Scope of Services

The following items are out of scope:

• Foreign social security from Canada or Germany that is treated as U.S. Social Security
• Qualified Business Income Deduction is out of scope for
  
  
  • Taxable income over $175,050 ($340,000 if MFJ)
  • Publicly traded partnership income
  • Form 8995-A

The following types of returns are out of scope:

• U.S. Nonresident Alien Income Tax Return
• Self-Employment Tax Return - Puerto Rico (in Spanish)
• Amended U.S. Individual Income Tax Return

Visit the International VITA lab for help with non-resident tax returns

If you're a non-resident alien for tax purposes, then you can visit the International VITA lab.
If you're a resident for tax purposes, then Centro Hispano can help with these: 801-655-0258

The following items are out of scope:

• Box 12 codes Q, R, or T
• Box 12 code FF (if premium tax credits are involved)
• Foreign employer compensation
• Ministers and other members of the clergy

The following item is out of scope:

• Shared policy allocation

If your 1095-A has individuals listed on it that are not on your return or you are listed on the 1095-A of another person (e.g., a parent) and not a dependent on their return, then your return is out of scope

The following item is out of scope:

• Boxes 4 and 6

There are many types of 1099s, some of which have scope limitations:

Form 1099-A - Acquisition or Abandonment of Secured Property

• Only in scope for qualified principal residence (if extended)

Form 1099-B - Proceeds from Broker and Barter Exchange Transactions

• FATCA filing requirement box checked
• Boxes 1f, 3 and 7-11, 13

Form 1099-C - Cancellation of Debt

• Includes an amount for interest except when for nonbusiness credit card debt cancellation and taxpayer is solvent before the cancellation

Form 1099-CAP - Changes in Corporate Control and Capital Structure

• In scope

Form 1099-DIV - Dividends and Distributions

• Taxpayer is a nominee
• Boxes labeled Unrecap Sec. 1250 gain, Section 1202 gain, Collectibles (28%) gain, Section 897 ordinary dividends, Section 897 capital gain, Cash liquidation distributions, and Noncash liquidation distributions
• FATCA filing requirement box checked

Form 1099-G - Certain Government Payments

• Box 3 is other than the current tax year
• Boxes 7-9

Form 1099-H - Health Coverage Tax Credit

• Completely out of scope

Form 1099-INT - Interest Income

• Taxpayer is a nominee
• An adjustment is needed to any amount reported
• Amounts reported in the box labeled Specified private activity bond interest if AMT applies
• Amounts reported in the box labeled Bond premium that exceed amounts reported in the box labeled Interest
• FATCA filing requirement box checked
• Accrued bond interest other than for savings bonds
• Bonds bought or sold between interest payment dates other than for savings bonds
• Bond premium on Treasury obligations that exceed Interest on U.S. Savings Bonds and Treasury obligations
• Bond premium on tax-exempt bond that exceed Tax-exempt interest

Form 1099-K - Payment Card and Third Party Network Transactions

• Received for any income other than self-employment income

Form 1099-LTC - Long-Term Care and Accelerated Death Benefits

• In scope

Form 1099-MISC - Miscellaneous Information

• Box 1
• Box 5 Fishing boat proceeds
• Boxes 7-15
• FATCA filing requirement box checked

Form 1099-NEC - Nonemployee compensation

• Athletes receiving NIL income

Form 1099-OID - Original Issue Discount

• FATCA filing requirement box checked
• Box 6 Acquisition premium
• Adjustment needed, or no form received

Form 1099-PATR - Taxable Distributions Received From Cooperatives

• Any boxes other than Box 1 for personal use only

Form 1099-Q

• Distributions if funds were not used for qualified education expenses
• Distribution was more than the amount of the qualified expenses

Form 1099-QA - Distribution from ABLE Account

• Distribution from ABLE Account that was more than the amount of the qualified expenses

Form 1099-R - Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

• IRA rollovers that do not meet the tax-free requirements
• Taxpayers who used the General Rule to figure the taxable portion of pensions and/or annuities for past years
• Box 7 codes 2 and 7, if the IRA/SEP/SIMPLE box is checked and there were nondeductible contributions
• Box 7 codes 5, 6, 8, 9, A, E, J, K, N, P, R, T, U, W

Form RRB-1099

• In scope

Form 1099-S - Proceeds from Real Estate Transactions

• Home was used for rental purposes
• Sales of business property
• Installment sales income
• Like-kind exchanges

Form 1099-SA

• Archer MSA
• Medicare Advantage MSA

Form SSA-1099 - Social Security Benefit Statement

• In scope

The following items are out of scope:

• Adjustment codes N, Q, X, R, S or C
• Reduced exclusion on sale of home
• Residence inherited or received as gift and not used as personal residence. If used as personal residence, taxpayer must provide basis

The following forms have scope limitations:

Form 982 - Reduction of Tax Attributes Due to Discharge

• Issues other than discharge of qualified principal residence indebtedness
• Principal residence used in business or as rental property
• Taxpayer filed bankruptcy or was insolvent immediately before the debt was canceled

Form 2441 - Child and Dependent Care Expenses

• Taxpayers who need assistance in determining if employment taxes are owed for household employees

Form 5329 - Additional Tax on Qualified Plans and Other Tax-Favored Accounts

• IRA minimum distributions not withdrawn when required
• Excess contributions to an IRA that are not withdrawn by the due date of the return including extensions
• Parts II through IX

Form 5405 - Repayment of the First-Time Homebuyer Credit

• Taxpayers who claimed credit and their home is destroyed, condemned or disposed of under threat of condemnation
• Taxpayers who claimed the first-time homebuyer credit may be required to repay the credit in the year of sale. The repayment is limited to the amount of gain on the sale. This situation is out of scope for VITA/TCE. 

Form 5498 - IRA Contribution Information

• SEP or SIMPLE contributions
• Nondeductible contributions

Form 5498-SA - HSA, Archer MSA or Medicare Advantage MSA Information

• Archer MSA
• Medicare MSA

Form 5695 - Residential Energy Credit

• Residential Energy Efficient Property Credit (Part I)

Form 6251 - Alternative Minimum Tax

• In scope for interest from private activity bond on Line 2g
• Out of scope if AMT applies

Form 8283 - Noncash Charitable Contributions

• Noncash contributions >$500

F 8615 - Tax for Certain Children Who Have Unearned Income (also known as Kiddie Tax)

• Only in scope for Native Americans receiving per capita payments and Alaska residents receiving permanent fund dividends 

Form 8814 - Parent’s Election to Report Child’s Interest and Dividends

• Only in scope for Alaska residents receiving permanent fund dividends 

Form 8853 - Archer MSAs and Long-Term Care Insurance Contracts

• Only in scope for Section C

Form 8889 - Health Savings Accounts

• Excess contributions to an HSA that are not withdrawn in a timely fashion
• Qualified HSA funding distributions from an IRA
• Death of an HSA holder (when spouse is not the designated beneficiary)
• Additional Tax for Failure to Maintain HDHP Coverage
• Deemed distributions from an HSA due to prohibited transactions, such as using an HSA as a security for a loan
• Archer Medical Saving Accounts (MSA)
• Medicare Advantage MSA
• Health Reimbursement Arrangement
• Part III, lines 18-21

Form 8915-F - Qualified Disaster Retirement Plan Distributions and Repayments

• Only in scope for 2020 Coronavirus distributions and repayments

Form 8958 - Allocation of Tax Amounts Between Certain Individuals in Community Property States
Only in scope for:

• Taxpayers who are not certain they are in a common law marriage (rules are complex and differ from state to state)
• Applicable returns as limited by Site or Program Coordinator
• Depending on your tax assistance program, community property tax laws for married taxpayers who file a separate return from their spouse 

F 8962 - Premium Tax Credit (PTC)

• Self-employed health coverage deductions for taxpayers who are also allowed a PTC
• Form 8962 Part IV, Allocation of Policy Amounts, and Part V, Alternative Calculation for Year of Marriage
• Individuals eligible for the health coverage tax credit
• If there is a code FF on Form W-2, box 12 and the employee has a Marketplace policy and is otherwise eligible for PTC 

Form 8995 - Qualified Business Income Deduction Simplified Computation

• Certain rental real estate enterprises treated as a single trade or business

The following forms are out of scope:

• F T - Forest Activities Schedule
• F 56 - Notice Concerning Fiduciary Relationship
• F 709 - United States Gift (and Generation-Skipping Transfer) Tax Return
• F 843 - Claim for refund and request for abatement
• F 1040-C - U.S. Departing Alien Income Tax Return
• F 1045 - Application for Tentative Refund
• F 1066 - Quarterly Notice to Resident Interest Holder of REMIC Taxable Income of Net Loss Allocation
• F 1098-C - Contributions of Motor Vehicles, Boats, Airplanes
• F 1098-MA - Mortgage Assistance Payments
• F 1116 - Foreign Tax Credit - INTERNATIONAL LAB
• F 1127 - Extension of Time for Payment of Tax Due to Undue Hardship
• F 2106 - Employee Business Expenses
• F 2210 - Underpayment of Estimated Tax by Individuals, Estates and Trusts
• F 2439 - Notice to Shareholder of Undistributed Long-Term Capital Gains
• F 2555 - Foreign Earned Income
• F 3468 - Investment Credit
• F 3520 - Foreign Trusts/Foreign Gifts
• F 3800 - General Business Credit
• F 4136 - Credit for Federal Tax Paid on Fuels 
• F 4562 - Depreciation and Amortization (including information on listed property)
• F 4684 - Casualties and Thefts
• F 4797 - Sales of Business Property
• F 4835 - Farm Rental Income and Expenses 
• F 4952 - Investment Interest Expense Deduction
• F 4972 - Tax on Lump-Sum Distributions
• F 6252 - Installment Sales Income
• F 6781 - Gains and Losses From Section 1256 Contracts and Straddles
• F 3903 - Moving Expenses
• F 8275 - Disclosure Statement
• F 8275 R - Regulation Disclosure Statement 
• F 8396 - Mortgage Interest Credit
• F 8582 - Passive Activity Loss Limitations
• F 8606 - Nondeductible IRAs
• F 8621 - Information Return by A Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund
• F 8801 - Credit for Prior Year Minimum Tax
• F 8805 - Foreign Partner’s Information Statement of Section 1446 Withholding Tax
• F 8815 - Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued after 1989
• F 8821 - Tax Information Authorization
• F 8829 - Expenses for Business Use of Your Home
• F 8833 - Treaty-Based Return Positive Disclosure Under Section 6114 or 7701 (b)
• F 8834 - Plug-In Electric Vehicle Credit
• F 8839 - Qualified Adoption Expenses
• F 8848 - Consent to Extend the Time to Access the Branch Profits Tax Under Regulations Section 1.884-2 (a) and (c) 
• F 8857 - Request for Innocent Spouse Relief 
• F 8865 - Return of U.S. Persons With Respect to Certain Foreign Partnerships
• F 8885 - Health Coverage Tax Credit
• F 8886 - Reportable Transaction Disclosure Statement
• F 8903 - Domestic Production Activities Deduction
• F 8908 - Energy Efficient Home Credit
• F 8910 - Alternate Motor Vehicle Credit
• F 8911 - Alternative Fuel Vehicle Refueling Property Credit
• F 8915-B - Qualified 2017 Disaster Retirement Plan Distributions and Repayments
• F 8915-C - Qualified 2018 Disaster Retirement Plan Distributions and Repayments
• F 8915-D - Qualified 2019 Disaster Retirement Plan Distributions and Repayments
• F 8919 - Uncollected Social Security and Medicare Tax on Wages
• F 8936 - Qualified Plug-in Electric Drive Motor Vehicle Credit
• F 8938 - Statement of Specified Foreign Assets
• F 8948 - Preparer Explanation for Not Filing Electronically 
• F 8959 - Additional Medicare Tax
• F 8960 - Net Investment Income Tax – Individuals, Estates and Trusts
• F 8995-A - Qualified Business Income Deduction
• F 9452 - Filing Assistance Program
• F 13844 - Application For Reduced User Fee For Installment Agreement
• F SS-8 - Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding
• FinCEN F114 - Report of Foreign Bank and Financial Accounts

The following items are out of scope:

• Taxable refunds, credits, or offsets of state or local income taxes if for other than previous tax year
• Alimony received for pre-1985 divorces
• Other gains or losses (Form 4797)
• Farm income or loss
• Cancellation of debt other than nonbusiness credit card debt
• Rental, hobby, or other income when not for profit
• Net operating loss
• Foreign earned income exclusion
• Self-employed SEP, SIMPLE, and qualified plans
• Self-employed health insurance deduction for insurance purchased through Marketplace when taxpayer is eligible for Premium Tax Credit
• Alimony paid for pre-1985 divorces
• Nondeductible traditional IRA contributions

The following items are out of scope:

• Alternate minimum tax
• Uncollected social security and Medicare tax on wages
• Excess IRA contributions
• Household employment taxes
• Additional Medicare tax
• Net investment income tax
• Interest on tax due on installment income from the sale of certain residential lots and timeshares
• Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000
• Recapture of low-interest housing credit
• Recapture of federal mortgage subsidy
• Additional tax on Archer MSA distributions
• Additional tax on Medicare Advantage MSA distributions
• Recapture of a charitable contribution deduction related to a fractional interest in tangible personal property
• Income you received from a nonqualified deferred compensation plan that fails to meet the requirements of section 409A
• Compensation you received from a nonqualified deferred compensation plan described in section 457A
• Section 72(m)(5) excess benefits tax
• Golden parachute payments
• Tax on accumulation distribution of trusts
• Excise tax on insider stock compensation from an expatriated corporation
• Look-back interest under section 167(g) or 460(b) from Form 8697 or 8866
• Interest from for 8621, line 16f, relating to distributions from, and dispositions of, stock of a section 1291 fund
• Interest from Form 8621 line 24

The following items are out of scope:

• Form 1116
• Taxpayers who must repay part or all of an education credit claimed in a prior year
• General business credit (Form 3800)
• Credit for prior year minimum tax (Form 8801)
• Adoption credit (Form 8839)
• Alternate motor vehicle credit (Form 8910)
• Qualified plug-in motor vehicle credit (Form 8936)
• Mortgage interest credit (Form 8396)
• District of Columbia first-time homebuyer credit (Form 8911)
• Credit to holders of tax credit bonds (Form 8912)
• Form 8978
• Credit for federal tax on fuels

The following items are out of scope:

• Investment interest
• Taxpayers affected by a charitable contribution carryover
• Taxpayers affected by limits on charitable contributions
• Noncash charitable contribution exceeding $500 (Form 8283)
• Contributions of Motor Vehicles, Boats, and Airplanes (Form 1098-C)
• Donation of property previously depreciated
• Donation of capital gain property, such as securities or art work
• Casualty or theft loss

The following items are out of scope:

• Hobby income
• Professional gamblers
• Bartering
• Any transactions involving digital assets
• Method of accounting other than cash
• Taxpayers who do not materially participate in the business
• Payments made that require Form 1099 to be filed
• Returns and allowances
• Expenses
  
  • Cost of goods sold (inventory)
  • Total expenses over $35,000
  • Vehicle expenses reported as actual expenses
  • Contract labor
  • Depletion
  • Depreciation or when Form 4562 is required
  • Expenses for employees
  • Car rental or lease more than 30 days
  • Casualty loss
  • Amortization
  • Business use of home
• Net losses

The following items are out of scope:

• Sales of business property (Form 4797)
• Installment sales income (Form 6252)
• Notice to shareholder of undistributed long-term capital gains (Form 2439)
• Casualties and theft (Form 4684)
• Gains and losses from section 1256 contracts and straddles (Form 6781)
• Like-kind exchanges (Form 8824)
• Taxpayers who sold any assets other than stock, mutual funds, or a personal residence
• Taxpayers who trade in options, futures, or other commodities, whether or not they disposed of any during the year
• Taxpayers who have transactions using digital assets
• Determination of basis issues
• Worthless securities
• Reduced exclusion computations/determinations for 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 as rental property

The following items are out of scope:

• Rental income and expenses
• 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
• Form 8582, if volunteers are required to enter additional info
• Form 4562
• Taxpayers who are unable to provide an amount for depreciation
• Taxpayers who filed or need to file Form 1099

Income, deductions, and credits OTHER THAN the following are out of scope:

• Taxable and tax-exempt interest income
• Dividend and Qualified dividends income
• Net short- and long-term capital gains and losses
• Royalty income (Schedule E) with no associated expenses

The following item is out of scope:

• Ministers or church workers if special rules apply

The following schedules are out of scope:

• Schedule F - Profit or Loss from Farming
• Schedule H - Household Employment Taxes
• Schedule J - Income Averaging for Farmers and Fishermen
• Schedule Q - Quarterly Notice to Resident Interest Holder of REMIC Taxable Income of Net Loss Allocation