Changes to Offutt Tax Center services for 2010 tax season

  • Published
  • By Offutt Tax Center
  • 55th Wing Legal Office
OFFUTT AIR FORCE BASE, Neb. --  As tax season approaches the Offutt Tax Center staff is preparing for a busy tax season and wants its customers to be aware of some changes in its service offerings.

Members of the Volunteer Income Tax Assistance program run the Offutt Tax Center providing free tax advice, preparation and assistance to military members and their family members. The center has seen significant changes this year. Because of IRS-mandated changes, there are several forms VITA volunteers can no longer accomplish at the center here.

"For the VITA program to continue at Offutt we must be in compliance with the IRS rules," said Pam Clark, Offutt Tax Center manager. "We understand these changes will affect many of our client's and we regret the inconvenience this will cause, but there are many forms we can still help the military community with and we will strive to make this tax year as painless as possible."

Changes include:

1. Schedule C (Business Income) - VITA volunteers can't complete your return if you have business use of your home, carry over inventory, depreciable equipment, employees or if your business has a loss. Schedule C-EZ is the only business income schedule VITA volunteers may complete.

2. Form 4797 (Sale of Business Property) - This form can't be accomplished by a VITA volunteer for the sale of a home that was used for business other than a rental. VITA volunteers can still accomplish this form for a military member who used a home as a rental.

3. Form 5329 (Early Distributions of Sheltered Funds) - VITA volunteers can only complete this form if the taxpayer took an early IRA/Roth distribution for education, buying a first home or health reasons. VITA volunteers can't complete this form if a taxpayer moved an IRA/Roth distribution and didn't rollover the full amount.

4. Form 8606 (IRA Contributions) - VITA volunteers can't complete this form if you need to claim nondeductible IRA contributions when you have taken a distribution.

5. Schedule D Worksheet (Sale of Personal Home Exclusion) - VITA volunteers can't complete this worksheet for reduced exclusion or prior exclusion on the sale of a home. This form is for taxpayers who owned and used a home for less than two years and so don't meet the ownership and use test.

6. Schedule K-1 (Partnership or Trust Income) - VITA volunteers can accomplish this form unless the form lists anything other than interest, dividends or capital gains. VITA volunteers are also unable to accomplish this form if you are listed as "At Risk" or "Passive Income" on the form.

7. Schedule E (Rental Income) - VITA volunteers can complete this form if the taxpayer is actively involved in the decisions of the rental property. To be considered actively involved in the rental property taxpayer must make significant management decisions, such as approving rental terms, repairs, expenditures and new tenants. Taxpayers who use a property manager could be considered active participants if they retain final management rights.

8. Form 8814 (Parents' Election to Report Child's Interest and Dividends) - VITA volunteers can only complete this form for the Alaskan Dividend Fund received by a minor.

9. Form 8889 (Health Savings Account) - VITA volunteers can't complete this form.
10. Form 8853 (Archer Medical Savings Account) - VITA volunteers can't complete this form.

11. Schedule F (Profit or Loss from Farming) - VITA volunteers can't complete this form.

12. Form 3903 (Moving Expense) - VITA volunteers can complete this form only for expenses incurred by a military member for a permanent change of station move.

13. Form 4684 (Casualty and Loss) - VITA volunteers can't complete this form.

14. Form 2555 (Foreign Earned Income Exclusion) - VITA volunteers can't complete this form.

15. Form 5695 (Residential Energy Credit) - VITA volunteers can only complete page 1.

16. Form 8910 (Alternate Motor Vehicle Credit) - VITA volunteers can't complete this form.

The tax center is scheduled to open Jan. 25 for EZ-form filers on a walk-in basis from 8 a.m. - 3:30 p.m. Appointments can be scheduled starting Jan. 4 and will begin Feb. 1. EZ-form walk-ins are accepted throughout the tax season.

For more information or to schedule an appointment, call the Offutt Tax Center at 294-3759. The tax center is located in the basement of the 55th Wing Legal Office.