Review

1NY3 Instructor Training 2010

Review

Topics Suggested by Instructors


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


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


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


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


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


1099-R – Taxable?


1099-R – Taxable?

• Payer should provide taxable amount unless reasonably unable to

• If unable to – box 2a left blank


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


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


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


414HSUB

• This year TW will accept 414H• Eligible for Retirement Savings Credit

form 8880?


414HSUB

• NOT eligible for 8880• Not a voluntary contribution


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


Energy Credit

• Non-business energy property credit• Can include

• Heat pumps• Air conditioners• Water heaters• Stoves that burn bio-mass• Prep and installation


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


Energy Credit

• Residential Energy Efficient Property Credit

• Covers• Solar• Wind• Geothermal

• Form 5695 Part II• OUT OF SCOPE


NY Volunteer Preparers – Common Errors

Sheet from NYS


NYS Credits Check

• Bob Parsons sheet – New York Credits Check List

Review

Documents

Transcript of Review