TaxWise® Tax Year 2015 Changes

No Official List of Changes CCH has not provided an official list of differences between 2014 and 2015 TaxWise These are the changes that the NTTC has found There may be others NTTC Training – TY2015

Technology Must use Tab button in Google Chrome to move from field to field within return Run IE 11 in Compatibility View for Enter key, calculator, buttons on W-2, etc. to work – but first screen when opening TaxWise is then: Click continue to continue to login page NTTC Training – TY2015

Technology Ctrl + C now performs as Copy Ctrl + V performs as Paste TaxWise Online 2013, 2014 and 2015 work with Windows 10 but still needs Internet Explorer for browser Chrome works for creating or editing templates NTTC Training – TY2015

Activate Users All users can be activated or unactivated with a single operation NTTC Training – TY2015

New User Role Role of ReturnPrinter must be added for any user who will be printing returns (required to create the pdf) Everyone who accesses TWO must be assigned the role of licensed user in addition to any other roles. NTTC Training – TY2015

Identity Theft Protection Identity theft PIN for dependents Driver’s license verification W-2 verification codes NTTC Training – TY2015

Identity Theft PIN for Dependents Main Information Sheet Data carries over to Form 2441 for dependent care credit NTTC Training – TY2015

Driver’s License Verification Main Information Sheet Optional this year unless required by your state NTTC Training – TY2015

W-2 Verification Code W-2 Enter – but not included on all W-2s NTTC Training – TY2015

Difficulty of Care Payments Worksheet 7 TaxWise will adjust earned income for EIC and Additional Child Tax Credit – and Child and Dependent Care Credit when TW2015 is fixed If reported on Form 1099-Misc, enter on Line 2 and remove on Line 17 with description of “Notice 2014-7” Optional this year and not included on all W-2s NTTC Training – TY2015

Capital Gain Worksheet– Holding Period for “Various” Short or Long Term determination now based on 1099 Column, so “Various” can be used with short term transactions. No over-ride needed NTTC Training – TY2015

ACA Worksheets ACA Worksheet has two pages and new questions Affordability Worksheet added Marketplace Affordability Worksheet added NTTC Training – TY2015

ACA Worksheet Page 1 “Yes” adds Form 8962 to the forms tree NTTC Training – TY2015

ACA Worksheet Page 1 First button: No SRP Second button: SRP part of the year (must also mark which months) Third button: SRP for entire year For each person whose exemption is claimed on this return TaxWise should put checkmark on Form 1040 Lines 61 if everyone has coverage and no exemption form 8965 is in the return, but it’s not working at this time. NTTC Training – TY2015

ACA Worksheet Page 2 Bottom of 2014 ACA Worksheet is on the bottom of Page 2 of 2015 ACA Worksheet. NTTC Training – TY2015

Affordability Worksheet To bring up the new Affordability Worksheet, add Aff Wkt NTTC Training – TY2015

Marketplace Affordability Worksheet To bring up the new Marketplace Affordability Worksheet, add MCA Wkt NTTC Training – TY2015

Form 8965 Exemption 7a TaxWise auto checks 7a based on MAGI on return Includes dependents’ income entered on ACA Wkt Does not auto-check 7b exemption! NTTC Training – TY2015

Form 8965 Continuation Sheet If need more lines for exemptions: NTTC Training – TY2015

New Prep Use Field Are you or your spouse a Veteran from the US Armed Forces? Answer YES or NO NTTC Training – TY2015

ABLE Distributions New input field on Wkt2 (should not be needed – if taxable, return is OOS) NTTC Training – TY2015

More to Come? MyRA contribution From all or part of tax refund More diagnostics for ACA and other areas in January NTTC Training – TY2015

Identified Issues Foreign tax credit simplified limitation election only applies when creditable foreign taxes are not more than $300 or $600 if MFJ TaxWise allows larger amount in top section of Form 1116 TWO instructions incorrectly state that only dividend or interest foreign income is permitted for simplified limitation election TWO instructions incorrectly state that only foreign taxes reported on Forms 1099-DIV or 1099-INT are eligible for simplified limitation election The IRS instructions to the form limit use of the simplified limitation election to passive income, which includes, among other things, annuities and royalties. In addition to foreign taxes reported on forms 1099-DIV or 1099-INT, the IRS instructions to 1116 permit taxes reported on Schedule K-1 (1041, 1065, 1065-B or 1120S) for the simplified limitation election. NTTC Training – TY2015

Identified Issues SRP table error for March NTTC Training – TY2015

Identified Issues 1040 Wkt 7 Line 16 Medicaid Waiver income offset correctly adjusts for EIC and ACTC but doesn’t change earned income on Form 2441 for CDC Form 8615 (kiddie tax) not activated when there is filing requirement and has incorrect value on Line 9 NTTC Training – TY2015

Identified Issues Form 8962 Lines 5 and 7: TaxWise is using 2014 instructions and rounding percentage on line 5 Should not be rounded for TY 2015 TaxWise is using 2014 table of applicable figures on line 7 Will be fixed before production starts Have requested earlier rectification F 8962 uses .0570 instead of .0574 for income at 187% of Federal poverty line for example NTTC Training – TY2015

Identified Issues 1040 Line 61 Full-year coverage box incorrectly checked when exemption form (8965) is used in return Only one Marketplace Affordability Worksheet – may need more than one CCH training video on ACA MCA Wkt is seriously flawed F 8962 uses .0570 instead of .0574 for income at 187% of Federal poverty line for example NTTC Training – TY2015

TaxWise Changes Questions? Comments… NTTC Training – TY2015