2016 Limitations

of The Benefit Bank

federal tax section


The Benefit Bank supports the tax return situations that are most common in low- and moderate-income households. This does not include more complicated self-employment situations (Schedule C), capital gains and losses (Schedule D), rental and royalty income (Schedule E), farm income (Schedule F), and shareholder/partnership income or loss (Schedule K-1).

Before you begin, please review the forms that The Benefit Bank supports, as well as situations that may limit your ability to use The Benefit Bank.

If you have a unique tax situation that you think The Benefit Bank might not support but is not listed here, please contact the Help Desk for assistance.

Common General Limitations

You cannot use The Benefit Bank if:

  • your household adjusted gross income (AGI) is higher than $65,000 for single filers or $95,000 for joint filers;
  • you are a dual-status or non-resident alien;
  • you need to file an amended return;
  • you have to make a payment for penalty for underpayment of estimated tax;
  • you have to make an alternative minimum tax payment;
  • you have Health Insurance Marketplace coverage and are claiming one or more dependents who also have Health Insurance Marketplace coverage under another tax filer's policy;
  • you are filing as an executor (or Power of Attorney) for a deceased taxpayer. The Benefit bank does not support returns in which the primary taxpayer is deceased. However, The Benefit Bank does support Qualifying Widow(er)s and taxpayers filing Married Filing Jointly with a deceased spouse.

Common Home and Household Limitations

You cannot use The Benefit Bank if:

  • you need to repay a First-Time Homebuyer Credit;
  • you have to make household employment tax payments;
  • you paid mortgage interest and want to take a deduction, but you did not receive Form 1098;
  • you made energy saving improvements to your home this tax year, and want to take residential energy credits;
  • you adopted a child this tax year, and want to claim a credit or income exclusion for the expenses of the adoption.

You can only file your state taxes with The Benefit Bank if you lived in North Carolina, Ohio, Pennsylvania, South Carolina, or Virginia as of December 31 of the tax year.

Common Retirement Limitations

You cannot use The Benefit Bank if:

  • you received a Form 1099-R (Pensions, Annuities, IRAs and Insurance Contracts) with information in a box The Benefit Bank does not support (see the Complete List of Forms We Support below for a list of boxes that are not supported);
  • you are age 70 1/2 or older, retired, and do not take a minimum distribution from your retirement plan;
  • you received a form SSA-1099 that reports lump-sum benefits for a previous tax year that were paid in the current tax year and you want to choose the lump-sum election to report the taxable amount;
  • you are a retired public safety officer who received distributions from your eligible retirement plan, either because of disability or because you reached normal retirement age, and you want to exclude premiums from your income that were paid for an accident or health plan or for a long-term care insurance contract. In order to deduct these premiums from the taxable portion of your distribution, they must have been made directly from the retirement plan to the provider of the insurance plan or contract.

Common Business Limitations

You cannot use The Benefit Bank if:

  • you received a Form 1099-MISC (Miscellaneous Income) with information in a box The Benefit Bank does not support (see the Complete List of Forms We Support below for a list of boxes that are not supported);
  • you have moving expenses related to starting work at a new job and want to claim a deduction for these expenses;
  • your business expenses are greater than $5,000;
  • you have more than one business or professional activity.

Common Investment Income Limitations

You cannot use The Benefit Bank if:

  • you received a Form 1099-INT (Interest Income) with information in a box The Benefit Bank does not support (see the Complete List of Forms We Support below for a list of boxes that are not supported);
  • you received a Form 1099-DIV (Dividends and Distributions) with information in a box The Benefit Bank does not support (see the Complete List of Forms We Support below for a list of boxes that are not supported);
  • you have capital gains or losses, such as from selling investments or real estate, or received either of the following forms:
    * Form 1099-B, Proceeds from Broker and Barter Exchange Transactions;
    * Form 1099-S, Proceeds from Real Estate Transactions;
  • you received excludable interest from series EE and I U.S. Savings bonds;
  • you want to report your child's interest and dividend income on your tax return.

Other Common Limitations

You cannot use The Benefit Bank if:

  • you made deductible contributions to MSA, SEP, SIMPLE;
  • you received a Form 1099-G (Certain Government Payments) with information in a box The Benefit Bank does not support (see the Complete List of Forms We Support below for a list of boxes that are not supported);
  • you have income from rental real estate, leasing land or other property (e.g. fracking income), estates, trusts, partnerships, royalties, S corporations, and REMICs;
  • you received a Form 1098-T (Tuition Statement) with information in a box The Benefit Bank does not support (see the Complete List of Forms We Support below for a list of boxes that are not supported);
  • one of your dependents received Form 1095-A: Health Insurance Marketplace Statement as the primary taxpayer on the form;
  • you made excess contributions to an ABLE account in 2016 or some or all of your ABLE account distributions were not used for qualified disability expenses;
  • you received foreign income in 2016 and would like to claim the foreign tax credit or take a deduction for the amount of foreign tax you paid;
  • you received a 1099-Q (Payments from Qualified Education Programs) reporting a distribution of payments made to you for educational purposes, but you used some or all of the amount for purposes other than qualified educational expenses.

Complete List of Forms We Support

Reporting Forms

The following is a list of income and expense reporting forms that you can use to prepare your taxes in The Benefit Bank. If you have these types of income or expenses, the forms would have been mailed to you in January for use on your tax return. Some of these forms have boxes or codes that we do not support. If you received a reporting form that is not on this list, then you cannot use The Benefit Bank.

Reporting Form Name Unsupported Items
Form 1095-A: Health Insurance Marketplace Statement  
Form 1095-B: Health Coverage  
Form 1095-C: Employer Provided Health Insurance Offer and Coverage  
Form 1098: Mortgage Interest Statement  
Form 1098-E: Student Loan Interest Statement  
Form 1098-T: Tuition and Fees Statement Boxes 4 and 6
Form 1099-C: Cancellation of Debt Box 6: Code A, B, or D

Any situation involving cancelled debt from qualified principal residence indebtedness (main home foreclosure, repossession, abandonment or loan modification), qualified real property business indebtedness, title 11 bankruptcy, or insolvency (total liabilities are greater than total assets)

Any situation involving cancelled debt that is not taxable
Form 1099-DIV: Dividends and Distributions Boxes 2b, 2c, 2d, 8, 9, and 11
Form 1099-INT: Interest Income Boxes 6, 7, 10, 11, 12, and 13
Form 1099-G: Government Payments Boxes 5, 7
Form 1099-MISC: Miscellaneous Income Boxes 1, 2, 8, 9, 10, 13, 14, 15a, and 15b
Form 1099-OID: Original Issue Discount Boxes 5, 6, and 10
Form 1099-R: Distributions from Pensions, Annuities, and other Retirement Plans Boxes 6 and Box 7: Code 5, Code F, Code P, or Code W
Form 1099-SA: Distributions From an HSA Box 3: Code 4 or Code 6, and Box 4
Form 4852: Substitute for Form W-2 or Form 1099-R  
Form CSA-1099-R or CSF-1099-R: Statement for U.S. Civil Service Retirement Benefits  
Form SSA-1099: Social Security Benefit Statement  
Form RRB-1099 or RRB-1099-R: Railroad Retirement Board Statement  
Form W-2: Wage and Tax Statement Box 8 and Box 12: Code P, Code R, Code T, Code V, or Code Z
Form W-2G: Certain Gambling Winnings  
Form 5498: IRA Contribution Information  

Tax Return Forms

The following is a list of tax return forms and schedules that The Benefit Bank supports, which you can print out at the end of our Federal Taxes section. Some of these forms or schedules have lines or sections that we do not support. If you require a form or schedule with your tax return that is not listed on this page, then you cannot use The Benefit Bank.

Tax Return Form Name Unsupported Items
Form 1040: U.S. Individual Income Tax Return

(Note: Form 1040 can be used in place of Form 1040EZ or Form 1040A)
Income: Lines 13, 14, 17, 18
Adjusted Gross Income: Lines 26, 28, 35
Tax and Credits: Lines 44a, 44c, 45, 48, 53, 54
Other Taxes: Lines 58, 60a, 60b, 62
Payments: Lines 71, 72, 73
Estimated Tax Penalty: Line 79
Form 1040-V: Payment Voucher  
Schedule A: Itemized Deductions Lines 8, 11, 12, 14, 18, 23, and 28 (except gambling losses and impairment related work expenses)
Schedule B: Interest and Ordinary Dividends Line 3
Schedule C-EZ: Net Profit From Business  
Schedule EIC: Earned Income Credit  
Schedule R: Credit for the Elderly or Disabled  
Schedule SE: Self-Employment Tax Lines 1a and 1b

Section B
Schedule 8812: Additional Child Tax Credit  
Form 2106: Employee Business Expenses Lines 24b, 28, and Section D

Expenses for more than two vehicles
Form 2441: Child and Dependent Care Expenses  
Form 4684: Casualty and Theft Loss Section B and Section C
Form 4972: Tax on Lump-Sum Distributions  
Form 5329: Additional Taxes on Qualified Plans and Tax-Favored Accounts Parts II, III, IV, V, VI, and VIII
Form 8396: Mortgage Interest Credit  
Form 8606: Nondeductible IRAs  
Form 8862: Information to Claim Earned Income Credit After Disallowance  
Form 8863: Education Credits  
Form 8880: Credit for Qualified Retirement Savings Contributions  
Form 8888: Direct Deposit of Refund  
Form 8889: Health Savings Accounts Lines 10, 18, and 19
Form 8917: Tuition and Fees Deduction  
Form 8919: Uncollected Social Security and Medicare Tax on Wages  
Form 8958: Allocation of Tax Amounts Between Certain Individuals in Community Property States Line 8
Form 8962: Premium Tax Credit Parts 4 and 5
Form 8965: Health Coverage Exemptions  
Form SS-8: Determination of Worker Status  

Common Forms We Do Not Support

The following is a list of common reporting forms that The Benefit Bank does not support. If you have one of these reporting forms, then you cannot use The Benefit Bank.

Reporting Form Name
Form 1099-A: Acquisition or Abandonment of Secured Property
Form 1099-B: Proceeds from Broker and Barter Exchange Transactions
Form 1099-S: Proceeds from Real Estate Transactions

The following is a list of common tax return forms and schedules that The Benefit Bank does not support. If you require one of these forms or schedules to be included with your tax return, then you cannot use The Benefit Bank.

Tax Return Form Name
Schedule C: Profit or Loss From Business
Schedule D: Capital Gains and Losses
Schedule E: Supplemental Income and Loss
Schedule F: Profit or Loss From Farming
Schedule H: Household Employment Taxes
Form 1040X: Amended Tax Return
Form 1040ES: Estimated Tax for Individuals
Form 2210: Underpayment of Estimated Tax
Form 3903: Moving Expenses
Form 5405: First Time Homebuyer Credit
Form 5695: Residential Energy Credits
Form 6251: Alternative Minimum Tax
Form 8949: Sales and Other Dispositions of Capital Assets
Form 982: Reduction of Tax Attributes Due to Discharge of Indebtedness