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2010 Tax Tables

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2010 Tax Tables

2010 tax tables Publication 972 - Introductory Material Table of Contents Future Developments Reminder IntroductionOrdering forms and publications. 2010 tax tables Tax questions. 2010 tax tables Future Developments For the latest information about developments related to Publication 972, such as legislation enacted after it was published, go to www. 2010 tax tables irs. 2010 tax tables gov/pub972. 2010 tax tables Reminder Photographs of missing children. 2010 tax tables  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 2010 tax tables Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 2010 tax tables You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 2010 tax tables Introduction The purpose of this publication is: To figure the child tax credit you claim on Form 1040, line 51; Form 1040A, line 33; or Form 1040NR, line 48; and To figure the amount of earned income you enter on line 4a of Schedule 8812 (Form 1040A or 1040), Child Tax Credit. 2010 tax tables This publication is intended primarily for individuals sent here by the instructions to Forms 1040, 1040A, or 1040NR, or Schedule 8812. 2010 tax tables Even if you were not sent here by the instructions to one of the forms or the schedule, you can still choose to use this publication to figure your credit. 2010 tax tables However, most individuals can use a simpler worksheet in their tax form instructions. 2010 tax tables If you were sent here from your Form 1040, Form 1040A, or Form 1040NR instructions. 2010 tax tables   Complete the Child Tax Credit Worksheet , later in this publication. 2010 tax tables If you were sent here from your Schedule 8812 instructions. 2010 tax tables   Complete the 1040 and 1040NR Filers — Earned Income Worksheet , later in this publication. 2010 tax tables If you have not read your Form 1040, Form 1040A, or Form 1040NR instructions. 2010 tax tables   Read the explanation of who must use this publication next. 2010 tax tables If you find that you are not required to use this publication to figure your child tax credit, you can use the simpler worksheet in the Form 1040, Form 1040A, or Form 1040NR instructions to figure your credit. 2010 tax tables Who must use this publication. 2010 tax tables   If you answer “Yes” to either of the following questions, you must use this publication to figure your child tax credit. 2010 tax tables Are you excluding income from Puerto Rico or filing any of the following forms? Form 2555 or 2555-EZ (relating to foreign earned income). 2010 tax tables Form 4563 (exclusion of income for residents of American Samoa). 2010 tax tables Are you claiming any of the following credits? Mortgage interest credit, Form 8396. 2010 tax tables Adoption credit, Form 8839. 2010 tax tables Residential energy efficient property credit, Form 5695, Part I. 2010 tax tables District of Columbia first-time homebuyer credit, Form 8859. 2010 tax tables Comments and suggestions. 2010 tax tables   We welcome your comments about this publication and your suggestions for future editions. 2010 tax tables   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 2010 tax tables NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2010 tax tables Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2010 tax tables   You can send your comments from www. 2010 tax tables irs. 2010 tax tables gov/formspubs/. 2010 tax tables Click on “More Information” and then on “Comment on Tax Forms and Publications. 2010 tax tables ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 2010 tax tables Ordering forms and publications. 2010 tax tables   Visit www. 2010 tax tables irs. 2010 tax tables gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 2010 tax tables Internal Revenue Service 1201 N. 2010 tax tables Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 2010 tax tables   If you have a tax question, check the information available on IRS. 2010 tax tables gov or call 1-800-829-1040. 2010 tax tables We cannot answer tax questions sent to either of the above addresses. 2010 tax tables Prev  Up  Next   Home   More Online Publications
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The 2010 Tax Tables

2010 tax tables 6. 2010 tax tables   Tuition and Fees Deduction Table of Contents IntroductionWhat is the tax benefit of the tuition and fees deduction. 2010 tax tables Can You Claim the DeductionWho Can Claim the Deduction Who Cannot Claim the Deduction What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses Figuring the DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Claiming the Deduction Illustrated Example Introduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). 2010 tax tables 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 tax tables The qualified expenses must be for higher education, as explained later under Qualified Education Expenses . 2010 tax tables What is the tax benefit of the tuition and fees deduction. 2010 tax tables   The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. 2010 tax tables   This deduction is taken as an adjustment to income. 2010 tax tables This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). 2010 tax tables This deduction may be beneficial to you if you do not qualify for the American opportunity or lifetime learning credits. 2010 tax tables You can choose the education benefit that will give you the lowest tax. 2010 tax tables You may want to compare the tuition and fees deduction to the education credits. 2010 tax tables See chapter 2, American Opportunity Credit and chapter 3, Lifetime Learning Credit for more information on the education credits. 2010 tax tables Table 6-1. 2010 tax tables Tuition and Fees Deduction at a Glance summarizes the features of the tuition and fees deduction. 2010 tax tables Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. 2010 tax tables Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. 2010 tax tables You pay qualified education expenses of higher education. 2010 tax tables You pay the education expenses for an eligible student. 2010 tax tables The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return. 2010 tax tables The term “qualified education expenses” is defined later under Qualified Education Expenses . 2010 tax tables “Eligible student” is defined later under Who Is an Eligible Student . 2010 tax tables For more information on claiming the deduction for a dependent, see Who Can Claim a Dependent's Expenses , later. 2010 tax tables Table 6-1. 2010 tax tables Tuition and Fees Deduction at a Glance Do not rely on this table alone. 2010 tax tables Refer to the text for complete details. 2010 tax tables Question Answer What is the maximum benefit? You can reduce your income subject to tax by up to $4,000. 2010 tax tables What is the limit on modified adjusted gross income (MAGI)? $160,000 if married filing a joint return; $80,000 if single, head of household, or qualifying widow(er). 2010 tax tables Where is the deduction taken? As an adjustment to income on  Form 1040 or Form 1040A. 2010 tax tables 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 tax tables 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 tax tables Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. 2010 tax tables Your filing status is married filing separately. 2010 tax tables Another person can claim an exemption for you as a dependent on his or her tax return. 2010 tax tables You cannot take the deduction even if the other person does not actually claim that exemption. 2010 tax tables Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). 2010 tax tables 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 tax tables More information on nonresident aliens can be found in Publication 519. 2010 tax tables 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 tax tables 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 beginning in 2013 or in the first 3 months of 2014. 2010 tax tables For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 deduction. 2010 tax tables Academic period. 2010 tax tables   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 tax tables 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 tax tables Paid with borrowed funds. 2010 tax tables   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. 2010 tax tables 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 tax tables Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. 2010 tax tables Student withdraws from class(es). 2010 tax tables   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. 2010 tax tables 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 tax tables Eligible educational institution. 2010 tax tables   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 tax tables S. 2010 tax tables Department of Education. 2010 tax tables It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2010 tax tables The educational institution should be able to tell you if it is an eligible educational institution. 2010 tax tables   Certain educational institutions located outside the United States also participate in the U. 2010 tax tables S. 2010 tax tables Department of Education's Federal Student Aid (FSA) programs. 2010 tax tables Related expenses. 2010 tax tables   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. 2010 tax tables Prepaid expenses. 2010 tax tables   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. 2010 tax tables See Academic period , earlier. 2010 tax tables For example, 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 an education credit for 2013 only (if you meet all the other requirements). 2010 tax tables You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). 2010 tax tables In the following examples, assume that each student is an eligible student and each college or university an eligible educational institution. 2010 tax tables Example 1. 2010 tax tables Jackson is a sophomore in University V's degree program in dentistry. 2010 tax tables This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. 2010 tax tables Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified education expense. 2010 tax tables Example 2. 2010 tax tables Donna and Charles, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. 2010 tax tables The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. 2010 tax tables Charles bought his books from a friend, so what he paid for them is not a qualified education expense. 2010 tax tables Donna bought hers at College W's bookstore. 2010 tax tables Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified education expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. 2010 tax tables Example 3. 2010 tax tables When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. 2010 tax tables This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and the student government. 2010 tax tables No portion of the fee covers personal expenses. 2010 tax tables Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. 2010 tax tables Therefore, it is a qualified expense. 2010 tax tables No Double Benefit Allowed You cannot do any of the following. 2010 tax tables Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. 2010 tax tables 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 tax tables 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 tax tables 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 tax tables See Coordination With Tuition and Fees Deduction in chapter 8, Qualified Tuition Program, later. 2010 tax tables Deduct qualified education expenses that have been paid with tax-free interest on U. 2010 tax tables S. 2010 tax tables savings bonds (Form 8815). 2010 tax tables See Figuring the Tax-Free Amount in chapter 10, Education Savings Bond Program, later. 2010 tax tables Deduct qualified education expenses that have been paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. 2010 tax tables See the following section on Adjustments to Qualified Education Expenses. 2010 tax tables Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. 2010 tax tables The result is the amount of adjusted qualified education expenses for each student. 2010 tax tables You must also reduce qualified education expenses by the other amounts referred to in No Double Benefit Allowed , earlier. 2010 tax tables Tax-free educational assistance. 2010 tax tables   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. 2010 tax tables See Academic period , earlier. 2010 tax tables   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. 2010 tax tables 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 tax tables   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 tax tables 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 tax tables   This tax-free education assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2010 tax tables Generally, any scholarship or fellowship is treated as tax free. 2010 tax tables However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. 2010 tax tables 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 chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 2010 tax tables 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 chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 2010 tax tables You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. 2010 tax tables For details, see Adjustments to Qualified Education Expenses in chapters 2 and 3. 2010 tax tables Refunds. 2010 tax tables   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. 2010 tax tables Some tax-free educational assistance received after 2013 may be treated as a refund. 2010 tax tables See Tax-free educational assistance , earlier. 2010 tax tables Refunds received in 2013. 2010 tax tables   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. 2010 tax tables Refunds received after 2013 but before your income tax return is filed. 2010 tax tables   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. 2010 tax tables Refunds received after 2013 and after your income tax return is filed. 2010 tax tables   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. 2010 tax tables See Credit recapture , later. 2010 tax tables Coordination with Coverdell education savings accounts and qualified tuition programs. 2010 tax tables   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 tax tables 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 tax tables Credit recapture. 2010 tax tables    If any tax-free educational assistance for the qualified education expenses paid in 2013 or any refund of your qualified education expenses paid in 2013 is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. 2010 tax tables You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing that amount by the amount of the refund or tax-free educational assistance. 2010 tax tables You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you had claimed the refigured credit(s). 2010 tax tables Include that amount as an additional tax for the year the refund or tax-free assistance was received. 2010 tax tables Example. 2010 tax tables   You paid $3,500 of qualified education expenses in December 2013, and your child began college in January 2014. 2010 tax tables You claimed $3,500 as the tuition and fees deduction on your 2013 income tax return. 2010 tax tables The reduction reduced your taxable income by $3,500. 2010 tax tables Also, you claimed no tax credits in 2013. 2010 tax tables Your child withdrew from two classes and you received a refund of $2,000 in 2014 after you filed your 2013 tax return. 2010 tax tables Refigure your 2013 tuition and fees deduction using $1,500 of qualified education expense instead of the $3,500. 2010 tax tables The refigured tuition and fees deduction is $1,500. 2010 tax tables Do not file an amended 2013 tax return to account for this adjustment. 2010 tax tables Instead, include the difference of $2,000 (but only to the extent this difference would have increased your 2013 tax) on the “Other income” line of your 2014 Form 1040. 2010 tax tables You cannot file Form 1040A for 2014. 2010 tax tables Amounts that do not reduce qualified education expenses. 2010 tax tables   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 tax tables   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 tax tables 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 as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Restrictions. 2010 tax tables The use of the money is not restricted. 2010 tax tables Example 1. 2010 tax tables In 2013, Jackie paid $3,000 for tuition and $5,000 for room and board at University X. 2010 tax tables The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. 2010 tax tables To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. 2010 tax tables The terms of the scholarship state that it can be used to pay any of Jackie's college expenses. 2010 tax tables University X applies the $2,000 scholarship against Jackie's $8,000 total bill, and Jackie pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. 2010 tax tables Jackie does not report any portion of the scholarship as income on her tax return. 2010 tax tables In figuring the tuition and fees deduction, Jackie must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. 2010 tax tables The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. 2010 tax tables Jackie is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship) in 2013. 2010 tax tables Example 2. 2010 tax tables The facts are the same as in Example 1, except that Jackie reports her entire scholarship as income on her tax return. 2010 tax tables Because Jackie reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. 2010 tax tables Jackie is treated as having paid $3,000 in qualified education expenses. 2010 tax tables 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 tax tables This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. 2010 tax tables Sports, games, hobbies, and noncredit courses. 2010 tax tables   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 tax tables However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. 2010 tax tables Comprehensive or bundled fees. 2010 tax tables   Some eligible educational institutions combine all of their fees for an academic period into one amount. 2010 tax tables 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 tax tables 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. 2010 tax tables See Figuring the Deduction , later, for more information about Form 1098-T. 2010 tax tables 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 (as defined under Qualified Education Expenses , earlier). 2010 tax tables 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 tax tables For you to be able to deduct qualified education expenses for your dependent, you must claim an exemption for that individual. 2010 tax tables You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. 2010 tax tables IF your dependent is an eligible student and you. 2010 tax tables . 2010 tax tables . 2010 tax tables AND. 2010 tax tables . 2010 tax tables . 2010 tax tables THEN. 2010 tax tables . 2010 tax tables . 2010 tax tables 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 tax tables Your dependent cannot take a deduction. 2010 tax tables claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 2010 tax tables do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. 2010 tax tables do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 2010 tax tables Expenses paid by dependent. 2010 tax tables   If your dependent pays qualified education expenses, no one can take a tuition and fees deduction for those expenses. 2010 tax tables Neither you nor your dependent can deduct the expenses. 2010 tax tables For purposes of the tuition and fees deduction, you are not treated as paying any expenses actually paid by a dependent for whom you or anyone other than the dependent can claim an exemption. 2010 tax tables This rule applies even if you do not claim an exemption for your dependent on your tax return. 2010 tax tables Expenses paid by you. 2010 tax tables   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring your tuition and fees deduction. 2010 tax tables Expenses paid under divorce decree. 2010 tax tables   Qualified education expenses paid directly to an eligible educational institution for a student under a court-approved divorce decree are treated as paid by the student. 2010 tax tables Only the student would be eligible to take a tuition and fees deduction for that payment, and then only if no one else could claim an exemption for the student. 2010 tax tables Expenses paid by others. 2010 tax tables   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. 2010 tax tables In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. 2010 tax tables If you claim, or can claim, an exemption on your tax return for the student, you are not considered to have paid the expenses and you cannot deduct them. 2010 tax tables If the student is not a dependent, only the student can deduct payments made directly to the institution for his or her expenses. 2010 tax tables If the student is your dependent, no one can deduct the payments. 2010 tax tables Example. 2010 tax tables In 2013, Ms. 2010 tax tables Baker makes a payment directly to an eligible educational institution for her grandson Dan's qualified education expenses. 2010 tax tables For purposes of deducting tuition and fees, Dan is treated as receiving the money from his grandmother and, in turn, paying his own qualified education expenses. 2010 tax tables If an exemption cannot be claimed for Dan on anyone else's tax return, only Dan can claim a tuition and fees deduction for his grandmother's payment. 2010 tax tables If someone else can claim an exemption for Dan, no one will be allowed a deduction for Ms. 2010 tax tables Baker's payment. 2010 tax tables Tuition reduction. 2010 tax tables   When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. 2010 tax tables If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. 2010 tax tables For more information on tuition reductions, see Qualified Tuition Reduction , in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 2010 tax tables Figuring the Deduction The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. 2010 tax tables See Effect of the Amount of Your Income on the Amount of Your Deduction , later. 2010 tax tables Form 1098-T. 2010 tax tables   To help you figure your tuition and fees deduction, the student should receive Form 1098-T (see Appendix A for a completed example of Form 1098-T). 2010 tax tables 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 tax tables An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. 2010 tax tables However, the amount in boxes 1 and 2 of Form 1098-T might be different than what you paid. 2010 tax tables When figuring the deduction, use only the amounts you paid in 2013 for qualified education expenses. 2010 tax tables   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. 2010 tax tables    The eligible educational institution may ask for a completed Form W-9S or similar statement to obtain the student's name, address, and taxpayer identification number. 2010 tax tables Effect of the Amount of Your Income on the Amount of Your Deduction If your MAGI is not more than $65,000 ($130,000 if you are married filing jointly), your maximum tuition and fees deduction is $4,000. 2010 tax tables If your MAGI is larger than $65,000 ($130,000 if you are married filing jointly), but is not more than $80,000 ($160,000 if you are married filing jointly), your maximum deduction is $2,000. 2010 tax tables No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000 if you are married filing jointly). 2010 tax tables Modified adjusted gross income (MAGI). 2010 tax tables   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for tuition and fees. 2010 tax tables However, as discussed below, there may be other modifications. 2010 tax tables MAGI when using Form 1040A. 2010 tax tables   If you file Form 1040A, your MAGI is the AGI on line 22 of that form, figured without taking into account any amount on line 19 (tuition and fees deduction). 2010 tax tables MAGI when using Form 1040. 2010 tax tables   If you file Form 1040, your MAGI is the AGI on line 38 of that form, figured without taking into account any amount on line 34 (tuition and fees deduction) or line 35 (domestic production activities deduction), and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. 2010 tax tables   Table 6-2 shows how the amount of your MAGI can affect your tuition and fees deduction. 2010 tax tables   You can use Worksheet 6-1. 2010 tax tables MAGI for the Tuition and Fees Deduction , later, to figure your MAGI. 2010 tax tables Table 6-2. 2010 tax tables Effect of MAGI on Maximum Tuition and Fees Deduction IF your filing status is. 2010 tax tables . 2010 tax tables . 2010 tax tables AND your MAGI is. 2010 tax tables . 2010 tax tables . 2010 tax tables THEN your maximum tuition and fees deduction is. 2010 tax tables . 2010 tax tables . 2010 tax tables single,  head of household, or qualifying widow(er) not more than $65,000 $4,000. 2010 tax tables more than $65,000  but not more than $80,000 $2,000. 2010 tax tables more than $80,000 $0. 2010 tax tables married filing joint return not more than $130,000 $4,000. 2010 tax tables more than $130,000 but not more than $160,000 $2,000. 2010 tax tables more than $160,000 $0. 2010 tax tables Claiming the Deduction You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A. 2010 tax tables Enter the deduction on Form 1040, line 34, or Form 1040A, line 19. 2010 tax tables A filled-in Form 8917 is shown at the end of this chapter. 2010 tax tables Illustrated Example Tim Pfister, a single taxpayer, enrolled full-time at a local college to earn a degree in engineering. 2010 tax tables This is the first year of his postsecondary education. 2010 tax tables During 2013, he paid $3,600 for his qualified 2013 tuition expense. 2010 tax tables Both he and the college meet all of the requirements for the tuition and fees deduction. 2010 tax tables Tim's total income (Form 1040, line 22) and MAGI are $26,000. 2010 tax tables He figures his deduction of $3,600 as shown on Form 8917, later. 2010 tax tables Worksheet 6-1. 2010 tax tables MAGI for the Tuition and Fees Deduction Use this worksheet if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. 2010 tax tables Before using this worksheet, you must complete Form 1040, lines 7 through 33, and figure any amount to be entered on the dotted line next to line 36. 2010 tax tables 1. 2010 tax tables Enter the amount from Form 1040, line 22   1. 2010 tax tables         2. 2010 tax tables Enter the total from Form 1040, lines 23 through 33   2. 2010 tax tables               3. 2010 tax tables Enter the total of any amounts entered on the dotted line next to Form 1040, line 36   3. 2010 tax tables               4. 2010 tax tables Add lines 2 and 3   4. 2010 tax tables         5. 2010 tax tables Subtract line 4 from line 1   5. 2010 tax tables         6. 2010 tax tables Enter your foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   6. 2010 tax tables         7. 2010 tax tables Enter your foreign housing deduction (Form 2555, line 50)   7. 2010 tax tables         8. 2010 tax tables Enter the amount of income from Puerto Rico you are excluding   8. 2010 tax tables         9. 2010 tax tables Enter the amount of income from American Samoa you are  excluding (Form 4563, line 15)   9. 2010 tax tables         10. 2010 tax tables Add lines 5 through 9. 2010 tax tables This is your modified adjusted gross income   10. 2010 tax tables     Note. 2010 tax tables If the amount on line 10 is more than $80,000 ($160,000 if married filing jointly),  you cannot take the deduction for tuition and fees. 2010 tax tables       This image is too large to be displayed in the current screen. 2010 tax tables Please click the link to view the image. 2010 tax tables Form 8917 for Tim Pfister Prev  Up  Next   Home   More Online Publications