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.

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