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TAX-AIDE New Provisions ● In scope: 1099-R Code L used for a Loan treated as a deemed distribution Schedule C expenses now up to $25,000 Can expense business assets of less than $500 – Form 4562 not required 1099-QA Distributions from ABLE accounts 1099-LTC Long Term Care and Accelerated Death Benefits NTTC Training – TY2015 3
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TAX-AIDE
TAX-AIDE
Federal Tax Law Changes – Tax Year 2015
Pub 4012 – Pages Ext 1 – 8 Pub 4491 – Pages iii – vi
TAX-AIDE
Federal Tax Law Changes 2015
●New provisions● Indexing●Extended provisions●Due Dates● Social security number printouts
NTTC Training – TY2015 2
TAX-AIDE
New Provisions
● In scope: 1099-R Code L used for a Loan treated as a
deemed distribution Schedule C expenses now up to $25,000
Can expense business assets of less than $500 – Form 4562 not required
1099-QA Distributions from ABLE accounts 1099-LTC Long Term Care and Accelerated
Death Benefits
NTTC Training – TY2015 3
TAX-AIDE
New Provisions
● IRS is assigning IP Pins to dependents Will need to input on Main Info Sheet
●Taxpayer can designate a contribution to a myRA on Form 1040, Line 76 (tbc)
●Mandatory exclusion of qualified Medicaid waiver payments for difficulty of care services
NTTC Training – TY2015 4
TAX-AIDE
New Provisions
●Must have SSN (not ITIN) by due date of return for Earned Income Credit May not file amended returns to claim
EIC after getting a SSN
●May not amend a prior year return to claim Child Tax Credit or American Opportunity Credit for dependent who later received an ITIN or SSN
NTTC Training – TY2015 5
TAX-AIDE
Not-so-New Provisions
●Out of scope: ACA – Form 8962 – Part 4 – Shared policy
allocation ACA – Form 8962 – Part 5 – Alternative
Calculation for year of marriage Rest of ACA in Scope Simplified home office deduction still out
of scope
NTTC Training – TY2015 6
TAX-AIDE
Indexing – Standard Deduction
Std Ded + if blind + if ≥65Single $ 6,300 $ 1,550 $ 1,550 MFJ 12,600 1,250 ea 1,250 ea MFS 6,300 1,250* 1,250* HH 9,250 1,550 1,550 QW 12,600 1,250 1,250 *also applies to dependent spouse if claimed
NTTC Training – TY2015 7
TAX-AIDE
Indexing – Itemized Deductions
● Subject to phase-out if AGI over $258,250 Single $309,990 MFJ or QW $154,950 MFS $284,050 HH
NTTC Training – TY2015 8
TAX-AIDE
Indexing – Exemption Deduction
●Exemptions increase to $4,000● Subject to phase-out if AGI over
$258,250 Single $309,900 MFJ or QW $154,950 MFS $284,050 HH
NTTC Training – TY2015 9
TAX-AIDE
Indexing – Standard Mileage
2015 Rates: 57.5¢ per mile – business miles 23¢ per mile – medical miles 14¢ per mile – charitable miles
NTTC Training – TY2015 10
TAX-AIDE
Indexing – EIC Maximum Credits and Income
● $6,242 – three or more qualifying children● $5,548 – two qualifying children● $3,359 – one qualifying child● $503 – no qualifying child● $47,747 ($53,267 MFJ) 3 qualifying children● $44,454 ($49,974 MFJ) 2 qualifying children● $39,131 ($44,651 MFJ) 1 qualifying child● $14,820 ($20,330 MFJ) no qualifying child
NTTC Training – TY2015 11
TAX-AIDE
Indexing – Deductible Long-Term Care Premium Limits
●Qualified long-term care premiums includible as medical expense on Sch A $380 – Age 40 or under $710 – Age 41 to 50 $1,430 – Age 51 to 60 $3,800 – Age 61 to 70 $4,750 – Age 71 and over
NTTC Training – TY2015 12
TAX-AIDE
Other Indexing
● HSA Limits $3,350 self-only coverage $6,650 family coverage Both + $1,000 if age 55 or older
● Retirement savings credit income limits Max $30,500 S and MFS, $61,000 MFJ,
$45,750 HH
● Max investment income for EIC $3,400
NTTC Training – TY2015 13
TAX-AIDE
Other Indexing
● IRA contributions Max $5,500 ($6,500 if age 50 or older) Modified AGI limits when covered by
employer plan
● Lifetime learning credit income limits● Excludible savings bond interest – out of
scope● Foreign earned income/housing exclusion
NTTC Training – TY2015 14
TAX-AIDE
Other Indexing or Changes
●ACA Federal poverty lines Shared responsibility payment amounts Applicable percentages (taxpayer
contribution, affordability) Note TaxWise revised the ACA Wkt
●Child tax credit not refundable if excluding foreign income
NTTC Training – TY2015 15
TAX-AIDE
Extended Provisions – Permanently Extended
● Qualified Charitable Distribution – QCD (tax-free distribution from IRAs to public charities for individuals age 70½ or older)
● Adjustment for educator classroom expenses up to $250 – indexed starting in 2016
● Deduction for state and local general sales taxes
NTTC Training – TY2015 16
TAX-AIDE
Extended Provisions – Extended through 2016
●COD exclusion for principal residence – no longer separate course (see Pub 4491)
●Premiums for mortgage insurance deductible as interest for qualified residence
●Nonbusiness energy property credit●Adjustment for qualified tuition and fees
NTTC Training – TY2015 17
TAX-AIDE
Due Dates
● 2015 tax returns are due Monday, April 18, 2016*
● 2016 estimated payments due April 18, 2016* June 15, 2016 September 15, 2016 January 17, 2017
* April 19 for Maine or MassachusettsNTTC Training – TY2015 18
TAX-AIDE
Social Security Number Printouts
● SSA does not provide Social Security number printouts
●Taxpayers who do not have their Social Security card can request a replacement Social Security card (estimated to take two weeks)
● SSA-1099 will contain only last 4 digits of SSN
NTTC Training – TY2015 19
TAX-AIDE
Social Security Number Printouts
●Alternatively, For TY2015, if taxpayer has picture ID
and all income documents contain same name and number, carry forward data can be used as proof of name and SSN
NTTC Training – TY2015 20
TAX-AIDE
Tax Law Changes 2015
Comments?
Questions?
NTTC Training – TY2015 21
