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Freestatetaxreturn Publication 551 - Introductory Material Table of Contents What's New Reminder IntroductionOrdering forms and publications. Freestatetaxreturn Tax questions. Freestatetaxreturn Useful Items - You may want to see: What's New Property acquired from a decedent who died in 2010. Freestatetaxreturn  Property acquired from a decedent dying in 2010 will no longer have an automatic increase in basis. Freestatetaxreturn See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for details. Freestatetaxreturn Reminder Photographs of missing children. Freestatetaxreturn  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Freestatetaxreturn Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Freestatetaxreturn 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. Freestatetaxreturn Introduction Basis is the amount of your investment in property for tax purposes. Freestatetaxreturn Use the basis of property to figure depreciation, amortization, depletion, and casualty losses. Freestatetaxreturn Also use it to figure gain or loss on the sale or other disposition of property. Freestatetaxreturn You must keep accurate records of all items that affect the basis of property so you can make these computations. Freestatetaxreturn This publication is divided into the following sections. Freestatetaxreturn Cost Basis Adjusted Basis Basis Other Than Cost The basis of property you buy is usually its cost. Freestatetaxreturn You may also have to capitalize (add to basis) certain other costs related to buying or producing the property. Freestatetaxreturn Your original basis in property is adjusted (increased or decreased) by certain events. Freestatetaxreturn If you make improvements to the property, increase your basis. Freestatetaxreturn If you take deductions for depreciation or casualty losses, reduce your basis. Freestatetaxreturn You cannot determine your basis in some assets by cost. Freestatetaxreturn This includes property you receive as a gift or inheritance. Freestatetaxreturn It also applies to property received in an involuntary conversion and certain other circumstances. Freestatetaxreturn Comments and suggestions. Freestatetaxreturn   We welcome your comments about this publication and your suggestions for future editions. Freestatetaxreturn   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Freestatetaxreturn NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Freestatetaxreturn Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Freestatetaxreturn   You can email us at taxforms@irs. Freestatetaxreturn gov. Freestatetaxreturn Please put “Publications Comment” on the subject line. Freestatetaxreturn You can also send us comments from www. Freestatetaxreturn irs. Freestatetaxreturn gov/formspubs/, select “Comment on Tax Forms and Publications” under “Information about. Freestatetaxreturn ”   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. Freestatetaxreturn Ordering forms and publications. Freestatetaxreturn   Visit www. Freestatetaxreturn irs. Freestatetaxreturn gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 business days after your request is received. Freestatetaxreturn  Internal Revenue Service  1201 N. Freestatetaxreturn Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Freestatetaxreturn   If you have a tax question, visit IRS. Freestatetaxreturn gov or call 1-800-829-1040. Freestatetaxreturn We cannot answer tax questions sent to either of the above addresses. Freestatetaxreturn Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 523 Selling Your Home 525 Taxable and Nontaxable Income 527 Residential Rental Property 530 Tax Information for First-Time Homeowners 535 Business Expenses 537 Installment Sales 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 559 Survivors, Executors, and Administrators 587 Business Use of Your Home 946 How To Depreciate Property Form (and Instructions) 706 United States Estate (and Generation-Skipping Transfer) Tax Return 706-A United States Additional Estate Tax Return 8594 Asset Acquisition Statement See How To Get Tax Help near the end of this publication for information about getting publications and forms. Freestatetaxreturn Prev  Up  Next   Home   More Online Publications
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Freestatetaxreturn Publication 970 - Additional Material Table of Contents AppendicesAppendix A. Freestatetaxreturn Illustrated Example of Education Credits Glossary Appendices The following appendices are provided to help you claim the education benefits that will give you the lowest tax. Freestatetaxreturn Appendix A—An illustrated example of education credits, including a filled-in Form 8863 showing how to claim both the American opportunity credit and lifetime learning credit for 2013. Freestatetaxreturn Appendix B—A chart summarizing some of the major differences between the education tax benefits discussed in this publication. Freestatetaxreturn It is intended only as a guide. Freestatetaxreturn Look in this publication for more complete information. Freestatetaxreturn   Appendix A. Freestatetaxreturn Illustrated Example of Education Credits Dave and Valerie Jones are married and on their 2013 joint tax return they claim exemptions for their two dependent children, Sean (age 21, social security number: 000-00-0001) and Carey (age 18, social security number: 000–00–0002). Freestatetaxreturn Their modified adjusted gross income (MAGI) on Form 1040, line 38 is $110,000. Freestatetaxreturn Because Dave and Valerie have unusually high itemized deductions, their taxable income is $10,000 and their tax before credits is $1,000. Freestatetaxreturn Sean enrolled as a full-time graduate student in August 2013 at California State College. Freestatetaxreturn He graduated with his bachelor's degree in 2012 and did not attend school from January 2013 through July 2013. Freestatetaxreturn His parents claimed the Hope Scholarship Credit for Sean for 2008 and the American opportunity credit for Sean for 2010, 2011, and 2012. Freestatetaxreturn Carey enrolled full time as a freshman at the same college in January 2013 to begin working on her bachelor's degree. Freestatetaxreturn In 2013, Dave and Valerie paid $7,000 in tuition for Sean and $8,500 in tuition for Carey. Freestatetaxreturn California State College issued two Forms 1098-T, one for Sean and one for Carey, and sent them to the Joneses' residence. Freestatetaxreturn California State College reports amounts billed in 2013 instead of amounts paid during 2013. Freestatetaxreturn In completing Form 8863, the Joneses use the amounts they paid. Freestatetaxreturn Neither Sean nor Carey has been convicted of a felony for possession or distribution of a controlled substance before the end of 2013. Freestatetaxreturn Dave and Valerie figure their education credits by completing Form 8863. Freestatetaxreturn They begin Form 8863 on page 2 before completing Part I on page 1. Freestatetaxreturn Because the Joneses have two eligible students, they will complete page 2 twice, once for their son, Sean, and once for their daughter, Carey. Freestatetaxreturn The Joneses decide to complete Part III for Carey first, as shown later. Freestatetaxreturn They carry over the amount of $2,500 entered on Part III, line 30, to Part I, line 1. Freestatetaxreturn The Joneses complete a separate Part III for their son Sean. Freestatetaxreturn They check the “Yes” box on line 23, determine that Sean is not eligible for the American opportunity credit, and go to line 31 as instructed. Freestatetaxreturn They figure their line 31 adjusted qualified education expenses for Sean to be $7,000. Freestatetaxreturn Once they have completed Part III for each student, they figure their credits. Freestatetaxreturn The Joneses figure their refundable American opportunity credit of $1,000 by completing Form 8863, Part I, lines 1 through 8. Freestatetaxreturn They enter the amount from line 8, $1,000, on line 66 of their Form 1040. Freestatetaxreturn The Joneses enter $7,000 on Part II, line 10, of Form 8863 and figure their tentative lifetime learning credit for 2013 to be $1,400 (line 12). Freestatetaxreturn They cannot claim the full amount because their MAGI of $110,000 is greater than $107,000. Freestatetaxreturn They enter the reduced amount of $1,190 (figured on Part II, line 18) on the Credit Limit Worksheet, line 1. Freestatetaxreturn The $1,190 is added to their nonrefundable American opportunity credit ($1,500 on line 2 of the Credit Limit Worksheet) for a total nonrefundable credit of $2,690. Freestatetaxreturn The Joneses enter $1,000 on line 7 of the Credit Limit Worksheet, which is the smaller of their tax from line 46 of their Form 1040 (which is $1,000) or the $2,690 on line 3 of the Credit Limit Worksheet. Freestatetaxreturn They enter $1,000 on line 19, Part II of Form 8863 and on line 49 of Form 1040. Freestatetaxreturn This image is too large to be displayed in the current screen. Freestatetaxreturn Please click the link to view the image. Freestatetaxreturn Form 1098-T Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions) 1. Freestatetaxreturn Total qualified education expenses paid for or on behalf of the student in 2013 for the academic period 8,500 2. Freestatetaxreturn Less adjustments:     a. Freestatetaxreturn Tax-free educational assistance received in 2013 allocable to the academic period   0     b. Freestatetaxreturn Tax-free educational assistance received in 2014 (and before you file your 2013 tax return) allocable to the academic period   0     c. Freestatetaxreturn Refunds of qualified education expenses paid in 2013 if the refund is received in 2013 or in 2014 before you file your 2013 tax return   0   3. Freestatetaxreturn Total adjustments (add lines 2a, 2b, and 2c) 0 4. Freestatetaxreturn Adjusted qualified education expenses. Freestatetaxreturn Subtract line 3 from line 1. Freestatetaxreturn If zero or less, enter -0- 8,500 This image is too large to be displayed in the current screen. Freestatetaxreturn Please click the link to view the image. Freestatetaxreturn Form 1098-T Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions) 1. Freestatetaxreturn Total qualified education expenses paid for or on behalf of the student in 2013 for the academic period 7,000 2. Freestatetaxreturn Less adjustments:     a. Freestatetaxreturn Tax-free educational assistance received in 2013 allocable to the academic period   0     b. Freestatetaxreturn Tax-free educational assistance received in 2014 (and before you file your 2013 tax return) allocable to the academic period   0     c. Freestatetaxreturn Refunds of qualified education expenses paid in 2013 if the refund is received in 2013 or in 2014 before you file your 2013 tax return   0   3. Freestatetaxreturn Total adjustments (add lines 2a, 2b, and 2c) 0 4. Freestatetaxreturn Adjusted qualified education expenses. Freestatetaxreturn Subtract line 3 from line 1. Freestatetaxreturn If zero or less, enter -0- 7,000 Credit Limit Worksheet (Form 8863 instructions) Nonrefundable Credit Worksheet 1. Freestatetaxreturn Enter the amount from Form 8863, line 18 1. Freestatetaxreturn 1,190 2. Freestatetaxreturn Enter the amount from Form 8863, line 9 2. Freestatetaxreturn 1,500 3. Freestatetaxreturn Add lines 1 and 2 3. Freestatetaxreturn 2,690 4. Freestatetaxreturn Enter the amount from: Form 1040, line 46; or Form 1040A, line 28 4. Freestatetaxreturn 1,000 5. Freestatetaxreturn Enter the amount from either: Form 1040, lines 47 and 48, and the amount from Schedule R included on Form 1040, line 53; or Form 1040A, lines 29 and 30 5. Freestatetaxreturn 0 6. Freestatetaxreturn Subtract line 5 from line 4 6. Freestatetaxreturn 1,000 7. Freestatetaxreturn   Enter the smaller of line 3 or line 6 here and on Form 8863, line 19 7. Freestatetaxreturn 1,000 This image is too large to be displayed in the current screen. Freestatetaxreturn Please click the link to view the image. Freestatetaxreturn Form 8863 for Dave and Valerie Jones This image is too large to be displayed in the current screen. Freestatetaxreturn Please click the link to view the image. Freestatetaxreturn Carey Jones page 2 This image is too large to be displayed in the current screen. Freestatetaxreturn Please click the link to view the image. Freestatetaxreturn Filled-in Form 8863 Jones page 2 Appendix B. Freestatetaxreturn Highlights of Education Tax Benefits for Tax Year 2013 This chart highlights some differences among the benefits discussed in this publication. Freestatetaxreturn See the text for definitions and details. Freestatetaxreturn Do not rely on this chart alone. Freestatetaxreturn    Caution:You generally cannot claim more than one benefit for the same education expense. Freestatetaxreturn   Scholarships,  Fellowships, Grants, and  Tuition  Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Tuition and Fees Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distributions† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What is your  benefit? Amounts received may not be taxable   Credits can reduce the amount of tax you have to pay. Freestatetaxreturn    40% of the credit may be refundable (limited to $1,000 per student). Freestatetaxreturn Credits can reduce amount of tax you must pay Can deduct interest paid Can deduct expenses Earnings not  taxed Earnings not taxed No 10%  additional tax on early distribution Interest not taxed Employer benefits not taxed Can deduct expenses What is the annual limit? None $2,500 credit per student $2,000 credit per tax return     $2,500 deduction $4,000 deduction $2,000 contribution per beneficiary None Amount of qualified  education expenses Amount of qualified  education expenses $5,250 exclusion Amount of qualifying work-related education expenses What expenses  qualify besides  tuition and required enrollment fees? Course-related expenses such as fees, books, supplies, and equipment Course-related books, supplies, and equipment Amounts paid for required books, etc. Freestatetaxreturn , that must be paid to the educational institution, etc. Freestatetaxreturn , are required fees Books Supplies Equipment  Room & board  Transportation  Other necessary expenses  None Books Supplies Equipment  Expenses for special needs services  Payments to QTP  Higher education: Room & board if  at least half-time  student  Elem/sec (K–12) education: Tutoring Room & board Uniforms Transportation Computer  access Supplementary expenses Books Supplies Equipment  Room & board if  at least half-time student  Expenses for special needs services Books Supplies Equipment  Room & board if  at least half-time student  Expenses for special needs services Payments to Coverdell ESA  Payments to QTP Books Supplies Equipment Transportation  Travel  Other necessary expenses   Scholarships,  Fellowships, Grants, and  Tuition  Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Tuition and Fees Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distributions† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What education qualifies? Undergraduate & graduate  K–12 Undergraduate & graduate Undergraduate & graduate  Courses to acquire or improve job skills    Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate  K–12 Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate Required by employer or law to keep present job, salary, status  Maintain or improve job skills What are some of the other  conditions that  apply? Must be in degree or vocational program  Payment of tuition and required fees must be allowed under the grant Can be claimed for only 4 tax years (which includes years Hope Scholarship Credit claimed)  Must be enrolled at least half-time in degree program  No felony drug conviction(s)  Must not have completed first 4 years of postsecondary education before end of preceding tax year. Freestatetaxreturn   No other conditions Must have been at least half-time  student in degree program Cannot claim both deduction & education credit for same student in same year Assets must be distributed at age 30 unless special  needs beneficiary No other conditions No other conditions Applies only to qualified series  EE bonds issued after 1989 or series I bonds No other conditions Cannot be to  meet minimum educational requirements of present trade/business  Cannot qualify  you for new trade/business   In what income  range do benefits  phase out? No phaseout $80,000 – $90,000  $160,000 – $180,000 for joint returns $53,000 – $63,000  $107,000 – $127,000 for joint returns $60,000 – $75,000  $125,000 –  $155,000 for  joint returns  $60,000 – $80,000  $130,000 –  $160,000 for  joint returns  $95,000 – $110,000  $190,000 – $220,000 for  joint returns No phaseout No phaseout   No phaseout No phaseout † Any nontaxable distribution is limited to the amount that does not exceed qualified education expenses. Freestatetaxreturn Glossary The education benefits included in this publication were enacted over many years, leading to a number of common terms being defined differently from one benefit to the next. Freestatetaxreturn For example, an eligible educational institution means one thing when determining if earnings from a Coverdell education savings account are not taxable and something else when determining if a scholarship or fellowship is not taxable. Freestatetaxreturn For each term listed below that has more than one definition, the definition for each education benefit is listed. Freestatetaxreturn Academic period:   A semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Freestatetaxreturn If an educational institution uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Freestatetaxreturn Adjusted qualified education expenses (AQEE):    Qualified education expenses (defined later) reduced by any tax-free educational assistance, such as a tax-free scholarship or employer-provided educational assistance. Freestatetaxreturn They must also be reduced by any qualified education expenses deducted elsewhere on your return, used to determine an education credit or other benefit, or used to determine a tax-free distribution. Freestatetaxreturn For information on a specific benefit, see the appropriate chapter in this publication. Freestatetaxreturn Candidate for a degree:   A student who meets either of the following requirements. Freestatetaxreturn Attends a primary or secondary school or pursues a degree at a college or university, or Attends an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. Freestatetaxreturn Designated beneficiary:   The individual named in the document creating the account/plan who is to receive the benefit of the funds in the account/plan. Freestatetaxreturn Eligible educational institution:    American opportunity credit. Freestatetaxreturn Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Freestatetaxreturn It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Freestatetaxreturn Coverdell education savings account (ESA). Freestatetaxreturn Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Freestatetaxreturn It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Freestatetaxreturn Also included is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. Freestatetaxreturn Education savings bond program. Freestatetaxreturn Same as American opportunity credit in this category. Freestatetaxreturn IRA, early distributions from. Freestatetaxreturn Same as American opportunity credit in this category. Freestatetaxreturn Lifetime learning credit. Freestatetaxreturn Same as American opportunity credit in this category. Freestatetaxreturn Qualified tuition program (QTP). Freestatetaxreturn Same as American opportunity credit in this category. Freestatetaxreturn Scholarships and fellowships. Freestatetaxreturn An institution 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. Freestatetaxreturn Student loan, cancellation of. Freestatetaxreturn Same as Scholarships and fellowships in this category. Freestatetaxreturn Student loan interest deduction. Freestatetaxreturn Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Freestatetaxreturn It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Freestatetaxreturn Also included is an institution that conducts 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. Freestatetaxreturn Tuition and fees deduction. Freestatetaxreturn Same as American opportunity credit in this category. Freestatetaxreturn Eligible student:    American opportunity credit. Freestatetaxreturn A student who meets all of the following requirements for the tax year for which the credit is being determined. Freestatetaxreturn Did not have expenses that were used to figure an American opportunity or Hope Scholarship Credit in any 4 earlier tax years. Freestatetaxreturn Had not completed the first 4 years of postsecondary education (generally the freshman through senior years). Freestatetaxreturn For at least one academic period beginning in the tax year, was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. Freestatetaxreturn Was free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year. Freestatetaxreturn Lifetime learning credit. Freestatetaxreturn A student who is enrolled in one or more courses at an eligible educational institution. Freestatetaxreturn Student loan interest deduction. Freestatetaxreturn A student who was enrolled at least half-time in a program leading to a postsecondary degree, certificate, or other recognized educational credential at an eligible educational institution. Freestatetaxreturn Tuition and fees deduction. Freestatetaxreturn A student who is enrolled in one or more courses at an eligible educational institution. Freestatetaxreturn Half-time student:   A student who is enrolled for at least half the full-time academic work load for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. Freestatetaxreturn Modified adjusted gross income (MAGI):    American opportunity credit. Freestatetaxreturn Adjusted gross income (AGI) as figured on the federal income tax return, 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. Freestatetaxreturn Coverdell education savings account (ESA). Freestatetaxreturn Same as American opportunity credit in this category. Freestatetaxreturn Education savings bond program. Freestatetaxreturn Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any savings bond interest exclusion and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, Exclusion of income by bona fide residents of Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for student loan interest, Deduction for tuition and fees, and Deduction for domestic production activities. Freestatetaxreturn Lifetime learning credit. Freestatetaxreturn Same as American opportunity credit in this category. Freestatetaxreturn Student loan interest deduction. Freestatetaxreturn Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any student loan interest deduction, tuition and fees deduction, or domestic production activities deduction, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Freestatetaxreturn Tuition and fees deduction. Freestatetaxreturn Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any tuition and fees deduction, or domestic production activities deduction, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Freestatetaxreturn Phaseout:   The amount of credit or deduction allowed is reduced when modified adjusted gross income (MAGI) is greater than a specified amount of income. Freestatetaxreturn Qualified education expenses:   See pertinent chapter for specific items. Freestatetaxreturn    American opportunity credit. Freestatetaxreturn Tuition and certain related expenses (including student activity fees) required for enrollment or attendance at an eligible educational institution. Freestatetaxreturn Books, supplies, and equipment needed for a course of study are included even if not purchased from the educational institution. Freestatetaxreturn Does not include expenses for room and board. Freestatetaxreturn Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program. Freestatetaxreturn Coverdell education savings account (ESA). Freestatetaxreturn Expenses related to or required for enrollment or attendance of the designated beneficiary at an eligible elementary, secondary, or postsecondary school. Freestatetaxreturn Many specialized expenses included for K–12. Freestatetaxreturn Also includes expenses for special needs services and contribution to qualified tuition program (QTP). Freestatetaxreturn Education savings bond program. Freestatetaxreturn Tuition and fees required to enroll at or attend an eligible educational institution. Freestatetaxreturn Also includes contributions to a qualified tuition program (QTP) or Coverdell education savings account (ESA). Freestatetaxreturn Does not include expenses for room and board. Freestatetaxreturn Does not include expenses for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. Freestatetaxreturn IRA, early distributions from. Freestatetaxreturn Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half-time. Freestatetaxreturn Also includes expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance. Freestatetaxreturn Lifetime learning credit. Freestatetaxreturn Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Freestatetaxreturn Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Freestatetaxreturn Does not include expenses for room and board. Freestatetaxreturn Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program, unless taken by the student to acquire or improve job skills. Freestatetaxreturn Qualified tuition program (QTP). Freestatetaxreturn Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half-time. Freestatetaxreturn Includes expenses for special needs services and computer access. Freestatetaxreturn Scholarships and fellowships. Freestatetaxreturn 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. Freestatetaxreturn Course-related items must be required of all students in the course of instruction. Freestatetaxreturn Student loan interest deduction. Freestatetaxreturn Total costs of attending an eligible educational institution, including graduate school (however, limitations may apply to the cost of room and board allowed). Freestatetaxreturn Tuition and fees deduction. Freestatetaxreturn Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Freestatetaxreturn Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Freestatetaxreturn Recapture:   To include as income on your current year's return an amount allowed as a deduction in a prior year. Freestatetaxreturn To include as tax on your current year's return an amount allowed as a credit in a prior year. Freestatetaxreturn Rollover:   A tax-free distribution to you of cash or other assets from a tax-favored plan that you contribute to another tax-favored plan. Freestatetaxreturn Transfer:   A movement of funds in a tax-favored plan from one trustee directly to another, either at your request or at the trustee's request. Freestatetaxreturn Prev  Up  Next   Home   More Online Publications