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Form 1040nr Ez

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Form 1040nr Ez

Form 1040nr ez Publication 3 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. Form 1040nr ez Tax questions. Form 1040nr ez Useful Items - You may want to see: What's New Earned income credit. Form 1040nr ez  The maximum income you can earn and still claim the earned income credit has increased. Form 1040nr ez You may be able to take the earned income credit if you earned less than $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children; $43,038 ($48,378 for married filing jointly) if you have two qualifying children; $37,870 ($43,210 for married filing jointly) if you have one qualifying child; and $14,340 ($19,680 for married filing jointly) if you do not have any qualifying children. Form 1040nr ez See Earned Income Credit , later, under Credits. Form 1040nr ez Standard mileage rate. Form 1040nr ez  The standard mileage rate for the cost of operating your car for business use in 2013 is 56. Form 1040nr ez 5 cents a mile. Form 1040nr ez The standard mileage rate for operating your car during 2013 to get medical care or to move is 24 cents a mile. Form 1040nr ez The standard mileage rate for charitable use of your vehicle is 14 cents a mile. Form 1040nr ez Filing status for same-sex married couples. Form 1040nr ez  If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. Form 1040nr ez See Filing Returns , later. Form 1040nr ez Reminders Change of address. Form 1040nr ez  If you change your mailing address, be sure to notify the Internal Revenue Service (IRS) using Form 8822, Change of Address. Form 1040nr ez Mail it to the Internal Revenue Service Center for your old address. Form 1040nr ez (Addresses for the Service Centers are on the back of the form. Form 1040nr ez ) Use Form 8822-B, Change of Address or Responsible Party—Business, if you are changing a business address. Form 1040nr ez Third party designee. Form 1040nr ez  You can check the “Yes” box in the Third Party Designee area of your return to authorize the IRS to discuss your return with your preparer, a friend, a family member, or any other person you choose. Form 1040nr ez This allows the IRS to call the person you identified as your designee to answer any questions that may arise during the processing of your tax return. Form 1040nr ez It also allows your designee to perform certain actions. Form 1040nr ez See your income tax instructions for details. Form 1040nr ez Future developments. Form 1040nr ez  For the latest information about developments related to Publication 3, such as legislation enacted after it was published, go to www. Form 1040nr ez irs. Form 1040nr ez gov/pub3. Form 1040nr ez Photographs of missing children. Form 1040nr ez  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Form 1040nr ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Form 1040nr ez You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Form 1040nr ez Introduction This publication covers the special tax situations of active members of the U. Form 1040nr ez S. Form 1040nr ez Armed Forces. Form 1040nr ez It does not cover military pensions or veterans' benefits or give the basic tax rules that apply to all taxpayers. Form 1040nr ez For information on military pensions or veterans' benefits, see Publication 525, Taxable and Nontaxable Income. Form 1040nr ez If you need the basic tax rules or information on another subject not covered here, you can check our other free publications. Form 1040nr ez See Publication 910, IRS Guide to Free Tax Services, for a list and descriptions of the different tax publications. Form 1040nr ez For federal tax purposes, the U. Form 1040nr ez S. Form 1040nr ez Armed Forces includes commissioned officers, warrant officers, and enlisted personnel in all regular and reserve units under control of the Secretaries of the Defense, Army, Navy, and Air Force. Form 1040nr ez The U. Form 1040nr ez S. Form 1040nr ez Armed Forces also includes the Coast Guard. Form 1040nr ez It does not include the U. Form 1040nr ez S. Form 1040nr ez Merchant Marine or the American Red Cross. Form 1040nr ez Members serving in an area designated or treated as a combat zone are granted special tax benefits. Form 1040nr ez In the event an area ceases to be a combat zone, the IRS will do its best to notify you. Form 1040nr ez Many of the relief provisions will end at that time. Form 1040nr ez Comments and suggestions. Form 1040nr ez   We welcome your comments about this publication and your suggestions for future editions. Form 1040nr ez   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Form 1040nr ez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Form 1040nr ez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Form 1040nr ez   You can send your comments from www. Form 1040nr ez irs. Form 1040nr ez gov/formspubs. Form 1040nr ez Click on “More Information” and then on “Comment on Tax Forms and Publications. Form 1040nr ez ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Form 1040nr ez Ordering forms and publications. Form 1040nr ez   Visit www. Form 1040nr ez irs. Form 1040nr ez gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Form 1040nr ez Internal Revenue Service 1201 N. Form 1040nr ez Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Form 1040nr ez   If you have a tax question, check the information available on IRS. Form 1040nr ez gov or call 1-800-829-1040. Form 1040nr ez We cannot answer tax questions sent to either of the above addresses. Form 1040nr ez Useful Items - You may want to see: Publication 54 Tax Guide for U. Form 1040nr ez S. Form 1040nr ez Citizens and Resident Aliens Abroad 463 Travel, Entertainment, Gift, and Car Expenses 501 Exemptions, Standard Deduction, and Filing Information 503 Child and Dependent Care Expenses 505 Tax Withholding and Estimated Tax 516 U. Form 1040nr ez S. Form 1040nr ez Government Civilian Employees Stationed Abroad 519 U. Form 1040nr ez S. Form 1040nr ez Tax Guide for Aliens 521 Moving Expenses 523 Selling Your Home 525 Taxable and Nontaxable Income 527 Residential Rental Property 529 Miscellaneous Deductions 559 Survivors, Executors, and Administrators 590 Individual Retirement Arrangements (IRAs) 596 Earned Income Credit (EIC) 970 Tax Benefits for Education 3920 Tax Relief for Victims of Terrorist Attacks Form (and Instructions) 1040X Amended U. Form 1040nr ez S. Form 1040nr ez Individual Income Tax Return 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer 2848 Power of Attorney and Declaration of Representative 3903 Moving Expenses 4868 Application for Automatic Extension of Time To File U. Form 1040nr ez S. Form 1040nr ez Individual Income Tax Return 8822 Change of Address 8822-B Change of Address or Responsible Party—Business 9465 Installment Agreement Request See How To Get Tax Help near the end of this publication, for information about getting IRS publications and forms. Form 1040nr ez Prev  Up  Next   Home   More Online Publications
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The Form 1040nr Ez

Form 1040nr ez 1. Form 1040nr ez   Scholarships, Fellowships, Grants, and Tuition Reductions Table of Contents Reminder Introduction Scholarships and FellowshipsTax-Free Scholarships and Fellowships Taxable Scholarships and Fellowships Reporting Scholarships and Fellowships Other Types of Educational AssistanceFulbright Grants Pell Grants and Other Title IV Need-Based Education Grants Payment to Service Academy Cadets Veterans' Benefits Qualified Tuition Reduction Reminder Individual retirement arrangements (IRAs). Form 1040nr ez  You can set up and make contributions to an IRA if you receive taxable compensation. Form 1040nr ez Under this rule, a taxable scholarship or fellowship is compensation only if it is shown in box 1 of your Form W-2, Wage and Tax Statement. Form 1040nr ez For more information about IRAs, see Publication 590. Form 1040nr ez Introduction This chapter discusses the income tax treatment of various types of educational assistance you may receive if you are studying, teaching, or researching in the United States. Form 1040nr ez The educational assistance can be for a primary or secondary school, a college or university, or a vocational school. Form 1040nr ez Included are discussions of: Scholarships, Fellowships, Need-based education grants, such as a Pell Grant, and Qualified tuition reductions. Form 1040nr ez Many types of educational assistance are tax free if they meet the requirements discussed here. Form 1040nr ez Special rules apply to U. Form 1040nr ez S. Form 1040nr ez citizens and resident aliens who have received scholarships or fellowships for studying, teaching, or researching abroad. Form 1040nr ez For information about these rules, see Publication 54, Tax Guide for U. Form 1040nr ez S. Form 1040nr ez Citizens and Resident Aliens Abroad. Form 1040nr ez Scholarships and Fellowships A scholarship is generally an amount paid or allowed to, or for the benefit of, a student (whether an undergraduate or a graduate) at an educational institution to aid in the pursuit of his or her studies. Form 1040nr ez A fellowship is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research. Form 1040nr ez Amount of scholarship or fellowship. Form 1040nr ez   The amount of a scholarship or fellowship includes the following: The value of contributed services and accommodations. Form 1040nr ez This includes such services and accommodations as room (lodging), board (meals), laundry service, and similar services or accommodations that are received by an individual as a part of a scholarship or fellowship. Form 1040nr ez The amount of tuition, matriculation, and other fees that are paid or remitted to the student to aid the student in pursuing study or research. Form 1040nr ez Any amount received in the nature of a family allowance as a part of a scholarship or fellowship. Form 1040nr ez Tax-Free Scholarships and Fellowships A scholarship or fellowship is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution. Form 1040nr ez A scholarship or fellowship is tax free only to the extent: It does not exceed your expenses; It is not designated or earmarked for other purposes (such as room and board), and does not require (by its terms) that it cannot be used for qualified education expenses; and It does not represent payment for teaching, research, or other services required as a condition for receiving the scholarship. Form 1040nr ez (But for exceptions, see Payment for services,later. Form 1040nr ez Use Worksheet 1–1 to figure the amount of a scholarship or fellowship you can exclude from gross income. Form 1040nr ez Candidate for a degree. Form 1040nr ez   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an educational institution that: Provides a program that is acceptable for full credit toward a bachelor's or higher degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and Is authorized under federal or state law to provide such a program and is accredited by a nationally recognized accreditation agency. Form 1040nr ez Eligible educational institution. Form 1040nr ez   An eligible educational institution is one whose primary function is the presentation of formal instruction and that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Form 1040nr ez Qualified education expenses. Form 1040nr ez   For purposes of tax-free scholarships and fellowships, these are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Form 1040nr ez These items must be required of all students in your course of instruction. Form 1040nr ez Expenses that do not qualify. Form 1040nr ez   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. Form 1040nr ez Payment for services. Form 1040nr ez   Generally, you cannot exclude from your gross income the part of any scholarship or fellowship that represents payment for teaching, research, or other services required as a condition for receiving the scholarship. Form 1040nr ez This applies even if all candidates for a degree must perform the services to receive the degree. Form 1040nr ez (See exceptions next. Form 1040nr ez ) Exceptions. Form 1040nr ez   You do not have to treat as payment for services the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. Form 1040nr ez Example 1. Form 1040nr ez You received a scholarship of $2,500. Form 1040nr ez The scholarship was not received under either of the exceptions mentioned above. Form 1040nr ez As a condition for receiving the scholarship, you must serve as a part-time teaching assistant. Form 1040nr ez Of the $2,500 scholarship, $1,000 represents payment for teaching. Form 1040nr ez The provider of your scholarship gives you a Form W-2 showing $1,000 as income. Form 1040nr ez Your qualified education expenses were at least $1,500. Form 1040nr ez Assuming that all other conditions are met, $1,500 of your scholarship is tax free. Form 1040nr ez The $1,000 you received for teaching is taxable. Form 1040nr ez Example 2. Form 1040nr ez You are a candidate for a degree at a medical school. Form 1040nr ez You receive a scholarship (not under either of the exceptions mentioned above) for your medical education and training. Form 1040nr ez The terms of your scholarship require you to perform future services. Form 1040nr ez A substantial penalty applies if you do not comply. Form 1040nr ez The entire amount of your grant is taxable as payment for services in the year it is received. Form 1040nr ez Athletic Scholarships An athletic scholarship is tax free only if and to the extent it meets the requirements discussed later. Form 1040nr ez Worksheet 1-1. Form 1040nr ez    You can use Worksheet 1-1, Taxable Scholarship and Fellowship Income , later, to figure the tax-free and taxable parts of your athletic scholarship. Form 1040nr ez    Worksheet 1-1. Form 1040nr ez Taxable Scholarship and Fellowship Income 1. Form 1040nr ez Enter the total amount of any scholarship or fellowship for 2013. Form 1040nr ez See Amount of scholarship or fellowship, earlier. Form 1040nr ez 1. Form 1040nr ez       If you are a degree candidate at an eligible educational institution, go to line 2. Form 1040nr ez If you are not a degree candidate at an eligible educational institution, stop here. Form 1040nr ez The entire amount is taxable. Form 1040nr ez For information on how to report this amount on your tax return, see Reporting Scholarships and Fellowships , earlier, in this chapter. Form 1040nr ez       2. Form 1040nr ez Enter the amount from line 1 that was for teaching, research, or any other services required as a condition for receiving the scholarship. Form 1040nr ez (Do not include amounts received for these items under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program. Form 1040nr ez ) 2. Form 1040nr ez     3. Form 1040nr ez Subtract line 2 from line 1 3. Form 1040nr ez     4. Form 1040nr ez Enter the amount from line 3 that your scholarship or fellowship required you to use for other than qualified education expenses 4. Form 1040nr ez     5. Form 1040nr ez Subtract line 4 from line 3 5. Form 1040nr ez     6. Form 1040nr ez Enter the amount of your qualified education expenses 6. Form 1040nr ez     7. Form 1040nr ez Enter the smaller of line 5 or line 6. Form 1040nr ez This amount is the most you can exclude from your gross income (the tax-free part of the scholarship or fellowship) 7. Form 1040nr ez     8. Form 1040nr ez Subtract line 7 from line 5 8. Form 1040nr ez     9. Form 1040nr ez Taxable part. Form 1040nr ez Add lines 2, 4, and 8. Form 1040nr ez See Reporting Scholarships and Fellowships , earlier, for how to report this amount on your tax return 9. Form 1040nr ez     Taxable Scholarships and Fellowships If and to the extent your scholarship or fellowship does not meet the requirements described earlier, it is taxable and must be included in gross income. Form 1040nr ez You can use Worksheet 1–1, Taxable Scholarship and Fellowship Income, later, to figure the tax-free and taxable parts of your scholarship or fellowship. Form 1040nr ez Reporting Scholarships and Fellowships Whether you must report your scholarship or fellowship depends on whether you must file a return and whether any part of your scholarship or fellowship is taxable. Form 1040nr ez If your only income is a completely tax-free scholarship or fellowship, you do not have to file a tax return and no reporting is necessary. Form 1040nr ez If all or part of your scholarship or fellowship is taxable and you are required to file a tax return, report the taxable amount as explained below. Form 1040nr ez You must report the taxable amount whether or not you received a Form W-2. Form 1040nr ez If you receive an incorrect Form W-2, ask the payer for a corrected one. Form 1040nr ez For information on whether you must file a return, see Publication 501, Exemptions, Standard Deduction, and Filing Information, or your income tax form instructions. Form 1040nr ez How To Report How you report any taxable scholarship or fellowship income depends on which return you file. Form 1040nr ez Form 1040EZ. Form 1040nr ez   If you file Form 1040EZ, include the taxable amount in the total on line 1. Form 1040nr ez If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 1. Form 1040nr ez Form 1040A. Form 1040nr ez   If you file Form 1040A, include the taxable amount in the total on line 7. Form 1040nr ez If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 7. Form 1040nr ez Form 1040. Form 1040nr ez   If you file Form 1040, include the taxable amount in the total on line 7. Form 1040nr ez If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 7. Form 1040nr ez Schedule SE (Form 1040). Form 1040nr ez   To determine your net earnings from self-employment, include amounts you receive under a scholarship as pay for your services that are reported to you on Form 1099-MISC, Miscellaneous Income. Form 1040nr ez If your net earnings are $400 or more, you must pay self-employment tax. Form 1040nr ez Use Schedule SE, Self-Employment Tax, to figure this tax. Form 1040nr ez Form 1040NR. Form 1040nr ez   If you file Form 1040NR, report the taxable amount on line 12. Form 1040nr ez Generally, you must report the amount shown in box 2 of Form(s) 1042-S, Foreign Person's U. Form 1040nr ez S. Form 1040nr ez Source Income Subject to Withholding. Form 1040nr ez See the Instructions for Form 1040NR for more information. Form 1040nr ez Form 1040NR-EZ. Form 1040nr ez   If you file Form 1040NR-EZ, report the taxable amount on line 5. Form 1040nr ez Generally, you must report the amount shown in box 2 of Form(s) 1042-S. Form 1040nr ez See the Instructions for Form 1040NR-EZ for more information. Form 1040nr ez Other Types of Educational Assistance The following discussions deal with other common types of educational assistance. Form 1040nr ez Fulbright Grants A Fulbright grant is generally treated as a scholarship or fellowship in figuring how much of the grant is tax free. Form 1040nr ez Pell Grants and Other Title IV Need-Based Education Grants These need-based grants are treated as scholarships for purposes of determining their tax treatment. Form 1040nr ez They are tax free to the extent used for qualified education expenses during the period for which a grant is awarded. Form 1040nr ez Payment to Service Academy Cadets An appointment to a United States military academy is not a scholarship or fellowship. Form 1040nr ez Payment you receive as a cadet or midshipman at an armed services academy is pay for personal services and will be reported to you in box 1 of Form W-2. Form 1040nr ez Include this pay in your income in the year you receive it unless one of the exceptions, discussed earlier under Payment for services , applies. Form 1040nr ez Veterans' Benefits Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax free. Form 1040nr ez Do not include these payments as income on your federal tax return. Form 1040nr ez If you qualify for one or more of the education benefits discussed in chapters 2 through 12, you may have to reduce the amount of education expenses qualifying for a specific benefit by part or all of your VA payments. Form 1040nr ez This applies only to the part of your VA payments that is required to be used for education expenses. Form 1040nr ez You may want to visit the Veteran's Administration website at www. Form 1040nr ez gibill. Form 1040nr ez va. Form 1040nr ez gov for specific information about the various VA benefits for education. Form 1040nr ez Example. Form 1040nr ez You have returned to college and are receiving two education benefits under the latest GI Bill: (1) a $1,534 monthly basic housing allowance (BHA) that is directly deposited to your checking account, and (2) $3,840 paid directly to your college for tuition. Form 1040nr ez Neither of these benefits is taxable and you do not report them on your tax return. Form 1040nr ez You also want to claim an American opportunity credit on your return. Form 1040nr ez You paid $5,000 in qualified education expenses (see chapter 2, American Opportunity Credit , later). Form 1040nr ez To figure the amount of credit, you must first subtract the $3,840 from your qualified education expenses because this payment under the GI Bill was required to be used for education expenses. Form 1040nr ez You do not subtract any amount of the BHA because it was paid to you and its use was not restricted. Form 1040nr ez Qualified Tuition Reduction If you are allowed to study tuition free or for a reduced rate of tuition, you may not have to pay tax on this benefit. Form 1040nr ez This is called a “tuition reduction. Form 1040nr ez ” You do not have to include a qualified tuition reduction in your income. Form 1040nr ez A tuition reduction is qualified only if you receive it from, and use it at, an eligible educational institution. Form 1040nr ez You do not have to use the tuition reduction at the eligible educational institution from which you received it. Form 1040nr ez In other words, if you work for an eligible educational institution and the institution arranges for you to take courses at another eligible educational institution without paying any tuition, you may not have to include the value of the free courses in your income. Form 1040nr ez The rules for determining if a tuition reduction is qualified, and therefore tax free, are different if the education provided is below the graduate level or is graduate education. Form 1040nr ez You must include in your income any tuition reduction you receive that is payment for your services. Form 1040nr ez Eligible educational institution. Form 1040nr ez   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Form 1040nr ez Officers, owners, and highly compensated employees. Form 1040nr ez   Qualified tuition reductions apply to officers, owners, or highly compensated employees only if benefits are available to employees on a nondiscriminatory basis. Form 1040nr ez This means that the tuition reduction benefits must be available on substantially the same basis to each member of a group of employees. Form 1040nr ez The group must be defined under a reasonable classification set up by the employer. Form 1040nr ez The classification must not discriminate in favor of owners, officers, or highly compensated employees. Form 1040nr ez Payment for services. Form 1040nr ez   Generally, you must include in income the part of any qualified tuition reduction that represents payment for teaching, research, or other services by the student required as a condition of receiving the qualified tuition reduction. Form 1040nr ez This applies even if all candidates for a degree must perform the services to receive the degree. Form 1040nr ez (See below for exceptions. Form 1040nr ez ) Exceptions. Form 1040nr ez   You do not have to include in income the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. Form 1040nr ez Education Below the Graduate Level If you receive a tuition reduction for education below the graduate level (including primary, secondary, or high school), it is a qualified tuition reduction, and therefore tax free, only if your relationship to the educational institution providing the benefit is described below. Form 1040nr ez You are an employee of the eligible educational institution. Form 1040nr ez You were an employee of the eligible educational institution, but you retired or left on disability. Form 1040nr ez You are a widow or widower of an individual who died while an employee of the eligible educational institution or who retired or left on disability. Form 1040nr ez You are the dependent child or spouse of an individual described in (1) through (3), above. Form 1040nr ez Child of deceased parents. Form 1040nr ez   For purposes of the qualified tuition reduction, a child is a dependent child if the child is under age 25 and both parents have died. Form 1040nr ez Child of divorced parents. Form 1040nr ez   For purposes of the qualified tuition reduction, a dependent child of divorced parents is treated as the dependent of both parents. Form 1040nr ez Graduate Education A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met. Form 1040nr ez It is provided by an eligible educational institution. Form 1040nr ez You are a graduate student who performs teaching or research activities for the educational institution. Form 1040nr ez You must include in income any other tuition reductions for graduate education that you receive. Form 1040nr ez How To Report Any tuition reduction that is taxable should be included as wages in box 1 of your Form W-2. Form 1040nr ez Report the amount from Form W-2, box 1, on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). Form 1040nr ez Prev  Up  Next   Home   More Online Publications