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Free 1040ez Filing

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Free 1040ez Filing

Free 1040ez filing Index A Accelerated death benefits, Accelerated Death Benefits, Accelerated death benefits. Free 1040ez filing Archer MSA, HSA, Archer MSA, or Medicare Advantage MSA, HSA, Archer MSA, or a Medicare Advantage MSA. Free 1040ez filing Assistance (see Tax help) Astronauts Tax forgiveness, Astronauts B Basis Inherited property, Basis of Inherited Property Joint interest property, Joint interest. Free 1040ez filing Qualified joint interest, Qualified joint interest. Free 1040ez filing Beneficiary Basis of property, Basis of Inherited Property Character of distributions, Character of Distributions Excess deductions, Excess deductions. Free 1040ez filing Income received, Other Items of Income Liability, estate's income tax, Liability of the beneficiary. Free 1040ez filing Nonresident alien, Nonresident alien beneficiary. Free 1040ez filing Reporting distributions, How and When To Report Successor, Successor beneficiary. Free 1040ez filing Treatment of distributions, Distributions to Beneficiaries Unused loss carryovers, Unused loss carryovers. Free 1040ez filing Bequest Defined, Bequest Property received, Gifts, Insurance, and Inheritances C Claim, credit or refund, Claim for Credit or Refund Combat zone, Combat Zone Comments, Comments and suggestions. Free 1040ez filing Coverdell education savings account (ESA), Coverdell Education Savings Account (ESA), Coverdell education savings account (ESA). Free 1040ez filing Credit Child tax, Child tax credit. Free 1040ez filing Earned income, Earned income credit. Free 1040ez filing Elderly or disabled, Credit for the elderly or the disabled. Free 1040ez filing Final return for decedent, Credits General business, General business tax credit. Free 1040ez filing D Death benefits Accelerated, Accelerated Death Benefits, Accelerated death benefits. Free 1040ez filing Public safety officers, Death benefits. Free 1040ez filing Decedent Final return, Final Income Tax Return for Decedent—Form 1040 Income in respect of, Income in Respect of a Decedent Deductions Estate tax, Estate Tax Deduction In respect of decedent, Deductions in Respect of a Decedent Medical expenses, Medical Expenses Standard, Standard Deduction Distributable net income, Distributable net income. Free 1040ez filing Distributions Deduction, Income Distribution Deduction Limit on deduction, Tax-exempt income not deductible. Free 1040ez filing Not treated as bequests, Distributions not treated as bequests. Free 1040ez filing Property, in kind, Property distributed in kind. Free 1040ez filing E Education savings account, Coverdell, Coverdell Education Savings Account (ESA), Coverdell education savings account (ESA). Free 1040ez filing Estate Income tax return, Income Tax Return of an Estate— Form 1041 Insolvent, Insolvent estate. Free 1040ez filing Period of administration, Period of Administration Tax deduction, Estate Tax Deduction Termination, Termination of Estate Transfer of unused deductions, Transfer of Unused Deductions to Beneficiaries Estate tax deduction, Estate Tax Deduction Estimated tax, Estimated tax. Free 1040ez filing , Transfer of Credit for Estimated Tax Payments Example Comprehensive, Comprehensive Example Decedent's final return, Final Return for Decedent—Form 1040 Estate's tax return, Income Tax Return of an Estate—Form 1041 Exemption Estate's tax return, Exemption Deduction Final return for decedent, Exemptions Expenses Accrued, Accrued expenses. Free 1040ez filing Administration, Administration Expenses Deductions in respect of decedent, Deductions in Respect of a Decedent Funeral, Funeral and Medical Expenses Medical, Medical Expenses, Medical and dental expenses of a decedent. Free 1040ez filing Extension to file Form 1041, Extension of time to file. Free 1040ez filing F Fiduciary relationship, Notice of fiduciary relationship. Free 1040ez filing Filing requirements Decedent's final return, Filing Requirements Estate's tax return, Filing Requirements Final return for decedent Credits, Credits Exemption and deductions, Exemptions and Deductions Filing requirements, Filing Requirements Income to include, Income To Include Joint return, Joint Return Name, address, and signature, Name, Address, and Signature Other taxes, Other Taxes Payments, Payments of Tax When and where to file, When and Where To File Who must file, Final Income Tax Return for Decedent—Form 1040 Form 1040NR, Nonresident Alien, Filing Requirements 1041, Income Tax Return of an Estate— Form 1041 1042, Nonresident alien beneficiary. Free 1040ez filing 1310, Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Free 1040ez filing 4810, Form 4810. Free 1040ez filing 56, Notice of fiduciary relationship. Free 1040ez filing 6251, Form 6251. Free 1040ez filing 706, Estate and Gift Taxes SS–4, Identification number. Free 1040ez filing Free tax services, Free help with your tax return. Free 1040ez filing Funeral expenses, Funeral expenses. Free 1040ez filing G Gift, property, Gifts, Insurance, and Inheritances H Help (see Tax help) I Identification number, application, Identification number. Free 1040ez filing Income Community, Community Income Distributable net income, Distributable net income. Free 1040ez filing Distributed currently, Income That Must Be Distributed Currently Interest and dividend, Interest and Dividend Income (Forms 1099) Partnership, final return, Partnership Income S corporation, S Corporation Income Self-employment, Self-Employment Income Income in respect of decedent, Income in Respect of a Decedent, Inherited IRAs. Free 1040ez filing Income tax return of an estate Credits, tax, and payments, Credits, Tax, and Payments Exemption and deductions, Exemption and Deductions Filing requirements, Filing Requirements Income to include, Income To Include Name, address, and signature, Name, Address, and Signature When and where to file, When and Where To File Inherited IRAs, Inherited IRAs. Free 1040ez filing Inherited property, Gifts, Insurance, and Inheritances Installment obligations, Installment obligations. Free 1040ez filing , Installment obligations. Free 1040ez filing Insurance, Insurance J Joint return Revoked by personal representative, Personal representative may revoke joint return election. Free 1040ez filing Who can file, Joint Return L Losses Deduction on final return, Deduction for Losses Estate's tax return, Losses M Military or terrorist actions Claim for credit or refund, Claim for Credit or Refund Defined, Military or terrorist action defined. Free 1040ez filing Tax forgiveness, Tax Forgiveness for Armed Forces Members, Victims of Terrorism, and Astronauts N Notice of fiduciary relationship Form 56, Notice of fiduciary relationship. Free 1040ez filing P Partnership income, Partnership Income, Partnership income. Free 1040ez filing Penalty Information returns, Penalty. Free 1040ez filing Substantial valuation misstatement, Valuation misstatements. Free 1040ez filing Personal representative Defined, Personal Representative Duties, Duties Fees received, Fees Received by Personal Representatives Penalty, Penalty. Free 1040ez filing , Penalty. Free 1040ez filing Prompt assessment, request, Request for prompt assessment (charge) of tax. Free 1040ez filing Public safety officers, death benefits, Death benefits. Free 1040ez filing Publications (see Tax help) R Refund File for decedent, Refund Military or terrorist action deaths, Claim for Credit or Refund Release from liability, Request for discharge from personal liability for tax. Free 1040ez filing Return Decedent's final, Final Income Tax Return for Decedent—Form 1040 Estate's income tax, Income Tax Return of an Estate— Form 1041 Information, Information Returns Roth IRA, Roth IRAs. Free 1040ez filing S Separate shares rule, Separate shares rule. Free 1040ez filing Suggestions, Comments and suggestions. Free 1040ez filing Survivors Income, Other Items of Income Tax benefits, Tax Benefits for Survivors T Tax Alternative minimum Estate, Alternative minimum tax (AMT). Free 1040ez filing Individuals, Alternative minimum tax (AMT). Free 1040ez filing Benefits, survivors, Tax Benefits for Survivors Estimated, estate, Estimated tax. Free 1040ez filing , Transfer of Credit for Estimated Tax Payments Payments, final return, Payments of Tax Refund of income (claim), Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Free 1040ez filing Self-employment, Self-employment tax. Free 1040ez filing Transfer of credit, Transfer of Credit for Estimated Tax Payments Tax help, How To Get Tax Help Terrorist action, tax relief, Tax Forgiveness for Armed Forces Members, Victims of Terrorism, and Astronauts Terrorist victim, Specified Terrorist Victim TTY/TDD information, How To Get Tax Help V Valuation method Inherited property, Basis of Inherited Property Special-use, Special-use valuation. Free 1040ez filing Victims of terrorist attacks, Specified Terrorist Victim W Widows and widowers, tax benefits, Qualifying widows and widowers. Free 1040ez filing Prev  Up     Home   More Online Publications
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Tax Information for Bondholders

Publication 550 - Investment Income and Expenses
This publication provides information on the tax treatment of investment income and expenses. It explains what investment income is taxable and what investment expenses are deductible. It explains when and how to show these items on your tax return.

Publication 915 - Social Security and Equivalent Railroad Retirement Benefits
This publication explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. Receipt of interest on tax exempt bonds may impact the taxability of social security benefits, as described in this publication.

Page Last Reviewed or Updated: 22-Apr-2013

The Free 1040ez Filing

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