1NY3 Instructor Training 2010
Review
Topics Suggested by Instructors
2NY3 Instructor Training 2010
SS vs SSDI vs SSI
• Social Security• Retirement payments• Reduced benefits at 62• Full benefits at 65, 66, 67, ???• Financed through payroll tax• Up to 85% MAY be taxable – it depends
3NY3 Instructor Training 2010
SS vs SSDI vs SSI
• Social Security Disability Insurance• Payments to workers that become
disabled• Financed through payroll taxes• Can collect until minimum retirement
age• Entered on line 7 as earned income
• After min retirement age – becomes retirement income• Entered line 16
4NY3 Instructor Training 2010
SS vs SSDI vs SSI
• SSI• Supplemental Security Income• For disabled with little or no income• Administered by Social Security Admin• NOT TAXABLE• Financed through “general revenues”• Clients frequently ask about children’s
SSI
5NY3 Instructor Training 2010
NYS Retirement Exemption• NYS Subtractions – Line 26
• NYS, local, or federal pension• Includes State and City Universities• State pension from outside NYS not eligible• NYS or Federal pension received via ex-spouse
• How do you know??• Ask client• If not obvious and client doesn’t know
• Give client opportunity to find out• Assume not a full subtraction but eligible
for 20K subtraction – line 29• Explain to client
6NY3 Instructor Training 2010
NYS $20K Income Exclusion
• Non NYS, local or Fed pensions• Is non gov’t pension received via ex-
spouse eligible?
• No – not from employer – employee relationship
7NY3 Instructor Training 2010
1099-R – Taxable?
8NY3 Instructor Training 2010
1099-R – Taxable?
• Payer should provide taxable amount unless reasonably unable to
• If unable to – box 2a left blank
9NY3 Instructor Training 2010
1099-R – Taxable?
• For Pension -If box 2b “Taxable amount not determined” is checked – 2a is blank
• For Traditional, SEP, or SIMPLE IRA• Payer not required to determine taxable
amount• Box 2a will be same as box 1
10NY3 Instructor Training 2010
1099-R – Taxable?
• If 2a is blank – Interview client• Contributions• Date of retirement• Date started collecting• Was it spouse’s pension• Connection to NYS subtraction
11NY3 Instructor Training 2010
1099-R – Taxable?
• If client cannot provide adequate answers:• Give client option to go away and come
back with answers• Assume all taxable
• Explain assumption to client• Worst thing to happen – additional refund or
owe less
12NY3 Instructor Training 2010
414HSUB
• This year TW will accept 414H• Eligible for Retirement Savings Credit
form 8880?
13NY3 Instructor Training 2010
414HSUB
• NOT eligible for 8880• Not a voluntary contribution
14NY3 Instructor Training 2010
Energy Credits
• Non-business energy property credit• Improvements made for main home• Covers energy efficient
• Windows• Doors• Insulation• Some metal and asphalt roofs• Cannot include prep and/or installation
15NY3 Instructor Training 2010
Energy Credit
• Non-business energy property credit• Can include
• Heat pumps• Air conditioners• Water heaters• Stoves that burn bio-mass• Prep and installation
16NY3 Instructor Training 2010
Energy Credit
• Credit is 30% of eligible costs up to $1500
• $1500 is total of 2009 & 2010 credit• If took $1000 credit in 2009 – can only
take up to $500 in 2010
• Claimed on form 5695 Part I
17NY3 Instructor Training 2010
Energy Credit
• Residential Energy Efficient Property Credit
• Covers• Solar• Wind• Geothermal
• Form 5695 Part II• OUT OF SCOPE
18NY3 Instructor Training 2010
NY Volunteer Preparers – Common Errors
Sheet from NYS
19NY3 Instructor Training 2010
NYS Credits Check
• Bob Parsons sheet – New York Credits Check List
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