Academics

Tax Preparation Limitations

 

VITA Free Tax Preparation for Qualified Taxpayers


Filling Status Limitations

  • Married filing separate

  • Active duty military

  • Ministers and other members of clergy

  • Taxpayers who may qualify for an exception to the 3-year time limit for claiming a refund

  • Nonresident aliens who do not meet the green card or substantial presence test and aren’t married to a US citizen or resident alien

  • Spouses who may be relieved of joint liability

  • Individuals subject to the additional Medicare tax

  • Individuals subject to the net investment income tax

  • Taxpayers with Mortgage Credit Certificate

  • Taxpayers who reside in a state with community property tax laws that allow married taxpayers to file a separate return from their spouse

Foreign Students

  • Foreign students with visas other than F, J, M, or Q

  • Individuals with dual-status

  • Income earned from:
    • 1099-MISC

    • Self-employment

    • Gambling

    • Rent and royalty

  • Form 1116 – Foreign Tax Credit

Forms

  • Form 709 – United States Gift Tax Return

  • Form 1127 – Application for Extension of Time for Payment of Tax Due to Undue Hardship

  • Form 2210 – Underpayment of Estimated Tax

  • Form 2439 – Notice to Shareholder of Undistributed Long-Term Capital Gains

  • Form 4562 – Depreciation and Amortization

  • Form 5329 (Part II – IX) – Additional taxes on Qualified Plans

  • Form 5405 – Repayment of the First-Time Homebuyer Credit

  • Form 8582 – Passive Activity Loss Limitations

  • Form 8834 – Qualified Electric Vehicle Credit

  • Form 8839 – Qualified Adoption Expenses

  • Form 8843 (Part IV – V) – Statement for Exempt Individuals and Individuals with a Medical Condition

  • Form 8885 – Health Coverage Tax Credit

  • Form 8908 – Energy Efficient Home Credit

  • Form 8910 – Alternative Motor Vehicle Credit

  • Form 8919 – Uncollected Social Security and Medicare Tax on Wages

  • Form 8962 (Part IV – V) – Premium Tax Credit

Income

  • Income must be less than $56,000

  • Foreign earned income

  • Real estate rental property (AirBnB)

  • Schedule K-1s (forms 1065, 1120S, 1041)

  • Form 1099-R with Box 7 code 5, 6, 8, 9, A, E, J, K, N, P, R, T, U, or W

  • Farm income (or loss)

  • Taxpayers who are insolvent and had debt canceled

  • Alimony/divorce agreements executed before 1985

  • Taxable Roth IRA distributions

  • Publicly traded partnership income

  • Form 8615 – Tax for Certain Children who have Unearned Income

Adjustments to Income

  • Self-employed SEP, SIMPLE, and qualified plans

  • Form 8606 - Nondeductible IRAs

Taxes

  • Alternative minimum tax

  • Household employment taxes

  • Additional tax due to excess IRA contributions

  • Parts II through VIII of Form 5329 – Additional Taxes on Qualified Plans

Schedule C

Businesses involving:

  • Net operating loss

  • Business use of home

  • Hobby income

  • Professional gamblers

  • Any transactions involving virtual currency

  • Accrual method of accounting

  • Taxpayers who don’t materially participate in the business

  • Income from the manufacture, distribution, or business of controlled substances (marijuana)

Expenses with:

  • Total expenses over $25,000

  • Actual expenses for vehicles

  • Employees or independent contractors

  • Inventory

  • Returns and allowances

  • Cost of goods sold

  • Rental or lease expenses—vehicle, machinery, and equipment leases of more than 30 days

  • Depreciation or depletion

  • Fringe benefits for employees

Schedule D

  • Selling any assets other than stock, mutual funds, or a personal residence

  • Trade in options, futures, virtual currency (Bitcoin), or other commodities

  • Like-kind exchanges and worthless securities

  • Sale of home used for business purposes or as rental property

Itemized Deductions

  • Investment interest

  • Taxpayers affected by a charitable contribution carryover

  • Taxpayers affected by limits on charitable deductions

  • Form 8283 – Noncash contribution exceeding $500

  • Donation of depreciated property and capital gain property

  • Casualty or theft losses

Cancellation of Debt

  • Interest included on Form 1099-C

  • Taxpayer filed bankruptcy or was insolvent immediately before the debt was canceled

  • Mortgage taken out for expenses not pertaining to the home

  • Mortgage not secured by principal residence

  • Mortgage amount over $2 million

  • Principal residence used in business or as rental property

  • Nonbusiness credit card debt

Disclaimer

We are unable to serve taxpayers who cannot substantiate their identity by providing their Social Security cards or Individual Taxpayer Identification Number (ITIN). While this list may not be inclusive, it is for your awareness only and is not limited to the items listed.