Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income Workout

Out of Scope

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.

  • Taxpayers with income from the following sources reported on Form 1040:
    • Other gains/losses (line 14)
    • Farm income (line 18)
  • Taxpayers affected by the Additional Medicare Tax
  • Certain children with unearned income who must file Form 8615
  • Accrual method for reporting income
  • Taxpayers who buy or sell bonds between interest payment dates
  • Form 1099-INT, box labeled Specified private activity bond interest if AMT applies
  • Adjustments needed for amounts listed on Form 1099-OID, or if the taxpayer should have received Form 1099-OID but did not
  • Form 1099-DIV, boxes labeled Unrecap. Sec. 1250 gain, Section 1202 gain, Cash liquidation distributions, and Noncash liquidation distributions
  • State or local income tax refunds received during the current tax year for a year other than the previous tax year
  • Alimony/divorce agreements executed before 1985
  • Minister tax returns with parsonage/housing allowance