CyberTax TY2015-04

February 4, 2016

To: All Volunteers of AARP Foundation Tax-Aide (with a valid email address in our system)

From: Jackie Lynn Coleman, Assistant National Director, Training and Quality Assurance, AARP Foundation Tax-Aide

Subject :  CyberTax TY2015-04: Volunteer Tax Alert 01: Consolidated Appropriations Act 2016 (Extenders) and Full year Health Coverage Box on Form 1040

Happy Tax Season everyone! This message regards the first Volunteer Tax Alert of the 2016 Filing Season on the issues/changes from the late tax legislation passed in December. Please note the following information regarding this Volunteer Tax Alert 2016-01 is in reference to how it relates to AARP Foundation Tax-Aide policy and practice.

  • This Volunteer Tax Alert highlights information about tax law changes related to:
  • Earned Income Tax Credit
  • American Opportunity Credit
  • Child Tax Credit
  • 529 college savings accounts
  • ABLE accounts, and
  • any civil damages, restitution or other monetary award

It is important to review this information before preparing returns. Please note that these changes were also addressed in the December 30 and February 3 SMT Roundups and are also in in OSHC article available through this link. To review the full Volunteer Tax Alert click here. Remember the Volunteer Tax Alerts must be available at the site either electronically or by hard copy according to the IRS Quality Site Requirement number four.

Full-year Coverage box – Form 1040 Line 61 The Form 1040 instructions are to check the Full-year coverage box at Line 61 on the Form 1040 only if all individuals on the return had minimum essential coverage all year. TaxWise incorrectly automatically checks this box if all individuals had coverage and/or an exemption for the entire year, i.e., the box is checked even if there is an active, in-use Form 8965 in the return. CCH is aware of the problem. IRS SPEC guidance at this point is to ignore the box.