5. If the result (without rounding) is less than 1.0 or more than 4.0, skip lines 7 through 10 and enter -0- on line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. Multiply line 6 by 100 and round to the nearest whole number. Enter the applicable figure for the result from the table inthe instructions for Form 8962, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Multiply line 4 by line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. Divide line 8 by 12.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. Enter the monthly premium for the second lowest cost silver plan premium that covers everyone in your tax householdfor whom a personal exemption deduction is claimed, who isn't eligible for minimum essential coverage (other thancoverage in the individual market), and who doesn't qualify for another coverage exemption for the month. To find thesecond lowest cost silver plan go to www.HealthCare.gov/tax-tool or the Marketplace for your area . . . . . . . . . . . . .

11. Subtract line 9 from line 10 . If zero or less, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12. Subtract line 11 from line 1. If zero or less, enter -0-. This is the individual’s required contribution for the month . . . . .

13. Is the individual eligible for this coverage for every month of the year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes. Multiply line 12 by 12.0. This is the annualized premium. Enter this amount in the space for every month on the Affordability Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

No. Multiply line 12 by 12.0. This is the annualized premium. Enter this amount in the space on the Affordability Worksheet for each month the individual was eligible for the coverage being tested. . . . . . . . . . . . . . . . . . . . . . . .

*If the individual filed Form 1040, figure the nontaxable social security benefits received by that individual by subtracting Form 1040, line 20b from Form 1040, line 20a. If the individual filed Form 1040A, figure the nontaxable social security benefits received by that individual by subtracting Form 1040A, line 14b from Form 1040A, line 14a. If the individual filed Form 1040EZ, he or she should have received a Form SSA-1099 or Form RRB-1099 showing the social security benefits received by that individual, all of which were nontaxable.

Marketplace Coverage Affordability Worksheet

LCBP: Go to the taxpayer’s Marketplace, such as www.healthcare.gov.

NOTE: The look up tool asks about tobacco use. Tobacco use is the use of a tobacco product 4 or more times per week within no longer than the past 6 months by legal users of tobacco products (generally those 18 and older).

TIP: If the lowest cost bronze plan (LCBP) costs less than 8.16% of income (above), there is an affordable offer of coverage. No Code A exemption is available. (The Marketplace presented affordable coverage and the marketplace affordability exemption does not apply)

LINE 1: LCBP - Asks for the lowest cost bronze plan (LCBP) for everyone in the tax household who is:• Not offered employer sponsored coverage, and• Not otherwise exempt.Find this value using the Tax Tool for your Marketplace.Remember: Include people who are covered through Medicare or Medicaid!If married filing separately, enter LCBP here and on Line 12 (skip lines 2-11).

This worksheet is used only if there is no offer of employee coverage

TIP: Note that more than one marketplace coverage affordability worksheet may be needed if circumstances changed during the year.

LINE 2: Household MAGI is adjusted gross income + tax exempt interest + excluded foreign earned income. Include MAGI of any claimed dependents with a filing requirement.

Line 10: Second lowest cost silver plan (SLCSP): Go to the Market-place at https://www.healthcare.gov/tax-tool/

Do not include individuals in your tax household that are eligible for other employer sponsored or government sponsored MEC, or who are other-wise exempt.

For example, that means that the SLCSP cost would NOT INCLUDE the taxpayer or spouse who is enrolled in or eligible for Medicare or Medicaid. (This is different from line 1).

If the taxpayer is unsure whether they or their dependents were eligible for Medicaid, see https://www.medicaid.gov/medicaid/program-informa-tion/medicaid-and-chip-eligibility-levels/index.html

LINE 6: If less than 1.0 (100% FPL) or over 4.0 (400% FPL), skip lines 7-10.Note: This % will also help identify who is eligible for Medicaid in Line 10.

Line 13: Enter the appropriate amount on the Affordability Worksheet as directed. Compare this amount to the affordability threshold.

• If the annualized premium costs lessthan 8.16% of income, no exemptionapplies.

• If the annualized premium costsmore than 8.16% of income, CodeA applies.

1 '

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or state marketplace.

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Note: Notice 2017-74 provides that for purposes of the affordability exemption, if an individual resides in a rating area served by a Marketplace that does not offer a bronze plan, the individual generally should use as his or her applicable plan the lowest cost metal-level plan available in the Marketplace serving the rating area in which the individual resides that would cover all nonexempt members of the individual’s family.

https://www.healthcare.gov/tax-tool/

https://www.medicaid.gov/medicaid/program-information/

https://www.medicaid.gov/medicaid/program-information/

H-18

How to Use the Healthcare.gov Tax Tool

WHO SHOULD USE THIS TOOL?

Taxpayers who live in federal marketplace (Healthcare.gov) states, or in a state that uses the Healthcare.gov technology. If you live in a state with a state-based marketplace, contact the marketplace by phone or online.To begin, go to https://www.healthcare.gov/tax-tool/.

• Select “Claim an ‘affordability’ exemption”

These instructions focus on using the tool to claim the affordability exemption but the tool also allows a taxpayer to find their SLCSP to complete or correct Column B of the Form 1095- A.

The Tax Tool will ask you to enter all members of the household, even those with other coverage or an exemption.

Step 1 for each family member determines whether someone will be includedin the lowest cost bronze plan (LCBP), which you will enter on Line 1 of the ACA Marketplace Coverage Affordability Worksheet.

Follow the instructions closely! Check the boxes for the months the person was:

• Eligible for employer-sponsored coverage (from their own employer or a member of their family on the same tax return)

• Eligible for another exemption

Leave the boxes unchecked if those circumstances don’t apply.

1 2 0 4 f t Family members

Get information you need to claim an affordability exemptionTo claim an affordability exemption, yoiri need ro know me premiums of 2 heafth plans available to your family in 2016 me lowest cost Bronze plan and me second lowestcost Silver Plan (SLCSPj Well ask a few questions and provide both premiums

Q wnat's an "affordability exemption." and doIqualify?

what you'll need to uso this tool:• The ZIP code and county where each family member kved for each month of 2016• The forth<3ate of each tarray member• The months each family merrber dmnl nave another Leverage exemption• The months each family member was not eftgifoe lor coverage outside the Marketplace, ncluding employer coverage

2 0 4 5 Family members1

Health coverage eligibility and exemption status

Step1of 2: Familymember1Select the months that this family member:

• Was eligible for employer coverage OR• Had another coverage exemption

SELECT ALL MONTHS UNSELECT ALL MONTHS

January February March April May June

July August September October November December

https://www.healthcare.gov/tax-tool/

August 17, 2017DRAFT AS OF

Page 9 of 20 Fileid: … ions/I8962/2017/A/XML/Cycle05/source 11:25 - 16-Aug-2017The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Table 2. Applicable Figure

IF Form 8962, line 5 is . . .

ENTER on Form 8962,

line 7 . . .IF Form 8962,

line 5 is . . .ENTER on Form 8962,

line 7 . . .

IF Form 8962, line 5

is . . .

ENTER on Form 8962,

line 7 . . .IF Form 8962,

line 5 is . . .ENTER on Form 8962,

line 7 . . .less than 133 0.0204 175 0.0526 218 0.0707 261 0.0854

133 0.0306 176 0.0530 219 0.0711 262 0.0857 134 0.0312 177 0.0535 220 0.0714 263 0.0859 135 0.0318 178 0.0540 221 0.0718 264 0.0862136 0.0324 179 0.0544 222 0.0721 265 0.0865 137 0.0330 180 0.0549 223 0.0725 266 0.0868 138 0.0336 181 0.0554 224 0.0728 267 0.0871139 0.0342 182 0.0558 225 0.0732 268 0.0874 140 0.0348 183 0.0563 226 0.0736 269 0.0877 141 0.0354 184 0.0568 227 0.0739 270 0.0880 142 0.0360 185 0.0573 228 0.0743 271 0.0883 143 0.0366 186 0.0577 229 0.0746 272 0.0886 144 0.0372 187 0.0582 230 0.0750 273 0.0889 145 0.0378 188 0.0587 231 0.0753 274 0.0892 146 0.0384 189 0.0591 232 0.0757 275 0.0895 147 0.0390 190 0.0596 233 0.0760 276 0.0898 148 0.0396 191 0.0601 234 0.0764 277 0.0901 149 0.0402 192 0.0605 235 0.0768 278 0.0904 150 0.0408 193 0.0610 236 0.0771 279 0.0907 151 0.0413 194 0.0615 237 0.0775 280 0.0910 152 0.0417 195 0.0620 238 0.0778 281 0.0913 153 0.0422 196 0.0624 239 0.0782 282 0.0916154 0.0427 197 0.0629 240 0.0785 283 0.0919 155 0.0432 198 0.0634 241 0.0789 284 0.0922 156 0.0436 199 0.0638 242 0.0793 285 0.0925 157 0.0441 200 0.0643 243 0.0796 286 0.0928 158 0.0446 201 0.0647 244 0.0800 287 0.0931 159 0.0450 202 0.0650 245 0.0803 288 0.0933 160 0.0455 203 0.0654 246 0.0807 289 0.0936 161 0.0460 204 0.0657 247 0.0810 290 0.0939 162 0.0464 205 0.0661 248 0.0814 291 0.0942 163 0.0469 206 0.0664 249 0.0817 292 0.0945 164 0.0474 207 0.0668 250 0.0821 293 0.0948 165 0.0479 208 0.0671 251 0.0824 294 0.0951 166 0.0483 209 0.0675 252 0.0827 295 0.0954 167 0.0488 210 0.0679 253 0.0830 296 0.0957 168 0.0493 211 0.0682 254 0.0833 297 0.0960 169 0.0497 212 0.0686 255 0.0836 298 0.0963 170 0.0502 213 0.0689 256 0.0839 299 0.0966 171 0.0507 214 0.0693 257 0.0842 300 thru 400 0.0969172 0.0511 215 0.0696 258 0.0845 173 0.0516 216 0.0700 259 0.0848 174 0.0521 217 0.0704 260 0.0851

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H-31

Payments and Estimates

H-32

Federal or State Income Tax Withheld – Entered automatically from the entries made on Forms W-2, 1099, SSA 1099, etc. For Form 1099 withholding not listed elsewhere, enter in Other Federal Withholdings or Other State Withholdings.

2017 Estimated Tax Payments – Federal and/or State Open Federal Estimated Payments for 2017 or State Estimated Payments and enter: • Any refund amount from last year that was creditedtoward estimated taxes for the current year

• Enter actual amount paid in each quarter.

Amount Paid with Extension Request – Directly enter any payment made. When preparing a Prior year return, remember to ask if payments have been made.

Excess Social Security - Calculated automatically if there are multiple W-2s for an individual and the combined wages exceed the maximum subject to Social Security for the year.

Amount to be Applied to 2018 Estimated Tax Enter the amount of overpayment to apply to 2018.

TaxSlayer navigation: Federal Section>Payments & Estimates

See Page K-18

TaxSlayer should not calculate a penalty. If it does, a waiver can be requested. To remove 1040, line 79, check box to request a waiver and use reason of “To be calculated by IRS.”

NTTC 12/17/2017

Payments and Estimates

Federal Estimated Payments for 2016

State Estimated Payments

Ottier Federal Withholding

Other State Withholdings

Underpayment of Estimated Tax

Apply Overpayment to Next Year's Taxes

Vouchers for Next Year's Estimated Payments

Amount Paid with Extension

< Back

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*

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* To apply state refunds to next year's taxes, go to State>Payments>Apply Your State Refund

I-1

Earned Income TableEarned Income for EIC, Additional Child Tax Credit, and Dependent Care Credit

Includes Doesn’t include

Taxable wages, salaries, and tips

Union strike benefits

Taxable long-term disability benefits received prior to minimum retirement age

Net earnings from self-employment

Gross income of a statutory employee

Household employee income

Nontaxable combat pay election

Non-Employee compensation

The rental value of a home or a housing allowance provided to a minister as part of the minister’s pay (Out of Scope)

Interest and dividends Social security and railroad retirement benefits Welfare benefits Workfare payments Pensions and annuities (except if disability pension and taxpayer is under

minimum retirement age) Veteran’s benefits (including VA rehabilitation payments) Workers’ compensation benefits Alimony Child support Nontaxable foster-care payments Unemployment compensation Taxable scholarship or fellowship grants that aren’t reported on Form W-2 Earnings for work performed while an inmate at a penal institution or on work

release* Salary deferrals (for example, under a 401(k) or 403(b) plan or the Federal Thrift

Savings Plan) The value of meals or lodging provided by an employer for the convenience of the

employer Disability Insurance payments Excludable dependent care benefits (line 24 of Form 2441) Salary reductions such as under a cafeteria plan Excludable employer-provided educational assistance benefits (may be shown in

box 13 of Form W-2) Anything else of value received from someone for services performed, if it isn’t

currently taxable, which include Medicaid waiver payments that have been excluded from income.

• Claiming a child who doesn’t meet the residency and relationship requirements

• Married taxpayers incorrectly filing as a single or head of household

• Incorrectly reporting income, particularly income and expenses from self employment

• Incorrect social security numbers

Common EIC Filing Errors

*Note: This particular income is entered both as normal income and again as other income>othercompensation>prisoner income so as to be not counted as earned income for EITC, ACTC or CDCC.

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Tab I

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Part A Rules for Everyone

Part B Rules If You Have a Qualifying Child

Part C Rules If You Don’t

Have a Qualifying Child

Taxpayers & qualifying children must all have SSN that is valid for employment by the due date of the return (including extensions).

Child must meet the relationship, age, residency test and joint return tests but not the support test. The child doesn’t have to be your dependent. If child is married, see Note below.

Must be at least age 25 but under age 65 as of December 31.*

Filing status can’t be married filing separately.

Qualifying child can’t be used by more than one person to claim the EIC.

Can’t be the dependent of another person.

Must be a U.S. citizen or resident alien all year.

The taxpayer can’t be a qualifying child of another person.

Must have lived in the United States more than half the year.

Can’t file Form 2555 or Form 2555-EZ (relating to foreign earned income).

Can’t be a qualifying child of another person.

Investment income must be $3,450 or less.

Can’t be a qualifying child of another person.

Part D Earned Income and AGI Limitations

You must have earned income to qualify for this credit.Your earned income and AGI must be less than:

$48,340 (53,930 for married filing jointly) if you have three or more qualifying children,

$45,007 ($50,597 for married filing jointly) if you have two qualifying children,

$39,617 ($45,207 for married filing jointly) if you have one qualifying child, or

$15,010 ($20,600 for married filing jointly) if you don’t have a qualifying child.

Summary of EIC Eligibility Requirements

Note: To meet the joint return test, the child cannot file a joint return for the year unless it’s to only claim a refund of income tax withheld or estimated tax paid.

Caution: Taxpayers cannot file an amended return to claim the credit for a year they did not originally have a valid social security number.

*Taxpayers turning 25 on January 1st are considered to be 25 as of December 31st. Taxpayers reaching theage of 65 on January 1st are still considered 64 as of December 31st.

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Note: Disaster relief – Qualifying taxpayers can elect to substitute earned income from tax year 2016 for the calculation of EITC and CTC. Puerto Rico taxpayers can substitute Social Security taxes paid for earned income. See Public Law 155, H.R. 3823 Disaster Tax Relief and Airport and Airway Extension Act of 2017. For more information about other tax relief related to Hurricane Harvey, Hurricane Irma, and other disasters, see the IRS disaster relief page and the Fact Sheet for Federally Declared Disasters.

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Qualifying Child of More than One PersonIf the child meets the conditions to be the qualifying child of more than one person, only one person can claim the child. The following rules apply if multiple taxpayers claim the same qualifying child. Review all of the conditions to see which one applies.

• If only one of the persons is the child’s parent, the child is treated as the qualifying child of theparent but see 4th bullet below.

• If the parents don’t file a joint return together but both parents claim the child as a qualifyingchild, the IRS will treat the child as the qualifying child of the parent with whom the child livedfor the longer period of time in 2017. If the child lived with each parent for the same amountof time, the IRS will treat the child as the qualifying child of the parent who had the higheradjusted gross income (AGI) for 2017.

• If no parent can claim the child as a qualifying child, the child is treated as the qualifying childof the person who had the highest AGI for 2017.

• If a parent can claim the child as a qualifying child but no parent does so claim the child, thechild is treated as the qualifying child of the person who had the highest AGI for 2017, butonly if that person’s AGI is higher than the highest AGI of any of the child’s parents who canclaim the child.

EIC Without a Qualifying Child Probe/Action: Ask the taxpayer:

Can you (or your spouse, if filing jointly) be claimed as a dependent by another person?

If NO, go to Step 2. If YES, STOP. You can’t claim the EIC.

Were you (or your spouse, if filing jointly) at least 25 but under age 65 on December 31 of the tax year? Taxpayers born on January 1st are considered to be of age as of December 31st. Taxpayers reaching the age of 65 on January 1st are still considered 64 as of December 31st.

If NO, STOP. You can’t claim the EIC.If YES, go to Step 3.

Did you (and your spouse, if filing jointly) live in the United States for more than half (at least 1831 days) of the tax year?

1 More than 183 days in a leap year.

If NO, STOP. You can’t claim the EIC.If YES, compute EIC using the appropriate EIC worksheet.

Note: If you can’t claim the EIC because your qualifying child is treated under the tiebreaker rules as the qualifying child of another person for 2017, you may be able to take the EIC using a different qualifying child, or take the EIC if they qualify using the rules for people who don’t have a qualifying child.

step

1

step

2

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3

*Taxpayers turning 25 on January 1st are considered to be 25 as of December 31st. Taxpayers reaching theage of 65 on January 1st are still considered 64 as of December 31st.

Note 1: Taxpayers meeting the above age criteria should file a paper return to avoid a potential rejected electronic filed return AND IN YEAR TAXPAYER TURNS 65 IF DEATH OCCURS BEFORE BIRTHDAY.

Note: Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child.NTTC 12/17/2017

I-6

Disallowance of Certain Refundable Credits

Form 8862, Information to Claim Certain Refundable Credits After Disallowance must be completed for any taxpayer whose EIC, child tax credit (CTC)/additional child tax credit (ACTC), or American opportunity tax credit was previously reduced or disallowed and the taxpayer received a letter saying they had to complete and attach Form 8862 to claim the credit(s) the next time.

If the IRS determined a taxpayer claimed the credit(s) due to reckless or intentional disregard of the rules the taxpayer can’t claim the credit(s) for 2 tax years. If the error was due to fraud, then the taxpayer can’t claim the credit(s) for 10 tax years.

Taxslayer Navigation: Federal section>Deductions>Credit menu>Earned Income Credit

NTTC 12/17/2017

Not Eligible for EICCheck here if this return is NOT eligible to receive the Earned Income Tax Credit (EITC)

J I understand that checking the box above determines whether this return might be able to receive the Earned Income Tax Credit (EITC),and if the box is checked this return will not receive EITC

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Not Eligible for EIC

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A taxpayer does not qualify for EIC if he or she was a nonresident alien during any part of the year (unless filing MFJ with a citizen or resident) or if he or she is the qualifying child of another taxpayer.

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Not Eligible If the taxpayer is not eligible for Earned Income Credit for any reason (including a previous year disallowance), click BEGIN on the Not Eligible for EIC line.

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Select both the check boxes after reading them carefully to determine that the taxpayer agrees to not claim earned income credit on this return.

J-1

Education ExpensesThe following are qualified education expenses for the purposes of tax-free scholarships and fellowships:• Tuition and fees required to enroll at or attend an eligible educational institution.• Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at

the eligible educational institution. These items must be required of all students in your course of instruction.Qualified education expenses don’t include the cost of:

Worksheet 1-1. Taxable Scholarship and Fellowship Income

Tax Treatment of Scholarship and Fellowship PaymentsA scholarship or fellowship is tax free (excludable from gross income) only if:• You are a candidate for a degree at an eligible educational institution. You are a candidate for a degree

if you attend a primary or secondary school or are pursuing a degree at a college or university, or attendan educational institution that offers a program of training to prepare students for gainful employment in arecognized occupation and is authorized under federal or state law to provide such a program and is accreditedby a nationally recognized accreditation agency.

A scholarship or fellowship is tax free only to the extent:• It doesn’t exceed your qualified education expenses;• It isn’t designated or earmarked for other purposes (such as room and board), and doesn’t require (by its terms)

that it can’t be used for qualified education expenses; and• It doesn’t represent payment for teaching, research, or other services required as a condition for receiving the

scholarship. (But for exceptions, see Payment for services in Publication 970).Use Worksheet 1–1 to figure the amount of a scholarship or fellowship you can exclude from gross income.

1 However, a scholarship or fellowship grant isn’t treated as tax free to the extent the student includes it in gross income (the student may or may not be required to file a tax return) for the year the scholarship or fellowship grant is received and either: - The scholarship or fellowship grant (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses. - The scholarship or fellowship grant (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses.You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. See Pub 970 and the Treasury fact sheet on pell grants for more information.

• Room and board• Research

• Travel• Clerical help

• Equipment and other expenses not required for enrollment in or attendance at an eligible educationalinstitution

1. Enter the total amount of any scholarship or fellowship for the tax year. ....

• If you are a degree candidate at an eligible educational institution, go to line 2.• If you aren’t a degree candidate at an eligible educational institution, stop here. The

entire amount is taxable.

2 Enter the amount from line 1 that was for teaching, research, or any other services required as a condition for receiving the scholarship. (Don’t include amounts received for these items under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program.)

3. Subtract line 2 from line 1 ....................................................................................

4. Enter the amount from line 3 that your scholarship or fellowship required you to use for otherthan qualified education expenses .............................................................

5. Subtract line 4 from line 3. ...................................................................................

6. Enter the amount of your qualified education expenses (see Education Expenses above) ..................................................................................................................

7. Enter the smaller of line 5 or line 6. This amount is the most you can exclude from your grossincome1 (the tax-free part of the scholarship or fellowship) .......................

8. Subtract line 7 from line 5 ....................................................................................

9. TaxabIe part. Add lines 2, 4, and 8. This amount is taxable to the person in whose name thescholarship was received. ........................................................

1. _____________

2. _____________

3. _____________

4. _____________

5. _____________

6. _____________

7. _____________

8. _____________

9. _____________

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Tab J

Highlights of Education Tax Benefits for Tax Year 2017

This chart highlights some differences among the benefits discussed in this publication. See the text for definitions and details. Don’t rely on this chart alone.

Caution: You generally can’t claim more than one benefit for the same education expense.

Scholarships, Fellowships, Grants, and Tuition Reductions

American Opportunity Credit

Lifetime Learning Credit

Student Loan Interest Deduction

Tuition and Fees Deduction

CoverdellESA†

Qualified Tuition Program (QTP or 529)†

Education Exception to Additional Tax on Early IRADistributions†

Education Savings Bond Program†

Employer- Provided Educational Assistance†

Business Deduction for Work-Related Education

What is your benefit?

Amounts received may not be taxable

Credits can reduce the amount of tax you have to pay.

40% of the credit may be refundable (limited to $1,000 per student).

Credits can reduce amount of tax you must pay

Can deduct interest paidon loans madefor taxpayer, spouse or dependent at time of loan.

Must be liable for loan

Can deduct expenses

Earnings not taxed

Earnings not taxed

No 10% additional tax on early distribution

Interest not taxed

Employerbenefits not taxed

Can deduct expenses

What is the annual limit?

None $2,500 credit per student

$2,000 credit per tax return

$2,500 deduction

$4,000

deduction $2,000 contribution per beneficiary

None Amount of qualified education expenses

Amount of qualified education expenses

$5,250 exclusion Amount of qualifying work-related education expenses

What expenses qualify besides tuition and required enrollment fees?

Course-related expenses such as fees, books, supplies, and equipment

Course-related books, supplies, and equipment

Amounts paid for required books, etc., that must be paid to the educational institution, etc., ARE required fees

Books Supplies Equipment

Room & board

Transportation

Other necessaryexpenses

Amts paid forrequired books,etc. that MUSTbe paid to theeducational institution ARErequired fees


Expenses for special needs services

Payments to QTP

Higher education: Room and Board if at least half-time student

Elem/sec (K-12) education:

TutoringRoom & boardUniformsTransportationComputer access

Supplementary expenses


Room & board if at least half-time student

Expenses for special needs

Computer Equipment & Technology

Books Supplies Equipment including computer or peripheral equipment, computer software and internet access and related services if used primarily by the student enrolled at an eligible education institution

Room & board if at least half-time student

Expenses for special needs services

Payments toCoverdell ESA

Payments to QTP


Transportation

Travel

Other necessary expenses

NTTC 12/17/2017J-2

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OOS if taxable

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OOS if taxable

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Unused expenses for professional development of an educator can be claimed as an educator expense adjustment.

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† Any nontaxable distribution is limited to the amount that doesn't exceed qualified education expenses. That is, if a distribution exceeds the allowed qualified expenses for a particular benefit, the excess is taxable.

J-3

Scholarships, Fellowships, Grants, and Tuition Reductions

American Opportunity Credit

Lifetime Learning Credit

Student Loan Interest Deduction

Tuition and Fees Deduction

CoverdellESA†

Qualified Tuition Program (QTP)†

Education Exception to Additional Tax on Early IRADistributions†

Education Savings Bond Program†

Employer- Provided Educational Assistance†

Business Deduction for Work-Related Education

What education qualifies?

Undergraduate & graduateK-12

Undergraduate& graduate

A graduate student can claim the American OpportunityCredit if and only if the student hasn’t completedthe first four years before the beginning of the tax year

Undergraduate & graduateCourses to acquire or improve job skills

Undergraduate & graduate


Undergraduate & graduateK-12





Required by employer or law to keep presentjob, salary, status

Maintain or improve job skills

What are some of the other conditions that apply?

Must be in degree or vocational program

Payment of tuition and required fees must be allowed under the grant

Can be claimed for only 4 tax years (which includes years Hope credit claimed)Cannot file MFS Must be enrolled at least half-time in degree programfor at least 1 term No felony drug conviction(s)

Must not have completedfirst 4 years of postsecondaryeducation before end of preceding tax year

Cannot file MFS Must have been at least half-time student in degree program

Can’t claim both deduction & education credit for same student in same year

Cannot file MFS

Assets must be distributed at age30 unless special needs beneficiary

No other conditions

No other conditions

Applies only to qualified series EE bonds issued after 1989 or series I bonds

No other conditions

Can’t be to meet minimum educational requirementsof preset trade/business

Can’t qualify you for new trade/business

In what income range do benefits phase out?

No phaseout $80,000 -$90,000

$160,000 -$180,000 for joint returns

$56,000 -$66,000


$65,000 -$80,000


$60,000 - $80,000

$130,000 - $160,000 for joint returns

$95,000 -$110,000


No phaseout No phaseout $76,000 -$91,000

$113,950 -$143,950 for

joint and QWreturns

N

No phaseout

Highlights of Education Tax Benefits for Tax Year 2017

Caution: Taxpayers filing MFS cannot claim deductions for the American Opportunity Credit, Lifetime Learning Credit, or Student Loan Interest Deductions or tuition and fees if extended.

NTTC 12/17/2017

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OOS if taxable

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OOS if taxable

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Eligible Institution 1

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Eligible Institution 1: Institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities Eligible Institution 2: Education institution eligible to participate in the federal student aid program

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No phaseout

J-4

Education CreditsProbe/Action: To determine if a taxpayer qualifies for the Education Credit.

1 None of the credit is refundable if (1) the taxpayer claiming the credit is (a) under age 18 or (b) age 18 at the end of the year, and their earned income was less than one-half of their own support or (c) a full time student over 18 and under 24 and their earned income was less than one-half of their own support; and (2) the taxpayer has at least one living parent, and; (3) the taxpayer doesn’t file a joint return

Note: There are two 4-year tests for American Opportunity Credit. First, the credit can be taken only four tax years. Second, the student must not have completed four years of academic credit before the beginning of this tax year. Follow the examples in the Who is Eligible Student for the American Opportunity Credit section in Publication 970 for additional information.

Comparison of Education Credits

Who Can Claim the Credit?

• Taxpayers who paid qualified educational expenses of higher education for an eligible student and who are not filing MFS.

• Taxpayers who paid the education expenses for a student enrolled at or attending an eligible educational institution. (todetermine if eligible, see http://ope.ed.gov/accreditation)

• The eligible student is either the taxpayer, taxpayer’s spouse or a dependent for whom the taxpayer claims an exemptionon the tax return.

Note: Qualified education expenses paid by a dependent for which an exemption is claimed, or by a third party for that dependent, are considered paid by the taxpayer. If a student isn’t claimed as a dependent (even if eligible to be claimed), only the student can claim an education credit no matter who paid the expenses. This doesn’t entitle the student to claim a personal exemption on his/her tax return. Anyone paying the expenses (even directly to the institution) are considered to have given a gift to the student who in turn is treated as having paid the expenses.

TaxSlayer Navigation: Federal Section>Deductions>Credits>Education Credits 1098T

Note: New law passed placing a Ban on claiming the American Opportunity credit. If taxpayers claim the American Opportunity credit even though they are not eligible, they can be banned from claiming the credit up to 10 years.

American Opportunity Credit Lifetime Learning Credit

Maximum credit Up to $2,500 credit per eligible student Up to $2,000 credit per return

Limit on modified adjusted gross income (MAGI)

$180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er)

$132,000 if married filing jointly; $66,000 if single, head of household, or qualifying widow(er)

Refundable or nonrefundable

40% of credit may be refundable1; the rest is nonrefundable

Nonrefundable—credit limited to the amount of tax you must pay on your taxable income

Number of years of postsecondary education

Available ONLY if the student had not completed the first 4 years of postsecondary education before 2017

Available for all years of postsecondary education and for courses to acquire or improve job skills

Number of tax years credit available

Available ONLY for 4 tax years per eligible student (including any year(s) Hope credit was claimed

Available for an unlimited number of tax years

Type of program required Student must be pursuing a program leading to a degree or other recognized education credential

Student does not need to be pursuing a program leading to a degree or other recognized education credential

Number of courses Student must be enrolled at least half-time (as defined bythe institution) for at least one academic period beginningduring 2017 (or the first 3 months of 2018 if the qualified expenses were paid in 2017

Available for one or more courses

Felony drug conviction As of the end of 2017, the student had not been convicted of a felony for possessing or distributing a controlled substance

Felony drug convictions do not make the student ineligible

Qualified expenses Tuition, required enrollment fees, and course materials that the student needs for a course of study whether or not the materials are bought at the educational institution as a condition of enrollment or attendance

Tuition and required enrollment fees (including amounts required to be paid to the institution for course-related books, supplies, and equipment)

Payments for academic periods

Payments made in 2017 for academic periods beginning in 2017 or beginning in the first 3 months of 2018

TIN needed by filing due date

Filers and students must have a TIN by the due date of their 2017 return (including extensions)

Educational institution’s EIN

You must provide the educational institution’s employer identification number (EIN) on your Form 8863

NTTC 12/17/2017

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Form 1098-T is required to claim American Opportunity Credit. See page 11.

https://ope.ed.gov/accreditation/

Completing the e-File Section (continued) Split Refund Option TaxSlayer requires double entry of bank routing and account numbers for split refunds. If your site has enabled Form 8888 in the Office Setup, the e-file bank information screen will include entry sites for up to three bank accounts, one paper check and three savings bonds. Many financial advisors recommend that low- to moderate-income families put part of their tax refund into a savings account for emergencies. This screen allows that.

K-3

Click on Pull Refund to enter full refund amount in the first bank account.

NTTC 12/29/2017

Taxpayer Bank Account Information

0 Note:Ttiis bank informationMUST be accurate for your return to process correctly.

You may split your refund in up to 3 accounts, paper check and purchase up to 3 savings bonds. The total deposits andsavings bond purchases must equal your total refund of 3363.00

Bank AccountsEnter bank account information where you would like your refund deposited.

Bank Account 1

Account Type Bank Name Deposit AmountPull RefundChecking v $0.00

Routing Number Account Number

Confirm Rtn Number Confirm Account Number

Bank Account 2

Account Type Bank Name Deposit Amount

Checking v $0.00

Routing Number Account Number

Confirm Rtn Number Confirm Account Number

K-4

Completing the e-File Section (continued)

Third Party Designee Info

Third party designee info can be completed if the taxpayer wishes, but the designee is never the volunteer preparer.

NTTC 12/29/2017

Taxpayer Bank Account information W

Paper Check Allocation

Allocate portion of the refund to be issued as a papercheck. $ 0.00

Purchase Savings BondsYou can purchase up to 3 savings bonds with the remainder of your refund.

Bond amounts must be in § 50 increments

0 I do not want to purchase this bondPurchase A Bond

Amount to be used for bond purchase for yourself $ 0.00

0 i do not want to purchase this bondPurchase another bend for yourself or someone eise

Bond Amount $ 0.00

Enter the owner's name (First then Last) for the bondregistration

If you would like to add a co-owner or beneficiary,, enter thename here (First then Last)

Is Beneficiary?

This information is optional

Designee First Name

Designee Last Name

Designee Phone )

Designee Pin

Click checkbox to easily remove the data from each field

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(continued)

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Consent to Disclose Carry Forward Information to VITA/TCE Preparation Sites

K-4.1

• If taxpayer(s) wish their carry forwardinformation to be available at all VITA/TCE sitesin the spring of 2019 (for a 2018 return), selectGRANT.

• If not, select DENY. Their information will still beavailable at the current site.

• For either selection, enter any 5-digits as a PINand today’s date for each taxpayer. The PIN willserve as an electronic signature, so thetaxpayer(s) do NOT have to sign a paper form.The PIN will not be needed again.

• The unsigned form should be kept with thetaxpayers’ 2017 return.

NTTC 12/17/2017

DRAFT – Subject to changeConsent to Disclose Carry Forward Information to VITA/TCE Tax Preparation Sites

Defined Terms

1 year - Draft: 'Disclosure" The Software Developer will disclose Personal Information from the tax return to any VITA/TCE site

that Taxpayer selects to prepare a tax return in the next filing season (Tax Year 2018).

1 Year - Draft: ’Purpose" The purpose of the Disclosure is to provide Taxpayers Personal Information to any VITA/TCE site that

Taxpayer selects to prepare a tax return in the next filing season to assist the VITA/TCE Site in preparing a tax return forTaxpayer

Consent Status

O ( / we, the Taxpayer have read the above information. By typing in my / our taxpayer PIN(s) and checking this input I / werepfr^ consent to "Consent to Disclose Carry Forward Information to VITA/TCE Tax Preparation Sites" as statedlie

above.

I / we,the Taxpayerhere^OpWl consent to "

above.

read the above information. By typing in my / our taxpayer PIN(s) and checking this input * / weirts ntto Disclose Cany Forward Information to VITA/TCE Tax Preparation Sites" as stated

Primary PIN (enter 5 nbcnbers)

Primary PIN Date

mm/dd/yyy]

Secondary PIN (enter 5 numbers)

Secondary PIN Date

mm/dd/yyy]

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K-5


QuestionsAnswer national and local questions

Use these fields for information that is helpful to your site. For example, these fields could be used to enter the preparer’s name and/or new versus returning taxpayers. These fields are used by the military to report rank, grade, enlisted/retired, etc

After the end of the tax season a custom report can be created.

State ID (Optional)Appears only if there is a state return

Select driver’s license or ID,license number,date issued,date expires andissuing state.

If taxpayer’s license has expired, select None Available. Some states require a drivers license number to e-file. See state requirement and work around if applicable.

Select SAVE.

1. Other than English what language is spoken in your home? Please Select

2. Are you or your spouse a Veteran from the US Armed Force? Please Select

3. Do you or any member of your household have a disability? Please Select

4. Was this return prepared using a Virtual or Drop-Off method? Please Select

You may provide your state issued id or drivers license in the section below. This information is optional but may assist the state in verifying your identity and processing your return.

Taxpayer ID Information

Type <None Available

Number <

IssueDate mm/dd/yyyy <

mm/dd/yyyy <ExpireDate

No Expiration date

IssueState Please Select <

NY Document IDIf issue state is NY. this field is required

PIN Guidelines

The Practitioner PIN method is the only electronic signature method for taxpayers using TaxSlayer software. The ERO may enter the taxpayer’s PINs in the electronic return record before the taxpayers sign Form 8879, but the taxpayers must sign and date the appropriate form before the ERO originates the electronic submission of the return. The taxpayer must sign and date the Form 8879 after reviewing the return and ensuring the tax return information on the form matches the information on the return.

Practitioner PIN Guidelines The PIN can be any five numbers except all zeros. If filing a joint return, a PIN is needed for the taxpayer and spouse.

How to use the Practitioner PIN in TaxSlayer® • 98765 is defaulted in Office Setup• The information is pulled from Office Setup to Part III of Form 8879

Form 8453, Transmittal for an IRS E-file Return * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * DO NOT mail Form 8453 or any taxpayer documents anywhere. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Capital gain or loss details (e.g. brokerage statements), Forms 8332 and powers of attorney can be scanned and attached as PDFs before e-filing if the site has scanning capability.

To attach a PDF see Schedule D Capital Gains screen in TaxSlayer. All attachments are made on that screen.

If not scanned and attached, point out the forms to the taxpayers so they will know what to send if the IRS requests the additional documentation.

Paper returns should have all documents included and are to be mailed by the taxpayer.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Do not send any documents to the local SPEC Relationship Manager

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

K-6 NTTC 12/17/2017

Power of Attorney • Read Pub 17 on Power of Attorney & Signatures. For additional details, see below.• Scan the POA to a PDF and attach the PDF to the return prior to creating the e-file. All

PDFs are attached from the Schedule D Capital Gains screen in TaxSlayer.

Even when the taxpayer’s agent is using a power of attorney different than Form 2848, follow the same process.

1. A valid General Power of Attorney (POA), naming a representative as Attorney-in-Fact, isrequired if s/he asks to have a return completed for someone else and intends to signthat return on behalf of those whom s/he is representing.

2. The POA must be either legally signed by taxpayer and notarized or issued by a court.3. The POA must contain a statement which defines the authority to prepare, sign, and file

income tax returns with federal, state, and local or other governmental bodies.4. Form 2848, when properly completed can serve as a Power of Attorney for tax matters only. The circumstances under which another person may sign a return using Form 2848 are limited to:

a) Disease or Injury;b) Continuous absence from the United States for a period of 60 days prior to date required

by law for filing the return; orc) Specific permission is requested of and granted by the IRS for other good cause.

Tax-Aide volunteers should not complete Form 2848 on behalf of clients. It is up to the individual

taxpayer to complete Form 2848 and bring it to the site for handling with the return.

5. If the return is mailed to the IRS, then a copy of the POA must be attached to the Form 1040.6. A Power of Attorney (POA) does not survive the death of the taxpayer and is not valid for a

deceased individual. If the return is being prepared for a deceased taxpayer, then signingof the return depends on the specific circumstances:

a. A return signed by a surviving spouse—no documentation required;b. A return signed by a court appointed administrator—court appointment papers required;c. A return signed by a court appointed executor—court appointment papers required and

return must be paper filed; ord. A return signed by a personal representative who has not been appointed by a court

(such as an heir of decedent's assets)—no documentation required, but Form 1310required if requesting a refund

7. If a counselor does not feel comfortable working with a POA, court appointment papers orForm 1310, check with other volunteers. If no-one else is available, refer the taxpayer toa paid preparer.

K-12.1NTTC 12/17/2017

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Printing the Tax Return TaxSlayer Navigation: e-File Section>last screen (Submission)>Print Return

A copy of the return can be printed by selecting the Printer Icon located on the Client Tax Return row from the Office Client List. A copy of the tax return can also be printed from within the return. The print location from inside the return is located on the Submission page under the e-File section. After all required information has been entered on the E-file page, you will click on Save. The program will display the Submission page. From this page click on the drop down arrow, select the appropriate print set, and click on Print Return. Once the PDF is generated you can choose the pages you wish to print and the number of copies you wish.

Distributing Copies of ReturnsTaxpayer • Form 1040 with all forms/schedules including signed

Form 8879 and Form 8453, if applicable • Organize the taxpayer’s copy of the return according

to the attachment sequence at the top right corner of each form. Any supplemental schedules are put at the end.

• Form 8332, if applicable• Original Power of Attorney, if applicable• State forms/schedules, as applicable• All other taxpayer documents including Form(s) W-2 and

Form(s) 1099

Paper Federal Return • Signed Form 1040 with all forms/schedules• Organize the federal copy of the return

according to the attachment sequence at thetop right corner of each form. Anysupplemental schedules are put at the end.

Paper State Return • Signed state return with all forms andschedules. • Attach a copy of the federal return if required

by state instructions.

Where to File Paper Returns When a paper return must be filed, advise the taxpayer to sign and mail the federal return to the applicable IRS address for the state where the taxpayer lives. See Tab P for a list of addresses.

The taxpayer must be given an exact copy of the paper return to be filed. Additional copies of the schedules and worksheets should also be provided. If applicable, State income tax returns should be signed and mailed to the appropriate address for that state. State mailing address can be found on the state tax form or on the tax department’s website.

K-13

Pointers for Direct Deposit of Refunds Pointers for Direct Deposit of Refunds

1. Using a check or documentation from the financial institution as proof of account, verify: • Routing Transit Number (RTN). The RTN must

contain 9 digits and begin with 01 through 12 or 21 through 32.

• Depositor Account Number (DAN). The DAN can be up to 17 characters. Include hyphens but omit spaces and special symbols. Don’t include the check number or the dollar amount on canceled checks. On the sample check below, the account number is 20202086.

2. Don’t use a deposit slip for proof of RTN as this may not be the same RTN used for direct deposit. For direct deposit into a savings account, the taxpayer should obtain a statement from the financial institution to verify the routing and account number for direct deposit. For direct deposit into a checking account, if the taxpayer doesn’t have a cancelled check, the taxpayer should also contact their financial institution.

3. Entering the incorrect RTN and/or DAN will result in a 4–6 week delay of the refund, or it may go into some else’s account. If the direct deposit is voided, a paper check will automatically be mailed to the address on the electronic tax form.

4. Double-check the RTN of the financial institution if: • You are unfamiliar with the financial institution.

can’t accept direct deposits.) • The RTN is for a credit union, which is payable

through another financial institution. The taxpayer should contact his or her credit union for the correct RTN.

5. Savings Bonds - Taxpayers can buy U.S. savings bonds with their federal tax refund. Even if the taxpayer doesn’t have a bank account or a Treasury account they can elect this option. Taxpayers can make bond purchases for themselves, add beneficiaries or co-owners, and make bond purchases for someone other than themselves. Refer to Form 8888 or www.IRS.gov for more details.

6. Remember the split refund option: If a taxpayer chooses to direct deposit his or her refund into two or three accounts, you will need to complete Form 8888, Allocation of Refund (Including Savings Bond Purchases).

Caution: Direct deposit of a taxpayer’s ! refund is to be made to an account (or

accounts) only in the taxpayer’s name. Advise taxpayers their refund may

only be deposited directly into his/her own account(s). Taxpayer’s federal and state refunds can’t be deposited into VITA/TCE Volunteer or any associated partners’ personal or business bank/debit card accounts.

Note: Don’t use deposit slip as proof of account because the routing number may be different than on a check.

K-14

Caution: Financial institutions generally don’t allow a joint refund to be deposited into an individual account. The IRS isn’t responsible if a financial institution refuses a direct deposit.

Note: To combat fraud and identity theft, IRS permits a maximum of three refunds to be electronically deposited into a single financial account. The fourth and subsequent refunds automatically will convert to a paper refund check and be mailed to the taxpayer.

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Balance Due Returns (amount owed on return) Form 1040, 1040A, or 1040EZ Instructions for additional information)

General Information • Taxpayers don’t have to pay if balance due is less than $1. • Payment in full is due by the April filing due date, to avoid interest and penalties. • Taxpayer should file his or her return by the April filing due date, to avoid a failure-to-file penalty. • There are separate penalties for filing late and paying late. The late filing penalty is higher. • Advise taxpayers to file the return on time, even if they can’t pay the full amount owed. They should pay as much

as they can with the return to reduce penalties and interest.

Payment Methods 1. Electronic Funds Withdrawal

E-filing allows taxpayers to file their return early and schedule their payment for withdrawal from their checking or savings account on a future date up to the April filing due date.

2. IRS Direct Pay

IRS direct pay at irs.gov is a free one-time payment from your checking account to the IRS. Use this secure service to pay your tax bill or make an estimated tax payment directly from your checking or savings account at no cost to you. You’ll receive instant confirmation that your payment has been submitted. Just follow the easy steps below. Bank account information isn’t retained in IRS systems after payments are made.

It takes just 5 easy steps to make a payment:

Step 1 Provide your tax information

Step 2 Verify your identity

Step 3 Enter Your payment information

Step 4 Review and electronically sign the transaction

Step 5 Print or record your online confirmation number

3. Check or money order payments • Don’t attach the payment to the return. • Refer to instructions on Form 1040V, Payment Voucher. • Submit the payment with a properly completed Form 1040V. • No cash payments.

4. Credit card payments • American Express, Discover, Mastercard, or Visa cards are accepted. • A convenience fee will be charged by the service providers. • Visit IRS.gov/E-pay or call service provider for details.

1-888-UPAY-TAXTM (1-888-872-9829) 1-877-754-4413 (Customer Service) www.officialpayments.com/fed

1-888-PAY-1040TM (1-888-729-1040) 1-888-658-5465 (Customer Service) www.PAY1040.com

844-872-9829 Payment 855-508-0160 Live Operator Service 844-825-8729

5. EFTPS (Electronic Federal Tax Payment System)

Taxpayers can use EFTPS to pay their federal taxes, but they must enroll first. EFTPS is a fast, easy, convenient and secure service provided free by the Department of Treasury. For more information or to enroll visit IRS.gov/E- pay or call EFTPS Customer Service at 1-800-316-6541 (for individual payments). TTY/TDD help is available by calling 1-800-733-4829.

Note: You must have a valid Social Security Number (SSN) to use this application. This application can’t accommodate Individual Taxpayer Identification Numbers (ITINs)

Continued on next page

K-15

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In the e-file section, choose direct debit. The required "debit telephone #" should be the taxpayer's telephone number.

https://www.irs.gov/payments

https://www.officialpayments.com/fed/index.jsp

https://www.pay1040.com/

Balance Due Returns (continued)6. PayNearMeThrough a partnership with OfficialPayments.com and the PayNearMe Company, taxpayers can now make a cash payment without the need of a bank account or credit card at more than 7,000 7-Eleven stores nationwide. To find a location near you, visit the PayNearMe locations

PayNearMe The quickest, easiest way to make a tax payment is online. If you prefer to pay in cash, the IRS offers a way for you to pay your taxes at a participating retail store. It generally takes five to seven business days to process your payment. Be sure to plan ahead of your due date to ensure your payment is posted timely. Step 1 Visit the Official Payments site and follow the instructions to make a cash payment with PayNearMe.

Step 2 You'll receive an email from Official Payments confirming your information. The IRS will then verify your information. This process may take two to three days.

Step 3 After the IRS verifies your information, PayNearMe will then send you an email with a link to your payment code and instructions. Either print the payment code at home or send it to your smart phone.

Final step Go to the retail store listed in the PayNearMe email and ask the clerk to scan or enter your payment code. You will receive a receipt from the store after they accept your cash. This receipt is confirmation of your payment and should be kept for your records. It usually takes two business days for your payment to post to your account.

Frequently Asked Questions • Is there a fee? The cash payment option is $3.99 per payment.

• How long does it take for my payment to post? It usually takes two business days for your paymentto post to your account. Be sure to make your payment in plenty of time before your due date to avoidinterest and penalties.

• Is there a limit to how much I can pay? Payment limits are up to $1,000 per day. Other limits mayapply.

• Where can I make my cash payment? This cash option is only available at participating 7-Elevenlocations in 34 states. Visit http://paynearme.com/en/approved-payment-locations/ to find a locationnear you.

• What should I do if I received an email from the IRS about making a cash payment but have notattempted to do so? The IRS continues to remind taxpayers to watch out for email schemes.Taxpayers will only receive an email from OfficialPayments.com or PayNearMe if they have initiated thepayment process. Report all unsolicited email claiming to be from the IRS or an IRS-related function [email protected].

• Who do I call if I have an issue? Contact PayNearMe customer service (888-714-0004) if you haveissues making your payment.

Web page. Visit the Payments Options Web page on IRS.gov for the most current information about tax payments.

K-16 NTTC 12/17/2017

https://www.irs.gov

https://www.irs.gov/





What if the taxpayer can’t pay? • Can you pay in full within 120 days? If taxpayers can pay the full amount they owe within 120 days, go to irs.gov to

establish your request to pay in full. By doing this, taxpayers can avoid paying the fee to set up an installmentagreement.

• Applying online for a payment agreement. If the taxpayer’s balance due isn’t more than $50,000, the taxpayer canapply online for a payment agreement instead of filing Form 9465. To do that, go to IRS.gov and enter “OnlinePayment Agreement” or “OPA” in the “Search” box.

• The taxpayer can request an extension of time to pay if paying the tax by the due date will be an undue hardship. Fordetails see Form 1127 (out of scope).

IRS On-Line Payment Agreement Application (OPA) https://www.irs.gov/individuals/online-payment-agreement-application Tax-Aide volunteers may assist taxpayers with the OPA. An email address is required. It takes about 15-30 minutes for new IRS users. Those with login username and password from getting a transcript or an Identity Protection PIN (IP PIN) can login and complete the process more quickly.

Form 9465 Installment Agreement Request Form 9465 can be completed in TaxSlayer and e-filed or mailed with the return if the taxpayer will not pay the amount owed within 120 days of the due date. It can also be mailed separately. However, see the rate schedule above.

Form 13844 Application For Reduced User Fee For Installment Agreements Form 13844 is out of scope. However, taxpayers could be given a paper copy to fill out and mail in.

For those whose total income on the 1040 line 22 falls below 250% FPL. If an application is granted, the amount of any user fee collected in excess of $43 ($31 if direct deposit set up via the OPA) will be applied against your Internal Revenue Code liabilities and reduce the amount of interest and penalties that may accrue.

Reduced User Fee Income Guidelines January, 2017 (1040 Line 22 Incomes) Size of Family Unit 48 Contiguous States and D.C. Alaska Hawaii

1 $29,700 $37,100 $34,175 2 $40,050 $50,050 $46,075 3 $50,400 $63,000 $57,975 4 $60,750 $75,950 $69,875 5 $71,100 $88,900 $81,775 6 $81,450 $101,850 $93,675 7 $91,825 $114,800 $105,575 8 $102,225 $127,800 $117,525

For each additional person, add $10,400 $13,000 $11,950

K-17NTTC 12/17/2017

Payment Options forThose Who Can't Pay Full Amount OwedIRS Set-up Fees

Type of Payment Apply with return or byphone, mail or in person

LowIncome

Apply Online

$0 $0 $0Short-term Payment Agreement (120 days or less)$225 $149 $43Long-term Payment Agreementfnotpaid through direct debit)$107 $31 $31 or $43Long- term Payment Agreementfpaid through direct debit)$89 $89 $43Restructured or Reinstated Payment Plan

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See fee schedule below.

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What if the Taxpayer Can't Pay? (continued)

Offer in Compromise If the taxpayer can’t pay through an installment agreement and/or by liquidating assets, they may be eligible for an Offer in Compromise (offer). An offer is an agreement between the taxpayer and the IRS that settles a tax debt for less than the full amount owed. The IRS may accept an offer if: • The IRS agrees that the tax debt may not be accurate,• The taxpayer has insufficient assets and income to pay the amount due in full, or• The taxpayer has exceptional circumstances and paying the amount due would cause an economic hardship

or would be unjust.

The taxpayer can use the Offer in Compromise Pre-Qualifier tool located at irs.gov (key word “offer”) to determine if an offer is a realistic option to resolve their balance due. The questionnaire format assists in gathering the information needed and provides instant feedback as to eligibility. To apply for an offer, the taxpayer must read and complete the forms located in the Offer in Compromise booklet, Form 656-B. The Form 656-B, Offer in Compromise, may be found at www.irs.gov (key word “offer”).

How can a taxpayer avoid a balance due in the future? TIP: The more withholding allowances claimed, the less taxes withheld.

If the taxpayer didn’t have enough withheld from his/her paycheck or pension income and there is an amount owed on the current return: • Advise the taxpayer to access the Withholding Calculator at IRS.gov.• On the Form W-4/Form W-4P, the taxpayer can reduce the number of allowances or request an additional

amount to be withheld.• Advise the taxpayer to submit a revised Form W-4 to the employer. For pension income taxpayers should

submit a revised Form W-4P to the pension payer. Form W-4V is used to request withholding from SocialSecurity or certain other federal government payments.

If the taxpayer had income that wasn’t subject to withholding (such as self-employment, interest income, dividend income, or capital gain income): • Explain estimated taxes to the taxpayer. In TaxSlayer®, add Form 1040-ES, Estimated Tax for Individuals, and

complete it. Discuss with taxpayer(s) whether to use the minimum required amount or the total amountexpected to be due. If the income is expected to change, use the Estimated Tax Worksheet athttp://cotaxaide.org/tools.

• Advise the taxpayer to review Publication 505, Tax Withholding and Estimated Tax. Forms or Publications can beobtained from irs.gov.

• If the taxpayer is receiving advanced premium tax credits, they should notify the Marketplace when they have anysignificant change to income, family size or a life event.

NOTE: This information only applies to federal balance due returns. For state information, consult the applicable state.

K-18 NTTC 12/17/2017



Estimated Tax Payments

Vouchers will be generated when the return is printed.

NOTE: When the IRS due date for doing any act from filing a return, paying taxes, etc. falls on Saturday, Sunday, or a legal holiday, the due date is delayed until the next business day.

You don’t have to make the payment due January 15, if you file your current tax return by February 16, and pay the entire balance due with your return.

K-19

TaxSlayer Navigation: Federal Section>Payments & Estimates>Vouchers for Next Year’s Estimated Payments; or Keyword: 1040-ES

Enter amount to be printed on each voucher Taxpayer can make pen and ink changes to a voucher if the situation changes during the year

NTTC 12/29/2017

Payments - Estimated PaymentsAmount Applied from Prior Year Refund

$

Estimated Federal Tax Paid(4/15/2017)

$


$

Estimated Federal Tax Paid(9/15/2017)$


$

AContinue

v

K-20

Notes

State Part-Year Returns If the taxpayer moves into the state from another state with a state income tax, do not prepare the return unless you are trained to complete the returns in both states. If your state is participating in the Tax-Aide State Tax Assistance Program, use it by sending a request to One-Support. If not, the taxpayer(s) will be better served by going to a paid preparer—or looking up the State Instructions and preparing the return themselves on the state Revenue Department websitee. The following states have no income tax: AK, FL, NV, SD, TX, WA, WY.

Following are some cautions and notes that may help in preparing part-year resident returns.

• Some states, but not all, have part-year and/or nonresident state returns. In TaxSlayer,changing the state residency will delete any manual state entries, so it is important tochoose the correct state residency when starting the state return. If TaxSlayer hasautomatically started a resident return for a part-year resident, the state resident return willneed to be deleted before the part-year resident return can be started.

• Likewise, if the filing status is changed, any existing state return will be automaticallydeleted.

• If the taxpayer moved into the state and remained until the end of the year use 12/31/2017as the Ending Residency Date.

• Wages will be reported correctly on both state tax returns as long as the correct informationappears in the state section of the W2.

• All other sources of income and adjustments to income must be allocated between the two stateresidency periods and manually entered on each state return. TaxSlayer provides data entry screens.

o Where there is tax exempt income or income from US government securities,the amount earned during each residency period should be calculated first and then thisamount is adjusted for the amount that is taxable in the specific state.

o This also applies to other Federal taxable income that may be taxed differently in the statessuch as social security and some forms of pension income. Each state’s rules are different.

• If there are state adjustments to Federal income for state taxation purposes, these should also bereflected in accordance to the individual state rules.

• Consult the individual state tax guides for more detailed specific guidance.

M-9 NTTC 12/17/2017

M-10

Notes

O-1

To set up TaxSlayer® ProOnline as a Favorite in your web browser, use the following steps:

1. Open Internet Explorer, Mozilla Firefox, Google Chrome, Safari or Edge.

2. Type https://vita.taxslayerpro.com/proavalon in the address line. Current and prior year software can be accessed

upon logging in.

3. Click on the Favorites icon.

4. Click Add.

5. In Name, type the name you want the favorites to display.

Setting TaxSlayer® Pro Online as a Favorite

6. Click OK.

Logging on to Pro Online the first time

The user name isn’t case sensitive. To log on to TaxSlayer® ProOnline, enter your Username and Password. The first timeyou log in, you will be asked for your e-mail address and cell phone number. Each time you use a new computer, you will be sent a code via e-mail or as a text. Retreive the code, then enter and submit it.

Note: See TaxSlayer User Guide for updated login procedures

NTTC 12/17/2017

Add a Favorite

Add a FavoriteAdd this webpage as a favorite . To access your favorites , visit theFavorites Center.

Name: [•Til

Create in: Favorites New folderv

Add Cancel

Account UpdateAccount Verification

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Please verify your account by choosing a delivery option below and inputing the code youreceive.

Delivery Options

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Verification CodeUsername

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TaxSlayer Blog — You can sign up for daily e-mails of TaxSlayer developments or visit the blog regularly from the TaxSlayer springboard at vita.taxslayerpro.com.

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NOTE: TaxSlayer transmits the simplest form that the return requires. For consistency, most print sets will generate Form 1040 instead of Forms 1040A or 1040-EZ. You can ensure that the transmitted return matches the printed return by making two entries in Line 21. The first (for $1) should be labeled "to force Form 1040" and the second (for -$1) labeled "to force Form 1040 offset."

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Similarly, to force transmittal of Schedule C instead of Schedule C-EZ, make two entries in the "Cost of Goods Sold" section (normally out of scope). Enter $1 for inventory at the beginning of the year and $1 for inventory at the end of the year.

https://vita.taxslayerpro.com/proavalon

Pro Online HomepageThe Welcome Menu is the “Main Menu” of the program. It is the first screen the program takes you to every time you log into your office account. From the Main Menu, you will find Menu Options that contain functions pertaining to the program. Each part of the program can be accessed by clicking on the gray Select button. This screen shot will be different based on your security level.

Start New Tax Return: Select to start a new return. After selecting "Start a return," you can • Select a client profile. Each profile will send you to appropriate data input screens for that kind of

taxpayer, e.g. working family with kids, retired with investments, retired without investments. • Go to Quick Files: After you enter the basic information you can go to Quick Files (from the dropdown

menu .ide the taxpayer's name) and list the entry screens you want to see.

Client Search: Select to open or print an existing return.

Review Returns: This option displays the Review Returns page, listing all returns that tax preparers have marked for review. The Quality Revi.er can select returns to review, and then mark the return as Approved or Rejected.

Navigating Hints

• Type dates without leading zeros and with a tab between fields rather than using the pull down menu• Form Search Box: Additional forms or screens can add by entering their name or number in the form

search box.• 1040 View: From the Summary/Print page, click on the line item to go to that entry screen.

Print Returns: Print packets will normally be set to print Form 1040 instead of 1040A or 1040EZ. If you want to force what's sent to the IRS to match this printed form, 1) Enter $1 to Other Income, captioned ''To force Form 1040," and then 2) Add a negative $1 to Other Income, captioned ''To force Form 1040 offset."

Make Internal Note: To make a note that will not be transmitted to the IRS but will stay with the file, select the pulldown arrow to the right of the taxpayer's name above the dark blue menu. Choose Notes. Then give the note a descriptive name and enter details. This note will be attached to the page where you created it and it will also be accessible from the Client Search List.

O-2 NTTC 12/17/2017

Welcome to Tax Aide Idaho At Post Falls Center

Rejected ClientsMessage Center 114

Start New Tax Return SelectCreate a brand new tax return for a client.

Client Search SelectEdit returns you previously started.

Review ReturnsReturns that are currently waiting to be reviewed

Select

ConfigurationSetup the configuration options for your office.

Select

ReportsPrint acks. mailing labels, bank reports, and old reports.

Select

TransmissionsTransmit returns to IRS.

Select

Summary/Print Page (1040 View)

Select Summary/Print to see an interactive Form 1040. It shows what's already been entered and allows you to go directly to the input screen for a specific line just by clicking on the amount for that line--even if it's zero.

Navigating TaxSlayer® Pro Online Select the Begin button to enter other state data applicable to the taxpayer. The federal and state information entered on the federal return will automatically pull into the state. When you have entered in all applicable state data items select Continue. To delete a state return, select State Return from the left side of your screen. Select the delete icon next to the state that you would like to delete.

To exit from the 1040 view, use the menu in the left-hand margin.

The "Back" button will take the preparer back to the last screen that was accessed prior to Summary/Print.

Viewing individual schedules and forms after the return is open: If any of the following forms or schedulesexist in the return, a print icon will appear beside the form name in any menu where the form appears. Click onit to create a PDF of just that form or schedule. The available forms are: Schedule A Schedule D Form 1116 Form 5405 Form 8880

Schedule B Schedule R Form 2441 Form 8606 Form 8962 Schedule C Form W-7 Form 5329 Form 8863 Form 8965If you create a PDF of a single form and later try to print the entire return from the Summary/Print screen, you may seeonly the single form. If that happens, you can print the entire return from the e-file section or from the Client List screen.

NTTC 12/17/2017

0 007 Wages, salaries, tips, etc Attach Formls) W-2Taxable interest. Attach Schedule B if requiredTax-exempt interest. Do not include on line da .Ordinary dividends Attach Schedule B it requiredQualified dividends . .Taxable refunds, credits, or offsets of state and local income taxesAlimony received , .Business income or (loss). Attach Schedule C or C-EZ . .

7Income0 008a 8a

. «b J_ 0 00bAttach Form(t)W-2 here. Alsoattach FormsW-2Q and1099-R if taxwas withheld.

0 009a

0 00b 9b0 0010 100 0011 110 0012 12

0 oo13 Capital gain or (loss). Attach Schedule D If required If not required, chec* hereOther gains or (lossesl Attach Form 4797IRA distributions .Pensions and annuities 16a

13If you did notget a W 2,see instructions

: ::14 140 00 b Taxable amount0 00 b Taxable amount

Rental real estate, royalties, partnerships, S corporations, trusts, etc Attach Schedule EFarm Income or (lossI Attach Schedule F .Unemployment compensationSocial secunty benefits } 20a i

Other income List type and amountCombine the amounts in the far right column *01 lines 7 through 21 This is your total income

0 0015a 15a 15bG 0016a 16b

17 17 0 000 0018 180 0019 19

20a b Taxable amount tot 0 0021 21 0 0022 SO 0022

0 0023 Educator expensesCertain business expenses of reservists, performing artists, and(ee basis government officials AtUch Form 2106 or 2106 EZHealth savings account deduction Attach Form Sdd9Moving expenses. Attach Form )903Deductible part of self employment tax Attach Schedule SESelf-employed SEP, SIMPLE, and qualified plansSelf-employed health insurance deductionPenalty on early withdrawal of savings

AJlmonypaid b Recipient's SSNIRA deduction . ,

Student loan interest deductionTuition and fees Attach Form 8917 . . . . . .Domestic production activities deduction Attach Form 890)Add lines 2) through ISSubtract line )6 from line 22 This is your adjusted gross income

23AdjustedGrossIncome

240 00240 0025 250 0026 260 0027 270 0028 280 0029 290 0030 300 0031a 31a0 0032 320 0033 330 0034 340 0035 35

SO 0036 36$0 0037 37

© Print

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Selecting Summary/Print will bring up a navigational 1040 View. This is not a perfect representation of the 1040, but it includes a way to navigate through the return. Click on any blue dollar amount and the associated entry screen will open. Do not rely solely on this view for quality review.

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Navigating TaxSlayer

Form or Topic KeyWord 1040 View Navigation to Data Entry Screen 4012 Pg982 Reduction of Tax Attributes (if extended) 98 21 Income>Other Income>Cancellation of Debt

Form 1099-C, Form 982 EXT-3

1040-ES Estimated Tax Payments 1040 N/A Payments & Estimates>Vouchers for Next Year’s Estimated Payments H-32

1040-X Amended Return N/A N/A Select 2017 Amended Return Section from side menu or create prior year return M-1

1095-A Health Insurance N/A 46/61/69Select Health Insurance Section from side menu>Follow screens to Advanced Premium Tax Credit

H-24

1098 Mortgage Interest Statement 1098 40Deductions>Itemized Deductions>Mortgage Interest and Expenses>Mortgage Interest Reported on Form 1098

F-7

1098-E Student Loan Interest 1098 33 Deductions>Adjustments>Student Loan Interest Deduction E-8

1098-T Tuition Statement 1098 34/50 Deductions>Credits Menu>Education Credits Tab J

1099-A Acquisition or Abandonment Capital 12/21/2013Income>Capital Gain and Losses>Sale of Main Home Worksheet or use Capital Gains and Loss Items

EXT-2

1099-B Proceeds from Broker and Barter Exchange 10 13 Income>Capital Gain and Losses>Capital

Gain and Loss Items D-22

1099-C Cancellation of Debt -C or CANC 21 Income>Other Income>Cancellation of Debt

Form 1099-C, Form 982 D-63

1099-DIV Dividends D 9Income> click Income from Federal Section>Interest and Dividends> Interest or Dividend Income

D-11

1099-G State Tax Refund G 10 Income>State and Local refunds D-12

1099-G Unemployment Compensation 10,UN 19 Income>Unemployment Compensation D-3

1099-INT Interest Income INT 8 Income>Interest and Dividends>Interest or Dividend Income D-7

1099-INT Box 8 Tax Exempt Interest INT 8b Income>Interest and Dividends>Tax-Exempt Interest D-9

1099-INT Box 9, Private Activity Bond Interest (PAB) 6251 45

Other Taxes>Alternative Minimum Taxes>Interest from specified private activity bonds exempt from the regular tax

D-8

1099-K Payment Card and Third Party… C 12

Income>Profit or Loss from a Business>Add or edit a Schedule C>Income (include in gross receipts or sales)

D-13

1099-LTC 8853 N/A Search for Form 8853 and scroll to Long term Care Section D-53

1099-MISC Miscellaneous Income MIS N/A Income>Form 1099-MISC D-141099-OID Original Issue Discount INT 8 Treat the same as 1099-INT D-81099-Q Payments from Education Programs N/A 21 If not taxable, do not enter; if taxable, then

out of scope J-2

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Note: For each form or topic listed in the left column use any of the navigation methods in the three columns to the right. If any column is N/A, use another method.

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replaced next 8 pages

Navigating TaxSlayer (Cont.)

Form or Topic KeyWord 1040 View Navigation to Data Entry Screen 4012 Pg1099-QA Distributions from ABLE Accounts N/A 21 If not taxable, do not enter; if taxable, then

out of scope D-53

1099-R IRA Distribution -R 15 Income>IRA/Pension Distributions> Add or Edit a 1099-R D-34

1099-R Pension Distributions -R 16 Income>IRA/Pension Distributions> Add or Edit a 1099-R D-34

1099-R Retirement -R 16 Income>IRA/Pension Distributions> Add or Edit a 1099-R D-34

1099-S Proceeds from Real Estate Transaction CAP 13 Income>Capital Gain and Losses>Capital

Gains and Loss Item D-30

1099-SA HSA HSA 25 Deductions>Adjustments>Health Savings Account Form 8889 D-3

2120 Multiple Support Declaration N/A N/A Not in TaxSlayer, take exemption, keep form in TP files Pub 17

4852 Substitute for Form W-2 W2 7 Income>Wages>Add a W-2>This is a substitute W-2 D-4

4852 Substitute for Form 1099-R 495 15Income>IRA/Pension Distributions>Add a 1099-R>Check here if this is a substitute 1099-R

D-34

CSA 1099-R Civil Service Annuity Paid -R 16 Income>IRA/Pension Distributions>Add or Edit a 1099-R D-38.2

CSF 1099-R Statement of Survivor Annuity Paid -R 16 Income>IRA/Pension Distributions>Add or

Edit a 1099-R D-38.2

K-1 Beneficiary’s (or Partner’s) Share of Income K N/A Income>Other Income>K-1 Earnings D-47

K-1 Royalty income 17 Income>Other Income>K-1 Earnings D-50

RRB 1099 Railroad Retirement Benefits (Tier 1 blue form) RR 20b Income>IRA/Pension Distributions>Social

Security Benefits/RRB-1099 D-45

RRB 1099-R Railroad Retirement Benefits (Tier 2 green form) RR 16 Income>IRA/Pension Distributions>RRB-

1099-R D-44

SSA-1099 Social Security Benefits SSA 20 Income>IRA/Pension Distributions>Social Security Benefits/RRB-1099 D-45

W-2 Wages & Salaries W 7 Income>Wages and Salaries D-4

W-2G Gambling Winnings W2G 21 Income>Other Income>Gambling Winnings D-53

Alimony Paid ALIM 31 Deductions>Adjustments> Alimony Paid E-1, E-6

Alimony Received ALIM 11 Income>Alimony Received E-6

Amended Return N/A N/A 2017 Amended Return Section from side menu (Tab M) M-1

American Opportunity Credit 1098 50 Deductions>Credits>Education Credits J-4

Annuity Calculator, Simplified Method or Public Safety Officer Exclusion -R 16 Income>IRA/Pension Distributions>Add or

edit a 1099-R>Click here for options D-37

Attach a PDF to the Return CAP 13 Income>Capital Gain and Losses>PDF Attachments D-22

Basis in Traditional IRA 8606 15 N/A D-35Brokers Statements N/A N/A See appropriate 1099

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Form or Topic KeyWord 1040 View Navigation to Data Entry Screen 4012 Pg

Business ExpensesC or

SCHEDULE C

12

Income>Profit or Loss From A Business>Add a Schedule C Income from Business>General Expenses, Car And Truck Expenses, or Other Expenses

D-20

Business IncomeC or MISC (for 1099-

MISC)12 Income>Profit or Loss from a Business D-13

Cancellation of Debt CAN 21 Income>Other Income>Cancellation of Debt D-63

Capital Gains CAP 13 Income>Capital Gains and Losses D-23

Capital Gains Distributions INT or DIV 9

Income>Interest or Dividend Income>Interest or Dividend Income>Dividend Income>Capital Gain to Schedule D

D-11

Capital Loss Carryforward CAP 13Income>Capital Gains and Losses>Other Capital Gains Data (including Capital Loss Carryover)

D-22

Charitable Distribution from IRA -R 15

Income>IRA/Pension Distribution>Add or edit 1099-R>Subtract distribution that was sent directly by trustee to charity from Box 1 and enter the difference in

D-43

Charitable Gift Annuity -R 15Income>IRA/Pension Distribution>Add or edit 1099-R AND Income>Capital Gains and Losses

D-42

Charitable Donations CHA 40 Deductions>Itemized Deductions>Gifts to Charity F-4, F-7

Child and Dependent Care Expenses 2441 49 Deductions>Credits>Child and Dependent Care Credit G-5

Child Tax Credit N/A N/A Completed automatically if Dependent Section properly completed G-12

Conversion of Traditional IRA to Roth IRA -R, 8606 15 Income>IRA/Pension PLUS Form 8606 D-39

Credit for the Elderly or Disabled 54 Deduction>Credits>Credit for the Elderly or Disabled G-14

Deceased Taxpayer PER plus 1310 N/A

Personal Information>Check here if Taxpayer is deceased. PLUS complete Form 1310 if person filing the return is other than spouse (Miscellaneous Forms>Claim a Refund Due to a Deceased Taxpayer).

K-12

Direct Deposit/Direct Debit N/A N/AE-File Section from side menu>Federal Return Type, State Return Type. Then enter Taxpayer Bank Account

K-1, K-14

Dividend Income D 9a Income >Interest and Dividends>Interest or Dividend Income D-10

Donations to Charity CHA 40 Deductions>Itemized Deductions>Gifts to Charity F-4, F-7

Early Distribution 5329 59 Other Taxes>Tax on Early Distribution H-2 to H-3

Early Withdrawal Penalty (not on 1099-INT) EARL 30 Deductions>Adjustments> Penalty on Early

Withdrawl of Savings or CD

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Education Expenses EDUCA, 8863 34/50 Deductions >Credits Menu>Education

Credits Tab J

Education Savings Accounts (ESA) N/A 21 If not taxable, do not enter; if taxable, then out of scope J-2

Educator Expenses EDUCA 23 Deductions>Adjustments> Educator Expenses E-2

Elderly or Disabled Credit ELD 54 Deductions>Credits>Credit for the Elderly or Disabled Schedule R G-14

Employee Business Expenses EMP 40Deductions>Itemized Deductions>Unreimbursed Employee Business Expense

F-8 to F-13

Energy Credits ENER 53 Deductions>Credits>Resident Energy Credit EXT-7

Estimated Tax Payments for the tax year

FED or PAY 65 Payments & Estimates>Federal Estimated

Payments H-32

Estimated Payment Vouchers Federal State VOU STAT N/A Payments & Estimates>Vouchers for Next

Year’s Estimated Payments H-32

Exempt Interest INT 8b

Income>Interest & Dividends>Interest or Dividend Income>Tax Exempt Interest Income Form 1099-INT, Box 8 or Form 1099-DIV, Box 10

D-9

Extension, Filing for EXTE N/A Miscellaneous Forms>Application for Extension M-7

First Time Home Buyer Credit (Repayment) FIR 60b Other Taxes>First-time Homebuyer

Repayment H-1

Foreign Tax Credit 1116 48 Deductions>Credits>Foreign Tax Credit G-2

Gambling Losses MISC 40Deductions>Itemized Deductions> Miscellaneous Deductions> Gambling losses to the extent of gambling winnings

F-8

Gambling Winnings W2G or 21 Income >Other Income>Gambling Winnings D-53

Grants and Scholarships OT or OTHER 7 Income>Other Income>Other

compensation> Scholarships and Grants J-6

Health Savings Accounts HSA 25 Deductions>Adjustments> Health Savings Account E-3

Household Employee Income (no W-2) OT or OTHER 7

Income>Other Income>Other Compensation> Household Employee Income

D-53

Identity Theft PIN PIN N/A Miscellaneous Forms>IRS Identification Pin P-2

Injured Spouse INJ N/A Miscellaneous Forms>Injured Spouse Form P-3

Interest Income INT 8Income>Interest and Dividends> Interest or Dividend Income>Interest Income, Form 1099-INT

D-7

Interest Income not on a Form INT 8Income>Interest and Dividends> Interest or Dividend Income>Interest Income, Form 1099-INT

D-7

Investment Management Fees MIS 40Deductions>Itemized Deductions> Miscellaneous Deductions> Investment Fees and Expenses

F-8

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Form or Topic KeyWord 1040 View Navigation to Data Entry Screen 4012 PgIRA, Basis in 8606 N/A N/A D-35IRA Contributions (Traditional IRA) IRA 32 Deductions>Adjustments>IRA Deduction E-7

IRA Contributions (Roth IRA) IRA 51Deductions>Credits>Retirement Savings Credit>Any Current Year Roth IRA Contributions

G-10

IRA Converstion to Roth -R, 8606 15 N/A D-39

IRA Distributions -R 15 Income>IRA/Pension Distributions>Add or Edit a 1099-R D-35

IRA Qualified Charitable Distribution (Not a Charitable Gift Annuity) -R 15

Income>IRA/Pension Distribution>Add or edit 1099-R>Subtract distribution that was sent directly by trustee to charity from Box 1 and enter the difference in Box 2a. Go to Nontaxable Distributions and check the “Check here to mark this as a Qualified Charitable Distribution (QCD) on your return.” Box

D-41

IRA Rollover -R 15

Income>IRA/Pension Distributions> Add or Edit a 1099-R check the box “Check here if all/part of the distribution was rolled over, and enter the rollover amount.”

D-39

ITIN, Application for N/A N/A Miscellaneous Forms>Application of ITIN L-3

Jury Duty Pay N/A 21 Income>Other Income>Other Inc. Not Reported Elsewhere D-53

Jury Duty Paid to the Employer J 36 Deductions>Other Adjustments>Jury Duty Pay E-1

Lump-Sum Social Security Benefit SSA 20Income>IRA/Pension Distributions>Social Security Benefits/ RRB-1099>Begin Worksheet

D-46

Long-term Care Benefits 8853 N/A In 8853, scroll to Long Term Care section D-53

Management Fees (Investment) MIS N/ADeductions>Itemized Deductions> Miscellaneous Deductions>Investment Fees and Expenses

F-8

Medical and Dental Expenses MED 40 Deductions>Itemized Deductions> Medical and Dental Expenses F-5

Medicaid Waiver Payment on 1099-Misc N/A N/A See page D-62 D-62

Medicaid Waiver Payments on W-2 W 7/21

Income > Wages and salaries Form W-2 and enter the amount in the “Medicaid Waiver Payment in Box 1” to be subtracted on line 21.

D-62

Mileage for Charitable Travel CHA 40 Deductions>Itemized Deductions>Gifts to Charity>Noncash Gifts to Charity F-7

Mileage for Medical Travel MED 40 Deductions>Itemized Deductions> Medical and Dental Expenses F-6

Mortgage Insurance Premiums (if extended) MORT 40

Deductions>Itemized Deductions>Mortgage Interest and Expenses> Private Mortgage Insurance (PMI) Deduction

F-7

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Mortgage Interest and Points Paid MORT 40Deductions>Itemized Deductions> Mort- gage Interest and Expenses> Mortgage Interest Reported on Form 1098

F-7

Mortgage Interest Paid—not onForm 1098 MORT 40

Deductions>Itemized Deductions> Mort- gage Interest and Expenses> Mortgage Interest Not Reported on Form 1098

F-7

Noncash Donations that total$500 or less

CHA 40 Deductions>Itemized Deductions>Gifts to Charity>Non-Cash Gifts to Charity

F-7

Noncash Donations that total more than $500

CHA 40 Deductions>Itemized Deductions> Giftsto Charity>Non-Cash Donations (more than $500)

F-7

OID Interest INT 8 Income>Interest and Dividends>Interest or Dividend Income as regular interest

D-8

Other Income (prizes, jury duty,etc.)

N/A 21 Income>Other Income>Other Inc. NotReported Elsewhere

D-53

PDF, Attaching N/A 13 Income>Capital Gain and Losses>PDFAttachments

D-22

Pension Distributions -R 16 Income>IRA/Pension Distributions>Add or Edit a 1099-R

D-33

Personal Property Taxes Proper 40 Deductions>Itemized Deductions>Taxes You Paid

F-6

PIN, Identity Theft PIN N/A Miscellaneous Forms>IRS IdentificationPin

P-2

Prisoner Income OT or OTHER N/A Income>Other Income>Other

Compensation>Prisoner Earned Income D-61

Private Activity Bond interest(PAB) 6251 45

Other Taxes and Payments>Alternate Minimum Tax>Interest from specified private activity bonds exempt from the regular tax

D-8

Prizes and Awards N/A 21 Income>Other Income>Other Inc. NotReported Elsewhere

D-53

Public Safety Officer Exclusion -R 16 Income>IRA/Pension Distributions>Add or edit 1099-R>Click here for options

D-36, D-43

Real Estate Taxes MORT 40Deductions>Itemized Deductions> Mort- gage Interest and Expenses> Mortgage Interest Reported on Form 1098

F-6

Refund, Apply to Next Year PAY 77 Payments & Estimates>ApplyOverpayment to Next Year’s Taxes

H-32

Refunds of State and LocalIncome Tax (if reportable)

G [box 2] 10 Income>State and Local Refunds D-12

Rental income E 17 Income>Rents and Royalties (Sch E) D-60Repayment of Previously Taxed Income (including unemployment)

N/A 19 Income>Unemployment>Repayment D-3

Reservist's ExpensesRESER 24 Deductions>Adjustments>Expenses for

Reservists, Performing Artists, and Qualifying Government Employees

E-1

Residential Energy Credit (ifextended)

ENER,RESI

53 Deductions>Credits>Residential EnergyCredit

EXT-7

Retirement Savings Credit RETI 51 Deductions>Credits>Retirement Savings Credit G-9

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Form or Topic KeyWord 1040 View Navigation to Data Entry Screen 4012 PgReverse Mortgage Income Income is neither taxable nor reportable.

Reverse Mortgage Interest MORT 40

Interest is deductible ONLY when actually paid—usually when loan is paid in full. Deduction subject to home equity loan limits (<$100,000).

F-7

RMD not taken 5329 59 Other Taxes>Tax on Early Distribution> Part IX H-2.2

Roth IRA Contributions IRA 51Deductions>Credits>Retirement Savings Credit>Any Current Year Roth IRA Contributions

G-10

Royalties (simple royalties with no associated expenses) SC 17 Income>Rents and Royalties (Sch E) D-51

Royalties from Services MISC 21 Income>Form 1099-Misc>Add a Form 1099-MISC>Box 7 Nonemployee compensation D-15

Sale of Stock CAP 12 Income>Capital Gain and Losses D-22

Sale of Main Home CAP 12Income>Capital Gain and Losses> Sale of Main Home Worksheet or use Capital Gains and Loss Items

D-28

Sales Tax Deduction SALE or TAX 40 Deductions>Itemized Deductions> Taxes

You Paid F-6

Schedule C SC 12 Income>Profit or Loss from a Business D-13

Scholarships and Grants, taxable OT or OTHER 7 Income>Other Income>Other

compensation> Scholarships and Grants J-6

Self-employment Income C 12 Income>Profit or Loss from a Business D-13

Seller-financed Mortgage Interest Paid MORT 40

Deductions>Itemized Deductions> Mortgage Interest and Expenses> Mortgage Interest Not Reported on Form 1098

D-8

Seller-financed Mortgage Interest Received INT 8

Income>Interest and Dividends> Interest or Dividend Income>Seller Financed Interest Income

D-10

Simplified Method -R 16 Income>IRA/Pension Distributions> Add or edit a 1099-R>Click here for options

D-37, D-39

Simplified Method after Death of All Beneficiaries MISC 40

Deductions>>Itemized Deductions> Miscellaneous Deductions> unrecovered investment in pension

F-8

Social Security Benefits SSA 20 Income>IRA/Pension Distributions> Social Security Benefits/ RRB-1099 D-46

Standard Deductions N/A 40 Deductions>Standard Deduction F-1State and Local Tax Refund Worksheet G [box 2] 10 Income>State and Local Refunds D-12

State and Local Taxes Paid STAT 40Deductions>Itemized Deductions> Taxes You Paid> Additional State and Local Income Tax

F-6

Stock Sales CAP 12 Income>Capital Gain and Losses D-22

Student Loan Interest STU or LOA 33 Deductions>Adjustments> Student Loan

Interest Deduction E-8

Substitute W-2 W 7 Income>Wages>Add a W-2>This is a substitute W-2 D-4

Taxable Refund Worksheet G [box 2] 10 Income>State and Local Refunds D-12

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Tax Exempt Interest and Dividends INT 8Income>Interest and Dividends> Interest or Dividend Income>Tax Exempt Interest Income

D-9,

Taxes Paid, Federal Estimated FED or PAY 65 Payments & Estimates>Federal Estimated

Payments for 2017 H-32

Taxes Paid, State and Local STAT 40Deductions>Itemized Deductions> Taxes You Paid> Additional State and Local Income Tax

F-6

Travel Expenses, Business C 12 Income>Profit or Loss From A Business> Other Expenses

F-8.1 to F-13

Travel Expenses, Employee 2106 40 Deductions>Itemized Deductions>Job-Related Travel Expenses

F-8.1 to F-13

Tuition and Fees Adjustment (if extended) TUI 34/50 Deductions>Adjustments> Tuition and Fees

Deduction EXT-6

Unemployment Compensation UN 19 Income>Unemployment Compensation D-3Unemployment Compensation Repayment—Same Year as Benefit Received

G 19 Income>Unemployment compensation D-3

Unemployment Compensation Repayment—Year after Benefits Received—greater than $3,000

MIS 40

Deductions>Itemized Deductions>Miscellaneous Deductions>Repayment under claim of right (if greater than $3000)

F-8

Unemployment Compensation Repayment—Year after Benefits Received—less than $3,000

MIS 40Deductions>Itemized Deductions>Miscellaneous Deductions>Add Additional

F-8

Unrecovered Investment in Pension MIS 40

Deductions>Itemized Deductions>Miscellaneous Deductions>Unrecovered investment in pension

F-8

Volunteer Expenses CHA 40 Deductions>Itemized Deductions>Gifts to Charity F-8

Vouchers for Estimated Payments Federal State VOU N/A Payments & Estimates>Vouchers for

NextYear’s Estimated Payments H-32

Wages & Salaries W 7 Income>Wages and Salaries D-4W-7 Application for ITIN N/A N/A Miscellaneous Forms>Application for ITIN L-3

Withholding not on another form WITH N/A Payments & Estimates>Other Fed (or State) Withholding H-32

Work Release Income N/A 21 Income>Other Income>Other Compensation> Prisoner Earned Income. D-5


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O-14

Notes

INDEX

401(k) additional tax on early distributions .. H-1 to H-3 contribution ................................................. G-9 distribution ................................................. D-33 rollover ...................................................... D-39

ABLE (Achieving a Better Life Experience) ... D-53 ACA (Affordable Care Act) .............................. H-4

allocation of policy amounts ...................... H-30 alternative calculation for year of marriage

eligibility ......................................... H-30 dependent's modified AGI .................. H-8, H-11 exemptions

affordability ........................................... H-15 affordability worksheet ......................... H-17 for income below filing threshold .......... H-11 from marketplace ................................. H-13 overview ................................................. H-8 TaxSlayer entry ............................ H-10, H-12 types and codes ........... H-14, H-14.1, H-14.2

federal filing requirement thresholds .. H-9, H-11 federal poverty lines .................................. H-21 health insurance questionnaire ................... H-4 Healthcare.gov tool ................................... H-18 household members ................................... H-6 minimum essential coverage ...................... H-5 months insured ........................................... H-7 Premium Tax Credit

Form 1095-A entry ............................... H-24 Form 8962 ............................................ H-27 handling unexpected repayments ........ H-29 special situations .................................. H-28

shared responsibility payment .................. H-22 unclaimed dependents ................................ H-6

Account verification, TaxSlayer ....................... O-1 Ad valorem taxes .............................................. F-6 Additional Child Tax Credit ............................ G-12 Addresses

foreign, entering ....................... B-16, D-35, D-54 for mailing paper/amended returns ............. P-5

Adjustments to income .................................... E-1 Affordability exemption, ACA ......................... H-15 Affordable Care Act. See ACA Alien, resident vs. nonresident ......................... L-1 Alimony ............................................................ E-6

paid ........................................................ E-1, E-6 received ...................................................... D-3

Alternative minimum tax .................................. H-1 Amended returns

for original return created, e-filed, and accepted with TaxSlayer ................. M-1

for original return not created with TaxSlayer M-4 where to file ................................................. P-5

American Opportunity Credit vs. Lifetime Learning Credit ......................... J-4 vs. other education credits ................. J-2 to J-4 for student under age 24 .............................. J-9 TaxSlayer entry ............................................ J-7

Annuities. See Form 1099-R

Armed Forces income ...................................... D-2 Auto registration tax ......................................... F-6 Automatic debit .............................................. K-14 Balance due returns

methods for avoiding in future ................... K-18 options for clients who can't pay ............... K-17 payment methods ...................................... K-15

Bank information, for e-filing ............................ K-2 Basic information, entering ............................ B-12 Basis adjustment codes ................................. D-26 Birth dates, entering ....................................... B-15 Bonds, sale of ................................................ D-27 Broker's statements ....................................... D-25

See also Capital gains and losses Business income/expenses. See Schedule C Canadian Social Security ............................... D-45 Cancellation of debt. See COD Capital gains and losses ................................ D-22

adjustments to gain or loss ............... D-24, D-26 carryover losses ........................................ D-22 cost basis type ........................................... D-23 for inherited or gifted property ................... D-27 sale of main home ........................ D-28 to D-32 summaries of multiple transactions .. D-24, D-25 TaxSlayer entry ........................................... D-23

Capital gains distributions .............................. D-11 Car and truck expenses, Schedule C ............ D-21 Carry forward, of taxpayer data

taxpayer consent for ................................. K-4.1 in TaxSlayer ................................................ B-6

Charitable contributions ...................... F-4, F-7, F-8 Charitable distribution, from IRA .................... D-43 Charitable gift annuity, on 1099-R ................. D-42 Child and Dependent Care Credit .................... G-5 Child Tax Credit ............................................. G-12

for child with ITIN ......................................... G-1 Children of divorced or separated parents ....... C-8 Civil rights, taxpayer .................. Inside back cover Civil service retirement ................................... D-37 COD (cancellation of debt)

credit card ......................................... D-63, D-65 principal residence ................................. EXT-1

Codes 1099-R box 7 ............................................. D-41 adjustments to gains or losses ......... D-24, D-26 exceptions to early distribution penalty ....... H-2 W-2 box 12 .................................................. D-6

Commuting expenses .................................... F-12 Completing return

for deceased taxpayer ............................... K-12 e-file section. See E-file section of return paper returns ............................................. K-13 with Power of Attorney ........................... K-12.1 printing and distributing copies .................. K-13 quality review. See Quality review process signature .................................................... K-12

INDEX

Contact numbers ................................. Back cover Contingency plans for site operations ............. Q-1 Contributions, charitable ................................... F-8 Coverdell ESA .......................................... D-53, J-2 Credit card debt, cancellation of............ D-63, D-65 Credit card payments, for balance due ......... K-15 Credit(s)

Additional Child Tax Credit ....................... G-12 American Opportunity Credit. See American

Opportunity Credit Child and Dependent Care Credit ............... G-5 Child Tax Credit. See Child Tax Credit Earned Income. See EIC education. See Education credits for the Elderly or Disabled ........................ G-14 First-time Homebuyer Credit (repayment) .. H-1 foreign tax ................................................... G-2 Lifetime Learning ......................................... J-4 nonrefundable ............................................. G-1 Premium Tax Credit. See ACA Residential Energy .................................. EXT-7 Retirement Savings Contribution Credit ..... G-9

Day care. See Child and Dependent Care Credit Death of taxpayer or spouse ......... B-8.1, D-28, K-8 Deceased taxpayer ........................................ K-12 Decision tree, residency status ......................... L-1 Deductions

itemized. See Itemized deductions standard ....................................................... F-1

Dependents/qualifying persons children of divorced or separated parents .. C-8 exemptions for ...................................... C-3, C-5 filing requirement thresholds ....................... H-9 modified AGI ....................................... H-8, H-11 of person not required to file return ............. C-2 qualifying child ............................................ C-3 qualifying child of more than one person .... C-4 qualifying relative .................................. C-3, C-6 rules for claiming ......................................... C-3 support determination ................................. C-9 TaxSlayer entry ......................................... B-17 unclaimed .................................................... H-6

Deposit slip .................................................... K-15 Direct debit of balance due ............................ K-15 Direct deposit of refund ............................ K-1, K-14 Disability income, on 1099-R ......................... D-39 Disabled person

assisting ...................................................... P-1 credit for .................................................... G-14 EIC for ........................................................... I-4

Dividend income ............................................ D-11 capital gain ................................................ D-11 non-dividend distributions ......................... D-11 ordinary ..................................................... D-11 private activity bond .................................... D-8 qualified ....................................................... D-8 tax-exempt .................................................. D-9

Divorced or separated parents, children of ..... C-8

Donations, charitable .................................. F-4, F-7 Early distribution penalty ................................... H-2 Early withdrawal penalty .................................. O-8 Earned income, definition of ............................. I-1 Earned Income Credit. See EIC Education credits

comparison of ..................................... J-2 to J-4 qualified expenses for ......................J-1, J-5, J-6 TaxSlayer entry ............................................ J-7 who can claim ............................................... J-4 who can't claim ............................................. J-5

Education expenses employer-provided assistance for ................ J-2 for exception to early distribution penalty ..... J-2 qualified ............................................J-1, J-5, J-6 work-related .................................................. J-2

Education savings accounts (ESA) .. D-53, J-2, O-9 Education Savings Bond Program .................... J-2 Educator expenses .......................................... E-2 E-file section of TaxSlayer return ..................... K-1

bank information .......................................... K-2 consent to carry forward taxpayer data .... K-4.1 federal return types ..................................... K-1 form 8453 .................................................... K-6 PIN guidelines ............................................. K-6 savings bond purchase ............................... K-4 setting return status ..................................... K-7 split refund option ........................................ K-3 state ID (optional) ........................................ K-5 state return types ......................................... K-2 Tax-Aide questions ...................................... K-5 third party designee ..................................... K-4

E-filing with $0 AGI .................................................. A-3 with ITIN ...................................................... L-2

EIC (Earned Income Credit) claiming after disallowance .......................... I-6 common filing errors ..................................... I-1 eligibility requirements ............................. I-2, I-3 income for ..................................................... I-1 not eligible for ............................................... I-6 with qualifying child .........................B-18, I-2, I-4 with qualifying child of more than one person I-5 without a qualifying child .......................... I-2, I-5

Elderly, credit ................................................... G-14 Employee business expenses, as itemized deduction

50% limit .................................................... F-11 job hunting ................................................... F-4 meals and entertainment ............. F-10, F-11job partially reimbursed ..................................... F-5 recordkeeping ............................................ F-13 transportation ............................................ F-12 travel ................................................... F-8.1, F-9

Energy credit, residential ............................ EXT-7 Entertainment expenses, job-related ............. F-10 Estimated tax payments

federal ............................................... H-32, K-19 state ........................................................... H-32

INDEX

vouchers for next year .............................. K-19 Exclusion of gain on sale of home ................. D-28 Exemptions

definitions for ............................................... C-1 for dependents/qualifying persons ....... C-3, C-5

See also Dependents/qualifying persons personal ...................................................... C-2

Extension of time to file amount paid with ....................................... H-32 application for .............................................. M-7

Fellowships. See Scholarships, fellowships, and grants Filing requirements

children ....................................................... A-2 dependents ............................................ A-2, H-9 for most people .................................... A-1, H-11 other situations ............................................ A-3

Filing status decision tree ................................................ B-8 head of household .................................... B-10 MFJ with nonresident alien spouse ......... B-8.1

First-time Homebuyer Credit (repayment) ....... H-1 Foreign address

for payer .................................................... D-35 for taxpayer ........................................ B-16, D-54

Foreign earned income .................................. D-61 Foreign earned income exclusion ......... D-53, D-54 Foreign old age pensions .............................. D-45 Foreign tax credit ............................................. G-2 Form 1040 ............................................. B-1–2, O-1 Form 1040-ES ........................................ H-32, K-19 Form 1040X. See Amended returns Form 1041 .................................................. D-46.1

See also Schedule K-1 Form 1065 .................................................. D-46.1

See also Schedule K-1 Form 1095-A .................................................. H-24

See also ACA Form 1098 ........................................................ F-7 Form 1098-E .................................................... E-8 Form 1098-T ..................................................... J-6

See also Education credits Form 1099-B .................................................. D-23

See also Capital gains and losses Form 1099-C

credit card debt ......................................... D-63 principal residence mortgage .................. EXT-1

Form 1099-DIV .............................................. D-11 See also Dividend income

Form 1099-G ................................................. D-12 Form 1099-INT ................................................ D-7

See also Interest income Form 1099-INT, box 8 ..................................... D-9 Form 1099-INT, box 9 ..................................... D-8 Form 1099-K .................................................. D-13 Form 1099-LTC ............................................. D-53 Form 1099-MISC

connecting to schedule C ......................... D-17 See also Schedule C

Medicaid waiver payments ........................ D-62 other income .............................................. D-53 TaxSlayer entry ............................ D-14 to D-16

Form 1099-OID ................................................ D-8 Form 1099-Q .............................................. J-2, O-6 Form 1099-QA ......................................... D-53, O-7 Form 1099-R .................................................. D-34

See also Retirement and pension income additional tax on early distributions .. H-1 to H-3 for disability under minimum retirement age D-39 distribution codes, box 7 .............. D-41 to D-43 employee contributions/insurance premiums D-35 for federal retirees and survivors ............ D-38.2 for IRA to Roth conversions ...................... D-39 with nondeductible contributions ............... D-35 nontaxable distribution .............................. D-43 for rollover ................................................. D-39 for Roth IRA distribution ............................ D-40 simplified method ........................... D-37, D-38.1 taxable amount not determined ........ D-34, D-36 TaxSlayer entry ......................................... D-34 TaxSlayer entry variations ...................... D-38.1

Form 1099-S (for sale of home) ........ D-28 to D-32 Form 1099-SA .................................................. E-4

See also HSA (Health Savings Account) Form 1116 ........................................................ G-2 Form 1120-S ............................................... D-46.2

See also Schedule K-1 Form 2120 ........................................................ O-7 Form 2441 ........................................................ G-7 Form 2555 ...................................................... D-54 Form 2848 ................................................... K-12.1 Form 4137 ................................................. D-5, H-1 Form 4852 ....................................... D-4, D-34, O-7 Form 4868 ....................................................... M-7 Form 5329 ........................................................ H-2 Form 5405 ........................................................ H-1 Form 6251 ........................................................ H-1 Form 8332 ........................................................ C-8 Form 8379 ........................................................ P-3 Form 8453 ........................................................ K-6 Form 8606 ...................................................... D-35 Form 8615 ........................................................ H-1 Form 8812 ........................................................ G-1 Form 8814 ........................................................ H-1 Form 8853 ...................................................... D-53 Form 8863 ......................................................... J-7

See also Education credits Form 8879 ........................................................ K-6 Form 8880 ...................................................... G-10 Form 8889 ........................................................ E-3 Form 8960 ........................................................ H-1 Form 8962 ...................................................... H-27

See also ACA Form 8965 ............................................. H-11, H-15

See also ACA Form 13614-C (Intake and Interview) .......... B-3–4 Form CSA 1099R ........................................ D-38.2 Form CSF 1099R ........................................ D-38.2

INDEX

Form RRB-1099 (tier 1 blue form) ................. D-45 Form RRB-1099-R (tier 2 green form) ........... D-44 Form SSA 1099 ............................................. D-45

See also Social Security Form W-2 .............................................. D-4 to D-6 Form W-2G .................................................. DD-53 Form W-4 ....................................................... K-17 Form W-4P .................................................... K-17 Foster child ...................................................... C-1 Gains and losses. See Capital gains and losses Gambling losses ............................................... F-8 Gambling winnings ........................................ D-53 German Social Security ................................. D-45 Gifted property, sale of .................................. D-27 Grants. See Scholarships, fellowships, and grants Gross income ................................................... D-1 Hardship exemption, ACA .......................... H-14.2 Head of household ........................................ B-10 Health insurance premiums

exclusion for public safety officers ............ D-36 as itemized deduction .................................. F-6

Health insurance questionnaire ....................... H-4 See also ACA

Healthcare.gov tool ........................... H-18 to H-20 See also ACA

Home, sale of .................................... D-28 to D-32 Household employee income ................ D-53, D-61 Household employment taxes ......................... H-1 How to use this guide .......................................... 5 HSA (Health Savings Account)

contributions ................................................ E-3 distributions (form 1099-SA) ....................... E-4 screening sheet ........................................... E-5

Identity theft ..................................................... P-2 Income

Armed Forces/military ................................. D-2 capital gains. See Capital gains and losses dividend. See Dividend income earned ........................................................... I-1

See also EIC on form 1099-MISC. See Form 1099-MISC gambling winnings .................................... D-53 interest. See Interest income K-1. See Schedule K-1 other.................................................. D-53, D-61 quick reference guide .................................. D-1 rental ............................................ D-50 to D-52 retirement. See Form 1099-R royalties ........................................ D-50 to D-52 self-employment ........................................ D-13

See also Schedule C Social Security. See Social Security state and local tax refund .......................... D-12 taxable vs. nontaxable ................................ D-1 TaxSlayer navigation ............................ D-3, O-3

tips ......................................................... D-5, H-1 wages ............................................... D-4 to D-6

Individual Retirement Account. See IRA Individual Taxpayer Identification Number. See ITIN Inherited property, sale of .............................. D-27 Injured spouse relief ......................................... P-3 Innocent spouse relief ...................................... P-3 Insolvency worksheet ..................................... D-64 Installment Agreement ................................... K-17 Insurance premiums

health ........................................................... F-6 long-term care ............................................. F-6

Intake and Interview Sheet (Form 13614-C) .... B-3 Interactive Tax Assistant (ITA) ......................... P-6 Interest expense

mortgage ..................................................... F-7 student loan ................................................. E-8

Interest income .......................................... D-7, D-8 municipal bond ............................................ D-9 original issue discount (OID) ....................... D-8 out-of-scope items ....................................... D-8 private activity bond (PAB) .......................... D-8 from seller financed mortgage ................... D-10 tax-exempt ................................................... D-9

Investment fees and expenses ........................ F-8 IRA (Individual Retirement Account)

See also Form 1099-R additional tax on early distributions .. H-1 to H-3

exceptions to ............................................ J-2 basis in ...................................................... D-35 contribution .................................................. E-7 conversion to Roth IRA ............................. D-39 distributions ............................................... D-33 failure to take RMD ................................... H-2.2 missed rollover deadline ............................ D-43 with nondeductible contributions ............... D-35 qualified charitable distribution ......... D-43, O-10 rollovers ..................................................... D-39

IRS direct pay ................................................. K-15 IRS Taxpayer Assistance Center ..................... P-1 ITA (Interactive Tax Assistant) ......................... P-6 Itemized deductions

charitable contributions .................. F-4, F-7, F-8 gambling losses ........................................... F-8 interview tips ................................................ F-3 medical expenses ........................................ F-5 miscellaneous .............................................. F-8

See also Employee business expenses mortgage interest ........................................ F-7 for persons not eligible for standard deduction F-1 real estate taxes .......................................... F-6 sales tax .............................................. F-6, F-8.2 state and local income taxes ....................... F-6 TaxSlayer entry ........................................... F-5

ITIN (Individual Taxpayer Identification Number) applying for .................................................. L-3 Child Tax Credit for child with ...................... G-1 e-filing return with ........................................ L-2 temporary .................................................... L-3

INDEX

Job Aids

Form 1040 ............................................... B-1–2 Form 13614-C (Intake and Interview) ..... B-3–4

Job hunting expenses ....................................... F-4 Joint and survivor annuity .................. D-37, D-38.1 Jury duty pay

as other income ........................................ D-53 repaid to employer ................................. E-1, E-8

K-1. See Schedule K-1 Keeping up a home, cost of ........................... B-11 Last name, entry in TaxSlayer ....................... B-13 Legislative extenders .............................. TAB-EXT Lifetime Learning Credit

vs. American Opportunity Credit .................. J-4 vs. other education credits ................. J-2 to J-4

Long-term care insurance benefits received ....................................... D-53 premiums paid ............................................. F-6

Lump-sum Social Security distributions ........ D-46 Married filing jointly (MFJ)

with nonresident alien spouse ................. B-8.1 Meal and entertainment expenses, job-relatedF-10,

F-11 Medicaid waiver payments ............................ D-62 Medical expenses, as itemized deduction F-5 to F-6 Mileage

charitable ............................................... F-7, F-8 job-related .......................................... D-21, F-12 medical ......................................................... F-6

Military income ................................................. D-2 Military reservist's expenses ............................ E-1 Minimum essential coverage ........................... H-5

See also ACA Miscellaneous deductions ................................ F-8 Mortgage insurance premiums ......................... F-7 Mortgage interest, seller financed ................. D-10 Mortgage interest deduction ............................. F-7 Municipal bond interest .................................... D-9 Net investment income tax .............................. H-1 Nominee interest ............................................. D-8 Noncash donations ........................................... F-7 Nonrefundable credits ..................................... G-1 Nonresidence decision tree .............................. L-1 Nonresident alien spouse, filing MFJ ........... B-8.1 Nonresident vs. resident aliens ........................ L-1 Nontaxable income

on 1099-R ................................................. D-43 examples of ................................................. D-1

Offer in compromise ...................................... K-16 Office of Personnel Management (OPM) ...... D-37 OID (original issue discount) interest .............. D-8

Other income and compensation........... D-53, D-61 Other taxes and payments ............................... H-1 Out of scope topics .............................................. 8 PAB (private activity bond) interest .................. D-8 Paper return .............................. K-1, K-2, K-13, P-5 Part-year returns, state ................................... M-9 Payment agreements ..................................... K-16 Payment card and third party network transactions

............................................................. D-13 Payments and estimates

for balance due. See Balance due returns TaxSlayer entry ................................. H-32, K-19

PayNearMe .................................................... K-16 PDF attachments ........................................... D-22 Penalty

late filing .................................................... K-15 underpayment of estimated tax ................. H-23

Pension distributions. See Retirement and pension income

Personal exemptions ....................................... C-2 Personal information

dependents ................................................ B-18 taxpayer and spouse ................................. B-15

Personal property tax ....................................... F-6 Personal representative ................................. K-12 PIN

identity theft ................................................. P-2 practitioner ................................................... K-6

Points paid ....................................................... F-7 Power of Attorney (POA) ............................ K-12.1 Premium Tax Credit. See ACA Printing return .......................................... K-13, O-5 Prior year returns ............................................ M-5 Prisoner earned income ................................. D-61 Private activity bond (PAB) interest ................. D-8 Private mortgage insurance (PMI) ................... F-7 Prizes and awards ......................................... D-53 Property taxes .................................................. F-6 Public safety officer exclusion ........................ D-36 Publications and forms ..................................... P-4 Pulling forward (carryover), of taxpayer data ... B-7 Qualified education programs ........................ D-53 Qualified Tuition Program (QTP) .............. D-53, J-2 Qualifying Child ................................................ C-3

for Child Tax Credit ................................... G-12 for EIC ............................................. B-18, I-2, I-4 of more than one person ............................. C-4

Qualifying relative ............................................ C-6 Quality review process

print set for .................................................. K-9 setting return status for ................................ K-7 steps in ........................................................ K-8

Quality site requirements, Tax-Aide ................... 11 Railroad Retirement distributions .......... D-44, D-45 Real estate taxes ........................................ F-6, F-7

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INDEX

Recordkeeping, for job-related expenses ....... F-13 Refund

apply to next year's taxes ......................... O-11 direct deposit ....................................... K-1, K-14 savings bond purchase using ................... K-15 split ............................................................ K-15 of state and/or local income tax ................ D-12 status of ...................................................... P-6

Reject codes .................................................... Q-4 Rental income ................................... D-50 to D-52 Repayment of previously taxed income .......... D-3 Required minimum distribution (RMD) ... H-2.2, H-3 Reservist's expenses ....................................... E-1 Residency status, determining ......................... L-1 Resident vs. nonresident aliens .............. L-1 to L-2 Residential energy credit ............................. EXT-7 Retirement and pension income

See also Form 1099-R for EIC qualification ....................................... I-1 missed rollover deadline ........................... D-43 public safety officers ................................. D-36 Railroad Retirement distributions ..... D-44, D-45 simplified method ...................................... D-37 Social Security. See Social Security TaxSlayer navigation ................................ D-33

Retirement Savings Contribution Credit .......... G-9 Return types, e-file section ......................... K-1, K-2 Returning client, pull data to current return ..... B-7 Reverse mortgage income .................... D-53, O-12 Reverse mortgage interest ....................... F-7, O-12 RMD (required minimum distribution) .... H-2.2, H-3 Rollover, of IRA or 401(k)

on 1099-R ................................................. D-39 missed deadline for ................................... D-43

Roth IRA contribution ............................................... G-10 conversion of traditional IRA to ................. D-39 distribution ................................................. D-40

Routing numbers ........................................... K-14 Royalty income ......................... D-15, D-50 to D-52 Sale of home ..................................... D-28 to D-32 Sale of stock .................................................. D-23 Sales tax deduction ................................. F-6, F-8.2 Savings bond, purchase with refund ............... K-4 Schedule A ....................................................... F-5

See also Itemized deductions Schedule B ...................................................... D-7 Schedule C

force transmittal ............................................ O-1 general expenses ...................................... D-20 income not reported on 1099-MISC .......... D-13 income reported on 1099-MISC ....... D-15, D-17 meal and entertainment expenses .... F-10, F-11 questions about business ......................... D-19 recordkeeping for expenses ...................... F-13 TaxSlayer entry ......................................... D-18 transportation expenses .................... D-19, F-12 travel expenses .................................. F-8.1, F-9

Schedule D ..................................................... D-22 See also Capital gains and losses with loss carryover ..................................... D-22 for sale of main home ................................ D-28

Schedule E ........................................ D-50 to D-52 Schedule K-1

form 1041 ............................................... D-46.2 form 1065 ............................................... D-46.1 form 1120S ............................................. D-46.2 in-scope items ........................................... D-49 out-of-scope items .................. D-46.1 to D-46.2 TaxSlayer entry ............................ D-47 to D-50

Schedule R ..............................................G-1, G-15 Schedule SE .................................................... H-1 Scholarships, fellowships, and grants

nontaxable .................................................... J-2 taxable.................................................. D-61, J-1

Scope, of Tax-Aide program ................................ 8 adjustments to income ................................ E-8 other income items .................................... D-53 schedule E items ....................................... D-50 schedule K-1 items ........ D-46.1 to D.46.2, D-49

Section 121 exclusion .................................... D-28 Self-employment income. See Schedule C Self-employment tax ........................................ H-1 Seller financed mortgage interest ............ D-8, D-10 Separated parents, children of ......................... C-8 Shared responsibility payment, ACA ............. H-22 Short gap exemption, ACA ......................... H-14.1 Sick pay ............................................................ D-6 Signatures ...................................................... K-12

for child's return ......................................... K-12 for deceased taxpayer return .................... K-12

Simplified method ............................... D-37, D-38.1 Social Security

Canadian or German ................................. D-45 excess withholding of ................................ H-32 lump-sum distributions .............................. D-46 taxability of ................................................ D-45 TaxSlayer entry ......................................... D-45

Social Security Administration website ............ P-6 Split refund ....................................................... K-3 Standard deduction

for dependents ............................................ F-2 for most people ............................................ F-1 for over 65 or blind ...................................... F-2 persons not eligible for ................................ F-2

Standards of Conduct, Tax-Aide program Inside front cover

Starting a new return ........................................ B-5 State and/or local income taxes

as itemized deduction .................................. F-6 refund, taxability of .................................... D-12

State returns creating ........................................................ O-4 part-year ..................................................... M-9

Statutory employee .......................................... D-6 Stock sales ..................................................... D-23 Student, as Qualifying Child ............................. C-1

INDEX

Student loan interest deduction ................. E-8, J-2 Substitute W-2 ................................................. D-4 Support worksheet ........................................... C-9 Taxable income ............................................... D-1

See also Income Taxable refunds ............................................. D-12 Tax-Aide program

return preparation policies ............................ 11 scope .............................................................. 8

Taxes paid, as itemized deduction ................... F-6 Tax-exempt interest ......................................... D-9 Taxpayer Assistance Center, IRS ................... P-1 Taxpayer civil rights ................... Inside back cover Taxpayer inquiries ........................................... P-3 TaxSlayer

basic information entry .............................. B-12 e-file section. See E-file section of TaxSlayer return force transmittal of Form 1040 and Schedule C O-1 forms and topics .......................................... O-6 home page .................................................. O-1 internal notes in returns .............................. O-2 logging on for first time ............................... O-1 navigation ....................................... O-3 to O-14

See also specific form or topic printing returns .......................................... K-15 setting as a favorite ..................................... O-1 starting a new return ................................... B-5 summary/print page (1040 view) ................ O-5 viewing individual schedules and forms ...... O-5

Temporary absence ......................................... C-5 Third party designee ........................................ K-4 Third party pay ................................................. D-6 Tie-breaker rules, for Qualifying Child of more than

one person ........................................... C-4 Tip income ................................................. D-5, H-1 Transportation expenses, job-related .... D-19, F-12 Travel expenses, job-related ................... F-8.1, F-9 Tuition and fees deduction ..................... EXT-6, J-2 Unemployment compensation

repayment of .......................................... D-3, F-8 TaxSlayer entry ........................................... D-3

Unmarried parents, children of ........................ C-8 Unrecovered investment in pension ................. F-8 Unreported tip income ..................................... H-1 Vehicle registration tax ..................................... F-6 Veterans, services for ...................................... P-1 Volunteer Agreement ................. Inside front cover Vouchers, for estimated tax payments .......... K-19 Wages (form W-2) ................................ D-4 to D-6 Wash sale ...................................................... D-26 What's New for 2017 ................................. NEW-1 Where to file .................................................... P-5 Where's My Refund? tool ................................ P-6 Who must file. See Filing requirements

Who should file ................................................ A-3 Withholding

on 1099-B .................................................. H-32 on 1099-INT ................................................ D-8 adjustments to ........................................... K-17

Work release income ..................................... D-61 Worthless securities ....................................... D-27

Documents

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