Important Announcements

TY2025 Announcements

Links to add to your Chromebook Bookmarks

Bookmark these links to your personal device and your Chromebook:

• Energy Credit QMID Web Source - Unofficial: QMID & Tax Credit Guides

• OBBBA Instructional Tips & Worksheets

  • No Tax on Tips - W-2 Worksheet - Self-Employed Worksheet

  • No Tax on Overtime - Worksheet

  • No Tax on NEW (2025) Car Loan Interest - Worksheet

• Maine Tax-Aide - Right-click to open in Incognito Window on your Chromebook 

• ME1 State Share - State-wide shared folder. Anyone with the link can view/contribute.

  • Requires a Google account to access (i.e. Username@gmail.com).

  • Everyone should have contributor access (can't delete anything).

  • Deletes can be requested through TCS@gmail.com or TCS@aarpfoundation.org.

• 2025 Site Activity Tracking Log electronic, fillable, with instructions

2026Mar02: Tax Training - Mid Year Update

Now that we’ve had a few weeks of Taxpayers, we’ve had a chance to work with the new tax law deductions and we’ve figured out a few things.  Also we’ve found that some of the TaxSlayer pages have been changed since training.  So, it seemed like it was a good time to send out an update.

Also, I updated the Chart of Deductions and Credit limits for TY 25.  I think this is handy if you’re doing quality review and are trying to figure out why the numbers are other than expected.

New Tax Law Issues

1. Overtime - The overtime we’ve seen on W2s has been in Box 14 marked as OT Prem or in one case OBBB OT.  Be aware that this is an information only box and does not carry through to the tax calculation.  Finish the W2, click Continue, then go to Deductions/ Additional Deductions/ Overtime.  Enter the overtime pay.  This should carry through to Schedule 1a and the return.

2. Tips - We have seen tips income show up in Box 7 on a W2.  Similar to Overtime, finish the W2 input and go to Deductions/ Additional Deductions/ Tips.  There are 2 options: click on Add Tip Employer to generate a box to be completed.

3. Vehicle Loan Interest - Before you input anything, go to the VIN decoder to check out the vehicle.  If it didn’t have final assembly in the US - like a Subaru - the interest deduction won’t apply.  For the VIN decoder go to Tax Aide Links/ Tax Prep and scroll down to the middle of the 2nd page under IRS.  By the way, this page has several very good links to the new tax law provisions. Input the VIN and scroll down to the bottom where it should list the car and the location of final assembly.

4. Enhanced Senior Deduction - This kicks in as soon as you key in an age over 65.  However, be aware, especially if you’re doing quality review, that there is an income based phase out of the $6000 deduction.  This starts at $75,000 for a Single filer and $150.000 MFJ.  As the AGI exceeds these limits, the $6000 is reduced.  This is all laid out on Schedule 1a.

5. Residential Energy Credits - Before you do anything else, look up the Qualified Manufacturer ID code (QMID).  Nancy Fish found a handy website rebate.blue/QMID that has codes for most of the major manufacturers. This includes windows, doors, heat pumps etc.  If it’s not there, Google the manufacturer name and QMID or you can contact the manufacturer or the installer.  Next make sure the equipment qualifies.  Go to Deductions/ Credits/ Residential Energy, Begin.

Click on the 1st question - this brings up the next item.  Click on that - this brings up the address - add address.  Then scroll down to Property list and click that.  This brings up the box that is your goal - easy, yes?  Click on the drop down list of items to find the water heater, boiler or heat pump your taxpayer has.  Input the net cost (total cost - Efficiency Maine rebates) and you’re good to go.  However, be aware that the energy credit is non refundable so if the taxpayer does not have enough tax liability, nothing will be gained.

6. Lump Sum Social Security - We have a lot of Maine retirees with MPERS in the Augusta area so we’ve seen a lot of Social Security statements with additional payouts for ‘24.  A few reminders:

• The amount paid as additional ‘24 Social Security is at the bottom left corner of the SSA 1099.

• The pink box at the top, Box 5, includes Social Security benefits paid for ‘25 and those for ‘24 paid in ‘25.

• You need last year’s return to do a Lump Sum SS calculation - either in hand or online.

• To do a Lump Sum SS calculation, click on the Lump Sum box near the bottom of the Social Security input page. 
  Fill out the form using last year’s Social Security numbers and AGI along with the data from this year’s SSA 1099.

Doing the Lump Sum input allows Tax Slayer to calculate the amount of the ‘24 SS that would have been taxable if it had been paid in ‘24 with the ‘24 AGI.  This amount of ’24 SS is then added to the ‘25 return along with the ‘25 only SS.  For many, especially higher income retirees, this may not make a difference.  But for lower income folks, it can save them money.  Once you’ve done a few of these, it’s easier to go ahead and key in all the data than to try and figure out if it’s worth the time.

Those are the high points of what we’ve learned over the last few weeks.  Let me know if you have any insights especially with tips or overtime that you’d like to share.  Meanwhile, keep up the good work.

Barbara Coriell

ME1 Training Specialist