OFFUTT AIR FORCE BASE, Neb. -- As tax season approaches the Offutt Tax Center is preparing for a busy tax season and wants its customers to be aware of its service offerings.
The Offutt Tax Center is located on the first floor of the 55th Wing Legal Office. The waiting area is combined with the legal office; with this in mind we are asking that no children be brought to the tax appointment.
The Volunteer Income Tax Assistance program, which runs the Offutt Tax Center providing FREE tax advice, preparation, and assistance to military members and their dependents, has seen significant changes in the past couple of years. Because of IRS-mandated changes, complexity of tax returns and limited volunteer staff there will be several tax issues the VITA volunteers can no longer accomplish at Offutt AFB.
For the 2015 tax season we are requiring the taxpayer and spouse to be present to begin the return. We are required to verify the identity of the taxpayers prior to beginning the return. We are requiring the taxpayers to bring a photo ID, social security cards for everyone on the tax return, and last year's tax return with them to their tax appointments.
We understand that the "Out of Scope" items will affect some 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.
The tax center is scheduled to open Jan. 26. EZ-form filers are on a walk-in basis from 8 a.m. - 3:30 p.m., Monday - Friday throughout the tax season. There will also be a drop-off service available for EZ filers only with a two day turn around. We will begin scheduling appointments Jan. 5 for those taxpayers filing 1040A's and 1040's.
Out of Scope Items:
- Taxpayers who cannot substantiate their identity
- Taxpayers with F, J, M, or Q visas
- 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
- Self-employed health coverage deductions for the premium tax credit
- Taxpayers who may qualify for the health coverage tax credit
- A spouse who may be relieved of joint liability
- Taxpayers with income from the following sources reported on Form 1040
- Other gains/losses (line 14)
- Farm income (line 18)T
- Taxpayers affected by the Additional Medicare Tax
- Certain children with unearned income who must file Form 8615
- Accrual method for reporting income
- Taxpayers who buy or sell bonds between interest payment dates
-Form 1099-INT, box labeled Specified private activity bond interest if AMT applies
- Adjustments needed for any of the amounts listed on Form 1099-OID, or if the taxpayer should have received Form 1099-OID but did not receive one
- Form 1099-DIV, boxes labeled Unrecap. Sec. 1250 gain, Section 1202 gain, Cash liquidation distributions, and Noncash liquidation distributions
-Tax returns for ministers and members of the clergy because of unique tax issues
- Household employee
Business Income/Self-Employed
- Hobby income or not-for-profit activity
- Return and allowances
- Cost of goods sold
- Expenses for employees
- Business use of home
- Casualty losses
- Vehicle expenses reported as actual expenses
- Depreciation
- Rental or lease expense - vehicle, machinery, and equipment leases of more than 30 days
- Accounting methods other than the cash method
- A "No" response that indicates the taxpayer does not meet any of the tests of material participation, or is uncertain about materially participating in a business
- Taxpayers who receive any credit card or similar payments that included amounts that are not includible in income
- A "Yes" response indicating there is a requirement to file Form(s) 1099
Capital Gains/Losses
- Taxpayers who have sold any assets other than stock, mutual funds, and a personal residence
- Like-kind exchanges, wash sales, and worthless securities
- Form 1099-B, boxes on Wash sales; 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 tracts
- Reduced exclusion computations/determinations in 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
Retirement
- Retirement income from SIMPLE IRAs and SEP IRAs
- The taxpayer needs to file Form 8606
- Taxpayers who made nondeductible contributions to a traditional IRA
- Roth IRA distributions that are taxable or partially taxable
- IRA rollovers that do not meet the tax free requirements
- Part of a distribution is a return of after-tax contributions (may require Form 8606)
- Taxpayers who used the General Rule to figure the taxable portion of pensions and/or annuities for past years
- Form 1099-B, distribution code A (lump-sum distribution qualifying for special tax treatments)
Rental Income/K-1
- 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 (Passive Income)
- Taxpayers who filed or need to file Form(s) 1099
Adjustments to Income
- Other adjustments to income on Form 1040, such as:
- Self-employed health insurance deduction
- Self-employed SEP, SIMPLE, and qualified plans
- Domestic production activities deduction
- Form 8606, Nondeductible IRAs
Standard Deduction/Itemization
- Casualty and theft losses
- Form 1098-C, Contributions of Motor Vehicles, Boats and Airplanes
- Taxpayers affected by limits on charitable deductions
- If the taxpayer is donating property that was previously depreciated
- If the taxpayer is donating capital gain property
Foreign Tax Credit
- Taxpayers who paid foreign taxes that do not qualify for the credit, and wish to deduct the taxes on Schedule A
- 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 12116 required for foreign income from a sanctioned country, using the "Section 901(j) income" category
Miscellaneous Credits
- Mortgage interest credit
Other Taxes
- Household employment taxes
- Parts II through VIII of Form 5329 (only Part I is in scope)
Taxpayers who choose to claim any of the following credits:
- Form 4136, Credit for Federal Tax Paid on Fuels
- Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains
- Form 8839, Qualified Adoption Expenses
- Form 8885, Health Coverage Tax Credit
For more information or to schedule an appointment, call the Offutt Tax Center at 294-3759.