1. TAX-AIDE Other Non- Refundable Credits Pub 4491 – Pg 259 Pub 4012 – Tab G Form 1040Lines 50, 52, 53 NTTC Training – 2013 1

2. TAX-AIDE Other Non-Refundable Credits ● Retirement Savings Credit ● Nonbusiness Energy Property Credit ● Credit for the Elderly or Disabled  Nonrefundable – offset income tax only, no cash back NTTC Training – 2013 2

3. TAX-AIDE Intake/Interview ● Ask if taxpayer made (or plans to make) contribution to retirement account ● May not show on any tax document NTTC Training – 2013 3

4. TAX-AIDE Retirement Savings Credit ● For qualifying taxpayers who made contributions to qualified retirement plan ● Review Decision Tree and Reminders (Pub 4012, pg G-6) ● Requires Form 8880 (Pub 4012, pg G-7) ● TaxWise computes credit – carefully verify data – W-2 Box 12 and 14 (Pub 4012, pg D-6) NTTC Training – 2013 4

5. TAX-AIDE Form 8880 Automatically added to tree if W-2 or IRA Wkt shows eligible contributions NTTC Training – 2013 5

6. TAX-AIDE Retirement Savings Credit Form 8880 Must complete section 4 NTTC Training – 2013 6

7. TAX-AIDE Retirement Savings Credit ● Form 8880 Line 4 – distributions received during 2013, 2012, or 2011 ● Do not include distributions listed on Pub 4012 page G-7 e.g., some government plans have required contributions and do not permit elective contributions – distributions from those plans should not be input NTTC Training – 2013 7

8. TAX-AIDE Intake/Interview – Energy Related Improvements ● Note – solar electric, solar water heating, small wind energy, and geothermal heat pump property costs are out of scope NTTC Training – 2013 8

9. TAX-AIDE Residential Energy Credits ● Nonbusiness Energy Property Credit extended but with limits Lifetime limits  Cumulative $500 ($200 for windows) for all tax years after 2005 Individual item limits Improvements to Main Home only Pub 4012, pg G-10 NTTC Training – 2013 9

10. TAX-AIDE Residential Energy Credits Placed in service in 2013 Energy efficient windows, doors, insulation, roof (materials only, not installation) Heating, ventilating, and air conditioning, hot water heaters (materials and installation) Pub 4012, page G-10 NTTC Training – 2013 10

11. TAX-AIDE Residential Energy Credits ● Link from 1040 line 52 to Form 5695 Part II on Page 2 ● Form 5695 Part I on page 1 (solar electric, solar water heating, small wind energy, and geothermal heat pump) – Out-of-scope Pub 4491, page 264 Pub 4012, page G-10 NTTC Training – 2013 11

12. TAX-AIDE Form 5695, Pg 2 Need prior year returns NTTC Training – 2013 12

13. TAX-AIDE Elderly or Disabled Credit ● Taxpayer is 65 or over, or under 65 and retired on permanent and total disability ● Income limits – see Pub 4012, page G-11 ● Schedule R TaxWise computes automatically if correct data input (including SSA/RRB on 1040 Wkt 1) Must enter any nontaxable income not entered on the 1040 on Sch R, pg 2 Pub 4491, page 262 NTTC Training – 2013 13

14. TAX-AIDE Quality Review – Misc Non-Refundable Credits ● Confirm retirement contributions on W- 2 or that are not on a tax document (IRAs) are properly captured ● Ensure energy credits don’t exceed cumulative limits ● Verify if elderly or disabled credit is computed NTTC Training – 2013 14

15. TAX-AIDE Summary with Taxpayer ● Explain if 2013 energy expenditures disallowed ● Review benefits of retirement contribution, if any NTTC Training – 2013 15

16. TAX-AIDE Miscellaneous Credits Questions? Comments? NTTC Training – 2013 16

17. TAX-AIDE Let’s Practice in TaxWise ● Review what happened with Form 8880, Retirement Savings Credit, and Child Tax Credit in the Kent/Bryant return in Pub 4491W ● From Pub 4491W page 69, complete Form 5695 to obtain the energy credit for the Kent/Bryant NTTC Training – 2013 17