Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

2010 Federal Tax Form

1040ez Tax InstructionsFile State Tax OnlyFree Federal State Tax FilingFiling For Taxes As A StudentTax PreparationHow To Do Military TaxesAmend A ReturnOnline 1040 EzTaxact 2010 Free VersionIncome Tax Return 20142010 Form 1040 EzIrs Form 1040x 2013 Tax ReturnIrs 1040 Ez1040 Schedule A Tax Form1040x Filing InstructionsCan I File My 2012 TaxesAmend TaxFederal 1040ez 20132011 1040 Tax FormIrsE File State Taxes Free OnlineCan You Refile Your TaxesForm 1040 VHow To Fill Out 1040ez 2012How Do I File My 2012 Taxes OnlineFree FileFree 1040 Tax ReturnIrs Forms 2009Filing State Taxes Free OnlineFree TaxcutFederal Tax Form 1040a1040a 2011 Tax FormAmended Tax Form 1040xH&r Block Free Tax File2012 Income Tax ReturnMy Free Taxes.comFree Tax Filing Federal And StateFiling An Amended Tax ReturnFederal1040x AmendmentTurbotax 2011 Edition

2010 Federal Tax Form

2010 federal tax form 19. 2010 federal tax form   Education- Related Adjustments Table of Contents Introduction Useful Items - You may want to see: Student Loan Interest DeductionStudent Loan Interest Defined Can You Claim the Deduction How Much Can You Deduct How Do You Figure the Deduction Tuition and Fees DeductionCan You Claim the Deduction What Expenses Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses How Much Can You Deduct Educator Expenses Introduction This chapter discusses the education-related adjustment you can deduct in figuring your adjusted gross income. 2010 federal tax form This chapter covers the student loan interest deduction, tuition and fees deduction, and the deduction for educator expenses. 2010 federal tax form Useful Items - You may want to see: Publication 970 Tax Benefits for Education Student Loan Interest Deduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. 2010 federal tax form However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. 2010 federal tax form For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. 2010 federal tax form This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. 2010 federal tax form Table 19-1 summarizes the features of the student loan interest deduction. 2010 federal tax form Table 19-1. 2010 federal tax form Student Loan Interest Deduction at a Glance Do not rely on this table alone. 2010 federal tax form Refer to the text for more details. 2010 federal tax form Feature Description Maximum benefit You can reduce your income subject to tax by up to $2,500. 2010 federal tax form Loan qualifications Your student loan: •  must have been taken out solely to pay qualified education expenses, and   • cannot be from a related person or made under a qualified employer plan. 2010 federal tax form Student qualifications The student must be: • you, your spouse, or your dependent, and   • enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. 2010 federal tax form Time limit on deduction You can deduct interest paid during the remaining period of your student loan. 2010 federal tax form Phaseout The amount of your deduction depends on your income level. 2010 federal tax form Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. 2010 federal tax form It includes both required and voluntary interest payments. 2010 federal tax form Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent (defined in chapter 3) when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period when the student is an eligible student. 2010 federal tax form Loans from the following sources are not qualified student loans. 2010 federal tax form A related person. 2010 federal tax form A qualified employer plan. 2010 federal tax form Exceptions. 2010 federal tax form   For purposes of the student loan interest deduction, the following are exceptions to the general rules for dependents. 2010 federal tax form An individual can be your dependent even if you are the dependent of another taxpayer. 2010 federal tax form An individual can be your dependent even if the individual files a joint return with a spouse. 2010 federal tax form An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). 2010 federal tax form    Reasonable period of time. 2010 federal tax form   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. 2010 federal tax form   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. 2010 federal tax form The expenses relate to a specific academic period. 2010 federal tax form The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. 2010 federal tax form   If neither of the above situations applies, the reasonable period of time is determined based on all the relevant facts and circumstances. 2010 federal tax form Academic period. 2010 federal tax form   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. 2010 federal tax form In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. 2010 federal tax form Eligible student. 2010 federal tax form   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. 2010 federal tax form Enrolled at least half-time. 2010 federal tax form   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. 2010 federal tax form   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. 2010 federal tax form However, the standard may not be lower than any of those established by the U. 2010 federal tax form S. 2010 federal tax form Department of Education under the Higher Education Act of 1965. 2010 federal tax form Related person. 2010 federal tax form   You cannot deduct interest on a loan you get from a related person. 2010 federal tax form Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. 2010 federal tax form ), Your lineal descendants (children, grandchildren, etc. 2010 federal tax form ), and Certain corporations, partnerships, trusts, and exempt organizations. 2010 federal tax form Qualified employer plan. 2010 federal tax form   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. 2010 federal tax form Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. 2010 federal tax form They include amounts paid for the following items. 2010 federal tax form Tuition and fees. 2010 federal tax form Room and board. 2010 federal tax form Books, supplies, and equipment. 2010 federal tax form Other necessary expenses (such as transportation). 2010 federal tax form The cost of room and board qualifies only to the extent that it is not more than: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or If greater, the actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. 2010 federal tax form Eligible educational institution. 2010 federal tax form   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. 2010 federal tax form S. 2010 federal tax form Department of Education. 2010 federal tax form It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2010 federal tax form   Certain educational institutions located outside the United States also participate in the U. 2010 federal tax form S. 2010 federal tax form Department of Education's Federal Student Aid (FSA) programs. 2010 federal tax form   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. 2010 federal tax form   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. 2010 federal tax form The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. 2010 federal tax form    The educational institution should be able to tell you if it is an eligible educational institution. 2010 federal tax form Adjustments to qualified education expenses. 2010 federal tax form   You must reduce your qualified education expenses by certain tax-free items (such as the tax-free part of scholarships and fellowships). 2010 federal tax form See chapter 4 of Publication 970 for details. 2010 federal tax form Include as Interest In addition to simple interest on the loan, certain loan origination fees, capitalized interest, interest on revolving lines of credit, and interest on refinanced student loans can be student loan interest if all other requirements are met. 2010 federal tax form Loan origination fee. 2010 federal tax form   In general, this is a one-time fee charged by the lender when a loan is made. 2010 federal tax form To be deductible as interest, the fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. 2010 federal tax form A loan origination fee treated as interest accrues over the life of the loan. 2010 federal tax form Capitalized interest. 2010 federal tax form    This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. 2010 federal tax form Interest on revolving lines of credit. 2010 federal tax form   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. 2010 federal tax form See Qualified Education Expenses , earlier. 2010 federal tax form Interest on refinanced student loans. 2010 federal tax form   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. 2010 federal tax form If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. 2010 federal tax form Voluntary interest payments. 2010 federal tax form   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. 2010 federal tax form Do Not Include as Interest You cannot claim a student loan interest deduction for any of the following items. 2010 federal tax form Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. 2010 federal tax form Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. 2010 federal tax form Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. 2010 federal tax form For more information, see Student Loan Repayment Assistance in chapter 5 of Publication 970. 2010 federal tax form Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. 2010 federal tax form Your filing status is any filing status except married filing separately. 2010 federal tax form No one else is claiming an exemption for you on his or her tax return. 2010 federal tax form You are legally obligated to pay interest on a qualified student loan. 2010 federal tax form You paid interest on a qualified student loan. 2010 federal tax form Interest paid by others. 2010 federal tax form   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. 2010 federal tax form See chapter 4 of Publication 970 for more information. 2010 federal tax form No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, home mortgage interest). 2010 federal tax form How Much Can You Deduct Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. 2010 federal tax form However, the amount determined above is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). 2010 federal tax form You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). 2010 federal tax form For details on figuring your MAGI, see chapter 4 of Publication 970. 2010 federal tax form How Do You Figure the Deduction Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the Form 1040 or Form 1040A instructions. 2010 federal tax form However, if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1 in chapter 4 of Publication 970. 2010 federal tax form To help you figure your student loan interest deduction, you should receive Form 1098-E, Student Loan Interest Statement. 2010 federal tax form Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. 2010 federal tax form For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. 2010 federal tax form Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. 2010 federal tax form However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. 2010 federal tax form For information on allocating payments between interest and principal, see chapter 4 of Publication 970. 2010 federal tax form To claim the deduction, enter the allowable amount on Form 1040, line 33, or Form 1040A, line 18. 2010 federal tax form Tuition and Fees Deduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). 2010 federal tax form You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. 2010 federal tax form The qualified expenses must be for higher education, as explained later under What Expenses Qualify . 2010 federal tax form The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. 2010 federal tax form Table 19-2 summarizes the features of the tuition and fees deduction. 2010 federal tax form You may be able to take a credit for your education expenses instead of a deduction. 2010 federal tax form You can choose the one that will give you the lower tax. 2010 federal tax form See chapter 35, Education Credits, for details about the credits. 2010 federal tax form Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. 2010 federal tax form Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. 2010 federal tax form You paid qualified education expenses of higher education in 2013 for academic periods beginning in 2013 and those beginning in the first three months of 2014. 2010 federal tax form You paid the education expenses for an eligible student. 2010 federal tax form The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption (defined in chapter 3) on your tax return. 2010 federal tax form Qualified education expenses are defined under What Expenses Qualify . 2010 federal tax form Eligible students are defined later under Who Is an Eligible Student . 2010 federal tax form Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. 2010 federal tax form Your filing status is married filing separately. 2010 federal tax form Another person can claim an exemption for you as a dependent on his or her tax return. 2010 federal tax form You cannot take the deduction even if the other person does not actually claim that exemption. 2010 federal tax form Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). 2010 federal tax form You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. 2010 federal tax form More information on nonresident aliens can be found in Publication 519, U. 2010 federal tax form S. 2010 federal tax form Tax Guide for Aliens. 2010 federal tax form You or anyone else claims an American opportunity or lifetime learning credit in 2013 with respect to expenses of the student for whom the qualified education expenses were paid. 2010 federal tax form However, a state tax credit will not disqualify you from claiming a tuition and fees deduction. 2010 federal tax form Table 19-2. 2010 federal tax form Tuition and Fees Deduction at a Glance Do not rely on this table alone. 2010 federal tax form Refer to the text for more details. 2010 federal tax form Question   Answer What is the maximum benefit?   You can reduce your income subject to tax by up to $4,000. 2010 federal tax form Where is the deduction taken?   As an adjustment to income on Form 1040, line 34, or Form 1040A, line 19. 2010 federal tax form For whom must the expenses be paid?   A student enrolled in an eligible educational institution who is either: you, your spouse, or your dependent for whom you claim an exemption. 2010 federal tax form What tuition and fees are deductible?   Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. 2010 federal tax form What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. 2010 federal tax form Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period (defined earlier under Student Loan Interest Deduction ) beginning in 2013 or in the first 3 months of 2014. 2010 federal tax form Payments with borrowed funds. 2010 federal tax form   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. 2010 federal tax form Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. 2010 federal tax form Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. 2010 federal tax form Student withdraws from class(es). 2010 federal tax form   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. 2010 federal tax form Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. 2010 federal tax form Eligible educational institution. 2010 federal tax form   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. 2010 federal tax form S. 2010 federal tax form Department of Education. 2010 federal tax form It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2010 federal tax form The educational institution should be able to tell you if it is an eligible educational institution. 2010 federal tax form   Certain educational institutions located outside the United States also participate in the U. 2010 federal tax form S. 2010 federal tax form Department of Education's Federal Student Aid (FSA) programs. 2010 federal tax form Academic period. 2010 federal tax form    An academic period is any quarter, semester, trimester, or any other period of study as reasonably determined by an eligible educational institution. 2010 federal tax form If an eligible educational institution uses credit hours and does not have academic terms, each payment period may be treated as an academic period. 2010 federal tax form Related expenses. 2010 federal tax form   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses for the tuition and fees deduction only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. 2010 federal tax form Prepaid expenses. 2010 federal tax form   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring the tuition and fees deduction. 2010 federal tax form See Academic period, earlier. 2010 federal tax form For example, if you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring the tuition and fees deduction for 2013 only if you meet all the other requirements. 2010 federal tax form    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 tuition and fees deduction. 2010 federal tax form No Double Benefit Allowed You cannot do any of the following. 2010 federal tax form Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. 2010 federal tax form Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. 2010 federal tax form Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). 2010 federal tax form For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. 2010 federal tax form See Figuring the Taxable Portion of a Distribution in chapter 7 (Coverdell ESA) and chapter 8 (QTP) of Publication 970. 2010 federal tax form Deduct qualified education expenses that have been paid with tax-free interest on U. 2010 federal tax form S. 2010 federal tax form savings bonds (Form 8815). 2010 federal tax form See Figuring the Tax-Free Amount in chapter 10 of Publication 970. 2010 federal tax form Deduct qualified education expenses that have been paid with tax-free educational assistance such as a scholarship, grant, or employer-provided educational assistance. 2010 federal tax form See Adjustments to qualified education expenses, later. 2010 federal tax form Adjustments to qualified education expenses. 2010 federal tax form   For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. 2010 federal tax form The result is the amount of adjusted qualified education expenses for each student. 2010 federal tax form Tax-free educational assistance. 2010 federal tax form   For tax-free educational assistance you received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance to that academic period. 2010 federal tax form See Academic period, earlier. 2010 federal tax form   This includes: The tax-free part of scholarships and fellowships, including Pell grants (see chapter 1 of Publication 970), The tax-free part of any employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2010 federal tax form Generally, any scholarship or fellowship you receive is treated as tax-free educational assistance. 2010 federal tax form However, a scholarship or fellowship is not treated as tax-free educational assistance to the extent you include it in gross income (if you are required to file a tax return) for the year the scholarship or fellowship is received and either: The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. 2010 federal tax form 970, chapter 1. 2010 federal tax form The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. 2010 federal tax form 970, chapter 1. 2010 federal tax form You may be able to increase the combined value of your tuition and fees deduction and certain educational assistance if you include some or all of the educational assistance in income in the year it is received. 2010 federal tax form For details, see Adjustments to Qualified Education Expenses in chapter 6 of Pub. 2010 federal tax form 970. 2010 federal tax form Some tax-free educational assistance received in 2013 may be treated as a refund of qualified education expenses paid in 2013. 2010 federal tax form This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). 2010 federal tax form If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed, later. 2010 federal tax form If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed, later. 2010 federal tax form Refunds. 2010 federal tax form   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or may require you to include some or all of the refund in your gross income for the year the refund is received. 2010 federal tax form See chapter 6 of Pub. 2010 federal tax form 970 for more information. 2010 federal tax form Some tax-free educational assistance received after 2013 may be treated as a refund. 2010 federal tax form See Tax-free educational assistance, earlier. 2010 federal tax form Refunds received in 2013. 2010 federal tax form    For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses paid in 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. 2010 federal tax form Refunds received after 2013 but before your income tax return is filed. 2010 federal tax form   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received before you file your 2013 income tax return, reduce the amount of qualified education expenses for 2013 by the amount of the refund. 2010 federal tax form Refunds received after 2013 and after your income tax return is filed. 2010 federal tax form   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received after you file your 2013 income tax return, you may need to include some or all of the refund in your gross income for the year the refund is received. 2010 federal tax form See chapter 6 of Pub. 2010 federal tax form 970 for more information. 2010 federal tax form Coordination with Coverdell education savings accounts and qualified tuition programs. 2010 federal tax form    Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). 2010 federal tax form For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. 2010 federal tax form Amounts that do not reduce qualified education expenses. 2010 federal tax form   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. 2010 federal tax form   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. 2010 federal tax form The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses. 2010 federal tax form The use of the money is not restricted. 2010 federal tax form Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. 2010 federal tax form This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. 2010 federal tax form Sports, games, hobbies, and noncredit courses. 2010 federal tax form   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. 2010 federal tax form However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. 2010 federal tax form Comprehensive or bundled fees. 2010 federal tax form   Some eligible educational institutions combine all of their fees for an academic period into one amount. 2010 federal tax form If you do not receive, or do not have access to, an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. 2010 federal tax form The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T, Tuition Statement. 2010 federal tax form See How Do You Figure the Deduction , later, for more information about Form 1098-T. 2010 federal tax form Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (defined earlier). 2010 federal tax form Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. 2010 federal tax form Table 19-3 summarizes who can claim the deduction. 2010 federal tax form How Much Can You Deduct The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. 2010 federal tax form For details on figuring your MAGI, see chapter 6 of Publication 970. 2010 federal tax form How Do You Figure the Deduction Figure the deduction using Form 8917. 2010 federal tax form To help you figure your tuition and fees deduction, you should receive Form 1098-T, Tuition Statement. 2010 federal tax form Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. 2010 federal tax form To claim the deduction, enter the allowable amount on Form 1040, line 34, or Form 1040A, line 19, and attach your completed Form 8917. 2010 federal tax form Table 19-3. 2010 federal tax form Who Can Claim a Dependent's Expenses Do not rely on this table alone. 2010 federal tax form See Who Can Claim a Dependent's Expenses in chapter 6 of Publication 970. 2010 federal tax form IF your dependent is an eligible student and you. 2010 federal tax form . 2010 federal tax form . 2010 federal tax form AND. 2010 federal tax form . 2010 federal tax form . 2010 federal tax form THEN. 2010 federal tax form . 2010 federal tax form . 2010 federal tax form claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. 2010 federal tax form Your dependent cannot take a deduction. 2010 federal tax form claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 2010 federal tax form do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. 2010 federal tax form do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 2010 federal tax form Educator Expenses If you were an eligible educator in 2013, you can deduct on Form 1040, line 23, or Form 1040A, line 16, up to $250 of qualified expenses you paid in 2013. 2010 federal tax form If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. 2010 federal tax form However, neither spouse can deduct more than $250 of his or her qualified expenses on Form 1040, line 23, or Form 1040A, line 16. 2010 federal tax form You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A (Form 1040), line 21. 2010 federal tax form Eligible educator. 2010 federal tax form   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year. 2010 federal tax form Qualified expenses. 2010 federal tax form   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. 2010 federal tax form An ordinary expense is one that is common and accepted in your educational field. 2010 federal tax form A necessary expense is one that is helpful and appropriate for your profession as an educator. 2010 federal tax form An expense does not have to be required to be considered necessary. 2010 federal tax form   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. 2010 federal tax form   You must reduce your qualified expenses by the following amounts. 2010 federal tax form Excludable U. 2010 federal tax form S. 2010 federal tax form series EE and I savings bond interest from Form 8815. 2010 federal tax form See Figuring the Tax-Free Amount in chapter 10 of Publication 970. 2010 federal tax form Nontaxable qualified tuition program earnings or distributions. 2010 federal tax form See Figuring the Taxable Portion of a Distribution in chapter 8 of Publication 970. 2010 federal tax form Nontaxable distribution of earnings from a Coverdell education savings account. 2010 federal tax form See Figuring the Taxable Portion of a Distribution in chapter 7 of Publication 970. 2010 federal tax form Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2. 2010 federal tax form Prev  Up  Next   Home   More Online Publications
Español

The 2010 Federal Tax Form

2010 federal tax form 3. 2010 federal tax form   Savings Incentive Match Plans for Employees (SIMPLE) Table of Contents Introduction What Is a SIMPLE Plan?Eligible Employees How Are Contributions Made? How Much Can Be Contributed on Your Behalf?Matching contributions less than 3%. 2010 federal tax form Traditional IRA mistakenly moved to SIMPLE IRA. 2010 federal tax form When Can You Withdraw or Use Assets?Are Distributions Taxable? Introduction This chapter is for employees who need information about savings incentive match plans for employees (SIMPLE plans). 2010 federal tax form It explains what a SIMPLE plan is, contributions to a SIMPLE plan, and distributions from a SIMPLE plan. 2010 federal tax form Under a SIMPLE plan, SIMPLE retirement accounts for participating employees can be set up either as: Part of a 401(k) plan, or A plan using IRAs (SIMPLE IRA). 2010 federal tax form This chapter only discusses the SIMPLE plan rules that relate to SIMPLE IRAs. 2010 federal tax form See chapter 3 of Publication 560 for information on any special rules for SIMPLE plans that do not use IRAs. 2010 federal tax form If your employer maintains a SIMPLE plan, you must be notified, in writing, that you can choose the financial institution that will serve as trustee for your SIMPLE IRA and that you can roll over or transfer your SIMPLE IRA to another financial institution. 2010 federal tax form See Rollovers and Transfers Exception, later under When Can You Withdraw or Use Assets. 2010 federal tax form What Is a SIMPLE Plan? A SIMPLE plan is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. 2010 federal tax form See chapter 3 of Publication 560 for information on the requirements employers must satisfy to set up a SIMPLE plan. 2010 federal tax form A SIMPLE plan is a written agreement (salary reduction agreement) between you and your employer that allows you, if you are an eligible employee (including a self-employed individual), to choose to: Reduce your compensation (salary) by a certain percentage each pay period, and Have your employer contribute the salary reductions to a SIMPLE IRA on your behalf. 2010 federal tax form These contributions are called salary reduction contributions. 2010 federal tax form All contributions under a SIMPLE IRA plan must be made to SIMPLE IRAs, not to any other type of IRA. 2010 federal tax form The SIMPLE IRA can be an individual retirement account or an individual retirement annuity, described in chapter 1. 2010 federal tax form Contributions are made on behalf of eligible employees. 2010 federal tax form (See Eligible Employees below. 2010 federal tax form ) Contributions are also subject to various limits. 2010 federal tax form (See How Much Can Be Contributed on Your Behalf , later. 2010 federal tax form ) In addition to salary reduction contributions, your employer must make either matching contributions or nonelective contributions. 2010 federal tax form See How Are Contributions Made , later. 2010 federal tax form You may be able to claim a credit for contributions to your SIMPLE plan. 2010 federal tax form For more information, see chapter 4. 2010 federal tax form Eligible Employees You must be allowed to participate in your employer's SIMPLE plan if you: Received at least $5,000 in compensation from your employer during any 2 years prior to the current year, and Are reasonably expected to receive at least $5,000 in compensation during the calendar year for which contributions are made. 2010 federal tax form Self-employed individual. 2010 federal tax form   For SIMPLE plan purposes, the term employee includes a self-employed individual who received earned income. 2010 federal tax form Excludable employees. 2010 federal tax form   Your employer can exclude the following employees from participating in the SIMPLE plan. 2010 federal tax form Employees whose retirement benefits are covered by a collective bargaining agreement (union contract). 2010 federal tax form Employees who are nonresident aliens and received no earned income from sources within the United States. 2010 federal tax form Employees who would not have been eligible employees if an acquisition, disposition, or similar transaction had not occurred during the year. 2010 federal tax form Compensation. 2010 federal tax form   For purposes of the SIMPLE plan rules, your compensation for a year generally includes the following amounts. 2010 federal tax form Wages, tips, and other pay from your employer that is subject to income tax withholding. 2010 federal tax form Deferred amounts elected under any 401(k) plans, 403(b) plans, government (section 457) plans, SEP plans, and SIMPLE plans. 2010 federal tax form Self-employed individual compensation. 2010 federal tax form   For purposes of the SIMPLE plan rules, if you are self-employed, your compensation for a year is your net earnings from self-employment (Schedule SE (Form 1040), Section A, line 4, or Section B, line 6) before subtracting any contributions made to a SIMPLE IRA on your behalf. 2010 federal tax form   For these purposes, net earnings from self-employment include services performed while claiming exemption from self-employment tax as a member of a group conscientiously opposed to social security benefits. 2010 federal tax form How Are Contributions Made? Contributions under a salary reduction agreement are called salary reduction contributions. 2010 federal tax form They are made on your behalf by your employer. 2010 federal tax form Your employer must also make either matching contributions or nonelective contributions. 2010 federal tax form Salary reduction contributions. 2010 federal tax form   During the 60-day period before the beginning of any year, and during the 60-day period before you are eligible, you can choose salary reduction contributions expressed either as a percentage of compensation, or as a specific dollar amount (if your employer offers this choice). 2010 federal tax form You can choose to cancel the election at any time during the year. 2010 federal tax form   Salary reduction contributions are also referred to as “elective deferrals. 2010 federal tax form ”   Your employer cannot place restrictions on the contributions amount (such as by limiting the contributions percentage), except to comply with the salary reduction contributions limit, discussed under How Much Can Be Contributed on Your Behalf, later. 2010 federal tax form Matching contributions. 2010 federal tax form   Unless your employer chooses to make nonelective contributions, your employer must make contributions equal to the salary reduction contributions you choose (elect), but only up to certain limits. 2010 federal tax form See How Much Can Be Contributed on Your Behalf below. 2010 federal tax form These contributions are in addition to the salary reduction contributions and must be made to the SIMPLE IRAs of all eligible employees (defined earlier) who chose salary reductions. 2010 federal tax form These contributions are referred to as matching contributions. 2010 federal tax form   Matching contributions on behalf of a self-employed individual are not treated as salary reduction contributions. 2010 federal tax form Nonelective contributions. 2010 federal tax form   Instead of making matching contributions, your employer may be able to choose to make nonelective contributions on behalf of all eligible employees. 2010 federal tax form These nonelective contributions must be made on behalf of each eligible employee who has at least $5,000 of compensation from your employer, whether or not the employee chose salary reductions. 2010 federal tax form   One of the requirements your employer must satisfy is notifying the employees that the election was made. 2010 federal tax form For other requirements that your employer must satisfy, see chapter 3 of Publication 560. 2010 federal tax form How Much Can Be Contributed on Your Behalf? The limits on contributions to a SIMPLE IRA vary with the type of contribution that is made. 2010 federal tax form Salary reduction contributions limit. 2010 federal tax form   Salary reduction contributions (employee-chosen contributions or elective deferrals) that your employer can make on your behalf under a SIMPLE plan are limited to $12,000 for 2013. 2010 federal tax form The limitation remains at $12,000 for 2014. 2010 federal tax form If you are a participant in any other employer plans during 2013 and you have elective salary reductions or deferred compensation under those plans, the salary reduction contributions under the SIMPLE plan also are included in the annual limit of $17,500 for 2013 on exclusions of salary reductions and other elective deferrals. 2010 federal tax form You, not your employer, are responsible for monitoring compliance with these limits. 2010 federal tax form Additional elective deferrals can be contributed to your SIMPLE plan if: You reached age 50 by the end of 2013, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions, such as the regular annual limit. 2010 federal tax form The most that can be contributed in additional elective deferrals to your SIMPLE plan is the lesser of the following two amounts. 2010 federal tax form $2,500 for 2013, or Your compensation for the year reduced by your other elective deferrals for the year. 2010 federal tax form The additional deferrals are not subject to any other contribution limit and are not taken into account in applying other contribution limits. 2010 federal tax form The additional deferrals are not subject to the nondiscrimination rules as long as all eligible participants are allowed to make them. 2010 federal tax form Matching employer contributions limit. 2010 federal tax form   Generally, your employer must make matching contributions to your SIMPLE IRA in an amount equal to your salary reduction contributions. 2010 federal tax form These matching contributions cannot be more than 3% of your compensation for the calendar year. 2010 federal tax form See Matching contributions less than 3% below. 2010 federal tax form Example 1. 2010 federal tax form In 2013, Joshua was a participant in his employer's SIMPLE plan. 2010 federal tax form His compensation, before SIMPLE plan contributions, was $41,600 ($800 per week). 2010 federal tax form Instead of taking it all in cash, Joshua elected to have 12. 2010 federal tax form 5% of his weekly pay ($100) contributed to his SIMPLE IRA. 2010 federal tax form For the full year, Joshua's salary reduction contributions were $5,200, which is less than the $12,000 limit on these contributions. 2010 federal tax form Under the plan, Joshua's employer was required to make matching contributions to Joshua's SIMPLE IRA. 2010 federal tax form Because his employer's matching contributions must equal Joshua's salary reductions, but cannot be more than 3% of his compensation (before salary reductions) for the year, his employer's matching contribution was limited to $1,248 (3% of $41,600). 2010 federal tax form Example 2. 2010 federal tax form Assume the same facts as in Example 1 , except that Joshua's compensation for the year was $408,163 and he chose to have 2. 2010 federal tax form 94% of his weekly pay contributed to his SIMPLE IRA. 2010 federal tax form In this example, Joshua's salary reduction contributions for the year (2. 2010 federal tax form 94% × $408,163) were equal to the 2013 limit for salary reduction contributions ($12,000). 2010 federal tax form Because 3% of Joshua's compensation ($12,245) is more than the amount his employer was required to match ($12,000), his employer's matching contributions were limited to $12,000. 2010 federal tax form In this example, total contributions made on Joshua's behalf for the year were $24,000 ($12,000 (Joshua's contributions) + $12,000 (matching contributions)), the maximum contributions permitted under a SIMPLE IRA for 2013. 2010 federal tax form Matching contributions less than 3%. 2010 federal tax form   Your employer can reduce the 3% limit on matching contributions for a calendar year, but only if: The limit is not reduced below 1%, The limit is not reduced for more than 2 years out of the 5-year period that ends with (and includes) the year for which the election is effective, and Employees are notified of the reduced limit within a reasonable period of time before the 60-day election period during which they can enter into salary reduction agreements. 2010 federal tax form   For purposes of applying the rule in item (2) in determining whether the limit was reduced below 3% for the year, any year before the first year in which your employer (or a former employer) maintains a SIMPLE IRA plan will be treated as a year for which the limit was 3%. 2010 federal tax form If your employer chooses to make nonelective contributions for a year, that year also will be treated as a year for which the limit was 3%. 2010 federal tax form Nonelective employer contributions limit. 2010 federal tax form   If your employer chooses to make nonelective contributions, instead of matching contributions, to each eligible employee's SIMPLE IRA, contributions must be 2% of your compensation for the entire year. 2010 federal tax form For 2013, only $255,000 of your compensation can be taken into account to figure the contribution limit. 2010 federal tax form   Your employer can substitute the 2% nonelective contribution for the matching contribution for a year if both of the following requirements are met. 2010 federal tax form Eligible employees are notified that a 2% nonelective contribution will be made instead of a matching contribution. 2010 federal tax form This notice is provided within a reasonable period during which employees can enter into salary reduction agreements. 2010 federal tax form Example 3. 2010 federal tax form Assume the same facts as in Example 2 , except that Joshua's employer chose to make nonelective contributions instead of matching contributions. 2010 federal tax form Because his employer's nonelective contributions are limited to 2% of up to $255,000 of Joshua's compensation, his employer's contribution to Joshua's SIMPLE IRA was limited to $5,100. 2010 federal tax form In this example, total contributions made on Joshua's behalf for the year were $17,100 (Joshua's salary reductions of $12,000 plus his employer's contribution of $5,100). 2010 federal tax form Traditional IRA mistakenly moved to SIMPLE IRA. 2010 federal tax form   If you mistakenly roll over or transfer an amount from a traditional IRA to a SIMPLE IRA, you can later recharacterize the amount as a contribution to another traditional IRA. 2010 federal tax form For more information, see Recharacterizations in chapter 1. 2010 federal tax form Recharacterizing employer contributions. 2010 federal tax form   You cannot recharacterize employer contributions (including elective deferrals) under a SEP or SIMPLE plan as contributions to another IRA. 2010 federal tax form SEPs are discussed in chapter 2 of Publication 560. 2010 federal tax form SIMPLE plans are discussed in this chapter. 2010 federal tax form Converting from a SIMPLE IRA. 2010 federal tax form   Generally, you can convert an amount in your SIMPLE IRA to a Roth IRA under the same rules explained in chapter 1 under Converting From Any Traditional IRA Into a Roth IRA . 2010 federal tax form    However, you cannot convert any amount distributed from the SIMPLE IRA during the 2-year period beginning on the date you first participated in any SIMPLE IRA plan maintained by your employer. 2010 federal tax form When Can You Withdraw or Use Assets? Generally, the same distribution (withdrawal) rules that apply to traditional IRAs apply to SIMPLE IRAs. 2010 federal tax form These rules are discussed in chapter 1. 2010 federal tax form Your employer cannot restrict you from taking distributions from a SIMPLE IRA. 2010 federal tax form Are Distributions Taxable? Generally, distributions from a SIMPLE IRA are fully taxable as ordinary income. 2010 federal tax form If the distribution is an early distribution (discussed in chapter 1), it may be subject to the additional tax on early distributions. 2010 federal tax form See Additional Tax on Early Distributions, later. 2010 federal tax form Rollovers and Transfers Exception Generally, rollovers and trustee-to-trustee transfers are not taxable distributions. 2010 federal tax form Two-year rule. 2010 federal tax form   To qualify as a tax-free rollover (or a tax-free trustee-to-trustee transfer), a rollover distribution (or a transfer) made from a SIMPLE IRA during the 2-year period beginning on the date on which you first participated in your employer's SIMPLE plan must be contributed (or transferred) to another SIMPLE IRA. 2010 federal tax form The 2-year period begins on the first day on which contributions made by your employer are deposited in your SIMPLE IRA. 2010 federal tax form   After the 2-year period, amounts in a SIMPLE IRA can be rolled over or transferred tax free to an IRA other than a SIMPLE IRA, or to a qualified plan, a tax-sheltered annuity plan (section 403(b) plan), or deferred compensation plan of a state or local government (section 457 plan). 2010 federal tax form Additional Tax on Early Distributions The additional tax on early distributions (discussed in chapter 1) applies to SIMPLE IRAs. 2010 federal tax form If a distribution is an early distribution and occurs during the 2-year period following the date on which you first participated in your employer's SIMPLE plan, the additional tax on early distributions is increased from 10% to 25%. 2010 federal tax form If a rollover distribution (or transfer) from a SIMPLE IRA does not satisfy the 2-year rule, and is otherwise an early distribution, the additional tax imposed because of the early distribution is increased from 10% to 25% of the amount distributed. 2010 federal tax form Prev  Up  Next   Home   More Online Publications