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

Amendment Tax Return Form

Www Myfreetaxes Com Springfieldmo1040ez H&r BlockE File Tax PreparationWww.myfreetaxes.comFree Tax Calculator2010 Tax Act Online LoginFree Form 1040ez OnlineFile Amended ReturnIrs Gov Form 1040Amend Federal Tax Return2011 Tax Form 1040 Ez2011 Tax Forms 1040File Taxes For Free 2011H & R Block Military1040ez 2012Free 1040ezHow To Amend A Tax Return2012 Federal Tax Forms 1040ezMilitary Onesource TaxFree 2012 Tax FormsHow To File An Amended Federal Tax ReturnFree Tax FormsFile Amended Tax Return FreeHow To Amend A Tax Form1040x Form For 2013Free H&r Block EfileH&r Block TaxAmended Form 1040xE File My State Taxes For Free1040a InstructionsFile 2012 Taxes Free OnlineAmendment Form 1040x1040 Amended Tax FormAmmended Tax ReturnFree Federal And State Tax Filing 20142014 Form 1040ezState Tax Forms Need FillFile Federal Taxes OnlineAmended Tax Return InstructionsTax Planning Us 1040ez

Amendment Tax Return Form

Amendment tax return form 3. Amendment tax return form   Lifetime Learning Credit Table of Contents Introduction Can You Claim the CreditWho Can Claim the Credit Who Cannot Claim the Credit 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 CreditEffect of the Amount of Your Income on the Amount of Your Credit Claiming the Credit Introduction For 2013, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. Amendment tax return form They are the American opportunity credit and the lifetime learning credit. Amendment tax return form This chapter discusses the lifetime learning credit. Amendment tax return form The American opportunity credit is discussed in chapter 2, The American Opportunity Credit . Amendment tax return form This chapter explains: Who can claim the lifetime learning credit, What expenses qualify for the credit, Who is an eligible student, Who can claim a dependent's expenses, How to figure the credit, How to claim the credit, and When the credit must be repaid. Amendment tax return form What is the tax benefit of the lifetime learning credit. Amendment tax return form   For the tax year, you may be able to claim a lifetime learning credit of up to $2,000 for qualified education expenses paid for all eligible students. Amendment tax return form There is no limit on the number of years the lifetime learning credit can be claimed for each student. Amendment tax return form   A tax credit reduces the amount of income tax you may have to pay. Amendment tax return form Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. Amendment tax return form The lifetime learning credit is a nonrefundable credit. Amendment tax return form This means that it can reduce your tax to zero, but if the credit is more than your tax the excess will not be refunded to you. Amendment tax return form   Your allowable lifetime learning credit may be limited by the amount of your income and the amount of your tax. Amendment tax return form Can you claim more than one education credit this year. Amendment tax return form   For each student, you can elect for any year only one of the credits. Amendment tax return form For example, if you elect to take the lifetime learning credit for a child on your 2013 tax return, you cannot, for that same child, also claim the American opportunity credit for 2013. Amendment tax return form   If you are eligible to claim the lifetime learning credit and you are also eligible to claim the American opportunity credit for the same student in the same year, you can choose to claim either credit, but not both. Amendment tax return form   If you pay qualified education expenses for more than one student in the same year, you can choose to take certain credits on a per-student, per-year basis. Amendment tax return form 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. Amendment tax return form Differences between the American opportunity and lifetime learning credits. Amendment tax return form   There are several differences between these two credits. Amendment tax return form For example, you can claim the American opportunity credit for the same student for no more than 4 tax years, but any year in which the Hope Scholarship Credit was claimed counts toward the 4 years. Amendment tax return form However, there is no limit on the number of years for which you can claim a lifetime learning credit based on the same student's expenses. Amendment tax return form The differences between these credits are shown in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 near the end of this publication. Amendment tax return form Overview of the lifetime learning credit. Amendment tax return form   See Table 3-1, Overview of the Lifetime Learning Credit for the basics of the lifetime learning credit. Amendment tax return form The details are discussed in this chapter. Amendment tax return form Can You Claim the Credit The following rules will help you determine if you are eligible to claim the lifetime learning credit on your tax return. Amendment tax return form Who Can Claim the Credit Generally, you can claim the lifetime learning credit if all three of the following requirements are met. Amendment tax return form You pay qualified education expenses of higher education. Amendment tax return form You pay the education expenses for an eligible student. Amendment tax return form The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Amendment tax return form Table 3-1. Amendment tax return form Overview of the Lifetime Learning Credit Maximum credit Up to $2,000 credit per return Limit on modified adjusted gross income (MAGI) $127,000 if married filling jointly;  $63,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable Nonrefundable—credit limited to the amount of tax you must pay on your taxable income Number of years of postsecondary education Available for all years of postsecondary education and for courses to acquire or improve job skills Number of tax years credit available Available for an unlimited number of years Type of program required Student does not need to be pursuing a program leading to a degree or other recognized education credential Number of courses Available for one or more courses Felony drug conviction Felony drug convictions do not make the student ineligible Qualified expenses 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 Note. Amendment tax return form Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. Amendment tax return form “Qualified education expenses” are defined later under Qualified Education Expenses . Amendment tax return form “Eligible students” are defined later under Who Is an Eligible Student . Amendment tax return form A dependent for whom you claim an exemption is defined later under Who Can Claim a Dependent's Expenses . Amendment tax return form You may find Figure 3-1, Can You Claim the Lifetime Learning Credit for 2013 , later, helpful in determining if you can claim a lifetime learning credit on your tax return. Amendment tax return form Who Cannot Claim the Credit You cannot claim the lifetime learning credit for 2013 if any of the following apply. Amendment tax return form Your filing status is married filing separately. Amendment tax return form You are listed as a dependent on another person's tax return (such as your parents'). Amendment tax return form See Who Can Claim a Dependent's Expenses , later. Amendment tax return form Your modified adjusted gross income (MAGI) is $63,000 or more ($127,000 or more in the case of a joint return). Amendment tax return form MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit . Amendment tax return form You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. Amendment tax return form More information on nonresident aliens can be found in Publication 519. Amendment tax return form You claim the American Opportunity Credit (see chapter 2) or a Tuition and Fees Deduction (see chapter 6) for the same student in 2013. Amendment tax return form What Expenses Qualify The lifetime learning credit 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. Amendment tax return form Generally, the credit is allowed for qualified education expenses paid in 2013 for an academic period beginning in 2013 or in the first 3 months of 2014. Amendment tax return form 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 credit. Amendment tax return form Academic period. Amendment tax return form   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Amendment tax return form In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Amendment tax return form Paid with borrowed funds. Amendment tax return form   You can claim a lifetime learning credit for qualified education expenses paid with the proceeds of a loan. Amendment tax return form You use the expenses to figure the lifetime learning credit for the year in which the expenses are paid, not the year in which the loan is repaid. Amendment tax return form Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. Amendment tax return form Student withdraws from class(es). Amendment tax return form   You can claim a lifetime learning credit for qualified education expenses not refunded when a student withdraws. Amendment tax return form Qualified Education Expenses For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. Amendment tax return form The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills. Amendment tax return form Eligible educational institution. Amendment tax return form   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Amendment tax return form S. Amendment tax return form Department of Education. Amendment tax return form It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Amendment tax return form The educational institution should be able to tell you if it is an eligible educational institution. Amendment tax return form   Certain educational institutions located outside the United States also participate in the U. Amendment tax return form S. Amendment tax return form Department of Education's Federal Student Aid (FSA) programs. Amendment tax return form Related expenses. Amendment tax return form   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 for enrollment or attendance. Amendment tax return form Prepaid expenses. Amendment tax return form   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. Amendment tax return form See Academic period , earlier. Amendment tax return form 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). Amendment tax return form 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). Amendment tax return form In the following examples, assume that each student is an eligible student at an eligible educational institution. Amendment tax return form Example 1. Amendment tax return form   Jackson is a sophomore in University V's degree program in dentistry. Amendment tax return form 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. Amendment tax return form Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified expense. Amendment tax return form Example 2. Amendment tax return form   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. Amendment tax return form 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. Amendment tax return form Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Amendment tax return form Donna bought hers at College W's bookstore. Amendment tax return form Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. Amendment tax return form Example 3. Amendment tax return form   When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Amendment tax return form 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 student government. Amendment tax return form No portion of the fee covers personal expenses. Amendment tax return form Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. Amendment tax return form Therefore, it is a qualified expense. Amendment tax return form No Double Benefit Allowed You cannot do any of the following: Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim a lifetime learning credit based on those same expenses. Amendment tax return form Claim a lifetime learning credit in the same year that you are claiming a tuition and fees deduction for the same student. Amendment tax return form Claim a lifetime learning credit and an American opportunity credit based on the same qualified education expenses. Amendment tax return form Claim a lifetime learning 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). Amendment tax return form See Coordination With American Opportunity and Lifetime Learning Credits in chapter 7, Coverdell Education Savings Account, and Coordination With American Opportunity and Lifetime Learning Credits in chapter 8, Qualified Tuition Program. Amendment tax return form Claim a credit based on qualified education expenses paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Amendment tax return form See Adjustments to Qualified Education Expenses, next. Amendment tax return form This image is too large to be displayed in the current screen. Amendment tax return form Please click the link to view the image. Amendment tax return form Figure 3-1 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. Amendment tax return form The result is the amount of adjusted qualified education expenses for each student. Amendment tax return form Tax-free educational assistance. Amendment tax return form   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. Amendment tax return form See Academic period , earlier. Amendment tax return form   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Amendment tax return form This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). Amendment tax return form   If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed , later. Amendment tax return form If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed , later. Amendment tax return form   Tax-free educational 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. Amendment tax return form Generally, any scholarship or fellowship is treated as tax free. Amendment tax return form 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. Amendment tax return form 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. Amendment tax return form The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Amendment tax return form 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. Amendment tax return form For examples, see Coordination with Pell grants and other scholarships, later. Amendment tax return form Refunds. Amendment tax return form   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. Amendment tax return form Some tax-free educational assistance received after 2013 may be treated as a refund. Amendment tax return form See Tax-free educational assistance , earlier. Amendment tax return form Refunds received in 2013. Amendment tax return form   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. Amendment tax return form Refunds received after 2013 but before your income tax return is filed. Amendment tax return form   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. Amendment tax return form Refunds received after 2013 and after your income tax return is filed. Amendment tax return form   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. Amendment tax return form See Credit recapture, next. Amendment tax return form Credit recapture. Amendment tax return form    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. Amendment tax return form 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. Amendment tax return form 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). Amendment tax return form Include that amount as an additional tax for the year the refund or tax-free assistance was received. Amendment tax return form Example. Amendment tax return form   You pay $9,300 in tuition and fees in December 2013, and your child began college in January 2014. Amendment tax return form You filed your 2013 tax return on February 14, 2014, and claimed a lifetime learning credit of $1,860. Amendment tax return form You claimed no other tax credits. Amendment tax return form After you filed your return, your child withdrew from two courses and you received a refund of $2,900. Amendment tax return form You must refigure your 2013 lifetime learning credit using $6,400 of qualified education expenses instead of $9,300. Amendment tax return form The refigured credit is $1,280 and your tax liability increased by $580. Amendment tax return form See instructions for your 2014 income tax return to determine where to include this tax. Amendment tax return form If you 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. Amendment tax return form Amounts that do not reduce qualified education expenses. Amendment tax return form   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Amendment tax return form   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. Amendment tax return form The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses, as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Amendment tax return form The use of the money is not restricted. Amendment tax return form For examples, see Adjustments to Qualified Education Expenses in chapter 2, American Opportunity Credit. Amendment tax return form Coordination with Pell grants and other scholarships. Amendment tax return form   In some cases, you may be able to reduce your tax liability by including scholarships in income. Amendment tax return form If you are claiming an education credit for a claimed dependent who received a scholarship, you may be able to reduce your tax liability if the student includes the scholarship in income. Amendment tax return form The scholarship must be one that may (by its terms) be applied to expenses (such as room and board) other than qualified education expenses. Amendment tax return form Example 1—No scholarship. Amendment tax return form Judy Green, who is unmarried, is taking courses at a public community college to be recertified to teach in public schools. Amendment tax return form Her AGI and her MAGI, for purposes of the credit, are $27,000. Amendment tax return form Judy takes the standard deduction of $5,950 and personal exemption of $3,800, reducing her AGI to taxable income of $17,250 and her tax before credits is $2,156. Amendment tax return form She claims no credits other than the lifetime learning credit. Amendment tax return form In July 2013 she paid $700 for the summer 2013 semester; in August 2013 she paid $1,900 for the fall 2013 semester; and in December 2013 she paid another $1,900 for the spring semester beginning in January 2014. Amendment tax return form Judy and the college meet all requirements for the lifetime learning tax credit. Amendment tax return form She can use all of the $4,500 tuition she paid in 2013 when figuring her 2013 lifetime learning credit. Amendment tax return form She claims a $900 lifetime learning credit and her tax after credits is $1,256. Amendment tax return form Example 2—Scholarship excluded from income. Amendment tax return form The facts are the same as in Example 1—No scholarship, except that Judy was awarded a $1,500 scholarship. Amendment tax return form Under the terms of her scholarship, it may be used to pay any educational expenses, including room and board. Amendment tax return form If Judy excludes the scholarship from income, she will be deemed (for purposes of computing her education credit) as having used the scholarship to pay for tuition, required fees, and course materials. Amendment tax return form Only $3,000 of the $4,500 tuition she paid in 2013 could be used when figuring her 2013 lifetime learning credit. Amendment tax return form Her lifetime learning credit would be reduced to $600 and her tax after credits would be $1,556. Amendment tax return form Example 3—Scholarship included in income. Amendment tax return form The facts are the same as in Example 2—Scholarship excluded from income. Amendment tax return form If, unlike Example 2, Judy includes the $1,500 scholarship in income, she will be deemed to have used the entire scholarship to pay for room and board. Amendment tax return form Judy's AGI will increase to $28,500, her taxable income would be $18,750, and her tax before credits would be $2,381. Amendment tax return form She would be able to use the $4,500 of adjusted qualified education expenses to figure her credit. Amendment tax return form Judy could claim a $900 lifetime learning credit and her tax after credits would be $1,481. Amendment tax return form Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. Amendment tax return form This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Amendment tax return form Sports, games, hobbies, and noncredit courses. Amendment tax return form   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. Amendment tax return form However, if the course of instruction or other education is part of the student's degree program or is taken by the student to acquire or improve job skills, these expenses can qualify. Amendment tax return form Comprehensive or bundled fees. Amendment tax return form   Some eligible educational institutions combine all of their fees for an academic period into one amount. Amendment tax return form If you do not receive or do not have access to an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. Amendment tax return form The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T. Amendment tax return form See Figuring the Credit , later, for more information about Form 1098-T. Amendment tax return form Who Is an Eligible Student For purposes of the lifetime learning credit, 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). Amendment tax return form Who Can Claim a Dependent's Expenses If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both of you, can claim a lifetime learning credit for your dependent's expenses for that year. Amendment tax return form For you to claim a lifetime learning credit for your dependent's expenses, you must also claim an exemption for your dependent. Amendment tax return form You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Amendment tax return form IF you. Amendment tax return form . Amendment tax return form . Amendment tax return form THEN only. Amendment tax return form . Amendment tax return form . Amendment tax return form claim an exemption on your tax return for a dependent who is an eligible student you can claim the lifetime learning credit based on that dependent's expenses. Amendment tax return form The dependent cannot claim the credit. Amendment tax return form do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled to the exemption) the dependent can claim the lifetime learning credit. Amendment tax return form You cannot claim the credit based on this dependent's expenses. Amendment tax return form Expenses paid by dependent. Amendment tax return form   If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Amendment tax return form Include these expenses when figuring the amount of your lifetime learning credit. Amendment tax return form    Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent. Amendment tax return form Expenses paid by you. Amendment tax return form   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the lifetime learning credit. Amendment tax return form If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the lifetime learning credit. Amendment tax return form Expenses paid by others. Amendment tax return form   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. Amendment tax return form In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Amendment tax return form If you claim an exemption on your tax return for the student, you are considered to have paid the expenses. Amendment tax return form Example. Amendment tax return form In 2013, Ms. Amendment tax return form Allen makes a payment directly to an eligible educational institution for her grandson Todd's qualified education expenses. Amendment tax return form For purposes of claiming a lifetime learning credit, Todd is treated as receiving the money from his grandmother and, in turn, paying his qualified education expenses himself. Amendment tax return form Unless an exemption for Todd is claimed on someone else's 2013 tax return, only Todd can use the payment to claim a lifetime learning credit. Amendment tax return form If anyone, such as Todd's parents, claims an exemption for Todd on his or her 2013 tax return, whoever claims the exemption may be able to use the expenses to claim a lifetime learning credit. Amendment tax return form If anyone else claims an exemption for Todd, Todd cannot claim a lifetime learning credit. Amendment tax return form Tuition reduction. Amendment tax return form   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. Amendment tax return form 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. Amendment tax return form For more information on tuition reductions, see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Amendment tax return form Figuring the Credit The amount of the lifetime learning credit is 20% of the first $10,000 of qualified education expenses you paid for all eligible students. Amendment tax return form The maximum amount of lifetime learning credit you can claim for 2013 is $2,000 (20% × $10,000). Amendment tax return form However, that amount may be reduced based on your MAGI. Amendment tax return form See Effect of the Amount of Your Income on the Amount of Your Credit , later. Amendment tax return form Example. Amendment tax return form Bruce and Toni Harper are married and file a joint tax return. Amendment tax return form For 2013, their MAGI is $75,000. Amendment tax return form Toni is attending a local college (an eligible educational institution) to earn credits toward a degree in nursing. Amendment tax return form She already has a bachelor's degree in history and wants to become a nurse. Amendment tax return form In August 2013, Toni paid $5,000 of qualified education expenses for her fall 2013 semester. Amendment tax return form Bruce and Toni can claim a $1,000 (20% × $5,000) lifetime learning credit on their 2013 joint tax return. Amendment tax return form Form 1098-T. Amendment tax return form   To help you figure your lifetime learning credit, the student should receive Form 1098-T. Amendment tax return form Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. Amendment tax return form An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Amendment tax return form However, the amounts in boxes 1 and 2 of Form 1098-T might be different from what you paid. Amendment tax return form When figuring the credit, use only the amounts you paid or are deemed to have paid in 2013 for qualified education expenses. Amendment tax return form   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. Amendment tax return form    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. Amendment tax return form Effect of the Amount of Your Income on the Amount of Your Credit The amount of your lifetime learning credit is phased out (gradually reduced) if your MAGI is between $53,000 and $63,000 ($107,000 and $127,000 if you file a joint return). Amendment tax return form You cannot claim a lifetime learning credit if your MAGI is $63,000 or more ($127,000 or more if you file a joint return). Amendment tax return form Modified adjusted gross income (MAGI). Amendment tax return form   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. Amendment tax return form MAGI when using Form 1040A. Amendment tax return form   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. Amendment tax return form MAGI when using Form 1040. Amendment tax return form   If you file Form 1040, your MAGI is the AGI on line 38 of that form, 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. Amendment tax return form You can use Worksheet 3-1 to figure your MAGI. Amendment tax return form Worksheet 3-1. Amendment tax return form MAGI for the Lifetime Learning Credit 1. Amendment tax return form Enter your adjusted gross income  (Form 1040, line 38)   1. Amendment tax return form   2. Amendment tax return form Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. Amendment tax return form       3. Amendment tax return form Enter your foreign housing deduction (Form 2555, line 50)   3. Amendment tax return form       4. Amendment tax return form Enter the amount of income from Puerto Rico you are excluding   4. Amendment tax return form       5. Amendment tax return form Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. Amendment tax return form       6. Amendment tax return form Add the amounts on lines 2, 3, 4, and 5   6. Amendment tax return form   7. Amendment tax return form Add the amounts on lines 1 and 6. Amendment tax return form  This is your modified adjusted  gross income. Amendment tax return form Enter this amount  on Form 8863, line 14   7. Amendment tax return form   Phaseout. Amendment tax return form   If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit using lines 10-18 of Form 8863. Amendment tax return form The same method is shown in the following example. Amendment tax return form Example. Amendment tax return form You are filing a joint return with a MAGI of $112,000. Amendment tax return form In 2013, you paid $6,600 of qualified education expenses. Amendment tax return form You figure the tentative lifetime learning credit (20% of the first $10,000 of qualified education expenses you paid for all eligible students). Amendment tax return form The result is a $1,320 (20% x $6,600) tentative credit. Amendment tax return form Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($1,320) by a fraction. Amendment tax return form The numerator of the fraction is $127,000 (the upper limit for those filing a joint return) minus your MAGI. Amendment tax return form The denominator is $20,000, the range of incomes for the phaseout ($107,000 to $127,000). Amendment tax return form The result is the amount of your phased out (reduced) lifetime learning credit ($990). Amendment tax return form   $1,320 × $127,000 − $112,000  $20,000 = $990   Claiming the Credit You claim the lifetime learning credit by completing Form 8863 and submitting it with your Form 1040 or 1040A. Amendment tax return form Enter the credit on Form 1040, line 49, or Form 1040A, line 31. Amendment tax return form Note. Amendment tax return form In Appendix A, Illustrated Example of Education Credits at the end of this publication, there is an example illustrating the use of Form 8863 when both the American opportunity credit and the lifetime learning credit are claimed on the same tax return. Amendment tax return form Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Authorized IRS e-file Providers for Individuals

Locate the closest Authorized IRS e-file Providers in your area where you can electronically file your tax return. Simply enter the first 3, 4, or all 5 numbers of your Zip Code in the box below and click the Submit button!

Authorized IRS e-file Provider Locator
 

 



e-file Provider Questions and Answers

 

 


Q. What is an "Authorized IRS e-file Provider"?

A. Tax professionals who are accepted into the electronic filing program are called "Authorized IRS e-file Providers." They are the Electronic Return Originator (ERO) who transmits tax return information to the IRS.

Return to Questions and Answers

 


Q. How does IRS e-file work?

A. You or your tax professional, prepare your tax return. In many cases, the tax professional is also the Electronic Return Originator (ERO) who is authorized to file your return electronically to the IRS. Ask your tax professional to file your return through IRS e-file.

You sign your electronic tax return by either using a Self-Select PIN for e-file for a completely paperless return, or by signing Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return.See " If the return is electronic, how do I sign it?" for more information.

After you sign the return using a Self-Select PIN or Form 8453,the ERO transmits the return to the IRS or to a third-party transmitter who then forwards the entire electronic record to the IRS for processing. Once received at the IRS, the return is automatically checked by computers for errors and missing information. If it cannot be processed, it is sent back to the originating transmitter (usually the ERO) to clarify any necessary information. After correction, the transmitter retransmits the return to the IRS. Within 48 hours of electronically sending your return to IRS, the IRS sends an acknowledgment to the transmitter stating the return is accepted for processing. This is your proof of filing and assurance that the IRS has your return information. The Authorized IRS e-file Provider then sends Form 8453 to the IRS.

If due a refund, you can expect to receive it in approximately three weeks from the acknowledgment date - even faster with Direct Deposit (half the time as when filed on paper). If you owe tax, see "What if I owe Money?" for payment options available this year.

Return to Questions and Answers

 


Q. How will I know that the IRS really has my return?

A. The IRS lets your tax professional know that it has received your return information within 48 hours after electronically sending your return to IRS. If the IRS detects any errors, it sends an error message to the transmitter to correct and retransmit the return to the IRS. Only IRS e-file options offer this advantage.

Return to Questions and Answers

 


Q. If the return is electronic, how do I sign it?

A. The most convenient way for you to sign your electronic return is to use an electronic signature Personal Identification Number (PIN) -- and it's completely paperless!More information on signing your return electronically can be found at Choosing Your Own PIN, or your Tax Preparer can answer any questions you have about electronic signatures. If you do not choose to use one of the electronic signature methods, Self-Select PIN or Practitioner PIN, you must complete and sign the signature document, Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return.

Return to Questions and Answers

 


Q. How accurate is IRS e-file?

A. IRS e-file returns are virtually error-proof with an error rate of less than one percent. IRS e-file greatly reduces the chance that you will get an error letter from the IRS.

Return to Questions and Answers

 


Q. What if I owe money?

A. Your tax professional can file your return electronically any time during the filing season; however, sending the payment for a balance due by April 15 is still your responsibility. You may file electronically as soon as you are ready and will receive a confirmation from the IRS within 48 hours of receipt of your return.

Electronic payment options are convenient, safe and secure methods for paying taxes. You can authorize an electronic funds withdrawal, or use a credit card. Payments can be made 24 hours a day, 7 days a week. All balance due payments, regardless of method of payment, must be authorized or sent to the IRS by April 15 to avoid late payment penalties or interest charges.

Electronic payment options provide an alternative to paying taxes by check or money order and saves you time and we acknowledge receipt of your tax return. If paying by check or money order, you must use Form 1040-V.

Return to Questions and Answers

 


Q. Can I e-file my state return with my Federal return at the same time?

A. Yes. Federal/State e-file, an extension of IRS e-file, is offered in 37 states and the District of Columbia. However, not all Authorized IRS e-file Providers provide this service. Your Authorized IRS e-file Provider can tell you if they participate in the Federal/State e-file program.

Return to Questions and Answers

 


Q. Is there a fee for IRS e-file?

A. The IRS does not charge a fee for electronic filing. Some Authorized IRS e-file Providers (EROs) charge a fee for providing this service to their clients while others may offer it free of charge. However, this fee cannot be based on any figure from the tax return. Fees vary depending upon the tax professional you choose and the specific services you request.

With IRS e-file you can prepare your own return and pay a professional only to transmit it electronically, or you can pay to have your return both prepared and transmitted. Whichever you choose, shop around for a tax professional who offers the services you need at an acceptable cost to you.

Return to Questions and Answers

 


 

Q. Who offers IRS e-file services?

A. Many tax professionals offer IRS e-file to their clients. To find a tax professional to file your return electronically, use the Authorized IRS e-file Provider Locator at the top of this page, or look in your local telephone directory under "Tax Return Preparation" for an "Authorized IRS e-file Provider" that meets your needs. Also, look for the "Authorized IRS e-file Provider" sign or decal in storefront windows.

Return to Questions and Answers

Page Last Reviewed or Updated: 22-Apr-2013

The Amendment Tax Return Form

Amendment tax return form 28. Amendment tax return form   Miscellaneous Deductions Table of Contents What's New Introduction Useful Items - You may want to see: Deductions Subject to the 2% LimitUnreimbursed Employee Expenses (Line 21) Tax Preparation Fees (Line 22) Other Expenses (Line 23) Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses What's New Standard mileage rate. Amendment tax return form  The 2013 rate for business use of a vehicle is 56½ cents per mile. Amendment tax return form Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). Amendment tax return form You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. Amendment tax return form This chapter covers the following topics. Amendment tax return form Deductions subject to the 2% limit. Amendment tax return form Deductions not subject to the 2% limit. Amendment tax return form Expenses you cannot deduct. Amendment tax return form You must keep records to verify your deductions. Amendment tax return form You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. Amendment tax return form For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. Amendment tax return form Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) 946 How To Depreciate Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040). Amendment tax return form You can claim the amount of expenses that is more than 2% of your adjusted gross income. Amendment tax return form You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Amendment tax return form Your adjusted gross income is the amount on Form 1040, line 38. Amendment tax return form Generally, you apply the 2% limit after you apply any other deduction limit. Amendment tax return form For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed in chapter 26) before you apply the 2% limit. Amendment tax return form Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). Amendment tax return form Unreimbursed employee expenses (line 21). Amendment tax return form Tax preparation fees (line 22). Amendment tax return form Other expenses (line 23). Amendment tax return form Unreimbursed Employee Expenses (Line 21) Generally, you can deduct on Schedule A (Form 1040), line 21, unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. Amendment tax return form An expense is ordinary if it is common and accepted in your trade, business, or profession. Amendment tax return form An expense is necessary if it is appropriate and helpful to your business. Amendment tax return form An expense does not have to be required to be considered necessary. Amendment tax return form Examples of unreimbursed employee expenses are listed next. Amendment tax return form The list is followed by discussions of additional unreimbursed employee expenses. Amendment tax return form Business bad debt of an employee. Amendment tax return form Education that is work related. Amendment tax return form (See chapter 27. Amendment tax return form ) Legal fees related to your job. Amendment tax return form Licenses and regulatory fees. Amendment tax return form Malpractice insurance premiums. Amendment tax return form Medical examinations required by an employer. Amendment tax return form Occupational taxes. Amendment tax return form Passport for a business trip. Amendment tax return form Subscriptions to professional journals and trade magazines related to your work. Amendment tax return form Travel, transportation, entertainment, and gifts related to your work. Amendment tax return form (See chapter 26. Amendment tax return form ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Amendment tax return form Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer that are attributable to the pay you received from that employer. Amendment tax return form Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. Amendment tax return form For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. Amendment tax return form Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Amendment tax return form Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Amendment tax return form Lobbying and political activities. Amendment tax return form   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Amendment tax return form See Dues used for lobbying under Nondeductible Expenses, later. Amendment tax return form Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. Amendment tax return form If you file Form 1040A, you can deduct these expenses on line 16. Amendment tax return form If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Amendment tax return form However, neither spouse can deduct more than $250 of his or her qualified expenses. Amendment tax return form Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. Amendment tax return form You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. Amendment tax return form The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Amendment tax return form See Publication 587 for more detailed information and a worksheet. Amendment tax return form Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. Amendment tax return form You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. Amendment tax return form Employment and outplacement agency fees. Amendment tax return form   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Amendment tax return form Employer pays you back. Amendment tax return form   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. Amendment tax return form (See Recoveries in chapter 12. Amendment tax return form ) Employer pays the employment agency. Amendment tax return form   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. Amendment tax return form Résumé. Amendment tax return form   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. Amendment tax return form Travel and transportation expenses. Amendment tax return form   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. Amendment tax return form You can deduct the travel expenses if the trip is primarily to look for a new job. Amendment tax return form The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. Amendment tax return form   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. Amendment tax return form   You can choose to use the standard mileage rate to figure your car expenses. Amendment tax return form The 2013 rate for business use of a vehicle is 56½ cents per mile. Amendment tax return form See chapter 26 for more information. Amendment tax return form Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. Amendment tax return form Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Amendment tax return form If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. Amendment tax return form Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. Amendment tax return form If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. Amendment tax return form Research Expenses of a College Professor If you are a college professor, you can deduct research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Amendment tax return form You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. Amendment tax return form However, you cannot deduct the cost of travel as a form of education. Amendment tax return form Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. Amendment tax return form You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Amendment tax return form For more information about depreciation, see Publication 946. Amendment tax return form Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Amendment tax return form You can also deduct assessments for benefit payments to unemployed union members. Amendment tax return form However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Amendment tax return form Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. Amendment tax return form You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Amendment tax return form See Lobbying Expenses under Nondeductible Expenses, later. Amendment tax return form Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Amendment tax return form You must wear them as a condition of your employment. Amendment tax return form The clothes are not suitable for everyday wear. Amendment tax return form It is not enough that you wear distinctive clothing. Amendment tax return form The clothing must be specifically required by your employer. Amendment tax return form Nor is it enough that you do not, in fact, wear your work clothes away from work. Amendment tax return form The clothing must not be suitable for taking the place of your regular clothing. Amendment tax return form Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. Amendment tax return form ). Amendment tax return form Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Amendment tax return form However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Amendment tax return form Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Amendment tax return form Protective clothing. Amendment tax return form   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. Amendment tax return form   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. Amendment tax return form Military uniforms. Amendment tax return form   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Amendment tax return form However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. Amendment tax return form In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Amendment tax return form   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. Amendment tax return form   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Amendment tax return form Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. Amendment tax return form Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Amendment tax return form These fees include the cost of tax preparation software programs and tax publications. Amendment tax return form They also include any fee you paid for electronic filing of your return. Amendment tax return form Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. Amendment tax return form On Schedule A (Form 1040), line 23, you can deduct expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. Amendment tax return form You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. Amendment tax return form Some of these other expenses are explained in the following discussions. Amendment tax return form If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. Amendment tax return form Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Amendment tax return form Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. Amendment tax return form First report the loss in Section B of Form 4684, Casualties and Thefts. Amendment tax return form You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Amendment tax return form To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Amendment tax return form For other casualty and theft losses, see chapter 25. Amendment tax return form Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. Amendment tax return form Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. Amendment tax return form The fees are deductible in the year paid. Amendment tax return form Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). Amendment tax return form You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Amendment tax return form But if you work as an employee and also use the computer in that work, see Publication 946. Amendment tax return form Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. Amendment tax return form Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Amendment tax return form The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. Amendment tax return form For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Amendment tax return form Fees to Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. Amendment tax return form But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Amendment tax return form You must add the fee to the cost of the property. Amendment tax return form You cannot deduct the fee you pay to a broker to sell securities. Amendment tax return form You can use the fee only to figure gain or loss from the sale. Amendment tax return form See the Instructions for Form 8949 for information on how to report the fee. Amendment tax return form Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Amendment tax return form A hobby is not a business because it is not carried on to make a profit. Amendment tax return form See Activity not for profit in chapter 12 under Other Income. Amendment tax return form Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Amendment tax return form Deductions of pass-through entities are passed through to the partners or shareholders. Amendment tax return form The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Amendment tax return form Example. Amendment tax return form You are a member of an investment club that is formed solely to invest in securities. Amendment tax return form The club is treated as a partnership. Amendment tax return form The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Amendment tax return form In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Amendment tax return form However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. Amendment tax return form Publicly offered mutual funds. Amendment tax return form   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Amendment tax return form A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. Amendment tax return form   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). Amendment tax return form This net figure is the amount you report on your return as income. Amendment tax return form You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Amendment tax return form Information returns. Amendment tax return form   You should receive information returns from pass-through entities. Amendment tax return form Partnerships and S corporations. Amendment tax return form   These entities issue Schedule K-1, which lists the items and amounts you must report and identifies the tax return schedules and lines to use. Amendment tax return form Nonpublicly offered mutual funds. Amendment tax return form   These funds will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing your share of gross income and investment expenses. Amendment tax return form You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Amendment tax return form Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. Amendment tax return form Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Amendment tax return form You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce, if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. Amendment tax return form You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F), on the appropriate schedule. Amendment tax return form You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). Amendment tax return form See Tax Preparation Fees , earlier. Amendment tax return form Loss on Deposits For information on whether, and if so, how, you may deduct a loss on your deposit in a qualified financial institution, see Loss on Deposits in chapter 25. Amendment tax return form Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. Amendment tax return form If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Amendment tax return form If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Amendment tax return form Repayments of Social Security Benefits For information on how to deduct your repayments of certain social security benefits, see Repayments More Than Gross Benefits in chapter 11. Amendment tax return form Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. Amendment tax return form You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Amendment tax return form Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Amendment tax return form These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. Amendment tax return form Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your individual retirement arrangement (IRA) are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Amendment tax return form For more information about IRAs, see chapter 17. Amendment tax return form Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Amendment tax return form They are not subject to the 2% limit. Amendment tax return form Report these items on Schedule A (Form 1040), line 28. Amendment tax return form List of Deductions Each of the following items is discussed in detail after the list (except where indicated). Amendment tax return form Amortizable premium on taxable bonds. Amendment tax return form Casualty and theft losses from income- producing property. Amendment tax return form Federal estate tax on income in respect of a decedent. Amendment tax return form Gambling losses up to the amount of gambling winnings. Amendment tax return form Impairment-related work expenses of persons with disabilities. Amendment tax return form Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Amendment tax return form Losses from Ponzi-type investment schemes. Amendment tax return form See Losses from Ponzi-type investment schemes under Theft in chapter 25. Amendment tax return form Repayments of more than $3,000 under a claim of right. Amendment tax return form Unrecovered investment in an annuity. Amendment tax return form Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. Amendment tax return form You can elect to amortize the premium on taxable bonds. Amendment tax return form The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Amendment tax return form Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. Amendment tax return form For more information, see Amortizable Premium on Taxable Bonds in Publication 529, and Bond Premium Amortization in chapter 3 of Publication 550, Investment Income and Expenses. Amendment tax return form Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). Amendment tax return form First, report the loss in Form 4684, Section B. Amendment tax return form You may also have to include the loss on Form 4797, Sales of Business Property if you are otherwise required to file that form. Amendment tax return form To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Amendment tax return form For more information on casualty and theft losses, see chapter 25. Amendment tax return form Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Amendment tax return form Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Amendment tax return form See Publication 559 for more information. Amendment tax return form Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. Amendment tax return form You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Amendment tax return form You cannot deduct gambling losses that are more than your winnings. Amendment tax return form You cannot reduce your gambling winnings by your gambling losses and report the difference. Amendment tax return form You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Amendment tax return form Therefore, your records should show your winnings separately from your losses. Amendment tax return form Diary of winnings and losses. Amendment tax return form You must keep an accurate diary or similar record of your losses and winnings. Amendment tax return form Your diary should contain at least the following information. Amendment tax return form The date and type of your specific wager or wagering activity. Amendment tax return form The name and address or location of the gambling establishment. Amendment tax return form The names of other persons present with you at the gambling establishment. Amendment tax return form The amount(s) you won or lost. Amendment tax return form See Publication 529 for more information. Amendment tax return form Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. Amendment tax return form Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and for other expenses in connection with your place of work that are necessary for you to be able to work. Amendment tax return form Self-employed. Amendment tax return form   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Amendment tax return form Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28. Amendment tax return form It is not subject to the passive activity limitations. Amendment tax return form Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid or take a credit against your tax. Amendment tax return form See Repayments in chapter 12 for more information. Amendment tax return form Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. Amendment tax return form If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. Amendment tax return form See chapter 10 for more information about the tax treatment of pensions and annuities. Amendment tax return form Nondeductible Expenses Examples of nondeductible expenses are listed next. Amendment tax return form The list is followed by discussions of additional nondeductible expenses. Amendment tax return form List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. Amendment tax return form Burial or funeral expenses, including the cost of a cemetery lot. Amendment tax return form Capital expenses. Amendment tax return form Fees and licenses, such as car licenses, marriage licenses, and dog tags. Amendment tax return form Hobby losses, but see Hobby Expenses , earlier. Amendment tax return form Home repairs, insurance, and rent. Amendment tax return form Illegal bribes and kickbacks. Amendment tax return form See Bribes and kickbacks in chapter 11 of Publication 535. Amendment tax return form Losses from the sale of your home, furniture, personal car, etc. Amendment tax return form Personal disability insurance premiums. Amendment tax return form Personal, living, or family expenses. Amendment tax return form The value of wages never received or lost vacation time. Amendment tax return form Adoption Expenses You cannot deduct the expenses of adopting a child, but you may be able to take a credit for those expenses. Amendment tax return form See chapter 37. Amendment tax return form Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Amendment tax return form These include qualification and registration fees for primary elections. Amendment tax return form Legal fees. Amendment tax return form   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Amendment tax return form Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. Amendment tax return form Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Amendment tax return form This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Amendment tax return form You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. Amendment tax return form Dues paid to airline, hotel, and luncheon clubs are not deductible. Amendment tax return form Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Amendment tax return form If you haul tools, instruments, or other items, in your car to and from work, you can deduct only the additional cost of hauling the items such as the rent on a trailer to carry the items. Amendment tax return form Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Amendment tax return form This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Amendment tax return form Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Amendment tax return form Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. Amendment tax return form Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Amendment tax return form However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Amendment tax return form See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. Amendment tax return form Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Amendment tax return form Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Amendment tax return form You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Amendment tax return form See chapter 18 for information on alimony. Amendment tax return form Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Amendment tax return form These include expenses to: Influence legislation, Participate or intervene in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. Amendment tax return form Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Amendment tax return form Dues used for lobbying. Amendment tax return form   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. Amendment tax return form See Lobbying Expenses in Publication 529 for information on exceptions. Amendment tax return form Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Amendment tax return form However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Amendment tax return form See chapter 25. Amendment tax return form Example. Amendment tax return form A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Amendment tax return form The diamond falls from the ring and is never found. Amendment tax return form The loss of the diamond is a casualty. Amendment tax return form Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Amendment tax return form See chapter 26 for information on deductible expenses while traveling away from home. Amendment tax return form Meals While Working Late You cannot deduct the cost of meals while working late. Amendment tax return form However, you may be able to claim a deduction if the cost of meals is a deductible entertainment expense, or if you are traveling away from home. Amendment tax return form See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. Amendment tax return form Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Amendment tax return form Custody of children. Amendment tax return form Breach of promise to marry suit. Amendment tax return form Civil or criminal charges resulting from a personal relationship. Amendment tax return form Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. Amendment tax return form Preparation of a title (or defense or perfection of a title). Amendment tax return form Preparation of a will. Amendment tax return form Property claims or property settlement in a divorce. Amendment tax return form You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Amendment tax return form Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Amendment tax return form Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Amendment tax return form Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Amendment tax return form Accounting certificate fees paid for the initial right to practice accounting. Amendment tax return form Bar exam fees and incidental expenses in securing initial admission to the bar. Amendment tax return form Medical and dental license fees paid to get initial licensing. Amendment tax return form Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Amendment tax return form Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. Amendment tax return form Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. Amendment tax return form Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. Amendment tax return form You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Amendment tax return form Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Amendment tax return form You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. Amendment tax return form If you have expenses to produce both taxable and tax-exempt income, but you cannot identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct. Amendment tax return form Example. Amendment tax return form During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. Amendment tax return form In earning this income, you had total expenses of $500 during the year. Amendment tax return form You cannot identify the amount of each expense item that is for each income item. Amendment tax return form Therefore, 80% ($4,800/$6,000) of the expense is for the taxable interest and 20% ($1,200/$6,000) is for the tax-exempt interest. Amendment tax return form You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). Amendment tax return form Travel Expenses for Another Individual You generally cannot deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on business or personal travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. Amendment tax return form See chapter 26 for more information on deductible travel expenses. Amendment tax return form Voluntary Unemployment Benefit Fund Contributions You cannot deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. Amendment tax return form However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions. Amendment tax return form Wristwatches You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties. Amendment tax return form Prev  Up  Next   Home   More Online Publications