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

2012 Online Tax Return

Form1040Www H&rblockTax Software 2012State Taxes For FreeFiling Back Taxes Online FreeFree 1040x Tax FormsHow Do I File Taxes From 20091040ez Form 2012Irs Forms 1040Taxes 2008Irs 1040ez InstructionsState Tax Filing RequirementsDownload 1040ezTurbo Tax 2011 DownloadI Need To File My 2006 Taxes For FreeTax Forms For 2012 FederalWhen Is The Deadline To File TaxesIrs Form 1040ez 20122011 Taxes 2013Www.myfreetaxes.comHr Block Free FileFile 2011 Taxes Online Late2012 Ez Tax Form2011 Form 1040Fill Out 1040xHow To File Self Employed Taxes Step By StepHttps Www Freefilefillableforms Com2014 1040 Ez Tax FormHow To File Taxes As A Student2011 1040ezIrs Tax AmendmentFile Tax Return For 20111040 Long FormHow To File An Amended Federal Tax ReturnHow Do I File A 2010 Tax Return2007 TaxIrs 2012 Tax Forms 1040ezIrs E File2012 Form 1040Filing A Tax Amendment

2012 Online Tax Return

2012 online tax return 1. 2012 online tax return   Filing and Paying Business Taxes Table of Contents Introduction Useful Items - You may want to see: Identification NumbersNew EIN. 2012 online tax return Employee. 2012 online tax return Other payee. 2012 online tax return Income TaxDo I Have To File an Income Tax Return? How Do I File? IRS e-file (Electronic Filing) When Is My Tax Return Due? How Do I Pay Income Tax? Self-Employment (SE) TaxHow to become insured under social security. 2012 online tax return Earning credits in 2013 and 2014. 2012 online tax return Employment Taxes Excise Taxes Information ReturnsWaiver of penalties. 2012 online tax return Penalties. 2012 online tax return Introduction This chapter explains the business taxes you may have to pay and the forms you may have to file. 2012 online tax return It also discusses taxpayer identification numbers. 2012 online tax return Table 1-1 lists the benefits of filing electronically. 2012 online tax return Table 1-2 lists the federal taxes you may have to pay, their due dates, and the forms you use to report them. 2012 online tax return Table 1-3 provides checklists that highlight the typical forms and schedules you may need to file if you ever go out of business. 2012 online tax return You may want to get Publication 509, Tax Calendars. 2012 online tax return It has tax calendars that tell you when to file returns and make tax payments. 2012 online tax return Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. 2012 online tax return S. 2012 online tax return Individual Income Tax Return 1040-ES Estimated Tax for Individuals Sch C (Form 1040) Profit or Loss From Business Sch C-EZ (Form 1040) Net Profit From Business Sch SE (Form 1040) Self-Employment Tax See chapter 12 for information about getting publications and forms. 2012 online tax return Identification Numbers This section explains three types of taxpayer identification numbers, who needs them, when to use them, and how to get them. 2012 online tax return Social security number (SSN). 2012 online tax return   Generally, use your SSN as your taxpayer identification number. 2012 online tax return You must put this number on each of your individual income tax forms, such as Form 1040 and its schedules. 2012 online tax return   To apply for an SSN, use Form SS-5, Application for a Social Security Card. 2012 online tax return This form is available at Social Security Administration (SSA) offices or by calling 1-800-772-1213. 2012 online tax return It is also available from the SSA website at www. 2012 online tax return socialsecurity. 2012 online tax return gov. 2012 online tax return Individual taxpayer identification number (ITIN). 2012 online tax return   The IRS will issue an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. 2012 online tax return In general, if you need to obtain an ITIN, you must attach Form W-7, Application for IRS Individual Taxpayer Identification Number, with your signed, original, completed tax return and any other required documentation and mail them to the following address. 2012 online tax return  Internal Revenue Service ITIN Operation P. 2012 online tax return O. 2012 online tax return Box 149342 Austin, TX 78714-9342 The exceptions are covered in detail in the instructions for Form W-7. 2012 online tax return If you must include another person's SSN on your return and that person does not have and cannot get an SSN, enter that person's ITIN. 2012 online tax return The application is also available in Spanish. 2012 online tax return The form is available at IRS. 2012 online tax return gov or you can call 1-800-829-3676 to order the form. 2012 online tax return    An ITIN is for tax use only. 2012 online tax return It does not entitle the holder to social security benefits or change the holder's employment or immigration status. 2012 online tax return Employer identification number (EIN). 2012 online tax return   You must also have an EIN to use as a taxpayer identification number if you do either of the following. 2012 online tax return Pay wages to one or more employees. 2012 online tax return File pension or excise tax returns. 2012 online tax return   If you must have an EIN, include it along with your SSN on your Schedule C or C-EZ. 2012 online tax return   You can apply for an EIN: Online by clicking on the Employer ID Numbers (EINs) link at www. 2012 online tax return irs. 2012 online tax return gov/businesses/small. 2012 online tax return The EIN is issued immediately once the application information is validated. 2012 online tax return By telephone at 1-800-829-4933. 2012 online tax return By mailing or faxing Form SS-4, Application for Employer Identification Number. 2012 online tax return New EIN. 2012 online tax return   You may need to get a new EIN if either the form or the ownership of your business changes. 2012 online tax return For more information, see Publication 1635, Understanding Your EIN. 2012 online tax return When you need identification numbers of other persons. 2012 online tax return   In operating your business, you will probably make certain payments you must report on information returns. 2012 online tax return These payments are discussed under Information Returns, later in this chapter. 2012 online tax return You must give the recipient of these payments (the payee) a statement showing the total amount paid during the year. 2012 online tax return You must include the payee's identification number and your identification number on the returns and statements. 2012 online tax return Employee. 2012 online tax return   If you have employees, you must get an SSN from each of them. 2012 online tax return Record the name and SSN of each employee exactly as they are shown on the employee's social security card. 2012 online tax return If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. 2012 online tax return This may occur if the employee's name was changed due to marriage or divorce. 2012 online tax return   Form W-4, Employee's Withholding Allowance Certificate, is completed by each employee so the correct federal income tax can be withheld from their pay. 2012 online tax return   If your employee does not have an SSN, he or she should file Form SS-5 with the SSA. 2012 online tax return Other payee. 2012 online tax return   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. 2012 online tax return If you must report payments to an organization, such as a corporation or partnership, you must get its EIN. 2012 online tax return   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. 2012 online tax return   A payee who does not provide you with an identification number may be subject to backup withholding. 2012 online tax return For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. 2012 online tax return Income Tax This part explains whether you have to file an income tax return and when you file it. 2012 online tax return It also explains how you pay the tax. 2012 online tax return Do I Have To File an Income Tax Return? You have to file an income tax return for 2013 if your net earnings from self-employment were $400 or more. 2012 online tax return If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions. 2012 online tax return How Do I File? File your income tax return on Form 1040 and attach Schedule C or Schedule C-EZ. 2012 online tax return Enter the net profit or loss from Schedule C or Schedule C-EZ on page 1 of Form 1040. 2012 online tax return Use Schedule C to figure your net profit or loss from your business. 2012 online tax return If you operated more than one business as a sole proprietorship, you must attach a separate Schedule C for each business. 2012 online tax return You can use the simpler Schedule C-EZ if you operated only one business as a sole proprietorship, you did not have a net loss, and you meet the other requirements listed in Part I of the schedule. 2012 online tax return IRS e-file (Electronic Filing) Please click here for the text description of the image. 2012 online tax return E-file logo You may be able to file your tax returns electronically using an IRS e-file option. 2012 online tax return Table 1-1 lists the benefits of IRS e-file. 2012 online tax return IRS e-file uses automation to replace most of the manual steps needed to process paper returns. 2012 online tax return As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. 2012 online tax return As with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. 2012 online tax return Using e-file does not affect your chances of an IRS examination of your return. 2012 online tax return You can file most commonly used business forms using IRS e-file. 2012 online tax return For more information, visit IRS. 2012 online tax return gov. 2012 online tax return Electronic signatures. 2012 online tax return   Paperless filing is easier than you think and it's available to most taxpayers who file electronically—including those first-time filers who were 16 or older at the end of 2013. 2012 online tax return If you file electronically using tax preparation software or a tax professional, you will participate in the Self-Select PIN (personal identification number) program. 2012 online tax return If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. 2012 online tax return    To create a PIN, you must know your adjusted gross income (AGI) from your originally filed 2012 income tax return (not from an amended return, Form 1040X, or any math error notice from the IRS). 2012 online tax return You will also need to provide your date of birth (DOB). 2012 online tax return Make sure your DOB is accurate and matches the information on record with the Social Security Administration before you e-file. 2012 online tax return To do this, check your annual Social Security Statement. 2012 online tax return   With a Self-Select PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. 2012 online tax return For more details on the Self-Select PIN program, visit IRS. 2012 online tax return gov. 2012 online tax return State returns. 2012 online tax return   In most states, you can file an electronic state return simultaneously with your federal return. 2012 online tax return For more information, check with your local IRS office, state tax agency, tax professional, or IRS. 2012 online tax return gov. 2012 online tax return Refunds. 2012 online tax return   You can have your refund check mailed to you, or you can have your refund deposited directly to your checking or savings account. 2012 online tax return   With e-file, your refund will be issued in half the time as when filing on paper. 2012 online tax return Most refunds are issued within 3 weeks. 2012 online tax return If you choose Direct Deposit, you can receive your refund in as few as 10 days. 2012 online tax return Offset against debts. 2012 online tax return   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. 2012 online tax return You will be notified if the refund you claimed has been offset against your debts. 2012 online tax return Refund inquiries. 2012 online tax return   You can check the status of your refund if it has been at least 24 hours (4 weeks if you mailed a paper return) from the date you filed your return. 2012 online tax return Be sure to have a copy of your tax return available because you will need to know the filing status, the first social security number shown on the return, and the exact whole-dollar amount of the refund. 2012 online tax return To check on your refund, do one of the following. 2012 online tax return Go to IRS. 2012 online tax return gov and click on Where's My Refund. 2012 online tax return Call 1-800-829-4477 for automated refund information, and follow the recorded instructions. 2012 online tax return Call 1-800-829-1954 during the hours shown in your form instructions. 2012 online tax return Balance due. 2012 online tax return   If you owe tax, you must pay it by April 15, 2014, to avoid late-payment penalties and interest. 2012 online tax return You can make your payment electronically by scheduling an electronic funds withdrawal from your checking or savings account or by credit card. 2012 online tax return Using an Authorized IRS e-file Provider Many tax professionals can electronically file paperless returns for their clients. 2012 online tax return You have two options. 2012 online tax return You can prepare your return, take it to an authorized IRS e-file provider, and have the provider transmit it electronically to the IRS. 2012 online tax return You can have an authorized IRS e-file provider prepare your return and transmit it for you electronically. 2012 online tax return You will be asked to complete Form 8879, IRS e-file Signature Authorization, to authorize the provider to enter your self-selected PIN on your return. 2012 online tax return Depending on the provider and the specific services requested, a fee may be charged. 2012 online tax return To find an authorized IRS e-file provider near you, go to IRS. 2012 online tax return gov or look for an “Authorized IRS e-file Provider” sign. 2012 online tax return Using Your Personal Computer A computer with Internet access is all you need to file your tax return using IRS e-file. 2012 online tax return When you use your personal computer, you can e-file your return from your home any time of the day or night. 2012 online tax return Sign your return electronically using a self-selected PIN to complete the process. 2012 online tax return There is no signature form to submit or Forms W-2 to send in. 2012 online tax return Free Internet filing options. 2012 online tax return   More taxpayers can now prepare and e-file their individual income tax returns free using commercial tax preparation software accessible through IRS. 2012 online tax return gov or www. 2012 online tax return usa. 2012 online tax return gov. 2012 online tax return The IRS is partnering with the tax software industry to offer free preparation and filing services to a significant number of taxpayers. 2012 online tax return Security and privacy certificate programs will assure tax data is safe and secure. 2012 online tax return To see if you qualify for these services, visit the Return Preparation and Filing Options page at IRS. 2012 online tax return gov. 2012 online tax return   If you cannot use the free services, you can buy tax preparation software at various electronics stores or computer and office supply stores. 2012 online tax return You can also download software from the Internet or prepare and file your return completely online by using tax preparation software available on the Internet. 2012 online tax return Filing Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. 2012 online tax return Others offer it for a fee. 2012 online tax return Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. 2012 online tax return Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. 2012 online tax return The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers, and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. 2012 online tax return Some locations offer free electronic filing. 2012 online tax return Table 1-1. 2012 online tax return Benefits of IRS e-file Accuracy • Your chance of getting an error notice from the IRS is significantly reduced. 2012 online tax return Security • Your privacy and security are assured. 2012 online tax return Electronic signatures • Create your own personal identification number (PIN) and file a completely paperless return through your tax preparation software or tax professional. 2012 online tax return There is nothing to mail. 2012 online tax return Proof of acceptance • You receive an electronic acknowledgment within 48 hours that the IRS has accepted your return for processing. 2012 online tax return Fast refunds • You get your refund faster with Direct Deposit—in as few as 10 days. 2012 online tax return Free Internet filing options • Use IRS. 2012 online tax return gov to access commercial tax preparation and e-file services available at no cost to eligible taxpayers. 2012 online tax return Electronic payment options • Convenient, safe, and secure electronic payment options are available. 2012 online tax return E-file and pay your taxes in a single step. 2012 online tax return Schedule an electronic funds withdrawal from your checking or savings account (up to and including April 15, 2014) or pay by credit card. 2012 online tax return Federal/State filing • Prepare and file your federal and state tax returns together and double the benefits you get from e-file. 2012 online tax return When Is My Tax Return Due? Form 1040 for calendar year 2013 is due by April 15, 2014. 2012 online tax return If you use a fiscal year (explained in chapter 2), your return is due by the 15th day of the 4th month after the end of your fiscal year. 2012 online tax return If you file late, you may have to pay penalties and interest. 2012 online tax return If you cannot file your return on time, use Form 4868, Application for Automatic Extension of Time To File U. 2012 online tax return S. 2012 online tax return Individual Income Tax Return, to request an automatic 6-month extension. 2012 online tax return For calendar year taxpayers, this will extend the tax filing due date until October 15. 2012 online tax return Filing an extension does not extend the time to pay your taxes, only the time to file the tax return. 2012 online tax return How Do I Pay Income Tax? Federal income tax is a pay-as-you-go tax. 2012 online tax return You must pay it as you earn or receive income during the year. 2012 online tax return An employee usually has income tax withheld from his or her pay. 2012 online tax return If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. 2012 online tax return You generally have to make estimated tax payments if you expect to owe taxes, including self-employment tax (discussed later), of $1,000 or more when you file your return. 2012 online tax return Use Form 1040-ES to figure and pay the tax. 2012 online tax return If you do not have to make estimated tax payments, you can pay any tax due when you file your return. 2012 online tax return For more information on estimated tax, see Publication 505, Tax Withholding and Estimated Tax. 2012 online tax return What are my payment options?   You can pay your estimated tax electronically using various options. 2012 online tax return If you pay electronically, there is no need to mail in Form 1040-ES payment vouchers. 2012 online tax return These options include: Paying electronically through the Electronic Federal Tax Payment System (EFTPS). 2012 online tax return Paying by authorizing an electronic funds withdrawal when you file Form 1040 electronically. 2012 online tax return Paying by credit or debit card over the phone or by Internet. 2012 online tax return Other options include crediting an overpayment from your 2013 return to your 2014 estimated tax, or mailing a check or money order with a Form 1040-ES payment voucher. 2012 online tax return EFTPS    To enroll in EFTPS, go to www. 2012 online tax return eftps. 2012 online tax return gov or call 1-800-555-4477. 2012 online tax return When you request a new EIN and you will have a tax obligation, you are automatically enrolled in EFTPS. 2012 online tax return Benefits of EFTPS: The chance of an error in making your payments is reduced. 2012 online tax return You receive immediate confirmation of every transaction. 2012 online tax return Penalty for underpayment of tax. 2012 online tax return   If you did not pay enough income tax and self-employment tax for 2013 by withholding or by making estimated tax payments, you may have to pay a penalty on the amount not paid. 2012 online tax return The IRS will figure the penalty for you and send you a bill. 2012 online tax return Or you can use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you have to pay a penalty and to figure the penalty amount. 2012 online tax return For more information, see Publication 505. 2012 online tax return Self-Employment (SE) Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. 2012 online tax return It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. 2012 online tax return If you earned income as a statutory employee, you do not pay SE tax on that income. 2012 online tax return Social security coverage. 2012 online tax return   Social security benefits are available to self-employed persons just as they are to wage earners. 2012 online tax return Your payments of SE tax contribute to your coverage under the social security system. 2012 online tax return Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. 2012 online tax return By not reporting all of your self-employment income, you could cause your social security benefits to be lower when you retire. 2012 online tax return How to become insured under social security. 2012 online tax return   You must be insured under the social security system before you begin receiving social security benefits. 2012 online tax return You are insured if you have the required number of credits (also called quarters of coverage), discussed next. 2012 online tax return Earning credits in 2013 and 2014. 2012 online tax return   For 2013, you received one credit, up to a maximum of four credits, for each $1,160 ($1,200 for 2014) of income subject to social security taxes. 2012 online tax return Therefore, for 2013, if you had income (self-employment and wages) of $4,640 that was subject to social security taxes, you receive four credits ($4,640 ÷ $1,160). 2012 online tax return   For an explanation of the number of credits you must have to be insured and the benefits available to you and your family under the social security program, consult your nearest Social Security Administration (SSA) office. 2012 online tax return    Making false statements to get or to increase social security benefits may subject you to penalties. 2012 online tax return The Social Security Administration (SSA) time limit for posting self-employment income. 2012 online tax return   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. 2012 online tax return If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. 2012 online tax return The SSA will not change its records to increase your self-employment income. 2012 online tax return Who must pay self-employment tax. 2012 online tax return   You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. 2012 online tax return Your net earnings from self-employment (excluding church employee income) were $400 or more. 2012 online tax return You had church employee income of $108. 2012 online tax return 28 or more. 2012 online tax return The SE tax rules apply no matter how old you are and even if you are already receiving social security or Medicare benefits. 2012 online tax return SE tax rate. 2012 online tax return   For 2013, the SE tax rate on net earnings is 15. 2012 online tax return 3% (12. 2012 online tax return 4% social security tax plus 2. 2012 online tax return 9% Medicare tax). 2012 online tax return Maximum earnings subject to SE tax. 2012 online tax return   Only the first $113,700 of your combined wages, tips, and net earnings in 2013 is subject to any combination of the 12. 2012 online tax return 4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. 2012 online tax return   All your combined wages, tips, and net earnings in 2013 are subject to any combination of the 2. 2012 online tax return 9% Medicare part of SE tax, social security tax, or railroad retirement (tier 1) tax. 2012 online tax return   If wages and tips you receive as an employee are subject to either social security or railroad retirement (tier 1) tax, or both, and total at least $113,700, do not pay the 12. 2012 online tax return 4% social security part of the SE tax on any of your net earnings. 2012 online tax return However, you must pay the 2. 2012 online tax return 9% Medicare part of the SE tax on all your net earnings. 2012 online tax return Deduct one-half of your SE tax as an adjustment to income on line 27 of Form 1040. 2012 online tax return   More information. 2012 online tax return   For information on methods of calculating SE tax, see Chapter 10, Self-Employment Tax. 2012 online tax return Table 1-2. 2012 online tax return Which Forms Must I File? IF you are liable for: THEN use Form: DUE by:1 Income tax 1040 and Schedule C or C-EZ2 15th day of 4th month after end of  tax year. 2012 online tax return Self-employment tax Schedule SE File with Form 1040. 2012 online tax return Estimated tax 1040-ES 15th day of 4th, 6th, and 9th months of tax year, and 15th day of 1st month after the end of tax year. 2012 online tax return Social security and Medicare taxes and income tax withholding 941 or 944 April 30, July 31, October 31, and January 313. 2012 online tax return     See Publication 15. 2012 online tax return Providing information on social security and Medicare taxes and income tax withholding W-2 (to employee)  W-2 and W-3 (to the Social Security Administration) January 313. 2012 online tax return   Last day of February (March 31 if filing electronically)3. 2012 online tax return Federal unemployment (FUTA) tax 940 January 313. 2012 online tax return     April 30, July 31, October 31, and January 31, but only if the liability for unpaid tax is more than $500. 2012 online tax return Filing information returns for payments to nonemployees and transactions with other persons See Information Returns Forms 1099 – to the recipient by January 31 and to the IRS by February 28 (March 31 if filing electronically). 2012 online tax return     Other forms – see the General Instructions for Certain Information Returns. 2012 online tax return Excise tax See Excise Taxes See the instructions to the forms. 2012 online tax return 1 If a due date falls on a Saturday, Sunday, or legal holiday, file by the next day that is not a Saturday, Sunday, or legal holiday. 2012 online tax return For more information, see Publication 509, Tax Calendars. 2012 online tax return 2 File a separate schedule for each business. 2012 online tax return 3 See the form instructions if you go out of business, change the form of your business, or stop paying wages. 2012 online tax return     Employment Taxes If you have employees, you will need to file forms to report employment taxes. 2012 online tax return Employment taxes include the following items. 2012 online tax return Social security and Medicare taxes. 2012 online tax return Federal income tax withholding. 2012 online tax return Federal unemployment (FUTA) tax. 2012 online tax return For more information, see Publication 15 (Circular E), Employer's Tax Guide. 2012 online tax return That publication explains your tax responsibilities as an employer. 2012 online tax return To help you determine whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. 2012 online tax return That publication has information to help you determine whether an individual is an independent contractor or an employee. 2012 online tax return If you incorrectly classify an employee as an independent contractor, you may be held liable for employment taxes for that worker plus a penalty. 2012 online tax return An independent contractor is someone who is self-employed. 2012 online tax return You do not generally have to withhold or pay any taxes on payments made to an independent contractor. 2012 online tax return Excise Taxes This section identifies some of the excise taxes you may have to pay and the forms you have to file if you do any of the following. 2012 online tax return Manufacture or sell certain products. 2012 online tax return Operate certain kinds of businesses. 2012 online tax return Use various kinds of equipment, facilities, or products. 2012 online tax return Receive payment for certain services. 2012 online tax return For more information on excise taxes, see Publication 510, Excise Taxes. 2012 online tax return Form 720. 2012 online tax return   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. 2012 online tax return Environmental taxes on the sale or use of ozone-depleting chemicals and imported products containing or manufactured with these chemicals. 2012 online tax return Communications and air transportation taxes. 2012 online tax return Fuel taxes. 2012 online tax return Tax on the first retail sale of heavy trucks, trailers, and tractors. 2012 online tax return Manufacturers taxes on the sale or use of a variety of different articles. 2012 online tax return Tax on indoor tanning services. 2012 online tax return Form 2290. 2012 online tax return   There is a federal excise tax on the use of certain trucks, truck tractors, and buses on public highways. 2012 online tax return The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. 2012 online tax return Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. 2012 online tax return For more information, see the Instructions for Form 2290. 2012 online tax return Depositing excise taxes. 2012 online tax return   If you have to file a quarterly excise tax return on Form 720, you may have to deposit your excise taxes before the return is due. 2012 online tax return For details on depositing excise taxes, see the Instructions for Form 720. 2012 online tax return Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. 2012 online tax return The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. 2012 online tax return You must give a copy of each information return you are required to file to the recipient or payer. 2012 online tax return In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. 2012 online tax return For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. 2012 online tax return Form 1099-MISC. 2012 online tax return   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your business. 2012 online tax return These payments include the following items. 2012 online tax return Payments of $600 or more for services performed for your business by people not treated as your employees, such as fees to subcontractors, attorneys, accountants, or directors. 2012 online tax return Rent payments of $600 or more, other than rents paid to real estate agents. 2012 online tax return Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. 2012 online tax return Royalty payments of $10 or more. 2012 online tax return Payments to certain crew members by operators of fishing boats. 2012 online tax return You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. 2012 online tax return Form W-2. 2012 online tax return   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. 2012 online tax return You can file Form W-2 online. 2012 online tax return For more information about Form W-2, see the General Instructions for Forms W-2 and W-3. 2012 online tax return Penalties. 2012 online tax return   The law provides for the following penalties if you do not file Form 1099-MISC or Form W-2 or do not correctly report the information. 2012 online tax return For more information, see the General Instructions for Certain Information Returns. 2012 online tax return Failure to file information returns. 2012 online tax return This penalty applies if you do not file information returns by the due date, do not include all required information, or report incorrect information. 2012 online tax return Failure to furnish correct payee statements. 2012 online tax return This penalty applies if you do not furnish a required statement to a payee by the required date, do not include all required information, or report incorrect information. 2012 online tax return Waiver of penalties. 2012 online tax return   These penalties will not apply if you can show that the failure was due to reasonable cause and not willful neglect. 2012 online tax return   In addition, there is no penalty for failure to include all required information, or for including incorrect information, on a de minimis (small) number of information returns if you correct the errors by August 1 of the year the returns are due. 2012 online tax return (A de minimis number of returns is the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. 2012 online tax return ) Form 8300. 2012 online tax return   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction, or two or more related business transactions. 2012 online tax return Cash includes U. 2012 online tax return S. 2012 online tax return and foreign coin and currency. 2012 online tax return It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. 2012 online tax return Cash does not include a check drawn on an individual's personal account (personal check). 2012 online tax return For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). 2012 online tax return Penalties. 2012 online tax return   There are civil and criminal penalties, including up to 5 years in prison, for not filing Form 8300, filing (or causing the filing of) a false or fraudulent Form 8300, or structuring a transaction to evade reporting requirements. 2012 online tax return Table 1-3. 2012 online tax return Going Out of Business Checklists (Note. 2012 online tax return The following checklists highlight the typical final forms and schedules you may need to file if you ever go out of business. 2012 online tax return For more information, see the instructions for the listed forms. 2012 online tax return ) IF you are liable for:   THEN you may need to: Income tax □ File Schedule C or C-EZ with your Form 1040 for the year in which you go out of business. 2012 online tax return   □ File Form 4797 with your Form 1040 for each year in which you sell or exchange property used in your business or in which the business use of certain section 179 or listed property drops to 50% or less. 2012 online tax return   □ File Form 8594 with your Form 1040 if you sold your business. 2012 online tax return Self-employment tax □ File Schedule SE with your Form 1040 for the year in which you go out of business. 2012 online tax return Employment taxes □ File Form 941 (or Form 944) for the calendar quarter in which you make final wage payments. 2012 online tax return Note. 2012 online tax return Do not forget to check the box and enter the date final wages were paid on line 15 of Form 941 or line 14 of Form 944. 2012 online tax return   □ File Form 940 for the calendar year in which final wages were paid. 2012 online tax return Note. 2012 online tax return Do not forget to check box d, Final: Business closed or stopped paying wages, under Type of Return. 2012 online tax return Information returns □ Provide Forms W-2 to your employees for the calendar year in which you make final wage payments. 2012 online tax return Note. 2012 online tax return These forms are generally due by the due date of your final Form 941 or Form 944. 2012 online tax return   □ File Form W-3 to file Forms W-2. 2012 online tax return Note. 2012 online tax return These forms are generally due within 1 month after the due date of your final Form 941 or Form 944. 2012 online tax return   □ Provide Forms 1099-MISC to each person to whom you have paid at least $600 for services (including parts and materials) during the calendar year in which you go out of business. 2012 online tax return   □ File Form 1096 to file Forms 1099-MISC. 2012 online tax return Prev  Up  Next   Home   More Online Publications
Español

Foreclosure Resources

If you're facing foreclosure, get housing counseling and other assistance.


Housing - Avoiding Foreclosure

If you miss your mortgage payments, you may lose your home through foreclosure. Your lender can use foreclosure as a legal means to repossess your home. If you owe more than your property is worth, a deficiency judgment is pursued. Both foreclosures and deficiency judgments have a negative impact on your future credit. You should avoid foreclosure if at all possible.

These steps can help:

  • Do not ignore the letters from your lender. If you're having problems making your payments, call or write to your lender's loss mitigation department immediately. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses, loan documents/ type of mortgage, tax returns, the amount of equity in your home. Without this information, they may not be able to help.
  • Stay in your home for now. You may not qualify for assistance if you abandon your property.For example, the Hope for Homeowners program only offers 30-year fixed-rate mortgages to owner occupiers.
  • Contact a HUD-approved housing counseling agency. Call 1-800-569-4287 or TDD 1-800-877-8339 for the housing counseling agency nearest you. These agencies are valuable resources.

HUD counselors frequently have information on services and programs offered by government agencies as well as private and community organizations that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge.

Mortgage and Foreclosure Scams

Most mortgage professionals are trustworthy and provide a valuable service by allowing families to own a home without saving enough money to buy it outright. But dishonest or "predatory" lenders do exist and engage in lending practices that increase the chances that a borrower will lose a home to foreclosure. Some abusive practices include:

  • Lease-back or rent-to-buy scams: You are asked to transfer the title to your home "temporarily" to the scam artist who promises to obtain better financing for your mortgage and allow you to stay in your home as a renter with the option to purchase the home back. However, if you do not comply with the terms of the rent-to-buy agreement, you will lose your money and be evicted like any other tenant.
  • Fake "government" modification programs: These scams claim to be affiliated with the government or require that you pay high fees in order to benefit from government modification programs. Remember that you do not have to pay any fees to participate in government-approved programs. Some frauds may even use words like "federal" or "government-approved" or acquire website names that make consumers think they are associated with the government.
  • Refinance fraud: The scam artist offers to be an intermediary between you and your mortgage lender to negotiate a loan modification. The scam artist may even instruct you to make payments directly to him or her, which the scammer will send to the lender. However, the scam artist will not forward the payments to your lender and you could still lose your home.
  • "Eliminate your debt" claims: Some companies may make false legal claims that you are not required to repay your mortgage or that they know of "secret laws" that can eliminate your debt. Do not believe these claims.
  • Refinance scams: You are encouraged to sign "foreclosure rescue" loan documents to refinance your loan. In reality, you have surrendered ownership of your home because the loan documents are actually deed transfer documents. You may falsely believe that your home has been saved from foreclosure until you receive an eviction notice months or even years later.

Beware of Foreclosure Rescue Scams-Help is Free

  • Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
  • Scam artists often target homeowners who are struggling to meet their mortgage commitment or are anxious to sell their homes. Recognize and avoid common scams.
  • Beware of people who pressure you to sign papers immediately or who try to convince you that they can save your home if you sign or transfer the deed to your house over to them.
  • Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

Making Home Affordable

The Making Home Affordable Program offers opportunities to modify or refinance your mortgage to make your monthly payments more affordable. It also includes the Home Affordable Foreclosure Alternatives Program for homeowners who are interested in a short sale or deed-in-lieu of foreclosure. Go to makinghomeaffordable.gov or call the Homeowner's HOPE Hotline, 1-888-995-HOPE (4673).

The 2012 Online Tax Return

2012 online tax return 35. 2012 online tax return   Education Credits Table of Contents Introduction Useful Items - You may want to see: Who Can Claim an Education Credit Qualified Education ExpensesNo Double Benefit Allowed Adjustments to Qualified Education Expenses Introduction For 2013, there are two tax credits available to persons who pay expenses for higher (postsecondary) education. 2012 online tax return They are: The American opportunity credit, and The lifetime learning credit. 2012 online tax return The chapter will present an overview of these education credits. 2012 online tax return To get the detailed information you will need to claim either of the credits, and for examples illustrating that information, see chapters 2 and 3 of Publication 970. 2012 online tax return Can you claim more than one education credit this year?   For each student, you can choose for any year only one of the credits. 2012 online tax return For example, if you choose to take the American opportunity credit for a child on your 2013 tax return, you cannot, for that same child, also claim the lifetime learning credit for 2013. 2012 online tax return   If you are eligible to claim the American opportunity credit and you are also eligible to claim the lifetime learning credit for the same student in the same year, you can choose to claim either credit, but not both. 2012 online tax return   If you pay qualified education expenses for more than one student in the same year, you can choose to take the American opportunity and the lifetime learning credits on a per-student, per-year basis. 2012 online tax return This means that, for example, you can claim the American opportunity credit for one student and the lifetime learning credit for another student in the same year. 2012 online tax return Table 35-1. 2012 online tax return Comparison of Education Credits Caution. 2012 online tax return You can claim both the American opportunity credit and the lifetime learning credit on the same return—but not for the same student. 2012 online tax return   American Opportunity Credit Lifetime Learning Credit Maximum credit Up to $2,500 credit per eligible student Up to $2,000 credit per return Limit on modified adjusted gross income (MAGI) $180,000 if married filing jointly;  $90,000 if single, head of household, or qualifying widow(er) $127,000 if married filing jointly;  $63,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable 40% of credit may be refundable Credit limited to the amount of tax you must pay on your taxable income Number of years of postsecondary education Available ONLY if the student had not completed the first 4 years of postsecondary education before 2013 Available for all years of postsecondary education and for courses to acquire or improve job skills Number of tax years credit available Available ONLY for 4 tax years per eligible student (including any year(s) the Hope credit was claimed) Available for an unlimited number of years Type of program required Student must be pursuing a program leading to a degree or other recognized education credential Student does not need to be pursuing a program leading to a degree or other recognized education credential Number of courses Student must be enrolled at least half time for at least one academic period beginning during the tax year Available for one or more courses Felony drug conviction At the end of 2013, the student had not been convicted of a felony for possessing or distributing a controlled substance Felony drug convictions do not make the student ineligible Qualified expenses Tuition, required enrollment fees, and course materials that the student needs for a course of study whether or not the materials are bought at the educational institution as a condition of enrollment or attendance Tuition and fees required for enrollment or attendance (including amounts required to be paid to the institution for course-related books, supplies, and equipment) Payments for academic periods Payments made in 2013 for academic periods beginning in 2013 or beginning in the first 3 months of 2014 Differences between the American opportunity and lifetime learning credits. 2012 online tax return   There are several differences between these two credits. 2012 online tax return These differences are summarized in Table 35-1, later. 2012 online tax return Useful Items - You may want to see: Publication 970 Tax Benefits for Education Form (and Instructions) 8863 Education Credits (American Opportunity and Lifetime Learning Credits) Who Can Claim an Education Credit You may be able to claim an education credit if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. 2012 online tax return The credits are based on the amount of qualified education expenses paid for the student in 2013 for academic periods beginning in 2013 and in the first 3 months of 2014. 2012 online tax return 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 education credit(s). 2012 online tax return Academic period. 2012 online tax return   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. 2012 online tax return 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. 2012 online tax return Eligible educational institution. 2012 online tax return   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. 2012 online tax return S. 2012 online tax return Department of Education. 2012 online tax return It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2012 online tax return The educational institution should be able to tell you if it is an eligible educational institution. 2012 online tax return   Certain educational institutions located outside the United States also participate in the U. 2012 online tax return S. 2012 online tax return Department of Education's Federal Student Aid (FSA) programs. 2012 online tax return Who can claim a dependent's expenses. 2012 online tax return   If an exemption is allowed as a deduction for any person who claims the student as a dependent, all qualified education expenses of the student are treated as having been paid by that person. 2012 online tax return Therefore, only that person can claim an education credit for the student. 2012 online tax return If a student is not claimed as a dependent on another person's tax return, only the student can claim a credit. 2012 online tax return Expenses paid by a third party. 2012 online tax return   Qualified education expenses paid on behalf of the student by someone other than the student (such as a relative) are treated as paid by the student. 2012 online tax return However, qualified education expenses paid (or treated as paid) by a student who is claimed as a dependent on your tax return are treated as paid by you. 2012 online tax return Therefore, you are treated as having paid expenses that were paid by the third party. 2012 online tax return For more information and an example see Who Can Claim a Dependent's Expenses in Pub. 2012 online tax return 970, chapter 2 or 3. 2012 online tax return Who cannot claim a credit. 2012 online tax return   You cannot take an education credit if any of the following apply. 2012 online tax return You are claimed as a dependent on another person's tax return, such as your parent's return. 2012 online tax return Your filing status is married filing separately. 2012 online tax return You (or your spouse) were a nonresident alien for any part of 2013 and did not elect to be treated as a resident alien for tax purposes. 2012 online tax return Your MAGI is one of the following. 2012 online tax return American opportunity credit: $180,000 or more if married filing jointly, or $90,000 or more if single, head of household, or qualifying widow(er). 2012 online tax return Lifetime learning credit: $127,000 or more if married filing jointly, or $63,000 or more if single, head of household, or qualifying widow(er) . 2012 online tax return   Generally, your MAGI is the amount on your Form 1040, line 38, or Form 1040A, line 22. 2012 online tax return However, if you are filing Form 2555, Form 2555–EZ, or Form 4563, or are excluding income from Puerto RIco, add to the amount on your Form 1040, line 38, or Form 1040A, line 22, the amount of income you excluded. 2012 online tax return For details, see Pub. 2012 online tax return 970. 2012 online tax return    Figure 35-A may be helpful in determining if you can claim an education credit on your tax return. 2012 online tax return The American opportunity credit will always be greater than or equal to the lifetime learning credit for any student who is eligible for both credits. 2012 online tax return However, if any of the conditions for the American opportunity credit, listed in Table 35-1 earlier, are not met for any student, you cannot take the American opportunity credit for that student. 2012 online tax return You may be able to take the lifetime learning credit for part or all of that student's qualified education expenses instead. 2012 online tax return See Pub. 2012 online tax return 970 for information on other education benefits. 2012 online tax return Qualified Education Expenses Generally, qualified education expenses are amounts paid in 2013 for tuition and fees required for the student's enrollment or attendance at an eligible educational institution. 2012 online tax return It does not matter whether the expenses were paid in cash, by check, by credit or debit card, or with borrowed funds. 2012 online tax return For course-related books, supplies, and equipment, only certain expenses qualify. 2012 online tax return American opportunity credit: Qualified education expenses include amounts spent on books, supplies, and equipment needed for a course of study, whether or not the materials are purchased from the educational institution as a condition of enrollment or attendance. 2012 online tax return Lifetime learning credit: Qualified education expenses include amounts for books, supplies, and equipment only if required to be paid to the institution as a condition of enrollment or attendance. 2012 online tax return Qualified education expenses include nonacademic fees, such as student activity fees, athletic fees, or other expenses unrelated to the academic course of instruction, only if the fee must be paid to the institution as a condition of enrollment or attendance. 2012 online tax return However, fees for personal expenses (described below) are never qualified education expenses. 2012 online tax return Qualified education expenses for either credit do not include amounts paid for: Personal expenses. 2012 online tax return This means room and board, insurance, medical expenses (including student health fees), transportation, and other similar personal, living, or family expenses. 2012 online tax return Any course or other education involving sports, games, or hobbies, or any noncredit course, unless such course or other education is part of the student's degree program or (for the lifetime learning credit only) helps the student acquire or improve job skills. 2012 online tax return You should receive Form 1098–T, Tuition Statement, from the institution reporting either payments received in 2013 (box 1) or amounts billed in 2013 (box 2). 2012 online tax return However, the amount in box 1 or 2 of Form 1098–T may be different from the amount you paid (or are treated as having paid). 2012 online tax return In completing Form 8863, use only the amounts you actually paid (plus any amounts you are treated as having paid) in 2013, reduced as necessary, as described in Adjustments to Qualified Education Expenses , later. 2012 online tax return Qualified education expenses paid on behalf of the student by someone other than the student (such as a relative) are treated as paid by the student. 2012 online tax return Qualified education expenses paid (or treated as paid) by a student who is claimed as a dependent on your tax return are treated as paid by you. 2012 online tax return If you or the student takes a deduction for higher education expenses, such as on Schedule A or C (Form 1040), you cannot use those expenses in your qualified education expenses when figuring your education credits. 2012 online tax return Qualified education expenses for any academic period must be reduced by any tax-free educational assistance allocable to that academic period. 2012 online tax return See Adjustments to Qualified Education Expenses, later. 2012 online tax return Prepaid Expenses. 2012 online tax return   Qualified education expenses paid in 2013 for an academic period that begins in the first 3 months of 2014 can be used in figuring an education credit for 2013 only. 2012 online tax return See Academic period , earlier. 2012 online tax return 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 an education credit for 2013 only (if you meet all the other requirements). 2012 online tax return    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). 2012 online tax return Paid with borrowed funds. 2012 online tax return   You can claim an education credit for qualified education expenses paid with the proceeds of a loan. 2012 online tax return Use the expenses to figure the credit for the year in which the expenses are paid, not the year in which the loan is repaid. 2012 online tax return Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. 2012 online tax return Student withdraws from class(es). 2012 online tax return   You can claim an education credit for qualified education expenses not refunded when a student withdraws. 2012 online tax return No Double Benefit Allowed You cannot do any of the following. 2012 online tax return Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim an education credit based on those same expenses. 2012 online tax return Claim more than one education credit based on the same qualified education expenses. 2012 online tax return Claim an education credit based on the same expenses used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or qualified tuition program (QTP). 2012 online tax return Claim an education credit based on qualified education expenses paid with educational assistance, such as a tax-free scholarship, grant, or employer-provided educational assistance. 2012 online tax return See Adjustments to Qualified Education Expenses, next. 2012 online tax return Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid in 2013 by or on behalf of that student under the following rules. 2012 online tax return The result is the amount of adjusted qualified education expenses for each student. 2012 online tax return Tax-free educational assistance. 2012 online tax return   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. 2012 online tax return See Academic period , earlier. 2012 online tax return      Tax-free educational assistance includes:    Tax-free parts of scholarships and fellowships (see chapter 12 of this publication and chapter 1 of Pub. 2012 online tax return 970), The tax-free part of Pell grants (see chapter 1 of Pub. 2012 online tax return 970), The tax-free part of employer-provided educational assistance (see Pub. 2012 online tax return 970), Veterans' educational assistance (see chapter 1 of Pub. 2012 online tax return 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2012 online tax return Generally, any scholarship or fellowship is treated as tax-free educational assistance. 2012 online tax return However, a scholarship or fellowship is not treated as tax-free educational assistance 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: 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. 2012 online tax return 970, chapter 1; or 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. 2012 online tax return 970, chapter 1. 2012 online tax return 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 received. 2012 online tax return For details, see Adjustments of Qualified Education Expenses, in chapters 2 and 3 of Pub. 2012 online tax return 970. 2012 online tax return Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. 2012 online tax return 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). 2012 online tax return 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. 2012 online tax return 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. 2012 online tax return Refunds. 2012 online tax return   A refund of qualified education expenses may reduce qualified education expenses for the tax year or may require you to repay (recapture) the credit that you claimed in an earlier year. 2012 online tax return Some tax-free educational assistance received after 2013 may be treated as a refund. 2012 online tax return See Tax-free educational assistance, earlier. 2012 online tax return Refunds received in 2013. 2012 online tax return   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. 2012 online tax return Refunds received after 2013 but before your income tax return is filed. 2012 online tax return   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student 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. 2012 online tax return Refunds received after 2013 and after your income tax return is filed. 2012 online tax return   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is received after you file your 2013 income tax return, you may need to repay some or all of the credit that you claimed. 2012 online tax return See Credit recapture, next. 2012 online tax return Credit recapture. 2012 online tax return    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. 2012 online tax return You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing the expenses by the amount of the refund or tax-free educational assistance. 2012 online tax return 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). 2012 online tax return Include that amount as an additional tax for the year the refund or tax-free assistance was received. 2012 online tax return Example. 2012 online tax return    You paid $8,000 tuition and fees in December 2013 for your child's Spring semester beginning in January 2014. 2012 online tax return You filed your 2013 tax return on February 3, 2014, and claimed a lifetime learning credit of $1,600 ($8,000 qualified education expense paid x . 2012 online tax return 20). 2012 online tax return You claimed no other tax credits. 2012 online tax return After you filed your return, your child withdrew from two courses and you received a refund of $1,400. 2012 online tax return You must refigure your 2013 lifetime learning credit using $6,600 ($8,000 qualified education expenses − $1,400 refund). 2012 online tax return The refigured credit is $1,320 and your tax liability increased by $280. 2012 online tax return You must include the difference of $280 ($1,600 credit originally claimed − $1,320 refigured credit) as additional tax on your 2014 income tax return. 2012 online tax return See the instructions for your 2014 income tax return to determine where to include this tax. 2012 online tax return If you also pay qualified education expenses in 2014 for an academic period that begins in the first 3 months of 2014 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2014 instead of reducing your expenses for 2013. 2012 online tax return Amounts that do not reduce qualified education expenses. 2012 online tax return   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. 2012 online tax return   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. 2012 online tax return 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 Chapter 1 of Pub. 2012 online tax return 970. 2012 online tax return The use of the money is not restricted. 2012 online tax return   For examples, see chapter 2 in Pub. 2012 online tax return 970. 2012 online tax return Figure 35-A. 2012 online tax return Can You Claim an Education Credit for 2013? This image is too large to be displayed in the current screen. 2012 online tax return Please click the link to view the image. 2012 online tax return Figure 35-A. 2012 online tax return Can You Claim an Education Credit for 2013? Prev  Up  Next   Home   More Online Publications