4012

VITA/TCE Volunteer Resource Guide

Volunteer Income Tax Assistance (VITA) / Tax Counseling for the Elderly (TCE) 2022 RETURNS

Take your VITA/TCE training online at https://apps.irs.gov/

app/vita. Link to the Practice Lab to gain experience using
tax software and take the certification test online, with
immediate scoring and feedback.

Publication 4012 (Rev. 10-2022) Catalog Number 34183E Department of the Treasury Internal Revenue Service www.irs.gov
 How to Get Technical Updates?
Updates to the volunteer training materials will be contained in Publication 4491-X, VITA/TCE Training
Supplement. The most recent version can be downloaded at: www.irs.gov/pub/irs-pdf/p4491x.pdf

Volunteer Standards of Conduct

VITA/TCE Program
The mission of the VITA/TCE return preparation program is to assist eligible taxpayers in satisfying their
tax responsibilities by providing free tax return preparation. To establish the greatest degree of public trust,
volunteers are required to maintain the highest standards of ethical conduct and provide quality service.
Annually all VITA/TCE volunteers (whether paid or unpaid) must pass the Volunteer Standards of
Conduct (VSC) certification test and agree that they will adhere to the VSC by signing and dating Form
13615, Volunteer Standards of Conduct Agreement, prior to volunteering at a VITA/TCE site. In addition,
return preparers, quality reviewers, coordinators, and tax law instructors must certify in Intake/Interview
and Quality Review. Volunteers who answer tax law questions, instruct tax law classes, prepare or
correct tax returns, or conduct quality reviews of completed returns must also certify in tax law prior to
signing the form. Form 13615 is not valid until the site coordinator, sponsoring partner, instructor, or IRS
contact confirms the volunteer’s identity, name and address, and signs and dates the form and signs
and dates the form.
As a volunteer in the VITA/TCE Program, you must adhere to the following Volunteer Standards of
Conduct:
VSC 1 - Follow the Quality Site Requirements (QSR).
VSC 2 - Do not accept payment, ask for donations, or accept refund payments for federal or state tax
return preparation from customers.
VSC 3 - Do not solicit business from taxpayers you assist or use the information you gained about them
(their information) for any direct or indirect personal benefit for yourself or any other
specific individual.
VSC 4 - Do not knowingly prepare false returns.
VSC 5 - Do not engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other
conduct considered to have a negative effect on the VITA/TCE program.
VSC 6 - Treat all taxpayers in a professional, courteous, and respectful manner.

Failure to comply with these standards could result in, but is not limited to, the following:
• Your removal from all VITA/TCE program;
• Inclusion in the IRS Volunteer Registry to bar future VITA/TCE activity indefinitely;
• Deactivation of your sponsoring partner’s site VITA/TCE EFIN (electronic filing ID number);
• Removal of all IRS products, supplies, loaned equipment, and taxpayer information from your site;
• Termination of your sponsoring organization’s partnership with the IRS;
• Termination of grant funds from the IRS to your sponsoring partner; and
• Referral of your conduct for potential TIGTA and criminal investigations.

TaxSlayer® is a copyrighted software program owned by Rhodes Computer Services. All screen shots that
appear throughout the official Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly
(TCE) training materials are used with the permission of Rhodes Computer Services.
Confidentiality Statement:
All tax information you receive from taxpayers in your volunteer capacity is strictly confidential and should not,
under any circumstances, be disclosed to unauthorized individuals.
 4012 Table of Contents
How to Use This Guide . . . . . . . . . . . . . 5 Qualifying Child of More Than One Person C-2

Scope of Service 6 Table 1: All Dependents C-3

VITA/TCE
VITA/TCE Quality Site Requirements 21 Table 2: Qualifying Relative Dependents C-4
Table 2: Qualifying Relative Dependents C-5
Table 3: Children of Divorced or Separated Parents
Legislative Extenders . . . . . . . . . . . . Ext-i or Parents Who Live Apart C-6
Discharge of Qualified Principal Residence Worksheet for Determining Support C-7
Indebtedness Ext-1
Screening Sheet for Foreclosures/Abandonments
and Cancellation of Debt Ext-2 Tab D: Income . . . . . . . . . . . . . . . . . D-i
Entering Forgiveness of Qualified Principal Income Quick Reference Guide D-1
Residence Indebtedness Ext-4 Nontaxable Income D-2
Foreclosure and Abandonment Key Highlights Ext-5 Armed Forces Gross Income D-3
Residential Energy Credits Ext-6 How/Where to Enter Income D-5
Form W-2
W-2 Instructions D-6
Tab A: Who Must File . . . . . . . . . . . . . A-i Form W-2
W-2 Reference Guide for Common Box 12
Codes D-8
Chart A – For Most People Who Must File A-1
Entering Medicaid Waiver
Waiver Payments D-9
Chart B – For Children and Other Dependents A-2
Interest Income D-10
Form 8615, Tax for Certain Children who have
Unearned Income (Kiddie Tax) A-2 Seller Financed Mortgage Interest D-13
Chart C – Other Situations When You Must File A-3 Dividend Income (Form 1099-DIV) D-14
Chart D – Who Should File A-4 State and Local Refund Worksheet
Worksheet D-16
Schedule C Self-Employment Income D-17
Form 1099 NEC D-18
Tab B: Starting a Return and Filing
Connecting the Form 1099 to Schedule C D-19
Status . . . . . . . . . . . . . . . . . . . . . B-i
Form 1099-K D-20
Form 1040 Job Aid B-1
Schedule C – Menu D-21
Form 1040 Schedules B-3
Schedule C - Questions About Your Business D-22
Form 13614-C Job Aid for Volunteers B-4
Schedule C - General Expenses D-23
Starting a New Return B-8
Schedule C - Car and Truck Expenses D-24
Determination of Filing Status – Decision Tree B-10
Schedule D Capital Gains and Losses D-26
Filing Status - Interview Tips B-111
B-1
Entering Capital Gains and Losses D-27
Who Is a Qualifying Person Qualifying You To File
as Head of Household? B-12 Adjustments to Basis in TaxSlayer D-30

Cost of Keeping Up a Home B-13 Capital Gains or Losses Sale of Main Home D-32

Entering Basic Information B-14 IRA/Pension Distributions (Form 1099-R, Form

SSA 1099) D-36
Determining the Last Name of Taxpayer B-16
Form 1099-R D-37
Entering Dependent/Qualifying Person B-20
Taxable Amount Not Determined D-39
Form 1099-R Simplified Method D-40
Tab C: Dependents . . . . . . . . . . . . . . C-i Form 1099-R Rollovers and Disability Under
Overview of the Rules for Claiming a Dependent C-1 Minimum Retirement Age D-41

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 Form 1099-R Roth IRA D-42 Standard Deduction Worksheet
Worksheet for Dependents F-2
Form 1099-R Box 7 Distribution Codes D-43 Interview Tips – Itemized Deductions F-3
Form 1099-R Nontaxable Income D-45 Schedule A – Itemized Deductions F-5
Tax-Favorable Treatment of Coronavirus-Related Schedule A - Taxes You Paid F-8
Retirement Distributions D-46 Schedule A - Sales Tax Deduction F-9
Form RRB-1099-R Distributions D-48 Schedule A - Miscellaneous Deductions F-12
Form SSA-1099/RRB-1099 Tier 1 Distributions D-49 Qualified Business Income Deduction F-13
Form SSA-1099 Lump-Sum Distributions D-50
Entering K-1 Information in TaxSlayer D-51
Tab G: Nonrefundable Credits.
Credits. . . . . . . . . G-i
Schedule K-1 Scope D-52
Nonrefundable Credits G-1
Entering Rental and Royalty Income in TaxSlayer D-54
Form 8863 G-1
Less Common Income D-56
Child Tax
Tax Credit G-2
Form 1099-MISC D-58
Additional Child Tax Credit (ACTC) – General
Entering Foreign Earned Income Exclusion Eligibility G-3
Information in TaxSlayer D-59
Table 1: Does Your Qualifying Child Qualify You for
Entering Other Compensation in TaxSlayer D-63 the Child Tax Credit or Credit for Other Dependents? G-4
Publication 4731 D-64 Credit for Other Dependents G-5
Insolvency Determination Worksheet
Worksheet D-65 Table 2: Does Your Qualifying Relative Qualify You
Entering Cancellation of Credit Card Debt and for the Credit for Other Dependents? G-5
Student Loan Debt Forgiveness in TaxSlayer D-66 Form 11
1116 – Foreign Tax Credit G-6
Child and Dependent Care Credit Expenses G-9
Tab E: Adjustments to Income.
Income. . . . . . . . . E-i Who is a qualifying person? G-9
Adjustments to Income E-1 Qualified work-related expenses G-9
Employee Business Expenses E-2 Credit for Child & Dependent Care Expenses –
Moving Expenses E-3 Screening Sheet G-10

Educator Expenses E-4 Form 2441 – Credit for Child and Dependent Care
Expenses G-111
G-1
Self-Employed Health Insurance Deduction E-5
Retirement Savings Contributions Credit –
Health Saving Accounts (HSA) E-6 Screening Sheet G-14
How will you know if the taxpayer has an HSA issue? E-7 Important Reminders for Retirement Savings
2022 Contribution Limits E-7 Contributions Credit G-14

Qualifying Medical Expenses E-9 Credit for the Elderly or the Disabled – Screening
Sheet G-17
Alimony Requirements (Instruments Executed After
1984 and Before 2019) E-9 Entering the Credit for the Elderly or the Disabled G-18

IRA Deduction E-10

Student Loan Interest Deduction at a Glance E-111
E-1 Tab H: Other Taxes, Payments, and
Student Loan Interest and Secure Act of 2019 E-111
E-1 Refundable Credits . . . . . . . . . . . . . . H-i
Other Taxes
Taxes H-1
Tab F: Deductions . . . . . . . . . . . . . . . F-i Form 8615, Tax for Certain Children Who Have
Unearned Income (Kiddie Tax) H-3
Standard Deduction F-1
Additional Taxes on HSAs H-6
Persons Not Eligible for the Standard Deduction F-1
Payments and Estimates H-7
Standard Deduction Chart for People Born Before
January 2, 1958 or Who are Blind F-2 Premium Tax Credit H-8

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 Premium Tax Credit: Form 1095-A Overview H-8 Tab K: Finishing the Return . . . . . . . . . . K-i
Out of Scope Situations H-111
H-1 Completing the e-File Section K-1
Premium Tax Credit, Form 8962 H-12 Customer Portal K-7
Premium Tax Credit – Special Situations H-13 Quality Review Process K-8
Multiple Forms 1095-A H-13 TaxSlayer Basic Quality Review - Print Set K-10
Entering multiple Forms 1095-A on one Form 8962 H-13 Return Signature K-12
The taxpayer is ineligible for the PTC H-14 Printing the Tax Return K-14
PTC Eligibility – QSEHRA H-14 Distributing Copies of Returns K-15
PTC Eligibility – ICHRA H-14 Where to File Paper Returns K-15
Overlapping Coverage H-14 Pointers for Direct Deposit of Refunds K-16
Handling Unexpected APTC Repayments H-16 Balance Due Returns K-18
Review the Health Care section in the software H-16 Estimated Tax Payments K-22
Consider income adjustments to reduce household
income H-16
Tab L: Resident/NR Alien . . . . . . . . . . . L-i
Consider married filing separately: H-17
Resident or Nonresident Alien Decision Tree L-1
How to Use the Healthcare.gov Tax Tool H-18
Resident or Nonresident Alien Decision Chart L-2
Who should use this tool? H-18
Electronic Filing of Returns with Valid
Valid ITIN L-3
Federal Poverty Lines H-20
Creating a Temporary ITIN when the Spouse and/or
Applicable Figure Table
Table Tax
Tax Year
Year 2022 - Applicable Dependent(s) are Applying for an ITIN L-4
Percentage/Decimal H-21

Tab M: Other Returns . . . . . . . . . . . . . M-i

Tab I: Earned Income Credit . . . . . . . . . I-i
Amended Returns M-1
Earned Income Table
Table I-1
Prior Year Returns M-7
Common EIC Filing Errors I-1
Filing an Injured Spouse Allocation in TaxSlayer M-8
Summary of EIC Eligibility Requirements I-2
Record Keeping M-9
EIC General Eligibility Rules I-3 Filing an Extension Using TaxSlayer M-10
EIC With a Qualifying Child I-4
EIC Without a Qualifying Child I-5
Tab N: Using TaxSlayer® Pro Desktop . . . . N-i
Qualifying Child of More than One Person I-5 Navigating TaxSlayer® Pro (Desktop) N-1
Disallowance of Certain Credits I-6 General Input Highlights N-3
Personal Information N-3
Tab J: Education Benefits . . . . . . . . . . . J-i Premium Tax Credit N-4
Tax Treatment of Scholarship and Fellowship Income – Key Highlights N-5
Payments J-1
Credits – Key Highlights N-8
Highlights of Education Tax Benefits for Tax Year 2022 J-3
Printing from Desktop N-9
Education Credits J-6
Determining Qualified Education Expenses J-9
Entering Education Credits J-10
Tab O: Using TaxSlayer® Pro Online . . . . . O-i
Logging in to TaxSlayer Pro Online O-1
Student Under Age 24 Claiming the American
Opportunity Credit J-12 Pro Online Homepage O-3

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 Navigating TaxSlayer® Pro Online O-5 Tab Q: TaxSlayer® Admin. . . . . . . . . . . Q-i
Navigating TaxSlayer
TaxSlayer O-8 Contingency Plans for Continuing VITA/TCE
VITA/TCE Return
Preparation Operations Q-1

Tab P: Partner Resources . . . . . . . . . . . P-i TaxSlayer Pro Alternative Solution Contingency Plan Q-3

Resources for Assisting Taxpayers P-1 Contingency Plan Option Q-4

IP PIN Guidance for Identity Theft Victims

Victims P-3 Rejected Returns Q-6

Voluntary Opt-In IP PIN P-5 Top Reject Codes Q-6

Frequent Taxpayer Inquiries P-6

Where to File P-9 Tab R: Glossary and Index . . . . . . . . . . R-i
Where’ss My Refund
Where’ P-10 Glossary R-1
Interactive Tax Assistant (ITA)
(ITA) P-10 Index R-4

4
 How to Use This Guide
This publication is designed as a guide to assist you in preparing a return using TaxSlayer.* Not all forms
are authorized for all volunteer programs. Forms intended specifically for the Military VITA Program will be
annotated as such. Volunteers should only provide tax assistance based on their level of certification— Basic,
Advanced, Military, International, Foreign Student and Puerto Rico 1 & 2.
The screening sheets/decision trees, charts and interview tips are from your training materials, Publication 17,
Your Federal Income Tax Guide For Individuals, and other tax topic related publications. Use these tools
during the dialogue with the taxpayer—“ask the right questions; get the right answers.”

Notes Tips Caution TaxSlayer Navigation

Here are the Icons used for ease of navigation though-out this publication. Hyperlinks in blue bold type will
link you to the link or document labeled. Also the Table of Contents is linked to jump to every listing.
Interactive Tax Assistant (ITA), is an excellent tool to guide you through answers to tax law questions and
is available www.irs.gov/help/ita.
SPEC allows volunteers to use the IRS provided software to prepare and electronically file their own tax
return and the returns of family and friends. Unlike VITA/TCE returns, these returns have no income or tax
law limitations.

The software may change after this publication becomes available. Screen shots in this guide
may depict last year’s version of the software. Follow the menus and prompts to enter current year
tax information in the software. If additional information is needed, refer to TaxSlayer’s VITA/TCE
Blog. The blog will keep you up to date with any changes and notifications regarding preparing, creating
or modifying returns. Publication 4491-X, VITA/TCE Training Supplement, will be released in January to
notify volunteers of any tax law and software updates.
*TaxSlayer is a copyrighted software program owned by Rhodes Computer Services. All screen shots that appear throughout the official Volunteer
Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) training materials are used with the permission of Rhodes Computer Services.

5
 Scope of Service
When using the list, please note that column 3 (In Scope?) does not stand alone. Additional information contained
in columns 4 and 5 (Scope Limitations and Certification Levels) may include topics or certification levels that affect
whether volunteers may or may not prepare the return under the provisions of the Volunteer Protection Act.
If no certification level is listed, the topic is in scope for all certification levels.
Many forms and schedules that are out of scope are included as reference. If a form or schedule is not listed, it is out
of scope because no training has been provided. In addition, if a volunteer has not been trained on an in-scope tax law
topic, that topic is out of scope for that volunteer.

F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
F 1040 Digital Y In scope if taxpayers can check the No box. Taxpayers check No if they:
asset • held no virtual currency for the tax year or if the taxpayer’s only trans­
(virtual actions involving virtual currency during the tax year were purchases of
currency) virtual currency with real currency
question • held virtual currency in a wallet or account
• transferred virtual currency from one wallet or account they own or con­
trol to another that they own or control
• received virtual currency as an inheritance or gift
F 1040 1 Yes Wages, salaries, tips, etc. Advanced certification
required for unreported
tip income.
F 1040 2a, b Yes Tax-exempt and taxable interest
See F 1099-INT for limitations
F 1040 3a, b Yes Qualified and Ordinary dividends
See F 1099-DIV for limitations
F 1040 4a, 4b, Yes IRAs, pensions and annuities Basic certification if
5a, 5b See F 1099-R for limitations taxable amount is
Not in scope for: determined. Advanced
• Foreign retirement arrangements that may need special certification required if
reporting on FINCEN 114 or F 8938 taxable amount is NOT
determined.
F 1040 6a, b Yes Social Security benefits
Not in scope for:
• Foreign social security from Canada or Germany that is treated as U.S.
Social Security
F 1040 7 Yes Capital gain or loss. Advanced certification
See F 8949 limitations required.
F 1040 12 Yes Standard deduction or Itemized deductions Advanced certification
See F 1040 Schedule A limitations required for itemized
deductions.
F 1040 13 Yes Qualified Business Income deduction
In scope for:
• The 20% deduction for sole proprietors and taxpayers with
qualifying REIT dividends
• Form 8995
Not in scope for:
• Taxable income over $175,050 ($340,100 if MFJ)
• Publicly traded partnership income
• Form 8995-A
F 1040 16 Yes Tax
See Schedule 2 for limitations
F 1040 19 Yes Child tax credit or credit for other dependents
F 1040 23 Yes Other taxes
See limitations on Schedule 2

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F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
F 1040 25 Yes Federal income tax withheld from Forms W-2, 1099, and other forms
F 1040 26 Yes Estimated tax payments and amount applied from prior year return
F 1040 27, 28, 29 Yes Earned income credit, Additional child tax credit, American opportunity credit
See Schedule 3 for limitations
F 1040 35 a,b,c,d Yes Direct deposit of refund
See also F 8888
F 1040 36 Yes Refund applied to estimated tax
F 1040 37 Yes Amount you owe
F 1040 38 No Estimated tax penalty
F 1040-ES Yes Estimated Tax for Individuals
F 1040-NR Yes U.S. Nonresident Alien Income Tax Return Foreign Student
In scope (with Foreign Student certification only) for: certification required
• Students on F, J, M, or Q Visa
• Teacher or trainee on J Visa
Not in scope for:
• Individuals having a dual status for the tax year
• Nonresident aliens who do not meet the green card or substantial
presence test and are not married to a U.S. citizen or resident alien
F 1040-PR Yes Self-Employment Tax Return – Puerto Rico (in Spanish) Puerto Rico
certification required
F 1040-SP Yes Declaracion de Impuestos de los Estados Unidos Sobre los Ingresos Perso­
nales See limitations for F 1040
F 1040-SR Yes U.S. Income Tax Return for Seniors
See limitations for F 1040
F 1040-SS Yes U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit Puerto Rico
for Bona Fide Residents of Puerto Rico) certification required
F 1040-X Yes Amended U.S. Individual Income Tax Return Advanced certification
Not in scope for: required
• Original return was out of scope and is not brought into scope by the
amendment
• Taxpayers who may qualify for an exception to the three-year time limit
for filing an amended return except for applying for standard refund of tax
on military disability payments
F W-2 Yes Wage and Tax Statement All certification levels
See F 8615 limitations for children with unearned income International
Not in scope for: certification required
• Box 12 codes: for foreign employer
| Q (Military certification required. Active duty military taxpayer compensation
returns only)
| R, T

| FF if premium tax credits are involved

| W (Advanced certification required)

• Ministers
• Other members of the clergy who present issues such as: parsonage/
housing allowance, whether earnings are covered under FICA or Self-
Employed Contributions Act (SECA) or rules for determining exemption
from coverage
F W-2G Yes Certain Gambling Winnings
Not in scope for:
Professional gamblers who use Schedule C
F W-7 Yes Application for IRS Individual Taxpayer Identification Number

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F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
S1 1 Yes Taxable refunds, credits or offsets of state or local income taxes
Not in scope for:
Refund for other than previous tax year
S1 2a, b Yes Alimony received, Date of original divorce or separation agreement
Not in scope for:
Pre-1985 divorces
S1 3 Yes Business income or loss Advanced certification
See Schedule C limitations required
S1 4 No Other gains or (losses)
S1 5 Yes Rental real estate, royalties, partnerships, S corporations, trusts, etc. Military certification
See Schedule E limitations required
active duty only
S1 6 No Farm income or (loss)
S1 7 Yes Unemployment compensation
S1 8a–z Yes Other income Advanced certification
See F 1099-MISC, F 1099-PATR, F 1099-Q, F 1099-QA, F 1099-SA, F 982 required for discharge
and F 2555 for limitations of principal residence
In scope for: indebtedness
Cancellation of nonbusiness credit card debt International
Discharge of qualified principal residence indebtedness (if extended) certification required for
Not in scope for: foreign earned income
Cancellation of other debt income, exclusion
Rental, hobby or other income when “not for profit,”
Net operating loss deduction
S1 11 Yes Educator expenses
S1 12 Yes Certain business expenses of reservists, performing artists and fee-basis Military certification
government officials. required
See F 2106 limitations
S1 13 Yes Health saving account deduction Advanced certification
See F 8889 limitations required
S1 14 Yes Moving expenses for members of the Armed Forces Military certification
See F 3903 limitations required
S1 15 Yes Deductible part of self-employment tax Advanced certification
required
S1 16 No Self-employed SEP, SIMPLE and qualified plans
S1 17 Yes Self-employed health insurance deduction Advanced certification
See Schedule C for limitations required
Not in scope for:
Insurance purchased through Marketplace when taxpayer is eligible for
Premium Tax Credit
S1 18 Yes Penalty on early withdrawal of savings
S1 19a, b, Yes Alimony paid recipient SSN, date of divorce or separation agreement
and c Not in scope for:
Pre-1985 divorces
S1 20 Yes IRA deduction Advanced certification
In scope for: required
• Deductible traditional IRA contributions
Not in scope for:
• Nondeductible traditional IRA contributions
S1 21 Yes Student loan interest deduction

8
F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
S2 1 No Alternative minimum tax
S2 2 Yes Excess advance premium tax credit repayment Advanced certification
See F 8962 limitations required
S2 4 Yes Self-employment tax Advanced certification
required
S2 5 Yes Unreported Social Security and Medicare tax on unreported tip income Advanced certification
In scope for: required
• F 4137
S2 6 No Uncollected social security and Medicare tax on wages
S2 8 Yes Additional tax on IRAs, other qualified retirement plans, and other tax-favored Basic certification if addi­
accounts tional tax applies
See F 5329 for limitations Advanced certification
Not in scope for: required if exceptions to
• Taxpayers subject to additional tax due to excess IRA contributions the additional tax apply
S2 9 No Household employment taxes
S2 10 Yes Repayment of first-time homebuyer credit from Form 5405
See F 5405 for limitations
S2 11 No Addtional Medicare Tax
S2 12 No Net investment income tax
S2 13 Yes Uncollected social security and Medicare or RRTA tax on tips or Advanced certification
group-term life insurance from Form W-2, box 12 required
S2 14 No Interest on tax due on installment income from the sale of certain
residential lots and timeshares
S2 15 No Interest on the deferred tax on gain from certain installment sales with a
sales price over $150,000
S2 16 No Recapture of low-interest housing credit
S2 17 Yes Other additional taxes Advanced certification
See F 8889 limitations required
Not in scope for:
• Lines 17a, 17b, 17e-z
S3 1 Yes Foreign tax credit Advanced certification
See F 1116 for limitations required for FTC without
F 1116
International certification
required for F 1116
S3 2 Yes Credit for child and dependent care expenses from Form 2441, line 11
S3 3 Yes Education credits
Not in scope for:
• Taxpayers who must repay (recapture) part or all of an education credit
claimed in a prior year
S3 4 Yes Retirement savings contribution credit
S3 5 Yes Residential energy credits Advanced certification
See F 5695 for limitations required
S3 6a–z Yes Other credits from F 3800, 8801, and (write-in)
In scope for:
• Line d, Schedule R
Not in scope for:
• All other lines

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F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
S3 9 Yes Net premium tax credit Advanced certification
See F 8962 for limitations required
S3 10 Yes Amount paid with request for extension to file
S3 11 Yes Excess Social Security and tier 1 RRTA tax withheld
S3 12 No Credit for federal tax on fuels
S3 13 Yes Other payments or refundable credits Advanced certification
In scope for: F 7202 (Qualified Sick and Family Leave Credits) required for F 7202
Not in scope for:
• All other lines
SA Yes Itemized Deductions Advanced certification
Not in scope for: required
• Investment interest
• Taxpayers affected by a charitable contribution carryover
• Taxpayers affected by limits on charitable deductions
• F 8283 (noncash contribution exceeding $500)
• Form 1098-C, Contributions of Motor Vehicles, Boats and Airplanes
• Donation of property previously depreciated
• Donation of capital gain property (such as securities or art work)
• Casualty or theft losses
SB Yes Interest and Ordinary Dividends
See FinCEN F 114, F 3520 and F 8938 for limitations
See F 1099-INT, F 1099-DIV, and F 1099-OID for limitations
SC Yes Profit or Loss from Business (Sole Proprietorship) Advanced certification
See F 1099-K for limitations required
See F 1099-MISC for limitations
See F 1099-NEC for limitations
Not in scope for:
• Hobby income or not for profit activity
• Professional gamblers
• Bartering
• Any transactions involving digital assets
• Method of accounting other than cash
• Taxpayers who do not materially participate in the business
• Payments made that require F 1099 to be filed
• Returns and allowances
• Cost of goods sold (inventory)
• Total expenses over $35,000
• Vehicle expenses reported as actual expenses
• Contract labor
• Depletion
• Depreciation or when F 4562 is required
• Expenses for employees
• Car rental or lease more than 30 days (use standard mileage rate method
only)
• Casualty losses, amortization
• Business use of home
• Net losses

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F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
SD Yes Capital Gains and Losses Advanced certification
See F 8949 for limitations required
See F 1099-B for limitations
Not in scope for:
• Lines 4 and 11
• Taxpayers who sold any assets other than stock, mutual funds, or a
personal residence
• Taxpayers who trade in options, futures, or other commodities, whether
or not they disposed of any during the year
• Taxpayers who have transactions using digital assets. If the taxpayer
can check the No box to the virtual digital asset question on Form 1040,
the return is in scope. Refer to scope limitations for the digital assets
question at the beginning of the scope of service chart.
• Determination of basis issues:
| Basis of any asset acquired other than by purchase or inheritance,

such as a gift or employee stock option, unless the taxpayer provides

the basis and holding period
| Basis of inherited property determined by a method other than the

FMV of the property on the date of the decedent’s death, unless the
taxpayer provides the basis and holding period
• Like-kind exchanges and worthless securities
• Reduced exclusion computations/determinations for the sale of a home
• Married homeowners who do not meet all requirements to claim the
maximum exclusion on the sale of a home
• Decreases to basis, including deductible casualty losses and gains a
taxpayer postponed from the sale of a previous home before May 7, 1997
• Depreciation during the time the home was used for business purposes
or as rental property
• Taxpayers with “nonqualified use” issues
• Sale of a home used for business purposes or as rental property
SE Yes Supplemental Income and Loss (Rental) Advanced
See F 1099-MISC and S K-1 for limitations certification required for
In scope for: royalties reported on
• Royalties reported on Form 1099-MISC, if there are no associated Form 1099-MISC and
expenses (Advanced) Schedule K-1
• Certain income from Schedules K-1 (Forms 1065, 1120S, and 1041) Military certification re­
(Advanced) quired for rental income
• Home rental (including Part I, lines 5-19) if military certified and taxpay­
er is active duty military
• Rental of personal residence for less than 15 days for the year is not
considered a rental activity and is not taxable income (Advanced) unless
taxpayer is in the rental business or cleaning, linen, food or similar ser­
vices were provided during the rental period (out of scope)
Not in scope for:
• Rental income and expenses for nonmilitary taxpayers
• Taxpayers who rent their property at less than fair rental value
• Rental-related interest expenses other than mortgage interest
• The actual expense method (auto and travel expense deductions)
• Casualty loss
• Completing Form 8582 if volunteers are required to enter additional data
in Form 8582 in the software
• Completing Form 4562
• Taxpayers who are unable to provide an amount for depreciation
• Taxpayers who filed or need to file Form(s) 1099
S EIC Yes Earned Income Credit

11
F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
SF No Profit or Loss From Farming
SH No Household Employment Taxes
SJ No Income Averaging for Farmers and Fishermen
S K-1 Yes Beneficiary, Partner or Shareholder’s Share of Income, Deductions, Credits, Advanced certification
etc. required
In scope for:
• Schedules K-1 (Forms 1065, 1120S, and 1041).
| Taxable and tax-exempt interest income

| Dividend and Qualified dividends income

| Net short- and long-term capital gains and losses

| Royalty income (Schedule E) with no associated expenses

Not in scope for:

• Other income, deductions, and credits not listed above
S LEP Yes Request for Alternative Language Products by Taxpayers With Limited
English Proficiency (LEP)
SQ No Quarterly Notice to Resident Interest Holder of REMIC Taxable Income of
Net Loss Allocation
SR Yes Credit for the Elderly or the Disabled
S SE Yes Self-Employment Tax
Not in scope for:
• Ministers or church workers if special rules apply
S 8812 Yes Additional Child Tax Credit
F T (Timber) No Forest Activities Schedule
F 56 No Notice Concerning Fiduciary Relationship
F 709 No United States Gift (and Generation-Skipping Transfer) Tax Return
F 843 No Claim for refund and request for abatement
F 982 Yes Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section Advanced certification
1082 Basis Adjustment) – (if extended) required
In scope for:
• Line 1e, Line 2, Line 10b
Not in scope for:
• Issues other than discharge of qualified principal residence indebtedness
• Principal residence used in business or as rental property
• Taxpayer filed bankruptcy or was insolvent immediately before the debt
was canceled
F 1040-C No U.S. Departing Alien Income Tax Return
F 1045 No Application for Tentative Refund
F 1066 No Quarterly Notice to Resident Interest Holder of REMIC Taxable Income or
(Sch Q) Net Loss Allocation
F 1095-A Yes Health Insurance Marketplace Statement Advanced certification
required
F 1095-B Yes Health Coverage
F 1095-C Yes Employer Provided Health Insurance Offer and Coverage
F 1098 Yes Mortgage Interest Statement Advanced certification
required
F 1098-C No Contributions of Motor Vehicles, Boats, Airplanes

12
F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
F 1098-E Yes Student Loan Interest Statement
F 1098-MA No Mortgage Assistance Payments
F 1098-Q Yes Qualifying Longevity Annuity Contract Information (information only)
No tax reporting required.
F 1098-T Yes Tuition Statement
Not in scope for:
• Boxes 4 and 6 (Adjustments)
F 1099-A Yes Acquisition or Abandonment of Secured Property Advanced certification
See F 982 for limitations required
In scope for:
• Qualified principal residence (if extended)
F 1099-B Yes Proceeds from Broker and Barter Exchange Transactions Advanced certification
Not in scope for: required
• FATCA filing requirement box checked
• Boxes 1f, 3 and 7-11, 13
F 1099-C Yes Cancellation of Debt Advanced certification
See F 982 for limitations required
In scope only for:
• Nonbusiness credit card debt cancellation including interest in box 3
when taxpayer is solvent before the cancellation
• Discharge of qualified principal residence indebtedness
• Discharge of certain student loan debt in 2021 through 2025
Not in scope for:
• Cancellation of debt when Form 1099-C includes an amount for interest
(exception listed above)
F 1099-CAP Yes Changes in Corporate Control and Capital Structure (information only)
• No tax reporting required.
F 1099-DIV Yes Dividends and Distributions
Not in scope for:
• Taxpayer is a nominee
• Boxes labeled Unrecap Sec. 1250 gain, Section 1202 gain, Collectibles
(28%) gain , Section 897 ordinary dividends, Section 897 capital gain,
Cash liquidation distributions, and Noncash liquidation distributions
• FATCA filing requirement box checked
F 1099-G Yes Certain Government Payments
In scope for:
• Unemployment compensation
• Refunds, credits, or offsets of state or local income tax
• Box 5, RTAA payments
• Box 6, Taxable grants
Not in scope for:
• Box 3 is other than the current tax year
• Boxes 7-9
F 1099-H No Health Coverage Tax Credit

13
F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
F 1099-INT Yes Interest Income
See F 8615 for limitations (children with unearned income)
Not in scope for:
• Taxpayer is a nominee
• An adjustment is needed to any amount reported
• Amounts reported in the box labeled Specified private activity bond
interest if AMT applies
• Amounts reported in the box labeled Bond premium that exceed amounts
reported in the box labeled Interest
• FATCA filing requirement box checked
• Accrued bond interest other than for savings bonds
• Bonds bought or sold between interest payment dates other than for
savings bonds
• Bond premium on Treasury obligations that exceed Interest on U.S.
Savings Bonds and Treasury obligations
• Bond premium on tax-exempt bond that exceed Tax-exempt interest
F 1099-K Yes Payment Card and Third Party Network Transactions Advanced certification
In scope for: required; Military certifica­
• Taxable income received for self-employment income (such as tion if received for rental
shared-economy driving). income
• Form 1099-K received for rental income is in scope for Military certifica­
tion only.
Not in scope for:
• Forms 1099-K received for any other type of taxable income
F 1099-LTC Yes Long-Term Care and Accelerated Death Benefits Advanced certification
required
F 1099­ Yes Miscellaneous Information Military certification
MISC Not in scope for: required for Box 1
• Box 5 Fishing boat proceeds Basic certification
• Boxes 7-15 required for Box 3
• FATCA filing requirement box checked Advanced certification
required for all other
entries
F 1099-NEC Yes Nonemployee compensation Advanced Certification
Not in scope for: required
• Athletes receiving NIL income
F 1099-OID Yes Original Issue Discount
Not in scope for:
• FATCA filing requirement box checked
• Box 6 Acquisition premium
• Adjustment needed, or no form received
F 1099­ Yes Taxable Distributions Received From Cooperatives Advanced certification
PATR In scope for: required
• Box 1 for personal use only
F 1099-Q Yes Payment From Qualified Education Programs (under section 529 and 530)
Not in scope for:
Distributions from Educational Savings Accounts if:
• Funds were not used for qualified education expenses or
• Distribution was more than the amount of the qualified expenses
F 1099-QA Yes Distribution from ABLE Account
Not in scope for:
• Distribution from ABLE Account that was more than the amount of the
qualified expenses

14
F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
F 1099-R Yes Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, Basic certification if
F CSA IRAs, Insurance Contracts, etc. taxable amount is
1099-R Not in scope for: determined
• IRA rollovers that do not meet the tax-free requirements
• Taxpayers who used the General Rule to figure the taxable portion of Advanced certification
pensions and/or annuities for past years required if taxable
• Box 7 codes 2 and 7, if the IRA/SEP/SIMPLE box is checked and there amount is NOT
were nondeductible contributions determined
• Box 7 codes 5, 6, 8, 9, A, E, J, K, N, P, R, T, U, W
F RRB-1099 Yes Payments by the Railroad Retirement Board Advanced certification
Annuities or Pensions by the Railroad Retirement Board required
F 1099-S Yes Proceeds from Real Estate Transactions Advanced certification
In scope for: required
• Personal residence
Not in scope for:
• Home was used for rental purposes
• Sales of business property
• Installment sales income
• Like-kind exchanges
F 1099-SA Yes Distributions From an HSA, Archer MSA or Medicare Advantage MSA Advanced certification
See F 8889 for limitations required
Not in scope for: Archer MSA, Medicare Advantage MSA
F SSA-1099 Yes Social Security Benefit Statement
F 1116 Yes Foreign Tax Credit (Individual, Estate or Trust) International
In scope for: certification required for
• Taxpayers who have foreign tax paid reported on F 1099-INT, F 1099­ F 1116
DIV, or S K-1 and can elect to report foreign tax without filing Form 1116
(Advanced certification)
Not in scope for:
• Taxpayers who may deduct a foreign income tax that is not allowed as a
credit in certain circumstances
• Certain expenses deducted to reduce foreign gross income
• Taxpayers who must report a carryback or carryover on Form 1116
• Taxpayers who must file a separate Form 1116 required for foreign income
from a sanctioned country, using the “Section 901(j) income” category
F 1127 No Extension of Time for Payment of Tax Due to Undue Hardship
F 1310 Yes Statement of Person Claiming Refund Due a Deceased Taxpayer
F 2106 Yes Employee Business Expenses Military certification
In scope for: required
• Reservist expenses (adjustment to gross income)
• U.S. Armed Forces members who were provided a commuter highway
vehicle (such as a van) by their employer
F 2120 Yes Multiple Support Declaration
F 2210 No Underpayment of Estimated Tax by Individuals, Estates and Trusts
F 2439 No Notice to Shareholder of Undistributed Long-Term Capital Gains
F 2441 Yes Child and Dependent Care Expenses
Out of scope for:
• Taxpayers who need assistance in determining if employment taxes are
owed for household employees
F 2555 Yes Foreign Earned Income International
certification required

15
F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
F 2848 Yes Power of Attorney and Declaration of Representative
(Very limited uses in form instructions)
F 3468 No Investment Credit
F 3520 No Foreign Trusts/Foreign Gifts
F 3800 No General Business Credit
F 4136 No Credit for Federal Tax Paid on Fuels
F 4137 Yes Social Security and Medicare Taxes on Unreported Tip Income Advanced certification
required
F 4562 No Depreciation and Amortization (including information on listed property)
F 4684 No Casualties and Thefts
F 4797 No Sales of Business Property
F 4835 No Farm Rental Income and Expenses
F 4852 Yes Substitute for F W-2 or F 1099-R
F 4868 Yes Application for Automatic Extension of Time to File U.S. Individual Income
Tax Return
F 4952 No Investment Interest Expense Deduction
F 4972 No Tax on Lump-Sum Distributions
F 5329 Yes Additional Tax on Qualified Plans (including IRAs) and Other Tax-Favored Accounts
In scope for:
• Part I
Not in scope for:
• IRA minimum distributions not withdrawn when required
• Excess contributions to an IRA that are not withdrawn by the due date of
the return including extensions
• Parts II through IX
F 5405 Yes Repayment of the First-Time Homebuyer Credit Advanced certification
Not in scope for: required
• Taxpayers who claimed credit and their home is destroyed, condemned
or disposed of under threat of condemnation
• Taxpayers who claimed the first-time homebuyer credit may be required
to repay the credit in the year of sale. The repayment is limited to the
amount of gain on the sale. This situation is out of scope for VITA/TCE.
F 5498 Yes IRA Contribution Information Advanced certification
Not in scope for: required
• SEP or SIMPLE contributions
• Nondeductible contributions
F 5498-ESA Yes Coverdell ESA Contribution Information (Information only)
No tax reporting required
F 5498-QA Yes ABLE Account Contribution Information (Information only)
No tax reporting required
F 5498-SA Yes HSA, Archer MSA or Medicare Advantage MSA Information Advanced certification
Not in scope for: required
• Archer MSA
• Medicare Advantage MSA
F 5695 Yes Residential Energy Credit Advanced certification
Not in scope for: required
• Residential Energy Efficient Property Credit (Part I)

16
F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
F 6251 Yes Alternative Minimum Tax
In scope for:
• Interest from private activity bond on Line 2g
Out of scope if AMT applies
F 6252 No Installment Sales Income
F 6781 No Gains and Losses From Section 1256 Contracts and Straddles
F 7202 Yes Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals Advanced certification
required
F 3903 Yes Moving Expenses Military certification
In scope for: required
• Active duty military taxpayer only
F 8275 No Disclosure Statement
F 8275 R No Regulation Disclosure Statement
F 8283 Yes Noncash Charitable Contributions Advanced certification
In scope for: required
• Noncash contributions of $500 or less are reported on Schedule A and Military certification
are in scope (Advanced certficiation required) if >$500
• Noncash charitable contributions over $500 are in scope for Military
certification only
F 8332 Yes Release/Revocation of Release of Claim to Exemption for Child by Custodial
Parent
F 8379 Yes Injured Spouse Allocation
See F 8958 limitations (community property states)
F 8396 No Mortgage Interest Credit
F 8453 Yes U.S. Individual Income Tax Transmittal for an IRS e-file Return
F 8582 No Passive Activity Loss Limitations
F 8606 No Nondeductible IRAs
F 8615 Yes Tax for Certain Children Who Have Unearned Income (also known as Kiddie Tax) Advanced certification
In scope for: required
• Native Americans receiving per capita payments
• Alaska residents receiving permanent fund dividends
F 8621 No Information Return by A Shareholder of a Passive Foreign Investment
Company or Qualified Electing Fund
F 8801 No Credit for Prior Year Minimum Tax
F 8805 No Foreign Partner’s Information Statement of Section 1446 Withholding Tax
S 8812 Yes Additional Child Tax Credit
F 8814 Yes Parent’s Election to Report Child’s Interest and Dividends Advanced certification
In scope for: required
• Alaska residents receiving permanent fund dividends
F 8815 No Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued after
1989
F 8821 No Tax Information Authorization
F 8829 No Expenses for Business Use of Your Home
F 8833 No Treaty-Based Return Positive Disclosure Under Section 6114 or 7701 (b)
F 8834 No Plug-In Electric Vehicle Credit
F 8839 No Qualified Adoption Expenses
F 8848 No Consent to Extend the Time to Access the Branch Profits Tax Under
Regulations Section 1.884-2 (a) and (c)

17
F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
F 8853 Yes Archer MSAs and Long-Term Care Insurance Contracts
In scope for:
• Section C
F 8857 No Request for Innocent Spouse Relief
F 8862 Yes Information to Claim Earned Income Credit After Disallowance
F 8863 Yes Education Credits (American Opportunity and Lifetime Learning Credits)
F 8865 No Return of U.S. Persons With Respect to Certain Foreign Partnerships
F 8880 Yes Credit for Qualified Retirement Savings Contributions
F 8885 No Health Coverage Tax Credit
F 8886 No Reportable Transaction Disclosure Statement
F 8888 Yes Allocation of Refund (Including Savings Bond Purchases)
F 8889 Yes Health Savings Accounts (HSAs) Advanced certification
Not in scope for: required
• Excess contributions to an HSA that are not withdrawn in a timely fashion
• Qualified HSA funding distributions from an IRA
• Death of an HSA holder (when spouse is not the designated beneficiary)
• Additional Tax for Failure to Maintain HDHP Coverage
• Deemed distributions from an HSA due to prohibited transactions, such as
using an HSA as a security for a loan
• Archer Medical Saving Accounts (MSA)
• Medicare Advantage MSA
• Health Reimbursement Arrangement
• Part III, lines 18-21
F 8903 No Domestic Production Activities Deduction
F 8908 No Energy Efficient Home Credit
F 8910 No Alternate Motor Vehicle Credit
F 8911 No Alternative Fuel Vehicle Refueling Property Credit
F 8915-B No Qualified 2017 Disaster Retirement Plan Distributions and Repayments
F 8915-C No Qualified 2018 Disaster Retirement Plan Distributions and Repayments
F 8915-D No Qualified 2019 Disaster Retirement Plan Distributions and Repayments

18
F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
F 8915-F Yes Qualified Disaster Retirement Plan Distributions and Repayments Advanced certification
In scope for: required
• 2020 Coronavirus distributions and repayments
Not in scope for:
• Any other disaster-related distributions
F 8919 No Uncollected Social Security and Medicare Tax on Wages
F 8936 No Qualified Plug-in Electric Drive Motor Vehicle Credit
F 8938 No Statement of Specified Foreign Assets
F 8948 No Preparer Explanation for Not Filing Electronically
• Not applicable to volunteers
F 8949 Yes Sales and other Dispositions of Capital Assets Advanced
In scope for: certification required
• Sale of stocks, mutual fund shares and personal
residences
• Bond sales reported on a brokerage statement with capital gain or loss
only (no ordinary income/loss)
• Capital gains and losses reported on K-1
• Capital loss carryovers
• Inherited property of types listed above in this section and, if inherited in
2010, taxpayer provides the basis
• Wash sales if reported on brokerage or mutual fund statement
Not in scope for:
• Adjustment codes N, Q, X, R, S or C
• Reduced exclusion on sale of home
• Residence inherited or received as gift and not used as personal resi­
dence. If used as personal residence, taxpayer must provide basis.
• Taxpayers who have sold any assets other than stock, mutual funds, or a
personal residence
• Taxpayers who trade in options, futures, or other commodities, whether
or not they disposed of any during the year
• Determination of basis issues:
| Basis of any asset acquired other than by purchase or inheritance,

such as a gift or employee stock option, unless the taxpayer provides

the basis and holding period
| Basis of inherited property determined by a method other than the

FMV of the property on the date of the decedent’s death, unless the
taxpayer provides the basis and holding period
• Like-kind exchanges and worthless securities
• Form 1099-B, boxes with entries for any of the following: Bartering;
Profit or (loss) realized on closed contracts; Unrealized profit (loss) on
open contracts – prior year; Unrealized profit or (loss) on open contracts
– current year; or Aggregate profit (loss) on contracts; Proceeds from
collectibles; or FATCA filing requirement
• Reduced exclusion computations/determinations for the sale of a home
• Married homeowners who do not meet all requirements to claim the
maximum exclusion on the sale of a home
• Decreases to basis, including: Deductible casualty losses and gains a
taxpayer postponed from the sale of a previous home before May 7, 1997
• Depreciation during the time the home was used for business purposes
or as rental property
• Taxpayers with “nonqualified use” issues
• Sale of a home used for business purposes or as rental property

19
F(orm) or Line In
S(chedule) or Box Scope? Scope Limitations Certification Levels
Number Number Y or N
F 8958 Yes Allocation of Tax Amounts Between Certain Individuals in Community Prop­
erty States
In scope for:
• Taxpayers who are not certain they are in a common law marriage (rules
are complex and differ from state to state)
• Applicable returns as limited by Site or Program Coordinator
• Depending on your tax assistance program, community property tax laws
for married taxpayers who file a separate return from their spouse
F 8959 No Additional Medicare Tax
F 8960 No Net Investment Income Tax – Individuals, Estates and Trusts
F 8962 Yes Premium Tax Credit (PTC) Advanced certification
Not in scope for: required
• Self-employed health coverage deductions for taxpayers who are also
allowed a PTC
• Form 8962 Part IV, Allocation of Policy Amounts, and Part V, Alternative
Calculation for Year of Marriage
• Individuals eligible for the health coverage tax credit
• If there is a code FF on Form W-2, box 12 and the employee has a
Marketplace policy and is otherwise eligible for PTC
F 8995 Yes Qualified Business Income Deduction Simplified Computation Advanced certification
Not in scope for: required
• Certain rental real estate enterprises treated as a single trade or business
F 8995-A No Qualified Business Income Deduction
F 9000 Yes Request for Alternative Format or Language
F 9452 No Filing Assistance Program
F 9465 Yes Installment Agreement Request (See fee schedule)
F 13844 No Application For Reduced User Fee For Installment Agreement
F 14039 Yes Identity Theft Affidavit
F SS-8 No Determination of Worker Status for Purposes of Federal Employment Taxes
and Income Tax Withholding
FinCEN F No Report of Foreign Bank and Financial Accounts
114

Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, is in scope only for
volunteers with Foreign Student & Scholar certification.

20
 VITA/TCE Quality Site Requirements
All taxpayers using the services offered through the VITA/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 ten requirements are listed below.

QSR 1: Certification
QSR 2: Intake/Interview & Quality Review Process
QSR 3: Confirming Photo Identification and Taxpayer Identification Numbers (TIN)
QSR 4: Reference Materials
QSR 5: Volunteer Agreement
QSR 6: Timely Filing of Tax Returns
QSR 7: Civil Rights
QSR 8: Correct Site Identification Number (SIDN)
QSR 9: Correct Electronic Filing Identification Number (EFIN)
QSR 10: Security

For detailed guidance on the QSR, refer to Publication 5166, VITA/TCE Quality Site Requirements. For
guidance on applying the QSR to alternative filing methods, see Publication 5324, Fact Sheet for Partners
and Employees-Quality Site Requirements for Alternative Filing Models.

21
Notes

22
Legislative Extenders

EXT-i
EXT-ii
 This provision has been renewed through tax year 2025. Refer to this tab and the Temporary
Provisions lesson in Publication 4491 for additional information.

Discharge of Qualified Principal Residence

Indebtedness

Use the job aid on the following page to determine if the debt forgiveness on the main home is within scope.
Taxpayers may exclude from income certain debt forgiven or canceled debt on their principal residence. This
exclusion is applicable to the discharge of “qualified principal residence indebtedness.” If the canceled debt
qualifies for exclusion from gross income, the debtor may be required to reduce tax attributes (certain credits,
losses, and basis of assets) by the amount excluded.
If a property was taken by the lender (foreclosure) or given up by the borrower (abandonment), the lender
usually sends the taxpayer Form 1099-A, Acquisition or Abandonment of Secured Property. Form 1099-A will
have information needed to determine the gain or loss due to the foreclosure or abandonment.
• If the debt is canceled, the taxpayer will receive Form 1099-C, Cancellation of Debt. If foreclosure/
abandonment and debt cancellation occur in the same calendar year, the lender may issue only Form
1099-C, including the information that would be reported on Form 1099-A.
Volunteers may assist taxpayers who meet the following requirements:
• The home was never used in a business or as rental property
• The debt was not canceled because the taxpayer filed bankruptcy
• The taxpayer isn’t in bankruptcy when he/she comes to the site for assistance
• Form 1099-C doesn’t include an amount for interest
• The debt must be a mortgage used only to buy, build, or substantially improve the taxpayer’s primary
residence, i.e., this money was not used to pay off credit cards, medical/dental expenses, vacations, etc.
• The mortgage was secured by the taxpayer’s primary residence
• The mortgage was not more than $750,000 ($375,000 if Married Filing Separately). The maximum
amount a taxpayer can treat as qualified principal residence indebtedness for debt discharged after
2006 and before 2021 is $2 million ($1 million if married filing separately).

To exclude debt forgiven on principal residence, go to Income>Other Income>Cancellation of

Debt>Exclusions

Form 1099-C, Box 3 (Interest if included in Box 2, Amount of Debt Canceled) and Box 6, Code A
Out of Scope.

If a bankruptcy, Out of Scope.

If personally liable for the debt, sales price is the lesser of balance of principal outstanding
(Form 1099-A, Box 2) or fair market value of property (Form 1099-A, Box 4); if not personally liable on
the debt, sales price is the balance or principal outstanding.

EXT-1
Screening Sheet for Foreclosures/Abandonments and Cancellation of
Debt (Page 1)
Publication 4731-A
Screening Sheet for Foreclosures/Abandonments and
Cancellation of Debt
If the taxpayer is in bankruptcy, the tax return is Out of Scope for the VITA/TCE Programs.
Instructions: Use this Screening Sheet to assist taxpayers with Form(s) 1099-A and/or 1099-C with cancellation of debt
issues.
• Use Part I for taxpayers with only Form 1099-A for a foreclosure or abandonment of their principal residence.
• Use Part II for taxpayers with Form 1099-C, or both Forms 1099-A and 1099-C resulting from cancellation of debt on a
home mortgage loan.
• Use Publication 4731, Screening Sheet for Nonbusiness Credit Card Debt Cancellation, for taxpayers with Form
1099-C resulting from cancellation of credit card debt.

Part I – Home Mortgage Loan

1. Did the taxpayer receive Form 1099-A, Acquisition or Abandonment of Secured Property, from their home mortgage
lender?
Yes – Go to Step 2
No – Advise the taxpayer to get the documentation from the home mortgage lender.
2. Did the taxpayer ever use the home in a trade or business or as rental property?
Yes – Go to Step 6
No – Go to Step 3
3. Is Box 5 of Form 1099-A checked indicating a recourse loan in which the taxpayer is personally liable?
Yes – The sales price is the lesser of Box 2 (Balance of principal outstanding) or Box 4 (Fair market value of property)
on Form 1099-A.
No – The sales price is the amount in Box 2 (Balance of principal outstanding) on Form 1099-A. The taxpayer is not
personally liable (nonrecourse loan).
4. Ask the taxpayer for the cost or basis of the home.
Refer to Publication 523, Selling your Home, for further information, if needed.
5. Report the sale of the personal residence on Form 8949, Sales and Other Disposition of Capital Assets, and
Schedule D, Capital Gains and Losses.
If the disposition of the property results in a:
Gain – The taxpayer may qualify for the Section 121 exclusion ($250,000 or $500,000 if Married Filing Jointly) of the
gain on the sale of a principal residence, if all requirements are met.
Loss – The taxpayer cannot claim a loss on the sale or disposition of a principal residence. Use adjustment Code L
on Form 8949 to exclude this loss.
Refer to Publication 4012 (Legislative Extenders Tab), “Entering Forgiveness of Qualified Principal Residence
Indebtedness” for further information.
6. These tax issues are outside the scope of the volunteer program.
Refer the taxpayer to:
• IRS website for the most up-to-date information
• A professional tax preparer.
• The Taxpayer Advocate Service (TAS): 1-877-777-4778, TTY/TDD 1-800-829-4059. TAS may help if the problem
cannot be resolved through normal IRS channels.
Additional Resources:
• Publication 523, Selling your Home
• Publication 525, Taxable and Nontaxable Income
• Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments
• Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)
and Instructions
Publication 4731-A (Rev. 10-2022) Catalog Number 67470W Department of the Treasury Internal Revenue Service www.irs.gov

EXT-2
 Screening Sheet for Foreclosures/Abandonments and
Cancellation of Debt (Page 2)
Part II – Home Mortgage Loan
1. Did the taxpayer receive Form 1099-C, Cancellation of Debt, from their home mortgage lender and is the information
shown on the form correct?
Yes – Go to Step 2
No – Go to Step 6
Note: Answer “yes” if the taxpayer has received a Form 1099-A and Form 1099-C.
2. Did the taxpayer ever use the home in a trade or business or as rental property?
Yes – Go to Step 6
No – Go to Step 3
3. Does Box 3 of Form 1099-C show any interest or does box 6 show code A indicating bankruptcy?
Yes – Go to Step 6
No – Go to Step 4
Note: If Box 6 is not marked with code A but the taxpayer has subsequently filed bankruptcy, answer “yes.”

4. Ask the following questions to determine if the discharged debt is “qualified principal residence indebtedness:”
a. Was the mortgage taken out to buy, build, or substantially improve the taxpayer’s principal residence? (Note: A
principal residence is generally the home where the taxpayer lives most of the time. A taxpayer can have only one
principal residence at any one time.)
Yes – Go to Step 4b
No – Go to Step 6
b. Was the mortgage secured by the taxpayer’s principal residence?
Yes – Go to Step 4c
No – Go to Step 6
c. Was any part of the mortgage used to pay off credit cards, purchase a car, pay for tuition, pay for a vacation,
pay medical/dental expenses, or used for any other purpose other than to buy, build, or substantially improve the
principal residence?
Yes – Go to Step 6
No – Go to Step 4d
d. Was the mortgage amount more than $750,000 ($375,000 if Married Filing Separately)?
Yes – Go to Step 6
No – Go to Step 5
5. The discharged debt is “qualified principal residence indebtedness.”
The volunteer should complete the applicable lines on Form 982, and file it with the taxpayer’s return. If the residence
was disposed of, the taxpayer also may be required to report the disposition (sale) on Form 8949 and Schedule D.

6. These tax issues are outside the scope of the volunteer program. The taxpayer may qualify to exclude all or some of
the discharged debt. However, the rules involved in the mortgage debt relief exclusions are complex.
Refer the taxpayer to:
• IRS website for the most up-to-date information
• A professional tax preparer.
• The Taxpayer Advocate Service (TAS): 1-877-777-4778, TTY/TDD 1-800-829-4059. TAS may help if the problem
cannot be resolved through normal IRS channels.
Additional Resources:
• Publication 523, Selling your Home
• Publication 525, Taxable and Nontaxable Income
• Publication 4681, Canceled Debts, Foreclosures, Repossessions,and Abandonments
• Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)
and Instructions

EXT-3
Entering Forgiveness of Qualified Principal Residence Indebtedness

Income>Other Income>Cancellation of Debt>Exclusions

Use the job aid on the preceding

pages to determine if the debt
forgiveness on the main home is
within scope.
Form 982, Reduction of Tax
Attributes Due to Discharge of
Indebtedness, must be filed with
the taxpayer’s return to report the
excluded amount of discharged
indebtedness and the reduction of
certain tax attributes:
• Indicate whether the Form
1099-C was issued to the
taxpayer or spouse
• Check the box for Discharge
of qualified principal residence
indebtedness
• Enter the amount of primary
mortgage debt cancelled (Form
1099-C, Box 2)

EXT-4
 Entering Forgiveness of Qualified Principal
Residence Indebtedness (continued)

If the taxpayer had a portion of the

mortgage debt canceled but kept the
home (loan modification or mortgage
workout):
• Enter the amount of debt canceled
in Part II, Reduction of Tax
Attributes, on the line for “Basis of
your principal residence” (line 10b).

Foreclosure and Abandonment Key Highlights

If the taxpayer disposed of the home due to foreclosure or abandonment, and the lender canceled the
remaining mortgage debt:
• No entry is made in Part II, Reduction of Tax Attributes
• Report the gain or loss from Form 1099-A in the Schedule D, Capital Gains section
| The basis is the taxpayer’s adjusted basis in the home
| The sale price (amount realized) is based on whether the taxpayer is personally liable (recourse
loan) or not personally liable (nonrecourse loan) for the debt:
■ If the taxpayer is personally liable, the sale price is the lesser of the balance of the principal
mortgage debt outstanding or the fair market value
■ If the taxpayer isn’t personally liable, then the sale price is the full amount of the outstanding debt,
as reflected on Form 1099-A
■ For both recourse and nonrecourse loans, add any proceeds the taxpayer received from the
foreclosure sale to the amount realized.
| If the taxpayer ends up with a gain on the sale, some or all of the gain can be excluded under the
rules for sale of main home, if the taxpayer qualifies
■ A loss on the main home can’t be deducted

EXT-5
 Residential Energy Credits
Federal Section>Deductions>Credits>Residential Energy Credit; or Keyword “5695”

This provision has been extended through December 31, 2032.

Form 5695, Residential Energy Credit, is used to calculate and claim the residential energy credits.

Part I, Residential Clean Energy Credit, is available for taxpayers who purchased qualified residential
alternative energy equipment, such as solar hot water heaters, stoves that burn biomass fuel, geothermal
heat pumps and wind turbines. This part of the form is Out of Scope. Taxpayers that have these expenses
should be referred to a professional tax preparer.

Part II, Energy Efficient Home Improvement Credit - Key Points:

• A total combined credit limit of $500 ($200 limit for windows) for all tax years after 2005.
• The maximum credit for residential energy property costs is $50 for any advanced main air circulating
fan; $150 for any qualified natural gas, propane, or oil furnace, or hot water boiler; and $300 for any
item of energy-efficient building property. Any of the following that meet the required efficiency rating
may qualify as energy-efficient building property. See the Instructions for Form 5695 for details:
| Electric heat pump water heater; electric heat pump; central air conditioner; natural gas, propane, or
oil water heater
• The credit applies to:
| Qualified energy efficiency improvements such as adding insulation, energy-efficient exterior win­
dows and doors, and qualifying metal or asphalt roofs. (doesn’t include labor costs for onsite prepa­
ration, assembly or installation)
| Qualified residential energy property improvements such as energy-efficient heating and air condi­
tioning systems. For a complete list of items see Form 5695. (includes labor costs for onsite prepara­
tion, assembly, or original installation)
• The improvements must be made to the taxpayer’s main home located in the United States (must be
existing home).
• Qualifying improvements must be placed into service by the taxpayer during the tax year.
• Expenditures which are made from subsidized energy financing can’t be used to figure the credit.
• The credit is taken on Part II, Form 5695. See Form 5695 and Instructions for more information.

Not all ENERGY STAR products qualify for a tax credit. Since 2016, exterior doors, exterior windows,
and skylights are only eligible for the energy efficient home improvement credit if they meet or exceed
the specific requirements of the version 6.0 Energy Star program. For detailed information about
qualifying improvements, visit the U.S. Department of Energy’s EnergyStar website.
Manufacturers must certify that their products meet new standards and they must provide a written
statement to the taxpayer such as with the product packaging or in a printable format on the manufacturer’s
website. Taxpayers should keep a copy of the manufacturer’s certification statement and receipts with their
other important tax records.

Recent legislation extended, increased and modified this credit. The increase and modifications apply
to property placed in service after December 31, 2022. Those changes will be reflected in the 2023
version of this publication.

EXT-6
Tab A: Who Must File

A-i
A-ii
 Chart A – For Most People Who Must File

If you may be claimed as a dependent by another taxpayer, you must file as a dependent whether you
are being claimed or not. See Chart B.

If your filing status is... AND at the end of 2022 you were...* THEN file a return if your
gross income was at least...**
Single under 65 $12,950
65 or older $14,700
Married filing jointly*** under 65 (both spouses) $25,900
65 or older (one spouse) $27,300
65 or older (both spouses) $28,700
Married filing separately
any age $5
(see the Instructions for Form 1040)
Head of household under 65 $19,400
(see the Instructions for Form 1040)
65 or older $21,150
Qualifying Surviving Spouse under 65 $25,900
(see the Instructions for Form 1040) 65 or older $27,300

* If you were born on January 1, 1958 you are considered to be age 65 at the end of 2022. (If your spouse died in 2022 or
if you are preparing a return for someone who died in 2022, see Publication 501).
** Gross income means all income you received in the form of money, goods, property, and services that isn’t exempt from tax,
including any income from sources outside the United States or from the sale of your main home (even if you can exclude
part or all of it).

• Do not include any social security benefits unless

| you are married filing a separate return and you lived with your spouse at any time in 2022 or
| one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if
married filing jointly).

If either situation applies, see the Form 1040 Instructions to figure the taxable part of social security benefits you
must include in gross income.
• Gross income includes gains, but not losses, reported on Form 8949 or Schedule D.
• Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9.
But, in figuring gross income, don’t reduce your income by any losses, including any loss on Schedule C,
line 7, or Schedule F, line 9.
*** If you didn’t live with your spouse at the end of 2022 (or on the date your spouse died) and your gross income was at
least $5, you must file a return regardless of your age.

Individuals who do not have a filing requirement based on this chart should also check Chart C, Other
Situations When You Must File, and Chart D, Who Should File. Individuals with earned income but who do
not have a filing requirement may be eligible for the Earned Income Credit.

A-1
 Chart B – For Children and Other Dependents
If your parent (or any other taxpayer) may claim you as a dependent, use this chart to see if you must
file a return.
In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain distributions.
It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and
distributions of unearned income from a trust. Earned income includes salaries, wages, tips, professional fees,
and taxable scholarship and fellowship grants. Gross income is the total of your unearned and earned income.
Single Dependents
Either 65 or over or blind You must file a return if any of the following apply.
1. Your unearned income was over $2,900 ($4,650 if 65 or older and blind).
2. Your earned income was over $14,700 ($16,450 if 65 or older and blind).
3. Your gross income was more than the larger of —
a. $2,900 ($4,650 if 65 or older and blind) or
b. our earned income (up to $12,550 plus $2,150 ($3,900 if 65 or older and blind).
Under 65 and not blind You must file a return if any of the following apply.
1. Your unearned income was over $1,150.
2. Your earned income was over $12,950.
3. Your gross income was more than the larger of —
a. $1,150, or
b. Your earned income (up to $12,550 plus $400).
Married Dependents
Either age 65 or older or blind You must file a return if any of the following apply.
1. Your unearned income was over $2,550 ($3,950 if 65 or older and blind).
2. Your earned income was over $14,350 ($15,750 if 65 or older and blind).
3. Your gross income was at least $5 and your spouse files a separate return and
itemizes deductions.
4. Your gross income was more than the larger of —
a. $2,550 ($3,950 if 65 or older and blind), or
b. Your earned income (up to $12,550 plus $1,800 ($3,200 if 65 or older and blind).
Under age 65 and not blind You must file a return if any of the following apply.
1. Your unearned income was over $1,150.
2. Your earned income was over $12,950.
3. Your gross income was at least $5 and your spouse files a separate return and
itemizes deductions.
4. Your gross income was more than the larger of —
a. $1,150, or
b. Your earned income (up to $12,550 plus $400).

Form 8615, Tax for Certain Children who have Unearned Income (Kiddie Tax)
Children under age 18 and certain older children who are required to file a tax return and have unearned
income over $2,300 must file Form 8615. For this purpose, “unearned income” includes all taxable income
other than earned income, such as taxable interest, ordinary dividends, capital gains, rents, royalties, etc. It also
includes taxable social security benefits, pension and annuity income, taxable scholarship and fellowship grants
not reported on Form W-2, unemployment compensation, alimony, and income received as the beneficiary of a
trust. Form 8615 is in scope for Native Americans receiving per capita payments and Alaska residents receiving
permanent fund dividends. For all other purposes, Form 8615 remains Out of Scope.To determine if Form 8615
must be filed, see page H-3.

Taxable scholarships and fellowship grants are considered as earned income for the purpose of
determining if a dependent must file a tax return and for calculating the standard deduction for
dependents.Taxable scholarships and fellowship grants not reported on Form W-2 are considered to
be unearned income for the purpose of calculating kiddie tax.

A-2
 Chart C – Other Situations When You Must File
You must file a return if any of the conditions below apply for 2022.
1. You owe any special taxes, including any of the following.
a. Alternative minimum tax (Out of Scope).
b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other
tax-favored account. But if you are filing a return only because you owe this tax, you can file
Form
5329 by itself.
c. Household employment taxes. But if you are filing a return only because you owe this tax, you
can file Schedule H by itself (Out of Scope).
d. Social security and Medicare tax on tips you did not report to your employer or on wages you
received from an employer who did not withhold these taxes.
e. Recapture of first-time homebuyer credit. See Instructions for Form 1040, Schedule 2.
f. Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you
reported to your employer or on group-term life insurance and additional taxes on health
savings
accounts. See the Instructions for Form 1040.
g. Recapture taxes. See the Instructions for Form 1040 (Out of Scope).
2. You (or your spouse, if filing jointly) received HSA distributions (in scope), Archer MSA distributions
(Out of Scope), or Medicare Advantage MSA distributions (Out of Scope).
3. You had net earnings from self-employment of at least $400. Net earnings are Sch C profit x 92.35%.
There is no self-employment tax on Sch C profit of less than $433.
4. You had wages of $108.28 or more from a church or qualified church-controlled organization that is
exempt from employer social security and Medicare taxes (Out of Scope).
5. Advance payments of the premium tax credit were made for you, your spouse, or a dependent
who enrolled in coverage through the Marketplace. You or whoever enrolled you should have
received Form(s) 1095-A showing the amount of the advance payments.
6. Advance payments of the health coverage tax credit were made for you, your spouse, or a
dependent. You or whoever enrolled you should have received Form(s) 1099-H showing the amount
of the advance payments (Out of Scope).
7. You are required to include amounts in income under section 965 or you have a net tax liability under
section 965 that you are paying in installments under section 965(h) or deferred by making an
election under 965(i) (Out of Scope).

A-3
 Chart D – Who Should File

Even if a taxpayer is not required to file a federal income tax return, they should file if any of the following
situations below apply.

1. You had income tax withheld from your pay, pension, social security or other income.
2. You made estimated tax payments for the year or had any of your overpayment for last year’s
estimated tax applied to this year’s taxes.
3. You qualify for the earned income credit. See Publication 596, Earned Income Credit (EIC), for more
information.
4. You qualify for the additional child tax credit. See the Instructions for Schedule 8812.
5. You qualify for a refundable American Opportunity Credit.
6. You qualify for the Premium Tax Credit.
7. You receive a 1099-B and the gross proceeds plus other income exceeds the filing limits in Chart A.
8. You receive Form 1099-S, Proceeds From Real Estate Transactions.
9. You are required to file a state return.
10. You want to file a $0 AGI return (such as to prevent tax identity theft, to claim a state credit, or for
other assistance). Returns with zero AGI, no refund, and no balance due need to be paper filed. In
certain situations, taxpayers may e-file these returns. To e-file, enter $1 as other income. Go to In
come>Less Common Income>Other Income Not Reported Elsewhere and describe as
“IN ORDER TO E-FILE.”.
11. You qualify for the refundable credit for prior year minimum tax. See Form 8801, Credit for Prior Year
Minimum Tax — Individuals, Estates, and Trusts (Out of Scope).
12. You qualify for the Credit for Federal Tax Paid on Fuels, Form 4136 (Out of Scope).

A-4
Tab B: Starting a Return and Filing Status

B-i
B-ii
 Form 1040 Job Aid
Please reference the indicated Tabs for filling out the corresponding sections on the 1040 form.

1040 U.S. Individual Income Tax Return 2022

Department of the Treasury—Internal Revenue Service
Form

OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.

Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH)
Qualifying surviving
Check only spouse (QSS)
one box. If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child’s name if the qualifying
person is a child but not your dependent:
Your first name and middle initial Last name Your social security number

DRAFT AS OF
If joint return, spouse’s first name and middle initial Last name

Home address (number and street). If you have a P.O. box, see instructions. Apt. no.
Spouse’s social security number

Presidential Election Campaign

Check here if you, or your
Tab B

September 1, 2022
spouse if filing jointly, want $3
City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code
to go to this fund. Checking a
box below will not change
Foreign country name Foreign province/state/county Foreign postal code your tax or refund.
You Spouse

Digital At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell,

DO NOT FILE
Assets exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) Yes No
Standard Someone can claim: You as a dependent Your spouse as a dependent Tab F
Deduction Spouse itemizes on a separate return or you were a dual-status alien

Age/Blindness You: Were born before January 2, 1958 Are blind Spouse: Was born before January 2, 1958 Is blind
Dependents (see instructions): (2) Social security (3) Relationship (4) Check the box if qualifies for (see instructions):
(1) First name Last name number to you Child tax credit Credit for other dependents
If more
than four
dependents, Tab C
see instructions
and check
here . .
1a Total amount from Form(s) W-2, box 1 (see instructions) . . . . . . . . . . . . . 1a
Income
b Household employee wages not reported on Form(s) W-2 . . . . . . . . . . . . . 1b
Attach Form(s) c Tip income not reported on line 1a (see instructions) . . . . . . . . . . . . . . 1c
W-2 here. Also
attach Forms d Medicaid waiver payments not reported on Form(s) W-2 (see instructions) . . . . . . . . 1d
W-2G and e Taxable dependent care benefits from Form 2441, line 26 . . . . . . . . . . . . 1e
1099-R if tax
was withheld. f Employer-provided adoption benefits from Form 8839, line 29 . . . . . . . . . . . 1f
If you did not g Wages from Form 8919, line 6 . . . . . . . . . . . . . . . . . . . . . 1g
get a Form h Other earned income (see instructions) . . . . . . . . . . . . . . . . . . 1h
W-2, see
instructions.
i Nontaxable combat pay election (see instructions) . . . . . . . 1i
z Add lines 1a through 1h . . . . . . . . . . . . . . . . . . . . . . 1z Tab D
Attach Sch. B 2a Tax-exempt interest . . . 2a b Taxable interest . . . . . 2b
if required. 3a Qualified dividends . . . 3a b Ordinary dividends . . . . . 3b
4a IRA distributions . . . . 4a b Taxable amount . . . . . . 4b
Standard 5a Pensions and annuities . . 5a b Taxable amount . . . . . . 5b
Deduction for—
6a Social security benefits . . 6a b Taxable amount . . . . . . 6b
• Single or
Married filing c If you elect to use the lump-sum election method, check here (see instructions) . . . . .
separately,
$12,950 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . . 7
• Married filing 8 Other income from Schedule 1, line 10 . . . . . . . . . . . . . . . . . . 8
jointly or
Qualifying 9 Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . . . . . . . . . . 9
surviving spouse,
10 Adjustments to income from Schedule 1, line 26 . . . . . . . . . . . . . . . 10
$25,900
• Head of 11 Subtract line 10 from line 9. This is your adjusted gross income . . . . . . . . . . 11
Tab E
household,
$19,400 12 Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . . 12
• If you checked 13 Qualified business income deduction from Form 8995 or Form 8995-A . . . . . . . . . 13
any box under
Standard 14 Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . 14 Tab F
Deduction, 15 Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income . . . . .
see instructions.
15

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2022)

B-1
 Form 1040 Job Aid (continued)
Please reference the indicated Tabs for filling out the corresponding sections on the 1040 form.

Form 1040 (2022) Page 2

Tax and 16 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 . . 16
Credits 17 Amount from Schedule 2, line 3 . . . . . . . . . . . . . . . . . . . . 17 Tab H
18 Add lines 16 and 17 . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Child tax credit or credit for other dependents from Schedule 8812 . . . . . . . . . . 19
20
21
Amount from Schedule 3, line 8 . . . . . . . . . . .
Add lines 19 and 20 . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
20
21
Tab G

DRAFT AS OF
22 Subtract line 21 from line 18. If zero or less, enter -0- . . . . . . . . . . . . . . 22
23 Other taxes, including self-employment tax, from Schedule 2, line 21 . . . . . . . . . 23
24 Add lines 22 and 23. This is your total tax . . . . . . . . . . . . . . . . . 24
Payments 25 Federal income tax withheld from:
a Form(s) W-2 . . . . . . . . . . . . . . . . . . 25a
b Form(s) 1099 . . . . . . . . . . . . . . . . . . 25b
Tab H

September 1, 2022
c Other forms (see instructions) . . . . . . . . . . . . . 25c
d Add lines 25a through 25c . . . . . . . . . . . . . . . . . . . . . . 25d
26 2022 estimated tax payments and amount applied from 2021 return . . . . . . . . . . 26
If you have a
qualifying child, 27 Earned income credit (EIC) . . . . . . . . . . . . . . 27
attach Sch. EIC.
28 Additional child tax credit from Schedule 8812 . . . . . . . . 28

DO NOT FILE
29 American opportunity credit from Form 8863, line 8 . . . . . . . 29
30 Reserved for future use . . . . . . . . . . . . . . . 30
Tabs I,
31 Amount from Schedule 3, line 15 . . . . . . . . . . . . 31
32 Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits . . 32
G, J, H
33 Add lines 25d, 26, and 32. These are your total payments . . . . . . . . . . . . 33
34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid . . 34
Refund
35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here . . . . 35a
Direct deposit? b Routing number c Type: Checking Savings
See instructions.
d Account number
36 Amount of line 34 you want applied to your 2023 estimated tax . . . 36
Amount 37 Subtract line 33 from line 24. This is the amount you owe.
You Owe For details on how to pay, go to www.irs.gov/Payments or see instructions . . . . . . . . 37
38 Estimated tax penalty (see instructions) . . . . . . . . . . 38
Third Party Do you want to allow another person to discuss this return with the IRS? See
Designee instructions . . . . . . . . . . . . . . . . . . . . . Yes. Complete below. No Tabs
Designee’s
name
Phone
no.
Personal identification
number (PIN)
K, P
Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and
belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Here Your signature Date Your occupation If the IRS sent you an Identity
Protection PIN, enter it here
Joint return? (see inst.)
See instructions. Spouse’s signature. If a joint return, both must sign. Date Spouse’s occupation If the IRS sent your spouse an
Keep a copy for Identity Protection PIN, enter it here
your records. (see inst.)

Phone no. Email address

Preparer’s name Preparer’s signature Date PTIN Check if:
Paid Self-employed
Preparer
Firm’s name Phone no.
Use Only
Firm’s address Firm’s EIN
Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2022)

B-2
 Form 1040 Schedules

Below is a general guide to what schedule(s) you will need to file, based on your circumstances.

If You... Then Use... Refer to:

• Have additional income, such as unemployment Schedule 1, Additional Income and Tabs D, E, and F
compensation, prize or award money, or gambling Adjustments to Income
winnings.
• Have any deductions to claim, such as student
loan interest deduction, self-employment tax, or
educator expenses.

• Need to make an excess advance premium tax Schedule 2, Additional Taxes Tab H
credit repayment.
• Owe other taxes, such as self-employment tax,
household employment taxes, additional tax
on IRAs or other qualified retirement plans and
tax-favored accounts or need to repay the first-
time homebuyer credit.
• Can claim a nonrefundable credit other than the Schedule 3, Additional Credits and Payments Tabs G, H, J
child tax credit or the credit for other dependents,
such as the foreign tax credit, education credits,
credit for child and dependent care expenses or
retirement savings contributions credit.
• Can claim a refundable credit other than the
earned income credit, American opportunity
credit, or additional child tax credit. Have other
payments, such as an amount paid with a request
for an extension to file or excess Social Security
tax withheld.

B-3
 Form 13614-C Job Aid for Volunteers (Page 1)

Form 13614-C Department of the Treasury - Internal Revenue Service OMB Number
(October 2022) Intake/Interview & Quality Review Sheet 1545-1964

You will need: • Please complete pages 1-4 of this form.

• Tax Information such as Forms W-2, 1099, 1098, 1095. • You are responsible for the information on your return. Please provide
• Social security cards or ITIN letters for all persons on your tax return. complete and accurate information.
• Picture ID (such as valid driver's license) for you and your spouse. • If you have questions, please ask the IRS-certified volunteer preparer.
Volunteers are trained to provide high quality service and uphold the highest ethical standards.
To report unethical behavior to the IRS, email us at wi.voltax@irs.gov
Part I – Your Personal Information (If you are filing a joint return, enter your names in the same order as last year’s return)
1. Your first name M.I. Last name Best contact number Are you a U.S. citizen?
Yes No
2. Your spouse’s first name M.I. Last name Best contact number Is your spouse a U.S. citizen?
Yes No
3. Mailing address Apt # City State ZIP code

4. Your Date of Birth 5. Your job title 6. Last year, were you: a. Full-time student Yes No
b. Totally and permanently disabled Yes No c. Legally blind Yes No
7. Your spouse’s Date of Birth 8. Your spouse’s job title 9. Last year, was your spouse: a. Full-time student Yes No
b. Totally and permanently disabled
Yes No c. Legally blind Yes No
10. Can anyone claim you or your spouse as a dependent? Yes No Unsure
11. Have you, your spouse, or dependents been a victim of tax related identity theft or been issued an Identity Protection PIN? Yes No
12. Provide an email address (optional) (this email address will not be used for contacts from the Internal Revenue Service)
Part II – Marital Status and Household Information
1. As of December 31, 2022, what Never Married (This includes registered domestic partnerships, civil unions, or other formal relationships under state law)
was your marital status? Married a. If Yes, Did you get married in 2022? Yes No
b. Did you live with your spouse during any part of the last six months of 2022? Yes No
Divorced Date of final decree
Legally Separated Date of separate maintenance decree
Widowed Year of spouse’s death
2. List the names below of:
• everyone who lived with you last year (other than your spouse) If additional space is needed check here and list on page 3
• anyone you supported but did not live with you last year To be completed by a Certified Volunteer Preparer
Name (first, last) Do not enter your Date of Birth Relationship Number of US Resident Single or Full-time Totally and Is this Did this Did this Did the Did the
name or spouse’s name below (mm/dd/yy) to you (for months Citizen of US, Married as Student Permanently person a person person taxpayer(s) taxpayer(s)
example: lived in (yes/no) Canada, of 12/31/22 last year Disabled qualifying provide have less provide more pay more than
son, your home or Mexico (S/M) (yes/no) (yes/no) child/relative more than than $4,400 than 50% of half the cost of
daughter, last year last year of any other 50% of his/ of income? support for maintaining a
parent, (yes/no) person? her own (yes,no,n/a) this person? home for this
none, etc) (yes/no) support? (yes/no/n/a) person?
(a) (b) (c) (d) (e) (f) (g) (h) (i) (yes,no,n/a) (yes/no)

Catalog Number 52121E www.irs.gov Form 13614-C (Rev. 10-2022)

View photo ID’s Name as shown If not a US citizen, Taxpayer’s Refer to Tab R for
for each taxpayer and on Social Security use Tab L, Resident or current address where definition of Legally
spouse (if filing a joint records (see Tab B Nonresident Alien Deci­ IRS should mail refund Blind, Permanently
return). Determining the Last sion Tree to determine and /or other and Totally Disabled
Name of a Taxpayer.) if return is within scope. correspondence. and a full time Student.

Use Tab C to Refer to Tab P If taxpayer’s marital Taxpayer must include everyone who lived
verify taxpayer and if taxpayer is a victim status changed in 2022 with the taxpayer and anyone the taxpayer
spouse’s of identity theft or (Married or Divorced), verify supported who lived elsewhere. Always confirm
dependency status. applied for and how it may affect ACA and if this information during the interview process,
received an IP PIN. return is within scope. especially if the taxpayer did not list anyone.

Important Reminder: The Intake/Interview

Important Reminder: Review Important Reminder: Do not
process may be considered incomplete if:
all information in Part II before using refer taxpayers to the Voltax email
• Questions are left unanswered in parts I thru V
Tabs B and C to determine address for IRS help or refund
• “Unsure” answers are not addressed with the
Dependency Exemptions and information.
taxpayer and then annotated “Yes” or No”
Filing Status. Refer to the back cover of Pub 4012
• Applicable Certified Volunteer Preparer
for appropriate IRS referrals.
shaded area is not completed.

B-4
 Form 13614-C Job Aid for Volunteers (Page 1 Continued)

Form 13614-C Department of the Treasury - Internal Revenue Service OMB Number
(October 2022) Intake/Interview & Quality Review Sheet 1545-1964

You will need: • Please complete pages 1-4 of this form.

• Tax Information such as Forms W-2, 1099, 1098, 1095. • You are responsible for the information on your return. Please provide
• Social security cards or ITIN letters for all persons on your tax return. complete and accurate information.
• Picture ID (such as valid driver's license) for you and your spouse. • If you have questions, please ask the IRS-certified volunteer preparer.
Volunteers are trained to provide high quality service and uphold the highest ethical standards.
To report unethical behavior to the IRS, email us at wi.voltax@irs.gov
Part I – Your Personal Information (If you are filing a joint return, enter your names in the same order as last year’s return)
1. Your first name M.I. Last name Best contact number Are you a U.S. citizen?
Yes No
2. Your spouse’s first name M.I. Last name Best contact number Is your spouse a U.S. citizen?
Yes No
3. Mailing address Apt # City State ZIP code

4. Your Date of Birth 5. Your job title 6. Last year, were you: a. Full-time student Yes No
b. Totally and permanently disabled Yes No c. Legally blind Yes No
7. Your spouse’s Date of Birth 8. Your spouse’s job title 9. Last year, was your spouse: a. Full-time student Yes No
b. Totally and permanently disabled
Yes No c. Legally blind Yes No
10. Can anyone claim you or your spouse as a dependent? Yes No Unsure
11. Have you, your spouse, or dependents been a victim of tax related identity theft or been issued an Identity Protection PIN? Yes No
12. Provide an email address (optional) (this email address will not be used for contacts from the Internal Revenue Service)
Part II – Marital Status and Household Information
1. As of December 31, 2022, what Never Married (This includes registered domestic partnerships, civil unions, or other formal relationships under state law)
was your marital status? Married a. If Yes, Did you get married in 2022? Yes No
b. Did you live with your spouse during any part of the last six months of 2022? Yes No
Divorced Date of final decree
Legally Separated Date of separate maintenance decree
Widowed Year of spouse’s death
2. List the names below of:
If additional space is needed check here and list on page 3
• everyone who lived with you last year (other than your spouse)
• anyone you supported but did not live with you last year To be completed by a Certified Volunteer Preparer
Name (first, last) Do not enter your Date of Birth Relationship Number of US Resident Single or Full-time Totally and Is this Did this Did this Did the Did the
name or spouse’s name below (mm/dd/yy) to you (for months Citizen of US, Married as Student Permanently person a person person taxpayer(s) taxpayer(s)
example: lived in (yes/no) Canada, of 12/31/22 last year Disabled qualifying provide have less provide more pay more than
son, your home or Mexico (S/M) (yes/no) (yes/no) child/relative more than than $4,400 than 50% of half the cost of
daughter, last year last year of any other 50% of his/ of income? support for maintaining a
parent, (yes/no) person? her own (yes,no,n/a) this person? home for this
none, etc) (yes/no) support? (yes/no/n/a) person?
(a) (b) (c) (d) (e) (f) (g) (h) (i) (yes,no,n/a) (yes/no)

Catalog Number 52121E www.irs.gov Form 13614-C (Rev. 10-2022)

Verify birth Verbally confirm If not a US citizen, The Certified See Page 3 to
date for each person the number of months use Tab L, Resident Volunteer Preparer verify if taxpayer listed
included on the tax each person listed or Nonresident Alien will complete these additional names.
return. Note: Incorrect lived in the home. Decision Tree to questions for each
birth dates may cause Note: Consider any determine if return is listed person during
efile rejection. temporary absences. within scope. the interview.

Important Reminder: The Intake/Interview

Important Reminder: Review Important Reminder: Do not
process may be considered incomplete if:
all information in Part II before using refer taxpayers to the Voltax email
• Questions are left unanswered in parts I thru V
Tabs B and C to determine address for IRS help or refund
• “Unsure” answers are not addressed with the
Dependency Exemptions and information.
taxpayer and then annotated “Yes” or No”
Filing Status. Refer to the back cover of Pub 4012
• Applicable Certified Volunteer Preparer
for appropriate IRS referrals.
shaded area is not completed.

B-5
 Form 13614-C Job Aid for Volunteers Page 2
Important Reminder: During the interview, question the taxpayer about any items marked “Unsure” and mark them “Yes” or “No”.
Modify any taxpayer answers to correctly reflect all information obtained during the interview.
Page 2
Check appropriate box for each question in each section

Yes No Unsure Part III – Income – Last Year, Did You (or Your Spouse) Receive
1. (B) Wages or Salary? (Form W-2) If yes, how many jobs did you have last year?
2. (A) Tip Income?
3. (B) Scholarships? (Forms W-2, 1098-T)
4. (B) Interest/Dividends from: checking/savings accounts, bonds, CDs, brokerage? (Forms 1099-INT, 1099-DIV)
5. (B) Refund of state/local income taxes? (Form 1099-G)
6. (B) Alimony income or separate maintenance payments?
7. (A) Self-Employment income? (Forms 1099-MISC, 1099-NEC, 1099-K, cash, digital assets, or other property or services)
8. (A) Cash/check/digital assets, or other property or services for any work performed not reported on Forms W-2 or 1099?
9. (A) Income (or loss) from the sale or exchange of stocks, bonds, digital assets or real estate? (including your home) (Forms 1099-S, 1099-B)
10. (B) Disability income? (such as payments from insurance, or workers compensation) (Forms 1099-R, W-2)
11. (A) Retirement income or payments from pensions, annuities, and or IRA? (Form 1099-R)
12. (B) Unemployment Compensation? (Form 1099-G)
13. (B) Social Security or Railroad Retirement Benefits? (Forms SSA-1099, RRB-1099)
14. (M) Income (or loss) from rental property?
15. (B) Other income? (gambling, lottery, prizes, awards, jury duty, digital assets, Sch K-1, royalties, foreign income, etc.)
Yes No Unsure Part IV – Expenses – Last Year, Did You (or Your Spouse) Pay
1. (B) Alimony or separate maintenance payments? If yes, do you have the recipient’s SSN? Yes No
2. Contributions or repayments to a retirement account? IRA (A) Roth IRA (B) 401K (B) Other
3. (B) College or post secondary educational expenses for yourself, spouse or dependents? (Form 1098-T)
4. Any of the following? (A) Medical & Dental (including insurance premiums) (A) Mortgage Interest (Form 1098)
(A) Taxes (State, Real Estate, Personal Property, Sales) (B) Charitable Contributions
5. (B) Child or dependent care expenses such as daycare?
6. (B) For supplies used as an eligible educator such as a teacher, teacher’s aide, counselor, etc.?
7. (A) Expenses related to self-employment income or any other income you received?
8. (B) Student loan interest? (Form 1098-E)
Yes No Unsure Part V – Life Events – Last Year, Did You (or Your Spouse)
1. (A) Have a Health Savings Account? (Forms 5498-SA, 1099-SA, W-2 with code W in box 12)
2. (A) Have credit card, student loan or mortgage debt cancelled/forgiven by a lender or have a home foreclosure? (Forms 1099-C, 1099-A)
3. (A) Adopt a child?
4. (B) Have Earned Income Credit, Child Tax Credit or American Opportunity Credit disallowed in a prior year? If yes, for which tax year?
5. (A) Purchase and install energy-efficient home items? (such as windows, furnace, insulation, etc.)
6. (A) Receive the First Time Homebuyers Credit in 2008?
7. (B) Make estimated tax payments or apply last year’s refund to this year’s tax? If so how much?
8. (A) File a federal return last year containing a “capital loss carryover” on Form 1040 Schedule D?
9. (A) Have health coverage through the Marketplace (Exchange)? [Provide Form 1095-A]
Catalog Number 52121E www.irs.gov Form 13614-C (Rev. 10-2022)

Certification indicators B, A and M should only If yes, verify tips See Tab D Form See Tab D for
be used to assign returns to preparers. were reported to em­ W­2 Instructions. information on how to
Final certification level should be made by using the ployer. If not, complete enter taxable
Scope of Service Chart after completing interview. Form 4137 (Advanced). scholarships.

Verify the return If yes, determine if Not all of these are See Tab E for Verify eligibility for
is within the scope of taxable. reported on Schedule 1, definition of alimony. Saver’s Credit.
VITA/TCE Programs. Line 8. See Pub 17.

See Tab J and Verify if taxpayer If yes, ask Student Loan See Tabs I, G or J
compare credits and can itemize. taxpayer for child care Interest adjustment. for impact of a “yes”
adjustments. provider’s TIN. See Tab E. answer on any credits
for this year.
Taxpayer may Ask taxpayer for Taxpayer must
have a requirement to a copy of last year’s provide Form 1095­A if
repay their credit. return to locate receiving insurance
necessary information. through the Marketplace.

B-6
 Form 13614-C Job Aid for Volunteers Page 3

Page 3
Additional Information and Questions Related to the Preparation of Your Return
1. Would you like to receive written communications from the IRS in a language other than English? Yes No If yes, which language?
2. Presidential Election Campaign Fund (If you check a box, your tax or refund will not change)
Check here if you, or your spouse if filing jointly, want $3 to go to this fund You Spouse
3. If you are due a refund, would you like: a. Direct deposit b. To purchase U.S. Savings Bonds c. To split your refund between different accounts
Yes No Yes No Yes No
4. If you have a balance due, would you like to make a payment directly from your bank account? Yes No
5. Did you live in an area that was declared a Federal disaster area? Yes No If yes, where?
6. Did you, or your spouse if filing jointly, receive a letter from the IRS? Yes No
7. Would you like information on how to vote and/or how to register to vote? Yes No
Many free tax preparation sites operate by receiving grant money or other federal financial assistance. The data from the following questions may be used by
this site to apply for these grants or to support continued receipt of financial funding. Your answer will be used only for statistical purposes. These questions
are optional.
8. Would you say you can carry on a conversation in English, both understanding & speaking? Very well Well Not well Not at all Prefer not to answer
9. Would you say you can read a newspaper or book in English? Very well Well Not well Not at all Prefer not to answer
10. Do you or any member of your household have a disability? Yes No Prefer not to answer
11. Are you or your spouse a Veteran from the U.S. Armed Forces? Yes No Prefer not to answer
12. Your race?
American Indian or Alaska Native Asian Black or African American Native Hawaiian or other Pacific Islander White Prefer not to answer
13. Your spouse’s race?
American Indian or Alaska Native Asian Black or African American Native Hawaiian or other Pacific Islander White Prefer not to answer
No spouse
14. Your ethnicity? Hispanic or Latino Not Hispanic or Latino Prefer not to answer
15. Your spouse’s ethnicity? Hispanic or Latino Not Hispanic or Latino Prefer not to answer No spouse
Additional comments

Privacy Act and Paperwork Reduction Act Notice

The Privacy Act of 1974 requires that when we ask for information we tell you our legal right to ask for the information, why we are asking for it, and how it will be used. We must also tell you what could happen if we
do not receive it, and whether your response is voluntary, required to obtain a benefit, or mandatory. Our legal right to ask for information is 5 U.S.C. 301. We are asking for this information to assist us in contacting
you relative to your interest and/or participation in the IRS volunteer income tax preparation and outreach programs. The information you provide may be furnished to others who coordinate activities and staffing at
volunteer return preparation sites or outreach activities. The information may also be used to establish effective controls, send correspondence and recognize volunteers. Your response is voluntary. However, if you
do not provide the requested information, the IRS may not be able to use your assistance in these programs. The Paperwork Reduction Act requires that the IRS display an OMB control number on all public
information requests. The OMB Control Number for this study is 1545-1964. Also, if you have any comments regarding the time estimates associated with this study or suggestion on making this process simpler,
please write to the Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, Washington, DC 20224

Catalog Number 52121E www.irs.gov Form 13614-C (Rev. 10-2022)

The “written communications” Presidential Election Campaign See Tab K on how to enter
answer will be entered into TaxSlayer Fund answer will be entered into information about a refund.
software. TaxSlayer software.

Check for tax benefits for declared Determine if the letter may impact Answers to questions 8­15 are
disaster areas. the return and refer them to any entered and collected inside TaxSlayer
available resources if help is needed. software.

Important Reminder: A Quality Review of each return must be completed using the Quality Review Checklist in Tab K.

B-7
 Starting a New Return

The Start a New Tax Return option

enables you to begin the data
input process for a taxpayer.

These options will not appear for all users. Your screen may have different options based on the
security template you are assigned.

Social Security Number Entry

The next step in creating a new tax return is entering the taxpayer’s Social Security number (SSN) in the
space provided. To ensure accuracy, you are required to enter the SSN twice.

All returns are completed using the Basic

(No Profile) Create a return without a
Taxpayer Profile.

If the SSN is already in use, or the two entries don’t match, the software will display an error message.
Re-enter the numbers.

B-8
 Starting a New Return (continued)

Pulling Prior Year Data

If prior year data is found for this SSN, TaxSlayer Pro displays the following:

Uncheck the boxes for

the items that you do
not want to pull forward.
Forms W-2s that are
carried forward and not
used will need to be
deleted.

Be sure to verify that all EINs and addresses on Forms W-2 and 1099-R are still the same as the prior
year when using carryforward.

B-9
 Determination of Filing Status - Decision Tree
See TaxSlayer entries later in this tab.
Start Here
Were you married on the last YES
day of the year?1,5
NO
Did your spouse die during the YES MARRIED FILING JOINTLY NO Did you and your spouse live
year? OR MARRIED FILING apart all of the last 6 months of
SEPARATELY7 the year?6
NO
Do all the following apply? YES
• Your spouse died in 2020 or 2021 and you
did not remarry before the end of 2022.
• In the year of death, you were entitled to file a Do all of the following apply?
joint return with your spouse. NO • You file a separate return
• You paid more than 1/2 the cost of keeping up from your spouse.
your home for the required period of time.2 • You paid more than 1/2 the
• Your son or daughter (but not a foster child) YES cost of keeping up your home
or stepchild lived in your home all year3 and QUALIFYING SURVIVING for the required period of time.2
was your dependent or would qualify as your SPOUSE • Your home is the main home
dependent except that: he or she does not for your child, stepchild or
meet the gross income test, or does not meet foster child for more than 1/2
the joint return test, or except that you may be the year.3 A grandchild does
claimed as a dependent by another taxpayer. not meet this test.
Don’t include a grandchild or foster child. • You claim the child as a
NO dependent.4
Do both of the following apply? NO YES
SINGLE
• You paid more than 1/2 the cost of keeping
up your home for the required period of time.2
• A “qualifying person,” (see Who Is a YES
Qualifying Person Qualifying You To File as HEAD OF HOUSEHOLD8
Head of Household? chart), lived with you
in your home for more than 1/2 the year.3

Footnotes
1
Answer “NO” to this question if, on the last day of the year, you were legally separated from your spouse under a divorce or separate
maintenance decree. Answer “NO” for individuals who have entered into a registered domestic partnership, civil union, or other similar
relationship that is not called a marriage under state (or foreign) law. Answer YES if taxpayer is married regardless of where the spouse lives.
2
Include in the cost of upkeep expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities and food
eaten in the home. Under proposed regulations, a taxpayer may treat a home’s fair market rental value as a cost of maintaining a household
instead of the sum of payments for mortgage interest, property taxes and insurance. See “Cost of Keeping Up a Home” worksheet later in this tab.
3
See Publication 17, Your Federal Income Tax For Individuals, Filing Status, for rules applying to birth, death, or temporary absence during the
year. There are special rules for claiming your parent as a qualifying person for head of household. See the Who Is a Qualifying Person
Qualifying You To File as Head of Household? Chart later in this tab.
4
Unless the child’s other parent claims him or her under rules for children of divorced or separated parents or parents who lived apart.
5
You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do
not choose to treat your nonresident spouse as a resident alien. However, your spouse is not a qualifying person for head of household
purposes. You must have another qualifying person (see the Who Is a Qualifying Person Qualifying You To File as Head of Household? chart
later in this tab) and meet the other tests to be eligible to file as a head of household. You are considered married if you choose to treat your
nonresident alien spouse as a resident alien. See chapter 1 of Pub 519, U.S. Tax Guide For Aliens.
6
Your spouse is considered to live in your home even if he or she is temporarily absent due to illness, education, business, vacation, military
service, or incarceration.
7
If the taxpayer wants to file MFS, emphasize the advantages to Married Filing Jointly and the possibility of filing Form 8379, Injured Spouse
Claim & Allocation (if appropriate). See Pub 17, Filing Status, MFS Special Rules for list of disadvantages. Respect a taxpayer’s decision to file
MFS. If domiciled in a community property state see Pub 555, Community Property.
8
There may be multiple filing statuses (for example, two heads of household) within a shared living quarter if each household meets their deter­
mined filing requirements.
If one spouse dies and the other remarries in the same year, the deceased spouse files Married Filing
Separately.

B-10
 Filing Status - Interview Tips
Step Probe or Ask the taxpayer: Action
Were you married on December 31 of the tax year? You are considered unmarried if, on the
6
If YES, go to Step 2.
last day of the year, you were legally separated from your spouse under a divorce or separate If NO, go to Step 4.
maintenance decree. State law governs whether you are married or legally separated under a
divorce or separate maintenance decree. Individuals who have entered into a registered domestic
partnership, civil union, or other similar relationship that is not called a marriage under state (or
foreign) law are not considered married. A taxpayer is married regardless of where the spouse lives.
Do you and your spouse wish to file a joint return? If YES, your filing
status is married
filing jointly.
If NO, go to Step 3.2
Do all the following apply? If YES, STOP. You
• You file a separate return from your spouse are considered
• You paid more than half the cost of keeping up your home for the required period of time.1 unmarried and your
• Your spouse didn’t live in your home during the last 6 months of the tax year 3 filing status is head
• Your home was the main home of your child, stepchild, or foster child for more than half the of household.
year (a grandchild doesn’t meet this test) If NO, STOP. Your
• You claim an exemption for the child (unless the noncustodial parent claims the child under filing status is
rules for divorced or separated parents or parents who live apart) married filing
separately5.

Did your spouse die in 2020 or 2021? If YES, go to Step 5.

If NO, go to Step 6.

Do all the following apply? If YES, STOP. Your

• You were entitled to file a joint return with your spouse for the year your spouse died filing status is
• You didn’t remarry before the end of this tax year Qualifying
• You have a child or stepchild who lived with you all year, except for temporary absences or Surviving Spouse.
other limited exceptions, and who is your dependent or who would qualify as your dependent If NO, go to Step 6.
except that: he or she does not meet the gross income test, does not meet the joint return
test, or except that you may be claimed as a dependent by another taxpayer. Don’t include a
grandchild or foster child.
• You paid more than half the cost of keeping up the home for the required period of time.1
Do both of the following apply? YES – Head of
• You paid more than 1/2 the cost of keeping up your home for the required period of time.1 Household7
• A “qualifying person,” (see Who Is a Qualifying Person Qualifying You To File as Head of NO – Single
Household? chart), lived with you in your home for more than 1/2 the year.4
Footnotes
1
Include in the cost of upkeep expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities and food
eaten in the home. Under proposed regulations, a taxpayer may treat a home’s fair market rental value as a cost of maintaining a household
instead of the sum of payments for mortgage interest, property taxes and insurance. See “Cost of Keeping Up a Home” worksheet later in this tab.
2
You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do
not choose to treat your nonresident spouse as a resident alien. However, your spouse is not a qualifying person for head of household
purposes. You must have another qualifying person (see Who Is a Qualifying Person Qualifying You To File as Head of Household? chart later
in this tab) and meet the other tests to be eligible to file as a head of household.
3
Your spouse is considered to live in your home even if he or she is temporarily absent due to illness, education, business, vacation, military
service, or incarceration.
4
You can’t use head of household filing status based on any person who is your dependent only because he or she lived with you for the entire
year (for example, a companion or a friend).
5
If filing a MFS return in a community property state, allocate income and expense according to state law. This situation may be treated as
Out of Scope.
6
If your spouse died during the year, you are considered married for the whole year for filing status purposes. If you didn’t remarry before the
end of the year, you can file a joint return for yourself and your deceased spouse. If you remarried before the end of the tax year, you can file a
joint return with your new spouse. In that case, your deceased spouse’s filing status is married filing separately for that year.
7
There may be multiple filing statuses (for example, two heads of household) in shared living quarters if each household meets their determined filing
requirements.

B-11
Who Is a Qualifying Person Qualifying You To File as Head of Household?1
DON’T use this chart alone. Use as directed by the interview tips on the previous page.
IF the person is your . . . AND . . . THEN that person is . . .
qualifying child (such as a he or she is single a qualifying person, whether or not
son, daughter, or grandchild the child meets the Citizen or
who lived with you more Resident Test7.
than half the year and meets he or she is married and you can claim him or her as a a qualifying person.
certain other tests)2 dependent
he or she is married and you can’t claim him or her as a not a qualifying person.3
dependent
qualifying relative who is
4 you can claim him or her as a dependent5 a qualifying person.6
your father or mother you can’t claim him or her as a dependent not a qualifying person.
qualifying relative4 other he or she lived with you more than half the year, and a qualifying person.
than your father or mother. you can claim him or her as a dependent, and is one of
the following: son, daughter, stepchild, foster child, or
a descendant of any of them; your brother, sister, half
brother, half sister or a son or daughter of any of them;
an ancestor or sibling of your father or mother; or step­
brother, stepsister, stepfather, stepmother, son-in-law,
daughter-in-law, father-in-law, mother-in-law, brother-in­
law or sister-in-law5
he or she didn’t live with you more than half the year not a qualifying person.
he or she isn’t related to you in one of the ways listed not a qualifying person.
above and is your qualifying relative only because he or
she lived with you all year as a member of your house­
hold (for example, a companion or a friend)
you can’t claim him or her as a dependent not a qualifying person.
Footnotes
1
A person can’t qualify more than one taxpayer to use the head of household filing status for the year.
2
The term “qualifying child” is covered in Tab C, Dependents. Note: If you are a noncustodial parent, the term “qualifying child” for head of
household filing status doesn’t include a child who is your dependent only because of the rules described in the Children of Divorced or
Separated Parents table. If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household
filing status even though the child isn’t a qualifying child who you can claim as a dependent. A grandchild is not a qualifying person for HOH status if
the taxpayer is married filing a separate return from their spouse.
3
This person is a qualifying person if the only reason you can’t claim him or her as a dependent is that you can be claimed as a dependent on
someone else’s return.
4
The term “qualifying relative” is covered in Tab C, Dependents.
5
If you can claim a person as a dependent only because of a multiple support agreement, that person isn’t a qualifying person.
See Multiple Support Agreement, in Publication 17.
6
You are eligible to file as head of household even if your parent, whom you can claim as a dependent, doesn’t live with you. You must pay more
than half the cost of keeping up a home that was the main home for the entire year for your parent. This test is met if you pay more than half the
cost of keeping your parent in a rest home or home for the elderly.
7
The Citizen or Resident Test states: You generally can’t claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S.
national, or a resident of Canada or Mexico.

B-12
 Cost of Keeping Up a Home

Keep for Your Records

______________________________________________________________
Amount
You Total
Paid Cost

Property Taxes* $ $

Mortgage interest expenses* $ $

Rent $ $

Utility charges $ $

Property insurance* $ $

Food eaten in the home $ $

Other household expenses $ $

Fair market rental value* $ $

*Under proposed regulations, fair market rental value may be used (instead of the sum of payments for
property taxes, mortgage interest expenses, and property insurance)

Totals
Minus total amount you paid ( )

Amount others paid $

If the total amount you paid is more than the amount others paid, you meet the requirement of paying
more than half the cost of keeping up the home
_____________________________________________________________
Costs you include. Include in the cost of keeping up a home expenses such as rent, mortgage
interest, real estate taxes and insurance on the home, repairs, utilities, and food eaten in the home.
As an alternative to including mortgage interest, real estate taxes, and insurance under proposed
regulations, you may include the fair market rental value of the home.
Costs you don’t include. Don’t include the cost of clothing, education, medical treatment, vacations, life
insurance, or transportation. Also, don’t include the value of your services or those of a member of your
household.

Payments received under Temporary Assistance for Needy Families or other public assistance
programs used to pay the costs of keeping up the home can be counted as money you paid.
Amounts paid out of funds received in the child’s or qualifying person’s name, such as social
security, are considered paid by the child, not you.

B-13
 Entering Basic Information
Basic Information>Filing Status

After collecting necessary information from Form 13614-C, Intake/Interview & Quality Review Sheet, and
properly applying the tax law, you should choose the taxpayer’s filing status.

If the taxpayer’s spouse died during the year, the taxpayer is considered married for the whole year
for filing status purposes. If the taxpayer didn’t remarry before the end of the tax year, a joint return
can be filed for the taxpayer and deceased spouse. If remarried before the end of the tax year,
taxpayer can file a joint return with the new spouse. The deceased spouse’s filing status is Married
Filing Separately for that year.
Use the Filing Status
Interview Tips to determine
the correct filing status.

Refer the taxpayer to a site with Foreign Student

certification. Resident aliens generally are taxed the
same as U.S. citizens.

Most nonresident aliens and dual status aliens have different filing requirements
and may have to file Form 1040-NR. In this case, the return is Out of Scope.

B-14
 Entering Basic Information (continued)
The second screen titled Married Separate, is used to determine the spouse’s return status.

Individuals who are married and living apart but not legally separated under a decree of divorce or
separate maintenance are considered married for federal tax purposes. Individuals who are married
in a foreign country are married for federal tax purposes if the relationship would be recognized as
marriage under the laws of at least one state, possession, or territory of the United States, regardless of
domicile. Individuals are not lawfully married for federal tax purposes if they have entered into a registered
domestic partnership, civil union, or other similar formal relationship not denominated as marriage under
the law of the state, possession or territory of the Untied States where such relationship was entered into,
regardless of domicile.

While there are legitimate reasons for married taxpayers to file separately, there are also drawbacks.
A limited list is provided here. It is not all-inclusive and is provided for informational purposes only.
Taxpayers filing married filing separately:

• Can’t claim American opportunity credit, lifetime learning credit or the student loan interest
deduction
• Can’t claim either the child and dependent care credit or the earned income credit unless the
taxpayer meets the requirements to be considered unmarried
• Who lived with the spouse at any time during the year can’t claim the credit for the elderly or the
disabled and must include in income a greater percentage of Social Security or Railroad Retirement
benefits
• Are limited to $1,500 in capital losses
• Can’t claim the standard deduction if the spouse itemizes
• Who lived with the spouse at any time during the year have a MAGI limit for contributions to Roth
IRAs of $10,000
• Who is covered, or whose spouse is covered, by a retirement plan at work have a MAGI limit for
deductible contributions to traditional IRAs of $10,000

See Tab M, Other Returns, if taxpayers opt to file an injured spouse allocation rather than filing
separately.

B-15
 Determining the Last Name of Taxpayer

A name control is a sequence of letters derived from a taxpayer’s last name that is used by IRS in processing
the tax return filed by the taxpayer. It is important that the combination of name control and taxpayer
identification number (TIN) provided on an electronically filed return match IRS’s record of name controls and
TINs.
In e-file, a taxpayer’s TIN and name control must match the data in the IRS database. If they don’t match, the
e-filed return will reject and generate an Error Reject Code.
Individuals may create a mySocialSecurity account to see how their information shows up on Social Security
Administration records. For additional information, visit the Social Security Administration’s website.

Name Controls for Individual Tax Returns

1. Primary Name Control (SEQ 0050) of Form 1040 must equal the first significant characters of the
primary taxpayer’s last name. No leading or embedded spaces are allowed. The first left-most
position must contain an alpha character. Omit punctuation marks (except hyphens), titles and
suffixes within last name field.

Examples:
Individual Name Primary/Secondary Name Control

Individual Name on Enter in TaxSlayer IRS Database

SSN/ITIN Card(s) Primary/Secondary
First Name Field Last Name Field
Name Control
John Brown John Brown BROW
Walter Di Angelo Walter Di Angelo DIAN
Ronald En, Sr. Ronald En EN
Thomas Lea-Smith Thomas Lea-Smith LEA-
Joseph Corn & Mary Smith Joseph Corn CORN
Mary Smith SMIT
Roger O’Neil Roger ONeil ONEI
Kenneth McCarty Kenneth McCarty MCCA
FNU Smith (First Name Unknown) FNU Smith SMIT
Smith (No First Name) Smith SMIT

B-16
 Determining the Last Name of Taxpayer (continued)
2. Consider certain suffixes as part of the last name (i.e., Armah-Bey, Paz-Ayala, Allar-Sid). Particular
attention must be given to those names that incorporate a mother’s maiden name as a suffix to
the last name. For example, traditional Hispanic last names include the taxpayer’s father’s name
followed by a space and the taxpayer’s mother’s maiden name. A married taxpayer’s last name
remains the same and either simply adds on the spouse’s father’s name (resulting in 3 names
forming the last name) or deletes the mother’s maiden name and adds on the spouse’s father’s
name (sometimes the spouse’s father’s name is preceded by “de”).
Examples:
Individual Name Primary Name Control

Individual Name on SSN/ Enter in TaxSlayer IRS Database Primary

ITIN Card First Name Field Last Name Field Name Control
Abdullah Allar-Sid Abdullah Allar-Sid ALLA
Jose Alvarado Nogales Jose Alvarado Nogales ALVA
Juan de la Rosa Y Obregon Juan de la Rosa Y Obregon DELA
Pedro Paz-Ayala Pedro Paz-Ayala PAZ-
Donald Vander Neut Donald Vander Neut VAND
Otto Von Wodtke Otto Von Wodtke VONW
John Big Eagle John Big Eagle BIGE
Mary Her Many Horses Mary Her Many Horses HERM
Ted Smith Gonzalez Ted Gonzalez GONZ
Maria Acevedo Smith Maria Smith SMIT
Robert Garcia Garza Hernan­ Robert Garza Hernandez GARZ
dez

Please note that these are examples for how the name is shown on a return. Asking the taxpayer how
their name was shown on their return if they filed the previous year may help prevent a reject.
3. Below are examples of Indo-Chinese last names and the derivative Name Control. Some Indo-
Chinese names have only two characters. Indo-Chinese names often have a middle name of “Van”
(male) or “Thi” (female).
Examples:
Individual Name Primary/Secondary Name Control

Individual Name on SSN/ Enter in TaxSlayer IRS Database Primary

ITIN Card First Name Field Last Name Field Name Control
Binh To La Binh La LA
Kim Van Nguyen Kim Nguyen NGUY
Nhat Thi Pham Nhat Pham PHAM
Jin Zhang Qui & Yen Yin Chiu Jin Zhang Qui QUI
Yen Yin Chiu CHIU

B-17
 Entering Basic Information (continued)

Basic Information>Personal Information

The input screens below gather the taxpayer’s personal information.

If a taxpayer is
deceased, make the
surviving spouse the Check the box if another
primary taxpayer. taxpayer can claim this person as
a dependent.

Check the box if the taxpayer

is between the ages of 18 and
24 and is a full-time student
You must input a birth date. Use drop during some part of each of any
down boxes to select Month, Date & 5 calendar months of the year.
Year. See Tab R, Glossary and Index
for definition of
a full-time student.

This section is important for calculation of filing status, standard deduction,

Presidential Election Fund, and military status. Check the Taxpayer is
deceased box to generate a Date
of Death box, which must be
completed. The word Deceased
and the date of death will print next
to the deceased person’s name at
the top of Form 1040 page 1, as
required by the IRS.

Checking the “yes” box to

contribute to the Presidential
Election Campaign Fund does not
increase the amount of tax that
taxpayers owe, nor does it decrease
any refund to which they are entitled.

Do not mark the taxpayer was

a nonresident alien box
if taxpayer or spouse is married to
a citizen or resident alien and they
have elected to treat the non­
resident alien as a resident alien.

This option The return is Out of Scope if the taxpayer must check the box. Taxpayers may choose to receive
will only appear if Taxpayers are not required to check the box if they held no virtual written communications from IRS in a
MFS filing status is currency for the tax year or if the taxpayer’s only transactions language other than English or in an
selected. involving virtual currency during the tax year were purchases of accessible format. Check the box and
virtual currency with real currency. select the language or format from the
drop down menu.

B-18
 Entering Basic Information (continued)

ID Protection PINs are entered in the

Miscellaneous Forms Menu or in the Basic
Information section.
Verify the spouse’s last name with their Social
Security card. If different from the taxpayer’s,
correct the autofilled 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 marked for paper filing. It
will be rejected if filed electronically.

Check the Military or foreign

address boxes if they apply.

Entering the ZIP code will cause

the city and state to auto-fill.
Correct the city name if needed.

See Note on following page for

residency status.

Always ask for the best telephone

number (i.e. cell phone) to contact
the taxpayer so the site can follow
up with clients about return rejects
or if additional information is
needed.

B-19
 Entering Basic Information (continued)
Resident State Return - This option will allow you to select the taxpayer’s state of residency. Once
the state has been chosen, selecting Continue will prompt the state questions. The program will
create the state return based on the state selected. The program will automatically transfer basic
information into the state return for you. Any additional states that are needed will be selected within the State
Return section of the return. If a taxpayer lived in more than one state during the year, enter the state he or
she lived in with the highest federal poverty level (FPL). That FPL will be used to make ACA calculations. If
there isn’t a state return to complete, select None from the list.

For Military certification - Ask the taxpayer their state of legal residence. The Civilian spouse of
an active duty service member, under Military Spouses Residency Relief Act (MSRRA) can choose
to keep their prior residence or domicile for tax purposes (tax residence) when accompanying the
service member spouse, who is relocating under military orders, to a new military duty station in one of the
50 states, the District of Columbia, or a U.S. territory. Before relocating, both spouses must have the same
tax residence.

Entering Dependent/Qualifying Person

Basic Information>Dependents/Qualifying Person

To determine if a person qualifies as the taxpayer’s dependent, see Tab C, Dependents.

In order for the IRS to accept the tax return electronically, ensure that:
• The correct date of birth is entered
• The dependent’s name is spelled correctly
• The correct social security number is entered

If any of these three items are entered incorrectly, the IRS will reject the tax return for electronic filing
purposes.

B-20
 Entering Dependent/Qualifying Person (continued)

The taxpayer’s name carries

forward to the dependent. Make
changes as needed based on the
dependent’s social security card.

Select Check box if the depen­

dent does not have an SSN/ITIN/
ATIN, if applicable. If checked, the
software will ask if the dependent will
be completing a Form W-7, Applica­
tion for ITIN. The Form W-7 is located
in the Federal Section, Miscellaneous
Forms. If not applying for an ITIN,
answer no and enter the reason
(such as the death of the child) that
the child does not have a TIN.

When a dependent’s informa­

tion is carried forward, be sure to
check the citizenship box.

If the taxpayer has a

dependent whose relationship is
not listed, pick the relationship
that has the same tax treatment.
For example, if the taxpayer’s
dependent is their great-grand­
child, select grandchild for the
relationship.

Use the drop down list to

enter the number of months or
select Lived in Mexico or Lived in
Canada. Enter 12 months if the
dependent was born or died during
the year or was temporarily absent
(school, vacation, etc.). If you are
the noncustodial parent claiming
your child as a dependent, select
Divorce/Separation for the num­
ber of months.

Carefully read the selections

under the “Please answer the If the dependent is not your If no one person contributed over half of the support
following” list. Check all that apply. qualifying child for EIC, select of the taxpayer’s relative (or a person who lived with the
Check if you wish to NOT claim taxpayer all year as a member of their household) but
this dependent for Earned the taxpayer and another person(s) provided more than
Select the not your dependent Income Credit purposes. half of that person’s support, special rules may apply that
box if the custodial parent is not would treat the taxpayer as having provided over half
claiming the child because either: of the support. For details, see Pub. 501, Dependents,
• the child provides more than half Standard Deduction, and Filing Information.
of his or her own support, or
• the noncustodial parent is
claiming the dependent.

B-21
 Entering Dependent/Qualifying Person (continued)

Qualifying Child(ren) for Earned Income Credit (EIC):

EIC is considered for every return unless the program determines that it is not viable. Verify names, SSNs,
and dates of birth with social security cards to prevent rejected returns.

TaxSlayer calculates the amount of earned income credit if the client qualifies based on income and other
requirements. Reminder: Although age, relationship and residency requirements are the same for EIC as for
dependency, support is NOT an issue for EIC (it does not matter whether or not the child, parent, or another
provides over half of the child’s support).

B-22
Tab C: Dependents

C-i
C-ii
 Overview of the Rules for Claiming a Dependent
This table is only an overview of the rules. For details, see Publication 17, Your Federal Income Tax
For Individuals.
• You can’t claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by
another taxpayer.
• You can’t claim a married person who files a joint return as a dependent unless that joint return is only to
claim a refund of income tax withheld or estimated tax paid.
• You can’t claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S.
national, or a resident of Canada or Mexico.1
• You can’t claim a person as a dependent unless that person is your qualifying child or qualifying relative.
Tests To Be a Qualifying Child Tests To Be a Qualifying Relative
1. The child must be your son, daughter, stepchild, foster child, 1. The person can’t be your qualifying child or the qualifying child
brother, sister, half brother, half sister, stepbrother, stepsister, of any other taxpayer. A child isn’t the qualifying child of any
or a descendant of any of them. other taxpayer if the child’s parent (or any other person for whom
An adopted child is always treated as your own child. The term the child is defined as a qualifying child) isn’t required to file an
“adopted child” includes a child who was lawfully placed with income tax return or files an income tax return only to get a refund
you for legal adoption. of income tax withheld.
2. The child must be: (a) under age 19 at the end of the year 2. The person either (a) must be related to you in one of the ways
and younger than you (or your spouse, if filing jointly), (b) listed under Relatives who don’t have to live with you (see Table
under age 24 at the end of the year, a full-time student, and 2, step 2), or (b) must live with you all year as a member of your
younger than you (or your spouse, if filing jointly), or (c) any household2 (and your relationship must not violate local law).
age if permanently and totally disabled.
3. The child must have lived with you for more than half of 3. The person’s gross income for the year must be less than $4,400.3
the year.2 Gross income means all income the person received in the form of
money, goods, property and services, that isn’t exempt from tax. Don’t
include Social Security benefits unless the person is married filing a sep­
arate return and lived with their spouse at any time during the tax year or
if 1/2 the Social Security benefits plus their other gross income and tax
exempt interest is more than $25,000 ($32,000 if MFJ).
4. The child must not have provided more than half of his or 4. You must provide more than half of the person’s total support
her own support for the year.5 for the year.4, 5
5. The child isn’t filing a joint return for the year (unless that
joint return is filed only to claim a refund of income tax withheld
or estimated tax paid).
6. If the child meets the rules to be a qualifying child of more
than one person, you must be the person entitled to claim the
child as a qualifying child. See the “Qualifying Child of More
Than One Person” chart.
Footnotes
1
There is an exception for certain adopted children.
2
There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents or
parents who live apart, and kidnapped children. If you obtained a final decree of divorce or separate maintenance during the year, you can’t take
your former spouse as a dependent. This rule applies even if you provided all of your former spouse’s support.
3
There is an exception if the person is disabled and has income from a sheltered workshop.
4
There are exceptions for multiple support agreements, children of divorced or separated parents or parents who live apart, and kidnapped children.
5
A worksheet for determining support is provided later in this tab. If a person receives Social Security benefits and uses them toward his or her
own support, those benefits are considered as provided by the person. Benefits provided by the state to a needy person are generally considered
support provided by the state. A proposed rule on which taxpayers may choose to rely treats governmental payments made to a recipient that
the recipient uses, in part, to support others as support of the others provided by the recipient, whereas any part of such payment used for the
support of the recipient would constitute support of the recipient by a third party. For example, if a mother receives Temporary Aid to Needy
Families (TANF) and uses the TANF payments to support her children, the proposed regulations treat the mother as having provided that support.

C-1
 Qualifying Child of More Than One Person

Tiebreaker Rules
If the child meets the conditions to be the qualifying child of more than one person, only one person can claim the child as a quali­
fying child dependent for all tax benefits associated with an exemption unless the special rule for children of divorced or separated
parents applies1.
• Credit for other dependents • Child Tax Credit
• Head of Household • Earned Income Credit
• Credit for Child and Dependent Care Expenses • Exclusion from income for Dependent Care Benefits

No other person can take any of the six tax benefits listed above unless he or she has a different qualifying child. To
determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker
rules apply. Subject to these tiebreaker rules, the taxpayer and the other person may be able to choose which person
claims the child as a qualifying child.

If only one of the persons is the child’s parent, the child is treated as the qualifying child of the parent.

If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of
the parents.

If the parents don’t file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as
the qualifying child of the parent with whom the child lived for the longer period of time during the year. If the child lived with each
parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted
gross income (AGI) for the year.

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

If a parent can claim the child as a qualifying child but no parent claims the child, the child is treated as the qualifying child of
the person who had the highest AGI for the year, but only if that person’s AGI is higher than the highest AGI of any of the child’s
parents who can claim the child. If the child’s parents file a joint return with each other, this rule can be applied by dividing the
parents’ combined AGI equally between the parents.

Example: Your daughter meets the conditions to be a qualifying child for both you and your mother. Under the rules above, you
are entitled to treat your daughter as a qualifying child for all of the six tax benefits listed above for which you otherwise qualify.
Your mother isn’t entitled to take any of the six tax benefits listed above unless she has a different qualifying child. However, if
your mother’s AGI is higher than yours, you can let your mother treat your daughter as her qualifying child. If you do that, your
daughter isn’t your qualifying child for any of the six benefits.
For more details and examples, see Publication 17 and Publication 501, Exemptions, Standard Deduction, and Filing Information.

Footnote
1
When the special rule for children of divorced or separated parents applies (see Table 3, later in this tab) and the noncustodial parent claims
the child as a dependent, the noncustodial parent may also claim the child tax credit and any educational benefit, if all other rules are met. The
custodial parent should enter the child as a nondependent in the software (see software entries in Tab B, Starting a Return and Filing Status),
because they may be eligible for the EIC, Child and Dependent Care Credit, Exclusion from income for Dependent Care Benefits and Head of
Household filing status.

C-2
 Table 1: All Dependents
Begin with this table to determine both Qualifying Child and Qualifying Relative dependents.

Step Probe/Ask the taxpayer: Action

Can you or your spouse (if filing jointly) be claimed as a If YES: If you can be claimed as a dependent by another
dependent on another taxpayer’s tax return this year?5 taxpayer, you may not claim anyone else as your dependent.
If NO: Go to Step 2
Was the person married as of December 31, 2022? If YES: Go to Step 3
If NO: Go to Step 4

Is the person filing a joint return for this tax year? (Answer If YES: You can’t claim this person as a dependent.
“NO” if the person is filing a joint return only to claim a refund If NO: Go to Step 4
of income tax withheld or estimated tax paid.)
Was the person a U.S. citizen, U.S. resident alien, U.S. national, If YES: Go to Step 5
or a resident of Canada or Mexico? If NO: You can’t claim this person as a dependent.
(Answer “YES” if you are a U.S. citizen or U.S. national and
you adopted a child who lived with you as a member of your
household all year.)
Was the person your son, daughter, stepchild, eligible foster If YES: Go to Step 6
child, brother, sister, half brother, half sister, stepbrother, If NO: This person isn’t your qualifying child. Go to Table
stepsister, or a descendant of any of them (i.e., your grand­ 2: Qualifying Relative Dependents
child, niece, or nephew)?4
Was the person: If YES: Go to Step 7
• under age 19 at the end of the year and younger than you If NO: This person isn’t your qualifying child. Go to Table
(or your spouse, if filing jointly) OR 2: Qualifying Relative Dependents
• under age 24 at the end of the year, a full-time student
(see definition in the glossary) and younger than you (or
your spouse, if filing jointly) OR
• any age if permanently and totally disabled1 at any time
during the year?
Did the person live with you as a member of your household, If YES: Go to Step 8 (Use Table 3 to see if the
except for temporary absences2, for more than half the year? dependency for children of divorced or separated
(Answer “YES” if the child was born or died during the year.) parents or parents who live apart applies.)
If NO: This person isn’t your qualifying child. Go to Table
2: Qualifying Relative Dependents
Did the person provide more than half of his or her own If YES: You can’t claim this person as a dependent
support3 for the year? If NO: Go to Step 9
Is the person a qualifying child of any other taxpayer? If YES: Go to the chart: Qualifying Child of More Than
One Person
If NO: You can claim this person as a qualifying child
dependent
Footnotes
1
A person is permanently and totally disabled if he or she can’t engage in any substantial gainful activity because of a physical or mental condition, AND
a doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death.
2
A child is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to illness, education,
business, vacation, military service, institutionalized care for a child who is permanently and totally disabled, or incarceration. In most cases a
child of divorced or separated parents is the qualifying child of the custodial parent. See Table 3: Children of Divorced or Separated Parents or
Parents Who Live Apart to see if an exception applies. There is an exception for kidnapped children. See Publication 17.
3
A worksheet for determining support is included later in this tab. If a child receives Social Security benefits and uses them toward his or her own
support, those benefits are considered as provided by the child. Benefits provided by the state to a needy person (welfare, food stamps, housing,
SSI) are generally considered support provided by the state.
4
An adopted child is treated the same as a natural child for the purposes of determining whether a person is related to you in any of these ways.
For example, an adopted brother or sister is your brother or sister. An adopted child includes a child who was lawfully placed with a person for
legal adoption.
5
An individual is not a dependent of a person if that person is not required to file an income tax return and either does not file an income tax
return or files an income tax return solely to claim a refund of estimated or withheld taxes.

C-3
 Table 2: Qualifying Relative Dependents
You must start with Table 1. (To claim a qualifying relative dependent, you must first meet the Dependent
Taxpayer, Joint Return and Citizen or Resident Tests in steps 1-4 of Table 1)
Step Probe/Ask the taxpayer: Action
Is the person your qualifying child or the qualifying child of any If YES, the person isn’t a qualifying relative.
other taxpayer? A child isn’t the qualifying child of any other (See Table 1: All Dependents)
taxpayer if the child’s parent (or any other person for whom the If NO, go to Step 2.
child is defined as a qualifying child) isn’t required to file a U.S.
income tax return or files an income tax return only to get a
refund of income tax withheld.
Was the person your son, daughter, stepchild, foster child, or If NO, go to Step 3.
a descendant of any of them (i.e., your grandchild)? OR If YES, go to Step 4.
Was the person your brother, sister, half brother, half sister, or a
son or daughter of any of them? OR Note: The relatives listed in Step 2 are considered
Was the person your father, mother, or an ancestor or sibling “Relatives who don’t have to live with you”
of either of them? OR Note: To enter into TaxSlayer a qualifying relative who
Was the person your stepbrother, stepsister, stepfather, step­ did not live with the taxpayer more than 6 months, choose
mother, son-in-law, daughter-in-law, father-in-law, mother-in­ “Other reasons” from the months dropdown menu.
law, brother-in-law, or sister-in-law?1
Was the person any other person (other than your spouse) If NO, you can’t claim this person as a dependent.
who lived with you all year as a member of your household?2 If YES, go to Step 4.

Exceptions: There are exceptions for kidnapped chil­

dren; a child who was born or died during the year; certain
temporary absences—school, vacation, medical care, etc.

Divorced or separated spouse. If you obtained a

final decree of divorce or separate maintenance during the
year, you can’t take your former spouse as a dependent.
This rule applies even if you provided all of your former
spouse’s support.

Did the person have gross income of less than $4,400 in If NO, you can’t claim this person as a dependent.
2022?3 If YES, go to Step 5.
continued on next page
Footnotes
1
An adopted child is treated the same as a natural child for the purposes of determining whether a person is related to you in any of these ways.
For example, an adopted brother or sister is your brother or sister. An adopted child includes a child who was lawfully placed with a person for
legal adoption. Any of these relationships that were established by marriage aren’t ended by death or divorce.
2
A person doesn’t meet this test if at any time during the year the relationship between you and that person violates local law.
3
For purposes of this test, the gross income of an individual who is permanently and totally disabled at any time during the year doesn’t include
income for services the individual performs at a sheltered workshop. Gross income means all income the person received in the form of money,
goods, property and services, that isn’t exempt from tax. Don’t include Social Security benefits unless the person is married filing a separate return
and lived with their spouse at any time during the tax year or if 1/2 the Social Security benefits plus their other gross income and tax exempt
interest is more than $25,000 ($32,000 if MFJ).

C-4
 Table 2: Qualifying Relative Dependents
Step Probe/Ask the taxpayer: Action
Did you provide more than half the person’s total support for If YES, you can claim this person as your qualifying
the year? relative dependent. (Use Table 3 to see if the
exception for children of divorced or separated
See Worksheet for Determining Support on page C-7 to parents or parents who live apart applies.)
calculate the total support for the year. If NO, go to Step 6.
Did another person provide more than half the person’s total If YES, you can’t claim this person as a dependent.
support? If NO, go to Step 7.
Did two or more people, each of whom would be able to take If YES, go to Step 8.
the dependent but for the support test, together provide more If NO, you can’t claim this person as a dependent.
than half the person’s total support?
Did you provide more than 10% of the person’s total support If YES, go to Step 9.
for the year? If NO, you can’t claim this person as a dependent.
Did the other person(s) providing more than 10% of the If YES, you can claim this person as a dependent. You
person’s total support for the year provide you with a signed must file Form 2120, Multiple Support Declaration,
statement agreeing not to claim the dependent? with your return.
If NO, you can’t claim this person as a qualifying child
dependent.

Footnotes
See Table 3, Children of Divorced or Separated Parents or Parents Who Live Apart, for the exception to the support test.
If a child receives Social Security benefits and uses them toward his or her own support, those benefits are considered as provided by the child.
Benefits provided by the state to a needy person are generally considered support provided by the state. A proposed rule, on which taxpayers
may choose to rely, treats governmental payments made to a recipient that the recipient uses, in part, to support others as support of the others
provided by the recipient, whereas any part of such payment used for the support of the recipient would constitute support of the recipient by
a third party. For example, if a mother receives TANF and uses the TANF payments to support her children, the proposed regulations treat the
mother as having provided that support.

C-5
 Table 3: Children of Divorced or Separated
Parents or Parents Who Live Apart
Use this table when directed from Table 1 or Table 2 to determine if the exception applies to the qualifying
child residency test or the qualifying relative support test
Step Probe/Ask the taxpayer: Action
Did the child receive over half of his or her support from the parents who are:
4
If YES, go to Step 2.
Divorced OR If NO, Table 3 doesn’t apply.
Legally separated under a decree of divorce or
separate maintenance OR
Separated under a written separation agreement OR
Lived apart at all times during the last 6 months of the year?

Was the child in the custody of one or both parents for more than half the year?1 If YES, go to Step 3.
If NO, Table 3 doesn’t apply.

Did the custodial parent (parent with whom the child lived for the greater number If YES, the Table 3 exception applies.2
of nights during the year) provide the taxpayer a signed written declaration (Form Return to the appropriate step in Table
8332, Release/Revocation of Release of Claim to Exemption to Child by Custodial 1 or Table 2.
Parent, a copy of Form 8332, or similar document) releasing his or her claim to the If NO, go to Step 4.
child as a dependent?
Are either of the following statements true? If YES, the Table 3 exception applies.
The taxpayer has a post-1984 and pre-2009 decree3 or agreement that is appli­ Return to the appropriate step in Table
cable for the current tax year and states all three of the following: 1 or Table 2.
1. The noncustodial parent can claim the child as a dependent If NO, Table 3 doesn’t apply.
without regard to any condition, such as payment of support.
2. The other parent won’t claim the child as a dependent for the year.
3. The years for which the noncustodial parent can claim the child as a dependent.
OR
The taxpayer has a pre-1985 decree of divorce or separation maintenance or
written separation agreement between the parents that provide that the
noncustodial parent can claim the child as a dependent, and the noncustodial
parent provides at least $600 for support of the child during the current tax year.
Footnotes
1
If the child is emancipated under state law, either by reaching age of majority or other means, child is treated as not living with either parent (see
Publication 17).
2
Post-2008 decree or agreement. If the divorce decree or separation agreement went into effect after 2008, the noncustodial parent can’t attach
pages from the decree or agreement instead of Form 8332. The custodial parent must sign, and the noncustodial parent must attach to his or her
return, either Form 8332, or a copy of Form 8332 or a substantially similar statement the only purpose of which is to release the custodial parent’s
claim to a child. For an e-filed return, attach and submit the Form 8332 with Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file
Return. Alternatively, scan Form 8332 and upload to the return as a Scanned Document. See Tab K.
3
Post-1984 and Pre-2009 divorce decrees or agreements: The noncustodial parent must attach all of the following pages from the decree or
agreement.
• Cover page (include the other parent’s SSN on that page)
• The pages that include all the information identified in (1) through (3) above
• Signature page with the other parent’s signature and date of agreement.
4
If you remarry, the support provided by your new spouse is treated as provided by you.
Release of certain tax benefits revoked
A custodial parent who has revoked his or her previous release of a claim to certain tax benefits for a child
must attach a copy of the revocation to his or her return. For the revocation to be effective for the current
tax year, the custodial parent must have given (or made reasonable efforts to give) written notice of the
revocation to the noncustodial parent in the prior tax year or earlier. (See Form 8332 for more details)

Other decrees or agreements that don’t meet step 4:

Noncustodial parents must attach the Form 8332, or a copy of Form 8332 or similar statement to their return.

C-6
 Worksheet for Determining Support
Taxpayers should keep a completed copy of this worksheet for their records. See the following page
for important notes.

Funds Belonging to the Person You Supported

1. Enter the total funds belonging to the person you supported, including income received (taxable and non­
taxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the
beginning of the year. Don’t include funds provided by the state; include those amounts on line 23 instead ..... 1. ___________
2. Enter the amount on line 1 that was used for the person’s suport ................................................................. 2. ___________
3. Enter the amount on line 1 that was used for other purposes ........................................................................ 3. ___________
4. Enter the total amount in the person’s savings and other accounts at the end of the year ............................ 4. ___________
5. Add lines 2 through 4. (This amount should equal line 1.) ........................................................................... 5. ___________
Expenses for Entire Household (where the person you supported lived)
6. Lodging (complete line 6a or 6b):
a. Enter the total rent paid .................................................................................................................................... 6a. __________

b. Enter the fair rental value of the home. If the person you supported owned the home, also include this
amount in line 21 .................................................................................................................................................. 6b. __________

7. Enter the total food expenses ......................................................................................................................... 7. ___________

8. Enter the total amount of utilities (heat, light, water, etc. not included in line 6a or 6b) ............................... 8. ___________

9. Enter the total amount of repairs (not included in line 6a or 6b) .................................................................. 9. ___________

10. Enter the total of other expenses. Don’t include expenses of maintaining the home, such as mortgage
interest, real estate taxes, and insurance ............................................................................................................. 10. ___________

11. Add lines 6a through 10. These are the total household expenses ................................................................ 11. ___________

12. Enter total number of persons who lived in the household ............................................................................ 12. ___________

Expenses for the Person You Supported

13. Divide line 11 by line 12. This is the person’s share of the household expenses ........................................... 13. ___________

14. Enter the person’s total clothing expenses .................................................................................................... 14. ___________

15. Enter the person’s total education expenses ................................................................................................. 15. ___________

16. Enter the person’s total medical and dental expenses not paid for or reimbursed by insurance .................. 16. ___________

17. Enter the person’s total travel and recreation expenses ................................................................................ 17. ___________

18. Enter the total of the person’s other expenses ............................................................................................... 18. ___________

19. Add lines 13 through 18. This is the total cost of the person’s support for the year ....................................... 19. ___________

Did the Person Provide More Than Half of His or Her Own Support?
20. Multiply line 19 by 50% (0.50) ........................................................................................................................ 20. ___________

21. Enter the amount from line 2, plus the amount from line 6b if the person you suported owned the home.
This is the amount the person provided for his or her own support..................................................................... 21. ___________

22. Is line 21 more than line 20?

 No. You meet the support test for this person to be your qualifying child. If this person also meets the
other tests to be a qualifying child, stop here; don’t complete lines 23–26. Otherwise, go to line 23 and fill out
the rest of the worksheet to determine if this person is your qualifying relative.
 Yes. You don’t meet the support test for this person to be either your qualifying child or your qualifying
relative. Stop here.

C-7
 Worksheet for Determining Support (continued)
Did You Provide More Than Half?
23. Enter the amount others provided for the person’s support. Include amounts provided by state, local, and
other welfare societies or agencies. Don’t include any amounts included on line 1 ..................................... 23. ___________
24. Add lines 21 and 23 ........................................................................................................................................ 24. ___________

25. Subtract line 24 from line 19. This is the amount you provided for the person’s support ............................. 25. ___________

26. Is line 25 more than line 20?

 Yes. You meet the support test for this person to be your qualifying relative.
 No. You don’t meet the support test for this person to be your qualifying relative. You can’t claim this
person as a dependent unless you can do so under a multiple support agreement, the support test for children
of divorced or separated parents, or the special rule for kidnapped children. See Multiple Support Agreement,
Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart), or Kidnapped child
under Qualifying Relative.

The following items aren’t included in total support:

• Federal, state, and local income taxes paid by persons from their own income
• Social Security and Medicare taxes paid by persons from their own income
• Life insurance premiums
• Funeral expenses
• Scholarships received by your child if your child is a student
• Survivors’ and Dependents’ Educational Assistance payments used for the support of the child who
receives them

TANF and other governmental payments. Under proposed Treasury regulations, if you received
Temporary Assistance to Needy Families (TANF) payments or other similar payments and used the
payment to support another person, those payments are considered support you provided for that
person, rather than support provided by the government or other third party.

Social Security benefits. If spouses each receive benefits that are paid by one check made out to
both of them, half of the total paid is considered to be for the support of each spouse, unless they
can show otherwise. If a child receives Social Security benefits and uses them toward his or her own
support, the benefits are considered as provided by the child.

Foster care payments and expenses. Payments you receive for the support of a foster child from
a child placement agency are considered support provided by the agency. Similarly, payments you
receive for the support of a foster child from a state or county are considered support provided by
the state or county.

Armed Forces dependency allotments. The part of the allotment contributed by the government
and the part taken out of your military pay are both considered provided by you in figuring whether
you provide more than half of the support. If your allotment is used to support persons other than
those you name, you can claim them as dependents if they otherwise qualify.

Tax-exempt income. In figuring a person’s total support, include tax-exempt income, savings, and
borrowed amounts used to support that person. Tax-exempt income includes certain social security
benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments,
nontaxable pensions, and tax-exempt interest.

C-8
Tab D: Income

D-i
D-ii
 Income Quick Reference Guide
This list is a quick reference and volunteers should refer to Publication 525, Taxable and Nontaxable Income,
for more information. Don’t rely on this list alone. Some of the income items on this chart are Out of Scope
for VITA/TCE. Review the Scope of Service chart to identify Out of Scope items. Refer taxpayers with Out
of Scope income to a professional tax preparer. Confirm that all income received by the taxpayer has been
discussed and shown on the return, if required. To determine taxability at the state level, check with your
state’s department of revenue.

Table A – Examples of Taxable Income

(Examples of income to consider when determining whether a return must be filed or if a person meets the gross income test for
qualifying relative)
• Wages, salaries, bonuses, • Farm income • Railroad retirement—Tier I
commissions • Fees (portion may be taxable)
• Alimony (for divorce before 2019, see • Gains from sale of property or • Railroad retirement—Tier II
How/Where to Enter Income, later) securities • Recovery of prior year deduction2
• Annuities • Gambling winnings (medical, property taxes, etc.)
• Awards • Hobby income • Refunds of State and local income tax
• Back pay • Grants to businesses, even disaster (if reportable)2
• Breach of contract payment related, unless exempted by law • Rents (gross rent)
• Business income/Self-employment • Interest • Rewards
income • Interest on life insurance dividends • Royalties
• Cash income • IRA distributions • Severance pay
• Compensation for personal services • Jury duty fees • Self-employment (gross income)
• Canceled debts1 • Military pay (not exempt from taxation) • Social Security benefits (including SSDI)
• Director’s fees • Military pension - portion may be taxable - (See Tab D,
• Disability benefits (employer-funded) • Nonemployee compensation Income, Railroad Retirement, Civil Service,
and Social Security Benefits)
• Discounts • Notary fees • Supplemental unemployment benefits
• Dividends • Partnership, Estate and S-Corporation • Taxable scholarships and grants
• Employee awards income (Schedule K-1s, Taxpayer’s
share) • Tips and gratuities
• Employee bonuses
• Pensions • Tribal per capita payments
• Estate and trust income
• Prizes • Unemployment compensation
• Punitive damage award

D-1
 Nontaxable Income

Table B – Examples of Nontaxable Income

(Examples of income items to exclude when determining whether a return must be filed)
• Child support • Payments to the beneficiary of a deceased employee
• Civil damages, restitution or other monetary award paid to • Payments in lieu of worker’s compensation
someone because that person was wrongfully incarcerated • Qualified Medicaid waiver payments
• Damages for physical injury (other than punitive) • Relocation payments
• Death payments • Rebate/Patronage Dividends issued by co-ops for personal
• Dividends on life insurance use are not taxable
• Employer reimbursements for ordinary or necessary actual • Rental less than 15 days5
expenses • Rental allowance of clergyman
• Federal Employees’ Compensation Act payments • Reverse mortgages
• Federal income tax refunds • Sickness and injury payments
• Gifts • Social security benefits - portion may not be taxable
• Grants to individuals if due to a qualified disaster (otherwise (See Tab D, Income, Railroad Retirement, Civil Service, and
taxable unless exempted by law) Social Security Benefits)
• Inheritance3 or bequest • Student loan forgiveness (2021-2026)
• Insurance proceeds (Accident, Casualty, Health, Life) • Supplemental Security Income (SSI)
• Interest on tax-free securities • Temporary Assistance for Needy Families (TANF)
• Interest on EE/I bonds redeemed for qualified higher education • Terrorist or military action, certain payments received as a result
expenses • Veterans’ benefits
• Meals and lodging for the convenience of employer • Welfare payments (including TANF) and food stamps
• Olympic and Paralympic Games medals and prizes4 • Worker’s compensation and similar payments

Footnotes
1
If the taxpayer received a Form 1099-C, Cancellation of Debt, in relation to their main home, it can be nontaxable
2
If itemized in year paid and taxes were reduced because of deduction
3
An inheritance isn’t reported on the income tax return, but a distribution from an inherited pension or annuity is subject to the same
tax as the original owner would have had to pay
4
The exclusion does not apply to a taxpayer for any year in which the taxpayer’s AGI exceeds $1 million (or $500,000 for an
individual filing a MFS return)
5
If you use a dwelling unit as a home and you rent it less than 15 days during the year, you are not required to report the rental
income and rental expenses from this activity. See Publication 527, Residential Rental Property. (Military Certification only)

D-2
 Armed Forces Gross Income
Members of the Armed Forces receive many different types of pay and allowances. Some are included in
gross income while others are excluded from gross income. Table 1 lists included items that are subject to
tax and must be reported on your tax return. Table 2 lists excluded items that are not subject to tax, but may
have to be shown on your tax return. See Publication 3, Armed Forces’ Tax Guide, for additional information.
To determine taxability at the state level, check with your state’s department of revenue.

Table 1—Included Items

These items are included in gross income, unless the pay is for service in a combat zone
Basic pay • Active duty Special pay • Hostile fire or Incentive • Submarine
• Attendance at a (cont.) imminent danger pay • Flight
designated service • Medical and dental officers • Hazardous duty
school • Nuclear-qualified officers • High altitude/Low altitude
• Back wages • Optometry (HALO)
• Drills (Inactive Duty • Other Health Professional Other • Accrued leave
Training) Special Pay (for example, pay • CONUS COLA
• Reserve training nurse, physician assistant,
• High deployment per
• Training Duty social work, etc.)
diem
• Pharmacy
• Personal money
• Special compensation for allowances paid to high
assistance with activities ranking officers
of daily living (SCAADL)
• Student loan repayment
• Special duty assignment from programs such
pay as the Department of
• Veterinarian Defense Educational
• Voluntary Separation Loan Repayment
Incentive Program, to the extent
that qualified higher
education expenses
exceed $5,250 annually

Special • Aviation career incentives Bonus pay • Career status In-kind • Personal use of
pay • Career sea • Continuation pay military government-provided
• Diving duty • Enlistment benefits vehicle
• Foreign duty (outside the • Officer
48 contiguous states • Overseas extension
and the District of • Reenlistment
Columbia)
• Foreign language
proficiency
• Hardship duty

D-3
 Armed Forces Gross Income (continued)
Table 2—Excluded Items
The exclusion for certain items applies whether the item is furnished in-kind or is a reimbursement or allowance.
Combat • Compensation for active Family • Certain educational Travel • Annual round trip for
zone and service while in a combat allowances expenses for dependents allowances dependent students
qualified zone Note: Limited amount • Emergencies • Leave between
hazardous for commissioned officers • Evacuation to a place of consecutive
duty area • Leave earned or accrued safety overseas tours
pay while performing service in a • Reassignment in a
• Separation
combat zone dependent
restricted status
• Transportation
for you or your
dependents during
ship overhaul or
inactivation
• Per diem
Other pay • Certain amounts received Living • BAH (Basic Allowance for In-kind • Dependent-care
under Armed Force Health allowances Housing) military assistance program
Professions Scholarship • BAS (Basic Allowance for benefits • Defense Counsel
and Financial Assistance Subsistence) Services
Program payments • Housing and cost-of-living • Legal assistance
• Disability, including allowances abroad paid by • Medical/dental care
payments received for the U.S. Government or by
injuries incurred as a direct • Commissary/
a foreign government exchange discounts
result of a terrorist or military • OHA (Overseas Housing
action • Space-available
Allowance) travel on government
• Disability severance payments
aircraft
• Group-term life insurance
• Uniforms furnished
• Professional education to enlisted personnel
• ROTC educational and
subsistence allowances
• State bonus pay for service
in a combat zone
• Survivor and retirement
protection plan premiums
• Uniform allowances
• Certain loan payments
made by an employer after
March 27, 2020, and before
January 1, 2026, of principal
or interest on certain qualified
education loans (Limited to
$5,250 annually).
Death • Burial services Moving • Dislocation (limited to
allowances • Death gratuity payments to allowances actual moving expenses)
eligible survivors • Military base realignment and
• Travel of dependents to closure benefit (Limits apply.
burial site See 42 U.S.C. 3374(c))
• Move-in housing
• Move household and
personal items
• Moving trailers or mobile
homes
• Storage
• Temporary lodging and
temporary lodging expenses

D-4
 How/Where to Enter Income

Federal Section>Income

To go directly to a specific
form, use the box to enter the form
number or name.
See Tab O, Using TaxSlayer® Pro
Online, for entries.

If the taxpayer received a state re­

fund in 2022 and itemized deductions
for 2021 that included a deduction for
state income tax, select the State and
Local Refunds option and complete
the State Refund worksheet.

Select Quick File from this

pull-down menu next to the
taxpayer's name to create a list of
entry screens for this return.

Taxpayers who receive

an incorrect Form 1099­
G for unemployment
benefits they did not receive
should contact the issuing state
agency to request a revised Form
1099-G showing they did not
receive these benefits. Taxpayers
who are unable to obtain a
timely, corrected form from states
should still file an accurate tax
return, reporting only the income
they received.

You can go directly to the

Income section from the quick link.

To enter unemployment Alimony received pursuant to a divorce or To enter Taxable Scholarship,

compensation from Form 1099-G, separation instrument executed on or before Prisoner Earned Income, or Foreign
select Begin on the unemployment December 31, 2018 is included as income on the Compensation - select Other
line. If unemployment benefits are return. For divorces after December 31, 2018, Income then choose Other Com­
repaid in the same year, enter the alimony is not included as income on the return. pensation. In certain situations,
amount in Repayment of The alimony is also not included in income if the taxpayers may wish to e-file a $1
Unemployment. To enter current instrument is modified after December 31, 2018, AGI return. To e-file, enter $1 as
year unemployment, select and the modification expressly provides that the other income. Go to Income>Less
Add or Edit a 1099-G. amendments made by the Tax Cuts and Jobs Common Income>Other Income Not
Act, Section 11051, apply to the modification. Reported Elsewhere and describe
as "IN ORDER TO E-FILE."

D-5
 Form W-2 Instructions

Federal Section>Income> W-2; or Keyword “W”

If the taxpayer has not received a W-2 from all employers by the end of January, they should contact
their employer for the missing copy.

If a Form W-2 can’t be obtained from the employer,

select the box to indicate this is a substitute W-2.
TaxSlayer will generate a Form 4852, Substitute for
Form W-2, Wage and Tax Statement. The taxpayer
will need to provide total income and withholding from
their year-end pay stub. See Publication 5396-A.

Indicate if W-2 is for Taxpayer or Spouse. The software

will not allow you to proceed until this is completed.

Compare the taxpayer’s address to Form W-2

address. If the address on the W-2 is different, correct
If the taxpayer has an ITIN, you will be prompted to the W-2 address here to match the original Form W-2.
enter the ITIN or SSN as shown on the original W-2. This won’t change the tax return address.

A taxpayer with multiple Forms W-2 could possibly have a different address on several 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.

D-6
 Form W-2 Instructions (continued)

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.

If there is an entry in Box 10,

Form 2441, Child and Dependent
Care Expenses, 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.

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

If the taxpayer earned tips that weren’t reported to the employer, enter in the Unreported Tips box.
This will add Form 4137, Social Security and Medicare Tax on Unreported Tip Income, 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.

D-7
 Form W-2 Instructions (continued)

For Boxes 12 and 14, 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, M, N, P, Q, T,
W, AA, BB, EE).

Be sure to select the correct

items for Box 13 as indicated on
Forms W-2. This is important in
calculating the deductibility of IRA
contributions.

If statutory employee is marked,

employment taxes are withheld by
Select from the drop-down list for A taxpayer may choose to include
the employer, but the taxpayer will
Box 14. If the amount is eligible for the qualified Medicaid waiver payments in the
report income and deduct expenses
retirement saver’s contributions credit, calculation of earned income for the EIC and
using Schedule C. Re-enter income
select Retirement (Not in Box 12)- the ACTC.These are payments received for
as statutory income on Schedule C
Carry to Form 8880. To qualify for this providing nonmedical support services under
Income screen. Also enter related
treatment, the contribution must be a a plan of care to someone in the taxpayer’s
expenses. Do not mix statutory
voluntary, not a mandatory, contribution. home. If these payments were incorrectly
employee income with other income
Employers use this box for any other reported in box 1 of Form(s) W-2, enter the
on the same Schedule C.
information that they want to give to their amount again in the Medicaid Waiver Pay­
employees. If none of the drop-down ment box. For more information about these
options apply, select Other and enter payments, see the next page. Third party pay, Box 13, is tax­
the amount. able income and reported in Box 1.

If the Form W-2 shows withholding from more than one state, select 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 J
Nontaxable sick pay (If Box 1 is blank, do not include on
B Uncollected Medicare tax on tips return unless there is withholding)
C Taxable cost of group term life insurance over $50,000 included P Excludable moving expense reimbursements paid directly
in boxes 1, 3 (up to social security wage base) & 5. to employee
D Elective deferrals to a section 401(k) cash or deferred arrangement
Q Nontaxable combat pay (Military certification)
E Elective deferrals under a section 403(b) salary reduction R Employee Contributions to MSA, Out of Scope
agreement T Adoption benefits (Out of Scope)
G Elective deferrals and employer contributions (including W Employer contributions (including amounts the employee
nonelective deferrals) to a section 457(b) deferred contributes through a cafeteria plan) to employee’s health
compensation plan savings account
H Elective deferrals to a section 501(c)(18)(D) tax-exempt AA Designated Roth contributions under a section 401(k) plan
organization plan. Included in Box 1 as wages, but see BB Designated Roth contributions under a section 403(b) plan
Pub 525 Taxable and Nontaxable Income instructions on how DD Cost of employer-sponsored health coverage (not taxable)
to deduct on Form 1040. EE Designated Roth contributions under a governmental
section 457(b) plan
Codes D through H, S, Y, AA, BB, and EE also indicate elective (voluntary) contributions which qualify for retirement savings credit.
See Tab G, Nonrefundable Credits. For less common Box 12 codes, see Form W-2.

D-8
 Entering Medicaid Waiver Payments
A taxpayer may choose to include qualified Medicaid waiver payments in the calculation of earned income
for the EIC and the ACTC. The taxpayer may include qualified Medicaid waiver payments in earned income
even if the taxpayer chooses to exclude those payments from gross income.
• A taxpayer may not choose to include or exclude only a portion of qualified Medicaid waiver payments.
Either include all or none of the qualified Medicaid waiver payments for the taxable year in earned
income.
• If the taxpayer chooses to include qualified Medicaid waiver payments in earned income, that amount will
be included in the calculation for both the EIC and the ACTC.

Qualified Medicaid waiver payments reported on Form W-2, box 1

In the TaxSlayer software, complete the Form W-2 as provided. Enter the amount of qualified Medicaid
waiver payments received in the Medicaid Waiver Payment box at the bottom of the screen. Check the
box just above the payment box if the taxpayer chooses to include the amount in the calculation of earned
income for the EIC and the ACTC.

Qualified Medicaid waiver payments that are wages not reported on Form W-2,
box 1
The payments are already excluded from gross income and earned income. The tax preparer should
complete the tax return as usual if the taxpayer does not choose to include qualified Medicaid waiver
payments in earned income. A taxpayer who chooses to include qualified Medicaid waiver payments in
earned income must report the payments as wages on line 1. In TaxSlayer, complete the Form W-2, and
include the Medicaid Waiver payment amount in box 1. (In some cases, this amount can be found in box 14).
Then delete the entries that will auto-fill in boxes 3, 4, 5 and 6.
Include the same amount in the Medicaid Waiver Payment box that appears below box 14 in the software. If
beneficial to the TP, check the box just above the Medicaid Waiver Payment box that will include the amount
in Earned Income for the purposes of figuring the EIC.
This process will enter the amount on Line 1 of Form 1040, and subtract it back out on Line 8 so there will
be no tax effect. If the amount is included in earned income, an EIC will be calculated if the TP is otherwise
eligible.

Qualified Medicaid waiver payments reported on Form 1099-NEC or 1099-MISC

and the taxpayer is in the business of providing home health care services
Complete a Schedule C and enter the Form 1099-MISC as provided. Enter the amount of qualified Medicaid
waiver payments received in the Medicaid Waiver Payment box at the bottom of the screen. Check the
box just above the payment box if the taxpayer chooses to include the amount in the calculation of earned
income for the EIC and the ACTC.

Qualified Medicaid waiver payments reported on Form 1099-MISC and the

taxpayer is not in the business of providing home health care services
These payments are considered “other income” and are not reported on a Schedule C. Complete the Form
1099-MISC as provided. Enter the amount of qualified Medicaid waiver payments received in the Medicaid
Waiver Payment box at the bottom of the screen. These payments are not subject to employment taxes and
are not earned income, because they are not employee compensation or earnings from self-employment.

Qualified Medicaid waiver payments may be excluded from gross income only when the care provider
and the care recipient reside in the same home. When the care provider and the care recipient do not
live together in the same home, the Medicaid waiver payments may not be excluded from gross income.
See Volunteer Tax Alert VTA 2020-03 (March 3, 2020).

Refer to the previous page and the Form 1099-MISC page, later in this tab for screenshots of where to
enter Medicaid Waiver payment and optionally include in earned income.

D-9
 Interest Income

Federal Section>Income>1099-DIV, INT, OID>Interest Income; or Keyword “INT”

If the aggregate value of for­

eign financial accounts exceeds
$10,000 at any time during the
year, the FinCEN Report 114 is
required to be filed electronically
with Treasury, and the return is
Out of Scope.

If U.S. Savings Bond interest

is used to pay for higher educa­
tion expenses, return is Out of
Scope.

Form 1099-OID interest is

treated like other interest.
Boxes 5 and 10 are in scope.

Return is Out of
Scope if there is a
FATCA filing requirement,
or if an alternative minimum
OOS tax is generated on Form
6251. This may occur with
a large amount of dividends
or interest. Return is also
Out of Scope if Form
1099-OID adjustment is
needed, no form was
received, or there is an
entry in Box 6, Acquisition
premium.

D-10
 Interest Income (continued)

Enter each Form 1099-INT

separately.

Enter the name of payer.

Don’t use punctuation. Payer's
TIN and address may be
entered, but is not required.

Enter the taxable interest

paid in Box 1. This doesn’t
include interest shown in Box 3.

The early withdrawal

penalty is carried as an
adjustment to Schedule 1.

Enter any taxable amount

from Box 3 on the Interest
on U.S. Savings Bonds and
Treasury obligations line.

A warning may appear if

tax withheld is more than 40%
of Box 1. If your entries are
correct, ignore the warning.

If 1099-INT shows foreign

tax paid, enter it in Box 6 if the
taxpayer is eligible to use the
Simplified Limitation Election.
See Tab G, Nonrefundable
Credits, for details.

Taxpayers who received less than $10 in interest from one payer may not receive a Form 1099-INT.
This income must still be reported. Use the Interest Income Screen as if entering Form 1099-INT
information.

D-11
 Interest Income (continued)

Enter the amount of tax-exempt interest

from Box 8 of Form 1099-INT.

The entry for “Specified Private Activity

Bond” will automatically carry to Form 6251,
Alternative Minimum Tax, when applicable.
If the entry into Other Taxes on Form 6251
results in an alternative minimum tax (AMT),
the return is Out of Scope.

Bond Premium – If less than the amount

OOS if greater than Box 3
reported as interest in Box 1 – In Scope. If
greater than the amount reported as interest
in Box 1 – Out of Scope.
OOS if greater than Box 8
IMPORTANT – Entries are transferred
directly when a state return is added. If state
tax law treats the interest differently, include
the exempt interest amount and select the
state from the drop down list. Generally,
interest on U.S. government obligations
(such as savings bonds, treasury bonds/bills/
notes) is taxable on the federal return but
isn’t taxable on the state return.

Nominee interest – Interest transferred

to another person – Out of Scope.

Accrued interest – Interest paid to seller

at time of purchase – Out of Scope.

If any of the tax exempt interest isn’t

exempt from state taxes, select the Add/Edit
button to add a Taxable State Interest item.
Interest on out-of-state municipal bonds isn’t
taxable on the federal return but is generally
taxable on the state return.

Enter the state, owner, and amount and

select Continue To Next Step.

Always enter tax-exempt interest or dividend income. This may affect the amount of Social Security
income that is taxable and the amount of Premium Tax Credit.

Interest on in-state municipal bonds is generally not taxable on the federal and state returns.

Income from a reverse mortgage is not considered a taxable event because it is a loan.

D-12
 Seller Financed Mortgage Interest
Federal Section>Income>1099-DIV, INT, OID>Seller Financed Interest Income; or Keyword “INT”

Must have identification number of payer to e-file the return.

Out of scope

Out of scope

D-13
 Dividend Income (Form 1099-DIV)

Federal Section>Income>1099-DIV, INT, OID>Dividend Income; or Keyword “D”

Enter each Form 1099-DIV separately.

Enter the name of payer. Don’t use punctuation.

In the capital gain line, enter Box 2a total capital

gain distributions from a regulated investment
company (mutual fund) or real estate investment
trust. This entry flows to Schedule D.

A dividend reinvestment plan (DRP) is when the cash dividend is automatically used to buy more
shares. The dividend is income and included on Form 1099-DIV. The payer/broker will keep track of
the new purchase.

D-14
Dividend Income (Form 1099-DIV) (continued)

Out of scope

Out of scope

Nondividend distribution is a
return of basis, not taxed until all
cost is recovered. The taxpayer
must reduce their cost by these
distributions at the time of sale.
Once all costs are recovered,
report as capital gain.

Box 5 amount is carried

to qualified business income
deduction. No additional entry
needed.

An entry in Foreign tax

withheld (Box 7) will flow as a
foreign tax credit to Form 1040.

Only the simplified

Out of scope limitation method
is in scope. If total
foreign taxes exceed $300
Out of scope ($600 if filing joint), the
simplified method cannot
be used. In that case Form
1116, Foreign Tax Credit, is
required, with International
certification only. See Tab
G, Nonrefundable Credits
for Foreign Tax Credit
information.

On the amount of interest on

U.S. Savings Bonds and Treasury
obligations line, enter dividends
from federal bond funds which
are fully taxable on the federal
return but tax-exempt on the state
return.
Out of scope

D-15
 State and Local Refund Worksheet
Federal Section>Income>Form 1099-G Box 2; or Keyword “G”

Use this worksheet only if the taxpayer itemized deductions last year claiming state income taxes as a
deduction and received a state or local income tax refund.

None of your refund is taxable if, in the year you paid the tax, you either:
1. didn’t itemize deductions, or
2. elected to deduct state and local general sales taxes instead of state and local income taxes.

You may need to look up the sales tax that could have been deducted using the IRS sales tax calculator.
If the taxpayer’s prior
year state and local
taxes were limited
to $10,000, the current year
state and local refund may
not be taxable. Complete
the worksheet to determine
taxability.

Use this worksheet to

determine the portion of the
taxpayer’s prior year state refund
that is considered taxable in the
current year. Use a copy of the
taxpayer’s previous year return to
enter all amounts in the spaces
provided. The taxable portion
will be included on the return as
taxable income.

Include state tax withheld and

state estimated payments made
during 2021.

Enter any calculated sales tax

not deducted on your prior year
Schedule A. If the amount is not
shown on last year’s
return, you can go to the Sales Tax
Deduction Calculator on IRS.gov to
determine the amount.

If last year’s filing status was

MFS, indicate if spouse itemized
deductions.

See Instructions for Recipient for Box 2 on Form 1099-G amounts which may appear in the
unnumbered box beside Box 9. Amounts in this unnumbered box are interest and are in scope.
Report it as interest income on the tax return.

D-16
 Schedule C Self-Employment Income
Federal Section>Income

Income received on Form

1099-MISC may not include
self-employment income. See
Less Common Income, later in
this tab.

If any of the self-employ­

ment income is reported on
Form 1099-NEC, Nonemployee
Compensation, select Form
1099-NEC first. Self-employ­
ment income reported on a
Form 1099-NEC will be in Box
1, Nonemployee compensation.

Select Profit or Loss

From A Business (Schedule
C) to enter self-employment
income that isn’t reported on a
Form 1099-NEC. This would in­
clude income reported on Form
1099-K, Payment Card and
Third Party Network Transac­
tions, as well as all other cash
and any other income received
related to the business activity.
Also, enter expenses related to
the self-employment income.

A taxpayer who received less than $600 in income from one payer may not receive a Form 1099 ­
NEC or Form 1099-K. This income must still be reported. See Publication 334, Tax Guide for Small
Business, and Publication 525, Taxable and Nontaxable Income, for additional information.

For taxpayers who have earnings as a notary, review the Instructions for Schedule SE, Self-
Employment Tax, for reporting instructions. In TaxSlayer, make the following entries:
• Report the notary income on a Schedule C.
• Visit the Schedule SE menu in the Other Taxes section and enter the amount of exempt
notary income in the “Enter the exempt notary income” input field.

Gig economy workers such as rideshare drivers and delivery drivers can find tax information specific
to their work at the IRS Gig Economy Tax Center (www.irs.gov/businesses/gig-economy-tax-
center)

D-17
 Form 1099-NEC

Federal Section>Income

Self employed taxpayers will include

amounts from Box 1 on Schedule C.
Taxpayers with an amount on Form 1099­
NEC, Box 1, who are not an employee or
self-employed, do not need to complete
Schedule C but should report this income
as Other Income on Schedule 1. In that
case, select Other Income in the Federal
Section and then select Other Income
Not Reported Elsewhere. Taxpayers with
nonemployee compensation that is related
to a hobby (an activity that isn't
engaged in for profit) are Out of Scope.
See Publication 525, Taxable and Nontaxable
Income, for more information.

Add a Form 1099-NEC in TaxSlayer

for each 1099-NEC received.

Newspaper carriers under age 18 are

only subject to self-employment tax if
they must deliver or distribute newspapers to
a point for delivery or distribution. Otherwise,
earnings are generally not subject to self-
employment tax for a newspaper carrier who
is under age 18.

D-18
 Connecting the Form 1099-NEC to Schedule C

Link the information from the

1099-NEC to Schedule C by
selecting the Schedule C button
and then selecting Continue.

If the taxpayer has more than one business, you must use a separate Schedule C for each.

Check to ensure the Form 1099-NEC is carried to the correct section of Form 1040.

If there is more than one Form

1099-NEC for the same business,
ensure that they are all linked
to the same Schedule C. To link
a second Form1099-NEC click
on Add another Form 1099­
NEC, enter data, and select
Continue. On the next screen
select Form C, select Report
this income on a Schedule
C I already created for my
business then choose business
description and Continue.

If the Carried To section says “None” the income is not being reported on the return. Select Edit and
link to the appropriate Schedule.

D-19
 Form 1099-K
Taxpayers will receive Form 1099-K, Payment Card and Third-Party Network Transactions by January 31st
if, in the prior calendar year, they received payments:
• From payment card transactions (e.g., debit, credit, or stored-value cards), AND/OR
• In settlement of third-party payment network transactions above the minimum reporting thresholds as
follows:
For returns for calendar years prior to 2022: For transactions made after March 11,
• Gross payments that exceed $20,000, AND 2021, The American Rescue Plan Act of
2021 clarifies Form 1099-K reporting by
• More than 200 such transactions
third-party settlement organizations applies only for
For returns for calendar years after 2021: transactions for the provision of goods or services
• Gross payments that exceed $600, AND settled through a third-party payment network.
• Any number of transactions

CORRECTED (if checked)

FILER’S name, street address, city or town, state or province, country, ZIP FILER’S TIN OMB No. 1545-2205
or foreign postal code, and telephone no.
Payment Card and
Combine the Box 1a and Box 1b amounts from PAYEE’S TIN Form 1099-K Third Party
all 1099-Ks received for any one business and (Rev. January 2022) Network
1a Gross amount of payment Box 1a shows the aggregate gross
include in TaxSlayer with any cash income on card/third party network Transactions
transactions amount of payment card/third party network
For calendar year
Schedule C. $ 20
1b Card Not Present
transactions made to you through the PSE
2 Merchant category code
transactions during the calendar year. Copy B
Check to indicate if FILER is a (an): Check to indicate transactions $ For Payee
reported are:
Payment settlement entity (PSE) Payment card 3 Number of payment 4 Federal income tax
Electronic Payment Facilitator
transactions
Box 1b shows the aggregate
withheld
gross
This is important tax
information and is
(EPF)/Other third party Third party network $
PAYEE’S name 5a January
amount
5b February
of all reportable payment transactions
being furnished
the IRS. If you are
to

$ $made through the PSE during the

required calendar
to file a
return, a negligence
5c March year
5d April where the card was notpenaltypresent at the
or other
Street address (including apt. no.) $ $time of the transaction or the cardonnumber
sanction may be
imposed you if was
5e May
keyed into the terminal.
5f June taxable income
results from this
$ $ transaction and the
5g July 5h August IRS determines that it
Taxpayers may receive a Form 1099-K representing $ the total$ dollar amount of total reportable
City or town, state or province, country, and ZIP or foreign postal code has not been
reported.
payment transactions. This may not be the5i amount September you should report as income, as it may not
5j October
$ $
include all the receipts and it may include items that are not included in receipts (such as sales tax).
PSE’S name and telephone number
5k November 5l December
You should consider the amounts shown on Form$ 1099-K, along with $
all other amounts received, when
calculating gross
Account number receipts for the taxpayer’s income
(see instructions) tax return.
6 State 7 State identification no. 8 State income tax withheld
$
Taxpayers who receive a Form 1099-K that does not belong to them should contact the $Payment Settlement
Entity (PSE).
Form 1099-K If there(Keep
(Rev. 1-2022) is an error
for your on the form, request
records) a corrected Form
www.irs.gov/Form1099K 1099-K
Department from
of the the- Internal
Treasury PSE.Revenue
Taxpayers
Service should
keep a copy of any corrected Form 1099-K with their records as well as any correspondence with the PSE.

If taxpayers shared a credit card terminal with another person or business, the Form 1099-K they receive will
include payment card transactions belonging to the person or business that shared the terminal, in addition to
their own payments. Where required, the taxpayer should file and furnish the appropriate information return
(e.g., Form 1099-K or Form 1099-MISC) for each person or business with whom they shared a card terminal. In this
case, the return is Out of Scope.

General FAQs on New Payment Card Reporting Requirements

(www.irs.gov/payments/general-faqs-on-new-payment-card-reporting-requirements)
Understanding Your Form 1099-K
(www.irs.gov/businesses/understanding-your-form-1099-k)
Gig Economy Tax Center
(www.irs.gov/businesses/gig-economy-tax-center)

D-20
 Schedule C - Menu

TaxSlayer Navigation: Federal Section>Income>Form 1099-NEC; or Keyword “SC”

Businesses with inventory, employees, contract labor, depreciation, business use of the home, expenses
over $35,000 or a net loss are Out of Scope.

Complete Basic Information

About your Business and
Questions About the Operation of
Your Business for every Schedule C.

Select Income to enter any

income for the business that was
not reported on Form 1099-NEC,
Out of scope such as cash income or income
from a Form 1099-K.

Most business expenses are

entered in the General Expenses
section. See Pub 535 for more
Out of scope detail on business expenses.

See Schedule C - Car and

Truck Expenses, later in this tab

Select Other expenses to

Out of scope
enter any expenses not listed
under General Expenses.

Qualified Business Income

Deduction - See Tab F

If the business accepted credit or debit cards in payment or received payments via 3rd party network, it may
receive Form 1099-K Payment Card and Third Party Network Transactions (see note below).
Taxable income reported on Form 1099-K is in scope if received for self-employment income (such as
shared-economy driving). Make sure the total shown on the 1099-K is included, along with any cash
income, on Schedule C income section. A Form 1099-K received for rental income is in scope for
Military certification only. Forms 1099-K received for any other type of taxable income are Out of Scope.

Income from the manufacture, distribution, or trafficking of controlled substances (such as marijuana)
is Out of Scope.

D-21
Schedule C - Questions About Your Business

To be in scope, the Accounting Method

must be Cash Method 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, Depreciation and Amortization).

Select Not Applicable for the Inventory

Method.

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.

D-22
 Schedule C - General Expenses
Federal Section>Income>Profit or Loss from a Business>General Expenses;
or Keyword “SC”
All allowable and documented expenses must be reported on Sch C. If any deductible expenses
are Out of Scope, the entire return is Out of Scope and taxpayer should be referred to professional
preparer. There is no option to disregard allowable expenses.

The following expenses are Out of Scope:Contract Labor, Depletion, Employee benefit program,
Mortgage interest, Pension and profit sharing, and Wages. Health Insurance is in scope for Self-
Employed Health Insurance deduction only.
Taxpayers may elect to
apply a de minimis safe
harbor to amounts up to
$2,500 per invoice or item paid
to acquire property used in the
taxpayer’s trade or business.
Out of scope See Publication 535, Business
Expenses, for details.

Out of scope Use the TaxSlayer

Out of scope Schedule C entry screen
Health Insurance box
for this Self-Employed Health
Insurance Deduction. See Tab E,
Adjustments, for information about
the self-employed health insurance
Out of scope deduction. Calculations with Premium
Tax Credit are Out of Scope with
respect to the self-employed health
insurance deduction.
Do not enter allowable LTC premiums
Out of scope here. Enter on the Health Insurance line.

In 2022, businesses can claim 100% of

their food or beverage expenses paid to
restaurants. See Notice 2021-25
for details.
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. Taxpayers can deduct the cost of their own education expenses (includ­
ing certain related travel) related to the trade or business. They must be able to show the education maintains or
improves skills required in their trade or business, or that it is required by law or regulations for keeping their license to practice,
status, or job.

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

Rentals or leases of equipment (including vehicles) for more than 30 days are Out of Scope. If the
taxpayer uses the standard mileage rate method for business miles of a leased vehicle, the return
remains in scope.
Expenses that aren’t deductible include bribes and kickbacks; charitable contributions; demolition
expenses or losses; and dues paid to business, social, athletic, luncheon, sporting, airline, and hotel clubs.

D-23
 Schedule C - Car and Truck Expenses
Federal Section>Income>Profit or Loss from a Business>Car and Truck Expenses; or Keyword “SC”

Using actual expense deductions, such

as gas, repairs, and depreciation, is
Out of Scope.

Enter a brief description of the vehicle;

for example, 2008 Ford.

Business miles: Miles related to the

business activity that aren’t commuting
miles. For-hire drivers who have mileage in
between customer pick-ups can claim the
mileage as a business expense.

Commuting miles: Miles driven each day

from home to the first business location and
driven from the last business location back
home.

Other: Miles driven for personal purposes.

The total of Business, Commuting and Other miles should add up to the total miles on the vehicle for
the year.

Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses, for help determining
deductible business mileage and nondeductible commuting mileage.
The car and truck expense deduction will automatically be calculated using the standard mileage rate,
based on the number of business miles entered. The rate from January 1 through June 30 was 58.5
cents per mile. From July 1 through December 31, the rate was 62.5 cents per mile. In addition, the
taxpayer can deduct the cost of business parking and tolls. Commuting and other personal automobile expenses
such as depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil,
insurance, parking tickets, traffic fines, or vehicle registration fees are not deductible.

If you are self-employed and use your vehicle in your business, you can deduct the business part of
state and local personal property taxes on motor vehicles on Schedule C. Enter this on the Taxes line
on the Schedule C Expenses screen. If you are self-employed and use your vehicle in your business,
you can deduct that part of the interest expense that represents your business use of the vehicle. You cannot
deduct the part of the interest expense that represents your personal use of the vehicle. Enter the deductible
amount on the Other Interest line on the Schedule C Expenses screen.

If you are an employee, you cannot deduct any interest paid on a vehicle loan. This applies even if you
use the vehicle 100% for business as an employee.

The standard mileage deduction includes depreciation, gas/oil, repairs, insurance, and nontax portion
of registration, but not parking, tolls, or business part of registration tax. Taxpayer should have a
written record (log or appointment book).

D-24
 Schedule C - Car and Truck Expenses (continued)
Self-employed taxpayers can use this chart. Don’t use this chart if your home is your principal place of
business (Out of Scope). This chart can also be used for Armed Forces reservists (Military Certification
only), fee-based state or local government officials, and employees with impairment-related work
expenses. Employees who do not fit into one of the listed categories may not use this chart.

Home: The place where you reside. Transportation expenses between your home and your main
or regular place of work are personal commuting expenses.
Regular or main job: Your principal place of business. If you have more than one job, you must
determine which one is your regular or main job. Consider the time you spend at each, the activity
you have at each, and the income you earn at each.
Temporary work location: A place where your work assigment is realistically expected to last
(and does in fact last) one year or less. Unless you have a regular place of business, you can only
deduct your transportation expenses to a temporary work location outside your metropolitan area.
For overnight travel expenses, see IRS Topic 511 Business Travel Expenses
Second job: If you regularly work at two or more places in one day, whether or not for the same
employer, you can deduct your transportation expenses of getting from one workplace to another.
If you do not go directly from your first job to your second job, you can deduct the transportation
expenses of going directly from your first job to your second job. You cannot deduct your
transportation expenses between your home and second job on a day off from your main job.

D-25
 Schedule D Capital Gains and Losses

Income>Capital Gain and Losses>Capital Gain and Loss Items; or Keyword “D”

Enter all capital transactions, such as sale of stock and loss

carryover here. Information regarding sale of stock is found on
Form 1099-B, Proceeds From Broker and Barter Exchange
Transactions, or similar statement, such as a broker's list of
consolidated transactions. See the capital loss carryover
worksheet from the taxpayer's prior year return for the capital
loss carryover amount(s). The software will carry the transactions
to the appropriate Form 8949, Sales and Other Dispositions of
Capital Assets. The totals for each Form 8949 will automatically
carry to the correct line of Schedule D, Capital Gains and Losses.

Transactions involving digital assets (virtual currency), such as a disposition, sale, exchange or
transfer, are Out of Scope. However, the tax return is in scope if the taxpayer is able to select No
to the digital asset question on Form 1040. See Scope of Service in this publication and irs.gov/
virtualcurrencyfaqs

Capital losses that exceeded the $3,000 limit

deduction ($1,500 if married filing separately) in
prior years can be carried forward and used in future
years until the capital loss is completely used up.
If the taxpayer has a short-term or long-term capital
loss carryover from the prior year, enter on the
appropriate line.

Compare fields automatically filled with carryover amounts to the prior year return. Also, remember to
print the Capital Loss Carryover Worksheet for the taxpayer to keep as part of their records.

D-26
 Entering Capital Gains and Losses
If you check the box for Alternate Option for Date Acquired or Date Sold, a pick list will appear. Choose the
correct option for the transaction.

If a block of stock ( or similar property) was acquired through several different purchases, the sale
may be reported on one row.

Check the Alternate Option box and select one of

three options: Various - Short Term, Various - Long
Term or Inherited - Long Term.

Short term = 1 year or less

Long term = more than 1 year

If various (short or long term) is selected as an Alternate Option

for Date Acquired, check Alternate Option under Date Sold
but do not select an item from the drop menu or enter a date.
Check M as the Adjustment Code.

If investment property is inherited, the

capital gain or loss is treated as long-term.
This is true regardless of how long the
property is held.

Check the box for Alternate Option for

Date Acquired and select Inherited - Long
Term.

Form 1099-B Box 1b

Form 1099-B Box 1c

Form 1099-B Box 1d

Choose the cost basis type that

applies to this transaction.

D-27
 Entering Capital Gains and Losses (continued)

Form 1099-B Box 1e or provid­

ed by taxpayer. If the statement or
taxpayer does not provide cost basis,
historical data can be used. See
Publication 551, Basis of Assets, for
details. If basis can’t be determined,
use zero. Special rules apply to prop­
erty inherited from a decedent who
died in 2010. If the taxpayer cannot
provide the basis for the property,
refer the taxpayer to a professional
tax preparer. For more information,
refer to Historical: Publication 4895,
Tax Treatment of a Property Acquired
from a Decedent Dying in 2010 (Rev.
October 2011) under Prior Year Forms
and Instructions on IRS.gov.

For most transactions, no ad­

justment to gain or loss is needed. If
an adjustment to basis or net capital
gain is required, enter the adjustment
amount and mark the reason(s) from
the list. You may need to enter an
adjustment if the basis provided is
incorrect, another situation applies
that requires a change to the basis, or
if the taxpayer is able to exclude some
or all of the capital gain.

If summarizing transactions,
check the box for Reporting Multiple
Transactions on a Single Row. You
may leave date sold blank when
checking box M.

Wash sales are in scope only

if reported on Form 1099-B or on a
brokerage or mutual fund statement.
Enter the code W amount as a
positive number.

For securities reported on a brokerage statement as “Worthless" use the Alternate Option and
“Worthless” for the date sold. If securities have any value (even $1) they are not worthless.

D-28
 Entering Capital Gains and Losses (continued)
Exception to Entering Each Transaction on a Separate Row
When a taxpayer’s Form 1099-B includes so many transactions that it isn’t practical to enter each one into
TaxSlayer, use the following procedure.
1. Divide the transactions into four categories:
a. Short term transactions with basis reported to the IRS - categorized as “Box A.”
b. Short term transactions with basis not reported to the IRS - categorized as “Box B.”
c. Long term transactions with basis reported to the IRS - categorized as “Box D.”
d. Long term transactions with basis not reported to the IRS - categorized as “Box E.”
2. Enter the total of each category on the capital gain entry screen.
3. If any of the transactions requires an adjustment to the reported basis, select the reason from the check
box that includes that transaction.
4. If there are transactions with basis not reported to the IRS, the broker’s list of transactions must be
submitted as an attachment to the tax return. Submit the document using either of the following two
methods:
a. Electronic: Scan the pages and save as a PDF. Attach the PDF to the electronic return prior to
creating the e-file.
b. Hardcopy: Make a photocopy and attach it to Form 8453, U.S. Individual Income Tax Transmittal
for an IRS e-file Return, to be mailed to the IRS Service Center in Austin, Texas.

Common Items Found on Brokers’ Statements

Look for all of the following items: (You may or may not find them all.)
• 1099-INT (Summary-NOT detail)
• 1099-DIV (Summary-NOT detail)
• 1099-B (Summary and Detail) and “Cost basis” or “Transaction detail” for sale of stock: Input as capital
gains or losses.
• If there are dividends from mutual funds, look for an insert or chart that says what percentage came from
federal government interest: Enter on the dividend input screen and select your state (check your state
rules).
• The chart should also show what percent came from municipal bonds from each state: Input exempt
interest from states other than yours by selecting tax-exempt interest income and making the state
adjustment (check your state rules).
• Foreign taxes paid: Enter foreign taxes paid on the dividend input screen only if all foreign taxes relate to
passive income and the total on all tax statements (1099, etc.) is less than $300 ($600 MFJ); otherwise,
in scope only if certified in International.

Net losses greater than $3,000 ($1,500 if MFS) will carry forward to future tax years.

D-29
 Adjustments to Basis in TaxSlayer
Enter Capital Gain/Loss Transactions in TaxSlayer
For most transactions, you do not need to adjust the basis. You may need to adjust the basis if
you received a Form 1099-B or 1099-S (or substitute statement) that is incorrect, are excluding or
postponing a capital gain, have a disallowed loss, or certain other situations. Details are in the table below.

In Scope Transactions
Select from the Adjustment Code that will
IF THE… THEN… dropdown list appear on Form 8949
Taxpayer received a Form Enter the correct basis and Form 1099-B with Basis
1099-B (or substitute state- make no adjustment if the basis in Box 3 is Incorrect &
ment) and the basis shown in was not reported to IRS Correct Basis is Lower or
box 3 is incorrect or not report- Higher
ed to the IRS Enter the basis shown on Form
1099-B (or substitute statement)
B
and correct the error by entering
an adjustment. Use Worksheet
for Basis Adjustment in Column
(g) in Instructions for Form 8949,
Sale and Other Dispositions of
Capital Assets.
Taxpayer received a Form Enter the proceeds as reported Form 1099-B with Basis
1099-B or 1099-S (or substitute in Box 1d. Enter as an adjust- in Box 3 is Incorrect &
statement) and there are selling ment using a minus sign for Correct Basis is Lower or
E
expenses that are not reflected any selling expenses paid (and Higher
on the form or schedule… that are not reflected on the
form or statement received).
Taxpayer sold or exchanged Report the sale or exchange as if Exclude Some/All of the
their main home at a gain, must the taxpayer were not taking the Gain from the Sale of Your
report the sale or exchange exclusion. Then enter the amount Main Home H
and can exclude some or all of of excluded (nontaxable) gain as
the gain… a negative number.
Taxpayer has a nondeductible Report the sale or exchange Nondeductible loss other
loss other than a loss indicated and enter the amount of the than a Wash Sale*
by code W… nondeductible loss as an
L
adjustment. See Nondeductible See Tab R, Glossary and
Losses in the Instructions for Index, for the
Schedule D. definition of wash sale.
Taxpayer reports multiple Enter -0- as the adjustment Reporting Multiple Trans-
transactions on a single row amount unless an adjustment actions on a Single Row
as described in Exception to is required because of another M
Reporting each Transaction on code.
a Separate Row…
Taxpayer received a Form Enter transaction with correct Form 1099-B and Type of
1099-B (or substitute state- term (long or short). Enter -0- Gain/Loss indicated in Box
ment) and the type of gain or as the adjustment amount un­ 2 is incorrect T
loss (short term or long term) less an adjustment is required
shown in box 1c is incorrect)… because of another code.

D-30
 Adjustments to Basis in TaxSlayer (continued)

Select from the Adjustment Code that will

IF THE… THEN… dropdown list appear on Form 8949
Taxpayer has a nondeductible Report the sale or exchange Nondeductible loss from a
loss from a wash sale* … and enter as a positive amount Wash Sale*
the nondeductible loss as an (See Tab R, Glossary and W
adjustment. Index, for definition of
wash sale)
Taxpayer has an adjustment Report the appropriate Other adjustment
not explained earlier in this adjustment amount. O
column…

* Wash sales are in scope only if reported on Form 1099-B or on a brokerage or mutual fund statement.

Out of Scope Transactions

IF the… Adjustment Code
Taxpayer received a Form 1099-B showing accrued market discount
D
in box 1f
Taxpayer received a Form 1099-B or 1099-S (or substitute statement)
N
as a nominee for the actual owner of the property.
Taxpayer sold or exchanged qualified small business stock and can
Q
exclude part of the gain.
Taxpayer can exclude all or part of your gain under the rules ex­
plained in the Schedule D instructions for DC Zone assets or qualified X
community assets.
Taxpayer is electing to postpone all or part of their gain under the
rules explained in the Schedule D instructions for any rollover of
R
gain (for example, rollover of gain from QSB stock or publicly traded
securities).
Taxpayer had a loss from the sale, exchange, or worthlessness of
small business (section 1244) stock and the total loss is more than S
the maximum amount that can be treated as an ordinary loss.
Taxpayer disposed of collectibles (see the Schedule D instructions). C
Taxpayer is electing to postpone all or part of their gain under the
rules explained in the Schedule D instructions for investments in
Z
qualified opportunity funds (QOFs)

Taxpayer is reporting their gain from a QOF investment that was

Y
deferred in a prior tax year

D-31
 Capital Gains or Losses Sale of Main Home
The sale or exchange of a main home must be reported as a Capital Gain or Loss if:
• The taxpayer can’t exclude all of their gain from income,
• The taxpayer has a gain and chooses not to exclude it, or
• The taxpayer received a Form 1099-S for the sale or exchange.
The taxpayer does not have to report the sale of their main home if they qualify and choose to
exclude all of their gain and did not receive Form 1099-S. See Tab R, Glossary and Index, for
a definition of main home. Taxpayers with more than one home cannot choose which home to
designate as their main home.

Generally, if the following two tests below are met, the taxpayer can exclude up to $250,000 of gain.
If both the taxpayer and their spouse meet these tests and file a joint return, they can exclude up to
$500,000 of gain (but only one spouse needs to meet the ownership requirement in Test 1). Reduced
exclusions are Out of Scope.
• Test 1. During the 5-year period ending on the date the taxpayer sold or exchanged their home, they
owned it for 2 years or more (the ownership requirement) and lived in it as their 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. The taxpayer hasn’t excluded gain on the sale or exchange of another main home during the
2-year period ending on the date of the sale or exchange of their home.
If the taxpayer has a gain that can’t be excluded, it is taxable. Any loss is not deductible.

Sale of a home received through inheritance or as a gift is Out of Scope unless it has been used
as a personal residence by the taxpayer or spouse. The taxpayer must provide the cost basis of the
residence. Tests 1 and 2 then apply to exclude the gain.

Death of spouse. If the taxpayer sells their home within 2 years after their spouse dies and has not remarried as
of the sale date, they can count any time their spouse owned the home as time they owned it and any time when
the home was their spouse’s residence as time when it was their residence. In addition, the taxpayer may be able
to increase their exclusion amount from $250,000 to $500,000 if the taxpayer or their deceased spouse meet the
requirements for Test 1 and both the taxpayer and their deceased spouse meet the requirement for Test 2.

If the taxpayer is required to report the sale and it

results in a gain, enter the purchase date, sale date,
purchase price, and sales price in the Sale of Home
Worksheet (you will enter capital improvements and
other adjustments to basis on the next screen).

Out of scope

Out of scope

D-32
Capital Gains or Losses Sale of Main Home (continued)

Enter the number of days the dwelling

was used as the main home (separate
entry for spouse).

Enter the number of days the taxpay­

er owned the home (separate entry for
spouse).

If the taxpayer received the 2008

First-Time Homebuyers Credit, select the
box. Form 5405, Repayment of the First-
Time Homebuyer Credit, will be required to
determine how much of the credit must be
repaid.

If the taxpayer meets the ownership,

residence, and look-back requirements,
taking the exceptions into account, then
the Eligibility Test is met and the taxpayer
is eligible for the Maximum Exclusion, se­
lect the box (reduced maximum exclusion
is Out of Scope; refer to a professional).

• The closing disclosure or HUD-1 Settlement

Statement will give details about closing costs.
• If the sale must be reported and results
in a gain, it will be listed on the appropriate
Form 8949 (basis type C or F). The gain will be
included with the other capital gains and losses
on Schedule D.
• Enter the fees from the purchase of the home
that weren’t included in the purchase price
already entered.

D-33
 Capital Gains or Losses Sale of Main Home (continued)

• Enter the selling expenses, cost of

improvements and other increases or
decreases to the basis of the home. See
Publication 523, Selling Your Home, for
more information about basis.- Additions or
Improvements to a home having a useful life of
more than one year increase the basis. Repairs
that maintain the home in good condition are
not considered improvements and do not
increase the basis.
• This will calculate the adjusted basis of the
home, which will be shown on Form 8949.
• The information will carry to Form 8949 and
• Schedule D.
• If you’ve checked the box to exclude the entire
gain, Form 8949 will show the adjustment as a
negative number in the amount of the net gain,
with adjustment code H and basis type F and
no net gain/loss.

Example: The taxpayer received a Form 1099-S for the sale of their main home. The taxpayer’s adjusted
basis in the home is $150,000. The proceeds from the sale is $200,000. The taxpayer meets the ownership
and use tests. The taxpayer’s Form 8949 is shown below.

If the sale resulted in a gain but was not

eligible for the exclusion, it will be reported on
the appropriate Form 8949 as a gain.

D-34
 Capital Gains or Losses Sale of Main Home (continued)
If the sale is a loss but must be reported because Form 1099-S was received:

Loss on the sale of a main home can’t be deducted. To report the sale, you must enter the sale as a capital
gain or loss item:
• You can use the Sale of Main Home worksheet to assist you in determining the basis, but the information
will NOT carry to Form 8949
• Add a new Capital Gain or Loss Item
• Enter the dates, sales price and adjusted basis amount
• The basis type will be “Did not receive Form 1099-B”
• Enter an adjustment in the amount of the loss as a positive number

Select the adjustment reason as “nondeductible

loss other than a wash sale” which will show as
adjustment code L.

D-35
 IRA/Pension Distributions (Form 1099-R, Form SSA-1099)

Federal Section>Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099

There are four items to choose from, and within each item you can make entries for as many
documents as needed.

Select Nontaxable Distributions to record Qualified Charitable

Distributions (QCDs) and eligible retired public safety officer
distributions for health insurance premiums. Qualified Health
Savings Accounts funding distributions are out of scope.

D-36
 Form 1099-R

Federal Section>Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or Edit a 1099-R; or

Keyword “R”

See the Box 7 Distribution Codes later in this tab for scope limitations.

Box 2a will automatically fill in with the amount in Box 1. If a different amount is shown on the
document, enter that amount directly. You may need to use the Simplified Method to calculate the
taxable amount of the distribution if:
• Box 2a is zero or blank and an amount is shown in Box 9b.
• Box 1 and 2a contain the same amount and Taxable amount not determined box is marked.
Refer to the Taxable Amount Not Determined and Form 1099-R Simplified Method sections later in this Tab.

If a joint return, choose who

the document belongs to.

After completing the Simplified

Method Worksheet or entering the
Public Safety Officer Exclusion for
Health Insurance Premiums, the
taxable portion of the distribution
will carryover to Box 2a. Manual
adjustments are required to make
sure Box 2a reflects changes due
to rollovers, qualified charitable
distributions, return of excess
contributions, etc.

EIN must be entered

accurately. Incorrect EIN is a
common e-file reject.

If marked, the taxable amount

will not carry to Form 8880, Credit
for Qualified Retirement Savings
Contributions, line 4 as a current
year distribution. See Tab G,
Nonrefundable Credits.

If Simplified Method is required or Box 2b indicates “Taxable amount If Box 4 has an entry, ensure
if the taxpayer has public safety officer not determined” and “Total distribution”. that the tax withheld is entered
health insurance deduction, click here Mark exactly as shown on document. and is correct.
for worksheet.

D-37
 Form 1099-R (continued)
Box 5 on the document may be current year’s amount of employee contributions or insurance premiums
(recovery of cost basis or investment in the contract). 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 2a, generally
the difference between Boxes 1 and 2a will appear in Box 5. If Box 5 is the amount of health insurance
premiums, (typically only on a CSA 1099-R) you must manually carry the amount to the Schedule A,
Itemized Deductions, Medical or Dental Expenses.

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. The simplified
method cannot be used for code
“D” or other non-qualified plan
distributions.

Box 9b shows the total employee

contributions and may be needed
if Box 2 has no entry – usually
requires Simplified Method Work­
sheet (see Box 2a).

D-38
 Taxable Amount Not Determined
Federal Section>Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or Edit a
1099-R>Calculate taxable amount; or Keyword “R”

Special Circumstances
The following screen is displayed when “Click here for options” link under “Do you need to calculate your
taxable income?” is selected.

Select begin for the Simplified

Method Worksheet. If the taxpayer
has both retired public safety officer
(PSO) health insurance exclusion and
Simplified Method features, select the
Simplified Method Worksheet.

If the retired PSO does not need

a Simplified Method calculation, select
the PSO Distribution.

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.

Distributions Used To Pay Insurance Premiums for Public Safety Officers

If the taxpayer is an eligible retired public safety officer (police/law enforcement officer, firefighter,
chaplain, or member of a rescue squad or ambulance crew), they can elect to exclude from income
distributions made from an eligible retirement plan used to pay the premiums for accident or health
insurance or long-term care insurance. The premiums can be for coverage for the taxpayer, spouse,
or dependents. The distribution must be made directly from the plan to the insurance provider. The
taxpayer can exclude from income the smaller of the amount of the insurance premiums or $3,000. The
taxpayer can only make this election for amounts that would otherwise be included in their income. The
amount excluded from their income can’t be used to claim a medical expense deduction.
The definition of qualified public safety employees also includes federal law enforcement officers,
federal customs and border protection officers, federal firefighters, air traffic controllers, nuclear
materials couriers, members of the United States Capitol Police or Supreme Court Police, and
diplomatic security special agents of the Department of State.

D-39
 Form 1099-R Simplified Method
Federal Section>Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or Edit a 1099-R>”Click
here for options” (under Box 2a Taxable Amount); or Keyword “R”

If the taxpayer made after-tax contributions toward a pension, a portion of the annuity payment has already
been taxed and isn’t taxable now. Generally, if the starting date of the payments was prior to July 2, 1986,
the Simplified Method wouldn’t apply. If the taxpayer used the 3-year rule, the annuity is fully taxable. If they
used the general rule, refer the taxpayer to a professional tax preparer.

Enter the Plan cost (shown in Box 9b

of 1099-R).

Enter the annuity start date. If the

disability benefits were paid under this plan
during the tax year, enter the date begin­
ning after the taxpayer reached minimum
retirement age as the annuity start date.
The plan administrator should issue two
separate 1099-R statements. If not, prorate
the amount to be treated as wages based
on the annuity start date.

Enter the age of the taxpayer on the

date the pension started – this may be
different than the taxpayer’s age at the end
of that year.

For a joint and survivor annuity, For a joint and survivor annuity that starts:
add the ages of both spouses on • After the death of the employee, use only the
the start date. For the beneficiary of survivor’s age.
an employee who died, see Publi­ • Before the death of either beneficiary, continue with
cation 575, Pensions and Annuities. the same exclusion amount after the first death.

The taxable amount

Enter the amount that could have been recovered tax free in prior years
is calculated and
even if not claimed. Look at last year’s tax return to find this amount, or
carried to Box 2a
calculate the amount using the monthly tax free amount computed by Tax-
on Form 1099-R.
Slayer for the 2022 tax year times the number of months prior to 2022. For
annuitants who retired between July 2, 1986 and Dec. 31, 1986, enter zero.

Form CSA 1099-R - Civil Service Retirement Benefits -

The Office of Personnel Management issues Form CSA 1099-R for annuities paid or Form CSF 1099-R for
survivor annuities paid. The CSA-Form 1099-R box numbers reflect the standard numbering on a Form 1099-
R. If the taxable amount isn’t calculated in Box 2 the Simplified Method must be used.

If you use TaxSlayer’s simplified method worksheet, enter a note with the taxpayer’s annuity start
date, age at the start date, and amounts previously recovered to help next year’s preparer.
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 in top right corner. Choose Notes. Then give the note a 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.

D-40
 Form 1099-R Rollovers and Disability Under Minimum Retirement Age

If any portion was rolled Enter the difference Check if Code 3 is in Box 7 and the taxpayer is disabled
over, check to bring up screen between the taxable part of and under the minimum retirement age* of the employer’s plan.
to enter the amount. Even if the gross distribution (Box This will reclassify the disability income as wages on Form
Box 7 is Code G, this entry 1) and the rollover amount 1040. It will be considered earned income in the calculation
must be made. as the taxable distribution of some credits. Note: There is no cost recovery of employee
in Box 2a. contributions prior to minimum retirement age.

*Minimum retirement age generally is the age at which you can first receive a pension or annuity if you aren’t disabled. Ask the taxpayer for the
minimum retirement age. It may differ between employers.

Rollover – Key Points

• 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
IRA with code G.
• A rollover that involves a distribution of funds to the participant isn’t taxable if the funds are deposited into
an IRA (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-trustee transfers between IRAs because it is not considered a rollover.
• Sometimes a distribution includes both a regular distribution (generally taxable) and a rollover (generally
nontaxable). The Form 1099-R Rollover or Disability section is used to input the amount that won’t be
taxed and Box 2a needs to be adjusted.
• If taxpayer inadvertently missed the 60-day rollover deadline for one of several reasons, they can submit
a certification to the trustee, and the amount can be considered a rollover on his tax return. See Revenue
Revenue Procedure 2020-46 for details.

Internal Revenue Code 402(c)

Extended rollover period for plan loan offset amounts. Provides that the period during which a qualified plan
loan offset amount may be contributed to an eligible retirement plan as a rollover contribution is extended
from 60 days after the date of the offset to the due date (including extensions) for filing the Federal income
tax return for the taxable year in which the plan loan offset occurs, that is, the taxable year in which the
amount is treated as distributed from the plan. Qualified plan loan offset amounts are shown on Form 1099-
R, Box 7 Code M.

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.

D-41
 Form 1099-R Roth IRA

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 a contribution 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)

Is the Distribution From Your Roth IRA a Qualified Distribution?

See the list of Roth IRA distribution codes on the following page that are In Scope and Out of Scope for the
VITA/TCE programs.

Has it been at least 5 years from the beginning of the year No

for which you first set up and contributed to a Roth IRA?

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

No

Yes Is the distribution being used to buy or rebuild a first home

as explained in Publication 590-B, Distributions from
Individual Retirement Arrangements, First Home under
Early Distributions?

No
Yes Is the distribution due to your being disabled (defined
Publication 590-B, under Early Distributions)?

No
No
Was the distribution made to your beneficiary or your estate
after your death?
The distribution from the Roth IRA isn't
Yes a qualified distribution. The portion of
the distribution allocable to earnings
The distribution from the Roth IRA is a qualified distribution. It may be subject to tax and it may be
isn't subject to tax or penalty. This distribution is in scope. This subject to the 10% additional tax. This
will generally be designated by code Q on Form 1099-R. return is out of scope. Refer taxpayer
to a professional tax preparer.

D-42
 Form 1099-R Box 7 Distribution Codes
Box 7 Distribution Codes Explanations
1 — Early distribution, • If this amount was rolled over within 60 days of the withdrawal and—if the distribution was
no known exception from an IRA--no prior rollover was made in the same 12-month period. Check the box
under Rollover or Disability on Form 1099-R, and enter the amount rolled over. Trustee to
trustee transfer isn’t considered a prior rollover. If more than one rollover from an IRA in the
12-month period, return is Out of Scope.
• If this wasn’t rolled over, a 10% additional tax will be applied unless the taxpayer qualifies
for an exception. See Tab H, Other Taxes, Payments and Refundable Credits, for a list of
exceptions. If the taxpayer qualifies for an exception, go to Form 5329, Additional Taxes
on Qualified Plans and Other Tax-Favored Accounts, enter the amount that qualifies for an
exception and select the reason for the exception from the dropdown list.
2 — Early distribution, Code 2 applies if the taxpayer is under 59 ½ but the payer knows that an exception to the
exception applies additional tax applies. If the IRA/SEP/SIMPLE box ISN’T checked, no further action needed.
If the IRA/SEP/SIMPLE box IS checked, ask the taxpayer if any non-deductible contributions
were made. If so, the return is Out of Scope.
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 as wages on the
Form 1040.” This will reclassify the disability income as wages. It will also include the amount
in earned income for calculation of the earned income credit, the dependent 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 (Out of Scope).
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, enter the amount rolled over into the Rollover or Disability field.
• 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 the
taxpayer is over 70 1/2 years old, enter the net taxable amount in box 2a (which may be
zero). Select Continue and at the IRA/Pensions Distributions page, select Nontaxable
Distributions and check the box to mark that there is a Qualified Charitable Distribution
(QCD). No charitable deduction may be taken for the donation. If taxpayers receive or
expect to receive a state or local tax credit for their QCD, the amount treated as a QCD may
be reduced by the amount of the state or local tax credit. See Publication 526, Charitable
Contributions, for details.
• If the IRA/SEP/SIMPLE box IS checked, ask the taxpayer if any non-deductible
contributions were made. If so, the return is Out of Scope.
B — Designated Roth account Code B is for a distribution from a designated Roth account. This code is in scope only if
distribution taxable amount has been determined.

D-43
 Form 1099-R Box 7 Distribution Codes (continued)
Box 7 Distribution Codes Explanations
D — Annuity payments from Code D is used for a distribution from a private annuity in conjunction with the regular code.
nonqualified annuities 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.
F — Charitable gift annuity Code F is used for the annuity payments from a charitable gift annuity. To determine the
amount to enter in Box 2a (Taxable amount), subtract the amount in Box 3 Capital gain, and
Box 5 (Employee contributions) from the Gross distribution (Box 1) and enter that difference
in the Form 1099R screen Box 2a. Also, navigate to Income>Capital Gains and Losses>Ad­
ditional Capital Gain Distributions and enter the amount in Box 3 as a long-term capital gain.
G — Direct rollover of Code G is for a direct rollover from a qualified plan to an eligible retirement plan. If Box 2a,
distribution and taxable amount, is zero or blank, it won’t be taxed. If there is an amount in Box 2a, the direct
direct payment rollover is fully or partially taxable. No further action is needed.
H — Direct rollover of a Code H is for a direct rollover of a distribution from a designated Roth account to a Roth IRA.
designated Roth account It won’t be taxed. No further action is needed. Box 2a should be blank.
distribution to a Roth IRA
L — Loans treated as deemed Code L is for loans treated as deemed distributions. This code could possibly be combined
distributions with codes 1, 4, or B. For more information on how it is treated see the codes on this chart.
M - Qualified plan loan offset Code M is used for a qualified plan loan offset distribution due to plan termination or sever­
ance from employment. The taxpayer has until the due date, including extensions, to rollover
any of the amount. It is always used with another code 1,2,4,7 or B. Treat the distribution
based on the other code.

Q — Qualified distribution from a This distribution isn’t taxable. Box 2a should be blank. TaxSlayer enters the distribution
Roth IRA amount on Form 1040 on the IRAs, pensions, and annuities line. No further action is needed.
S — Early distribution from a A 25% additional tax will be applied unless the taxpayer qualifies for an exception. See Tab
SIMPLE IRA in the first 2 H, Other Taxes, Payments, and Refundable Credits, for a list of exceptions. If the taxpayer
years, no known exception qualifies for an exception, go to Form 5329 and enter the amount of the distribution not sub­
ject to the additional tax and the code for the exception and the amount that qualifies for it.
5, 6, 8, 9, A, E, J, K, N, P, R, T, U, These codes are Out of Scope.
W

D-44
 Form 1099-R Nontaxable Income
Federal Section>Income>1099-R, RRB-1099, RRB-1099-R, SSA- 1099>Nontaxable Distbutions

Qualified Charitable
Distribution (QCD) may be
used if the person was at
least 70½. This makes that
portion of the distribution
nontaxable.

Qualified Health Savings

Account funding distribution
from an IRA (related to a
Form 1099-R ) if rolled over,
is Out of Scope.

Do not use this

checkbox. See Tab D,
Income, Taxable Amount
Not Determined (Special
Circumstances) page.

Qualified Charitable Distributions:

• The QCD is not included in income.
• The QCD is not allowed as a charitable deduction.
• The QCD counts toward the taxpayer’s Minimum Required Distribution.
• It must be a direct distribution from the trustee to the qualified charitable organization.
• The amount of the QCD should be deducted from the gross distribution and the result entered in Box 2a
on the Form 1099-R input screen.

A qualified charitable contribution (QCD) can be made by a taxpayer who is age 70 ½ or older
(unchanged). However, the excludible portion of a QCD distribution is reduced by IRA deductions
once the taxpayer attains age 70½. This provision applies cumulatively for tax years beginning after
2019 as to both distributions and deductions.

If taxpayers receive or expect to receive a state or local tax credit for their QCD, the amount treated
as a QCD may be reduced by the amount of the state or local tax credit. See Publication 526,
Charitable Contributions, for details.

Need to subtract QCD amount in Box 2a but no need to adjust Box 16, State Distribution, to match
(other than as outlined in Caution).

D-45
Tax-Favorable Treatment of Coronavirus-Related Retirement Distributions
There are no coronavirus-related distributions in 2022. For 2022, taxpayers need to use Form 8915-F,
Qualified Disaster Retirement Plan Distributions and Repayments, to report 1/3 of the taxable amount
distributed in 2020 if the taxpayer elected to spread the distribution over three years or recontributed all or a
portion of the 2020 coronavirus-related distribution in 2022.
Three Year Ratable Inclusion in Income
Distributions received in 2020 that were qualified coronavirus-related distributions are included in income
in equal amounts over 3 years. Taxpayers could elect to include the entire distribution in income in 2020.
Taxpayers could not make or change this election after the due date (including extensions) for their 2020 tax
return. In 2022, taxpayers will report their qualified coronavirus distributions and any repayments of qualified
coronavirus distributions on Form 8915-F. Each spouse who is a qualified individual will file a separate Form
8915-F.
Recontributions
A qualified individual who received a coronavirus-related distribution eligible for tax-free rollover treatment
is permitted to recontribute any portion of the distribution to the same plan or another eligible retirement
plan (such as an IRA) within 3 years from the day after the date of distribution. Not all coronavirus-related
distributions qualify for recontribution. These amounts cannot be recontributed:
• Any coronavirus-related distribution (whether from an employer retirement plan or an IRA) paid to a
qualified individual as a beneficiary of an employee or IRA owner (other than the surviving spouse of
the employee or IRA owner).
• Any distribution (other than from an IRA) that is one of a series of substantially equal periodic payments
made (at least annually) for:
| A period of 10 years or more,
| The individual’s life or life expectancy, or
| The joint lives or joint life expectancies of the individual and the individual’s beneficiary.
• Required minimum distributions.
Thus, pensions are not eligible for recontribution. Since RMDs were waived for 2020, qualified individuals
can recontribute a distribution that would have been a 2020 RMD.
A recontribution to an eligible retirement plan at any date before the individual’s federal income tax return is
filed (that is, by the due date, including extensions) will reduce the ratable portion of the coronavirus-related
distribution that is includible in gross income for that tax year. No election is needed and the taxpayer can
decide how much, if any, to recontribute within the permitted 3 year period. If a recontribution exceeds that
year’s ratable taxable amount, the taxpayer can either carry back or carry forward the excess recontribution.
Recontribution of an amount taxed in an earlier year will necessitate an amended return.
A recontribution of a coronavirus-related distribution will not be treated as a rollover contribution for
purposes of the one-rollover-per-year limitation
Example:
Joe is a qualified individual and treated his 2020 distribution as a coronavirus distribution. Joe includes the
$30,000 distribution ratably over a 3-year period. Without any recontribution, Joe would include $10,000 in
income on his 2020, 2021 and 2022 tax returns. In October 2021, Joe recontributes $12,000 to an IRA and
makes no other recontribution in the 3-year period. Joe is permitted to do either of the following:
Option 1. Joe includes $0 in income with respect to the coronavirus distribution on the 2021 tax return. Joe
carries forward the excess recontribution of $2,000 to 2022 and includes $8,000 in income with respect to
the coronavirus distribution on his 2022 tax return.
Option 2. Joe includes $0 in income with respect to the coronavirus distribution on the 2021 tax return
and $10,000 in income on the 2022 tax return. Joe files an amended return for 2020 to reduce the amount
included in income as a result of the coronavirus distribution to $8,000.

D-46
 Tax-Favorable Treatment of Coronavirus-Related Retirement
Distributions (continued)

Reporting in TaxSlayer
Qualified individuals will use Form 8915-F to report the ratable inclusion in income, and show any
recontributions made up through the timely filing date of the tax return.

Volunteers should review the taxpayer's prior year return. If a Form 8915-F is present:

• Check tax year 2020 Form 8915-E to see if the taxpayer spread the income ratably over 3
years. If so, complete Form 8915-F to include 1/3 of the distribution in income for tax year 2022.
• Ask the taxpayer if they recontributed any amount in 2022 or before the due date of their 2022
return (including extensions). If so, see the Recontributions section on the previous page. For
additional details, see the Instructions for Form 8915-F.

Check the Coronavirus Related

box. This form is Out of Scope for any
other use.

Enter 1/3 of the taxpayer's 2020

coronavirus-related distribution from
either a non-IRA retirement plan or an
IRA in the appropriate box. This will
include the income on Form 1040, Line
4B if an IRA or Line 5B if a non-IRA.

Enter the total amount of the

previous years' repayment, not just the
excess amount. Enter in the appropriate
IRA or Non-IRA box.

Enter any repayments for 2022

made before the due date of the return.
Enter in the appropriate IRA or Non-IRA
box.

For more information refer to Coronavirus-related relief for retirement plans and IRAs questions and answers
at: www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-
answers
Disaster-related distributions that are not coronavirus distributions are Out of Scope. For more information,
refer to:
• Disaster Assistance and Emergency Relief for Individuals and Businesses at www.irs.gov/disasters
• Publication 5396, Fact Sheet for VITA/TCE Sites Impacted by Federally Declared Disasters (January 1,
2018 – December 20, 2019) at www.irs.gov/pub/irs-pdf/p5396.pdf
• Publication 5396-A, Job Aid for VITA/TCE Volunteers: Using Form 4852 when Missing the Form W-2 or
1099-R at www.irs.gov/pub/irs-pdf/p5396a.pdf
• Publication 5396-B, Casualty Loss Screening Tool at www.irs.gov/pub/irs-pdf/p5396b.pdf

D-47
 Form RRB-1099-R Distributions

Federal Section>Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>RRB-1099-R; or Keyword “RR”

Railroad Retirement Benefits (RRB) are reported on two forms and require two entry screens. Social
Security Equivalent Benefits, Form RRB 1099 Tier 1 (Blue Form) are entered on the Social Security Benefits
screen. Treat the benefits reported on the Blue Form just like the information reported on Form SSA-1099.
The screenshot below shows the entry screen for Form RRB 1099-R Tier 2 (Green Form).

See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, and Publication
575, Pensions and Annuity Income, for additional information.

A spouse of a railroad retiree

receives a spouse annuity and will
have a separate RRB-1099-R.

Taxable amount may have to be deter­

mined using Simplified Method. Rail­
road retirement pensions which start
when the spouse is alive must use the
joint and survivor simplified method.
Survivor annuities are available for
all surviving spouses. The simplified
method is always needed for a rail­
road retiree, but it is never needed for
the spouse's RRB-1099-R paid to the
spouse while the retiree is alive.

Generally, for a joint and survivor annuity, use the combined ages to calculate the taxable amount for the
employee’s pension. As a reminder, place a note with the combined ages used for carry forward purposes.
For a joint and survivor annuity that starts BEFORE the death of either beneficiary, continue with the same
combined age after the first death. For a survivor annuity that starts AFTER the death of the employee, use
only the survivor’s age.

D-48
 Form SSA-1099/RRB-1099 Tier 1 Distributions

Federal Section>Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Social Security Benefits/

RRB-1099; or Keyword “SSA”

Enter amount from Box 5 of Form

SSA-1099 or from Form RRB-1099 -
Tier 1 (Blue form) Net Social Security
Equivalent Benefits (SSEB).

Be sure to check for any tax

withheld. Often taxpayers choose this
option. This is found in Box 6 of the
SSA-1099 and Box 10 of the RRB­
1099.

Enter the total of Medicare Parts

A, B, C, and D. Repeat for spouse. If
Medicare premiums have been used
for the Self Employed Health Insur­
ance deduction, do NOT enter on this
screen.

If an amount is present in the

description of Box 3 on Form SSA­
1099, or Boxes 7, 8 and 9 on Form
RRB-1099, the taxpayer received ben­
efits attributable to a prior year. If the
taxpayer is able to provide prior year
tax returns, use the Social Security
Lump-Sum Payment worksheet on the
next page to see if the taxable amount
of social security is reduced.

Foreign social security from Canada or Germany that is treated as U.S. Social Security is Out of
Scope.

D-49
 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 menu is available for prior

year Filing Status.

If the prior year return was MFJ,

include social security payments received
that year by BOTH taxpayer and spouse.

Leave the SSA payments received in

an earlier year and/or the taxable benefits
reported in an earlier year boxes empty
if not applicable. All other boxes require
entries.
The calculation won't be correct without the
prior year Modified AGI.
The software will determine total taxable
Social Security based on these entries.

Modified AGI for the purpose of calculating the lump-sum distribution is AGI plus:

1. Tax-exempt interest
2. Adoption benefits (Form 8889)
3. Qualified U.S. Savings Bond interest (Form 8815)
4. Student loan interest deduction
5. Foreign earned income exclusion or housing deduction (Form 2555)
6. Exclusion of certain income of bona fide residents of American Samoa (Form 4563)
or Puerto Rico

D-50
 Entering K-1 Information in TaxSlayer

The taxpayer's Schedule K-1 may come

from a Form 1065 (Partnership).

The taxpayer's Schedule K-1 may come

from a Form 1120S (S-Corporation)

Or, the taxpayer's Schedule K-1 may

come from Form 1041 (Estate) Tax Return.
Be careful to choose the right form.

This situation would be

Out of Scope.

Income reported on Schedule K-1 that is within the scope of the VITA/TCE programs includes:
• Interest income
• Dividend income
• Qualified Dividend income
• Net short-term capital gains and losses (Schedule D)
• Net long-term capital gains and losses (Schedule D)
• Tax-exempt interest income
• Royalty income (Schedule E)
• Foreign tax credit
• 199A dividends
If the K-1 includes any deductions, expenses, credits, or other items not listed above, the return is
Out of Scope.

Most in scope K-1s will be from a passive entity, and the taxpayer’s investment will be at risk. Be sure
to select these boxes in the software, if applicable. TaxSlayer may give you a warning if the At-Risk
box is left blank.

D-51
 Schedule K-1 Scope
OOS = Out of Scope

661117
Final K-1 Amended K-1 OMB No. 1545-0092
Schedule K-1
(Form 1041) 2022 Part III Beneficiary’s Share of Current Year Income,
Deductions, Credits, and Other Items
Department of the Treasury For calendar year 2022, or tax year 1 Interest income 11 Final year deductions
Internal Revenue Service
C Short Term Cap Loss
beginning / / 2022 ending / / 2a Ordinary dividends

D Long Term Cap Loss

DRAFT AS OF
Beneficiary’s Share of Income, Deductions, 2b Qualified dividends
Credits, etc. See back of form and instructions. Other Codes OOS
Part I Information About the Estate or Trust 3 Net short-term capital gain
A Estate’s or trust’s employer identification number
4a Net long-term capital gain

July 26, 2022

B Estate’s or trust’s name 4b 28% rate gain 12 Alternative minimum tax adjustment

OOS OOS
4c Unrecaptured section 1250 gain

OOS

DO NOT FILE
5 Other portfolio and
C Fiduciary’s name, address, city, state, and ZIP code nonbusiness income

OOS
6 Ordinary business income

OOS
7 Net rental real estate income

OOS 13 Credits and credit recapture

8 Other rental income OOS
OOS
9 Directly apportioned deductions

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

14 Other information

E Check if this is the final Form 1041 for the estate or trust A Tax-exempt interest

Part II Information About the Beneficiary 10 Estate tax deduction B Foreign Taxes
F Beneficiary’s identifying number OOS
Other Codes OOS
G Beneficiary’s name, address, city, state, and ZIP code

*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.

Box 14b does not appear in the Tax-

Slayer Form 1041 K-1 entry screen.
Instead make the following entries:
1. Enter amounts for Code B in
Deductions>Credits>Foreign
For IRS Use Only

Taxes Paid.
2. Enter in state as needed.
H Domestic beneficiary Foreign beneficiary

For Paperwork Reduction Act Notice, see the Instructions for Form 1041. www.irs.gov/Form1041 Cat. No. 11380D Schedule K-1 (Form 1041) 2022

D-52
 Schedule K-1 Scope (continued)
671121
Final K-1 Amended K-1 OMB No. 1545-0123
Schedule K-1
(Form 1120-S) 2022 Part III Shareholder’s Share of Current Year Income,
Deductions, Credits, and Other Items
Department of the Treasury 1 Ordinary business income (loss) 13 Credits
Schedule K-1 (Form
For calendar year 2022, or tax year
Internal Revenue Service
OOS OOS
1120S) - S Corporation income beginning / / 2022 ending / / 2 Net rental real estate income (loss)
OOS

DRAFT AS OF
passes directly to shareholders. Shareholder’s Share of Income, Deductions, 3 Other net rental income (loss)
Credits, etc. See separate instructions. OOS
4 Interest income
Part I Information About the Corporation
A Corporation’s employer identification number 5a Ordinary dividends

July 7, 2022
B Corporation’s name, address, city, state, and ZIP code 5b Qualified dividends 14 Schedule K-3 is attached if
checked . . . . .
6 Royalties 15 Alternative minimum tax (AMT) items
OOS

DO NOT FILE
7 Net short-term capital gain (loss)

C IRS Center where corporation filed return 8a Net long-term capital gain (loss)

D Corporation’s total number of shares 8b Collectibles (28%) gain (loss)

Beginning of tax year . . . . . OOS
End of tax year . . . . . . . 8c Unrecaptured section 1250 gain
OOS
9 Net section 1231 gain (loss) 16 Items affecting shareholder basis
Part II Information About the Shareholder
OOS A Tax-exempt Interest
E Shareholder’s identifying number 10 Other income (loss) Nondeductible expenses
651121 OOS C Adjust or State as needed

F Final
Shareholder’s
K-1 name, address,
Amended city, OMB No. 1545-0123
K-1state, and ZIP code

2022
Schedule K-1 Other codes
Part III Partner’s Share of Current Year Income,
(Form 1065) Deductions, Credits, and Other Items
Department of the Treasury 1 Ordinary business income (loss) 14 Self-employment earnings (loss)
Internal Revenue Service For calendar year 2022, or tax year
OOS OOS
beginning / / 2022 ending / / 2 Net rental real estate income (loss)
OOS 17 Other information

DRAFT AS OF
Partner’s Share of Income, Deductions, 3 GOther
Current year income
net rental allocation percentage15.
(loss) .Credits
. %
Credits, etc. See separate instructions.
OOS 11 Section 179 deduction

Part I Information About the Partnership 4a HGuaranteed payments

Shareholder’s for services
number of shares OOS
A Partnership’s employer identification number Beginning of tax year OOS
. . . . . 12 Other deductions
4b End ofpayments
Guaranteed tax year for
. capital
. . . 16. .Schedule
. K-3 is attached if OOS

July 21, 2022

B Partnership’s name, address, city, state, and ZIP code OOS checked . . . . .
4c I Total guaranteed
Loans payments
from shareholder 17 Alternative minimum tax (AMT) items
Beginning of tax year OOS
. . . . . $
5 InterestEnd of tax year
income . . . . . . . $

DO NOT FILE
C IRS center where partnership filed return: 6a Ordinary dividends
D Check if this is a publicly traded partnership (PTP)
Part II Information About the Partner 6b Qualified dividends 18 Tax-exempt income and
nondeductible expenses
E Partner’s SSN or TIN (Do not use TIN of a disregarded entity. See instructions.)
For IRS Use Only

6c Dividend equivalents A Tax-exempt Interest

F Name, address, city, state, and ZIP code for partner entered in E. See instructions. Nondeductible expenses
7 Royalties
C Adjust or State as needed

Other Codes OOS

8 Net short-term capital gain (loss)
19 Distributions 18 More than one activity for at-risk purposes*
G General partner or LLC Limited partner or other LLC 9a Net long-term capital gain (loss) N/A Disregard 19 More than one activity for passive activity purposes*
member-manager member

H1 Domestic partner Foreign partner 9b Collectibles (28%) gain (loss) * See attached statement for additional information.
H2 If the partner is a disregarded entity (DE), enter the partner’s: OOS 20 Other information
TIN Name 9c ForUnrecaptured section 1250
Paperwork Reduction Actgain
Notice, see the Instructions for Form 1120-S. www.irs.gov/Form1120S Cat. No. 11520D Schedule K-1 (Form 1120-S) 2022
OOS
I1 What type of entity is this partner? OOS
I2 If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here . 10 Net section 1231 gain (loss)

J Partner’s share of profit, loss, and capital (see instructions): OOS

Beginning Ending 11 Other income (loss)

No need to enter in TaxSlayer

Profit % % OOS
Loss % %
Capital % %
Check if decrease is due to sale or exchange of partnership interest . . 12 Section 179 deduction 21 Foreign taxes paid or accrued

K Partner’s share of liabilities: OOS

Beginning Ending 13 Other deductions

Box 21 does not appear in the

Nonrecourse . . $ $ OOS
Qualified nonrecourse
financing . . .
Recourse . . .
$
$
$
$
TaxSlayer Form 1065 K-1 entry
Check this box if item K includes liability amounts from lower-tier partnerships
Partner’s Capital Account Analysis 22 More than one activity for at-risk purposes*
screen. Instead make the following
entries:
L
Beginning capital account . . . $ 23 More than one activity for passive activity purposes*

1. Enter amounts from

Capital contributed during the year . . $ *See attached statement for additional information.
Current year net income (loss) . . . $
Other increase (decrease) (attach explanation) $
Codes P and Q in
For IRS Use Only

Withdrawals and distributions . . . $( )

Ending capital account . . . . $ If negative, OOS Deductions>Credits>Foreign>
M Did the partner contribute property with a built-in gain (loss)? Taxes Paid.
2. Enter in state as needed.
Yes No If “Yes,” attach statement. See instructions.
N Partner’s Share of Net Unrecognized Section 704(c) Gain or (Loss)
Beginning . . . . . . . . $
Ending . . . . . . . . . $
For Paperwork Reduction Act Notice, see the Instructions for Form 1065. www.irs.gov/Form1065 Cat. No. 11394R Schedule K-1 (Form 1065) 2022

D-53
 Entering Rental and Royalty Income in TaxSlayer
Income>Supplemental Income and Loss>Schedule E Rent and Royalty Information; or Keyword “SC”

Volunteers must certify at Military level to prepare Schedule E for rental income. Rental income and
expenses are in-scope only for military families renting their personal residences.

Check the box if the taxpayer had any days

of personal use while the property was available
for rent. Enter the number of days here.

Enter the total rental payments received

for the tax year.

Enter number of days rented at fair rental

value. If the property is temporarily rented
for less than 15 days during the tax year, the
rental income is not taxable and the expenses
are not deductible on a Schedule E.

Check here if the taxpayer actively

participated. A rental loss will not appear on
Form 1040, unless the taxpayer actively
participated. In order to actively participate, the
taxpayer must have substantial involvement in
managing the rental property, such as making
management decisions and arranging for repairs.

Use Schedule E to report rental income only

when the taxpayer is not a real estate professional
(determination of professional status is Out of
Scope). Refer taxpayers who are real estate
professionals to a professional tax preparer.

Select to edit the physical ad­

dress, type of property, and to report
the number of fair rental and personal
use days.

If Form 4562 is required, the tax

return is Out of Scope.

Select to enter rental

expenses. See the next page.

Select to enter vehicle expenses.

D-54
Entering Rental and Royalty Income in TaxSlayer (continued)

Ordinary and necessary expenses

incurred while holding a property out
for rent are deductible expenses. See
Publication 527, Residential Rental
Property, for details. Enter expenses
on this screen.

Enter taxpayer-provided depreciation

amount here as a positive number.

If the property has both personal and rental use days, you must manually compute the portion of the
expenses allowable on Schedule E and Schedule A. For example if the house was available for rent
for six months, and you paid $4,000 for Mortgage Interest, you have to manually input $2,000 on the
Mortgage Interest lines on both Schedule E and on Schedule A.

D-55
 Less Common Income
Federal Section>Income>Other Income

Detailed information for each income type found on subsequent pages.

Use Other Income Not Reported Elsewhere and make the appropri­ Distributions from qualified education programs are tax
ate drop-down selection to enter amounts from: free if they aren't more than the beneficiary's adjusted qualified
education expenses for the year. Tax-free distributions are not
• Form 1099-MISC Box 3 (Other Income), (hobby income-
activities not for profit are Out of Scope) or Box 8 (Substitute reported on the tax return. See Highlights of Education Tax
payments in lieu of dividends or interest.) Benefits in Tab J for qualified expenses.
• Jury Duty Pay (Not earned income for EIC) Taxable distributions from Coverdell Education Savings
• Alaska Permanent Fund Dividend Accounts (ESAs), Qualified Tuition Programs (QTPs)/529 or
• Gambling winnings not reported on a Form W-2G Achieving a Better Life Experience (ABLE) accounts are Out
• Reemployment trade adjustment assistance (RTAA) of Scope.
payments from Form 1099-G, Box 5 or taxable grants from
Form 1099-G, Box 6
• Other income not entered elsewhere on the return

Gambling winnings are reported to

the taxpayer on Form W-2G, 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 an
other itemized deduction on Schedule A.

Use the Other Compensation menu to

report scholarships and grants, taxable fringe
benefits, household employee income,
prisoner earned income, and foreign
compensation.

Cancellation of Debt from a credit

card and Discharge of Qualified Principal
Residence Indebtedness are in scope for
preparers with Advanced certifications.

Foreign Earned Income Exclusion is 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. See Publication 54, Tax Guide for U.S.
Citizens and Resident Aliens Abroad.

D-56
 See Tab I, Earned Income Credit, Earned Income Table for examples of other income that may be
earned income.

Qualified State or local tax benefits and qualified reimbursement payments (up to $50 per month)
provided to members of qualified volunteer emergency response organizations are excluded from
income.

Form 1099-LTC, Long-Term Care Benefits:

• Search for Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, and scroll to the Long
Term Care (LTC) Insurance Contracts section.
• Answer the questions based on the information on Form 1099-LTC. Most payments will not be taxable.
• If Box 3 is checked for reimbursement, no reporting is necessary.

D-57
 Form 1099-MISC
Federal Section>Income>1099-Misc; or Keyword “MIS”

Payer'sTIN* The Payer Information relates to the

Also may be found in the box labeled Payer's Federal Identification Number entity that paid the taxpayer and issued
the Form 1099-MISC. In most cases,
the Federal ID will be an employer
identification number, not an SSN.
Recipient Information
Also may be found in the box labeled Recipient's !dentif1cation Number On a joint return, indicate if the Form
1099-MISC recipient is the
Recipient's name•
Taxpayer or the Spouse.

Some income that isn’t self-

D Checkheretfforelgn adclress
employment, such as prizes and awards,
Address (street number & name)* and strike benefits is reported in Box 3,
Other Income.To report strike benefits
on the return, do not enter a 1099-MISC.
ZIP code• City, town, orpost office• Instead:
30904 Augusta GeOfgia • Go to Other Income>Other Income
Not Reported Elsewhere, select Other
Income from the drop down, enter the
Account number description as “Strike Benefits” and
check the earned income box.
• Then remove the SE tax. Go to Other
Taxes>Self-Employment Tax. In the
Income There is usually "Adjustment to nonfarm income” field,
no income tax enter the amount of strike benefits as
withholding on a negative (-). This will remove any SE
a Form 1099-MISC.
tax associated with the strike benefit
But always double
income.
2.Royaltles check to make sure.

3.0therlncome 4.Fedenilincometaxw!thheld

5.Fishlngboatproceeds 6.Mecllcaland healthcarepayments

Self-employment income generally appears on Form 1099­

NEC. If there is income reported in other boxes on Form
1099-MISC and it was earned by the business, it should also
be reported as other business income on the Schedule C.

D-58
 Entering Foreign Earned Income
Exclusion Information in TaxSlayer

Federal Section>Income>Less Common Income>Foreign Earned Income Exclusion; or Keyword “2555”

Foreign Earned Income Exclusion is in scope only for preparers with International Certification.

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 as taxable wages or as
self-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.
For 2022, the maximum exclusion is $112,000. For MFJ returns, both spouses can claim the exclusion up to
the maximum amount per person.
You can’t exclude or deduct more than the taxpayer’s foreign earned income for the year.
The taxpayer’s tax home is the taxpayer’s regular or principal place of business, employment, or post of
duty, regardless of where the taxpayer maintains a family residence. A taxpayer may have more than one tax
home during the year.

D-59
 Entering Foreign Earned Income
Exclusion Information in TaxSlayer (continued)
To meet the period of stay requirement, the taxpayer must be either:
• A U.S. citizen or U.S. resident alien who is physically present in a foreign country or countries for at least
330 full days during any period of 12 consecutive months, or
• A U.S. citizen or U.S. resident alien from a tax treaty country who is a bona fide resident of a foreign
country (or countries) for an uninterrupted period that includes an entire tax year
• A U.S. resident alien who is a citizen or national of a country with which the United States has an income
tax treaty in effect and who is bona fide.

The 12-month period on which the physical

presence test is based must include 365 days,
part of which must be in 2022. The dates may
begin or end in a calendar year other than 2022.

To figure 330 full days, add all separate periods

the taxpayer was present in a foreign country or
countries during the 12-month period.

Waiver of minimum time requirements (for physical presence and bona fide residence tests): The
taxpayer must leave the country because of war, civil unrest, or similar adverse conditions.

D-60
 Entering Foreign Earned Income
Exclusion Information in TaxSlayer (continued)

If the taxpayer left the principal

country of residence during the
tax year, enter the information
requested for each additional
country he or she visited.

If more than one additional country

was visited, select Add Country.
Select Clear if the taxpayer did not
visit any other countries during their
time abroad.

Days in the United States are

entered in a separate field.

If no money was earned in the

country to which the taxpayer
traveled, enter $0.

Bona Fide Residence Test

• To meet the bona fide residence test, taxpayers must show that they have set up permanent quarters in
a foreign country for an entire, uninterrupted tax year. Simply going to another country to work for a year
or more isn’t enough to meet the bona fide residence test. A taxpayer must establish a residence in the
foreign country.
• If the taxpayer was present in the United States or its possessions during the tax year, enter the
information for each trip.
| To add another trip, Select Add New
| If the taxpayer did not visit the U.S. or its possessions during the year, select Clear to remove this
item
• Don’t include income earned while in the United States in the amount of foreign earned income to be
excluded (next page).
• A brief trip to the U.S. will not prevent the taxpayer from being a bona fide resident, as long as the
intention to return to the foreign country is clear.

D-61
 Entering Foreign Earned Income
Exclusion Information in TaxSlayer (continued)

Enter the income the taxpayer

earned during the 2022 tax year
for services performed in a foreign
country. This income should
already have been entered on
the tax return as wages, foreign
compensation, or net self-
employment income.
Amounts paid by the United
States or its agencies to its
employees don’t qualify for
the exclusion.

Enter the number of days in

your qualifying period that fall
within your 2022 tax year. Your
qualifying period is the period
during which you meet the tax
home test and either the Bona
Fide Residence or the Physical
Presence Test.

D-62
 Entering Other Compensation in TaxSlayer

Income>Less Common Income>Other Compensation

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 nonqualifying expenses.
“SCH” will appear on the dotted line
next to the wages line on Form 1040.
Taxable scholarship is considered
unearned income for most purposes
but is considered earned income for
determining filing requirement.

Enter wages received as a house­

hold employee for which the taxpayer
did not receive a Form W-2 because
the employer paid less than $2,400 in
2022. “HSH” will appear on the dotted
line next to wages on Form 1040.

Enter the amount received for work while an inmate in a penal institution. For pur­ Enter foreign earned income
poses of the Earned Income Credit, this isn’t considered earned income. This includes (wages, salaries, etc.) paid by a
amounts received for work performed while in a work release program or while in a half­ foreign employer for work performed
way house. “PRI” will appear on the dotted line next to the line for wages on Form 1040. while the taxpayer lived in a foreign
This entry is made in addition to entering the Form W-2 from the penal institution. country.

If Rebate/Patronage Dividends issued by co-ops on Form 1099-PATR Box 1 are for personal use only,
the amount is nontaxable and is not entered into TaxSlayer. Enter note on intake sheet and tax return
noting it is for personal use only. No other box or use is in scope.

D-63
 Publication 4731

Publication 4731
Screening Sheet for Nonbusiness Credit Card
Debt Cancellation
If the taxpayer is in bankruptcy, the tax return is out of scope for the VITA/TCE Programs.
Instructions: Use this Screening Sheet for taxpayers with Form 1099-C or other documentation resulting from
cancellation of nonbusiness credit card debt and to assist in identifying taxpayers with cancellation of credit card debt
issues.

Credit Card Debt

1. Did the taxpayer receive Form 1099-C, Cancellation of Debt, or other documentation (if less than $600) from a
creditor and is the information shown on the form or document correct?
Yes – Go to Step 2
No – Go to Step 6
Note: The creditor is not required to issue a Form 1099-C if the canceled debt is under $600. However, the taxpayer
may be required to report the canceled debt as income regardless of the amount.

2. Was the credit card debt related to a business?

Yes – Go to Step 6
No – Go to Step 3
3. Does box 6 of the Form 1099-C indicate Code A for bankruptcy?
Yes – Go to Step 6
No – Go to Step 4
Note: If box 6 is not marked with a Code A, but the taxpayer has subsequently filed bankruptcy, answer “yes.”
4. Was the taxpayer insolvent* immediately before the cancellation of debt?
Yes – Go to Step 6
No – Go to Step 5
Use the Insolvency Determination Worksheet in Publication 4012 and interview the taxpayer to determine if the
taxpayer was insolvent immediately before the cancellation of debt.

5. The cancellation of nonbusiness indebtedness or cancellation of debt (the amount in box 2 of Form 1099-C or
an amount less than $600 provided in other documentation) must be reported as ordinary income on Form 1040,
Schedule 1 (Other Income). No additional supporting forms or schedules are required for reporting income from
canceled credit card debt.
6. This tax issue is outside the scope of the volunteer programs. The taxpayer may qualify to exclude all or some of
the discharged debt. However, the rules involved are complex.
Refer the taxpayer to:
• www.irs.gov for the most up-to-date information.
• A professional tax preparer.
• The Taxpayer Advocate Service (TAS): 1-877-777-4778, TTY/TDD 1-800-829-4059. TAS may help if the problem
cannot be resolved through normal IRS channels.
• Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (For Individuals)
*If the taxpayer is not in bankruptcy or unable to determine if they are insolvent the credit card debt forgiveness is
presumed fully taxable.

Publication 4731 (Rev. 10-2022) Catalog Number 52643X Department of the Treasury Internal Revenue Service www.irs.gov

D-64
 Insolvency Determination Worksheet
Determining insolvency is Out of Scope for the volunteer. This sample worksheet is for reference only.

Insolvency Determination Worksheet

Assets (FMV) Liabilities
Homes $ Mortgages $
Cars Home equity loans
Recreational vehicles, etc. Vehicle loans
Bank accounts Personal signature loans
IRAs, 401Ks, etc. Credit card debts
Jewelry Past-due mortgage interest, real estate taxes,
utilities, and child care costs
Furniture
Clothes
Misc. Student loans
Other assets Other liabilities
Total Assets: $ Total Liabilities: $

Total Assets minus Total Liabilities = $

(Negative amount equals insolvency)
Positive amount equals solvency

D-65
 Entering Cancellation of Credit Card Debt and Student Loan Debt
Forgiveness in TaxSlayer
Income>Less Common Income>Cancellation of Debt Form 1099-C, Form 982; or Keyword: C or CANC

Generally, if a debt for which a taxpayer is personally liable is canceled or forgiven, the taxpayer must include
the canceled amount in income.

Be sure to ask if the taxpayer was insolvent or in bankruptcy – these situations make the return
Out of Scope.

Cancellation of Credit Card Debt and

Forgiveness of Qualified Principal Residence
Indebtedness is within the scope of the
Advanced certification of the volunteer program.

Enter the information from the Form 1099-C.

Be sure to indicate whether the canceled debt
was for the taxpayer or the spouse.

If the Form 1099-C was for mortgage

forgiveness on the taxpayer’s main
home, see Discharge of Qualified Princi­
pal Residence Indebtedness in Tab EXT,
Legislative Extenders.

The American Rescue Plan Act of 2021 excludes from gross income amounts related to the discharge
of certain student loan debt in 2021 through 2025, applicable to discharges of loans after December
31, 2020. If the taxpayer qualifies to exclude discharged student loan debt, the return is in scope. If the
taxpayer has any other type of debt forgiven, or may have been insolvent at the time of the debt forgiveness,
the taxpayer should be referred to a professional tax preparer. If discharge of student debt qualifies for
exclusion, then no Form 1099-C should be issued. If issued, and taxpayer meets the requirements noted
above, the taxpayer should try to obtain a corrected document. If unable, input as Income>Less Common
Income> Cancellation of Debt (Form 1099-C) and again as a negative amount in Other Income with the
description Student Loan Debt Forgiveness.

D-66
Tab E: Adjustments to Income

E-i
E-ii
 Adjustments to Income

Federal Section >Deductions >Adjustments

1 MSA Out of Scope.
2 In tax year 2022, eligible
educators can deduct
up to $300 for materials
and supplies used in the
1 classroom.

2 3 For military reservist, see

notes on the next page in
the Other Expenses section.
3
4 Health Savings
Account – select to open
4 Form 8889, Health Savings
Accounts.
5 5 Moving expenses apply to
active duty military only.
Must be Certified for Military.
6 Check the box near the top
of the form to indicate an
Armed Forces PCS move.
7
6 Contributions to SEP,
8 Simple and Qualified
Plans - Out of Scope.
9 7 Self-employed health
insurance deduction is in
scope (Advanced certifica­
10 10 Taxpayers have until tion required).
the tax filing deadline
to make TY2022 tradi­ 8 Early withdrawal penalty
11 tional IRA deductions. auto-populates from Form
1099-INT.
12 9 If the taxpayer paid
alimony to more than one
person, add a second payee
13 after entering the first. See
Alimony Requirements, later
in this tab, for post-2018
14 divorces.

11 Form 8606 Nondeductible

IRAs is Out of Scope.

12 Taxpayers may deduct 13 Tuition and Fees Deduc­ 14 Select Other Adjust­
up to $2,500 in student tion is not deductible on ments for jury duty pay
loan interest they paid. the federal return after 2020. turned over to employer.
See Student Loan Interest
Deduction at a Glance later
in this tab.

E-1
Employee Business Expenses
Form 2106 , Employee
Business Expenses, is in scope
for Military certification only.

Check the box to indi­

cate that the taxpayer is
a member of a Reserve
Component.

Enter parking or ferry

fees and tolls.

Enter lodging
expense

The amount of expenses

that can be deducted is
limited to the:
1. actual lodging costs,
limited to the federal per
diem rate.
2. federal per diem rate
for meals and incidental
expenses
and
3. standard mileage rate
(for car expenses) plus
any parking fees, ferry
fees and/or tolls.
Enter this information on
Form 2106.

Military reservists Enter meal expenses

who must travel at the federal per diem
more than 100 rate. For 2022, reserv­
ists can deduct 100% of
miles away from home to business meals provided
attend a drill or reserve by a restaurant.
meeting may deduct their
travel expenses as an
adjustment to income.
Entertainment expenses
are not allowed.

Select Continue and enter

vehicle information and
mileage from the menu on
the next screen.

E-2
 Moving Expenses
Moving expenses apply to active duty military only. Must be certified for Military.

You can deduct the Check the box to indicate a

expenses that are more Permanent Change of Station
than your reimbursements (PCS) move.
in the year you paid or incurred Enter amount from Form W-2,
the expenses. Box 12, code P

18 cents per mile driven for Enter lodging costs. You can’t
medical or moving deduct the cost of unneces­
sary side trips or lavish and
purposes from January 1 extravagant lodging.
through June 30 and
22 cents per mile from July 1
If yes, enter number of miles
through December 31 or the taxpayer’s actual
amounts for gas and oil if they
maintained receipts. Don’t
enter both.

You can deduct the expenses of

moving your household goods
and personal effects, including
expenses for hauling a trailer,
packing, crating, in-transit stor­
age, and insurance.
You can’t deduct expenses for
moving furniture or other goods
you bought on the way from your
old home to your new home.
You can include only the cost
of storing and insuring your
household goods and personal
effects within any period of 30
consecutive days after the day
these goods and effects are
moved from your former home
You can’t deduct the following items as moving expenses. and before they are delivered to
your new home.
• Any part of the purchase price of your new • Losses from disposing of memberships in
home. clubs.
• Car tags. • Mortgage penalties.
• Driver’s license. • Real estate taxes.
• Expenses of buying or selling a home • Refitting of carpet and draperies.
(including closing costs, mortgage fees, and • Return trips to your former residence.
points).
• Security deposits (including any given up due
• Expenses of entering into or breaking a lease. to the move).
• Home improvements to help sell your home. • Storage charges except those incurred in
• Loss on the sale of your home. transit and for foreign moves.
E-3
 Educator Expenses

Federal section >Deductions >Adjustments>Educator Expenses

Don’t rely on this table alone. Refer to Publication 529, Miscellaneous Deductions, for more details.

Question Answer
What is the maximum benefit? $300 (If the taxpayer and spouse are both eligible educators, they can deduct up to $600, but
neither can deduct more than their own expenses up to $300).
Who can claim the expense? Eligible Educators — an eligible educator is a kindergarten through grade 12 teacher, instruc­
tor, counselor, principal, or aide who worked in a school for at least 900 hours during a
school year.
What are qualifying expenses? Qualifying expenses include ordinary and necessary expenses paid in connection with books,
supplies, equipment (including computer equipment, software, and services), and other mate­
rials used in the classroom. Qualified expenses include amounts paid or incurred for personal
protective equipment, disinfectant, and other supplies used for the prevention of the spread of
coronavirus. Additionally, professional development expenses are allowed unless reimburse­
ment is offered by the school but not accepted.
What are nonqualifying expenses? Expenses for home schooling or nonathletic supplies for courses in health or physical
education.
What other issues apply? Taxpayer must reduce qualified expenses by
• Excludable U.S series EE and I savings bond interest from Form 8815
• Nontaxable qualified tuition program earnings or distributions
• Nontaxable distribution of earnings from a Coverdell education savings account
• Any reimbursements received for expenses that weren’t reported on the Form W-2

Professional development expenses include courses related to the curriculum in which the educator
provides instruction.

The deduction amount is indexed for inflation and may change in future years.

E-4
 Self-Employed Health Insurance Deduction

Federal Section >Deductions>Adjustments>Self-Employment Health Insurance

Enter total amount of pre­

miums paid here for health
insurance
Enter the net profit from Sched­
ule C in the field below the
insurance payment amounts
(the adjustment amount cannot
be greater than the net profit
from the business). TaxSlayer
will automatically subtract the
adjustment for ½ of SE tax.

For most returns (just one Schedule C) enter the qualifying health insurance and LTC insurance
premiums (limit based on age) on the Schedule C - Expenses screen, under health insurance in the
software (see Tab D, Income, Schedule C - General Expenses). TaxSlayer will automatically take
any excess to Schedule A.

Federal Section >Deductions>Adjustments>Self-Employment Health Insurance

LTC premiums limited by age

for 2022:
• Age 40 or under: $450
• Age 41 to 50: $850
• Age 51 to 60: $1,690
• Age 61 to 70: $4,510
• Age 71 and over: $5,640

Calculations with Premium Tax Credit are Out of Scope with respect to the self-employed health
insurance deduction.

For taxpayers who are itemizing deductions, test to see if claiming the health insurance on Schedule
A yields a better result.

E-5
 Health Saving Accounts (HSA)
Health Saving Accounts (HSA)
Publication 4885
Screening Sheet for Health Savings Accounts (HSA)

Instructions: This Screening Sheet will help you identify HSA issues that are within the scope of the VITA/TCE program.
Use the Determine HSA Eligibility section to determine if taxpayer is eligible for an HSA; use Part I for contributions/
deduction; use Part II for distributions. References: Publication 969, Form 8889 and Instructions

Determine HSA Eligibility (To set up an HSA or make contributions to an HSA)

TO QUALIFY: An individual must meet ALL the following requirements:
• Be covered under a high deductible health plan (HDHP) on the first day of any month of the year.
• Have no other health coverage except for allowable “other health coverage.” (Publication 969, “Other health coverage”)
• Not be claimed as a dependent on someone else’s tax return. (Publication 969, “Qualifying for an HSA”)
• Not be covered by Medicare (but the individual can be HSA eligible for the months before being covered by Medicare)
NOTE: If the taxpayer doesn’t qualify, but contributions have been made to an HSA, the taxpayer should be referred to a
professional tax preparer.

PART I – HSA Contributions and Deduction

STEP If eligible, were contributions made to an HSA? (Does not include YES – Complete Form 8889, Part I,
1 employer contributions.) lines 1 and 2. Go to Step 2.
NO – Go to Part II, below.
STEP Was the taxpayer enrolled in the same HDHP coverage for the entire YES – Complete Form 8889, Part I,
2 year? lines 3-13.
(Answer Yes, if last-month rule applies, and see Form 8889 Instructions) FOR YES AND NO: Lines 4 and
Caution: If line 2 is more than line 13, the taxpayer must withdraw the 10 are Out of Scope.
excess contribution to avoid an additional tax. If the excess is not timely NO – Refer to Form 8889
withdrawn, refer the taxpayer to a professional tax preparer. (Refer to
Instructions for additional information
Form 8889 Instructions, line 13).
on completing line 3.

PART II – HSA Distributions

STEP Did the taxpayer receive distributions from the HSA trustee (whether or YES – Complete Form 8889 Part II,
1 not Form 1099-SA received)? Line 14a, 14b, if applicable, and 14c.
Go to Step 2.
NO – STOP, do not complete Part II.
STEP Did the taxpayer use all or part of the distribution to pay or get reim- YES – Enter the amount on line 15
2 bursed for qualified medical expenses during the year that were and complete line 16. Go to Step 3.
incurred after the HSA was established and were for qualified persons? NO – Enter zero on line 15 and
complete line 16. Go to Step 3.
STEP If any part of the distribution is taxable, was the distribution made after YES – Check box on line 17a and
3 the taxpayer died, became disabled or turned 65? complete 17b.
NO – Taxpayer will be subject to an
additional 20% tax.

Publication 4885 (Rev. 10-2020) Catalog Number 55732V Department of the Treasury Internal Revenue Service www.irs.gov

E-6
 Health Saving Accounts (HSA) (continued)

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 will contain code W in box 12 for employer contributions.
• The taxpayer (or spouse) has a Form 1099-SA with an X in the box 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.

Contributions to an employee’s account through a Section 125 (cafeteria) plan are treated as
employer contributions and aren’t deductible.

2022 Contribution Limits

• Family Plan: $7,300
• Self only Plan: $3,650
• Add $1,000 if the owner is age 55 or over at end of year

Add a second Form 8889 if taxpayer and

spouse have separate HSAs.
Select the appropriate HDHP coverage
for the taxpayer: Self-only or family. This
determines the maximum HSA contribution
limits.

Use family coverage amount if

taxpayer or spouse had an
HDHP with family coverage.

The Check here if you and your spouse

have separate HSAs box will appear when
family coverage is selected. Check the box
if BOTH spouses have a separate HSA.
Employee contributions are entered here.
Contributions by relatives and friends are
considered to be made by taxpayer. Don’t
include employer contributions on this line.
The account holder needs to tell you how
much was put in the HSA, because the
Form 5498-SA may not have been received
prior to preparing the return.
Enter number of months you had a
Health Savings Account, a high deduct­
Out of scope ible policy and no other major medical
policy (including Medicare) and could not
be claimed as dependent. Enter “12” if “12
month rule” applies (you were eligible on
December 1st).

Out of scope
E-7
 Health Saving Accounts (HSA) (continued)

Enter HSA distributions here. Ask the

taxpayer for Form 1099-SA, with the
HSA box checked. If not an HSA distribu­
tion, refer the taxpayer to a professional
tax preparer.
Enter amount spent on qualifying
expenses not reimbursed by insurance.
See list below.

Form 8889 will calculate the amount of

excess contributions, if any.

If the excess contributions and

earnings are not withdrawn by
the due date of the return,
including extensions, then the return is
out of scope.

If the taxpayer meets one of exceptions

to the 20% additional tax, check this
box. The exceptions are that the account
beneficiary dies, becomes disabled, or
turns age 65.

If no adjustments to calculated amounts

are needed, stop here.

If both taxpayer and spouse had an

HSA for the whole year, enter $7,300
in 1st adjustment box. If account owner
If both taxpayer and spouse had an An entry is not needed in had changes in coverage or eligibility
HSA and taxpayers wish to split the the age 55 or older box. during the year, use the worksheet in the
limitation amount, enter the limita­ This is a calculated amount. Instructions for Form 8889 to calculate the
tion amount for this account. adjustment.

E-8
 Health Saving Accounts (HSA) (continued)
Qualifying Medical Expenses
Except for health insurance premiums, qualifying expenses include all medical and dental expenses
deductions allowed on Schedule A. Additional items are considered “qualified medical expenses” and may
be reimbursed by HSAs, Archer MSAs, Health FSAs, and HRAs. Specifically, the cost of menstrual care
products is now reimbursable. These products are defined as tampons, pads, liners, cups, sponges or other
similar products. In addition, over-the-counter products and medications are now reimbursable without a
prescription. The purchase of personal protective equipment (PPE), such as masks, hand sanitizer and
sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are also eligible to be paid
or reimbursed. The cost of home testing for COVID-19 is also an eligible medical expense.

Only these insurance premiums can be included:

• Long-term care insurance premiums subject to limits see Tab F, Deductions.

• Health care continuation coverage such as coverage under COBRA,
• Health care coverage while receiving unemployment compensation, and
• Medicare and other health care coverage if the taxpayer was 65 or older (other than premiums for a
Medicare supplemental policy, often called Medigap coverage).
• The cost of home testing for COVID-19 is also an eligible medical expense.

Alimony Requirements
(Instruments Executed After 1984 and Before 2019)
Payments ARE defined as alimony if all of the fol­ Payments aren’t alimony if any of the following are
lowing are true: true:
Payments are required by a divorce or separation instrument. Payments aren’t required by a divorce or separation instrument.
Payer and recipient spouse don’t file a joint return with Payer and recipient spouse file a joint return with each other.
each other.
Payment is in cash or cash equivalents (including checks or Payment is:
money orders). • Not in cash,
• A noncash property settlement,
• Spouse’s part of community income, or
• To keep up the payer’s property.
Payment isn’t designated in the instrument as not alimony. Payment is designated in the instrument as not alimony.
Spouses legally separated under a decree of divorce or sep­ Spouses legally separated under a decree of divorce or sepa­
arate maintenance aren’t members of the same household. rate maintenance are members of the same household.
Payments aren’t required after death of the recipient spouse. Payments are required after death of the recipient spouse.
Payment isn’t treated as child support. Payment is treated as child support.

These payments are deductible by the payer and includible These payments are neither deductible by the payer nor includi­
in income by the recipient. ble in income by the recipient.

Alimony paid pursuant to a divorce or separation instrument executed on or before December 31,
2018, is deductible. Divorce or separation agreements executed after Dec 31, 2018, or executed
before 2019 but later modified if the modification expressly states the repeal of the deduction for
alimony payments applies to the modification, are not deductible for the spouse who makes the payments
and will not be included in income for the spouse that receives the payment.

E-9
 IRA Deduction

Federal Section >Deductions >Adjustments>IRA deductions

For 2022, the maximum IRA deduction is

$6,000 ($7,000 if age 50 or older).

If the total of traditional and

Roth IRA contributions
exceed the lesser of total
compensation or the allowable limit,
the taxpayer must withdraw the
excess plus earnings before the filing
deadline. If not, a penalty will apply
and the return will be Out of Scope.

If a taxpayer receives
difficulty of care payments,
then those amounts may
increase the amount of non­
deductible IRA contributions he/she
can make but not above the $6,000
IRA deductible amount ($7,000 if you
are 50 or older).
Check if the taxpayer's or spouse's
Form W-2, Box 13 has Retirement
plan checked.

Starting in 2020, the long-standing 70½ age limit for making contributions to traditional IRAs is
eliminated. Contributions for the current tax year can be made until the filing deadline, generally
April 15 of the year following the tax year. Your filing status has no effect on the amount of allowable
contributions to your traditional IRA. However, if during the year either you or your spouse was covered by a
retirement plan at work, your deduction may be reduced or eliminated, depending on your filing status and
income. See Publication 590-A, Contributions to Individual Retirement Arrangements, for details.
Compensation for purposes of an IRA contribution includes wages, salaries, commissions, net profit
from self-employment, taxable alimony and separate maintenance, certain taxable non-tuition
fellowship and stipend payments and nontaxable combat pay.

Contributions to a Roth IRA can be made after taxpayer reaches 70½, but no deduction can be
taken.

If the taxpayer made a Traditional IRA contribution, select Adjustments from the Deductions menu,
then select IRA Deduction. Don’t enter a Roth IRA contribution on this screen. Enter it in the
Credits section. If eligible, the software will calculate a Retirement Savings Contributions Credit. Be
sure to enter any applicable retirement plan distributions. See Tab G, Nonrefundable Credits for more
information on this credit.

E-10
 Student Loan Interest Deduction at a Glance

Federal section >Deductions >Adjustments>Student Loan Interest Deduction

This table is only an overview of the rules. For details see Publication 970, Tax Benefits for Education.

Feature Description
Maximum benefit You can reduce your income subject to tax by up to $2,500.
Loan qualifications Your student loan: Taxpayer must be legally liable for the loan.
• must have been taken out solely to pay education expenses, and
• can’t be from a related person or made under a qualified employer plan.
Student qualifications The student must be:
• you, your spouse, or a person who was your dependent when you took out the
loan, or would’ve been your dependent except you were a dependent, or had gross
income over the exemption amount, or filed MFJ.
• enrolled at least half-time in a program leading to a degree, certificate or other
recognized educational credential.
Time limit on deduction You can deduct interest paid during the remaining period of your student loan.
Phaseout The amount of your deduction depends on your modified adjusted gross income and
filing status.

If student loan interest is paid by someone who isn’t legally liable for it, the payment is treated as made by
the person who’s legally liable, and the person legally liable is allowed to take the adjustment. Student loan
interest is generally reported to the taxpayer on Form 1098-E. For payments made after March 27, 2020, and
before January 1, 2026, do not deduct as interest on a student loan any interest paid by your employer under
an educational assistance program.

Taxpayer cannot claim the deduction if filing status is Married Filing Separately or if the taxpayer or
spouse (if MFJ) is claimed as a dependent.

Student Loan Interest and Secure Act of 2019

The SECURE Act of 2019 allows a distribution from a Section 529 education savings account of up to
$10,000 total (not annually) to be applied to the principal or interest for any qualified student loan for
the designated beneficiary or sibling of the designated beneficiary effective for distributions made after
December 31, 2018.

Any interest paid with a Section 529 plan distribution cannot also be taken as a student loan
adjustment to income on Form 1040.

E-11
Notes

E-12
Tab F: Deductions

F-i
F-ii
 Standard Deduction
This chart provides the standard deduction amounts for tax year 2022.

Standard Deduction Chart for Most People*

Your standard
If the taxpayer’s filing status is... deduction is ...
Single or married filing separate return $12,950
Married filing joint return or qualifying surviving spouse with dependent child $25,900
Head of household $19,400
*Don’t use this chart if the taxpayer was born before January 2, 1958, or is blind, or if someone can claim the
taxpayer as a dependent (or their spouse if married filing jointly). (See the chart on the following page.)

Persons Not Eligible for the Standard Deduction

Your standard deduction is zero and you should itemize any deductions you have if:

• Your filing status is married filing separately, and your spouse itemizes deductions on his or her return.
It doesn’t matter who files first.
• You are filing a tax return for a short tax year because of a change in your annual accounting period
(Out of Scope)
• You are a nonresident or dual-status alien during the year. You are considered a dual-status alien if you
were both a nonresident and resident alien during the year (Out of Scope).
• If you are a nonresident alien who is married to a U.S. citizen or resident alien at the end of the year,
you can choose to be treated as a U.S. resident. (See Publication 519, U.S. Tax Guide for Aliens.) If
you make this choice, you can take the standard deduction.

If you can be claimed as a dependent on another taxpayer’s return (such as your parents’ return),
your standard deduction may be limited.

F-1
 Standard Deduction (continued)
Standard Deduction Chart for People Born Before January 2, 1958 or Who are Blind
Don’t use this chart if someone can claim you (or your spouse if filing jointly) as a dependent.
Use the second worksheet below.

Blind is defined in Tab

R, Glossary and Index

Standard Deduction Worksheet for Dependents

Use this worksheet only if someone else can claim you (or your spouse if filing jointly) as a dependent.

F-2
 Interview Tips – Itemized Deductions
These 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.

Step Probe/Ask the taxpayer: Action

Do you have expenses in the following categories: medical and dental If YES, go to Step 2.
expenses, taxes you paid, home mortgage interest you paid, gifts to If NO, generally speaking, you should take
charity, gambling losses and expenses incurred in gambling activities (to the standard deduction if eligible. For further
the extent of gambling winnings) and work related expenses for disabled explanation see exceptions in Publication
individuals that enables them to work. 502, Medical and Dental Expenses.
Note: Casualty and theft losses are beyond the scope of VITA/TCE.
Were the medical and dental expenses paid by an employer under a pre­ If YES, you can’t deduct reimbursed expens­
tax plan (not included in Box 1 of the taxpayer’s Form W-2) or were the es. Go to Step 4.
expenses reimbursed by an insurance company? If NO, you can claim these expenses. Go to
Step 3.
Were the medical and dental expenses more than 7.5% of your adjusted If YES, you can claim qualified expenses. Go
gross income? to Step 4.
Note: You can include medical and dental bills you paid for: If NO, you can’t deduct these expenses. Go
• Yourself and your spouse to Step 4.
• All dependents you claim on your return
• Your child whom you don’t claim as a dependent because of the rules
for children of divorced or separated parents
• Any person you could have claimed as a dependent on your return
except that person received $4,400 or more of gross income or filed a
joint return
• Any person you could have claimed as a dependent except that you,
or your spouse if filing jointly, can be claimed as a dependent on
someone else’s 2022 return
Were the following taxes you paid imposed on you: state and local general If YES, go to Step 5.
sales tax, state or local income tax, real or personal property taxes? If NO, you can’t claim this expense as a
Note: The total amount of these taxes is limited to $10,000 ($5,000 MFS) deduction because you weren’t obligated to
per return. 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 13.
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 13.

F-3
 Interview Tips – Itemized Deductions (continued)
Step Probe/Ask the taxpayer: Action
Did you pay the mortgage interest in this If YES, go to Step 9.
tax year? If NO, you can’t take the mortgage interest
deduction. Go to Step 13.
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 Mort­
gage Interest Fully Deductible” in Publication
936, Home Mortgage Interest Deduction, to
determine what is deductible. Go to Step 13.
See Note 4
Did you pay premiums in 2022 for qualified mortgage insurance for a If YES, you can take a deduction for qualified
home acquisition debt that was issued afer 2006? mortgage insurance as home mortgage interest
with AGI limitations if the provision is extended
for 2022. See Publication 4491-X.
If NO, you can’t take a deduction for qualified
mortgage insurance as home mortgage interest.
Go to Step 11.
Did you pay points to obtain a home mortgage (on a main home or If YES, follow the “Are My Points Fully Deduct­
second home or home improvement loan or to refinance your home)? ible This Year” flowchart in Publication 936 and
then go to Step 12. See Note 1.
If NO, go to Step 12.

Did you have home equity interest that was used to buy, build, or If YES, your home equity interest is deductible.
improve your home? If NO, go to Step 13.
Did you make a cash contribution to a qualified organization? If YES, you must have a written record from
that particular organization, and then go to Step
14.
If NO, go to Step 14.
Did you make a noncash donation to a qualified organization? If YES, advise the taxpayer that generally he or
Note: Generally the value of a donation is the lesser of your cost or she must have a written receipt from that particu­
fair market value. lar organization. Go to Step 15. See Note 2.
If NO, Go to Step 15.
Is the total of all noncash donations $500 If YES, see Note 3 for more details.
or less? If NO, this is beyond the scope of VITA/TCE
unless certified in Military. Refer taxpayer to a
professional tax preparer.
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.

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).

3. For more details on charitable contributions, see Publication 526, Charitable Contributions. To
search for qualified organizations see IRS.gov/TEOS.

4. A Homeowner Assistance Fund (HAF) payment is a qualified disaster relief payment and is not
included in the homeowner’s gross income. Eligible homeowners who received a Homeowner
Assistance Fund (HAF) payment may use a safe harbor to calculate the homeowner’s itemized
deduction for qualified mortgage interest expenses and/or qualified real property tax expenses, as
applicable. See Revenue Procedure 2021-47 details.
F-4
 Schedule A – Itemized Deductions

Federal Section>Deductions>Itemized Deductions>Medical and Dental Expenses

If MFS and spouse itemizes, tax­ Select to enter medical expenses. Select to enter taxes not entered
payer must also itemize. Standard Do not include any medical insur­ elsewhere in the software.
deduction can’t be used. It doesn’t ance included in the Self-Employed
matter which spouse files first. Select Health Insurance Deduction.
Use Standard or Itemized
Deduction then select the option
Must itemize because spouse
itemized.

Personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary
purpose of preventing the spread of coronavirus are deductible medical expenses. The cost of
home testing for COVID-19 is also an eligible medical expense.

F-5
 Schedule A – Itemized Deductions (continued)

Schedule A Deductible and Nondeductible Medical Expenses

You can include: You can’t include:
• Bandages • Medical and hospital • Baby sitting and childcare • Medical insurance
• Birth control pills insurance premiums • Bottled water included in a car
prescribed by your doctor • Nursing services • Contributions to Archer insurance policy
• Body scan • Oxygen equipment and MSAs (see Pub. 969) covering all persons
oxygen injured in or by your car
• Braille books • Diaper service
• Part of life-care fee • Medicine you buy
• Breast pump and supplies • Expenses for your general
paid to retirement home without a prescription
• Capital expenses health (even if following
designated for medical your doctor’s advice) • Nursing care for a
for equipment or
care such as——Health club healthy baby
improvements to your
home needed for medical • Physical examination dues—Household help • Prescription drugs you
care (see Worksheet • Pregnancy test kit (even if recommended brought in (or ordered
A, Capital Expense by a doctor)—Social shipped) from another
• Prescription medicines
Worksheet, in Pub. 502) activities, such as dancing country, in most cases
(prescribed by a doctor)
• Diagnostic devices and insulin or swimming lessons— • Nutritional supplements,
Trip for general health vitamins, herbal
• Expenses of an organ • Psychiatric and
improvement supplements, “natural
donor psychological treatment
• Flexible spending account medicines,” etc., unless
• Eye surgery (to promote • Social security tax, recommended by a
reimbursements for
the correct function of the Medicare tax, FUTA, and medical practitioner
medical expenses (if
eye) state employment tax for as a treatment for
contributions were on a
• Fertility enhancement, worker providing medical a specific medical
pre-tax basis)
certain procedures care (see Wages for condition diagnosed by a
nursing services below) • Funeral, burial, or
• Guide dogs or other cremation expenses physician
animals aiding the blind, • Special items (artificial • Surgery for purely
limbs, false teeth, • Health savings account
deaf, and disabled cosmetic reasons
eyeglasses, contact payments for medical
• Hospital services fees (lab expenses • Toothpaste, toiletries,
work, therapy, nursing lenses, hearing aids,
• Operation, treatment, or cosmetics, etc.
services, surgery, etc.) crutches, wheelchair, etc.)
medicine that is illegal • Teeth whitening
• Lead-based paint removal • Special education for
mentally or physically under federal or state law • Weight-loss expenses
• Legal abortion • Life insurance or income not for the treatment of
disabled persons
• Legal operation to prevent protection policies, or the treatment of obesity
• Stop-smoking programs
having children such as a policies providing payment or other disease
vasectomy or tubal ligation • Transportation for needed
for loss of life, limb, sight,
medical care
• Long-term care contracts, etc.
qualified • Treatment at a drug or
• Maternity clothes
alcohol center (includes
• Meals and lodging
meals and lodging
provided by a hospital
provided by the center)
during medical treatment
• Wages for nursing services
• Medical services fees
(from doctors, dentists, • Weight loss, certain
surgeons, specialists, and expenses for obesity
other medical practitioners)
• Medicare Part D premiums

You can’t include in medical expenses amounts you pay for controlled substances that aren’t legal
under federal law, even if such substances are legalized by state law.

F-6
 Schedule A – Itemized Deductions (continued)

Taxpayers can deduct only the

amount of unreimbursed medical and
dental expenses that exceed 7.5% of
their Adjusted Gross Income (AGI).
If taxpayer has medical insur­
ance through the Marketplace,
remember to adjust the total pre­
mium after the PTC is calculated.

To enter multiple
expenses of a single
type, click on the small calculator
icon beside the line. Enter the
first description, the amount, and
Continue. Enter the
information for the next item.
They will be totaled on the input
line and carried to Schedule A.

Enter number of miles. Stan­

dard mileage rate for medical
purposes is 18 cents per mile
from January 1 through June 30
and 22 cents per mile from July 1
through December 31.

Qualified long-term care premi­

ums up to the amounts shown
below can be included as medical
expenses on Schedule A, or in
calculating the self-employed
health insurance deduction.
• Age 40 or under: $450
• Age 41 to 50: $850
• Age 51 to 60: $1,690
• Age 61 to 70: $4,510
• Age 71 and over: $5,640
The limit on premiums is for each
person.

Medical and dental floor percentage is 7.5%. Some senior residences (nursing homes) have an
amount in the monthly cost which is a medical expense. Taxpayers can include in medical expenses
the cost of medical care in a nursing home, home for the aged or similar institution. This includes the
cost of meals and lodging if the principal reason for being there is to get medical care.

You can include parking fees and tolls even when you use the standard mileage rate.

F-7
 Schedule A - Taxes You Paid

The itemized deduction for state and local taxes and sales and property taxes is limited to a
combined total deduction of $10,000 ($5,000 if Married Filing Separately).

Enter amount paid with last

year’s state return and any
other state and local income tax
payments not entered elsewhere.
Mandatory contributions to
state disability, paid family leave
programs, and certain other state
programs qualify as state income
taxes and should be included
in the additional state and local
income tax box if not automati­
cally carried there by TaxSlayer.
Sometimes these amounts are
reported on Form W-2, Box 14.
See Instructions for Schedule A
for details.

Click here to open the sales tax

worksheet. See the next page
for details.
If real estate taxes are only
reported on Form 1098, enter
them on the Mortgage Interest
Reported on the 1098 screen.

Otherwise, calculate the total real

estate taxes and enter in the Real
Estate Taxes box.
Enter vehicle license registra­
tion fee if based on value (ad
valorem) under Personal Property
taxes.
If taxpayers wish to deduct
their foreign income taxes (in­
stead of claiming a credit) enter
in Other Taxes and describe as
“Foreign Income.”

If taxpayers purchased or sold a Taxes you cannot deduct: utilities,

home in the tax year, they may fees/licenses (drivers, marriage,
not be able to deduct all Real dog); assessments for improve­
Estate Taxes. See Publication 17, ments that increase property
“Real Estate Taxes” section, for value; assessments for services
more information. to the property (sewer, trash
collection, etc.).

The following items aren’t deductible on Schedule A: Federal income and excise taxes, Social
Security or Medicare taxes, federal unemployment (FUTA), railroad retirement taxes (RRTA),
customs duties, federal gift taxes, per capita taxes, or foreign real property taxes.

F-8
Schedule A - Sales Tax Deduction
If the taxpayer has a large
amount of nontaxable income,
calculate their sales tax deduction
using the IRS sales tax deduction
calculator. See the link to the IRS
sales tax deduction calculator at
the bottom of the page. The cal­
culator adds nontaxable income
to AGI to give the taxpayer a
larger sales tax deduction. Use
the override button to enter the
amount calculated.

If not using the override feature,

enter the ZIP code and number
of days for TaxSlayer to calculate
the deduction.

If using the override feature, leave all

other fields on the Sales Tax Deduction
screen blank.

Leave these blank if you want

the software to use the default
rates.
If not using the override fea­
ture, enter sales tax here for
large items (such as a car) if the
taxpayer purchased any during
the year.
Link to the IRS sales tax de­
duction calculator.

F-9
 Schedule A - Itemized Deductions (continued)
Select for mortgage interest
reported on Form 1098. Enter
amount from Form 1098, Box 1
(and Box 2, if applicable).
Private mortgage insurance
premiums are not deductible
for 2022 at the time this pub­
lication was printed. Congress
may enact additional legislation.
Any changes will be reflected in
Publication 4491-X, VITA/TCE
Training Supplement, available in
mid-January.
The deduction for home
equity debt is
disallowed as a
mortgage interest deduction
unless the home equity debt
was used to build, buy, or
substantially improve the
taxpayer’s qualified residence.

A reverse mortgage is a
loan where the lender
pays you (in a lump
sum, a monthly advance, a line
of credit, or a combination of all
three) while you continue to live
in your home. With a reverse
mortgage, you retain title to
your home. Depending on the
plan, your reverse mortgage
becomes due with interest
when you move, sell your
home, reach the end of a
preselected loan period, or die.
Because reverse mortgages
are considered loan advances
and not income, the amount
For mortgage acquisition debt secured after December 15, 2017, the you receive isn’t taxable. Any
amount of interest you can deduct is on no more than $750,000 of interest (including original issue
debt used to buy, build, or substantially improve your principal home discount) accrued on a reverse
and a second home ($375,000 in the case of married taxpayers filing mortgage is considered interest
separate tax returns) for tax years 2018 through 2025. If the taxpayer on home equity debt and isn’t
secured a mortgage for acquisition debt on or before December 15, deductible.
2017, the new tax law doesn’t change the amount of the deductible If there are multiple mortgages,
mortgage interest. Deductible interest remains limited to mortgage make additional Schedule A
interest on up to $1 million ($500,000 MFS). Interest entries.
Points from refinancing must be spread over the life of the mortgage Enter real estate taxes on the
unless used to remodel (see section in Publication 936, Home 1098 screen if all real estate
tax paid was reported on the
Mortgage Interest Deduction, labeled “Points”). Enter loan origination Form 1098. Otherwise, enter on
fee from closing statement as points not reported on Form 1098 if not the Other Taxes Paid screen.
included as points on Form 1098.
F-10
 Schedule A - Itemized Deductions (continued)
Enter amounts given by
cash or check under Cash
Gifts to Charity. See
Publication 526 for definitions.
Enter the value of noncash items
(including miles (14 cents per
mile) driven in service to a charity)
donated under Noncash Gifts to
Charity. Be careful to list them
separately.
If noncash contributions are
greater than $500, Form 8283,
Noncash Charitable Contributions
must be completed and this form
is Out of Scope (In Scope for
Military certification). Certain
qualified contributions made for
relief efforts in disaster areas are
not subject to the AGI limitation.
See Publication 976, Disaster
Relief.

Although you can’t deduct

the value of your services
given to a qualified
organization, you may be able to
deduct some volunteer expenses
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.

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.

F-11
 Schedule A - Miscellaneous Deductions

No miscellaneous itemized deductions will be allowed for job expenses and certain miscellaneous
deductions subject to the 2% limitation. These expenses may be deductible on state returns.

Gambling losses and expenses

incurred in gambling activities
up to the amount of winnings are
deducted here. You can’t deduct
gambling losses that are more
than the taxpayer’s winnings.

A retired taxpayer who contributed to the cost of an annuity can exclude from income
a part of each payment received as a tax-free return of the investment. If the retired
taxpayer dies before the entire investment is recovered tax free, any unrecovered invest­
ment can be deducted on the retired taxpayer’s final income tax return in the unrecovered
investment pension box.

Unrecovered Investment in pension = Total Employee Contribution less amount recovered using
Simplified Method prior to death.

Nondeductible expenses: commuting; home repair; rent; loss from sale of home; personal legal
expenses; lost/misplaced cash or property; fines/penalties; safe deposit box rental; tax return
preparation; investment fees and expenses.

F-12
 Qualified Business Income Deduction

If taxable income (before the QBI deduction) exceeds $340,100 for married filing joint returns,
$170,050 for all other returns, the return is Out of Scope.

For tax years beginning after December 31, 2017, and before January 1, 2026, there is a deduction for “pass
through” businesses. Sole proprietors are categorized as “pass through” businesses.

• A sole proprietor that reports a profit on Schedule C will be able to take up to 20% of qualified business
(QBI) as a deduction on the tax return.
• The calculations on Schedule C and Schedule SE are not affected by the deduction.
• Taxable income is not reduced below zero by the 20% deduction.
• The 20% deduction is limited for higher income.
• The deduction will also be limited for specified service trades or businesses. Refer to Form 1040
instructions for more information.
For taxable income that does not exceed the applicable threshold amount, the QBI deduction is the lesser of:
• 20% of qualified business income (for example, it is the net profit reported on a Schedule C plus 20%
of qualified realestate investment trust (REIT) section 199A dividends) or
• 20% of taxable income (equals adjusted gross income minus the applicable standard or itemized
deduction) minus net capital gains and qualified dividends. See Form 8995 instructions for more
details.
Qualified business income is reduced by the deductible part of the SE tax, the SE health insurance deduction
and by contributions to qualified retirement plans. The deduction is claimed on Form 1040 and can be taken
in addition to the standard deduction or itemized deduction.

The 20% deductions for sole proprietors and qualified REIT Section 199A dividends are in scope; however,
taxpayers with a qualified business net loss carryforward from a prior year or publicly traded partnership are
Out of Scope.

See Publication 535, Business Expenses, for additional information.

F-13
Notes

F-14
Tab G: Nonrefundable Credits

G-i
G-ii
 Nonrefundable Credits

Federal Section>Deductions>Credits Menu

Select for Form 1116, Foreign

Tax Credit
Select for Form 2441, Child and
Dependent Care Expenses.
See Child and Dependent Care
Credit Expenses/Screening Sheet
later in this tab.
Select for Form 8863 Education
Credits. See Tab J, Education
Benefits
Select for Form 8880, Credit for
Qualified Retirement Savings
OOS Contributions. Complete this
screen if taxpayer (or spouse)
OOS made any contributions to a quali­
fied retirement plan.
OOS
Select for Form 5695, Resi­
dential Energy Credit. See Tab
EXT, Legislative Extenders for
more information.

EIC checklist is not required for

OOS VITA/TCE.
If taxpayer qualifies for the
OOS credit for the elderly or the
OOS disabled, open Schedule R. Refer
to the Credit for the Elderly or the
OOS Disabled - Screening Sheet later
in this tab.
OOS
OOS

Nonrefundable credits can’t exceed the taxpayer’s federal income tax.

Form 8863

Federal Section>Deductions>Credits Menu>Education Credits; or Keyword "8863". For complete

education credit information refer to Tab J, Education Benefits

G-1
 Child Tax Credit

Make sure the taxpayer's credit hasn't been disallowed previously. If previously disallowed, see Form
8862, Information To Claim Certain Credits After Disallowance, in Tab I, Earned Income Credit.
This is a credit intended to reduce tax. This part of the credit isn’t refundable. The credit is up to $2,000 per
qualifying child and calculates automatically.

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 Tab L, Resident/NR Alien.
3. Child must be 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 Exception to Time Lived with You
section on the Child Tax Credit chart on the following page.)
7. Must have a Social Security number that is valid for employment issued before the due date of the
return, including extensions.
* A national is an individual who, although not a U.S. citizen, owes his or her allegiance to the United States. U.S. nationals include American
Samoans and Northern Mariana Islanders who chose to become U.S. nationals instead of U.S. citizens.
**Refer to the tables in Tab C, Dependents, for the rules governing who may be claimed as a dependent.

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.
Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents, is intended to be filed
by all taxpayers claiming the child tax credit, the additional child tax credit, or the credit for other dependents.
See Tab C, Dependents, for additional information (including definitions and special rules relating to an
adopted child, foster child, or qualifying child of more than one person).

G-2
 Additional Child Tax Credit (ACTC) – General Eligibility
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 $2,500 of taxable earned income may be eligible for the additional child tax
credit if they have at least one qualifying child.
• Taxpayers with three or more children may also be eligible for additional child tax credit regardless of
their income.
• Limited to $1,500 per qualifying child.

The IRS cannot issue refunds before mid-February for returns that claim the earned income credit
(EIC) or the ACTC.

Taxpayers may not file an amended return to retroactively claim the additional child tax credit for a
qualifying child if a valid SSN for the child is issued after the due date of the tax return.

(International Certification only) If you claim the foreign earned income exclusion, the housing
exclusion, or the housing deduction on Form 2555, you can’t claim the additional child tax credit.

See Disallowance of Certain Credits in Tab I, Earned Income Credit, if the taxpayer received a letter
saying they had to complete Form 8862.

G-3
 Table 1: Does Your Qualifying Child Qualify You for the Child Tax
Credit or Credit for Other Dependents?
Remember to apply the steps for each dependent. To claim the child tax credit and/or the credit for other
dependents, you can’t be a dependent of another taxpayer.

Step Probe/Ask the taxpayer: Action

Is this person your qualifying child dependent? See Tab C, Dependents, If YES, go to Step 2.
Table 1: All Dependents If NO, you can’t claim the child tax credit for
this person. This person may qualify for the
credit for other dependents, go to Table 2.
Did the child have an SSN, ITIN, or adoption taxpayer identification If YES, go to Step 3.
number (ATIN) issued on or before the due date of your return (including If NO, you can’t claim the child tax credit or
extensions)? (Answer "Yes" if you are applying for an ITIN or ATIN for the the credit for other dependents for this child.
child on or before the due date of your return (including extensions.)
Was the child a U.S. citizen, U.S. national, or U.S. resident alien? (See Pub. If YES, go to Step 4.
519, U.S. Tax Guide for Aliens, for the definition of a U.S. national or U.S. If NO, you can't claim the child tax credit or
resident alien. If the child was adopted, see Exception to citizen test, below.) the credit for other dependents for this child.
Was the child under age 17 at the end of 2022? If YES, go to Step 5.
If NO, you can claim the credit for other
dependents for this child.
Does this child have a Social Security Number valid for employment If YES, you can claim the child tax credit for
issued before the due date of the return (including extensions)? this person. Use Schedule 8812 to calculate
the credit.
If NO, you can claim the credit for other
dependents for this child.

Modified Adjusted Gross Income Limits

• Married filing jointly - $400,000
• All other filing statuses - $200,000

Children of Divorced or Separated Parents

If the noncustodial parent can claim the child as a dependent, the noncustodial parent can also claim the
child as a qualifying child for the child tax credit, the credit for other dependents, or the additional child tax
credit.

Exception to Citizen Test

If you are a U.S. citizen or U.S. national and your adopted child lived with you all year as a member of your
household, that child meets the citizen test.

G-4
 Credit for Other Dependents
There is a $500 credit for other dependents who do not qualify for the child tax credit. The dependent must
be a U.S citizen, U.S. national, or resident of the U.S. The dependent must have a valid identification number
(ATIN, ITIN, or SSN).

The $500 nonrefundable credit is available for dependents who don’t qualify for the child tax credit, such
as children who are age 17 and above, dependents with other relationships (such as elderly parents), or
children who do not have a valid SSN. Taxpayers cannot claim the credit for themselves (or a spouse if
Married Filing Jointly).

Dependents who are not U.S. citizens or U.S. nationals, but are residents of Canada or Mexico do
not qualify for either the Child Tax Credit or the Credit for Other Dependents.

If previously disallowed, see Form 8862, Information To Claim Certain Credits After Disallowance, in
Tab I, Earned Income Credit.

Table 2: Does Your Qualifying Relative Qualify You for the Credit for
Other Dependents?

Step Probe/Ask the taxpayer: Action

Is this person your qualifying relative dependent? See Tab C, Dependents, If YES, go to Step 2.
Table 2: Qualifying Relative Dependents. If NO, you can't claim the credit for other
dependents for this person.

Did your qualifying relative have a SSN, ITIN, or ATIN issued on or before If YES, go to Step 3.
the due date of your 2022 return (including extensions)? (Answer “Yes” if If NO, you can’t claim the credit for other
you are applying for an ITIN or ATIN for the qualifying relative on or before dependents for this person.
the return due date (including extensions).
Was your qualifying relative a U.S. citizen, U.S. national, or U.S. resident If YES, you can claim the credit for other
alien? dependents for this person.
If NO, stop. You can’t claim the credit for
other dependents for this person.

G-5
 Form 1116 – Foreign Tax Credit

Federal Section>Deductions>Credits Menu>Foreign Tax Credit; or Keyword “1116”

ONLY the Simplified Limitation Election for the foreign tax credit is in scope for Both the tax return preparer and
Advanced certification. To be eligible for this election, qualified foreign taxes must quality reviewer must have Inter­
be $300 ($600 if MFJ) or less, all foreign source income is passive category (such national certification to prepare
as interest and dividends) and taxpayer meets the other requirements as explained Form 1116.
in Instructions for Form 1116. Do not enter amounts from Forms 1099-INT, Box 6, or
1099-DIV, Box 7. The software will include these in the foreign tax credit calculation.
Foreign taxes from Forms K-1 should be entered here.

If the taxpayer has a carryback or a carryforward of unused foreign tax, refer taxpayer to a
professional tax preparer.

Foreign income tax is also eligible to be claimed on Schedule A as an itemized deduction. While that
is an option, foreign tax claimed as a credit is generally more advantageous for taxpayers.

G-6
Form 1116 – Foreign Tax Credit (continued)

Out of Scope

Passive and General limited

income are in scope with Inter­
national Certification only.
Select the appropriate category.
If taxpayer has income in more
than one category or from more
than one country, another form
can be added later.

Select country of residence

Indicate whether the foreign

tax was actually paid during
the tax year (paid) or if the tax
was billed in one year but paid
in another (accrued). A taxpayer
using the cash basis can choose
to use either the cash or accrual
method to determine the foreign
tax credit. However, if the accrual
method is chosen, the taxpayer
must continue to use the accrual
method for the foreign tax credit
on all future returns.

G-7
Form 1116 – Foreign Tax Credit (continued)

Select the country that imposed

the tax.
Enter the gross income (not
the tax) of this category type
where indicated. Enter income
from this category type only, not
total income. Do not enter any
income excluded by Form 2555.

Enter the gross income of this

category type where indicated.
Enter income from this category
type only, not total income.
Include any income excluded by
Form 2555, but only if that in­
come is of the category selected
(passive or general income).

If your gross foreign source

income (including income
excluded on Form 2555) does not
exceed $5,000, you can allocate
all your interest expense to U.S.
source income. Otherwise, de­
ductible home mortgage interest
(including points and qualified
mortgage insurance premiums) is
apportioned using a gross income
method. See Instructions for
Form 1116.

Enter the date the tax was paid

or accrued.
Select the itemized amounts
boxes to enter taxes paid in
foreign currency in the appropri­
ate category.
Generally, you must enter the
amount of foreign taxes, in both
the foreign currency denomina­
tion(s) and as converted into U.S.
dollars, that relate to the category
of income checked (Passive or
General limited income).

Enter the taxes paid (in U.S.

dollars) in the appropriate
category.

G-8
 Child and Dependent Care Credit Expenses
To determine if a taxpayer qualifies for the Credit for Child and Dependent Care Expenses, ask the taxpayer
for information from the screening sheet on the next page.

Who is a qualifying person?

• A qualifying child who was under the age of 13 when the expenses were incurred and who can be
claimed as a dependent, see the first caution below.
• Any person who was incapable of self-care* whom the taxpayer can claim as a dependent or could’ve
been claimed as a dependent except that the person had gross income of more than $4,400 or filed a
joint return or that the taxpayer or spouse, if married filing jointly, could be claimed as a dependent on
someone else’s 2022 return.
• A spouse who was physically or mentally incapable of self-care*.
*Incapable of self-care - persons who can't dress, clean, or feed themselves. Also, persons who must have constant attention to prevent them
from injuring themselves or others.
• The qualifying person must live with the taxpayer more than 1/2 the year.
See Publication 503, Child and Dependent Care Expenses, for special rules regarding divorced or separated
parents or parents who live apart.

Qualified work-related expenses

• Expenses must be paid for the care of the qualifying person to allow the taxpayer and spouse, if
married, to work or look for work.
• The care includes the costs of services for the qualifying person’s well-being and protection.
• Expenses to attend kindergarten or a higher grade aren’t an expense for care.
• Expenses for summer day-camp are qualifying, but those for overnight camp aren’t.

Refer to Tab C, Dependents, for the rules governing who may be claimed as a dependent.

Only the custodial parent may claim the child and dependent care credit even if the child is being
claimed as a dependent by the noncustodial parent under the rules for divorced or separated
parents.

If Dependent Care Benefits are listed in Box 10 of a Form W-2, Wage and Tax Statement, then the
taxpayer MUST complete Form 2441, Child and Dependent Care Expenses. If Form 2441 isn’t
completed, the Box 10 amount is added as taxable wages.

If the qualifying child turned 13 during the tax year, the qualifying expenses include amounts incurred
for the child while under age 13 when the care was provided.

Dependent care benefits can include amounts paid for items other than the care of your child (such
as food and schooling) only if the items are incidental to the care of the child and can't be separated
from the total cost.

G-9
 Credit for Child & Dependent Care Expenses – Screening Sheet
Step Probe/Ask the taxpayer: Action
Was the care for one or more qualifying persons? See prior page for YES – Go to Step 2
definition. NO – You CAN’T claim the child and depen­
dent care credit ²
Did you (and your spouse if applicable) have earned income¹ during the YES – Go to Step 3
year? Refer to the Earned Income Table in Tab I, Earned Income Credit. NO – You CAN’T claim the child and depen­
dent care credit ²
Did you pay the expenses to allow you to work or look for work? See prior YES – Go to Step 4
page for qualifying expenses. NO – You CAN’T claim the child and depen­
dent care credit ²
Were your payments made to someone you or your spouse could claim as YES – You CAN’T claim the child and depen­
a dependent? dent care credit ²
NO – Go to Step 5
Were your payments made to your spouse or to the parent of your child YES – You CAN’T claim the child and depen­
who is your qualifying person? Answer NO if your qualifying child is a dent care credit ²
disabled person over age 13. NO – Go to Step 6
Were your payments made to your child who was under the age of 19 at YES – You CAN’T claim the child and depen­
the end of the year? dent care credit ²
NO – Go to Step 7
Are you single? YES – Go to Step 10
NO – Go to Step 8
Are you filing a joint return? YES – Go to Step 10
NO – Go to Step 9
Do you meet the requirements to be considered unmarried? YES – Go to Step 10
NO – You CAN’T claim the child and depen­
dent care credit ²
Do you know the care provider’s name, address, and identifying number? YES – Go to Step 11
Or did you make a reasonable effort to get this information? (See Due NO – You CAN’T claim the child and depen­
Diligence in Publication 503.) dent care credit ²
Did you have only one qualifying person and exclude or deduct at least YES – You CAN’T claim the child and depen­
$3,000 of dependent care benefits? ³ dent care credit ²
NO – You CAN claim the child and depen­
dent care credit. Fill out Form 2441

Footnotes
¹ Your spouse is treated as having earned income for any month that he or she is a full-time student, or physically or mentally not able to care for
himself or herself. (Your spouse also must live with you for more than half the year.) If the taxpayer's spouse died during the year and he/she files
a return as a surviving spouse, the taxpayer may, but isn't required to, take into account the earned income of the spouse who died during the
year.
² If you had expenses that met the requirements for 2021, except that you didn’t pay them until 2022, you may be able to claim those expenses in
2022.
³ If two or more, the amount you can exclude or deduct is limited to a total of $6,000.

G-10
Form 2441 – Credit for Child and Dependent Care Expenses

Federal Section>Deductions>Credits Menu>Child Care Credit; or Keyword “2441”

Add a Child Care Provider.

Next, enter the total amount

of qualified expenses paid for
each dependent. Select Edit
next to the appropriate depen­
dent. Remember, it's possible for
one qualifying person to have 0
expenses and another qualifying
person have expenses exceeding
$3,000. The $6,000 limit applies.

The tax return can't be filed electronically without a valid Employer Identification Number or Social
Security Number for the child care provider.

Only check the “qualifying person had no expenses” box if the person is both a qualifying person for
the credit and had no expenses.

G-11
 Form 2441 – Credit for Child and Dependent Care
Expenses (continued)

Form 2441 Page 2:

• If the taxpayer or spouse is a full-time student or
disabled, enter $250 per month ($500 per month if more than one qualifying person
was cared for during the year).
• If the person also worked during the month, use the higher of $250 (or $500) or
his or her actual earned income for that month.

G-12
 Form 2441 – Credit for Child and Dependent Care
Expenses (continued)

If the taxpayer is a
surviving spouse and did
not remarry, add $3,000 ($6,000
if there is more than one
qualifying child).

Select Yes if the taxpayer is

MFS but can be considered
unmarried for the purposes of
claiming the credit.

Only enter dependent care benefits not reported on a Form W-2.

Foreign earned income and the foreign housing exclusion are subtracted from wages when figuring
the credit. Subtract any amount earned while incarcerated or on work release.

Both spouses must have earned income in order to claim the credit. Complete the additions to
income for taxpayer if the taxpayer or spouse was either a full-time student or disabled. If the
taxpayer has a filing status of surviving spouse, you may, but aren't required to, take into account the
earned income of your spouse who died during the year.

G-13
 Retirement Savings Contributions Credit – Screening Sheet
Step Probe/Ask the taxpayer: Action
Did you make a voluntary contribution or deferral to an IRA or other qualified YES – Go to Step 2
plan for 2022?1 NO – Not qualified for credit
Is AGI $34,000 or less ($51,000 if head of household, $68,000 if married YES – Go to Step 3
filing jointly)? NO – Not qualified for credit
Were you born before January 2, 2005? YES – Go to Step 4
NO – Not qualified for credit
Are you being claimed as a dependent on someone else’s tax return for 2022? YES – Not qualified for credit
NO – Go to Step 5
Were you a full-time student2 during 2022? YES – Not qualified for credit
NO – Qualified for credit

Footnotes
1
Plans that qualify are listed on Form 8880. Answer yes if the taxpayer will make a qualifying IRA contribution for tax year 2022 by the due date of
the return.
2
You were a student if during any part of 5 calendar months of 2022 you:
- Were enrolled as a full-time student at a school, or
- Took a full-time, on-farm training course given by a school* or a state, county, or local government agency.
*A school includes technical, trade and mechanical schools. It does not include on-the job training courses, correspondence schools, or schools
offering courses only through the Internet.

Important Reminders for Retirement Savings Contributions Credit

• Be sure to look at the taxpayer’s Form(s) W-2. An entry in box 12 or an “X” in the Retirement box is an
indicator that the taxpayer may be eligible for this credit. A full description of all codes used in box 12
can be found in Instructions for Forms W-2 and W-3, Transmittal of Wage and Tax Statements.
• An entry in box 14 on the Form W-2 may also indicate a contribution to a state retirement system.
In TaxSlayer, if the contribution qualifies, from the drop down menu in Box 14 of Form W-2, select
Retirement (Not in Box 12) Carry to Form 8880. If these are treated as employer contributions they
aren’t eligible for the credit. See Instructions for Form W-2.
• If the taxpayer seems to qualify for the credit, be sure to visit the Form 8880 entry screen in the Credits
Menu and address any necessary questions there.
• A contribution to a traditional or Roth IRA qualifies for this credit, but may not appear on any taxpayer
document. Remember to review the expenses section on page 2 of the Form 13614-C, Intake/Interview
& Quality Review Sheet, and ask taxpayers if they made any IRA contributions.
• Some distributions reduce the eligible contributions for this credit. In addition to distributions for the
current year as shown on Forms 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-
Sharing Plans, IRAs, Insurance Contracts, etc., be sure to ask about distributions from the two prior
years or between January 1 and the tax filing deadline.
• See a list of distributions later in this tab that don’t reduce the eligible contributions for this credit.
• Form 8880, Credit for Qualified Retirement Savings Contributions, is used to claim this credit.
• If taxpayer (or spouse if MFJ) is a full-time student, be sure to mark it in the Personal Information
Section in the software. This credit is not available to full-time students.

G-14
 Retirement Savings Contributions Credit (continued)

Federal Section>Deductions>Credits Menu>Retirement Savings Credit; or Keyword “8880”

Open the Retirement Savings Contributions Credits screen if the taxpayer meets eligibility criteria and any of
the following are true:

• The taxpayer(s) make a traditional IRA or a Roth IRA contribution before the filing deadline.
• The taxpayer or spouse’s Form W-2 includes:
• Box 12 entries of D, E, F, G, H, S, AA, BB, EE
• Box 14 amounts that are voluntary retirement contributions or marked as “Qualifies for Form 8880”
• The designated beneficiary of an Achieving a Better Life Experience (ABLE) account made a
contribution to their ABLE account.
Verify total contribution amounts with the taxpayer. Total IRA contributions cannot exceed the lesser of total
compensation or the annual limit. See Tab E, Adjustments for limits.

Internal Revenue Code Section 414(h)(2) provides that any plan established by a governmental unit,
where the contributions of employing units are designated employee contributions, but the employer
“picks up” the contributions, the contributions are treated as employer contributions, not voluntary
contributions made by the employee. They do not qualify for the credit.

Certain distributions
received after 2019 and
before the due date
(including extensions) of your
2022 tax return from any of the
following types of plans are
subtracted from contributions:
• Traditional or Roth IRAs
• 401(k), 403(b), governmental
457, 501(c)(18)(D), SEP, or
DO NOT USE SIMPLE plans
• Qualified retirement plans
(including the federal Thrift
Savings Plan).

Distributions entered on Form 1099-R will be calculated For taxpayers with a 2020 Coronavirus-related distribu­
by the software. Any other distributions from the 2 prior tion who spread the income over 3 years:
years or between January 1 and the tax filing deadline must • Enter 1/3 of the 2020 coronavirus distribution
be entered manually where indicated. to be included in income for 2022 on the Form
8915-F
TaxSlayer cannot identify which current tax year distribu­ • Enter the entire amount of the 2020 coronavirus
tions are relevant, so it automatically reports all tax year distribution on the line marked 1 above, and
distributions. If one of these distributions is listed on the • Enter the 1/3 that's included in income for 2022
following page as a distribution that should not be includ­ as a negative number on the line marked 2
ed (e.g., military pensions), go to the Form 1099-R entry above.
screen for that distribution and check the box labeled "Does This is the only time this line should be used.
not qualify for Form 8880."

G-15
 Retirement Savings Contributions Credit (continued)
Don’t include any of the following as distributions. See Tab D, Income, Form 1099-R Box 7 Distribution
Codes.

• Distributions from a military retirement plan (other than the federal TSP)
• Distributions not taxable as the result of a rollover or a trustee-to-trustee transfer
• Distributions from your eligible retirement plan (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 IRC 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

The credit is calculated using the following percentages:

If AGI is- And your filing status is-

Over- But not over- Married filing jointly Head of household Single, Married filing
separately, or Qualifying
Surviving Spouse
--­ $20,050 .5 .5 .5
$20,500 $22,000 .5 .5 .2
$22,000 $30,750 .5 .5 .1
$30,750 $33,000 .5 .2 .1
$33,000 $34,000 .5 .1 .1
$34,000 $41,000 .5 .1 .0
$41,000 $44,000 .2 .1 .0
$44,000 $51,000 .1 .1 .0
$51,000 $68,000 .1 .0 .0
$68,000 --­ .0 .0 .0

G-16
 Credit for the Elderly or the Disabled – Screening Sheet
Figure A. Are You a Qualified Individual?
Use the following chart to determine if the taxpayer is eligible for the credit for the elderly or the disabled:
Step Probe/Ask the taxpayer: Action
Were you married at the end of the tax year? YES – Go to Step 2
NO – Go to Step 4
Did you live with your spouse at any time during the year? YES – Go to Step 3
NO – Go to Step 4
Are you filing a joint return with your spouse? YES – Go to Step 4
Answer YES if you qualify to be considered unmarried and NO – You aren't a qualified individual and can't take the
file as Head of Household. credit for the elderly or the disabled
Are you a U.S. citizen or resident alien? 1 YES – Go to Step 5
NO – You aren't a qualified individual and can't take the
credit for the elderly or the disabled
Were you 65 or older at the end of the tax year? YES – You are a qualified individual and may be able to
take the credit for the elderly or the disabled unless your
income exceeds the limits in Figure B
NO – Go to Step 6
Are you retired on permanent and total disability? YES – Go to Step 7
NO – You aren't a qualified individual and can't take the
credit for the elderly or the disabled
Did you reach mandatory retirement age before this year? 2 YES – You aren't a qualified individual and can't take the
credit for the elderly or the disabled
NO – Go to Step 8
Did you receive taxable disability benefits this year? YES – You are a qualified individual and may be able to
take the credit for the elderly or the disabled unless your
income exceeds the limits in Figure B
NO – You aren't a qualified individual and can't take the
credit for the elderly or the disabled

Footnotes
¹ If you were a nonresident alien at any time during the tax year and were married to a U.S. citizen or resident alien at the end of the tax year, see
the Qualified Individual section of the Credit for the Elderly or Disabled chapter in Publication 524, Credit for the Elderly or the Disabled. If you and
your spouse choose to treat you as a U.S. resident alien, answer “yes” to this question.
² Mandatory retirement age is the age set by your employer at which you would have been required to retire, had you not become disabled.

Figure B. Income Limits

(See TaxSlayer Hint on the next page)
THEN you generally can't take the credit if...
Your adjusted OR the total of your nontaxable social security
gross income and other nontaxable pension annuities or
IF you are . . . (AGI) is . . . disability income is equal to or more than . . .
single, head of household, or qualifying surviving spouse with $17,500 $5,000
dependent child
married filing a joint return and both spouses qualify in Figure A $25,000 $7,500
married filing a joint return $20,000 $5,000
and only one spouse qualifies in Figure A
married filing a separate return and you lived apart from your $12,500 $3,750
spouse for all of 2022
G-17
Be sure to include the taxpayer’s total social security benefits, regardless of the taxability, to ensure
the correct calculation of the credit. The software does not calculate this credit automatically. If the
taxpayer appears to qualify for the credit, refer to the navigation path below and answer
the questions.

Entering the Credit for the Elderly or the Disabled

Federal Section>Deductions>Credits Menu>Credit for the Elderly or Disabled; or Keyword:

“Schedule R”

Check the box if the statements above regarding the taxpayer's disability are true. Not
checking the box does not prevent the taxpayer from claiming the credit. However, they
must obtain a physician’s statement for their records. See the Instructions for Schedule
R for a sample statement.

G-18
 Entering the Credit for the Elderly or the Disabled (continued)

Enter the taxpayer’s taxable disability income, if any, Enter pension, annuity or disability benefits excluded
(such as from Form 1099-R) where indicated. from income as indicated. Do not enter Social Security
benefits. Enter Social Security income in the Social
Security SSA-1099 screen in TaxSlayer.

G-19
Notes

G-20
Tab H: Other Taxes, Payments, and Refundable Credits

H-i
H-ii
 Other Taxes

See self-employment tax below

Out of Scope

In scope only for Native

Americans receiving per capita
payments and Alaska resi­
dents receiving permanent fund
dividends.

In scope only for Alaska resi­

dents receiving permanent fund
dividends.
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. Navigate from this screen only to exclude exempt notary income from the SE Tax calculation.

Enter the net profit from a

Notary’s business on the SE
Tax input screen so that SE tax is
not computed.

Self-Employment Tax Deferral

The CARES Act allowed a self-employed taxpayer to defer payment of the employer share of Social Security
tax for tax year 2020. Half of the deferred amount must be paid on or before January 3, 2022 and the other
half by January 3, 2023. This provision is not available to claim on the tax year 2021 or 2022 return.

Unreported Social Security and Medicare Tax

Unreported Social Security and Medicare Tax comes from Form 4137, Social Security and Medicare Tax on
Unreported Tip Income, not reported on Form W-2, Wage and Tax Statement.

Federal Section>Income>W-2>Unreported tips (on W-2 below line 10); or Keyword “W-2”. If
unreported because tips were less than $20 per month, also enter at Federal Section>Other
Taxes>Tax on Unreported Tip Income; or Keyword “4137”

Self-employment tax is Social Security and Medicare taxes collected primarily from individuals who
work for themselves, similar to the Social Security and Medicare taxes withheld from the pay of most
wage earners.
The self-employment tax rate on net earnings is 15.3% (12.4% Social Security tax plus 2.9% Medicare tax).

H-1
 Other Taxes (continued)

The Social Security Administration uses the information from Schedule SE to figure a person’s
benefits under the Social Security program. Not reporting all of a taxpayer’s self-employment income
could cause their Social Security benefits to be lower when they retire. This tax applies no matter
how old the taxpayer is and even if they are already getting Social Security or Medicare.

Form 5405, Repayment of the First-Time Homebuyer Credit

Use the First-Time Homebuyer

Credit Account Look-up tool on
IRS.gov to determine the amount
of the repayment.

Federal Section>Other Taxes>Repayment of First-Time Homebuyer Credit;

or Keyword “FIRST-TIME”

Taxpayers who purchased a home in 2008 and received the First Time Homebuyer Credit (maximum $7,500
loan) started repayments in 2010 and must enter the repayment on Form 5405, Repayment of the First-Time
Homebuyer Credit. (See 5405 instructions for when it is required.)

H-2
 Form 8615, Tax for Certain Children Who Have Unearned Income
(Kiddie Tax)
Do you have to use Form 8615 to figure your child’s tax?

Step Probe / Ask the Taxpayer Action

Was the child’s unearned income, including taxable scholarships and YES – Go to Step 2
grants, more than $2,300? NO – Don’t use Form 8615 to figure the child’s tax.
Is the child required to file a tax return for 2022? See Chart B - For YES – Go to Step 3
Children and Other Dependents in Tab A. NO – Don’t use Form 8615 to figure the child’s tax.
Was the child under age 18 at the end of 2022? YES – Go to Step 8
NO – Go to Step 4
Was the child age 18 at the end of 2022? YES – Go to Step 7
NO – Go to Step 5
Was the child under age 24 at the end of 2022? YES – Go to Step 6
NO – Don’t use Form 8615 to figure the child’s tax.
Was the child a full-time student in 2022? YES – Go to Step 7
NO – Don’t use Form 8615 to figure the child’s tax.
Did the child have earned income that was more than half of his or YES – Don’t use Form 8615 to figure the child’s tax.
her support? NO – Go to Step 8
Was at least one of the child’s parents alive at the end of 2022? YES – Go to Step 9
NO – Don’t use Form 8615 to figure the child’s tax.
Is the child filing a joint return for 2022? YES – Don’t use Form 8615 to figure the child’s tax.
NO – Go to Step 10
Form 8615 must be used to figure the child’s tax. Form 8615 is in scope for Native Americans receiving per capita
payments and Alaska residents receiving permanent fund dividends. For all other purposes, Form 8615 remains
Out of Scope.

If the child’s parent chooses to report the child’s income by filing Form 8814, Parents’ Election To
Report Child’s Interest and Dividends, the child isn’t required to file a tax return. Don’t use Form
8615. (See Parent’s Election to Report Child’s Interest and Dividends.) Form 8814 is in scope for
Alaska residents receiving permanent fund dividends. For all other purposes, Form 8814 remains
Out of Scope.

H-3
 Other Taxes (continued)
Additional Tax on IRAs and Other Qualified Plans

Federal Section>Other Taxes>Tax on Early distribution; or Keyword “5329”

A 10% penalty is calculated on Form 5329, Additional Tax on Qualified Plans (Including IRAs) and Other Tax-
Favored Accounts, for early withdrawal before age 59½. If an exception applies, complete Part 1 - Additional
Tax on Early Distributions.

Advanced Certification required for this topic.

Funds distributed from a SIM­ Enter the amount not subject to Select the appropriate exception
PLE IRA in the first two years additional tax. from the drop down menu.
are subject to a 25% early distri­
bution tax. If an exception applies,
enter the amount not subject to the
tax here.

H-4
 Other Taxes (continued)
Exception codes and explanations for early distributions from IRAs 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 made on or after the date of 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) 7.5% of your adjusted gross income for the year. Expenses can also be entered on Schedule A.
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.¹
08 IRA distributions up to the amount you paid for qualified higher education expenses during the year, unless paid with tax-
free education aid or Pell grant.
09 IRA distributions made for purchase of a first home, up to $10,000 per taxpayer and paid within 120 days of distribution.
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 ². Also, enter this code if more than one exception applies.

Footnotes

¹ Medical insurance for yourself, your spouse, and your dependents (no 7.5% 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
you lost your job.
• You receive the distributions during either the year you received the unemployment compensation or the following year.
• You receive the distributions no later than 60 days after you have been reemployed.
² Distributions incorrectly indicated as early distributions by code 1, J, or S in box 7 of Form 1099-R that do not have a specific exception code,
such as distributions for the birth or adoption of a child. See Form 5329 Instructions or Publication 590-B for additional exceptions. For additional
exceptions that apply to annuities, see Publication 575, Pensions and Annuity Income.

Beginning in 2020, an IRA owner or a participant in a workplace defined contribution plan, such as a
401(k) or 403(b) plan, can withdraw up to $5,000 for the birth or adoption of a child without incurring
the usual 10% additional tax on early distributions. The distribution must be made within one year
after the child is born or the adoption is finalized and cannot be from a defined benefit plan. The term
“eligible adoptee” means any individual (other than a child of the taxpayer’s spouse) who has not attained
age 18 or is physically or mentally incapable of self-support. Additionally, if a qualified birth or adoption
distribution is received by the taxpayer, one or more contributions can be made to an eligible retirement plan
if the taxpayer is a beneficiary of that plan, the plan accepts rollover contributions, and the total of those
contributions does not exceed the amount of the qualified birth or adoption distribution.

H-5
 Additional Taxes on HSAs
Additional taxes for HSA distributions not used for qualified medical expenses are reported on Form 1040
Schedule 2, Additional Taxes. All other additional taxes on HSAs are Out of Scope. See Instructions for Form
8889, Health Savings Accounts (HSAs).

The additional 20% tax does not apply to distributions made after the account beneficiary:

• Dies,
• Becomes disabled, or
• Turns age 65

H-6
 Payments and Estimates

Federal Section>Payments & Estimates or keyword ESTIMATED PAYMENTS.

2022 Estimated Tax Payments

- Federal and/or State - Open
Federal Estimated Payments for
2022 or State Estimated Payments
and enter:
• Any refund amount from last
year that was credited toward
estimated taxes for the current
year
• Enter actual amount paid in each
quarter.
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 With­
holdings.
TaxSlayer should not calculate a
penalty. If it does, a waiver can
be requested. To remove, check
the box to request a waiver and use
reason of “To be calculated by IRS.”
See Tab K, Finishing the Return, Amount Paid with Extension - Amount to be Applied to 2023
Estimated Tax Payments page. Directly enter any payment made. Estimated Tax. Enter the amount
When preparing a prior year return, of overpayment to apply to 2023.*
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.

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

H-7
 Premium Tax Credit
Answer Yes if Form 1095-A,
Health Insurance Marketplace
Statement, was received for cov­
erage of the taxpayer, taxpayer’s
spouse if taxpayer is filing a joint
return, or a dependent for any
part of the year.
If the taxpayer applied for cov­
erage via the Marketplace but
was instead enrolled in Medicaid,
answer No.
A Yes answer will lead to additional screens and require entry of information from Form 1095-A. If taxpayers
answer No, no further action is necessary.

Never override the calculated tax family size.

Premium Tax Credit: Form 1095-A Overview

A taxpayer who purchased insurance for himself/herself or for a dependent through the Marketplace will
receive Form 1095-A. If advance payments of the premium tax credit (APTC) were made for coverage of the
taxpayer or a dependent, the taxpayer must complete Form 8962, Premium Tax Credit (PTC). You cannot
prepare the return for taxpayers who received the benefit of APTC for themselves or a dependent without
Form(s) 1095-A.

Carefully examine Form 1095-A to make sure it reflects the taxpayer’s account of coverage. Look for critical
errors that will affect the PTC calculation, such as errors in enrollment premiums, second lowest cost silver
plan (SLCSP) premiums, or APTC.

H-8
 Premium Tax Credit: Form 1095-A Overview (continued)
Examine these areas: Marketplace call center:
1-800-318-2596 (TTY: 1-855-889-4325)
• Recipient information (Part I) For states not using Healthcare.gov, look up state
• Policy start or end date (Part I, Part II) Marketplace at healthcare.gov
• Covered individuals (Part II) - Are all listed
individuals included in this tax return?
• Premium cost (Part III, Column A)
• APTC (Part III, Column C)

To obtain an original or corrected Form 1095-A the taxpayer can log into his or her online account,
or call the Marketplace call center.
Column A - Monthly Premium: These are
the monthly enrollment premiums for the
policy in which the individuals are covered.
Form 1095-A This is the full premium, including the amount
"""" 1095-A Health Insurance Marketplace Statement D vo,o □Ma,.,_ ,s,,-,m paid by APTC for essential health benefits.
Oe1l
ln1om.11
ol1t.elteMurJ
1i-"M1511iMoe
□ @ XX The amount does not include the cost of
► Information iibol.lt F-orm 10$&-A and i1s HP.:!l"itt• i"'1NQtiOR:5
11 al www.n.goir/torm1095a.
CORRECTED

lmJ Recipient Information certain “extra” benefits such as adult dental

coverage. It may not match the taxpayer’s
actual monthly premium.
oll Rcx:tilctnt'srumc

e. ,RcN:ip+Gl\tsspcumsSSN 0 RDC1pi1:mt s s dat.a of but'1

Column B - Monthly SLCSP premium:

11 P-alicy lwrninlllicrt d':a.1• 12' _, :odd,_.. ( "9':11J1■r1..---,1 na.l

1.l Crty ar tcr"'n 14 Stal-ct er l=f"D'ltnca- t 8, CIIU"ltry ana 2JP a i!oR!Q]"I po!ilal coda-

If this column is blank and the individual

is enrolled in a plan through a federally
facilitated Marketplace, go to Healthcare.
lmlJ Coverage Information
gov and use the tax tool to find the SLCSP
Month
A. Mcnthl)' t:inN:Jl 1 prcmi1.1T1 C. Mcnthl)o <!!d,..o1noe p:!')'mt!tiE oi premium to enter in Column B. If the
individuals enrolled through a state-based
rfl'T11um tID. aed.l't

21 Ji.lnJi'I
Marketplace, go to the state’s website or call
.23 March
your state’s marketplace to determine the
24 SLCSP premium. The SLCSP premium is the
25 M premium for the second lowest cost silver-
level plan that covers all the members of the
coverage family.

Column C - Advance payment of PTC

You may need to look up the SLCSP premium if:

• It is incorrect, perhaps because a change in family size was not reported.

• It is missing. When someone paid the full premium because he or she did not request APTC,
Marketplaces routinely leave this space blank.
• There are multiple Forms 1095-A with conflicting information or the taxpayer otherwise thinks it’s
incorrect.
The taxpayer should seek a corrected Form 1095-A if information is incorrect, except for SLCSP premium
information that can be completed or fixed.

A person may be entitled to PTC even if no APTC was paid for the coverage. Do not assume
someone is ineligible for PTC just because Columns B and C of Form 1095-A are blank. If an
individual meets all the eligibility rules in the Form 8962 instructions but only the enrollment premium
amounts in Column A appear on Form 1095-A and Columns B and C are blank, look up the person’s
SLCSP premiums and enter them on the 1095-A screen in the SLCSP section.
H-9
 Premium Tax Credit (continued)
For taxpayers who purchased insurance through the Marketplace, complete this screen using their Form
1095-A.

This question appears for all

taxpayers with APTC.
This question is really asking
whether the taxpayer is liable for
unlimited APTC repayment.
Answer NO in most cases.
Only answer YES if all individuals
on the tax return for whom APTC
was paid:
• Are undocumented
immigrants; or
• Were eligible for the Trade
Adjustment Assistance Health
Care Tax Credit (HCTC) (Out
of Scope)
Answer YES in most cases
in which household income
is below 100% of the FPL.
Answer YES if:
• There is an amount in column
C of Form 1095-A (APTC) for
one or more months; or
• One of the individuals on the
taxpayer’s Form 1095-A is
If Form 1095-A shows the same If the taxpayer is Married Filing lawfully present but ineligible
monthly amounts for all 12 months, Separately a checkbox will appear on for Medicaid
select Yes and enter the annual this screen. If the taxpayer cannot file The TaxSlayer default answer
amounts below. Otherwise, select No a joint return because of domestic is NO for this question. It is very
and enter monthly amounts. abuse or spousal abandonment important to change to Yes if
If one or more of the amounts in check the box. See Instructions for income is below 100% of the
column B is incorrect and the correct Form 8962, Premium Tax Credit for Federal Poverty Line (FPL) and
SLCSP premium amounts are not the details. If a taxpayer is Married Filing one of the two “yes” conditions is
same for all 12 months, select No. Separately and is not eligible for re­ met. If it is not changed to Yes,
lief, he/she is not eligible for a premi­ the software will complete Form
um tax credit and must repay APTC, 8962 showing repayment of all
subject to the repayment limitation. the APTC without limitation.

Answer NO ONLY if:

Income is below 100% (FPL), no
APTC was paid, and the second
bullet from above does not apply.

H-10
 Premium Tax Credit (continued)

Out of Scope Situations

Allocation of Policy Amounts (Shared Policy)

If the following situations apply, the taxpayer may have to allocate policy amounts with another taxpayer. If
so, the return is Out of Scope:

• The 1095-A lists a covered person who is not on this tax return or,
• A person on the tax return was enrolled in another taxpayer’s Marketplace coverage. (The person is
listed on a Form 1095-A sent to a taxpayer not on this tax return.)

Alternative Calculation for Year of Marriage

If the following situation applies, an Alternative Calculation for Year of Marriage may be elected. If the
taxpayer elects this option, the return is Out of Scope.

• Taxpayers got married during 2022, are filing a joint return for 2022, and both spouses were unmarried
as of January 1, 2022, and
• A member of the taxpayers’ tax family was enrolled in a qualified health plan for which APTC was paid
for months prior to the first full month of marriage, and
• Taxpayers have excess APTC (their APTC exceeds their allowed PTC).

Taxpayers may choose to file MFJ or MFS without the alternative calculation, which remains in
scope.

Self-employed Taxpayers

Self employed taxpayers can deduct their health insurance premiums as an adjustment to gross income.
When a taxpayer is eligible for PTC, the computation of each is a circular calculation and the return is Out of
Scope for VITA/TCE.

See Publication 974, Premium Tax Credit (PTC), for more details about these out of scope topics.

H-11
 Premium Tax Credit, Form 8962

If a taxpayer is MFS and is

eligible for relief from the
requirement to file MFJ because of
spousal abuse or abandonment,
this box should be checked.
If MFS but not eligible for relief, he/
she is not eligible for a PTC and
must repay APTC, subject to the
repayment limitation.See Part IV,
Allocation Situation 2, of the Form
8962 instructions to determine the
amount of APTC the taxpayer must
repay.
The dependents’ MAGI should
appear on line 2b ONLY IF the
dependents’ gross income is
above the filing threshold. See
Tab A, Who Must File, Chart B - For
Children and Other Dependents.
The net premium tax credit a tax­
payer can claim (the excess of See the Applicable Figure Table later in this tab.
the taxpayer’s premium tax credit
over APTC) will appear on Form
1040, Schedule 3. This amount
will increase taxpayer’s refund or Reminder - Household income is MAGI of taxpayer (and spouse if
reduce the balance due. filing jointly) plus MAGI of dependents claimed by the taxpayer who
are required to file a return because the dependent’s gross income
The amount of excess APTC is above the tax return filing threshold. MAGI is:
(amount by which APTC ex­
ceeds the taxpayer’s premium tax • Adjusted Gross Income (AGI), plus
credit) that needs to be repaid will
appear on Form 1040, Schedule 2 • Tax-exempt interest, plus
line 2. • Social Security income not included in AGI, plus
• Foreign earned income

If a taxpayer must repay APTC or gets additional PTC, remember to adjust the insurance premium
deduction on Schedule A if itemizing. Increase the deduction for APTC repayment; decrease the
deduction for additional PTC.

H-12
 Premium Tax Credit – Special Situations
See Instructions for Form 8962 and Publication 974, Premium Tax Credit, for additional information.

Multiple Forms 1095-A

Some taxpayers will have multiple Forms 1095-A. This will happen if the taxpayer:

• Changed Marketplace plans during the year

• Updated their application with new information that resulted in a new enrollment
• Had family members enrolled in different Marketplace plans
• Had more than 5 family members in the same plan

Entering multiple Forms 1095-A on one Form 8962

Only one Form 8962 may be submitted with the tax return. Make sure everyone on each Form 1095-A is also
on the tax return. If not, this may require the taxpayer to allocate policy amounts with another taxpayer, which
makes this return Out of Scope.

Column A: Add the premiums together.

Column B: If everyone is enrolled in the same

state, the SLCSP premium should be the same
on all Forms 1095-A for a given month. Enter
that amount. If the enrollees are enrolled in
different states, add the SLCSP premiums.
When in doubt, look it up in the Tax Tool for your
Marketplace. See the Tax Tool section later in
this tab.

Column C: (entered in Column F of Form 8962): Add the amounts together.

The taxpayer stopped paying premiums

What you’ll see: Numbers in Columns B and C but no premium in Column A (-0-) for a month on Form 1095-
A, Part III

What to do:

• The taxpayer can only claim a PTC for a month of

enrollment if the premium for the month is paid by the tax
return due date (without extensions). If the APTC covers
most of the premium, it may be more cost-effective to
pay the premium than to repay the APTC. When the
taxpayer pays the premium, they need to get a corrected
Form 1095-A. Failure to get a corrected Form 1095-A
may result in an IRS notice.
• If the premium payment has not and will not be made,
enter -0- in Column A and Column B for the month and
enter the APTC for the month in Column C.

If there are consecutive months with no premium payment, there is likely an error on Form 1095-A.

H-13
 Premium Tax Credit – Special Situations (continued)

The taxpayer is ineligible for the PTC

• See Form 8962 instructions
• Enter -0- in Column B

PTC Eligibility - QSEHRA

Employers may offer a qualified small employer health reimbursement arrangement (QSEHRA) to their
eligible employees. Under a QSEHRA, an eligible employer can reimburse eligible employees for health care
costs, including premiums for Marketplace health insurance. If taxpayers were covered under a QSEHRA,
their employer should have reported the annual permitted benefit in box 12 of Form W-2 with code FF. If the
QSEHRA is affordable for a month, no PTC is allowed for the month. If the QSEHRA is unaffordable for a
month, taxpayers must reduce the monthly PTC (but not below -0-) by the monthly permitted benefit amount.
If there is a code FF on Form W-2 box 12, the employee has a Marketplace policy and is otherwise
eligible for PTC, the return is Out of Scope.

PTC Eligibility - ICHRA

Employers may offer an Individual Coverage Health Reimbursement Arrangement (ICHRA) to reimburse
their employees for individual market coverage, including premiums for Marketplace health insurance. An
ICHRA is considered affordable if the employee’s monthly premium for the lowest-cost silver plan offered
by the employee’s Marketplace, after subtracting the employer’s ICHRA contribution, does not exceed the
employee’s required contribution (household income times the applicable figure below and in the Form 8962
instructions). If the ICHRA is affordable for a month, no PTC is allowed for the month for the Marketplace
coverage of those offered the ICHRA. If the ICHRA is unaffordable for a month, a PTC may be allowed for
those offered the ICHRA only if the employee opted out of the employer’s ICHRA. This is Out of Scope for
the VITA/TCE programs.

Overlapping Coverage
There are special rules for taxpayers who wish to claim PTC when they had another offer of coverage. See
Publication 974 for additional information.

In general:

• A person who is eligible for PTC and becomes eligible for other coverage after the first day of the
month can claim PTC for that month.
• If a person eligible for PTC for whom APTC is being paid informs the Marketplace that he or she is now
eligible for other minimum essential coverage and APTC should be discontinued, and the Marketplace
does not discontinue APTC by the first day of the following month, the person remains eligible for PTC
until the first day of the second month the individual may enroll in other coverage.
Employer-sponsored coverage:

• Except as provided above (a person for whom APTC is being paid informs the Marketplace that he or
she is now eligible for other minimum essential coverage and APTC should be discontinued), a person
cannot claim PTC for his or her Marketplace coverage for any full month the person was enrolled in
employer-sponsored coverage; if APTC was paid for a person’s Marketplace coverage for a month the
person was enrolled in employer-sponsored coverage, it must be repaid (unless the person informed
the Marketplace of the eligibility and the APTC was not discontinued, as noted above) up to the
repayment limitation.

H-14
 Premium Tax Credit – Special Situations (continued)
• PTC can be claimed for an individual who was eligible for, but not enrolled in, employer-sponsored
coverage only if:
a. The employer coverage was unaffordable, or
b. The taxpayer advised the Marketplace of the employer offer and the Marketplace determined the
coverage was unaffordable for the employee (see Exception below), or
c. The coverage did not provide a minimum level of benefits, referred to as “minimum value.” A
taxpayer can check with the employer if he or she suspects coverage did not meet minimum
standards.
• Exception: A person who is eligible for employer-sponsored coverage and gave the Marketplace
accurate information about the offer of coverage but was still determined eligible for APTC can claim
PTC for his or her Marketplace coverage, if otherwise eligible, even if the employer coverage is
affordable based on the taxpayer’s actual household income.
• See Publication 974 for more information and special rules on employer-sponsored coverage, including
coverage waiting periods, health reimbursement arrangements, and coverage after employment ends.
Medicaid/CHIP:

• If the Marketplace determined the taxpayer was eligible for APTC and therefore ineligible for Medicaid
or CHIP, and APTC was paid for the taxpayer, the taxpayer will generally remain ineligible for Medicaid
or CHIP for the plan year, even if actual household income suggests the person may have been eligible
for Medicaid or CHIP. If this is the case, answer Yes to the question in TaxSlayer which asks “Is your
household income below 100% of the Federal poverty line, and do you meet all of the requirements
under either “Estimated household income at least 100% of the Federal poverty line” or “Alien lawfully
present in the United States”?
• If an individual for whom APTC is being paid is determined to be eligible for government-sponsored
coverage retroactively, the individual is not considered eligible for that coverage until the month after
the eligibility determination is made. (For example, a person who enrolled at the beginning of the year
in Marketplace coverage with APTC, but in July is determined eligible for Medicaid retroactive to April
1, can, if otherwise eligible, claim PTC for January through July, despite concurrent enrollment in
Medicaid in April through July.)
Medicare:

• A person eligible for Medicare loses eligibility for PTC for the person’s Marketplace coverage even if
he or she fails to enroll in Medicare. The loss of eligibility occurs the first day of the fourth full month
after the person became eligible for Medicare. For example, a person who is enrolled in Marketplace
coverage with APTC, but becomes Medicare-eligible on his 65th birthday on May 17, loses eligibility for
PTC on September 1, the first day of the fourth full month after Medicare eligibility.

H-15
 Premium Tax Credit – Special Situations (continued)

Handling Unexpected APTC Repayments

You may encounter a taxpayer with an unexpected repayment of APTC on Form 8962, Line 29, that he or
she must repay. An unexpected repayment may occur when the taxpayer receives unanticipated income,
such as retroactive disability, lump-sum social security benefits, a work bonus or gambling winnings.

Form 8962: Part III

Review the Health Care section in the software:

• Make sure Form 1095-A is correct and complete (see Premium Tax Credit: Form 1095-A Overview,
earlier in this tab).
• Ask the taxpayer to contact the Marketplace if the form doesn’t reflect premiums that were paid or if
there are other errors.
• If the taxpayer received Form 1095-A, make sure the question “Is your household income below
100%...” is answered correctly in the Health Insurance section of the software (see the Premium Tax
Credit entry screens, earlier in this tab).
• Check the Health Insurance section of the software to see if the question “Are you required to repay all
of the APTC received?” is answered correctly (see the Premium Tax Credit entry screens, earlier in this
tab).
• If the taxpayer or spouse lived in Hawaii or Alaska at any point during the year, ensure that state is
selected as the resident state in the Basic Information section.

Consider income adjustments to reduce household income:

• If the taxpayer is eligible to claim an IRA deduction, remember that taxpayers can contribute to an IRA
until the tax filing deadline.
• If the taxpayer or spouse has an HSA and has not contributed the maximum for the tax year, he or she
may contribute to their HSA until the tax filing deadline.
• If the taxpayer or spouse is self-employed, ensure all business expenses have been claimed. The
taxpayer may be able to claim the self-employed health insurance deduction which reduces household
income, in which case the return is Out of Scope.
• If the taxpayer or spouse is eligible and wishes to claim HCTC or establish a SEP-IRA, refer him/her to
a professional return preparer.

H-16
 Premium Tax Credit – Special Situations (continued)

Consider married filing separately:

• The taxpayer may be ineligible for the PTC, but filing separately may cap repayment of APTC at a
lower level if one or both spouses’ household income is less than 400% of FPL. However, if both
spouses are on the same Form 1095-A, filing separately makes this a shared policy and Out of Scope.

Important! If the taxpayer is currently enrolled in Marketplace coverage and has a 2022 repayment
of APTC, the taxpayer should contact the Marketplace now to adjust their 2023 APTC to avoid
similar repayments for the 2023 tax year!

Repayment Caps for APTC

Income (as % of federal poverty Taxpayers Filing as SINGLE Taxpayers Using Other Filing Sta­
line) tuses
Under 200% $325 $650
200% – 299% $825 $1,650
300% – 399% $1,400 $2,800
400% and above No cap (full repayment) No cap (full repayment)

H-17
 How to Use the Healthcare.gov Tax Tool

Who should use this tool?

The tool is available for 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 www.healthcare.gov/tax-tool/

The tool allows a taxpayer to find their SLCSP Premium 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. Several
screens will ask for the family’s ZIP code and whether they lived in the same place for all months.

Confirm the information for each family member.

Enter information for the follow­

ing steps:

Select Choose a tax year, then

select appropriate state(s) and
click Continue.

Provide information about the

taxpayer’s household.

H-18
 How to Use the Healthcare.gov Tax Tool (continued)
This section determines for each family member whether he or she will be included in determining the
SLCSP premium, which you will enter in TaxSlayer.

Follow the instructions closely!

Leave the boxes unchecked for

months John was eligible for
other coverage (such as employer
or Medicaid) or did not pay the
premium for that month and click
Continue.

In the Review screen, confirm The results page shows the

the information for each family premium for the SLCSP for the
member and click Continue. household. Use these amounts as
if they appeared on Form 1095-A,
Column B.

Remember: Print out the review information and the results page screens for the taxpayer’s records.

H-19
 Federal Poverty Lines
For purposes of the premium tax credit, eligibility for a certain year is based on the most recently published
set of poverty lines as of the first day of open enrollment for coverage for that year. As a result, the tax credit
for 2022 will be based on the 2021 federal poverty lines.

2021 Poverty Lines for the 48 Contiguous States and the District of Columbia
For families/households with more than 8 persons, add $4,540 for each additional person (100% Poverty Line)
Persons in family/household 100% Poverty Line 138% Poverty Line 400% Poverty Line
1 $12,880 $17,774 $51,520
2 $17,420 $24,040 $69,680
3 $21,960 $30,305 $87,840
4 $26,500 $36,570 $106,000
5 $31,040 $42,835 $124,160
6 $35,580 $49,100 $142,320
7 $40,120 $55,366 $160,480
8 $44,660 $61,631 $178,640

2021 Poverty Lines for Alaska

For families/households with more than 8 persons, add $5,680 for each additional person (100% Poverty Line)
Persons in family/household 100% Poverty Line 138% Poverty Line 400% Poverty Line
1 $16,090 $22,204 $64,360
2 $21,770 $30,043 $87,080
3 $27,450 $37,881 $109,800
4 $33,130 $45,719 $132,520
5 $38,810 $53,558 $155,240
6 $44,490 $61,396 $177,960
7 $50,170 $69,235 $200,680
8 $55,850 $77,073 $223,400

2021 Poverty Lines for Hawaii

For families/households with more than 8 persons, add $5,220 for each additional person (100% Poverty Line)
Persons in family/household 100% Poverty Line 138% Poverty Line 400% Poverty Line
1 $14,820 $20,452 $59,280
2 $20,040 $27,655 $80,160
3 $25,260 $34,859 $101,040
4 $30,480 $42,062 $121,920
5 $35,700 $49,266 $142,800
6 $40,920 $56,470 $163,680
7 $46,140 $63,673 $184,560
8 $51,360 $70,877 $205,440

H-20
 Applicable Figure Table Tax Year 2022 - Applicable Percentage/
Decimal
The decimal number from this table is used to calculate the taxpayer’s contribution amount when completing
Form 8962.

Income as Applicable Income as Applicable Income as Applicable Income as Applicable

% of FPL Decimal % of FPL Decimal % of FPL Decimal % of FPL Decimal
<150 0.0000 184 0.0136 219 0.0276 254 0.0416
150 0.0000 185 0.0140 220 0.0280 255 0.0420
151 0.0004 186 0.0144 221 0.0284 256 0.0424
152 0.0008 187 0.0148 222 0.0288 257 0.0428
153 0.0012 188 0.0152 223 0.0292 258 0.0432
154 0.0016 189 0.0156 224 0.0296 259 0.0436
155 0.0020 190 0.0160 225 0.0300 260 0.0440
156 0.0024 191 0.0164 226 0.0304 261 0.0444
157 0.0028 192 0.0168 227 0.0308 262 0.0448
158 0.0032 193 0.0172 228 0.0312 263 0.0452
159 0.0036 194 0.0176 229 0.0316 264 0.0456
160 0.0040 195 0.0180 230 0.0320 265 0.0460
161 0.0044 196 0.0184 231 0.0324 266 0.0464
162 0.0048 197 0.0188 232 0.0328 267 0.0468
163 0.0052 198 0.0192 233 0.0332 268 0.0472
164 0.0056 199 0.0196 234 0.0336 269 0.0476
165 0.0060 200 0.0200 235 0.0340 270 0.0480
166 0.0064 201 0.0204 236 0.0344 271 0.0484
167 0.0068 202 0.0208 237 0.0348 272 0.0488
168 0.0072 203 0.0212 238 0.0352 273 0.0492
169 0.0076 204 0.0216 239 0.0356 274 0.0496
170 0.0080 205 0.0220 240 0.0360 275 0.0500
171 0.0084 206 0.0224 241 0.0364 276 0.0504
172 0.0088 207 0.0228 242 0.0368 277 0.0508
173 0.0092 208 0.0232 243 0.0372 278 0.0512
174 0.0096 209 0.0236 244 0.0376 279 0.0516
175 0.0100 210 0.0240 245 0.0380 280 0.0520
176 0.0104 211 0.0244 246 0.0384 281 0.0524
177 0.0108 212 0.0248 247 0.0388 282 0.0528
178 0.0112 213 0.0252 248 0.0392 283 0.0532
179 0.0116 214 0.0256 249 0.0396 284 0.0536
180 0.0120 215 0.0260 250 0.0400 285 0.0540
181 0.0124 216 0.0264 251 0.0404 286 0.0544
182 0.0128 217 0.0268 252 0.0408 287 0.0548
183 0.0132 218 0.0272 253 0.0412 288 0.0552

H-21
 Applicable Figure Table Tax Year 2022 - Applicable Percentage/
Decimal
The decimal number from this table is used to calculate the taxpayer’s contribution amount when completing
Form 8962.

Income as Applicable Income as Applicable Income as Applicable Income as Applicable

% of FPL Decimal % of FPL Decimal % of FPL Decimal % of FPL Decimal
289 0.0556 317 0.0643 345 0.0713 373 0.0783
290 0.0560 318 0.0645 346 0.0715 374 0.0785
291 0.0564 319 0.0648 347 0.0718 375 0.0788
292 0.0568 320 0.0650 348 0.0720 376 0.0790
293 0.0572 321 0.0653 349 0.0723 377 0.0793
294 0.0576 322 0.0655 350 0.0725 378 0.0795
295 0.0580 323 0.0658 351 0.0728 379 0.0798
296 0.0584 324 0.0660 352 0.0730 380 0.0800
297 0.0588 325 0.0663 353 0.0733 381 0.0803
298 0.0592 326 0.0665 354 0.0735 382 0.0805
299 0.0596 327 0.0668 355 0.0738 383 0.0808
300 0.0600 328 0.0670 356 0.0740 384 0.0810
301 0.0603 329 0.0673 357 0.0743 385 0.0813
302 0.0605 330 0.0675 358 0.0745 386 0.0815
303 0.0608 331 0.0678 359 0.0748 387 0.0818
304 0.0610 332 0.0680 360 0.0750 388 0.0820
305 0.0613 333 0.0683 361 0.0753 389 0.0823
306 0.0615 334 0.0685 362 0.0755 390 0.0825
307 0.0618 335 0.0688 363 0.0758 391 0.0828
308 0.0620 336 0.0690 364 0.0760 392 0.0830
309 0.0623 337 0.0693 365 0.0763 393 0.0833
310 0.0625 338 0.0695 366 0.0765 394 0.0835
311 0.0628 339 0.0698 367 0.0768 395 0.0838
312 0.0630 340 0.0700 368 0.0770 396 0.0840
313 0.0633 341 0.0703 369 0.0773 397 0.0843
314 0.0635 342 0.0705 370 0.0775 398 0.0845
315 0.0638 343 0.0708 371 0.0778 399 0.0848
316 0.0640 344 0.0710 372 0.0780 ≥ 400 0.0850

H-22
Tab I: Earned Income Credit

I-i
I-ii
 Earned Income Table
Earned Income for EIC
Includes Doesn’t include
• Taxable wages, salaries, and tips • Interest and dividends
• Union strike benefits • Social Security and railroad retirement benefits
• Taxable long-term disability • Welfare benefits
benefits received prior to • Workfare payments
minimum retirement age • Pensions and annuities (except if disability pension and taxpayer is under minimum retirement age)
• Net earnings from self- • Veteran’s benefits (including VA rehabilitation payments)
employment
• Workers’ compensation benefits
• Gross income of a statutory
• Alimony
employee
• Child support
• Household employee income
• Nontaxable foster-care payments
• Nontaxable combat pay election
• Unemployment compensation
• Nonemployee compensation
• Taxable scholarship or fellowship grants that aren’t reported on Form W-2
• The rental value of a home or a
housing allowance provided to a • Earnings for work performed while an inmate at a penal institution or on work release1
minister as part of the minister’s • Salary deferrals (for example, under a 401(k) or 403(b) plan or the Federal Thrift Savings Plan)
pay (Out of Scope) • The value of meals or lodging provided by an employer for the convenience of the employer
• Disability Insurance payments
• Excludable dependent care benefits (line 25 of Form 2441)
• Salary reductions such as under a cafeteria plan
• Excludable employer-provided educational assistance benefits (may be shown in box 14 of Form W-2)

1 This particular income is entered as other income on the return and not counted as earned income.

Common EIC Filing Errors

• 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

I-1
 Summary of EIC Eligibility Requirements
Part A Part B Part C Part D
Rules for Everyone Rules If You Have Rules If You Don’t Earned Income and
a Qualifying Child Have a Qualifying Child AGI Limitations
Taxpayers & qualifying children Child must meet the relationship, Must be at least age 25 but under You must have earned income to
must all have SSN that is valid for age, residency test and joint age 65 as of December 31.³ qualify for this credit.
employment by the due date of the return tests but not the support Your earned income and AGI
return (including extensions).1 test. The child doesn’t have to be must be less than:
your dependent.2 • $53,057 ($59,187 for married
Filing status can’t be married filing Qualifying child can’t be used by Can’t be the dependent of filing jointly) if you have three
separately unless you meet an more than one person to claim another person. or more qualifying children,
exception.3 the EIC. • $49,399 ($55,529 for married
Must be a U.S. citizen or resident The taxpayer can’t be a Must have lived in the United filing jointly) if you have two
alien all year. qualifying child of another States more than half the year. qualifying children,
person. • $43,492 ($49,622 for married
Can’t file Form 2555 (relating to Can’t be a qualifying child of filing jointly) if you have one
foreign earned income). another person. qualifying child, or
• $16,480 ($22,610 for married
Investment income must be $10,300
filing jointly) if you don’t have
or less.
a qualifying child.
Can’t be a qualifying child of
another person.

Taxpayers cannot file an amended return to claim the credit for a year they did not originally have a
valid Social Security number.

1 If the taxpayer’s Social Security card says “VALID FOR WORK ONLY WITH INS OR DHS AUTHORIZATION,” the taxpayer can use the Social
Security number to claim EIC if they otherwise qualify.
If taxpayer (or spouse, if filing a joint return) or dependent has an individual taxpayer identification number (ITIN), they can’t get the EIC. ITINs
are issued by the IRS to noncitizens who can’t get an SSN. Singles and couples who have Social Security numbers can claim the credit, even
if their children don’t have SSNs. In this instance, they would get the smaller credit available to childless workers. In the past, these filers didn’t
qualify for the credit.
If the taxpayer‘s Social Security card has a “NOT VALID FOR EMPLOYMENT” imprint, and if the card-holder obtained the SSN to get a federally
funded benefit, such as Medicaid, they can’t get the EIC.
2 To meet the joint return test, the child cannot file a joint return for the year unless it’s only to claim a refund of income tax withheld or estimated
tax paid.
3 Taxpayers turning 25 on January 1st are considered to be 25 as of December 31st. Taxpayers reaching the age 65 on January 1st are still
considered to be 64 as of December 31st.
4 Taxpayers can claim EIC who are married, not filing a joint return, had a qualifying child living with them for more than 1/2 the year and
either lived apart from their spouse for the last 6 months of the year or are legally separated according to state law under legal separation
agreement or a decree of separate maintenance and didn’t live in the same household as the spouse at the end of the year.

I-2
 EIC General Eligibility Rules
Step Probe/Ask the taxpayer Action
Calculate the taxpayer’s earned income and adjusted gross income If YES, go to Step 2.
1 (AGI) for the tax year. Are both less than: If NO, STOP. You can’t claim the EIC.
• $53,057 ($59,187 married filing jointly) with three or more qualifying
children;
• $49,399 ($55,529 married filing jointly) with two qualifying children;
• $43,492 ($49,622 married filing jointly) with one qualifying child; or
• $16,480 ($22,610 married filing jointly) with no qualifying children?
Do you (and your spouse, if filing jointly) have a Social If YES, go to Step 3.
2 Security number (SSN) that allows you to work?1 If NO, STOP. You can’t claim the EIC.
Answer “NO” if the taxpayer’s Social Security card has a “NOT VALID
FOR EMPLOYMENT” imprint, and if the cardholder obtained the SSN
to get a federally funded benefit, such as Medicaid.
Is your filing status married filing separately? If YES, You can’t claim the EIC
3 unless you meet an exception. See Footnote 4 on page I-2.
If NO, go to Step 4
Are you (or your spouse, if married) a nonresident alien? If YES and you are either unmarried or married but not
4 Answer “NO” if the taxpayer is married filing jointly, and one spouse is a filing a joint return, STOP. You can’t claim the EIC.
citizen or resident alien and the other If NO, go to Step 5.
is a nonresident alien.
Are you (or your spouse, if filing jointly) filing Form 2555 If YES, STOP. You can’t claim the EIC.
5 (Foreign Earned Income) to exclude income earned in a foreign If NO, go to Step 6.
country?
Is your investment income (interest, tax exempt interest, dividends, If YES, STOP. You can’t claim the EIC.
6 capital gains distributions & capital gains) more than $10,300? If NO, go to Step 7.

Are you (or your spouse, if filing jointly) the qualifying child of another If YES, STOP. You can’t claim the EIC.
7 taxpayer? If NO, go to the interview tips for EIC—With a Qualifying
Child or EIC—Without a Qualifying Child.

1 If the taxpayer’s Social Security card says VALID FOR WORK ONLY WITH INS OR DHS AUTHORIZATION, the taxpayer can use the Social
Security number to claim EIC if they otherwise qualify.

Taxpayer must check the checkbox on Schedule EIC for MFS treated as not married for purpose of
claiming EIC to claim the credit.

If the taxpayer is filing MFS and meets the requirements to claim EIC, go to
Basic Information>Personal Information>Filing Married Filing Separate and meets the requirements
to claim the EIC.

I-3
 EIC With a Qualifying Child
Step Probe/Ask the taxpayer Action
Does your qualifying child have an SSN that allows him or her to work? If YES, go to Step 2.
1 Answer NO if the child’s Social Security card says “NOT VALID FOR If NO, STOP. You can’t claim the EIC on the basis of this
EMPLOYMENT” and his or her SSN was only obtained to get a qualifying child, however, you may qualify to claim the
federally funded benefit. childless EIC if you meet the requirements.
Is the child your son, daughter, stepchild, adopted child, or eligible foster If YES, go to Step 3.
2 child, brother, sister, half brother, half sister, stepbrother, stepsister, or a If NO, STOP. This child isn’t your qualifying child. Go to
descendant of any of them? interview tips for EIC Without a Qualifying Child.
• Was the child any of the following at the end of the tax year? If YES, go to Step 4.
3 • Under age 19 and younger than the taxpayer (or spouse, if filing jointly) If NO, STOP. This child isn’t your qualifying child. Go to
• Under age 24 and a full-time student and younger than the taxpayer interview tips for EIC Without a Qualifying Child.
(or spouse, if filing jointly), or
• Any age and permanently and totally disabled

Did the child file a joint return for the year?1 If NO, go to Step 5.
4 If YES, STOP. This child isn’t your qualifying child (failed
Answer NO if the child and his or her spouse filed a joint return only to
claim a refund of income tax withheld o r estimated tax paid. the joint return test). Go to interview tips for EIC Without a
Qualifying Child.
Did the child live with you in the United States for more than half (183 If YES, go to Step 6.
5 days for 2022) of the tax year?2 If NO, STOP. This child isn’t your qualifying child. Go to
Active duty military personnel stationed outside the United States are interview tips for EIC Without a Qualifying Child.
considered to live in the United States for this purpose.
Is the child a qualifying child of another person? If YES, explain to the taxpayer what happens when
6 There may be a case when a qualifying child can’t be claimed by more than one person claims the EIC using the same
anyone. child (Qualifying Child of More than One Person rule). If
Example: The only parent that the child lives with doesn’t work or file the taxpayer chooses to claim the credit with this child,
a tax return and another adult can’t meet the general eligibility rules. In compute the EIC using the appropriate EIC worksheets.
this example, no one qualifies to claim this child as a qualifying child for If NO, compute the EIC using the appropriate EIC
EIC. worksheet.

1 If your child was married at the end of the year, he or she doesn’t meet the joint return test unless you can claim the child as a dependent or you
can’t claim the child as a dependent because you gave that right to the child’s other parent.
2 Temporary absences. Count time that you or your child is away from home on a temporary absence due to a special circumstance as time the
child lived with you. Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in
a juvenile facility.

I-4
 EIC Without a Qualifying Child
Step Probe/Ask the taxpayer Action
Can you (or your spouse, if filing jointly) be claimed as a dependent by If NO, go to Step 2.
1 another person? If YES, STOP. You can’t claim the EIC.

Were you (or your spouse, if filing jointly) at least 25 but under age 65 If NO, STOP. You can’t claim the EIC unless an exception
2 on December 31 of the tax year? applies. See the Note below.
If YES, go to Step 3.

Did you (and your spouse, if filing jointly) live in the If NO, STOP. You can’t claim the EIC.
3 United States for more than half (at least 183 days) of the tax year? If YES, compute EIC using the appropriate EIC
worksheet.

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.

Qualifying Child of More than One Person

If the child meets the conditions to be the qualifying child of more than one person, only one person can
claim the child. The tiebreaker rules, which follow, explain who, if anyone, can claim the EIC when more than
one person has the same qualifying child. However, the tiebreaker rules don’t apply if the other person is
your spouse and you file a joint return. 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 the parent.
• If the parents don’t file a joint return together but both parents claim the child as a qualifying child, the IRS
will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time
in 2022. If the child lived with each parent for the same amount of time, the IRS will treat the child as the
qualifying child of the parent who had the higher adjusted gross income (AGI) for 2022.
• If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person
who had the highest AGI for 2022.
• If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated
as the qualifying child of the person who had the highest AGI for 2022, but only if that person’s AGI is
higher than the highest AGI of any of the child’s parents who can claim the child.

If the taxpayers can’t claim the EIC because their qualifying child is treated under the tiebreaker rules as
the qualifying child of another person for 2022, they 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.
Subject to these tiebreaker rules, the taxpayer and the other person may be able to choose which of
them claims the child as a qualifying child. See Publication 596, Earned Income Credit (EIC), for
examples. Only parents have the option to choose which parent will claim the child. All other
taxpayers wanting to claim the qualifying child must follow the tiebreaker rules. See Pub 596 for examples.
The IRS will apply the tiebreaker rules when the child is claimed by multiple taxpayers.

I-5
 Disallowance of Certain Credits
Federal section>Deductions>Credit menu>Claiming Refundable Credits After Disallowance

Form 8862, Information to Claim Certain Credits After Disallowance, must be completed for any taxpayer
whose EIC, credit for other dependents (ODC), child tax credit (CTC), additional child tax credit (ACTC), or
American opportunity tax credit (AOTC), 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
(not due to math or clerical errors) 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.

Two situations may require completion of Form 8862

1. The IRS advised the taxpayer that form 8862 must be completed for a future tax return.

2. A return has been rejected with reject code IND-046-01 – “Incorrect Data: Form 8862 must be present in
the return. The e-File database indicates the taxpayer must file Form 8862 to claim Earned Income Credit
after disallowance.”

Steps for completing Form 8862:

• Enter 8862 in the forms search box

• Select Information to Claim Certain Refundable Credits After Disallowance
• Select BEGIN for the Credit to be claimed, e.g. Claim EIC After Disallowance

Credits listed will be the ones for which the taxpayer is eligible.

For EIC disallowance

• Do not click the first box “Check here if the only reason your EIC was reduced or disallowed in the earlier
year was because you incorrectly reported your earned income or investment income” unless that is the
actual reason the EIC was reduced/eliminated.
• Answer remaining questions and click Continue. Questions must be answered for all children.

For CTC/ACTC
• Select Claim Credit then Continue

For AOTC
• Select Form 8863 and confirm entries

Not Eligible for EIC:

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. Select both the check boxes after reading them
carefully to determine that the taxpayer agrees to not claim earned income credit on this return.

I-6
Tab J: Education Benefits

J-i
J-ii
 Tax Treatment of Scholarship and Fellowship Payments
A 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 attend
an educational institution that offers a program of training to prepare students for gainful employment in
a recognized occupation and is authorized under federal or state law to provide such a program and is
accredited by 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, Tax Benefits for
Education.)

Use Worksheet 1–1 to figure the amount of a scholarship or fellowship you can exclude from gross income.

Education Expenses
The 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:

• Room and board

• Research
• Equipment and other expenses not required for enrollment in or attendance at an eligible educational
institution
• Travel
• Clerical help

J-1
 Tax Treatment of Scholarship and Fellowship Payments (continued)
Worksheet 1-1. Taxable Scholarship and Fellowship Income
1. Enter the total amount of any scholarship or fellowship grant for 2022. See Amount of scholarship 1.
or fellowship grant in Publication 970.
• 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. For information on how to report this amount on your tax return, see
Entering Other Compensation in TaxSlayer in Tab D.
2. Enter the amount from line 1 that was for teaching, research, or any other services required as a 2.
condition for receiving the scholarship. Don’t include amounts received for these items under the
National Health Service Corps Scholarship Program, the Armed Forces Health Professions
Scholarship and Financial Assistance Program, or a comprehensive student work-learning-service
program (as defined in Section 448(e) of the Higher Education Act of 1965) operated by a work
college (as defined in that section).
3. Subtract line 2 from line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter the amount from line 3 that your scholarship or fellowship grant required you to use for other
than qualified education expenses. ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Subtract line 4 from line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter the amount of your qualified education expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Enter the smaller of line 5 or line 6. This amount is the most you can exclude from your gross
income1 (the tax-free part of the scholarship or fellowship grant) . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8. Subtract line 7 from line 5. . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9. Taxable part. Add lines 2, 4, and 8. See Entering Other Compensation in TaxSlayer in
Tab D, for how to report this amount on your tax return. . . . . . ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

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 Publication 970 for more information.

J-2
 Highlights of Education Tax Benefits for Tax Year 2022
This chart highlights some differences among the benefits discussed in Publication 970. See the text for
definitions and details. Don’t rely on this chart alone.

Expenses for professional development of an educator can be claimed as an educator expense

adjustment.

You generally can’t claim more than one benefit for the same education expense.

What type of benefit? What is your benefit? What is the annual limit?
Scholarships, Fellowships, Grants, and Tuition Amounts received may not be taxable None
Reductions
American Opportunity Credit Credits can reduce the amount of tax you $2,500 credit per student
have to pay.
40% of the credit may be refundable (limited
to $1,000 per student).
Lifetime Learning Credit Credits can reduce amount of tax you must $2,000 credit per tax return
pay
Student Loan Interest Deduction Can deduct interest paid on qualified loans. $2,500 deduction per return
See Tab E, Adjustments, for more information.

Coverdell ESA* Earnings not taxed $2,000 contribution per beneficiary

OOS if taxable
Qualified Tuition Program (QTP) Earnings not taxed None
(529 Plan)*
OOS if taxable
Education Exception to Additional Tax on Early No 10% additional tax on early distribution Amount of qualified education expenses
IRA Distributions* reduced by any tax-free educational
assistance

Education Savings Bond Program* Interest not taxed Amount of qualified education expenses
OOS
Employer - Provided Educational Assistance* Employer benefits not taxed $5,250 exclusion

Business Deduction for Work-Related Can deduct expenses Amount of qualifying work-related education
Education expenses

*Any
nontaxable distribution is limited to the amount that doesn’t exceed qualified education expenses.
OOS = Out of Scope

J-3
 Highlights of Education Tax Benefits for Tax Year 2022
What is the type of What expenses qualify besides tuition and required enrollment fees?
benefit?
Scholarships, Fellowships, Course-related expenses such as fees, books, supplies, and equipment
Grants, and Tuition
Reductions
American Opportunity Credit Course-related books, supplies, and equipment. See What are Qualifying Expenses later for additional
information.
Note: The maximum amount of qualified education expenses is $4,000.
Lifetime Learning Credit Amounts paid for required books, etc., that must be paid to the educational institution, etc., are required fees.
Note: The maximum amount of qualified education expenses is $10,000
Coverdell ESA* • Books, Supplies, Equipment
OOS if taxable • Expenses for special needs services
• Payments to QTP
• Higher education: Room and Board if at least half-time student
• Elem/sec (K-12) education: Tutoring, Room & board, Uniforms, Transportation, Computer access
• Supplementary expenses
Qualified Tuition Program • Higher Education: Books, Supplies ,Equipment
(QTP) (529 Plan)* • Room & board if at least half-time student
OOS if taxable • Expenses for special needs services
• Computer Equipment, computer software, or Internet access and related services
• Elem/sec (K-12) education: See Pub 970; Principal or interest on beneficiary’s or sibling’s student loan. The
amount of distributions for loan repayments of any individual is limited to $10,000 lifetime. Retroactive to
TY2019
Education Exception to • Books, Supplies, Equipment including computer or peripheral equipment, computer software and internet
Additional Tax on Early IRA access and related services if used primarily by the student enrolled at an eligible education institution
Distributions* • Room & board if at least half-time student
• Expenses for special needs services
Education Savings Bond • Payments to Coverdell ESA
Program* • Payments to QTP
OOS
Employer-Provided • Books, Supplies and Equipment
Educational Assistance* • Principal or interest on any qualified education loan

Business Deduction for Work- • Transportation

Related Education • Travel
• Other necessary expenses
*Any
nontaxable distribution is limited to the amount that doesn’t exceed qualified education expenses.
OOS = Out of Scope

J-4
 Highlights of Education Tax Benefits for Tax Year 2022
What is the type of What education qualifies? What are some of the other In what income
benefit? conditions that apply? range do benefits
phase out?
Scholarships, Fellowships, • Undergraduate & graduate • Must be in degree or vocational program • No phaseout
Grants, and Tuition • K-12 • Payment of tuition and required fees must be
Reductions allowed under the grant
American Opportunity • Undergraduate & graduate • Can be claimed for only 4 tax years (which • $80,000 -$90,000
Credit • A graduate student can claim includes years Hope credit claimed) • $160,000 -$180,000
the American Opportunity • Must be enrolled at least half-time in degree for joint returns
Credit if and only if the student program
hasn’t completed the first four • No felony drug conviction(s)
years before the beginning of • Must not have completed first 4 years of
the tax year postsecondary education before end of
preceding tax year
Lifetime Learning Credit • Undergraduate & graduate • No other conditions • $80,000 - $90,000
courses to acquire or improve • $160,000 - $180,000
job skills for joint returns
Student Loan Interest • Undergraduate & graduate • Must have been at least half-time student in • $70,000 - $85,000
Deduction degree program • $145,000 - $175,000
for joint returns
Coverdell ESA* • Undergraduate & graduate • Assets must be distributed at age 30 unless • $95,000 - $110,000
OOS if taxable • K-12 special needs beneficiary • $190,000 - $220,000
for joint returns
Qualified Tuition Program • Undergraduate & graduate • No other conditions • No phaseout
(QTP) (529 Plan)* • K -12 for no more than $10,000
OOS if taxable of tuition
• Apprenticeship program that is
registered and certified by the
Dept of Labor
Education Exception to • Undergraduate & graduate • No other conditions • No phaseout
Additional Tax on Early IR
Distributions*
Education Savings Bond • Undergraduate & graduate • Applies only to qualified series EE bonds • $85,800-$100,800
Program* issued after 1989 or series I bonds • $128,650-$158,650
OOS for joint and qualifying
surviving spouse with
a dependent child
returns
Employer-Provided • Undergraduate & graduate • No other conditions • No phaseout
Educational Assistance*
Business Deduction for • Required by law to keep • Can’t be to meet minimum educational • No phaseout
Work-Related Education present job, salary, status requirements of present trade/business
• Maintain or improve job skills • Can’t qualify you for a new trade/business
*Any
nontaxable distribution is limited to the amount that doesn’t exceed qualified education expenses.
OOS = Out of Scope

Taxpayers filing MFS cannot claim deductions for the American opportunity credit, lifetime learning
credit, or student loan interest deductions.

J-5
 Education Credits
Federal Section>Deductions>Credits Menu>Education Credits; or Keyword “EDUCA” or “886”

Probe/Action: To determine if a taxpayer qualifies for the education credit.

Taxpayers who claim the American opportunity credit even though they are not eligible can be
banned from claiming the credit for up to 10 years.

Comparison of Education Credits

Credit Conditions 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 $180,000 if married filing jointly; $90,000 if single, $180,000 if married filing jointly; $90,000 if single, head of
adjusted gross income head of household, or qualifying surviving spouse household, or qualifying surviving spouse
(MAGI)
Refundable or 40% of credit may be refundable1; the rest is Nonrefundable—credit limited to the amount of tax you must
nonrefundable nonrefundable pay on your taxable income
Number of years Available ONLY if the student had not completed the Available for all years of postsecondary education and for
of postsecondary first 4 years of post secondary education before 2022. courses to acquire or improve job skills
education See Completion of first 4 years in Publication 970.
Number of tax years Available ONLY for 4 tax years per eligible student Available for an unlimited number of tax years
credit available (including any year(s) Hope credit was claimed
Type of program Student must be pursuing a program leading to a Student does not need to be pursuing a program leading to a
required degree or other recognized education credential degree or other recognized education credential
Number of courses Student must be enrolled at least half-time2 for at least Available for one or more courses
one academic period beginning during 2022 (or the
first 3 months of 2023 if the qualified expenses were
paid in 2022)
Felony drug conviction As of the end of 2022, the student had not been Felony drug convictions do not make the student ineligible
convicted of a felony for possessing or distributing a
controlled substance
Qualified expenses Tuition, required enrollment fees, and course materials Tuition and required enrollment fees (including amounts
that the student needs for a course of study whether required to be paid to the institution for course-related books,
or not the materials are bought at the educational supplies, and equipment)
institution as a condition of enrollment or attendance
Payments for Payments made in 2022 for academic periods Payments made in 2022 for academic periods beginning in
academic periods beginning in 2022 or beginning in the first 3 months of 2022 or beginning in the first 3 months of 2023
2023
TIN needed by filing Filers and students must have a TIN by the due date
due date of their 2022 return (including extensions)
Educational You must provide the educational institution’s
institution’s EIN employer identification number (EIN) on your Form
8863, Education Credits.

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.
2 The standard for what is half of the normal full-time workload is determined by each eligible educational institution.

J-6
 Education Credits (continued)
Emergency financial aid grants used for a component of the cost of attendance or for unexpected
expenses, unmet financial need, or expenses related to the disruption of campus operations on
account of the COVID-19 pandemic, such as food, housing, health care (including mental health
care), or child care, are not included in gross income. Taxpayers may claim the American Opportunity Credit
or the Lifetime Learning Credit for eligible expenses paid with emergency financial aid grant funds if they
otherwise meet the requirements for the credit. The grants may not be reported on Form 1098-T. See Higher
Education Emergency Grant FAQs for details.

Who Can Claim the Credit?

• Taxpayers who paid qualified educational expenses of higher education for an eligible student unless filing
MFS.
• Taxpayers who paid the education expenses for a student enrolled at or attending an eligible educational
institution. To determine if eligible, go to the U.S. Department of Education’s Office of Post-secondary
Education (OPE) website.
• The eligible student is either the taxpayer, taxpayer’s spouse or their dependent.
Qualified education expenses are considered paid by the taxpayer if paid by their dependent or a
third party on behalf of the dependent. 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. 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.
There are two 4-year tests for the American opportunity credit. First, the credit can be taken for only 4
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 an Eligible Student for the American
Opportunity Credit” section in Publication 970 for additional information.

Who Can Claim a Dependent’s Expenses?

If the taxpayer… Then only…
Has a dependent who is an eligible student The taxpayer can claim the credit based on that dependent’s expenses. The
dependent can’t claim the credit.
Doesn’t claim the dependent on the tax return The dependent can claim the credit. The taxpayer can’t claim the credit based on
the dependent’s expenses.

Who Can’t Claim the Credit?

• Married filing separately filing status
• Anyone listed as a dependent on another person’s tax return
• Taxpayers whose modified AGI is more than the allowable income limits
• Taxpayer (or the spouse) was a nonresident alien for any part of the tax year unless one of the exceptions
listed in Publication 519, U.S. Tax Guide for Aliens, applies

J-7
 Education Credits (continued)
What Expenses Qualify?
• Expenses paid for an academic period starting in 2022 or the first 3 months of 2023
• Expenses not refunded when the student withdraws from class
• Expenses paid with the proceeds from a loan

What are Qualifying Expenses?

• For the American opportunity credit, course-related materials are books, supplies, and equipment needed
for a course of study whether or not the materials are purchased from the educational institution as a
condition of enrollment or attendance. The purchase of computer or peripheral equipment, computer
software, or Internet access and related services qualify for the credit if the student needs the computer for
attendance at the educational institution.

What is Tax-Free Educational Assistance?

• Tax-free parts of scholarships and fellowships
• Pell Grants (see Publication 970)
• Employer-provided educational assistance (see Publication 970)
• Veterans’ educational assistance
• Any other nontaxable payment (other than gifts or inheritances) received as educational assistance

Don’t reduce the qualified education expenses by any scholarship or fellowship reported as income
on the student’s tax return if the use of the scholarship isn’t restricted and used to pay education
expenses that aren’t qualified (such as room and board).
Taxpayers must have a Form 1098-T from an eligible educational institution to claim education
benefits.

If the student includes the tax free educational assistance in income, has a filing requirement, and
unearned income (including the taxable scholarship) over $2,300, the student may need to file Form
8615, Tax for Certain Children Who Have Unearned Income (Kiddie Tax). In that case, the return is
Out of Scope.

J-8
 Determining Qualified Education Expenses
Box 1 may include nontaxable scholarship and grant amounts. Some students may choose to pay
nonqualifying expenses with scholarship/Pell Grant funds, making the scholarship/Pell Grant taxable. This is
true even if the scholarship/grant was paid directly to the school. This may increase the amount of qualifying
expenses that can be used in calculating an education credit. Examples can be found in Coordination with
Pell grants and other scholarships or fellowship grants in Publication 970.

Determine the amount paid by verifying the payment received from the student account statement with the
amount shown in Box 1 of Form 1098-T. Remember to include books, supplies, course related materials and
equipment if claiming the American opportunity credit. Also remember to include out of pocket payments
made by the student or on the student’s behalf. This includes student loans, payments, credit cards and
taxable portions of scholarships/grants.

Example – Bill and Sue are eligible to claim the American opportunity credit for their daughter Sarah, who is
in her first year of college. They have a Form 1098-T with $7,000 in box 1 and a $3,000 Pell Grant in box 5.
During your interview with Bill and Sue, you determine that $3,000 was paid by Pell Grant and $4,000 was
paid by loan proceeds. They paid $500 for books in 2022. To calculate the eligible expenses for their credit,
take the $7,000 ($3,000 grant + $4,000 loan) paid in 2022, plus the $500 for books and enter on line 1 of the
worksheet below. The $3,000 Pell Grant will be entered on line 2a. The line 3 amount is $3,000. Subtracting
line 3 from line 1, you get qualified education expenses of $4,500. If the resulting qualified expenses are less
than $4,000, the student may choose to treat some of the grant as income to make more of the expenses
eligible for the credits.

CORRECTED
FILER’S name, street address, city or town, state or province, country, ZIP or 1 Payments received for OMB No. 1545-1574
foreign postal code, and telephone number qualified tuition and related
expenses
Clark University
150 Learning Drive
$
2
7,000
202 2 Tuition
Statement
Memphis, TN 38101
Form 1098-T
FILER’S employer identification no. STUDENT’S TIN 3 Copy B
98-000XXXX 800-00-XXXX For Student
STUDENT’S name 4 Adjustments made for a 5 Scholarships or grants
prior year This is important
Sarah Pine tax information
$ OOS $ 3,000 and is being
furnished to the
Street address (including apt. no.) 6 Adjustments to 7 Checked if the amount
in box 1 includes IRS. This form
scholarships or grants
123 Main Street for a prior year amounts for an must be used to
academic period complete Form 8863
City or town, state or province, country, and ZIP or foreign postal code
beginning January– to claim education
Memphis, TN 38101 $ OOS March 2022 credits. Give it to the
tax preparer or use it to
Service Provider/Acct. No. (see instr.) 8 Checked if at least 9 Checked if a graduate 10 Ins. contract reimb./refund
prepare the tax return.
half-time student ✔ student $
Form 1098-T (keep for your records) www.irs.gov/Form1098T Department of the Treasury - Internal Revenue Service

Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions)

1. Total qualified education expenses paid for on behalf of the student in 2022 for the
academic period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500
2. Less adjustments:
a. Tax-free educational assistance received in 2022 allocable to the academic period . . . . . . . . . . . . . . . 3,000
b. Tax-free educational assistance received in 2023 (and before you file your 2022 tax return) allocable
to the academic period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
c. Refunds of qualified education expenses paid in 2022 if the refund is received in 2022 or in 2023
before you file your 2022 tax return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
3. Total adjustments (add lines 2a, 2b, and 2c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
4. Adjusted qualified education expenses. Subtract line 3 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . 4,500

If the student doesn’t have a copy of their student account statement, ask them to go online through
their college or university to get this information.

Forms 1098-T with amounts listed in boxes 4 and 6 are Out of Scope (OOS).

J-9
 Entering Education Credits
Federal Section>Deductions>Credits Menu>Education Credits; or Keyword “8863”

If the taxpayer was under age 24 at the end of the year and
met the conditions as outlined in the student under age 24
chart in this tab, they can’t take the refundable American
opportunity credit.

TaxSlayer will allow you to compare the

education benefits and determine the
largest refund using each benefit.

See determining qualified expenses page earlier in this tab.

For lifetime learning credit, course-related books, materials,

and supplies are not included as qualified expenses unless
paid directly to the institution as a condition of enrollment.

J-10
 Entering Education Credits (continued)
Federal Section>Deductions>Credits Menu>Education Credits Form 1098-T; or Keyword “8863” or
“1098-T”

• Only the taxpayer is eligible to

claim the credit if he or she claims
the student as a dependent. Only
the student is eligible if he or she
isn’t claimed as a dependent (even
if he or she can be claimed) - no
matter who pays.
• For the American opportunity
credit only, qualified tuition and
related expenses include books,
supplies and equipment needed
for the course, whether or not they
were purchased from the institution
as a condition of enrollment. See
qualifying expenses earlier for
additional clarification regarding
computers.

If American opportunity credit is selected but the

taxpayer is determined to be ineligible after answering
qualifying questions, TaxSlayer will automatically
change the credit to lifetime learning without changing the tax
preparer’s credit selection or any other warning.

The bottom portion of this screenshot and the chart on the next page refers to students filing their
own return.

See Disallowance of Certain Refundable Credits in Tab I, Earned Income Credit, if the taxpayer
received a letter saying they had to complete Form 8862, Information To Claim Certain Credits After
Disallowance.

The following aren’t qualifying expenses for education credits: room and board, insurance, medical,
transportation, or personal expenses, even if the amount must be paid to the institution as a condition
of enrollment or attendance. If the educational expenses are associated with sports, games, hobbies,
or other noncredit courses, see Publication 970 for more information.
J-11
 Student Under Age 24 Claiming American Opportunity Credit
Probe/Action: Ask the taxpayer Action
1. Were you under 24 at the end of 2022? If NO, stop here; you do qualify to claim part of the allowable American opportunity
credit as a refundable credit.
If YES, go to question 2.
2. Were you over 18 at the end of 2022? If YES, go to question 3.
If NO, go to question 4.
3. Were you a full-time student (defined below) for If NO, stop here; you do qualify to claim part of your allowable American opportunity
2022? credit as a refundable credit.
If YES, go to question 5.
4. Were you 18 at the end of 2022? If YES, go to question 5.
If NO, go to question 6.
5. Was your earned income (defined below) less than If NO, stop here; you do qualify to claim part of your allowable American opportunity
one-half of your support for 2022? credit as a refundable credit.
If YES, go to question 6.
6. Were either of your parents alive at the end of If NO, stop here; you do qualify to claim part of your allowable American opportunity
2022? credit as a refundable credit.
If YES, go to question 7.
7. Are you filing a joint return for 2022? If NO, you do not qualify to claim part of your allowable American opportunity credit
as a refundable credit.
If YES, you do qualify to claim part of your allowable American opportunity credit as
a refundable credit.

Earned income. Earned income includes wages, salaries, professional fees, and other payments received
for personal services actually performed. Earned income includes the part of any scholarship or fellowship
that represents payment for teaching, research, or other services performed by the student that are required
as a condition for receiving the scholarship or fellowship. Earned income does not include that part of the
compensation for personal services rendered to a corporation which represents a distribution of earnings or
profits rather than a reasonable allowance as compensation for the personal services actually rendered.

Full-time student. Solely for purposes of determining whether a scholarship is considered support, you were
a full-time student for 2022 if during any part of any 5 calendar months during the year you were enrolled as
a full-time student at an eligible educational institution, or took a full-time, on-farm training course given by
such an institution or by a state, county, or local government agency.

J-12
Tab K: Finishing the Return

K-i
K-ii
 Completing the e-File Section
e-File Process
When all the data has been entered, complete the e-file section. The return should not be filed (e-filed or as a
paper return) until the e-file section has been completed.

Click e-File in the left navigation bar.

The software will display any errors and warnings concerning the return.

1. If the software displays an error on the return, read the error carefully and select Visit for that error.

2. Make corrections to the return to eliminate the error.

3. Select e-File again.

4. Select Visit for each e-file error until you correct all errors.

You cannot e-file the return until you correct all e-file errors.

5. Next, review any warnings.

6. If you need to change any information to eliminate a warning, select Federal Section in the left
navigation bar and make corrections to that section of the return.

7. Review your notes. If you need to change something in the return, select the appropriate section in
the left navigation bar and make changes.

8. When you finish reviewing warnings and notes, select Continue.

You can still e-file the return with warnings, but review each warning to ensure that you completed the
return accurately.

K-1
 Completing the e-File Section (continued)
Return Details
In most cases, your site will be the default entry and no action is necessary. If you are volunteering in an ad
hoc or virtual site, the software will display an ERO drop-down box and defaults to the main location. Select
the correct location from the preprogrammed list. This will ensure your ad hoc or virtual site has accurate
production numbers.

For a no refund/no payment return,

select e-file mail payment

Federal and State Return Types with a Refund

E-file: Paper Check E-filed with refund check mailed to taxpayer
E-file: Direct Deposit E-filed with direct deposit
1 Paper Return with Direct Paper return with direct deposit
Deposit
Paper Return Paper return with check mailed to taxpayer

To apply a federal refund towards next Federal and State Return Types with an Amount Owed
year’s taxes open Federal>Payments and
Mail Payment E-filed without direct debit
Estimates>Apply Payments to Next Year’s Taxes.
Direct Debit E-file with direct debit
To apply state refund to next year’s state taxes, Paper Return Paper return with check included
go to State>Payments>Apply your State Refund.

Apply your State Refund. Select the Only transmit the state return(s) box if the state return is to be e-filed, but federal will
1 not be filed. You may need to do this if the taxpayer is not required to file a federal return or has already filed a federal return.

Select an E-file option for the federal return even though you are not electronically filing the federal return. Then complete the
remainder of the information on the E-File and Submission pages.

K-2
 Completing the e-File Section (continued)
State Return(s)
Enter type of state return

If the state return is marked as Paper and the federal return is e-filed, confirm this is the correct choice and
not a mistake.
For a no refund/no payment
return, select e-file mail payment

Federal and State Return Types with a Refund

E-file: Paper Check E-filed with refund check mailed to taxpayer
E-file: Direct Deposit E-filed with direct deposit
Paper Return with Paper return with direct deposit
IRS e-file Signature Authorization Direct Deposit
The taxpayers’ PINs are defaulted to 1+ the last four Paper Return Paper return with check mailed to taxpayer
digits of the SSN in the electronic return record
before the taxpayers sign Form 8879, IRS e-file
Signature Authorization. The taxpayers must sign
Federal and State Return Types with an Amount Owed
and date Form 8879 before the ERO originates the
electronic submission of the return and after Mail Payment E-filed without direct debit
reviewing the return and ensuring the tax return Direct Debit E-file with direct debit
information on the form matches the information on Paper Return Paper return with check included
the return.

Taxpayer 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 (ERO) PIN in TaxSlayer

98765 is defaulted in Office Setup

The information is pulled from Office Setup to Part III of Form 8879

K-3
 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.

Completing Bank Account Information and Entering Direct Deposit Information

If direct deposit or direct debit is selected for either
federal or state return, the Taxpayer Bank Account
Information screen will appear.

In this section, the preparer inputs the bank routing

and account number for direct deposit of refund or
automatic withdrawal of balance due.

Re-loadable Prepaid Bank Cards:

The taxpayer must provide the routing number and
account number for the card so that it can be entered
on the bank information screen.

See Pointers for Direct Deposit of Refunds

later in this tab.

Use written or electronic account information

from the financial institution.

1 1 Input the name of the bank as stated on the check

(Optional).
2

2 Input both the routing and account number twice on this

screen

K-4
 Completing the e-File Section (continued)
(Administrator) Configuration>Office Setup

Split Refund Option

When the taxpayer elects to direct deposit his or her refund into two or three accounts or to purchase saving
bonds, you will need to answer additional questions in the e-file section. When the taxpayer elects to direct
deposit his or her refund into two or three accounts or to purchase saving bonds, you will need to answer
additional questions in the e-file section.

First, someone with Administrator privileges must go to Configuration>Office Setup and mark the box for
Offer 8888. This will allow all preparers at that site to offer Form 8888, Allocation of Refund (Including
Savings Bond Purchases). Form 8888 also supports double-entry of bank routing and account information.

Purchase Savings Bonds

From Split Refund Screen, savings bonds can be purchased.

U.S. Series I Savings Bonds Taxpayers can

request that their refund (or part of it) be used
to buy up to $5,000 in series I savings bonds.
Taxpayers can buy bonds electronically by direct
deposit into their TreasuryDirect® account. Or, if they
don’t have a TreasuryDirect® account, they can buy
paper savings bonds.
TreasuryDirect® Account
Taxpayers can request a deposit of their
refund (or part of it) to a TreasuryDirect®
online account to buy U.S. Treasury marketable
securities and savings bonds. For more information,
See Publication 5381, Fact Sheet: Filing Form go to Treasury Direct (http://go.usa.gov/3KvcP)
8888 and Series I Savings Bonds for VITA/TCE
The taxpayer’s name must be on the account
Partners.
in order for a refund to be deposited.

State ID (Optional)

Some states require a drivers license or additional taxpayer

identification in order to e-file the return. This screen will
appear only if there is a state return.

Select driver's license or ID, license number, date issued,

date expires and issuing state. If taxpayer's license has
expired, select None Available. See state requirement and
work around if applicable.

K-5
 Completing the e-File Section (continued)

Global Carryforward
Paper Form 15080, Consent to Disclose Tax Return Information to VITA/TCE Tax Return Preparation
Sites, is not needed if the taxpayer denies the Global Carryforward of return data to all sites, enters
his/her own PIN into TaxSlayer, or if the site uses another tax preparation software.

Accept = Next year, the taxpayer’s data will carry forward to

any VITA/ TCE site using TaxSlayer.

Decline = Next year, the taxpayer’s data will carry forward

only to the VITA/TCE site that prepared the return.

Questions
Answer 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.

If your site or group administrator

marked a question as Required, you
must answer the question to continue. If you
select BACK before you answer the required
questions, TaxSlayer Pro Online does NOT
save any of the data entered on this page.

Completing the Submission Page

TaxSlayer Pro Online indicates in

State Return Information if the preparer
selected Paper Return for the state(s)
associated with the return.

K-6
 Completing the e-File Section (continued)

Return Status
Use tags as directed by your site coordinator.
Once the Quality Reviewer confirms the
accuracy of the return, mark the return
Approved. When the return is shared with
and Form 8879 is signed by the taxpayer(s),
select Mark tax return as complete.

Extra button shows up after ready for review is

checked (approve or deny) which has to be checked
before the reviewer can mark Complete.

Most preparers won't see the transmit button.

Customer Portal
Inviting Taxpayers to the Customer Portal - Initial Invitation
You can invite the taxpayer to the Customer Portal at any point after you complete the taxpayer's Basic
Information pages. To begin the invitation to the Customer Portal, use the following steps:

1. Do one of the following:

a. Select Create Customer Portal from the taxpayer drop-down menu,

b. Select Create Customer Portal from the left navigation panel,
c. Select CUSTOMER PORTAL on the Submission page
TaxSlayer displays the Customer Portal Link page, defaulting the taxpayer's phone number and/or email
address from Basic Information

2. Verify the taxpayer's phone number or email address, or type the information in the appropriate box.
If you type both a phone number and email address, the Customer Portal defaults the invitation to
the taxpayer's email address.

3. Select CONTINUE.

TaxSlayer Pro Online displays a message that the link was sent to the taxpayer successfully. Each link is
unique to the taxpayer. It cannot be used to create a Customer Portal account for another taxpayer.

Working in the Customer Portal

As the tax preparer, you can send tax documents to the taxpayer, access files when the taxpayer uploads
them, and chat with the taxpayer. This provides a full range of communication and document sharing options
when working with a taxpayer on a tax return.

K-7
 Customer Portal (continued)
Making Tax Documents Available to the Taxpayer
When you need a taxpayer to review tax documents, whether as a review before filing or after filing, you can
make those documents available through Customer Portal. To do so, use the following steps:

1. Navigate through the return to the Submission page.

2. Click SEND TAX RETURN DOCUMENTS TO CUSTOMER PORTAL.

Accessing Documents After Taxpayer Upload

After a taxpayer uploads documents, you can access them from Scanned Documents. To do so, use the
following steps:

1. Click Scanned Documents from the Taxpayer drop-down menu. TaxSlayer Pro Online displays the
Scanned Documents page, which includes any tax return documents you have made available to the
taxpayer through Customer Portal and any documents the taxpayer has uploaded.

2. Download the documents as needed.

Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return
Form 8453 will be used to transmit specific supporting documents that can’t be e-filed. Those paper forms,
schedules and supporting documents include:

• Form 2848, Power of Attorney and Declaration of Representative (or POA that states the agent is granted
authority to sign the return)
• Form 8332, Release / Revocation of Release of Claim to Exemption for Child by Custodial Parent (or
certain pages from a divorce decree or separation agreement, that went into effect after 1984 and before
2009) (see instructions)
• Form 8949, Sales and Other Dispositions of Capital Assets (or a statement with the same information),
if you elect not to report your transactions electronically on Form 8949. Form 8453 is to be mailed to the
Austin Submission Processing Center within three business days.
Mail Form 8453 to:

Internal Revenue Service

Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254

Alternatively, a PDF of the attachments can be attached to the electronic return. In that case, no Form
8453 is required. To do this, scan the document to create the PDF. However, only select forms can be
uploaded into TaxSlayer. Refer to Form 8453 for a list of acceptable documents.

Quality Review Process

To promote accuracy, per Quality Site Requirement #2: Intake/Interview & Quality Review Process, all tax
returns must be quality reviewed. Every item on the Quality Review Checklist must be addressed while
reviewing Form 13614-C, Intake/Interview & Quality Review Sheet, all supporting documents, and the
completed tax return. The taxpayer must be available to explain any discrepancies the Quality Reviewer may
discover.

K-8
 Quality Review Process (continued)
There are two acceptable quality review methods:
• Designated Review - This preferred quality review method uses a designated Quality Reviewer. This is a
volunteer who is solely dedicated to reviewing returns prepared by the other volunteers at the site.
• Peer Review - When a designated Quality Reviewer is not available, volunteers can review each other’s
returns.

All items below in the Quality Review Checklist must be addressed:

• Taxpayer (and Spouse’s) identity was verified with a photo ID during the visit
• The volunteer return preparer and quality reviewer are certified to prepare/review this return and return is
within scope of the program
• All Form 13614-C questions in Parts I through V are answered and unsure boxes were discussed with the
taxpayer and correctly marked yes or no
• All Form 13614-C applicable information in the shaded area on Page 1 was completed by the certified
volunteer preparer
• Names, Addresses, SSNs, ITINs, and EINs are verified and correct
• Filing status is correct
• Dependency determinations are correct. If Taxpayer can be claimed as a dependent on someone else’s
return, verify that it is properly recorded in the basic information section.
• All Income on Form 13614-C (with or without source documents) checked “yes” in Part III is verified and
correct
• All applicable adjustments to income are verified and correct
• Standard or Itemized Deductions are correct
• All eligible credits are correct
• All applicable provisions of ACA were considered for each person named on the tax return and are correct
• Federal Income Tax Withholding and Estimated Tax Payments are correct. Confirm federal and state
Return Types are correct (e.g. e-file vs. paper)
• Direct Deposit/Debit and checking/saving account numbers are correct
• Confirm federal and state Return Types are correct (e.g. e-file vs. paper)
• SIDN is correct on the return
• During the visit, the taxpayer(s) was advised that they are responsible for the information on their return
• Any errors identified or incomplete Form 13614-C are discussed with the preparer
Refer to Publication 5310, Tax Return Quality Review Job Aid, for additional guidance on how to conduct a
quality review.

Due Diligence
All IRS tax law-certified volunteers are required to exercise due diligence. This means, as a volunteer, you
are required to do your part when preparing or quality reviewing a tax return to ensure the information on the
tax return is correct and complete.
Doing your part includes: confirming a taxpayer’s (and/or spouse, if applicable) identity and providing top-
quality service by helping them understand and meet their tax responsibilities.
Generally, an IRS-certified volunteer may rely in good faith on information from a taxpayer without requiring
documentation as verification. However, part of due diligence requires volunteers to ask a taxpayer to clarify
information that may appear to be inconsistent or incomplete. When reviewing information for accuracy,
volunteers need to ask themselves if the information is unusual or questionable. Follow-up questions are
required when these types of items are identified.
K-9
 TaxSlayer Basic Quality Review - Print Set
Quality Review using TaxSlayer: Refer to Publication 5310, VITA/TCE Tax Return Quality Review Job Aid

Return Open: After the return is prepared and still opened by the preparer, the preparer should select
Quality Review from the drop down list on the Submission page in TaxSlayer. The Quality Reviewer may
select the “Quality Review” print set. Although TaxSlayer calls these print sets, returns can be viewed
without printing using Adobe Reader.

A peer-to-peer reviewer may use the “Return Open” process.

Return Closed: If the preparer closes the return, the Quality Reviewer should select the printer icon
drop down list from the Client List page. This list will include the printer options for the Quality Reviewer.

A designated reviewer may use the “Return Closed” process.

Selecting the Quality Review print set while the return is opened or closed, the Quality Reviewer will be
able to review all documents included in the tax return. Compare the IRS Form 13614-C to the embedded
TaxSlayer Intake/Interview sheet to verify all the correct documents are included in the tax return.

K-10
 TaxSlayer Basic Quality Review - Print Set (continued)
Once the basic Intake/Interview documents are reviewed, the Quality Reviewer should review the other
pages included in the print set of the tax return. These pages include forms, schedules, and worksheets
required to complete the Quality Review of the tax return. Once the Quality Reviewer confirms the accuracy
of the return, the return should be marked Approved. When the return is shared with and Form 8879
is signed by the taxpayer(s), select the Mark tax return as complete button. By selecting this option,
TaxSlayer makes the return available for transmission to the TaxSlayer Processing Center.

K-11
 Return Signature
A return isn’t considered valid unless it is signed. Both spouses must sign if the return is filed jointly.
The return should be dated and the occupation lines should be completed. Advise the taxpayer they’re
responsible for the information on the return.

When Someone Can Sign for You

Child’s Return
If a child can’t sign his or her name, the parent, guardian, or another legally responsible person must sign
the child’s name in the space provided followed by the words “By (parent or guardian signature), parent or
guardian for minor child.”

Incapacitated Spouse
If the spouse can’t sign because of injury or disease and tells the taxpayer to sign for him or her, the taxpayer
can sign the spouse’s name on the return followed by the words “By (your name), Husband (or Wife).” A
dated statement must be attached to the return. See Publication 501, Dependents, Standard Deduction, and
Filing Information, for requirements to include in the statement.

Military Spouse
If the taxpayer’s spouse is unable to sign the return because he or she is serving in a combat zone or is
performing qualifying service outside of a combat zone, and the taxpayer doesn’t have a power of attorney
(POA) or other statement, the taxpayer can sign for their spouse. Attach a signed statement to the return that
explains that the spouse is serving in a combat zone. See Publication 3, Armed Forces’ Tax Guide, for other
situations.

Court-Appointed Conservator or Other Fiduciary

If you are a court-appointed conservator, guardian, or other fiduciary for a mentally or physically incompetent
individual who has to file a tax return, sign your name for the individual and file Form 56, Notice Concerning
Fiduciary Relationship.

Power of Attorney (POA)

Attach a copy of the taxpayer’s original paper POA to a copy of Form 8453 for the site to send to the IRS
once the return is accepted. Alternatively, you may scan the POA as a PDF and attach the PDF to the
return prior to creating the e-file. See Publication 17, Your Federal Income Tax For Individuals, Chapter 1.
For additional details, see Publication 947, Practice Before the IRS and Power of Attorney, and Form 2848
Instructions. Even when the taxpayer’s agent is using a power of attorney different than Form 2848, follow
the same process.

Mail the POA with Form 8453 to:

Internal Revenue Service

Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254

K-12
 Return Signature (continued)
Deceased Taxpayer

Federal Section>Personal Information

If the spouse died during the year and the surviving spouse didn’t remarry, a joint return can be filed. If
a taxpayer died before filing the return and had no filing requirement but had tax withheld, a return must
be filed to get a refund. If the decedent had a filing requirement, the taxpayer’s spouse or personal
representative will have to file and sign a return for the person who died. A personal representative can be
an executor, administrator, or anyone who is in charge of the decedent’s property. If no one has yet been
appointed as executor or administrator, the surviving spouse can sign the return for the deceased spouse
and enter “Filing as surviving spouse” in the area where the return is signed.

If filing a paper return, write “Deceased,” the decedent’s name, and the date of death across the top of the
tax return. TaxSlayer will automatically note on the top of Form 1040, U.S. Individual Income Tax Return, the
decedent’s name, and date of death.

Form 2848, Power of Attorney and Declaration of Representative, is invalid once the taxpayer dies; therefore
Form 56 or new Form 2848 signed by estate executor or representative must be completed. See Publication
559, Survivors, Executors, and Administrators, for details.

Claiming a Refund for a Deceased Person

Federal Section>Miscellaneous Forms>Form 1310

Court-appointed representatives should

file the return and attach a copy of the
certificate that shows their appointment.
All other filers requesting the decedent’s
refund should file the return and attach
Form 1310, Statement of Person
Claiming Refund Due a Deceased
Taxpayer. The software completes
this form. In some cases, e-filing is
permitted; however, the program may
generate a warning and block e-filing.
In this case, the return must be paper
filed with a copy of their appointment
document.
If either Option A or B is selected
under Part I, you will receive a
message that the return must be
paper filed.

Only option C is allowed electronically

and completion of Part II is required. The
taxpayer must provide proof of death if
requested by IRS. The taxpayer must
also certify they are entitled to the refund
and will administer the funds as stated
under state law.

K-13
 Printing the Tax Return
Client Search>Office Client List or 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, select Save. The program will display the Submission page. From this
page, click on the drop down arrow, select the appropriate print set, and then select Print Return. Once the
PDF is generated, you can choose the pages you wish to print and the number of copies you wish.

K-14
 Distributing Copies of Returns

Taxpayer Paper Federal Return

• Form 1040 with all forms/schedules including • Signed Form 1040 with all forms/schedules.
signed Form 8879 and Form 8453, if applicable. • Organize the federal copy of the return according
• Organize the taxpayer’s copy of the return to the attachment sequence at the top right corner
according to the attachment sequence at the of each form. Any supplemental schedules are put
top right corner of each form. Any supplemental at the end.
schedules are put at the end. • Attach federal copies of Form(s) W-2 and any
• Form 8332, if applicable. Form(s) 1099 with withholding.
• Original Power of Attorney, if applicable.
• State forms/schedules, as applicable. Paper State Return
• All other taxpayer documents including • Signed state return with all forms and schedules.
Form(s) W-2 and Form(s) 1099.
• Attach a copy of the federal return if required by
state instructions.
Electronic Return Originator (ERO) • Attach state copies of Form(s) W-2 and any
• Form 8453 and attachments for mailing. Form(s) 1099 with withholding.

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, Partner Resources 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-15
 Pointers for Direct Deposit of Refunds
1. Using a check, paper or electronic documentation from the financial institution as proof of account, verify:

a. Routing Transit Number (RTN). The RTN must contain 9 digits and begin with 01 through 12 or 21
through 32.
b. 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 on the next page, the account number is 20202086. The 16-digit number on a
debit card is not the account number.

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 canceled 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
someone 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:

a. You are unfamiliar with the financial institution. (Some types of accounts that exist through brokerage
firms can’t accept direct deposits.)
b. 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. Refer to Form 8888, Allocation of Refund (Including Savings Bond Purchases),
or the IRS website 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.

K-16
 Pointers for Direct Deposit of Refunds (continued)

TONY MAPLE 1234

JENNIFER MAPLE
15-0000/0000
123 Pear Lane
Anyplace, GA 00000
PAY TO THE
ORDER OF $
DOLLARS
Routing Account
ANYPLACE BANK number number Do not include
Anyplace, GA 00000
(line 74b) (line 74d) the check number.
For

250250025 202020 86 1234

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.

If the bank routing number or account number is not obtained from a check, you should consult with
the Site Coordinator regarding the procedure for verifying direct deposit information.

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 partner’s
personal or business bank/debit card accounts.

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 convert to a paper refund check and will be mailed
to the taxpayer.

K-17
 Balance Due Returns

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 filing due date, including extensions 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

a. 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. Advise taxpayers that they
should check their account to verify that the payment was made.

2. IRS Direct Pay

a. IRS direct pay on the IRS website 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 Step 2 Step 3 Step 4 Step 5
Provide your tax Verify your identity Enter your payment Review and electronically Print or record your online
information information sign the transaction confirmation number

3. Check or money order payments

a. Don’t attach the payment to the return.

b. Refer to instructions on Form 1040-V, Payment Voucher.
c. Submit the payment with a properly completed Form 1040-V.
d. Don’t mail cash.

4. Credit card payments

a. American Express, Discover, Mastercard, or Visa cards are accepted.

b. A convenience fee will be charged by the service providers.
c. For details, go to Pay Your Taxes by Debit or Credit Card or Digital Wallet (www.irs.gov/payments/
pay-your-taxes-by-debit-or-credit-card).

See Form 1040 Instructions for additional information.

K-18
 Balance Due Returns (continued)
Taxpayers can check the balance owed on their account by creating an account on IRS.gov or by
requesting an account transcript. www.irs.gov/payments/view-your-tax-account

5. Electronic Federal Tax Payment System (EFTPS)

a. 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, go to EFTPS: The Electronic Federal Tax Payment System (www.irs.gov/payments/eftps-
the-electronic-federal-tax-payment-system) or call EFTPS Customer Service at 1-800-555-4477 (for
individual payments). TTY/TDD help is available by calling 1-800-733-4829. Assistance is available in
Spanish at 1-800-244-4829.
You must have a valid Social Security Number (SSN) to use this application. This application cannot
accommodate Individual Taxpayer Identification Numbers (ITINs)

6. Cash (at a retail partner)

a. Taxpayers can make a cash payment without the need of a bank account or credit card at more than
27,000 retail locations nationwide. To find a location near you, go to IRS site Pay With Cash at a
Retail Partner (www.irs.gov/payments/pay-with-cash-at-a-retail-partner).

7. Pay by Mobile Device

a. To pay through a mobile device, taxpayers may download the IRS2Go app.

What if the taxpayer can’t pay?

Online Payment Agreement (OPA):

If the taxpayer’s balance is $50,000 or less, the taxpayer can make a payment arrangement at Apply Online
for a Payment Plan (www.irs.gov/payments/online-payment-agreement-application). If the taxpayer can
pay within 180 days, there is no user fee for an Online Payment Agreement (OPA). Taxpayers may also call
the IRS to set up a short-term payment plan.

If the taxpayer requires more than 180 days to pay, there is an installment agreement user fee. The amount
of the fee is less if the payments are set up using direct debit or applying online compared to applying by
phone, mail, or in person. If the taxpayers' income is below certain limits, they may qualify for a reduced
fee, which may be identified when going through the OPA process. See Form 9465, Installment Agreement
Request, instructions for fee information and Form 13844, Application for Reduced Use Fee for Installment
Agreement.

Taxpayers can revise their agreement via OPA.

OPA can be used even before the taxpayer receives a bill for the balance due.

Taxpayers who don’t use OPA:

If the taxpayer can pay within 180 days, the taxpayer must call IRS at 1-800-829-1040.

If the taxpayer needs longer than 180 days, the application for an installment agreement can be made by
using Form 9465. If the return is being filed electronically, Form 9465 can be included with the e-filed return.
In TaxSlayer, go to Miscellaneous Forms, Installment Agreement Request, and complete the requested

K-19
 Balance Due Returns (continued)
information. However, OPA payment plans are processed quicker than requests made with electronically filed
returns.

If the taxpayer requires more than 180 days to pay, there is an installment agreement user fee. The user
fee is more using this method than using OPA. Low income taxpayers may qualify for a reduced user fee by
using Form 13844.

Taxpayer who need to revise their agreement must call IRS at 1-800-829-1040 or file a new Form 9465. This
may also be done in TaxSlayer.

Requesting additional time to pay due to undue hardship

The taxpayer can request an extension of time to pay if paying the tax by the due date will be an undue
hardship. For details see Form 1127, Application for Extension of Time for Payment of Tax Due to Undue
Hardship. This form is Out of Scope.

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 (www.irs.gov/payments/offer-in-
compromise) 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 Form 656-B, Offer in Compromise. An
offer is subject to a user fee. If the taxpayers' income is below certain limits, they may qualify for a waiver of
the user fee. The application for this is part of Form 656-B.

K-20
 Balance Due Returns (continued)
How Can a Taxpayer Avoid a Balance Due in the Future?

Taxes withheld are based on filing status, dependents, and other adjustments on the return.

• If the taxpayer didn’t have enough withheld from his/her paycheck, pension income or taxable social
security benefits and there is an amount owed on the current return:
o Advise the taxpayer to access the Tax Withholding Estimator (www.irs.gov/payments/tax-
withholding).
o Advise the taxpayer to submit a revised Form W-4, Employee’s Withholding Certificate, to the employer.
For pension income, taxpayers should submit a revised Form W-4P, Withholding Certificate for Pension
or Annuity Payments, to the pension payer or contact the pension administrator to increase withholding.
o Advise taxpayers who receive retirement payments other than pensions or annuities to submit Form W4-
R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions, to the payer of
their retirement payments to increase withholding.
o Advise taxpayers who received taxable social security benefits or unemployment to submit Form W-4V,
Voluntary Withholding Request, to request withholding from social security of 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):
o 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
amount expected to be due.

• Advise the taxpayer to review Publication 505, Tax Withholding and Estimated Tax.
• Forms or Publications can be obtained from IRS.gov.
• If the taxpayer is receiving the advanced premium tax credit (APTC), they should notify the Marketplace
when they have any significant change to geographic location, income, family size or a life event.

This information only applies to federal balance due returns. For state information, consult the
applicable state.

K-21
 Estimated Tax Payments
Federal Section>Payments & Estimates>Vouchers for 20XX Estimated Tax Payments>Estimated Payments for
Next Year; 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

Vouchers will be generated when the return is printed. To enter State Estimated Payments, go to
State>Miscellaneous Forms

When the IRS due date falls on Saturday, Sunday, or a legal holiday, the due date is the next
business day.

Federal Section>Payments & Estimates>Apply Overpayment to Next Year’s Taxes

K-22
Tab L: Resident/NR Alien

L-i
L-ii
 Resident or Nonresident Alien Decision Tree
Start here to determine your residency status for federal income tax purposes

Were you a lawful permanent resident of the United States ("had a green card") at any time during
the current tax year?1

YES NO

Were you physically present in the United States on at least 31 days during the current tax year?3

NONRESIDENT Alien for U.S. Tax Purposes

RESIDENT Alien for U.S. Tax Purposes1, 2

YES NO

Were you physically present in the United States on at least 183 days during the 3-year period
consisting of the current tax year, and the preceding 2-years, counting all days of presence in the
current tax year. 1/3 of the days of presence in the first preceding year. and 1/6 of the days of
presence in the second preceding year?3

YES NO4

Were you physically present in the United States on at least 183 days during the current tax year?3

YES NO

Can you show that for the current tax year you have a tax home in a foreign country and have a
closer connection to that country than to the United States? (*Out of Scope, Form 8840 required)

NO YES5

1If this is your first or last year of residency, you may have a dual status for the year. See Dual-Status Aliens in Pub 519. (Out of Scope)
2Insome circumstances you many still be considered a nonresident alien and eligible for benefits under an income tax treaty between the U.S.
and your country. Check the provision of the treaty carefully (Must be certified appropriately).
3See Days of Presence in the United States in Pub 519 for days that do not count as days of presence in the U.S. (Exempt individuals such
students, scholars, and others temporarily in the U.S. under an F, J, M, or Q visa's immigration status do not count their days of presence in the
U.S. for specified periods of time).
4Ifyou meet the substantial presence test for the following year, you may be able to choose treatment as a U.S. resident alien for part of the
current tax year. See Presence Test under Resident Aliens and First-Year Choice under Dual Status Aliens in Pub. 519. (Out of Scope).
5Nonresident students from Barbados, Hungary, and Jamaica, as well as trainees from Jamaica, may qualify for an election to be treated as a U.S.
Resident for tax purposes under their tax treaty provisions with the U.S. A formal, signed, election statement must be attached to the Form 1040
(preparation of the statement is Out of Scope). (It continues until formally revoked).

L-1
 Resident or Nonresident Alien Decision Chart
Determine residency status for federal income tax purposes.
Step Probe/Ask the taxpayer Action
Were you a lawful permanent resident of the United States (had a YES – RESIDENT Alien for U.S. tax purposes1, 2
1 “green card”) at any time during the current tax year? NO – Go to Step 2
Were you physically present in the United States on at least 31 days YES – Go to Step 3
2 during the current tax year?3 NO – NONRESIDENT Alien for U.S. tax purposes5

Were you physically present in the United States on at least 183 days YES – Go to Step 4
3 during the 3-year period consisting of the current tax year and the NO – NONRESIDENT Alien for U.S. tax purposes4, 5
preceding 2 years,
• counting all days of presence in the current tax year,
• 1/3 of the days of presence in the first preceding year, and
• 1/6 of the days of presence in the second preceding year?3
Were you physically present in the United States on at least 183 days YES – RESIDENT Alien for U.S. tax purposes1, 2
4 during the current tax year?3 NO – Go to Step 5

Can you show that for the current tax year you have a tax home in a YES* – NONRESIDENT Alien for U.S. tax purposes5
5 foreign country and have a closer connection to that country than to NO – RESIDENT Alien for U.S. tax purposes1, 2
the United States? (*Out of Scope, Form 8840, Closer Connection
Exception Statement for Aliens required)

1 If this is your first year of residency, you may have a dual status for the year. See Dual Status Aliens in Pub 519, U.S. Tax Guide for Aliens. (Out
of Scope)
2 In some circumstances you may still be considered a nonresident alien and eligible for benefits under an income tax treaty between the U.S. and
your country. Check the provision of the treaty carefully. (Out of Scope)
3 See Days of Presence in the United States in Publication 519 for days that do not count as days of presence in the U.S. (Exempt individuals
such as students, scholars, and others temporarily in the U.S. under an F, J, M, or Q visa’s immigration status do not count their days of
presence in the U.S. for specified periods of time.)
4 If you meet the substantial presence test for the following year, you may be able to choose treatment as a U.S. resident alien for part of the
current tax year. See Substantial Presence Test under Resident Aliens and First Year Choice under Dual Status Aliens in Publication 519. (Out of
Scope)
5 Nonresident students from Barbados, Hungary, and Jamaica, as well as trainees from Jamaica, may qualify for an election to be treated as a
U.S. Resident for tax purposes under their tax treaty provisions with the U.S. A formal, signed, election statement must be attached to the Form
1040 (preparation of the statement is Out of Scope). (It continues until formally revoked.)

L-2
 Resident or Nonresident Alien Decision Chart (continued)
If after using the Resident or Nonresident Alien Decision Tree (Page L-1) you have determined a taxpayer is
a Resident Alien for U.S. Tax Purposes, and does not meet any of the exceptions that would be outside of
the scope of the VITA program, select one of the filing statuses listed under the Basic Information Section in
TaxSlayer Pro. A Resident Alien is treated like a U.S. Citizen when determining filing status.

If after using the Resident or Nonresident Alien Decision Tree (Page L-1) you have determined a taxpayer is
a Nonresident Alien for U.S. Tax Purposes, as the initial return screen opens or under the Basic Information
Section in TaxSlayer Pro, select Nonresident Alien, if you have certified under the Foreign Student and
Scholar Module and the taxpayer’s circumstances are within the scope of the Foreign Student and Scholar
VITA program. After selecting the Nonresident Alien filing status, you will be given three (3) choices; Single
nonresident alien, Married nonresident alien, or Qualifying Surviving Spouse with dependent child.

You will only complete a tax return for a Nonresident Alien if you have certified on the Foreign Student and
Scholar Module, and at least 1 other person at your site, who is also certified on the Foreign Student and
Scholar Module, can quality review the return.

Be sure to have the taxpayer complete Form 13614-NR, Nonresident Alien Intake and Interview Sheet, and
use Publication 4011, VITA/TCE Foreign Student and Scholar Volunteer Resource Guide, to conduct the
Quality Review.

Electronic Filing of Returns with Valid ITIN

Federal Section>Income> Wages and Salaries; or Keyword “W”

Returns can be electronically filed when the taxpayer has an Individual Taxpayer Identification Number (ITIN)
but has a Form W-2 with a Social Security Number (SSN) that belongs to another taxpayer. The taxpayer
may be working on an erroneous Social Security number. Use that Social Security number only on the Form
W-2.

1. The taxpayer’s ITIN must be entered on the personal information screen in the space provided for the
taxpayer’s or spouse’s Social Security number, if applicable.

2. When completing the Form W-2 in TaxSlayer, enter the SSN shown on the paper Form W-2. The Internal
Revenue Service requires the manual key entry of the Taxpayer Identification Number (TIN) as it appears
on Form W-2 received from the employer for all taxpayers with ITINs who are reporting wages. The ITIN
that was entered when the return was started won’t auto-populate the TIN on Form W-2 for these ITIN filers.

ITIN taxpayers requesting to file Forms 1099-R, Distributions

from Pensions, Annuities, Retirement or Profit-Sharing Plans,
IRAs, Insurance Contracts etc., with an incorrect Social
Security Number must file a paper return. These returns can’t be
e-filed. There are no procedures in place to e-file these types of
returns.

L-3
 Creating a Temporary ITIN when the Spouse
and/or Dependent(s) are Applying for an ITIN
Federal Section>Miscellaneous Forms> Application for ITIN

TaxSlayer will not generate temporary ITINs for the taxpayer, spouse and/or dependents on a return if
Form W-7, Application for IRS Individual Taxpayer Identification Number, is needed. The ITIN application
requires a federal tax return be associated with all Form W-7 applications (with some exceptions) as noted in
the instructions for Form W-7. Federal tax returns can’t be filed using electronic return preparation software
without a TIN (taxpayer identification number). If the taxpayer is working under an erroneous Social Security
number, that Social Security number should be used only on the W-2.

1. In the TIN field for all individuals needing to complete Form W-7, enter all digits as zeros “0”. A return
requiring three temporary TINs will be entered as follows:

The spouse’s 000-00-0000

The first dependent’s 000-00-0000
The second dependent’s 000-00-0000

2. Ensure that a check mark is correctly listed next to "Check here if the individual does not have an SSN,
ITIN, or ATIN.

3. Select "Yes" to the statement "This dependent will be completing a Form W-7, Application for ITIN."

4. Select each individual in TaxSlayer. Fill in the name of each family member applying for an ITIN on a
separate Form W-7 application. Make sure that names match required documentation that clients will be
submitting with their W-7 application(s). See Tab B, Starting a Return and Filing Status, Determining the
Last Name of the Taxpayer section for additional information.

5. Print the return package, and provide the return package to the taxpayer to mail with Forms W-7 to the
address shown on the Form W-7 instructions.

6. If the taxpayer has a family pack that includes multiple Forms W-7 with one return, or multiple returns with
one Form W-7, these forms should be staggered and stapled together to show the entire package as a
family pack. This will prevent separation of the forms/returns that could delay the processing time.

7. Have taxpayers mail Form W-7 application(s), all original supporting documentation or certified copies
of documents from the issuing agency, and tax return or take to a Certifying Acceptance Agent (CAA) or
local Taxpayer Assistance Center (TAC) for ITIN Authentication.
Not all TAC offices are authorized to perform ITIN Authentication. See the list of supporting
documentation in the Instructions for Form W-7, Application for IRS Individual Taxpayer Identification
Number.

8. If applicable, prepare a copy of the state return with a copy of the federal return attached. If taxpayers will
not owe state taxes, suggest they hold the state return until they receive their official ITIN letter(s), which
may take 7 weeks (9 to 11 weeks if submitted during peak processing periods, January 15 through April
30). Once the ITIN(s) is assigned, record them on the state tax returns before mailing.
Any ITIN that wasn't included on a U.S. federal tax return at least once for three consecutive tax
years will expire on December 31 of the third consecutive tax year of non-use. ITINs with middle
digits (the fourth and fifth positions) “70,” “71,” “72,” “73,” “74,” “75,” “76,” “77,” “78,” “79,” “80,” “81,”
“82,” “83,” “84,” “85,” “86,” “87” or “88” have expired. In addition, ITINS with middle digits “90,” “91,” “92,” “94,”
“95,” “96,” “97,” “98,” or “99” assigned before 2013 have expired. These affected taxpayers who expect to
file a tax return in 2022 must submit a renewal application. If a renewal application was previously submitted
and approved, the applicant does not need to renew again.

For more information refer to Instructions for Form W-7.

L-4
 Creating a Temporary ITIN when the Spouse
and/or Dependent(s) are Applying for an ITIN (continued)
The following communication products provide information on the Individual Taxpayer Identification Number
(ITIN) program.

Publication 519, U.S. Tax Guide for Aliens

Publication 519 (SP), U.S. Tax Guide for Aliens (Spanish Version)

Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number ITIN

Publication 1915 (SP), Understanding Your IRS Individual Taxpayer Identification Number ITIN (Spanish
Version)

L-5
Notes

L-6
Tab M: Other Returns

M-i
M-ii
 Amended Returns
Overview of Amended Return Preparation Process in TaxSlayer
Access the federal and state amended return screens from the navigation MENU on the left side of
the screen.

Taxpayers should file amended returns using Form 1040-X to correct any errors or omissions on a return
they have already filed. Taxpayer should file an amended return if they:
• received another Form W-2, a corrected Form W-2, or another income statement that was not reported on the
original return
• received an additional Form 1099 (such as unemployment compensation) or a corrected Form 1099 that was
not reported on the original return
• claimed dependents, deductions or credits they should not have claimed
• did not claim dependents, deductions or credits they could have claimed, or
• should have used a different filing status.
The Protecting Americans from Tax Hikes (PATH) Act of 2015 prevents taxpayers using newly issued tax ID
numbers to retroactively claim refundable tax credits in prior years. For example, someone who filed a tax return
under an ITIN and later got an SSN cannot file amended return(s) to claim EITC.
The option to electronically file an amended return is only available for tax year 2019 and later. Amended returns
for any other tax years or tax types must be filed by paper. A Form 1040-X can be e-filed if the SSN matches a
previously "accepted" e-filed return (even non-TaxSlayer e-files). Taxpayers will be allowed to electronically file
up to three "accepted" amended returns. After the third accepted Amended Return, all subsequent attempts will
reject.
Amended returns must also be filed by paper if:
• the original return was filed by paper.
• the primary Social Security number is different from the one provided on the original return, then the Amended
Return must be filed by paper.
• the spouse’s Social Security number (if applicable) is different from the one provided on the original return.
• the original return was filed as a surviving spouse.
• responding to an IRS notice and including other changes to the return not included in the notice (send to
address on notice)
• your site did not prepare the original e-filed return and you are unable to recreate the original e-filed return with
all documents
Direct deposit/debit is not available for amended returns.

Form 1040-NR, U.S. Nonresident Alien Income Tax Return, Form 1040-SS, U.S. Self-Employment
Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico), and
Form 1040-PR, Self-Employment Tax Return - Puerto Rico can be amended electronically for tax
years 2021 forward.

Taxpayers can also amend their return electronically if there is change to their filing status or to add a dependent
who was previously claimed on another return.

An electronic checkbox has been added for Forms 1040/1040-SR, 1040-NR and 1040-SS/1040-PR
to indicate that a superseding return is being filed electronically. A superseded return is one that is
filed after the originally filed return but submitted before the due date, including extensions.

M-1
 Amended Returns (continued)
If the VITA/TCE site amending the return prepared the original return in TaxSlayer, print a copy of the return. A
copy of the original federal and state returns is available in the Client Status section on the Office Client List page.
Office Client List

To view and print the original filed and accepted return, go to client list>client tools>Client Status.
Clicking on these
links displays the
original accepted
return. Other Icon is
Form 9325.

The guidance for preparing an amended return depends on whether or not the VITA/TCE site prepared the
original return.
When changing the filing or residency status, TaxSlayer warns that all state returns will be deleted.
Regardless of the state, the steps to amend a state return are consistent. TaxSlayer asks for the state
refund amount or the amount paid if there is a state balance due.

Original Return Prepared by the Site and Accepted in TaxSlayer

1. Pull the original tax return amounts to Form 1040-X, Amended Return, column A. Original Amount, by
taking the following steps:

a. Find and open the original return in TaxSlayer.

b. Select 20XX Amended Return. TaxSlayer displays the Amended Tax Returns - Form 1040-X page:

M-2
 Amended Returns (continued)
c. Select Begin on the Original Return Information line.
d. Because the IRS accepted the return through TaxSlayer, the software defaults the original accepted
return information on this page. Compare the carryforward information to the printed original return.
Make changes if necessary. If the IRS issued a notice and made an adjustment to the original return
or if the taxpayer previously filed an amended return, update the information accordingly using these
documents.
e. Show amount paid with original return and any additional tax paid later on designated line.
f. TaxSlayer asks for the state refund amount, or the amount paid if there is a state balance due. If
amending a state return, go to the Payments and Credits line and select Begin or Edit. Enter the
amount paid with the original state return or state refund received.
g. If the taxpayer is changing personal exemptions, has changed their address, or wants to change an
election for the Presidential Election Campaign Fund, select the appropriate check boxes at the bottom
of the page. If the taxpayer is not adding or removing an exemption, uncheck the last box.
h. When finished, select Continue.

2. Go to Make corrections for Amended Return and make all necessary changes based on the new
information from the taxpayer. (For example, if the taxpayer needs to add a Form W-2, add it now as you
would if preparing a return normally.)

3. Amend the State Return (if needed)

a. Select Begin on the Amend State Return(s) line. If there are no state changes, skip to step 4.
b. Select Amend State for the state you need to amend.

c. Select Begin on the Amended Return line.

d. Read the screen and select Yes from the drop-down list.
e. Select Begin on the Review and Complete Amended Return line.
f. Select Begin on each line of the State Return: Review and Complete Amended Return page. Use
the printed original return to ensure all information has been entered correctly based on the original
accepted return.
g. When you finish reviewing all information, select Back.
h. TaxSlayer Pro displays the State Return: Amended Return page. When finished with all the information
for the amended return, select Save, then Exit return to leave the state’s page. Repeat as necessary
for other states.

4. Review amended return and explain changes

a. From the Amended Tax Return – Form 1040X page, select Print Amended Return, select Begin,
then Continue. On the “Print Results” page select Print your 20XX Tax Return.
b. In the PDF file of the return, examine Column A to verify all the information agrees with the original
Form 1040, U.S. Individual Tax Return. Next, verify the amounts in Column C agree with the amended
return figures. Then, confirm Column B is the difference between Columns C and A, which represents
the amounts of what is being added or removed.
c. Verify the correct amount overpaid or owed. On page 2, verify that all information is correct and that
appropriate boxes are checked for qualifying children eligible for Child Tax Credit.

M-3
 Amended Returns (continued)
d. If the state form is amended, scroll down the pdf to the state forms and verify that additions to or
subtractions from the federal AGI that were manually made on the amended state return are correct.
e. Write down which lines have changed on Form 1040-X and state amended return.
f. Select Begin on the Explain Changes line. Enter each line number and an explanation for the change
on that line.
g. Ask a Quality Reviewer to double-check all entries on the amended return.

5. If the amended return will be e-filed:

a. Go to e-file section and select the radio button for amended tax return.

b. At the following screen, set the return type to either E-file: Mail Payment or E-file: Paper Check. Note
that direct deposit and direct debit are not available for federal amended returns. Do not select these
options even if offered by TaxSlayer.
c. Continue through the remainder of the Submission section.
d. Print return copies for taxpayer (including Form 8879) and state as shown below. Form 8879 may show
incorrect amount of balance due (1040-X Line 20) or overpayment (1040-X Line 21) – if so, make pen
and ink change.
E-file Print Chart
Tax Forms Total IRS State Taxpayer
1040-X* 2 1 1
1040 (with “As Amended” written across the top) 1 1
Any federal forms changed or added* 2 1 1
State voucher (if any) 1 1
Any required State forms 2 1 1

e. If amended return results in a balance due, review Form 1040-V. If amount is not correct, make pen and
ink change. If no 1040-V in print package, go to this 1040-V link, choose voucher for year of amended
return and fill in the fillable form. Provide taxpayer with address from current 1040-V since remittance
addresses on prior year 1040-Vs may have changed.
f. Share return with taxpayer and secure signature(s) on Form 8879.
g. In TaxSlayer, mark return Complete. Transmit if authorized to do so, otherwise, save and exit.
h. After return has been transmitted, check status on Client List>Tools>Client Status. There will be a
listing for return type of 1040 (Amended). Ensure return is accepted.
i. E-file or prepare paper return for state amended return filing, as appropriate, after federal e-filed
amended return is accepted.
M-4
 Amended Returns (continued)
6. If amended return will be a paper return:

Print forms as indicated in table below.

Paper Return Chart

Tax Forms Total IRS State Taxpayer
1040-X* 3 1 1 1
1040 (with “As Amended” written across the top) 1 1
Any federal forms changed or added* 3 1 1 1
State voucher (if any) 1 1
Any required State forms 2 1 1

a. Staple to the front of the 1040-X:

i. A copy of any Form W-2 or Form W-2c that supports changes on this return.
ii. A copy of any Form W-2G or 1099-R that support changes on this return, but only if tax was
withheld.
c. If there is a balance due, taxpayer needs to include the payment with the 1040-X. Do not attach the
payment to the 1040-X. No separate payment voucher is needed. Direct debit is not available for
amended returns. Alternatively, the taxpayer can make a payment through direct pay on IRS.gov.
d. Direct deposit is not available for amended return overpayments.
e. Verify the state payment voucher amount (if used for your state) and that the state amended return
requirements are met.
f. Do not attach the original return
g. Have the taxpayer(s) sign the 1040-X and amended state return.
h. If responding to a notice from the IRS to include other changes not included in the notice, send the
federal amended return to the address shown on the notice. If not, use the address in the 1040-X
instructions.

If e-filing, use client status to check on transmission or acceptance

Original Return Not Created by the Site Preparing the Amended Return
The taxpayer must provide a copy of the original return, IRS adjusted amounts after the original
return was processed, or previously filed amended returns.

1. Since the return does not currently exist, create a federal return and state return, if applicable, that
includes the amended information. These return figures comprise Form 1040-X, Column C.

If the amended return is to be e-filed, all documents must be input individually. If preparing a paper
amended return, multiple documents may be combined.

For any return with multiple information-reporting documents, as an alternative to entering every
document, add the documents together. The software requires an EIN and business address to calculate
and place information on the correct line of the tax return. Choose an EIN and business address from the
available information-reporting documents for software input. All information-reporting documents that
support changes must be included with the tax return. If applicable, create state return.

M-5
 Amended Returns (continued)
For returns with adjustments, credits, and additional schedules:

a. Schedule C with no required amendment can be created by using the net profit as total income.
b. Schedule D with no required amendment can be created by using one transaction for long term and/or
one transaction for short term. Enter the net gain as the sales price with no basis.
c. Adjustments and credits information is entered as applicable.

2. Go to the 20xx Amended Return menu > Original Federal Return Information screen to provide the
original return information.

a. This menu populates Form 1040-X, column A. Enter information from original return, or adjusted figures
if a previous amendment was filed or an IRS adjustment was made.
b. Form 1040-X columns C will populate based on the return prepared with the amended information.
Column B will populate based on the differences between Columns C and A.
c. Go to the Amend State Return screen.
d. Select Edit Amended link at Amended State Return screen.
e. Select Amended Return.
f. Select Yes at the Create Amended Return box.
g. Complete entries at Review and Complete Amended Return screen, particularly entries involving dollar
amounts.

3. When you have confirmed or entered all amounts from the original return, continue with steps 3 through 6
on the Amended Returns page.

Taxpayers can use the Where's My Amended Return? online tool to check the status of their
electronically-filed Form 1040-X.

M-6
 Prior Year Returns
Who Can Prepare Prior Year Returns?
Sites are encouraged to prepare prior year returns if they have the required technical resources described
below. Prior year returns may only be prepared and reviewed when the tax topics are within scope for VITA/
TCE and within the volunteers’ current levels of training and certification. They don’t need to be certified in
the actual prior year. Determining the certification level of the return is described below in Getting Started.

Getting Started:
• TaxSlayer only provides software for the 5 years prior to the current tax year.
• A current year Form 13614-C, Intake/Interview and Quality Review Sheet, must be completed for each
prior year and will be used to determine the scope and certification level of each return.
• Taxpayers with Out of Scope returns should be advised to seek assistance from a professional tax
preparer.
• Assign prior year returns to experienced volunteers if at all possible.
• Direct deposit or debit isn’t available for prior year returns. IRS will mail refund checks to the address on
the prior year return. Taxpayers may use Direct Pay on www.irs.gov to make a payment.
• If completing returns for more than one year, complete the earliest tax return year first (e.g. 2020). After
completing the 2020 return, log out and log back in. Then the 2021 return can be started with some
carryforward (even if the 2020 return has not been transmitted). TaxSlayer may start the 2021 return
without the name showing in the client list. Scroll down or search for the SSN.

Taxpayers can’t retroactively claim some tax credits with newly issued tax ID numbers.

As of December 2015 (PATH Act), taxpayers can no longer:

• File a prior year return claiming EITC on the basis of newly issued Social Security numbers (SSNs) for
themselves and/or qualifying dependent(s).
• File a prior year return claiming American Opportunity Tax Credit on the basis of newly issued SSNs,
Individual Taxpayer Identification Numbers (ITINs) or Adoption Taxpayer Identification Numbers (ATINs) for
themselves and/or qualifying student(s).
• File a prior year return claiming Additional Child Tax Credit on the basis of newly issued SSNs, ITINs, or
ATINs for themselves and/or qualifying child.

Technical Resources:
The following tools are useful resources:

• Prior year return tax preparation software.

o TaxSlayer Pro® Online users can access the prior year software from the home page.
o Desktop sites will need to download and install the prior year software from the TaxSlayer website.
Sites will use their current EFIN and setup the software as usual. No registration codes are needed with
TaxSlayer.

• Applicable Publication 17, Your Federal Income Tax for Individuals, Publication 4012, VITA/TCE Volunteer
Resource Guide, and Quality Site Requirement Alerts/Volunteer Tax Alerts (available on the IRS website).
• Forms 13614-C from prior years are helpful. Sites may keep hard copies or rely on electronic copies.
• Taxpayer’s Wage and Income Transcripts from their IRS records are extremely useful.
Taxpayers can access their transcripts online at Get Your Tax Records (www.irs.gov/individuals/
get-transcript) using their existing IRS username. To register for a new account, see Create a New
Account on IRS.gov for instructions. Taxpayers can also request transcripts to be mailed to the
address on file which takes 5 to 10 calendar days for delivery. In addition, taxpayers can request a transcript
via Form 4506-T, Request for Transcript of Tax Return, or by calling 1-800-908-9946.
M-7
 Prior Year Returns (continued)
Transcripts ordered online will be masked (redacted). Without EINs, the return cannot be e-filed.
EXCEPTION: An unmasked wage and income transcript can be provided to the taxpayer when needed for
preparing and filing a return. Only the taxpayer, or the taxpayer’s authorized representative, or the authorized
individual for the decedent can make the request. An unmasked transcript may be provided to a taxpayer (or
representative) by requesting it in person at a Taxpayer Assistance Center (TAC). Appointments are required.
Go to Contact Your Local IRS Office (www.irs.gov/help/contact-your-local-irs-office) to find a TAC office
near you

• Prior year publications and instructions to forms and schedules are available on the IRS website.
• Use the online tool Interactive Tax Assistance (ITA) for answers to many current and prior year tax law
questions. ITA is available on the IRS website.

Whether to E-File or Mail Prior Year Returns:

Only the two most current prior years can be e-filed. Older prior year returns must be mailed to the
appropriate IRS address from the list in Tab P, Partner Resources, “Where to File” page. Also, refer to Tab K,
Finishing the Return, for additional information regarding balance due returns and payment options.

Expired Tax Topics and Other Issues Applicable to Prior Years:

Refer to the Publication 17, Your Federal Income Tax For Individuals, for the applicable tax year and review
the “What’s New” section.

What if a site cannot prepare a requested prior year return?

If possible, refer the taxpayer to other VITA/TCE sites that offer prior year return service. Otherwise, advise
the taxpayer to seek assistance from a paid tax preparer.
Don’t refer taxpayers to their local IRS Taxpayer Assistance Center because they no longer prepare
tax returns for individuals.

Filing an Injured Spouse Allocation in TaxSlayer

Federal Section>Miscellaneous Forms>Form 8379

Form 8379, Injured Spouse Allocation, is filed by one spouse (the injured spouse) on a jointly filed tax return
when the joint overpayment was (or is expected to be) applied (offset) to a past-due obligation of the other
spouse. By filing Form 8379, the injured spouse may be able to get back his or her share of the joint refund.

To properly determine the amount of tax owed and overpayment due to each spouse, an allocation must be
made as if each spouse filed a separate tax return instead of a joint return. So, each spouse must allocate
his or her separate wages, self-employment income and expenses (and self-employment tax), and credits
such as education credits, to the spouse who would have shown the item(s) on his or her separate return.

M-8
 Filing an Injured Spouse Allocation in TaxSlayer (continued)

1 1 If the second box is

checked, the refund will be
generated in both names.

2 If the “Is the injured spouse

legally obligated…” box is
checked, Form 8379 cannot be
filed.

3 3 In TaxSlayer, allocate the

injured spouse’s separate wages,
self-employment income and
expenses (and self-employment
tax), deductions, and credits such
as education credits, as if he or
she were filing a separate return.

For more information regarding allocating income, deductions and credits, see Form 8379 Instructions

Generally, if you file Form 8379 with a joint return on paper, the time needed to process it is about 14
weeks (11 weeks if filed electronically). If you file Form 8379 by itself after a joint return has been
processed, the time needed is about 8 weeks. Processing errors can increase the time needed to process
the form.

Record Keeping
Generally, taxpayers must file a claim for a credit or refund within 3 years after the date the original return
was filed or within 2 years after the date the tax was paid, whichever is later. Returns filed before the
due date (without regard to extensions) are considered filed on the due date (even if the due date was a
Saturday, Sunday, or legal holiday). In some cases of unreported income, the IRS has up to 6 years from
date of filing to assess additional taxes.

Keep records relating to property until the period of limitations expires for the year in which you dispose of
the property in a taxable disposition. See Publication 550, Investment Income and Expenses, for details.
TaxSlayer is available for 5 prior tax years. State rules may differ.
M-9
 Filing an Extension Using TaxSlayer
Federal Section>Miscellaneous Forms>Form 4868; or Keyword “4868” or “EXT”

Form 4868 - Application for Extension

How To File Your Extension
1. Enter your Information: Fill out all of the information in the “Required Extension Information” section below.
Select Continue.

2. E-File Your Extension: Start by selecting e-file from the navigation bar. You will then be given the option to
file your return (Form 1040 and supporting schedules), or to file your extension (Form 4868, Application
for Automatic Extension of Time to File U.S. Individual Income Tax Return). Complete the extension e-file
process. You should get an acknowledgement regarding your extension (whether the IRS accepted or
rejected it) by email within the 24-48 hours of filing.

3. Amount Paid with Extension: You will need to pay the amount due that you enter for “Amount Paid with
Extension.” You can do this in one of 3 ways:

a. Pay by electronic withdrawal from your checking account: You can choose to pay your “payment”
amount as an electronic withdrawal from your checking account. Once you enter the amount you would
like to pay, check the box that appears to select this option. Enter your banking information, the date
you would like the transaction to take place, and re-enter the amount to pay for confirmation. When you
submit your extension, the withdrawal information will be sent.
b. Pay by credit card: You can use your credit card and pay by phone by contacting one of the IRS
approved service providers. For details, visit www.irs.gov and select the Make a Payment button.
c. Mail in your payment with your Form 4868: The form will print with your draft tax return. Mail the form
with your payment by check or money order.

Automatic 60 Day Extension to File

Taxpayers whose main home is located in a disaster area are now automatically provided an
extension of time to file returns, pay taxes, or complete other time-sensitive acts beginning on the
first date specified in a federal disaster declaration and ending 60 days after the last date specified in that
federal disaster declaration. Impacted taxpayers no longer need to wait for the IRS to announce postponed
deadlines. This automatic relief applies to federal disaster declarations issued after December 20, 2019.

M-10
Tab N: Using TaxSlayer® Pro Desktop

N-i
N-ii
 Navigating TaxSlayer® Pro (Desktop)
This tab provides key highlights for using the desktop software TaxSlayer Pro. For specific tax law
content refer to the appropriate tab in the Publication 4012, VITA/TCE Volunteer Resource Guide.
See VITA/TCE: TaxSlayer® Pro Desktop User Guide on the VITA/TCE Springboard for software
details on starting and preparing a return, working with the Premium Tax Credit, entering income, deductions,
etc., completing a state return, and finishing a return.

1
2
7
3 4
5
6

To begin a new return select Start Configuration – to set up the

1 New Return 5 program defaults, preparers, etc.

Access the E-file section to Utilities – this menu allows you to

2 transmit/e-file returns and extensions, 6 backup and recall returns, and
check acknowledgements and print reports. do other administrative tasks.

Client Status - search by SSN and To edit an existing return, select

3 display the taxpayer’s Social Security 7 the return in the Client List.
number, phone numbers, address, Federal
return type, IRS Transaction date, and
Reject information. Select Print to print returns,
8 extensions, and blank forms.

View Returns – allows you to enter a

4 specific SSN or pick from the client list
and choose from View/Print options. You
cannot edit a return from View Returns.

N-1
 Navigating TaxSlayer® Pro (Desktop) (continued)
The toolbar appears at the top of the screen throughout the program, although some icons may not appear
on all screens:

3 6

1 2 5
4

Select KB Search to search the

1 knowledge base.
4 Check the Message Center.

This icon brings up a Client Status Brings up a link to IRS

2 screen. You can search by SSN and 5 publications, forms and
display the taxpayer’s Social Security number, instructions. Requires an internet
phone numbers, address, federal return type, connection.
IRS Transaction date, and Reject information.
Many input screens provide
6 an icon at the top of the
The HELP button takes you to the VITA/ screen that allows you to view the
3 TCE Blog. You can search by category form from the current menu.
or keyword. Requires an internet connection.

View from the exit screen when you mark the return as not complete.

1 2

Brings up the extension View rejected returns.

1 menu, where you can 2 The number here
create or select an reflects the rejected returns
extension. for the whole site.

N-2
 General Input Highlights
• To begin a new return, enter a SSN.
• Existing returns are viewable from the main Desktop page immediately after logging in.
• From the client list, you can start a new return by entering the SSN in the box provided.
• If the return does not exist, the software will ask if you want to create a new return.
• If the prior year exists, the software will ask if you want to carry forward the information from last year.
• If there is no Cancel button, hit the ESC key to get out of a single-entry screen.
• You can go to a return section by selecting the menu on the upper left or use the hot links from the specific
lines of the Form 1040, U.S. Individual Income Tax Return.
• You can select Form Finder on the lower left side to open a new form or open an existing form by selecting
it in the completed forms list.
• View Form Option – many input screens provide an icon at the top of the screen that allows you to view the
form from the current menu. You can also find forms by selecting the magnifying glass icon.
• When entering dependent information pay attention to the drop-down screens to capture unique situations
that may apply.

Personal Information

If the spouse or dependent’s last name is the same as the If you enter the primary SSN again on this screen,
taxpayer’s, TaxSlayer Pro automatically fills that box with the you’ll receive a warning if it doesn’t match the
taxpayer’s last name after you hit the tab key SSN you entered when starting the return

Without an SSN or ITIN, the return cannot be e-filed. You may be able to file a paper return.

Desktop will allow you to leave the phone number and email address blank – but you should get as many
phone numbers for the taxpayer as possible.

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 Premium Tax Credit
When you are finished entering the Personal Info for the taxpayer, spouse and dependents, desktop will ask
about Marketplace coverage.

If you select Yes for Marketplace coverage, you will have to open the Form 8962, Premium Tax Credit later
to add the information from the Form 1095-A, Health Insurance Marketplace Statement. A diagnostic warning
will display to remind you.

The Personal Information summary menu will appear next. If you need to change your answers to the
Marketplace questions, you can select that item.

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 Income – Key Highlights
After entering personal and Premium Tax Credit information, enter all items of income. Refer to Tab D,
Income, for additional information and specific instructions on these topics. The list of income items is found
in the income menu screen. If you exit or are at the Main Menu, you can select the corresponding menu
option to get back to the item that you want.

Select the specific item and follow the software prompts.

MAIN MENU

INCOME MENU

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 Income – Key Highlights (continued)
• To enter Taxable Scholarship, Prisoner Earned Income, or Foreign Compensation, select Other
Compensation on the W-2 Menu.
• Interest/ Dividend Income will be entered from either Income Menu Option 2 or 3 depending on the amount
of the income. If you start with option 3 (less than $1500) and then put any amount using option 2 (Sch B),
any amounts input under option 3 are ignored and lost.
• Private activity bond interest (PAB) is entered in Tax Computation>Alternative Minimum Tax>Interest from
specified private activity bonds exempt from the regular tax.
• The Schedule C can be accessed through Option 6 of the main Income menu. Remember to enter the
Principal Business Activity Code on the Schedule C.
• When entering gross receipts, this would include income reported on Form 1099-K, Payment Card and
Third-Party Network Transactions, as well as all other cash and any other income received related to the
business activity.
• To enter Schedule D, Capital Gains and Losses, select Option 7 from the main Income menu and then
enter the transactions. Select Other in the Edit Capital Gain/Loss Transactions screen to enter capital loss
carryovers and to access the Sale of Home worksheet. See Tab D, Income, for more information on Capital
Gains/ Losses.
• If an adjustment to basis or net capital gain is required, enter the adjustment amount and select the
adjustment code(s) from the list. For most transactions, no adjustment to gain or loss is needed. You may
need to enter an adjustment if the basis provided is incorrect, another situation applies that requires a
change to the basis, or if the taxpayer is able to exclude some or all of the capital gain.
• To use the Simplified Method, check the box labeled “SGR” in Box 2A of Form 1099-R, Distributions from
Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
• To enter other income that is not already listed in the Other Income Menu box, select Option 1 and then
enter the income.

Public Safety Exclusions

To enter the amount of the health insurance exclusion for a Public Safety Officer (PSO), from the Main Menu
of the Tax Return (Form 1040)

1. Select Income Menu

2. Select IRA/Pension Distributions (Form 1099-R/RRB, SSA)

3. Select New and fill out the Payer’s Information

4. Enter the Gross Distribution in Box 1 as it is shown on the 1099-R

5. Subtract the amount of any Qualified Retired Public Safety Officer Distribution from the Gross Distribution
and enter the different Taxable Amount. Exit this menu. The smaller of the amount of the premiums for
health and/or long-term care (LTC) insurance or $3,000 can be excluded (subtracted) from distribution.

6. Next to letter “j” labeled Public Safety Officer, enter the excluded amount.

7. Select the line on Form 1040 where Form 1099-R is reported. When you view Form 1040, the
abbreviation PSO will be displayed in the left margin.

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 Income – Key Highlights (continued)
If you selected Form 1040 wages line, you will be prompted to input the amount of distribution being
excluded. The exclusion and the abbreviation PSO will print on the dotted line next to the wages amount.

This is a guide on entering Public Safety Officer Distributions into TaxSlayer. This is not intended as
tax advice.

Any amount exceeding $3,000 is entered on Schedule A, Itemized Deductions as insurance cost.
The insurance can be for the taxpayer, spouse and family. When Form 1099-R, Box 7 is Code 4
(distribution due to death), the PSO deduction may no longer be used.

Entering Medicaid Waiver Payments

(that may be excluded from income under Notice 2014-7):
• Qualified Medicaid waiver payments that are wages not reported on Form W-2, box 1 – The payments are
already excluded from gross income and earned income. The tax preparer should complete the tax return
as usual if the taxpayer does not choose to include qualified Medicaid waiver payments in earned income.
A taxpayer who chooses to include qualified Medicaid waiver payments in earned income must report the
payments as wages on line 1.
• Qualified Medicaid waiver payments reported on Form W-2, box 1 – In the TaxSlayer software, complete
the Form W-2 as provided. Enter the amount of qualified Medicaid waiver payments received in the
Medicaid Waiver Payment box at the bottom of the screen. Check the box just above the payment box if
the taxpayer chooses to include the amount in the calculation of earned income for the EIC and the CTC.
• Qualified Medicaid waiver payments reported on Form 1099-NEC or Form 1099-MISC and the taxpayer is
in the business of providing home health care services – Complete a Schedule C and enter the Form 1099-
NEC or Form 1099-MISC as provided. Enter the amount of qualified Medicaid waiver payments received in
the Medicaid Waiver Payment box at the bottom of the screen. Check the box just above the payment box
if the taxpayer chooses to include the amount in the calculation of earned income for the EIC and the CTC.
• Qualified Medicaid waiver payments reported on Form 1099-MISC and the taxpayer is not in the business
of providing home health care services – These payments are considered “other income” and are not
reported on a Schedule C. Complete the Form 1099-MISC as provided. Enter the amount of qualified
Medicaid waiver payments received in the Medicaid Waiver Payment box at the bottom of the screen.
These payments are not subject to employment taxes and are not earned income, because they are not
employee compensation or earnings from self-employment.

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 Credits – Key Highlights
• To enter tax credits select the Credits Option to bring up the Credits Menu.
• To enter a specific credit select the appropriate menu option and then follow the software prompts.
• You must answer due diligence questions in order to claim Earned Income Credit (EIC) and Child Tax
Credit (CTC). Certain answers will cause the taxpayer to not receive CTC and EIC. Go to “View Results”
and choose “Why No EIC Calculated” to see why. “If EIC Checklist was Not Answered Correctly” is
checked, you must go back and correct your answers on Form 8867.

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 Printing from Desktop
There are different print settings available:

• Print from TaxSlayer Pro home page menu by selecting 3. Print

• Choose an option from the print sub-menu
• Select client, then select print option

Print from inside the return:

• Select View Results from the Main Menu

• Select Print Return
• Select print option

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Notes:

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Tab O: Using TaxSlayer® Pro Online

O-i
O-ii
 Logging in to TaxSlayer Pro Online
To set up TaxSlayer® Pro Online as a Favorite, use the following steps:

1. Open Microsoft Edge, Chrome, Firefox or Safari.

2. Type https://vita.taxslayerpro.com in the address line. Current and prior year software can be accessed
upon logging in.

3. In Microsoft Edge,

a. Select the 3 horizontal dots at the upper right side of the screen, then the favorites icon appears
b. Select Add
c. In Name, type the name you want the favorites to display
d. Select OK

4. In Chrome,

a. Select the 3 vertical dots at the upper right side of the screen
b. Select to display Bookmarks
c. Select Bookmark this page
If using Chrome set your browser settings to allow popups and redirects from the TaxSlayer site.
Settings>Privacy and Security>Site Settings>Popups and Redirects>Add https://vita.taxslayerpro.
com:443

Note: Screenshot above only references Chrome.

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 Logging in to TaxSlayer Pro Online (continued)

Logging in to Pro Online

The user name isn’t case sensitive. To log in to
TaxSlayer® Pro Online, enter your Username and
Password, then select Login. For added security,
TaxSlayer uses a method called Multifactor
Authentication, where a code is sent to you at a
known point of contact to verify your identity.

You will be prompted to verify your account by having

a code sent either to your email address or a cell
phone capable of receiving text messages. In most
cases, text messages are the fastest method of
verification. Select your preferred option, and select
Send Code.

When you receive your code, enter it and select

Verify.
If your account was set up with only an email
address, the cell phone option will not
appear.

You will need to perform this process periodically

based on systems requirements.
See TaxSlayer User Guide for updated login
procedures

After two unsuccessful login attempts, you

will be required to select I'm not a robot.

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 Pro Online Homepage
The 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 permissions level.

1 Select to start a new return. 5 Reports: Used by site administrators to view pre­
configured reports.

2 Select to open an existing return. Quick method of transmitting returns to the IRS through
6 search based on name or SSN. Returns must be marked
This option displays the Review Returns page, listing all “Complete” to be transmitted. This option will appear for
3 returns that tax preparers have marked for review. The volunteers with the appropriate permissions.
Quality Reviewer can select returns to review, and then mark
the return as Approved or Rejected. This option will appear for Import Desktop returns - Users of Pro Online have global
7 carryforward for prior year client information
volunteers with the appropriate permissions.
carryforward. Returns prepared in Desktop for the prior year
will carryforward to Desktop. If the EFIN is transitioning from
4 Configuration: Used by site administrators to manage
Desktop to Pro Online and wishes for the carryforward to Pro
site options and preparers.
Online, select Import Desktop Return. This just needs to be
done once at the beginning of the season.

After selecting Start New 20XX Tax 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. Recommend using Basic (No Profile), which provides
access to the entire navigation suite.
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 Pro Online Homepage (continued)

The list below has helpful hints on how to

navigate within TaxSlayer software easier.

• Form Finder: Open forms to TaxSlayer entry

screens by entering the form number or keyword in
the form search box.
• Use the navigation menu to jump directly to a
section of the tax return.
• 1040 View: From the Summary/Print page, click on
any blue line item to go to that entry screen.
• Type dates without leading zeros and tab between
fields rather than using the pull down menu.
• 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 in top right corner and select
Notes. Then give the note a 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.
• Viewing individual schedules and forms: If a print
icon appears beside the form name in any menu
click on it to create a PDF of just that form or
schedule. In addition, there is a print icon for the
state return if you want to preview it.

O-4
 Navigating TaxSlayer® Pro Online

Federal Section>Income

Income
This section is used to enter the various
types of income that should be reported
on the tax return. Select Begin to enter
an item of income or select Edit to
update an item of income. See Tab D,
Income, for more directions on entering
specific types of income.

Federal Section>Deductions

Deductions
The deductions entry screen is used to
enter the various types of deductions
(adjustments/credits) that should be
reported on the tax return. Select
Begin to enter a deduction or select
Edit to update a deduction. See Tab
E, Adjustments; Tab F, Deductions;
Tab G, Nonrefundable Credits; Tab H,
Other Taxes, Payments and Refundable
Credits; Tab I, Earned Income Credit; and
Tab J, Education Benefits, for additional
information and specific instructions on
these topics.

Federal Section>Other Taxes

Other Taxes
This section is used to enter any other tax types for which the taxpayer may be liable. Select the Begin
button next to any other tax item to enter in data applicable to the taxpayer. See Tab H, Other Taxes,
Payments and Refundable Credits, for additional information and specific instructions.

Federal Section>Payments and Estimates

Payments & Estimates

This section is used to enter such items as payments, apply overpayments to next year’s return and to print
vouchers for next year’s estimated payments. Select the Begin button next to any payment or estimate item
to enter in data applicable to the taxpayer. See the Tab H, Other Taxes, Payments and Refundable Credits,
for additional information and specific instructions.

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 Navigating TaxSlayer® Pro Online (continued)
Federal Section>Miscellaneous Forms

Miscellaneous Forms
This section of the Federal Section is used to enter the following:

• Injured Spouse Allocation (Form 8379)

• Claim a Refund Due to a Deceased Taxpayer (Form 1310)
• Application for Extension (Form 4868)
• Married Filing Separate Allocation
• IRS Identity Protection PIN (IP PIN)
• Installment Agreement (Form 9465)
• Application for ITIN (Form W-7)
• Power of Attorney (Form 2848)
• Explanations (Preparer Notes)

When preparing or reviewing the return, it is not necessary to navigate back into the Income or Deductions
pages and the underlying forms. Use the navigation column on the left-hand side to go directly to the form
you need.

State Section

State Section
Since the IRS cannot train volunteers to prepare state and local tax returns, partners are responsible for
scheduling appropriate state and local tax training for volunteers wherever this service will be voluntarily
offered.

The State of Residency will auto-fill when the Zip Code is entered in the Basic Information section. The State
of Residency can be changed manually in the Basic Information section after the state has auto-filled. If you
don’t have a state return, you can select Continue or use any of the navigation options on the left side of
your screen.

The following states don’t have a general state income tax return: Alaska, Florida, Nevada, New Hampshire,
South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire levies a tax on interest and
dividend income.

For Military certification, refer to the note in Tab B, Starting a Return, Entering Basic Information regarding
the Military Spouses Residency Relief Act (MSRRA).

Additional states can be added to the return file at the Add Another State Return link in the State Return
home page. Choose a state from the pick list or by selecting the state on the United States map and select
Continue. Select the taxpayer’s state residency type. The residency types for most states are resident, part
year resident and nonresident. Select Continue. You can prepare up to 3 states for a taxpayer.

To delete a state return, select State Section from the left side of your screen. Select the delete icon next to
the state that you would like to delete.

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 Navigating TaxSlayer® Pro Online (continued)
Summary/Print Page
The Calculation Summary screen is an overview of each section of the tax return. Select the show details link
located next to each item to view a breakdown of what items are included in the tax return. You can view and/
or edit each item of income, adjustments, tax, payments, etc., by selecting the link from the expanded list.
You can toggle between the Summary View or the 1040 View, which allows you to link from most of the line
items on the Form 1040. The prior year comparison option will contain return data if a prior year return was
completed through the software.

Select View/Print Return to create a PDF of the return that can be printed or reviewed.

Quality Review
When performing a quality review, you can access the quality review print set by navigating to the Office
Client List, click the arrows next to the printer icon and select QUALITY REVIEW. These are the default print
sets, but your site may have defined custom print sets for your use.

Refer to Publication 5310, VITA/TCE Tax Return Quality Review Job Aid, for complete quality review
instructions.

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 Navigating TaxSlayer
Form or Topic Keyword Navigation to Data Entry Screen Pub
4012
Page
982 Reduction of Tax 98 Income>Less Common Income>Cancellation of Debt 1099-C, Form 982 Ext-4
Attributes…
1040-ES Estimated Tax VOU Payments & Estimates>Vouchers for 20XX Estimated Tax Payments K-22
Payments (Vouchers)
1040-X Amended Return N/A Select Amended Return Section from side menu or create prior year return M-1
1095-A Health Insurance N/A Select Health Insurance Section from side menu>Follow screens to Advanced H-8
Premium Tax Credit
1098 Mortgage Interest 1098 Deductions>Itemized Deductions>Mortgage Interest and Expenses>Mortgage F-10
Statement Interest Reported on Form 1098
1098-E Student Loan Interest STU Deductions>Adjustments>Student Loan Interest Deduction E-11
1098-T Tuition Statement 1098 Deductions>Credits Menu>Education Credits and/or J-9
Income>Less Common Income>Other compensation>Scholarships and Grants
1099-A Acquisition or CAP Income>Capital Gain and Losses>Sale of Main Home Worksheet or use Capital Ext-1
Abandonment Gains and Loss Items
1099-B Proceeds from Broker 1099 Income>Capital Gain and Losses>Capital Gain and Loss Items D-26
and Barter Exchange
1099-C Cancellation of Debt C or CANC Income>Less Common Income>Cancellation of Debt 1099-C, Form 982 D-64
1099-DIV Dividends D Income >1099-DIV, INT, OID>Interest or Dividend Income D-14
1099-G State Tax Refund G Income>Form 1099-G Box 2 D-16
1099-G Unemployment U Income>Form 1099-G Box 1 D-5
Compensation
1099-INT Interest Income INT Income>1099-DIV, INT, OID>Interest or Dividend Income D-10
1099-INT Box 9, Private Activity INT Other Taxes>Alternative Minimum Tax>Interest from specified private activity D-12
Bond Interest (PAB) bonds exempt from the regular tax
1099-K Payment Card and N/A Income>Form 1099-K>Income (include amount in gross receipts or sales) D-20
Third Party…
1099-LTC Long-Term Care and 8853 Deductions>Adjustments>Medical Savings Accounts (8853) and scroll to Long D-57
Accelerated Death Benefits Term Care (LTC) Insurance Contracts
1099-MISC Miscellaneous MIS Income>1099-MISC D-58
Income
1099-NEC Nonemployee NEC Income>1099-NEC D-18
Compensation
1099-OID Original Issue INT Income>1099-DIV, INT, OID>Interest or Dividend Income>Original Issue Discount, D-10
Discount Form 1099-OID
1099-Q Payments from Q If not taxable, do not enter, if taxable, then Out of Scope; also known as Qualified D-56
Education Programs Tuition Program (QTP)
1099-QA Distributions from N/A If not taxable, do not enter, if taxable, then Out of Scope D-56
ABLE Accounts
1099-R IRA Distribution -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099> Add or Edit a 1099-R D-36
1099-R Pension Distributions -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099> Add or Edit a 1099-R D-36
1099-R Retirement -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099> Add or Edit a 1099-R D-36
1099-S Proceeds from Real -S Income>Capital Gain and Losses>Capital Gains and Loss Item D-32
Estate Transaction
1099-SA HSA HSA Deductions>Adjustments>Health Savings Account Form 8889 E-6

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 Navigating TaxSlayer (continued)

Form or Topic Keyword Navigation to Data Entry Screen Pub

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Page
1310 Statement of Person 1310 Miscellaneous Forms>Form 1310 K-13
Claiming Refund Due a
Deceased Taxpayer
2120 Multiple Support N/A On the Dependent Entry Screen, check the box "This dependent qualifies for a C-5
Declaration Multiple Support Declaration" and follow the prompts on the next screen.
4852 Substitute for Form W-2 W Income>W-2>Add a W-2>This is a substitute W-2 D-6
4852 Substitute for Form -R Follow the 1099-R navigation and check the box indicating this is a substitute D-47
1099-R 1099-R
5329 Additional Taxes on 5329 Other Taxes>Tax on Early Distribution H-4
Qualified Plans and Other Tax-
Favored Accounts
5498-SA HSA Deductions>Adjustments>Health Savings Account, Form 8889 E-7
CSA 1099-R Civil Service -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or Edit a 1099-R D-40
Annuity Paid
CSF 1099-R Statement of -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or Edit a 1099-R D-40
Survivor Annuity Paid
K-1 Beneficiary’s (or Partner’s) K Income>Less Common Income>K-1 Earnings D-51
Share of Income
RRB 1099 Railroad Retirement SSA Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Social Security Benefits/ D-48
Benefits (Tier 1 blue form) RRB-1099
RRB 1099-R Railroad RR Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>RRB-1099-R D-48
Retirement Benefits (Tier 2
green form)
SSA-1099 Social Security SSA Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Social Security Benefits/ D-49
Benefits RRB-1099
W-2 Wages & Salaries W Income>W-2 D-6
W-2G Gambling Winnings W2G Income>Less Common Income>Gambling Winnings, W-2G D-56
Alimony Paid ALIM Deductions>Adjustments> Alimony Paid E-9
Alimony Received ALIM Income>Alimony Received E-9
Amended Return N/A Select Amended Return Section from side menu or create prior year return M-1
American Opportunity Credit 1098 Deductions>Credits Menu>Education Credits J-3
Annuity Calculator, Simplified -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or edit a 1099-R>Click D-39
Method or Public Safety Officer here for options
Exclusion
Brokers Statements N/A See appropriate 1099
Business Expenses C Income>Profit or Loss From Business>Add (or edit) a Schedule C Income from D-23
Business>General Expenses, Car And Truck Expenses, or Other Expenses
Cancellation of Debt CANC Income>Less Common Income>Cancellation of Debt 1099-C, Form 982 D-64
Capital Gains CAP Income>Capital Gains and Losses D-26
Capital Gains Distributions INT or D Income>1099-DIV, INT, OID>Interest and Dividend Income>Dividend D-14
Income>Capital Gain to Schedule D
Capital Loss Carryover CAP Income>Capital Gains and Losses>Other Capital Gains Data (including Capital D-26
Loss Carryover)

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 Navigating TaxSlayer (continued)

Form or Topic Keyword Navigation to Data Entry Screen Pub

4012
Page
Charitable Distribution from IRA -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or edit D-36
1099-R>Subtract distribution that was sent directly by trustee to charity from Box 1
and enter the difference in Box 2a
Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Nontaxable Distributions –
To add QCD indicator to return
Child and Dependent Care 2441 Deductions>Credits Menu>Child Care Credit G-10
Expenses
Deactivate Return Client List>Tools>Deactivate
Deceased Taxpayer PER plus Personal Information>Check here if Taxpayer is deceased. PLUS, complete K-13
1310 Form 1310 if person filing the return is other than spouse and getting a refund
(Miscellaneous Forms>Form 1310)
Direct Deposit/Direct Debit N/A E-File Section>Bank Account K-2
Dividend Income D Income >1099-DIV, INT, OID>Interest or Dividend Income D-14
Donations to Charity CHA Deductions>1099-DIV, INT, OID>Gifts to Charity F-4
Early Withdrawal Penalty (not EARL Deductions>Adjustments> Penalty on Early Withdrawal of Savings or CD E-1
on 1099-INT)
Earned Income Credit Basic Information>Personal Information>Filing Married Filing Separately and I-2
meets the requirements to claim the EIC
Education Expenses 8863 Deductions >Credits Menu>Education Credits J-1
Educator Expenses EDUCA Deductions>Adjustments> Educator Expenses E-4
Elderly or Disabled Credit ELD Deductions>Credits Menu >Credit for the Elderly or Disabled Schedule R G-18
Estimated Tax Payments paid FED Payments & Estimates>Federal Estimated Payments H-7
for current tax year
Estimated Payment Vouchers VOU Payments & Estimates>Vouchers for 20XX Estimated Payments K-21
(Federal) for next year
Exempt Interest INT Income>1099-DIV, INT, OID>Interest or Dividend Income>Interest Income, Form D-12
1099-INT
Extension, Filing for EXTE Miscellaneous Forms>Form 4868 M-10
First-Time Homebuyer Credit FIR Other Taxes>Repayment of First-Time Homebuyer Credit H-2
(Repayment)
Foreign Tax Credit 1116 Deductions>Credits Menu>Foreign Tax Credit G-6
Gambling Winnings W2G Income >Less Common Income>Gambling Winnings, W-2G D-56
Gambling Losses 2G or W2G W-2G>Itemized Deductions> Miscellaneous Deductions> Gambling losses to the F-12
extent of gambling winnings
Health Savings Accounts HSA Deductions>Adjustments> Health Savings Account E-6
Household Employee Income OTHER Income>Less Common Income>Other Compensation> Household Employee D-63
(no W-2) Income
Identity Protection PIN PIN Basic Information>IRS Identity Protection PIN P-3
Injured Spouse INJ Miscellaneous Forms>Form 8379 P-7
Interest Income or Interest INT Income>1099-DIV, INT, OID>Interest or Dividend Income>Interest Income, Form D-11
Income not on a Form 1099-INT
IRA Contributions (Traditional IRA Deductions>Adjustments>IRA Deduction E-10
IRA)

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Form or Topic Keyword Navigation to Data Entry Screen Pub

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Page
IRA Contributions (ROTH IRA) RETI Deductions>Credits Menu>Retirement Savings Credit>Enter Any Current Year E-10
Traditional or Roth IRA Contributions (Do not re-enter Traditional IRA contributions
already reported in the IRA Deduction menu)
IRA Distributions -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or Edit a 1099-R D-36
IRA Qualified Charitable -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or edit D-36
Distribution (Not a Charitable 1099-R>Subtract distribution that was sent directly by trustee to charity from
Gift Annuity) Box 1 and enter the difference in Box 2a. Click continue and navigate back
to Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Go to Nontaxable
Distributions> and check the box “Check here to mark this as a Qualified
Charitable Distribution (QCD) on your return.”
IRA Rollover -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099> Add or Edit a D-41
1099-R>check the box “Check here if all/part of the distribution was rolled over
and enter the rollover amount.” Go back and reduce Box 2a by amount of rollover.
ITIN, Application for W7 Miscellaneous Forms>Form W-7 L-4
Jury Duty Pay N/A Income>Less Common Income>Other Income Not Reported Elsewhere D-56
Jury Duty Paid to the Employer N/A Deductions>Adjustments>Other Adjustments>Jury Duty Pay E-1
Lump Sum Social Security SSA Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Social Security Benefits/ D-50
Benefit RRB-1099>Begin Worksheet
Medical and Dental Expenses MED Deductions>Itemized Deductions>Medical and Dental Expenses F-5
Medicaid Waiver Payments on W Income>W-2>enter the amount in the box titled “Medicaid Waiver Payment in Box D-9
W-2 1” below box 13 (this amount will be subtracted on Schedule 1).
(that may be excluded from
income under Notice 2014-7)
Mileage for Charitable Travel CHA Deductions>Itemized Deductions>Gifts to Charity>Noncash Gifts to Charity F-11
Mileage for Medical Travel MED Deductions>Itemized Deductions>Medical and Dental Expenses F-7
Mortgage Interest and Points MORT Deductions>Itemized Deductions>Mortgage Interest and Expenses>Mortgage F-10
Paid Interest Reported on Form 1098
Mortgage Interest Paid—not on MORT Deductions>Itemized Deductions>Mortgage Interest and Expenses>Mortgage F-10
Form 1098 Interest Not Reported on Form 1098
Noncash Donations that total CHA Deductions>Itemized Deductions>Gifts to Charity>Noncash Gifts to Charity F-11
$500 or less
Notary Fees SELF Other Taxes>Self-Employment Tax>Enter Exempt Notary Income (exempt from SE tax D-17
and EIC)
OID Interest INT Income>1099-DIV, INT, OID>Interest or Dividend Income D-10
Other Income (prizes, jury duty, N/A Income>Less Common Income>Other Income Not Reported Elsewhere D-56
etc.)
Pension Distributions -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099> Add or Edit a 1099-R D-36
Personal Property Taxes PROP Deductions>Itemized Deductions> Taxes You Paid F-8
PIN, Identity Protection PIN Basic Information>IRS Identity Protection PIN P-3
Private Activity Bond interest INT Income>1099-DIV, INT, OID>Interest or Dividend Income D-12
Prizes and Awards N/A Income>Less Common Income>Other Income Not Reported Elsewhere D-58
Public Safety Officer Exclusion -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or edit 1099-R>Click D-39
here for options
Real Estate Taxes PROP Deductions>Itemized Deductions>Taxes You Paid F-8

O-11
 Navigating TaxSlayer (continued)

Form or Topic Keyword Navigation to Data Entry Screen Pub

4012
Page
Refunds of State and Local G [box 2] Income>Form 1099-G Box 2 D-16
Income Tax (if reportable)
Retirement Savings Credit RETI Deductions>Credits Menu>Retirement Savings Credit G-14
Roth IRA Contributions IRA Deductions>Credits Menu>Retirement Savings Credit>Any Current Year Roth IRA G-14
Contributions
Royalties (Simple royalties with SCHEDULE Income>Supplemental Income and Loss >Schedule E Rent and Royalty D-54
no associated expenses) E Information
Sale of Main Home CAP Income>Capital Gain and Losses>Sale of Main Home Worksheet or use Capital D-32
Gains and Loss Items
Sale of Stock CAP Income>Capital Gain and Losses D-26
Sales Tax Deduction TAX Deductions>Itemized Deductions>Taxes You Paid F-9
Schedule C C Income>Profit or Loss from Business D-17
Scholarships and Grants OTHER Income>Less Common Income>Other compensation>Scholarships and Grants D-63
J-1
Self-employed Health Self Federal Section>Deductions>Adjustments>Self-Employment Health Insurance D-23
Insurance Deduction E-5
Self-employment Income C Income>Profit or Loss from Business D-17
Seller-financed Mortgage MORT Deductions>Itemized Deductions>Mortgage Interest and Expenses>Mortgage
Interest Paid Interest Not Reported on Form 1098
Seller-financed Mortgage INT Income>1099-DIV, INT, OID>Interest or Dividend Income>Seller Financed Interest D-13
Interest Received Income
Simplified Method -R Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099>Add or edit a 1099-R>Click D-39
here for options (under box 2a Taxable Amount)
Social Security Benefits SSA Income>1099-R, RRB-1099, RRB-1099-R, SSA-1099> Social Security Benefits/ D-49
RRB-1099
State and Local Taxes Paid STAT Deductions>Itemized Deductions>Taxes You Paid> Additional State and Local F-8
Income Tax
Student Loan Interest STU Deductions>Adjustments> Student Loan Interest Deduction E-11
Substitute W-2 W Income>W-2>Add or edit a W-2 Wage Statement>Check the box “This is a D-6
substitute W-2”
Tax Exempt Interest INT Income>1099-DIV, INT, OID>Interest or Dividend Income>Interest Income, Form D-12
1099-INT
Taxable Refund Worksheet or G [box 2] Income>Form 1099-G Box 2 D-16
State and Local Tax Refund
Worksheet
Taxes Paid, Federal or State FED Payments & Estimates>Federal Estimated Tax Payments or State Estimated H-7
Estimated Payments
Taxes Paid, State and Local FED or Payments & Estimates>State Estimated Payments or Federal Estimated Tax H-7
Estimated STATE Payments
Tip Income (not reported to W Income>W-2>Unreported Tips (on W2 below line 10) D-7
employer)
Tip Income (not reported to 4137 Other Taxes>Tax on Unreported Tip Income D-7
employer because tips were
less than $20 per month)

O-12
 Navigating TaxSlayer (continued)

Form or Topic Keyword Navigation to Data Entry Screen Pub

4012
Page
Traditional IRA Contributions IRA Deductions>Adjustments>IRA Deduction E-10
G-15
Tribal Per Capita Payments not N/A Income>Less Common Income>Other Income Not Reported Elsewhere
on 1099
Unemployment Compensation G Income>Form 1099-G Box 1 D-5
Unemployment Compensation G Income>Form 1099-G Box 1 D-5
Repayment—Same Year as
Benefit Received
Volunteer Expenses CHA Deductions>Itemized Deductions>Gifts to Charity F-11
Vouchers for Estimated VOU Payments & Estimates>Vouchers for 20XX Estimated Tax Payments> Estimated K-18
Payments Federal State Payments for Next Year
Wages & Salaries W Income>W-2 D-6
W-7 Application for ITIN W7 Miscellaneous Forms>W-7 L-4

O-13
Notes

O-14
Tab P: Partner Resources

P-i
P-ii
 Resources for Assisting Taxpayers

Information for Assisting People with Disabilities

There are many misconceptions about interacting with people with disabilities. Publication 5192, Ten Key
Points of Communicating with People with Disabilities, covers the 10 core disability etiquette points that
volunteers should be aware of when working with this group.

Serving Taxpayers Who Are Deaf or Hard of Hearing

Taxpayers who are deaf or hard of hearing have varying ranges of language skills and abilities. Some can
communicate verbally with you, while others cannot. Some can read lips, and some communicate with
English Exact Sign which is a method of sign language that mimics the English language precisely as it
is spoken. However, most taxpayers who are deaf or hard of hearing communicate with American Sign
Language (ASL). Publication 5231, Key Points for Communicating with People who are Deaf or Hard of
Hearing, provides helpful points of etiquette for volunteers serving this group at the VITA/TCE sites.

Veterans Crisis Line

The Veterans Crisis Line connects Veterans in crisis and their families and friends with qualified, caring
Department of Veterans Affairs responders through a confidential toll-free hotline, online chat, or text.
Veterans and their loved ones can call 1-800-273-8255 and Press 1, chat online, or send a text message
to 838255 to receive confidential support 24 hours a day, 7 days a week, 365 days a year. Support for
individuals who are deaf and hard of hearing is available TTY 1-800-799-4889.

IRS Taxpayer Assistance Center - Appointment Service

The IRS requires appointments at Taxpayer Assistance Center (TAC) locations throughout the United States.
Taxpayers will call a new toll-free number to make an appointment for face-to-face service. Taxpayers
requiring an appointment at a TAC location should call 1-844-545-5640.

The IRS also provides Virtual Tax Services at various locations that do not have a TAC. With this model,
taxpayers sit at a designated workstation and are assisted by an IRS employee who appears on screen and
is located in a remote office.

IRS Voice and Chat Bots

Voice bots are software powered by artificial intelligence (AI) that allow a caller to navigate an interactive
voice response (IVR) system with their voice, generally using natural language. Chat bots simulate human
conversation through web-based text interaction, also using AI-powered software to respond to natural
language prompts.

The IRS has deployed voice and chat bots in English and Spanish for phone lines that assist taxpayers with
tax payments issues or understanding an IRS notice they may have received. The bots are now available to
help taxpayers with:

• How to make one-time payments

• Answers to frequently asked questions
• Collection notice clarification

IRS voice bots will also enable taxpayers to authenticate their identity to establish payment plans, request a
transcript and obtain information about their accounts, such as payoff details.

P-1
 Resources for Assisting Taxpayers (continued)
Other Languages
IRS is translating tax resources into more languages. Currently, basic tax information is available in twenty
languages. Refer to www.irs.gov/help/languages.

Form 13614-C, Intake/Interview & Quality Review Sheet, is available in multiple languages. These can be
downloaded at www.irs.gov/forms-instructions.

Taxpayers may choose to receive written communication from the IRS in a language other than
English. Mark the appropriate box in the Basic Information section in TaxSlayer and select the
language from the drop-down list.

P-2
 IP PIN Guidance for Identity Theft Victims
Being sensitive towards victims of identity theft is critical to assisting taxpayers through a confusing and
frustrating situation. Remember victims of identity theft are:

• Victimized by identity thieves, mostly through no fault of their own, and

• Trying to comply with tax laws, file a tax return and pay their fair share of taxes

From mid December through early January, the IRS mails Notice CP01A to taxpayers previously identified as
identity theft victims. The notice includes a 6-digit Identity Protection Personal Identification Number (IP PIN)
to be entered on the tax return. Taxpayers are mailed Notice CP01A every year as long as the identity theft
indicator remains on their account (usually 3 years).
Use the most recent IP PIN regardless of the tax year.

Use the chart below when assisting taxpayers who are victims or may be victims of identity theft at VITA/TCE site.

If... Then...
Identity Protection PIN (IP) Ensure the IP PIN is input correctly on the tax return.
PIN was issued to primary
and/or, secondary and/or
dependent taxpayer(s)
Taxpayer received an IP 1. Complete a tax return for the taxpayer.
PIN but didn’t bring it with 2. Provide the taxpayer with a complete copy of the tax return. (Provide two copies - one copy to keep for their
them records and the other copy if the taxpayer will mail the tax return.)
3. Refer to Lost, Misplaced or Non-Receipt of IP PIN on the following page.
4. If the taxpayer wants to e-file, arrange for the taxpayer to provide the IP PIN by returning to the site or via
telephone.
Taxpayer received an IP 1. Complete a tax return for the taxpayer.
PIN but misplaced or lost it 2. Provide the taxpayer with a complete copy of the tax return. (Provide two copies - one copy to keep for their
records and the other copy if the taxpayer will mail the tax return.)
3. Refer to Lost, Misplaced or Non-Receipt of IP PIN on the following page.
4. If the taxpayer receives original or a reissued IP PIN and wants to e-file, arrange for the taxpayer to provide the
IP PIN by returning to the site or via telephone.
Taxpayer didn’t receive IP 1. Refer to Lost, Misplaced or Non-Receipt of IP PIN on the following page.
PIN but IRS rejected the 2. Provide the taxpayer with two complete copies of the tax return.
e-filed tax return because
the IP PIN wasn’t entered. 3. If the taxpayer receives the original or a reissued IP PIN and the taxpayer wants to e-file, advise the taxpayer
to provide the IP PIN by returning to the site or via telephone.
4. If IRS doesn’t provide the IP PIN, advise the taxpayer to follow IRS instructions in mailing the tax return. There
may be processing delays as IRS verifies the taxpayer’s identity.
IRS rejected the taxpayer’s 1. Advise the taxpayer to contact the IRS for assistance. If required, they will advise the taxpayer to complete
tax return because the Form 14039, Identity Theft Affidavit, and to mail it with their tax return to the IRS. Taxpayers can electronically
taxpayer’s primary/ complete and submit Form 14039, Identity Theft Affidavit. Use a fillable form at IRS.gov, print, then attach the
secondary/dependent SSN form to your return and mail your return according to instructions. The IRS will respond in approximately 30
was previously used. days after all the necessary information is received.
2. Provide the taxpayers two copies of their tax return. One copy for the taxpayer to keep for their records and the
other copy to mail.

P-3
 IP PIN Guidance for Identity Theft Victims (continued)

Lost, Misplaced or Non-Receipt of IP PIN

If a taxpayer didn’t receive his/her new IP PIN or the taxpayer misplaced it, the taxpayer has two options:

1. Register and create a user profile to get his/her current IP PIN. The registration process will require the
taxpayer to provide specific personal information and answer a series of questions to validate his/her
identity. Go to Retrieve Your Identity Protection PIN (IP PIN) at www.irs.gov/identity-theft-fraud-
scams/retrieve-your-ip-pin.

2. Contact IRS at 1-800-908-4490 to request his/her IP PIN to be reissued by mail if the taxpayer is unable
or unwilling to create an account on the IRS website.

The taxpayer will need to mail a paper tax return without the IP PIN if either of the following situations apply:

1. The taxpayer has moved since January 1 of this year, or

2. It’s after October 14 and the taxpayer hasn’t filed his/her current or prior year tax return.

Existing IP PIN users seeking to retrieve their numbers should not apply for a new IP PIN with Form 15227.
The Form 15227 application process is only for taxpayers who are newly opting into the program and do not
already have an IP PIN requirement.

IRS will review the return to confirm the taxpayer’s identity which may delay a refund.

Basic Information>IRS Identity Protection PIN or Federal Section>Miscellaneous Forms>IRS

Identification PIN

To enter a taxpayer’s IP PIN in the tax software, select Miscellaneous Forms under the Federal Section on
the left navigation bar and then select IRS Identification PIN and complete the screen as shown.

P-4
 Voluntary Opt-In IP PIN

Identity Protection PIN Opt-In Program Expanded for all Taxpayers

Taxpayers may voluntarily opt-in to receive an Identity Protection PIN (IP PIN). The six-digit IP PIN prevents
the misuse of their Social Security number on fraudulent federal income tax returns. An IP PIN helps the IRS
verify a taxpayer’s identity and accept their electronic or paper tax return. If taxpayers want to opt in, please
note:

• They must pass a rigorous identity verification process.

• Spouses and dependents are eligible for an IP PIN if they can pass the identity proofing process.

Here’s how it works:

• Taxpayers may go to the Get an IP PIN (www.irs.gov/ippin) tool on IRS.gov, pass Secure Access
authentication and immediately access a six-digit IP PIN. Before using the Get an IP PIN tool the
taxpayers should review the requirements at www.IRS.gov/secureaccess.
• Do not file a Form 14039, Identity Theft Affidavit, for clients who are not tax-related identity theft victims and
who are voluntarily opting into the program.
• When prompted by tax preparation products, clients or their tax preparers must enter the IP PIN issued to
the primary and/or secondary taxpayers or their dependents.
• An electronic tax return rejects if an incorrect IP PIN is used.
• Taxpayers with either a Social Security number (SSN) or Individual Tax Identification Number (ITIN) who
can verify their identities are eligible.
• An IP PIN is valid for one calendar year. Clients must obtain a new IP PIN each year at the start of the filing
season by accessing the account they created at www.irs.gov/ippin.
• While currently there is no opt-out feature, the IRS may add this feature later for taxpayers with online
access.

Alternatives to online Get an IP PIN tool:

Taxpayers who cannot authenticate their identities online and may file Form 15227, Application for an Identity
Protection Personal Identification Number. The taxpayers adjusted gross income on the last filed return must
be below $73,000 for Individuals or $146,000 for Married Filing Joint. An IRS assistor will call taxpayers to
ask a series of questions to verify their identities. Once the taxpayer's identity is verified, they will receive
their IP PIN via the U.S. Postal Service usually within four to six weeks.

Taxpayers who cannot authenticate online or with the Form 15227 process, have the option to verify
their identities in person by making an appointment at an IRS office. Taxpayers must bring one current
government-issued picture identification document and another identification document to prove their identity.
An IP PIN will be issued within 3 weeks if their identity is authenticated at a local office.

P-5
 Frequent Taxpayer Inquiries
Taxpayers normally ask questions during the interview process about the topics covered in this section. Visit
the IRS.gov website, or see Publication 17 for additional topics and information.

Installment Payment
Publication 594, The IRS Collection Process, explains taxpayers’ rights and responsibilities regarding
payment of federal taxes.

Copies of Prior-Year Returns

For information purposes: Taxpayers can go to Get Your Tax Record at www.irs.gov/individuals/get-
transcript to register and secure a transcript which partially masks the personally identifiable information of
everyone listed on the tax return. To access this transcript online they must have email and be able to prove
their identities with enhanced verification. Taxpayers can also request masked transcripts to be mailed to the
address on file which takes 5 to 10 calendar days for delivery. In addition, taxpayers can request a transcript
via Form 4506-T, Request for Transcript of Tax Return, or by calling 1-800-908-9946.

For tax preparation purposes: Taxpayers or other third parties who require an unmasked transcript for tax
return preparation or filing may contact the IRS, present proper authentication to prove their identities and an
unmasked transcript will be mailed to the taxpayer’s address of record.

If a photocopy of a return is needed, taxpayers should complete Form 4506, Request for Copy of Tax Return,
and mail it with the required fee to the IRS campus where the return was filed.

Amended Returns (See Tab M, Other Returns)

Form 1040-X, Amended U.S. Individual Income Tax Return, should be used by taxpayers to amend their
return. Many mistakes are corrected in processing by the IRS, and a letter of explanation is mailed at the
time an error is identified or when a refund is issued. In these cases, taxpayers aren’t required to file an
amended return as the corrections have already been made.

Preparation of amended returns has expanded in the VITA/TCE programs. Sites can choose to file amended
returns even if they didn’t prepare the original return. See Tab M, Other Returns, for additional information on
preparing amended returns. Taxpayers can check the status of their Form 1040-X, Amended U.S. Individual
Income Tax Return, for the current year and up to three prior years at Where's My Amended Return.

Taxpayer Address Changes

Taxpayers should use Form 8822, Change of Address, to notify the IRS of any change of address. If
taxpayers move after filing the return and before a refund is received, they should notify their old post office
and the IRS of their new address.

Recordkeeping
Taxpayers should keep their tax documents until the statute of limitations runs out for the return. Usually,
this is three years from the date the return was due or filed, or two years from the date the tax was paid,
whichever is later. Refer taxpayers to Publication 17, Filing Information section, or Recordkeeping at www.
irs.gov/businesses/small-businesses-self-employed/recordkeeping.

P-6
 Frequent Taxpayer Inquiries (continued)
FREE Tax Preparation Locations
Consult your Site Coordinator for information about the location of other VITA/TCE sites in your area.
Taxpayers may go to Get Free Tax Prep Help at irs.treasury.gov/freetaxprep/, download the IRS mobile
app IRS2Go, or call 1-800-906-9887 for more information. For AARP Tax Aide sites, go to
AARP Foundation Tax-Aide Locator at www.aarp.org/money/taxes/aarp_taxaide/locations.html or call
1-888-227-7669 for this information.

Problems Navigating the IRS

Taxpayer Advocate Service (TAS) has offices in every state, the District of Columbia, and Puerto Rico. Your
local advocate’s number is at www.taxpayeradvocate.irs.gov, and in your local directory. You can also call
1-877-777-4778.

See Publication 1546, Taxpayer Advocate Service - We Are Here to Help You, for details on what TAS
provides.

Refund Information
Taxpayers should be directed to Where's My Refund? at www.irs.gov/refunds for specific information
about their refund. Taxpayers can view refund information for the current 2 prior years.

Innocent Spouse Relief

Taxpayers who file a joint tax return are jointly and individually responsible for the tax and any interest or
penalty due on the joint return even if they later divorce. In some cases, a spouse
(or former spouse) will be relieved of the tax, interest, and penalties on a joint tax return. Spousal relief is
granted in certain situations when a taxpayer can prove he/she isn’t liable for amounts due in joint filing
situations.

Taxpayers should see Publication 971, Innocent Spouse Relief, which explains the types of relief, who may
qualify for them, and how to get them. Married persons who didn’t file joint returns, but who live in community
property states, may also qualify for relief. (Out of Scope)

Injured Spouse Relief

An injured spouse claim is different from an innocent spouse relief request. An injured spouse can request
the division of tax overpayment attributed to each spouse. The injured spouse must file Form 8379, Injured
Spouse Allocation, to request his or her portion of a joint refund. See Publication 4491 and Form 8379
Instructions for additional details.

Married Filing Separately

Unless required to file separately, married taxpayers may want their tax figured on a joint return and on
separate returns, to make sure they are receiving the most advantageous filing status. Filing separately may
be advantageous for some taxpayers in certain situations, however, most married taxpayers would pay more
combined tax on separate returns than they would on a joint return. See Publication 17, Your Federal Income
Tax for Individuals, Filing Status section, for Special Rules (which outlines the disadvantages). Taxpayers
who filed a Married Filing Jointly return cannot amend their return to change to Married Filing Separately
after the due date of the return. There is an exception for deceased taxpayers.

P-7
 Frequent Taxpayer Inquiries (continued)
Social Security Numbers and Account Information
Social Security Administration no longer issues Social Security Number verification printouts in their field
offices. Taxpayers may get this information using the my Social Security Account feature on the Social
Security Administration website. Local Social Security offices will continue to provide benefit verification
letters.

Volunteers should enter names into the tax software as they appear in SSA records in order to minimize
rejected returns.

Hardship Refund Request

A taxpayer’s tax refund will be offset (intercepted) to pay outstanding federal tax debts, child support, federal
nontax debts, state income tax debts, and unemployment compensation debts. When a tax refund is offset,
the taxpayer will receive a letter explaining how the refund was applied to his or her outstanding debt.

If a taxpayer would face a hardship from a tax refund offset and has only outstanding federal tax debts, he or
she can request an Offset Bypass Refund (OBR) from the IRS. Refer the taxpayer to the Taxpayer Advocate
Service (TAS) to see if they meet TAS case acceptance criteria. The OBR typically should be requested
before the return is filed because the OBR must be approved before the refund is offset.

Requests for hardship relief from other debts must be made to the agency to which the debt is owed. The
Treasury Offset Program (TOP) can confirm whether a tax refund will offset for these other debts and provide
details about the debt and a contact phone number for the agency to which the debt is owed. The TOP Call
Center can be reached weekdays at 1-800-304-3107, TTD 800-877-8339, between 8:30 a.m. and 6 p.m.
Eastern Time.

Missing Refund
When a taxpayer has verified that they did not receive a refund, even though IRS records or a letter specifies
otherwise, they can initiate a trace by calling 800-919-9835 or filing Form 3911, Taxpayer Statement
Regarding Refund. Form 3911 should be mailed to their usual IRS Service Center or sent there via FAX. See
list of FAX numbers at www.taxpayeradvocate.irs.gov.

P-8
 Where to File
Where Do You File?
Mail your return to the address shown below that applies to you.

Envelopes without enough postage will be returned to you by the post office. Your envelope may
need additional postage if it contains more than five pages or is oversized (for example, it is over 1/4”
thick). Also, include your complete return address.
Make the check or money order payable to “United States Treasury.” Taxpayers should write “2022
Form 1040” and the first name listed on the tax return (primary taxpayer), address, daytime phone
number, and primary taxpayer’s Social Security number (SSN) on their payment and enclose it with
Form 1040-V. Do not staple or attach to Form 1040-V.

IF you live in... And you ARE NOT enclosing a and you ARE enclosing a
payment use this address … payment use this address...
Arkansas, Connecticut, Delaware, District of Department of the Treasury Internal Revenue Service
Columbia, Illinois, Indiana, Iowa, Kentucky, Maine, Internal Revenue Service P.O. Box 931000
Maryland, Massachusetts, Minnesota, Missouri, Kansas City, MO 64999-0002 Louisville, KY 40293-1000
New Hampshire, New Jersey, New York, Oklahoma,
Rhode Island, Vermont, Virginia, West Virginia,
Wisconsin
Pennsylvania Department of the Treasury Internal Revenue Service
Internal Revenue Service P. O. Box 802501
Kansas City, MO 64999-0002 Cincinnati, OH 45280-2501
Florida, Louisiana, Mississippi, Texas Department of the Treasury Internal Revenue Service
Internal Revenue Service P.O. Box 1214
Austin, TX 73301-0002 Charlotte, NC 28201-1214
Alabama, Georgia, North Carolina, South Carolina, Department of the Treasury Internal Revenue Service
Tennessee Internal Revenue Service P.O. Box 1214
Kansas City, MO 64999-0002 Charlotte, NC 28201-1214
Arizona, New Mexico Department of Treasury Internal Revenue Service
Internal Revenue Service P. O. Box 802501
Austin, TX 73301-0002 Cincinnati, OH 45280-2501
Alaska, California, Colorado, Hawaii, Idaho, Department of the Treasury Internal Revenue Service
Kansas, Michigan, Montana, Nebraska, Nevada, Internal Revenue Service P.O. Box 802501
Ohio, Oregon, North Dakota, South Dakota, Utah, Ogden, UT 84201-0002 Cincinnati, OH 45280-2501
Washington, Wyoming
A foreign country, U.S. possession or territory*, Department of the Treasury Internal Revenue Service
or use an APO or FPO address, or file Form 2555 or Internal Revenue Service P.O. Box 1303
4563, or are a dual-status alien Austin, TX 73301-0215 USA Charlotte, NC 28201-1303 USA
*If you live in American Samoa, Puerto Rico, Guam, the U.S. Virgin Islands, or the Northern Mariana Islands, see Pub. 570, Tax Guide for
Individuals With Income From U.S. Possessions.

Mailing addresses for amended returns can be found in the instructions for Form 1040-X.

P-9
 Where’s My Refund
Taxpayers can access information about their refunds for the current and two prior tax years at
Where's My Refund, www.irs.gov/refunds.

Taxpayers should view their Online Account to see payment history, prior year adjusted gross income (AGI),
or other tax records.

Interactive Tax Assistant (ITA)

The ITA tool (www.irs.gov/help/ita) is a tax law resource that takes you through a series of questions and
provides you with responses to tax law questions on a limited number of topics.

• Simply answer the questions and select Continue to progress to the next question screen.
• You may need to collect information before the interview such as income amounts, taxes owed and credits
you are claiming.
• The tool includes a crossover feature that allows you to move from certain tax topics to another without
needing to enter the same answers multiple times. The Review/Start Over buttons allows you to adjust
responses to previously asked questions.
• When you reach the response screen, you have the option to print the entire interview and the final
response.

For additional information on tax law resource tools, go to Tax Topics at www.irs.gov/taxtopics.

P-10
Tab Q: TaxSlayer® Admin

Q-i
Q-ii
 Contingency Plans for Continuing VITA/TCE
Return Preparation Operations
(During Unexpected Circumstances)

In the event that the following situations occur:

• Software system outages

• The Site’s internet or equipment isn’t operating
• A Quality Reviewer isn’t available (see Quality Review Only Using the Virtual Model, below)

Partners may, at their discretion, choose among the following pre-approved options to continue preparing tax
returns in lieu of closing the site for the day:

• Temporary Virtual VITA/TCE Process (explained below).

• TaxSlayer® ProWeb Alternative Preparation Solution1 using TaxSlayer® Pro Desktop.
• Offer Facilitated Self Assisted2 (FSA) services, if available. Options include TaxSlayer FSA and VITA Free
File.

Temporary Virtual VITA/TCE Process

Secure Taxpayer Consent:

• The taxpayer must present proof of identity, which includes a photo identification for him/her and if
applicable, their spouse.
• The taxpayer agrees to use the virtual process by signing completed Form 14446, Virtual VITA/TCE
Taxpayer Consent. Taxpayer must answer “Yes” or “No” to the question regarding Request to Review your
Tax Return for Accuracy.
• The appropriate virtual method(s) and step-by-step procedures will be explained to the taxpayer and
timeframes will be established for the taxpayer to return to the site and complete the process.

A secure process for authenticating both the taxpayer and the volunteer must be provided to the taxpayer in
the event that additional information is required to complete the tax return. Please refer to Publication 4299,
Privacy and Confidentiality-A Public Trust, for more information.

Intake/Interview:
• The intake and interview process must be performed before the taxpayer leaves the site.
• IRS tax law certified volunteers must conduct the initial interview following all the steps outlined in Pub
5101, Intake/Interview & Quality Review Training.
• The volunteer will need to make notes on the Form 13614-C, Intake/Interview & Quality Review Sheet,
indicating the appropriate filing status and qualified dependents.
o Eligibility determinations for deductions and credits will be made and documented on the Form 13614-C.
o All oral testimony must be thoroughly documented on the Form 13614-C for use during the return
preparation at a later time.

• The verified SSNs and/or ITINs will need to be written on the Form 13614-C for all persons that will be
included on the tax return.
1 This option should be established during the Pre-Planning Phase of site operations. Refer to Contingency Plan Option, later in this tab.
2 This option should be established during the Pre-Planning Phase of site operations. Refer to Publication 5683, VITA/TCE Handbook for Partners
and Site Coordinators, for more detailed information.

Q-1
 Contingency Plans for Continuing Site
Operations (continued)
• A telephone number where the taxpayer can be reached will be secured for use by the IRS tax law-certified
volunteers. Refer to Publication 4299 for more information on establishing protocols to authenticate the
identity of both the volunteer and the taxpayer.
• The taxpayer will leave their tax documents and the completed Form 13614-C for their tax return to
be prepared once the software can be accessed and/or when a non-face-to-face quality review will be
conducted.
• The taxpayer will be given a date/time to return to the site to participate in the quality review and/or sign
the Form 8879, IRS e-file Signature Authorization, and secure a copy of their return. If a timeframe can’t be
provided while the taxpayer is still onsite, the Site Coordinator will provide this information to the taxpayer
as soon as a timeframe is available.

Quality Review Only Using the Virtual Model:

If the site is able to prepare the return using normal face-to-face procedures but the return isn’t able to be
Quality Reviewed during the taxpayer’s visit:

• Follow all of the procedures in the Form 14446

• Complete the tax return as normal
• Explain that the taxpayer will be contacted by the Quality Reviewer

Refer to Publication 4299 for more information.

Do not rely on this section alone. For more detailed information on how to use the virtual VITA/TCE
process throughout the filing season refer to virtual VITA/TCE process located in Publication 5450,
VITA/TCE Site Operations.

100% Virtual Process

See Publication 5450, VITA/TCE Site Operations, for updates to the 100% Virtual Process.

Q-2
 TaxSlayer Pro Alternative Solution Contingency Plan
TaxSlayer offers the TaxSlayer® Pro Desktop application to prepare and e-file returns in the event that the
TaxSlayer® Pro Online is unavailable. If that happens, you can use TaxSlayer Pro’s desktop application to
prepare and e-file returns.

Download the TaxSlayer® Pro Desktop application in advance so that your site does not have any downtime.
Do not install it on a network as a contingency plan. Instead, install on a stand-alone computer with an
internet connection.

To download the desktop application, see Contingency Plan Option on the next page.
For a complete listing of contingency options, refer to IRS Publication 5683, VITA/TCE Handbook for
Partners and Site Coordinators.

In order for the TaxSlayer® Pro Desktop contingency plan to work successfully, it is important to keep
the designated computers updated with the latest desktop software versions. TaxSlayer® Pro Desktop
automatically updates the first time you open it each day if the computer is connected to the internet. It is
recommended that you do this daily or weekly.

If a software system outage necessitates the use of a temporary contingency plan, you can use the installed
and updated version of TaxSlayer® Pro Desktop to complete any returns you need to prepare during the
outage. Sites will be able to work the return completely from the desktop application, including e-filing and
getting acknowledgments. The return will remain in the desktop application for the duration of the filing
season.
Returns prepared using the desktop software during a contingency plan will be transmitted from the
desktop software. Use the desktop software to retrieve any acknowledgement associated with the
returns transmitted from the desktop software.

When TaxSlayer® Pro Online is available again, use it to prepare new returns and complete any returns you
started previously in TaxSlayer® Pro Online.
You will have to run separate reports for these returns and manually add them to your online return
count.

Q-3
 Contingency Plan Option
Contingency Plan – TaxSlayer Pro, also referred to as Desktop, should be utilized in the rare occasions
where TaxSlayer® Pro Online is unavailable or the site loses internet for an extended period of time.
The Desktop software should be downloaded and installed as part of pre-season preparation. Follow the
instructions below to download the desktop software:

Access Springboard

The URL is https://vita.taxslayerpro.com/

Click My Account Login in the top right
corner to login with username and password
created from the link provided by TaxSlayer
when your order was originally placed.

From the Springboard, download

the ProOnline User Guide for
detailed contingency procedures.

Q-4
 Contingency Plan Option (continued)

To download the TaxSlayer Pro program

1 from the internet, complete the following
steps:

• Look for Other Options to the right of the

screen
• Select Install 20XX TaxSlayer Pro Software
• Select Run
• Follow the on screen prompts to download and
install the TaxSlayer Pro software

Select Account History to access your EFIN/Office validation code that is required to be entered
into the software during setup.

If you are running anti-virus software or a firewall in the background, be sure that you select Allow,
Permit, or Unblock if prompted to do so to allow the TaxSlayer Pro program files to download and
install.
Install the software on a standalone computer with internet connection to be used in the event TaxSlayer®
Pro Online is unavailable for an extended period of time.

Q-5
 Rejected Returns
The most common rejects involve errors in the taxpayer’s or dependent’s Social Security numbers (SSNs)
and the Employer Identification Numbers (EINs) that appear on the Form W-2, Wage and Tax Statement,
and Forms 1099. The IRS performs a name match on these numbers that can cause a return to be rejected.
Typographical and other errors can often be easily resolved. The taxpayer may need to be contacted to
determine the correct EIN or SSN and to verify the taxpayer’s last name. Neither the IRS nor TaxSlayer Pro
can resolve these rejects.
Each individual transmission of a tax return resulting in a reject is added to the total number of rejects
for the site. Each individual rejection increases the overall rejection rate for the site.

Refer to the TaxSlayer Validation Errors report to identify federal or state returns not accepted.

Top Reject Codes

Top Reject Codes Suggested Solutions
500 Primary SSN and Primary Name Control Verify name and SSN or ITIN. Double check source document. Review name and SSN
of the Tax Form must match data from the IRS control.
Master File.
501 Qualifying SSN on Schedule EIC and the Can be a companion to Reject Code 504. However, if the Qualifying Child listed for EITC
corresponding Qualified Name Control must match is a dependent on page one of tax return and only Reject Code 501, verify source data
data from the IRS Master File. for year of birth or verify with client the year of birth. IRS only verifies year – not month or
day – of birth.
502 Employer Identification Number of Form Based on the Acknowledgement (ACK) Report, determine if W-2, W-2G or 1099R. If more
W-2,W-2G, or 1099-R must match data from the than one, determine from ACK Report which number. Double check the source document.
IRS Master File. If still incorrect, contact payer or have client contact payer. If still unable to resolve, have
taxpayer mail in the return.
503 Last name for the secondary taxpayer on the Verify the name, SSN or ITIN. Ask to see the Social Security card of the spouse. Check for
return does not match the IRS Master File and/or spelling and transposition errors. If the data entered is incorrect, make the corrections and
SSA records. retransmit the return.
504 Dependent’s SSN must match data from the Verify name and SSN or ITIN. Check spelling and data entry. Have the client contact
IRS Master File. Social Security Administration (SSA) to verify information. Ask to see the Social Security
card(s).
506 Qualifying child’s SSN listed for the purpose Verify SSN of the dependent. If correct, the return will need to be mailed. Explain that this
of claiming Earned Income Tax Credit (EITC) has could be inadvertent error on a mailed return OR it is possible someone else may have
been used on another tax return. knowingly claimed this dependent.
507 Dependent’s SSN on the Form 1040 was Verify SSN of the dependent. If correct, the return will need to be mailed. Explain that this
previously used for the same purpose. could be inadvertent error on a mailed return or it is possible someone else may have
knowingly claimed this dependent.
194, 515, 902 or 932 Duplicate SSN in IRS Verify SSN. If correct, the return will need to be mailed. Work with the taxpayer to
database. A tax return has been filed previously for determine if ID Theft could be the cause, see Tab P, Partner Resources.
the SSN.
516 SSN is listed on another return as a Verify SSN. If correct, the return will need to be mailed.
dependent. It is possible someone else may knowingly claimed the dependent.
535 Qualifying SSN on Schedule EIC and the Verify birthday, name and SSN of each child.
corresponding Year of Birth must match data
received from the SSA.
541 Taxpayer must be older than qualifying child Verify birthdays of taxpayer and child.
on Schedule EIC.
600 Taxpayer must file Form 8862 to claim EITC Complete Form 8862, Information To Claim Certain Credits After Disallowance.
after disallowance.

Q-6
Tab R: Glossary and Index

R-i
R-ii
 Glossary

Acknowledgment (ACK) – Custodial and Noncustodial Estimated Tax Payments –

A report generated by the IRS to a Parent – The custodial parent is the Payments paid quarterly by the
Transmitter that indicates receipt of parent with whom the child lived for taxpayer if the expected tax due
all transmissions. An ACK Report the greater number of nights during exceeds certain limits. Generally,
identifies the returns in each the year. The other parent is the estimated payments are made by
transmission that are accepted or noncustodial parent. If the child lived taxpayers that have income from
rejected for specific reasons. with each parent for an equal number self-employment, dividends, interest,
of nights during the year, the custodial capital gains, rent, and royalties.
Adjusted Basis – Original cost of parent is the parent with the higher
a capital asset plus any increases adjusted gross income. Exempt Income – Nontaxable
or decreases to that cost, such as income that is generally not shown
commissions and fees. Dependents – Either a qualifying on the return and not included in
child or a qualifying relative of the the income tax computation. There
Adjusted Gross Income (AGI) – taxpayer. are some instances when exempt
Total gross income minus specific income is shown on the return
deductions such as educator Direct Deposit – An electronic but not included in the income tax
expenses, alimony income, and the transfer of a refund into a taxpayer’s computation such as interest income
Student Loan Interest Deduction. financial institution account. produced from certain types of
investments.
Adjustments to Income – Due Diligence – Due diligence,
Adjustments such as educator when used in context with claiming Exemption – The deduction for
expenses, penalty on early withdrawal the Head of Household filing status personal exemptions is suspended
of savings, and contributions to a or certain credits including the (reduced to $0) for tax years 2018
traditional IRA, that are subtracted Earned Income Tax Credit (EITC), through 2025 by the Tax Cuts and
from total income on Form 1040, to refers to requirements that income Jobs Act. Although the exemption
establish the AGI. tax return preparers must follow amount is zero, the ability to claim
when determining eligibility to file a an exemption may make taxpayers
Adopted child – An adopted child is return or claim for refund as Head eligible for other tax benefits.
treated the same as a natural child for of Household and when determining
the purposes of determining whether eligibility for, and the amount of, Facilitated Self Assistance (FSA) –
a person is related to you in any of certain credits including the EITC. A method taxpayers can use to file
these ways. For example, an adopted their own return using a web-based
brother or sister is your brother or Earned income – Any income tax preparation software program.
sister. An adopted child includes a received for work, such as wages or
child who was lawfully placed with a business/self-employment income. Foreign Earned Income Exclusion
person for legal adoption. – Certain taxpayers can exclude
Earned Income Tax Credit (EITC) – income earned in, and while living in,
Basis – The original cost of a capital A refundable tax credit for most foreign countries.
asset. people who work but do not earn high
incomes. The purpose of the EITC Foster Child – A foster child is an
Blind - A taxpayer is considered blind is to reduce their tax burden and to individual who is placed with you
if either totally blind or has a certified supplement the wages of working by an authorized placement agency
statement from eye doctor that families whose earnings are less than or by judgement, decree, or other
• Taxpayer cannot see better the maximums for their filing status. order of any court of competent
than 20/200 in the better eye with jurisdiction.
glasses or contact lenses or Education Credits – A credit based
• Field of vision is not more than 20 on qualified education expenses the Full-time Student – You’re a full-time
degrees taxpayer paid during the tax year that student if you’re enrolled at a school
The taxpayer does not have to will reduce the amount of tax due. for the number of hours or classes
produce the certificate, but should that the school considers full-time.
have it if IRS asks for it. Electronic Filing Identification You must have been a full-time
Number (EFIN) – An identification student for some part of each of 5
Capital Gain or Loss – The number assigned by the IRS to calendar months during the year. (The
difference between the basis of a accepted applicants for participation months need not be consecutive.)
capital asset and the amount received in IRS e-file.
when it has been sold.

R-1
Gross income – All income received Medicaid Waiver Payment – These Rejected Return – A tax return that
in the form of money, goods, property, are payments treated as difficulty of has been transmitted to the IRS, but
and services that isn’t exempt from tax. care payments when received by an due to validation issue(s), the IRS
individual care provider for care of an has not accepted for e-filing. Rejected
Health Savings Account (HSA) – eligible individual (whether related or Returns must either be re-transmitted
A medical savings account available unrelated) living in their home. and accepted or paper filed.
to taxpayers who are enrolled in a
High-Deductible Health Plan (HDHP). Name Control – The first four Resident Alien – Any individual who
Funds contributed to an account are significant letters of a taxpayer’s last is not a U.S. citizen or U.S. national,
not subject to income tax. name that the IRS uses in connection but meets the either the green card
with the taxpayer SSN to identify the test or the substantial presence test
Identity Protection PIN (IP PIN) – A taxpayer, spouse and dependents. for the calendar year.
six-digit number assigned to eligible
taxpayers that helps prevent the Nonrefundable Credits – A dollar­ Routing Transit Number (RTN) –
misuse of their Social Security for-dollar reduction of the tax liability. A number assigned by the Federal
Number on fraudulent federal income Nonrefundable credits can only Reserve to each financial institution.
tax returns. Allows taxpayer to file reduce the tax liability to zero.
electronically. Self-Select PIN Method –
Nonresident Alien – Any individual An electronic signature option for
Individual Taxpayer Identification who is not a U.S. Citizen, Resident taxpayers who e-file using either
Number (ITIN) – A tax processing Alien, or U.S. National and has not a personal computer or an ERO.
nine-digit number issued by the passed the green card test or the This method requires the taxpayer
IRS. ITINs are issued regardless substantial presence test for the to create a five-digit Personal
of immigrant status because both calendar year. Identification Number (PIN) to use as
resident and nonresident aliens the signature on the e-file return and
may have a U.S. filing or reporting Nontaxable Income – Generally to submit authentication information to
requirement. excludable and not shown on the the IRS with the e-file return.
return, such as gifts and inheritances.
IRS e-file Signature Authorization Sheltered Workshop - A school that:
(Form 8879) – Declaration document Other Taxes – Other taxes such • Provides special instruction or
and signature authorization for an as self-employment tax, taxes on training designed to alleviate the
e-filed return filed by an Electronic IRAs and other qualified retirement disability of the individual; and
Return Originator. plans, and repayment of first-time • Is operated by certain tax-
homebuyer credit, are added to the exempt organizations, or by
IRS Master File – Known as the income tax from the tax tables to a state, a U.S. possession, a
IRS Individual Master File (IMF), establish the total tax. political subdivision of a state or
this application receives data from possession, the United States, or
an array of sources to aid the IRS Payments – Payments such as the District of Columbia.
regarding tax return submissions. federal withholding, Earned Income
The IMF includes tax return filing Tax Credit, and Additional Child Tax Standard Deduction – A dollar
information, payment information, Credit, are subtracted from the total amount that reduces the amount
examination results, and related tax to establish the amount overpaid of income for which an individual
documents. or the amount owed. is taxed, including an additional
standard deduction for individuals
Itemized Deductions – Specific Practitioner PIN Method – An who are blind or age 65 or over.
personal expenses such as electronic signature option for
unreimbursed medical or dental taxpayers who use an Electronic Student – To qualify as a student,
expenses subject to a limitation, Return Originator to e-file. your child must be, during some part
mortgage interest, and charitable of each of any 5 calendar months
contributions that allow taxpayers to Refundable Credits – Reduces the of the year:
reduce their taxable income. tax liability below zero and allows 1. A full-time student at a school
an individual to receive a tax refund. that has a regular teaching staff,
Legally Blind – See Blind. Refundable credits such as federal course of study, and a regularly
withholding, Additional Child Tax enrolled student body at the school,
Main Home – Ordinarily, a home the Credit, and Earned Income Tax Credit or
taxpayer lived in most of the the time. can be used even if there is no tax 2. A student taking a full-time,
liability. on-farm training course given by
a school described in (1), or by a

R-2
 state, county, or local government Columbia, and Puerto Rico. activities are not used during the tax
agency. preparation process. The IRS-tax law
The 5 calendar months do not have to Temporary Absence – You and your certified preparer who prepares the
be consecutive. An on-the-job training qualifying person are considered to return and/or the quality reviewer are
course, correspondence school, or live together even if one or both of not face-to-face with the taxpayer.
school offering courses only through you are temporarily absent from your Includes temporary VITA/TCE
the internet does not count as a home due to special circumstances, Contingency Plan, Drop-Off Site, an
school for dependency exemption such as illness, education, business, Intake Site plus a Return Preparation
purposes. vacation, military service, or detention and/or Quality Review Site.
in a juvenile facility. It must be
Supplemental Security Income reasonable to assume the absent Wash Sale – The sale of securities at
(SSI) - Monthly benefits to people person will return to the home after a loss and the acquisition of the same
with limited income and resources the temporary absence. You must (substantially identical) securities
who are permanently and totally continue to keep up the home during within 30 days of the sale date (before
disabled, blind, or age 65 or older. the absence. or after). The loss is added to the
Amount does not necessarily remain cost of the new stock or securities,
constant all year. It is possible to Totally and Permanently Disabled – increasing the cost basis.
get SSI alone or in conjunction with An individual is permanently and
Social Security benefits. totally disabled if both of the following
apply.
Taxable Income – Adjusted Gross
Income minus standard or itemized
deductions and qualified business 1. He or she can’t engage in any
income (QBI). substantial gainful activity
because of a physical or mental
Taxpayer Advocate Service (TAS) – condition.
An independent organization within 2. A doctor determines the condition
the IRS, led by the National Taxpayer has lasted or can be expected to
Advocate. Its job is to ensure every last continually for at least a year
taxpayer is treated fairly and that or can lead to death.
taxpayers know and understand
their rights. TAS offers free help to Unearned Income – Any income
taxpayers in dealing with the often- not produced from work, such as
confusing process of resolving tax unemployment income or income
problems they have not been able produced by investments.
to resolve on their own. TAS has at
least one taxpayer advocate office Virtual VITA/TCE Methods –
located in every state, the District of Includes any site where face-to-face

R-3
 Index
Symbols Entering Cancellation of Credit Card Nonrefundable G-1
Debt in TaxSlayer D-66 Premium tax credit H-10
401K Principal Residence EXT-1, EXT-4,
Residential energy EXT-6, G-1
Form 1099-R distributions D-37 EXT-5, D-49, D-56
Retirement savings contribution G-14
IRA contributions G-15 Capital Gain Distribution D-14
Retroactively claim refundable tax
Capital gains and losses D-26
A credits M-1
Adjustments to Basis D-30
Custodial parent C-6, K-8, G-9
Abandonment or foreclosure EXT-1 Capital Loss Carryover D-26
ABLE accounts , 14 Cost basis D-27 D
ACA Date Acquired or Date Sold D-27
Death of taxpayer or spouse
Alternative Calculation for Year of Dividend income D-14
Marriage H-11 Entering B-4, B-5
Entering capital gains and losses
Dependents’ MAGI H-12 D-27 Return signature K-13

Federal Poverty Lines H-20 Entering Capital gains and losses Sale of main home D-32

Filing threshold H-12 D-28, N-6, D-51 Dental expenses , D-ii, D-4, C-7, D-38,
Gift 19 F-3, F-5
Form 8962 H-8
Scope limitations 11 Dependent/qualifying person
Healthcare.gov tax tool H-18, H-19
Car and truck expenses D-24 Child and dependent care credit G-9
Ineligibile for the PTC H-14
Carry forward D-29, N-3 Children of divorced or separated
Members of the household H-18
Charitable contributions , D-23, F-11 parents C-1, C-2, C-3
Minimum essential coverage H-14
Charitable Gift Annuity D-44 Child tax credit G-2
Premium Tax Credit Overlapping
Coverage H-14 Child and dependent care C-2, D-7, G-9, Custodial Parent C-2, C-6, K-8, G-9
G-10, G-11 Entering Dependent/Qualifying Person
Unexpected APTC Repayments H-16
Child’s Interest and Dividends 17, H-3 B-20
Additional child tax credit A-4, B-3, D-37,
D-43, G-3 Child tax credit , D-43, G-2 Filing requirement A-1
Adjusted basis D-34, D-35 Qualifying child G-2 Glossary R-1
Adjusted Gross Income R-1 Schedule 3 B-3 Head of household B-11
Adjustments to income , E-1, E-i Civil Service Retirement D-40 Medical and dental expenses F-3
Ad valorem F-8 Codes Qualifying relative C-5
Alimony , 8, D-5, 8, E-1, E-9, F-14 1099-R Box 7 D-43 Rules for Claiming a Dependent C-1
adjustment Form 8949 D-30, D-31 Worksheet for Determining Support
Alternative Minimum Tax D-12
early distribution H-5 C-7
American opportunity credit M-7, O-9
W-2, Box 12 H-14 Deposit slip K-16
Archer MSA , 15, D-57, F-6
Commuting miles D-24 Direct deposit K-2, K-3, K-9, K-16, M-7,
Armed Forces Gross Income D-2
Completing return O-10
Automobiles. See Motor Vehicles
Deceased taxpayer K-13 Disability income D-43, G-17
B Power of attorney K-13 Disability severance payments D-4
Balance due , H-12 Contingency Plans for site operations Q-1 Disabled F-6, G-10
Birth date B-18 Co-ops, income D-2 Dividend. See Dividend income
Blind F-2 Cost of goods sold D-22 Dividend income
Cost of keeping up a home B-13 Dividend Income (Form 1099-DIV)
Bona Fide D-59, D-60
Credits D-14
Bond D-12, D-15, E-4
Additional child tax credit G-3 Nontaxable income D-2
Business miles D-24
Child and dependent care credit G-9 Qualified dividend income D-51
C Child tax credit G-2 Taxable income D-1
Cancellation of Debt (COD) D-2, D-56, Credit for other dependents G-5 Tax-exempt D-12
D-59, D-66, O-9 Elderly or disabled G-17 Divorced parents. See Dependent/qualify­
credit card D-56, D-66 Foreign tax G-6 ing person
R-4
E Form 56 , 12 Form 1099-R
Form 656-B K-20 CSA 1099-R D-38, D-40
Early Distribution, penalty D-43, H-4
Form 709 12 Disability under minimum retirement
Earned income D-41
Form 843 12
Credit for Child and Dependent Care Distribution codes D-43
Expenses G-12, G-13 Form 982 EXT-4, D-59, D-66
Form 1040 Employee contributions D-38
For Children and Other Dependents
A-2 Job Aid B-1, B-2 IRA/Pension Distribution D-36

Earned Income Credit (EIC) Starting a new return B-8 Nontaxable distribution D-45

Glossary R-1 Form 1040-C 12 Public safety officer D-39

inmate in a penal institution D-63 Form 1040-ES , 7, 7, O-8 Qualified Charitable Distribution D-45,
D-47
qualifying child C-2, C-ii, B-20 Form 1040 Job Aid B-1, B-2
Rollovers D-41
should file A-4 Form 1040-NR B-14
Roth IRA D-42
Education Credits Form 1040-SR 7
TaxSlayer navigation D-37
Glossary R-1 Form 1040-SS 7
Treated as wages D-40
Education Expenses Form 1041. See Schedule K-1
Form 1099-S , 15, A-4, D-32, D-35, O-8
1099-Q 14 Form 1041 K-1 D-52
Form 1099-SA 8, 15, E-7, O-8
IRA distributions H-5 Form 1045 12
Form 1116 , 9, 15, D-15, G-8
Qualified education expenses J-1, J-9 Form 1065. See Schedule K-1
Form 1127 15
Education Savings Accounts (ESAs) E-4 Form 1065 K-1 D-53
Form 1310 15
Educator expenses E-4 Form 1066 12
Form 2106 8, 15, E-2
E-file Form 1095-A. See ACA
Form 2120 C-5, 15, 15, O-9
extension of time to file M-10 Form 1095-B 12
Form 2441 , D-7, 15, G-9, G-10, G-11,
EIC. See Earned Income Credit Form 1095-C 12 G-12, G-13
Energy credit EXT-6, G-1 Form 1098 12, O-8 Form 2555 , 8, 15
Estimated tax payments Form 1098-C 10, 12 Form 2848 K-8, O-6, 16, K-7
State D-16, O-12 Form 1098-E 13, O-8 Form 3468 16
Vouchers O-8 Form 1098-Q 13 Form 3520 10, 16
Exempt income , D-51 Form 1098-T. See education credits Form 3800 9, 16
Exemption C-1 Form 1099 K-15 Form 3903 8, 17
Extension M-10, O-6, O-10 Form 1099-A , EXT-1, 13, O-8 Form 4136 16
Form 1099-B. See Capital gains and
F losses
Form 4137 , D-7, 16
Form 4562 10, 11, 16
Facilitated Self Assistance (FSA) R-1 Form 1099-C
Form 4684 16
Federal income , D-41, G-1 qualified principal residence indebted­
ness EXT-1 Form 4797 16
Federal Poverty Lines H-20
Form 1099-DIV D-14 Form 4835 16
Filing requirements A-1, B-14
Form 1099-G 13, O-8 Form 4852 , D-6, 16, O-9
Children and Other Dependents A-2,
H-12 Form 1099-INT D-11 Form 4868 16

Other situations A-3 Form 1099-K N-6, 10, 14, D-12, D-17, Form 4952 16

Filing status A-1, B-12, B-14 D-21, O-8 Form 4972 16

Head of Household B-12 Form 1099-LTC , 14, D-57 Form 5329 A-3, D-43, D-44, H-4

Interview Tips B-11 Form 1099-MISC Form 5405 9, 16

First-time homebuyer credit A-3, D-33 Medicaid waiver payments D-9, N-7 Form 5498 16

Foreclosure EXT-1 Other income D-56 Form 5498-ESA 16

Foreign address B-19 Schedule C D-17, D-18 Form 5498-QA 16

Foreign bank accounts 20 Form 1099-OID 10, 14, O-8 Form 5498-SA 16, E-7

Foreign earned income , D-59, D-60, Form 1099-PATR 8, 14 Form 5695 16

D-61, G-3 Form 1099-Q 8, 14, O-8 Form 6251 , 17, D-12, 17
Foreign tax credit D-15, G-6 Form 1099-QA 8, 14 Form 6252 17
R-5
Form 6781 17 Form 8995-A 20 H
Form 8275 17 Form 9452 20
Head of household B-12
Form 8275 R 17 Form 9465 O-6, 20, O-7
Healthcare.gov tax tool H-18, H-19
Form 8283 17 Form 13614-C B-4, B-5, B-i
Health insurance premiums D-38, D-39,
Form 8332 C-6, K-8, C-4, 17 Form 13844 20 H-5
Form 8379 P-7, 17 Form 14039 P-3, 20, P-4 Home equity interest F-4
Form 8453 C-6, D-23, D-29 Form RRB 1099 D-49 Household employee income D-56
Form 8582 11 Form RRB 1099-R D-48 How to use this guide 4, 5
Form 8606 D-37 Form SS-8 20 HSA , A-3, O-10
Form 8615 7, 17 Form SSA-1099 D-36, D-49, O-9 Contributions E-7
Form 8621 17 Form T (Timber) 12 Distributions E-8
Form 8801 9, 17, A-4 Form W-2 Employer contributions D-8
Form 8805 17 Address D-6 Form 8889 E-7
Form 8814 17 Box 10 G-9 Glossary R-2
Form 8815 17, E-4 Box 12 D-8, E-7, G-14, H-14 Self-Employed Health Insurance E-5
Form 8821 17 Dependent Care D-7, G-9
Form 8822 P-6 I
Form 4852, Substitute for Form W-2
Form 8829 17 D-6 Identity Protection Pin (IP PIN) O-6
Form 8833 17 Health Saving Accounts (HSA) E-7 Identity theft O-10, O-11, P-4
Form 8834 17 Medicaid Waiver Payments D-9 Income
Form 8839 17 Retirement Savings Contributions Armed Forces Gross Income D-2
Form 8848 17 G-14 Capital gains. See Capital gains and
Form 8849 A-1 TaxSlayer navigation D-6 losses
Form 8853 , 18, D-57 Unreported tip income H-1 Dividend. See Dividend income
Form 8857 18 Form W-2G D-56 gambling winnings D-56
Form 8862 Q-6, 18, G-5 Form W-4 K-21 Income quick reference guide D-1
Form 8863 , 18, G-1 Form W-4P K-21 Interest. See Interest income
Form 8865 18 Form W-4V K-21 Rental and royalty income D-54
Form 8879 Q-2 Form W-7 O-6, B-21 Self-employment income D-17
Form 8880 , D-8, 18, G-14, G-15 Foster care Social Security. See Social Security
Form 8885 18 Child tax credit G-2, G-4 State and local refund D-16
Form 8886 18 Claiming a dependent C-1 Taxable income D-1
Form 8888 , 7, 18 Credit for other dependents G-5 TaxSlayer entry D-5
Form 8889 H-6 Head of household B-11 tips D-7, H-1
Form 8903 18 Full-time student Individual Retirement Account. See IRA
Form 8908 18 Glossary R-1 Individual Taxpayer Identification Number.
Form 8910 18 See ITIN
Qualifying child C-3
Form 8911 18 Injured spouse O-6, O-10, P-7
Treated as having earned income
Form 8915-B 18, 19 Innocent spouse P-7
G-10
Form 8919 19 Insolvency Determination Worksheet
G D-20, D-65
Form 8936 19
Installment agreement K-19, O-6
Form 8938 10, 19 Gain and losses D-26, D-29
Insurance premiums D-38, F-6, H-5
Form 8948 19 Gambling losses F-3, F-12
Insurance proceeds D-2
Form 8949. See capital gains and losses Gambling winnings O-9
Intake/Interview & Quality Review Sheet
Form 8958 20 Gift D-2 (Form 13614-C) B-14
Form 8959 20 Glossary R-i, R-1 Interest D-i, D-44, N-6, O-6, P-7, D-1,
Form 8960 20 Grants D-56, D-63 D-51, D-56, F-3, E-4, G-6, G-8
Form 8962 20, H-9 Gross income C-1, D-1, D-3, D-4, G-4 Interest expense , 16, B-13, D-24

R-6
Interest income , D-10, D-11, O-10 deductions F-12 Nonbusiness credit card D-57
Municipal bonds D-12 Joint or survivor annuity D-40 Noncash donations F-4, O-11
Out of scope D-10 Jury duty D-1, D-56, E-1 Noncustodial parent B-12
Private activity bond D-12 Nonrefundable credits , G-1, E-10, G-5
K
Seller financed mortgage D-13 Nonresident alien B-14, F-1
Tax-exempt D-12 K-1 D-51, D-52, D-53
Entering basic information B-17
TaxSlayer navigation D-10, D-11 Keeping up a home B-13
Glossary R-2
Inventory D-21 Keyword (navigating TaxSlayer) O-8
Nontaxable income D-i, D-12, D-17,
IRA Kiddie Tax , A-2 D-39, D-45, D-2, F-9
Adjustments E-10 Kidnapped child C-1 Notary fees D-1
Basis D-42 L O
Charitable gift annuity O-11
Last name N-3, Q-6, B-16, B-17, R-2 Office of Personnel Management D-40
Converting from pre-tax to post-tax
D-41 Legislative Extenders D-66, G-1 OID interest O-11
distributions D-1, D-36, D-39, D-40 Local income tax O-12
Other income A-4, D-56, D-63, D-66, N-6,
Exceptions H-4 Long-term care insurance D-57 O-11
Nontaxable distributions D-45 Loss carryover D-26 Other taxes D-12, O-5, H-1, H-2, H-4,
Qualified charitable distribution D-43, H-6, O-8
M
D-45, D-47, O-11 Out of scope 5, 6
Rollover deadline D-41 Married filing jointly
As a dependent C-1, C-3
P
Tax on early distribution H-4
IRS Direct Pay K-18 Considered unmarried B-11 Paper return K-13
IRS e-file Signature Authorization R-2 Married filing separately Patronage dividends D-2
IRS master file R-2 Not eligible for the standard deduction Payment Card and Third Party Network
F-1 Transactions D-17
IRS Taxpayer Assistance Center (TAC)
L-4, P-1 Premium tax credit H-10, H-13, H-16, Payments and estimates O-5
H-17
ITA M-8, P-10 Pell Grant J-9
Meals and incidental expenses E-2
Itemized deductions D-16 Penalty K-18
Medical expenses
Cash contribution F-4 Pension and annuity income A-2
Early distributions from IRAs H-5
Gambling losses F-12 Pension distribution D-36
Health saving accounts E-8, E-9
Gifts to Charity F-11 Pension income K-21
Itemized deductions F-3, F-5, F-6,
Glossary R-2 Permanently disabled C-1
F-7, O-11
Interview tips F-3, F-4 Personal information N-4, P-4, G-14,
Transportation F-6
Married filing separately F-8 B-18, K-13
Military income (Armed forces income)
Medical expenses F-5, F-7 D-1 Personal property tax F-3, F-8
Miscellaneous F-12 Military reservists expenses E-2 Personal representative K-13
Mortgage interest F-4, F-10 Minimum essential coverage H-14 PIN identity protection P-3
Persons Not Eligible for the Standard Miscellaneous deductions F-6, F-12 Points paid O-11
Deduction F-1 Modified Adjusted Gross Income (MAGI) Poverty lines H-20
Real estate taxes F-8 H-12
Power of attorney K-8, K-12, K-15, O-6
Sales tax F-9 Mortgage interest D-8, B-13, D-13, F-4,
Practitioner PIN Method R-2
State and local general sales taxes O-11
Principal residence EXT-4
F-3, F-8 Motor vehicles D-24
Printing from desktop N-8
Taxes you cannot deduct F-8 Multifactor Authentication O-2
ITIN Prior year data B-9
Municipal bond interest D-29
Child Tax Credit G-1 mySocialSecurity account B-16 Prisoner earned income D-5, D-56, N-6
Private activity bond (PAB) D-12
J N Pro online home O-4
Job aid EXT-1, EXT-4 Name control B-16 Property taxes B-11, B-13, D-24, O-11
Job expenses and certain miscellaneous Nominee interest D-12 Public safety officer D-39
R-7
Q Retirement savings contributions credit Sick pay D-8
G-14, G-15, G-16 Social Security
Qualified business income deduction Rollover D-41, D-44
D-15, F-13 Determining support C-7, C-8
Royalty income D-51, D-54 Lump-sum distributions D-50
Qualified tuition program E-4
RRB D-48 mySocialSecurity account B-16
Qualifying Child
Child and Dependent Care Credit G-9 S TaxSlayer navigation D-48

Child & Dependent Care Credit G-10 Sole proprietor F-13

Sale of main home D-32
Children of divorced or separated Split refund K-16
Sale of stock D-29, O-12
parents C-6 Standard deduction , F-1, F-2, F-5, F-13,
Sales tax D-16, F-8, F-9, O-12 F-i
Child Tax Credit G-2
Savings bond D-12, D-15, E-4 State and local refund worksheet D-16
EIC B-20
Schedule 1 8, B-3 State returns M-2
Entering Dependent/Qualifying Person
B-20 Schedule 2 9, A-3, B-3 Statutory employee D-8
Head of Household B-11 Schedule 3 9, B-3, H-12 Student loan interest , E-11, O-12, O-8
Interview tips C-3 Schedule 8812 12, 17 Supplemental security income (SSI) D-2
Qualifying child of more than one Schedule A , 10, D-55, F-5, F-6, F-7, F-8, Support C-7, C-8
person C-2 F-9

Qualifying relative C-3, C-4, C-5 Schedule C T

Qualifying Relative Car and truck expenses D-24
Taxable and nontaxable income D-1
Dependents C-i, C-1, C-3, C-4, C-5, Cost of goods sold D-22
Taxable income , D-1
C-6 General expenses D-23
Taxable interest A-2, D-11
Head of Household B-11 Health insurance E-1
Taxes you paid F-3, F-8, O-12
Quality review K-11, Q-2, Q-3 Inventory D-21
Tax exempt interest C-4, D-12, D-51,
Quality site requirement 17, 21, K-8 Less than $600 D-17 O-12
Questions about your business D-22 Not reported on Form 1099- MISC Taxpayer Advocate Service (TAS) R-3
D-21
Taxpayer inquiries P-6, P-7
R Out of Scope D-23
Tax return preparation F-12
Railroad Retirement Benefits (RRB) Qualified business income F-13
TaxSlayer Admin
D-48, O-9 Questions about the operation of your
Contingency Plan Q-1
Real estate taxes B-13, D-65, O-11 business D-21
TaxSlayer Pro Desktop
Refund Reported on a Form 1099-MISC D-17
Input highlights N-3
Direct deposit K-2, K-3 TaxSlayer navigation D-17, D-21
Navigating N-1
Prior years M-8 Travel expenses E-2
Printing N-8
state and local refund D-5, D-16 Schedule D , N-6, A-1, D-9, D-14, D-20,
D-26, D-27, D-33, D-44, D-51 TaxSlayer Pro Online
Rental income D-2, D-54, D-55
Schedule E , 8, 11, D-44, D-51, D-54, Homepage O-4
Reservist expenses E-2
D-55 Multifactor authentication O-2
Residency status B-19
Schedule K-1 Navigating O-6
Residential energy credit EXT-6, G-1 Foreign taxes G-6 Temporary absence C-1, B-4, B-5, B-11,
Resident state return B-20 Out of scope items D-51 B-i, C-4
Retirement savings contributions credit TaxSlayer navigation D-51 Tiebreaker Rules C-2
E-10, G-14, G-15, G-16, O-12
Schedule R 12, G-18 Tip income D-7
Retroactive claim some tax credit M-7
Schedule SE F-13, H-1 Tips D-1, A-2, A-3, D-7, H-1, O-12
Reverse mortgages D-2, D-12
Scholarships D-56, D-63 Transcripts M-7
Rollover deadline D-41
Scope of service 5, 6 Tribal per capita payments D-1, O-13
Roth IRA
Self employed health insurance deduction
Contribution D-42 E-5
U
Converting from pre-tax to post-tax Self-employment income D-17, D-21, Unemployment compensation D-1, D-5,
D-41 O-12 O-13
Deduction E-10 Seller financed mortgage interest D-13, Unreported Social Security and Medicare
Distribution D-41, D-42 O-12 tax H-1

R-8
Unreported tip income H-1

V
Vehicle license registration fee F-8
Veterans D-2
View form option N-3
Virtual VITA/TCE Methods R-3
Volunteer Agreement 17, 21
Volunteer expenses O-13
Voucher K-18

W
Wages reported on Form 1099-R.
See Form 1099-R
Wash Sale D-30
Welfare payments D-2
Who must file A-1, A-3
Who should file A-4
Withholding D-6, D-8, D-58
Worksheet for determining support C-7
Worldwide income D-59

R-9
Notes

R-10
 Taxpayer Civil Rights
The Department of the Treasury-Internal Revenue Service will not tolerate discrimination based on race, color,
national origin (including limited English proficiency), disability, reprisal, sex (in education programs or activities)
or age in programs or activities receiving federal financial assistance from the Internal Revenue Service.
Persons with disabilities and/or limited English proficiency should be able to participate in or benefit from programs
and services that IRS supports. Taxpayers with a disability may request a reasonable accommodation and
taxpayers with limited English proficiency may request language assistance to access service. For additional
information refer to Publication 4053, Your Civil Rights Are Protected, for reasonable accommodation.
If a taxpayer believes that he or she has been discriminated against, a written complaint should be sent to:
Internal Revenue Service
Civil Rights Unit
1111 Constitution Avenue, NW, Room 2413
Washington DC 20224
Email edi.civil.rights.division@irs.gov
Do not send tax returns, payments or other non-civil rights information to this address.

Low Income Taxpayer Clinics (LITCs) - Assistance with Tax Problems

Has your taxpayer received a letter from the IRS tax refunds that were stolen due to identity theft,
or has their federal refund been offset? An LITC and appealing IRS decisions. Individual taxpayers
may be able to help. include self-employed taxpayers or individual tax
What are LITCs? LITCs are organizations that debt even if it is related to operation of a business.
represent and advocate for taxpayers who have tax LITCs may also help with taxpayers who have both
problems with the IRS. They are independent from the a federal tax dispute and related state and local tax
IRS and the Taxpayer Advocate Service (TAS). LITC disputes. In addition, LITCs can provide information
tax professionals offer services for free or a small fee. about taxpayer rights and responsibilities in different
languages for individuals who speak English as a
Who can receive LITC help? Taxpayers whose second language.
incomes are below a certain level may be eligible
for assistance (generally not to exceed 250% of Where are LITCs located? To find the closest LITC
the federal poverty level). Up to 10% of the cases or learn more about LITCs, visit
accepted by an LITC may include taxpayers who have www.irs.gov/advocate/low-income-taxpayer-
income above 250% of the poverty level. For this clinics or download IRS Publication 4134, Low
reason, it is often best to refer a taxpayer and allow Income Taxpayer Clinic List,
the clinic to make the eligibility determination. at www.irs.gov
What issues can LITCs help with? LITCs can help Taxpayers can also get this publication by calling the
with many federal tax issues, e.g., making payments IRS toll-free at 800-TAX-FORM (800-829-3676).
or requesting collection alternatives like currently not Note: Your site can order printed copies of
collectible or offer in compromise, helping to gather Publication 4134 to keep on hand and you can
proof to show eligibility for tax exemptions and credits contact your local LITCs and request copies of their
such as the Earned Income Tax Credit, obtaining brochures or business cards.
Taxpayer Advocate Service is Here to Help You
What is the Taxpayer Advocate Service? system, process, or procedure just isn’t working as it
The Taxpayer Advocate Service (TAS) is an should. And the service is free. If you qualify for TAS
independent organization within the Internal Revenue assistance, you will be assigned to one advocate who
Service (IRS) that helps taxpayers and protects will work with you throughout the process and will do
taxpayer rights. TAS strives to ensure that every everything possible to resolve your issue. TAS can
taxpayer is treated fairly and that you know and help you if:
understand your rights under the Taxpayer • Your problem is causing financial difficulty for you,
Bill of Rights. your family, or your business.
What can TAS do for you? • You face (or your business is facing) an immediate
threat of adverse action.
TAS can help you if your tax problem is causing a • You’ve tried to contact the IRS, but no one has
financial difficulty, you’ve tried and been unable to responded, or the IRS hasn’t responded by the
resolve your issue with the IRS, or you believe an IRS date promised.
How can you reach TAS? How can you learn about your taxpayer rights?
TAS has offices in every state, the District of Columbia, The Taxpayer Bill of Rights describes ten basic rights
and Puerto Rico. To find your advocate’s number: that all taxpayers have when dealing with the IRS. The
• Go to www.taxpayeradvocate.irs.gov/contact- TAS website www.taxpayeradvocate.irs.gov can help
us; you understand what these rights mean to you and how
• Download Publication 1546, Taxpayer Advocate they apply. These are your rights. Know them.
Service - We Are Here to Help You available at How else does the Taxpayer Advocate Service help
www.irs.gov/forms-instrcutions. If you do not taxpayers?
have internet access, you can: TAS works to resolve large-scale problems that affect
• Call the IRS toll-free at 800-TAX-FORM (800-829- many taxpayers. If you know of one of these broad
3676) and ask for a copy of Publication 1546; issues, please report it to TAS at Systemic Advocacy
• Check your local directory; or Management System (SAMS).
• Call TAS toll-free at 877-777-4778. Be sure to not include any personal taxpayer information.

Information for Volunteers

TaxSlayer
TaxSlayer Volunteer Support 1-800-421-6346 (Do not give to the public)
Need site SIDN when you call
TaxSlayer via E-Mail support@vita.taxslayerpro.com
TaxSlayer Chat From inside a return, select Help and Support, then
choose Chat
Prior Year Return Access
Current and 6 previous years accessible from one URL vita.taxslayerpro.com
Internal Revenue Service
VITA/TCE Hotline for tax law questions 1-800-829-8482 (800-TAX-VITA)
(volunteer use only) January 23, 2023 - April 18, 2023
Monday - Friday 7:00 AM – 7:00 PM
No service on Saturdays
IRS e-file Help Desk 1-866-255-0654
Identity Theft Unit 1-800-908-4490
Taxpayer Assistance Centers 1-844-545-5640
Quality and Volunteer Tax Alerts www.irs.gov/individuals/quality-and-tax-alerts-for-
irs-volunteer-programs
IRS Toll-free line 1-800-829-1040
Order IRS Forms and Publications 1-800-829-3676
Information to Assist Taxpayers
Refund Offset Inquiry (Bureau of the Fiscal Service) 1-800-304-3107
IRS Tax-Help for Deaf (TDD) 1-800-829-4059
Taxpayer Advocate Service 1-877-777-4778
Social Security Administration 1-800-772-1213
Treasury Retail Securities (savings bonds) 1-844-284-2676