IRS VITA/TCE Advanced Certification
Questions And Answers
Maximum Foreign Income Exclusion (Changes to 2016) - Increased to $101,300
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Maximum Foreign Housing Exclusion (Changes to 2016) - Increased to $44.28 per day
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Modified Adjusted Gross (AGI) Limit (IRAs and Other Retirement Plans) - *Max IRA
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Deduction remains at $5,500, ($6500 if age 50 older)
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** If a taxpayer is covered by a retirement plan at work, the deduction for contributions to
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a traditional IRA is reduced (phased out) if the modified AGI is:
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**More than $98,000 but less than $118,000 for Married Filing Jointly taxpayers or
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Qualifying Widow(er) if both spouses are covered by a retirement plan.
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**More than $61,000 but less than $71,000 for a Single or Household or
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**Less than $10,000 for Married filing separately
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***For an IRA Contributor who is not covered by a workplace retirement plan and is
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Married to someone who is covered, the deduction is phased out if the couple's income
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is between $184,000 & $194,000
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Revenue Procedure 2016-47 (Changes to 2016 NEW IRA Self-Certification Procedure) -
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Explains a self-certification procedure designed to help recipients of retirement plan
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distributions who inadvertently miss the 60-day time limit for properly rolling these
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amounts into another retirement plan or individual retirement arrangement (IRA).
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Eligible taxpayers can qualify for a waiver of the 60-day time limit and avoid possible
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taxes and penalties on early distributions, if they meet certain circumstances.
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Taxpayers who missed the time limit will now ordinarily qualify for a waiver if one or
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more of 11 circumstances, listed in the revenue procedure, apply:
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**An error was committed by the financial institution making the distribution or receiving
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the contribution.
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**The distribution was in the form of a check and the check was misplaced and never
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cashed.
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**The distribution was deposited into and remained in an account that the taxpayer
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mistakenly thought was a retirement plan or IRA.
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**Taxpayer's principal residence was severely damaged. ui ui ui ui ui
One of the taxpayer's family members died.
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, **Taxpayer or a family member was seriously ill. ui ui ui ui ui ui ui
**Taxpayer was incarcerated. ui ui
**Restrictions were imposed by a foreign country. ui ui ui ui ui ui
**A postal error occurred.
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**The distribution was made on account of an IRS levy and the proceeds of the levy
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have been returned.
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**The party making the distribution delayed providing information that the receiving plan
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or IRA required to complete the rollover despite reasonable efforts to obtain the
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information.
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Standard & Itemized Deductions (Changes to 2016) - The standard deduction for
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taxpayers who do not itemize deductions on Form 1040, Schedule A, has increased.
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The standard deduction amounts for 2016 are:
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**Married Filing Jointly or Qualifying Widow(er) - $12,600 (no change)
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**Head of Household - $9,300 (increase of $50)*******
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**Single or Married Filing Separately - $6,300 (no change)
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Taxpayers who are 65 and Older or are Blind ui ui ui ui ui ui ui ui
For 2016, the additional standard deduction for taxpayers who are 65 and older or blind
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is:
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**Single or Head of Household - $1,550 (no change)
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**Married taxpayers or Qualifying Widow(er) - $1,250 (no change)
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Personal Exemptions (Changes to 2016) - The amount a taxpayer can deduct for each
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increased to $4,050 (Increase of $50)
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Standard Mileage (Changes to 2016) - The following rates are in effect:
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**54 cents per mile for business miles driven
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**19 cents per mile driven for medical or moving purposes
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**14 cents per mile driven in service of charitable organizations (no change)
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Eligible Long-Term Care Premium Limits (Changes to 2016) - The maximum amount of
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qualified long-term care premiums includible as medical expenses has increased.
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Qualified long-term care premiums, up to the amounts shown below, can be included as
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medical expenses on Form 1040, Schedule A, Itemized Deductions:
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$390 - age 40 or under
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$730 - age 41 to 50 ui ui ui ui ui
$1,460 - age 51 to 60 ui ui ui ui ui
$3,900 - age 61 to 70 ui ui ui ui ui
$4,850 - age 71 and over ui ui ui ui ui
Health Savings Account (HSA) Deduction (Changes to 2016) - The annual contribution
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limits on deductions for HSAs for individuals with self-only coverage is $3,350 (no
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change) and $6,750 for family coverage (increase of $100). There is an additional
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contribution amount for taxpayers who are age 55 or older.
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Questions And Answers
Maximum Foreign Income Exclusion (Changes to 2016) - Increased to $101,300
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Maximum Foreign Housing Exclusion (Changes to 2016) - Increased to $44.28 per day
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Modified Adjusted Gross (AGI) Limit (IRAs and Other Retirement Plans) - *Max IRA
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Deduction remains at $5,500, ($6500 if age 50 older)
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** If a taxpayer is covered by a retirement plan at work, the deduction for contributions to
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a traditional IRA is reduced (phased out) if the modified AGI is:
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**More than $98,000 but less than $118,000 for Married Filing Jointly taxpayers or
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Qualifying Widow(er) if both spouses are covered by a retirement plan.
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**More than $61,000 but less than $71,000 for a Single or Household or
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**Less than $10,000 for Married filing separately
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***For an IRA Contributor who is not covered by a workplace retirement plan and is
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Married to someone who is covered, the deduction is phased out if the couple's income
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is between $184,000 & $194,000
ui ui ui ui ui
Revenue Procedure 2016-47 (Changes to 2016 NEW IRA Self-Certification Procedure) -
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Explains a self-certification procedure designed to help recipients of retirement plan
ui ui ui ui ui ui ui ui ui ui ui
distributions who inadvertently miss the 60-day time limit for properly rolling these
ui ui ui ui ui ui ui ui ui ui ui ui
amounts into another retirement plan or individual retirement arrangement (IRA).
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Eligible taxpayers can qualify for a waiver of the 60-day time limit and avoid possible
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taxes and penalties on early distributions, if they meet certain circumstances.
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Taxpayers who missed the time limit will now ordinarily qualify for a waiver if one or
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more of 11 circumstances, listed in the revenue procedure, apply:
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**An error was committed by the financial institution making the distribution or receiving
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the contribution.
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**The distribution was in the form of a check and the check was misplaced and never
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cashed.
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**The distribution was deposited into and remained in an account that the taxpayer
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mistakenly thought was a retirement plan or IRA.
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**Taxpayer's principal residence was severely damaged. ui ui ui ui ui
One of the taxpayer's family members died.
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, **Taxpayer or a family member was seriously ill. ui ui ui ui ui ui ui
**Taxpayer was incarcerated. ui ui
**Restrictions were imposed by a foreign country. ui ui ui ui ui ui
**A postal error occurred.
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**The distribution was made on account of an IRS levy and the proceeds of the levy
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have been returned.
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**The party making the distribution delayed providing information that the receiving plan
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or IRA required to complete the rollover despite reasonable efforts to obtain the
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information.
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Standard & Itemized Deductions (Changes to 2016) - The standard deduction for
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taxpayers who do not itemize deductions on Form 1040, Schedule A, has increased.
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The standard deduction amounts for 2016 are:
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**Married Filing Jointly or Qualifying Widow(er) - $12,600 (no change)
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**Head of Household - $9,300 (increase of $50)*******
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**Single or Married Filing Separately - $6,300 (no change)
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Taxpayers who are 65 and Older or are Blind ui ui ui ui ui ui ui ui
For 2016, the additional standard deduction for taxpayers who are 65 and older or blind
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is:
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**Single or Head of Household - $1,550 (no change)
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**Married taxpayers or Qualifying Widow(er) - $1,250 (no change)
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Personal Exemptions (Changes to 2016) - The amount a taxpayer can deduct for each
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increased to $4,050 (Increase of $50)
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Standard Mileage (Changes to 2016) - The following rates are in effect:
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**54 cents per mile for business miles driven
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**19 cents per mile driven for medical or moving purposes
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**14 cents per mile driven in service of charitable organizations (no change)
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Eligible Long-Term Care Premium Limits (Changes to 2016) - The maximum amount of
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qualified long-term care premiums includible as medical expenses has increased.
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Qualified long-term care premiums, up to the amounts shown below, can be included as
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medical expenses on Form 1040, Schedule A, Itemized Deductions:
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$390 - age 40 or under
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$730 - age 41 to 50 ui ui ui ui ui
$1,460 - age 51 to 60 ui ui ui ui ui
$3,900 - age 61 to 70 ui ui ui ui ui
$4,850 - age 71 and over ui ui ui ui ui
Health Savings Account (HSA) Deduction (Changes to 2016) - The annual contribution
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limits on deductions for HSAs for individuals with self-only coverage is $3,350 (no
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change) and $6,750 for family coverage (increase of $100). There is an additional
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contribution amount for taxpayers who are age 55 or older.
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