Out of Scope Situations for VITA/TCE

The following are out of scope for this lesson. While this list may not be all inclusive, it is provided for your awareness only.

Schedule C with:

• Expenses over $10,000
• Return and allowances
• Cost of goods sold
• Other income
• Expenses for employees
• Business use of home
• Casualty losses
• Vehicle expenses reported as actual expenses
• Depreciation
• Rental or lease expenses—vehicle, machinery, and equipment leases of more than 30 days
• Accounting methods other than the cash method
• Net losses
• "No" on line G, or the taxpayer does not meet any of the tests of material participation, or is uncertain about materially participating in a business
• Taxpayers receive any credit card or similar payments that included amounts that are not includible in income
• If the taxpayer responds yes to Question F on Schedule C-EZ or Question I on Schedule C, indicating there is a requirement to file Forms 1099, the preparation of the Form 1040 is out of scope for the volunteer program.