CyberTax TY2020-05 VTA 2021-04 Publication 4012 Update

AARP Foundation Tax-Aide CyberTax
February 18, 2021

To: All AARP Foundation Tax-Aide Volunteers (with a valid email address in the Volunteer Portal)
From: Lynnette Lee-Villanueva, VP and National Director, AARP Foundation Tax-Aide
Subject: CyberTax TY2020-05: VTA 2021-04 Publication 4012 Update       

Please be aware that the IRS has published Volunteer Tax Alert (VTA) 2021-04 on updates to Publication 4012. Click here to view the full Alert.

The Publication 4012 (Rev. 1-2021) now includes changes due to Consolidated Appropriations Act, 2021, signed into law on December 27, 2020. This includes information about:

  • Economic Impact Payments
  • Recovery rebate credits
  • Educator expense deduction
  • Election to use 2019 earned income to figure the 2020 earned income credit and additional child tax credit
  • Other updates

There were additional topics added to scope:

  • Form 8615, Tax for Certain Children Who Have Unearned Income (also known as Kiddie Tax), requires Advanced certification and is limited to:
    • Native Americans receiving per capita payments
    • Alaska residents receiving permanent fund dividends
  • Form 8814, Parent’s Election to Report Child’s Interest and Dividends, requires Advanced certification and is limited to:
    • Alaska residents receiving permanent fund dividends
  • Three-year spread of coronavirus-related distributions from eligible retirement plans, as well as special rollover rules with respect to such distributions, to qualified individuals. Advanced certification is required.

Updated TaxSlayer screenshots were added for:

  • Form 1099-NEC, Non-Employee Compensation
  • Schedule SE Deferral
  • Form 5329, Part I – Additional Tax on Early Distributions
  • Form 7202, Credits for Sick Leave & Family Leave

The updated version of Publication 4012 also includes other changes not listed here.

As part of the Tax-Aide program, information including the latest updates and program guidance is regularly sent via email to all volunteers. Please click here if you are not a volunteer in the Tax-Aide program and therefore should be deleted from receiving further emails. If you are a Tax-Aide volunteer with a question, please first contact your volunteer supervisor or members of your volunteer leadership team. Replying to this email puts your response directly into Tax-Aide’s National Office ticketing system.

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