1. TAX-AIDE Federal Tax Law Changes – Tax Year 2015 Pub 4012 – Pages Ext 1 – 8 Pub 4491 – Pages iii – vi

2. TAX-AIDE Federal Tax Law Changes 2015 ● New provisions ● Indexing ● Extended provisions ● Due Dates ● Social security number printouts NTTC Training – TY2015 2

3. 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

4. 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

5. 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

6. 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

7. TAX-AIDE Indexing – Standard Deduction Std Ded+ if blind+ if ≥65 Single$ 6,300$ 1,550 MFJ12,6001,250 ea MFS6,3001,250* HH9,2501,550 QW12,6001,250 *also applies to dependent spouse if claimed NTTC Training – TY2015 7

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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 Massachusetts NTTC Training – TY2015 18

19. 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

20. 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

21. TAX-AIDE Tax Law Changes 2015 Comments? Questions? NTTC Training – TY2015 21