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How Amend A Tax Return

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How Amend A Tax Return

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Projections of Federal Tax Return Filings - IRS Office of Research

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Here you will find forecasts of the number of returns to be filed for tax forms within the individual, tax-exempt, and business areas. These statistical projections are developed by the IRS Office of Research.

Projections Publications

The following publications are available as an Adobe Acrobat PDF file. A free Adobe® reader is available for download, if needed. Also, the following tables are available as Microsoft Excel spreadsheets. A free Excel® reader is available for download, if needed.

Calendar Year Projections of Information and Withholding Documents for the United States and IRS Campuses (PDF)
Publication 6961 (Revised 12/12) by IRS; Research, Analysis, and Statistics; Office of Research
This IRS Publication contains multi-year projections of the number of information and withholding documents to be filed with the IRS. The publication includes detailed projections by approximately 30 information document types such as Form W-2, Form 1099INT, etc., by medium of filing (paper versus electronic) and by IRS processing campus location.
Fiscal Year Return Projections for the United States (PDF)
Publication 6292 (Revised 07/12) by IRS; Research, Analysis, and Statistics; Office of Research
IRS Publication 6292 contains multi-year projections of the number of tax returns to be filed with the IRS by fiscal year of filing. The publication includes detailed projections by approximately 50 different individual, business and tax-exempt return types such as Form 1040, Form 1120, Form 941 and Form 990. There is also additional detail by medium of filing (paper versus electronic) and by IRS business operating division categorizations.
Calendar Year Projections of Individual Returns by Major Processing Categories, Selected Years and Areas (PDF)
Publication 6187 (Revised 11/12) by IRS; Research, Analysis, and Statistics; Office of Research
IRS Publication 6187 contains multi-year projections of the number of individual Form 1040 series returns to be filed with the IRS by major processing categories important to IRS planning operations. This includes detail by form type (Forms 1040, 1040A, and 1040EZ), by medium of filing (paper versus electronic), and by other characteristics such as refund returns. Selected portions of the forecasts are also shown by IRS processing campus location, and by state.
Calendar Year Return Projections for the United States and IRS Campuses (PDF)
Publication 6186 (Revised 10/13) by IRS; Research, Analysis, and Statistics; Office of Research
IRS Publication 6186 contains multi-year projections of the number of tax returns to be filed with the IRS by the calendar year of filing. The publication includes detailed projections by approximately 50 different individual, business and tax-exempt return types such as Form 1040, Form 1120, Form 941 and Form 990. There is also additional detail by medium of filing (paper versus electronic) and by IRS processing campus location.
Calendar Year Return Projections by State (PDF)
Publication 6149 (Revised 12/12) by IRS; Research, Analysis, and Statistics; Office of Research.
IRS Publication 6149 contains multi-year projections of the number of tax returns to be filed with the IRS by state—as determined by the addresses on the tax returns. The publication includes detailed projections by approximately 50 different individual, business and tax-exempt return types such as Form 1040, Form 1120, Form 941 and Form 990. There is also additional detail by medium of filing (paper versus electronic).

Articles

Projections of Federal Tax Return Filings: Calendar Years 2009–2016
Winter Bulletin, 2010

A grand total of 238 million tax returns are projected to be filed with the IRS during Calendar Year (CY) 2010. This number represents a decrease of 1 percent from the estimated CY 2009 filings of 240.4 million returns.

Related
Statistical Table: 1
Projections of Federal Tax Return Filings: Calendar Years 2005–2012
SOI Bulletin, Winter 2005–2006
Taxpayers are expected to file a grand total of 229.3 million tax returns with the Internal Revenue Service (IRS) during Calendar Year (CY) 2006. That projected level reflects a modest increase of only 0.1 percent over the estimated CY 2005 filings of 229.0 million. Related
Statistical Table: 1

Historical Projections Table


Data Presented

Selected Returns and Forms Filed or To Be Filed by Type During Specified Calendar Years
Tax Years
1990–2007
Published as:
SOI Bulletin, Historical Table 22

 

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Page Last Reviewed or Updated: 15-Nov-2013

The How Amend A Tax Return

How amend a tax return 3. How amend a tax return   Lifetime Learning Credit Table of Contents Introduction Can You Claim the CreditWho Can Claim the Credit Who Cannot Claim the Credit What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses Figuring the CreditEffect of the Amount of Your Income on the Amount of Your Credit Claiming the Credit Introduction For 2013, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. How amend a tax return They are the American opportunity credit and the lifetime learning credit. How amend a tax return This chapter discusses the lifetime learning credit. How amend a tax return The American opportunity credit is discussed in chapter 2, The American Opportunity Credit . How amend a tax return This chapter explains: Who can claim the lifetime learning credit, What expenses qualify for the credit, Who is an eligible student, Who can claim a dependent's expenses, How to figure the credit, How to claim the credit, and When the credit must be repaid. How amend a tax return What is the tax benefit of the lifetime learning credit. How amend a tax return   For the tax year, you may be able to claim a lifetime learning credit of up to $2,000 for qualified education expenses paid for all eligible students. How amend a tax return There is no limit on the number of years the lifetime learning credit can be claimed for each student. How amend a tax return   A tax credit reduces the amount of income tax you may have to pay. How amend a tax return Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. How amend a tax return The lifetime learning credit is a nonrefundable credit. How amend a tax return This means that it can reduce your tax to zero, but if the credit is more than your tax the excess will not be refunded to you. How amend a tax return   Your allowable lifetime learning credit may be limited by the amount of your income and the amount of your tax. How amend a tax return Can you claim more than one education credit this year. How amend a tax return   For each student, you can elect for any year only one of the credits. How amend a tax return For example, if you elect to take the lifetime learning credit for a child on your 2013 tax return, you cannot, for that same child, also claim the American opportunity credit for 2013. How amend a tax return   If you are eligible to claim the lifetime learning credit and you are also eligible to claim the American opportunity credit for the same student in the same year, you can choose to claim either credit, but not both. How amend a tax return   If you pay qualified education expenses for more than one student in the same year, you can choose to take certain credits on a per-student, per-year basis. How amend a tax return This means that, for example, you can claim the American opportunity credit for one student and the lifetime learning credit for another student in the same year. How amend a tax return Differences between the American opportunity and lifetime learning credits. How amend a tax return   There are several differences between these two credits. How amend a tax return For example, you can claim the American opportunity credit for the same student for no more than 4 tax years, but any year in which the Hope Scholarship Credit was claimed counts toward the 4 years. How amend a tax return However, there is no limit on the number of years for which you can claim a lifetime learning credit based on the same student's expenses. How amend a tax return The differences between these credits are shown in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 near the end of this publication. How amend a tax return Overview of the lifetime learning credit. How amend a tax return   See Table 3-1, Overview of the Lifetime Learning Credit for the basics of the lifetime learning credit. How amend a tax return The details are discussed in this chapter. How amend a tax return Can You Claim the Credit The following rules will help you determine if you are eligible to claim the lifetime learning credit on your tax return. How amend a tax return Who Can Claim the Credit Generally, you can claim the lifetime learning credit if all three of the following requirements are met. How amend a tax return You pay qualified education expenses of higher education. How amend a tax return You pay the education expenses for an eligible student. How amend a tax return The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. How amend a tax return Table 3-1. How amend a tax return Overview of the Lifetime Learning Credit Maximum credit Up to $2,000 credit per return Limit on modified adjusted gross income (MAGI) $127,000 if married filling jointly;  $63,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable Nonrefundable—credit limited to the amount of tax you must pay on your taxable income Number of years of postsecondary education Available for all years of postsecondary education and for courses to acquire or improve job skills Number of tax years credit available Available for an unlimited number of years Type of program required Student does not need to be pursuing a program leading to a degree or other recognized education credential Number of courses Available for one or more courses Felony drug conviction Felony drug convictions do not make the student ineligible Qualified expenses Tuition and fees required for enrollment or attendance (including amounts required to be paid to the institution for course-related books, supplies, and equipment) Payments for academic periods Payments made in 2013 for academic periods beginning in 2013 or beginning in the first 3 months of 2014 Note. How amend a tax return Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. How amend a tax return “Qualified education expenses” are defined later under Qualified Education Expenses . How amend a tax return “Eligible students” are defined later under Who Is an Eligible Student . How amend a tax return A dependent for whom you claim an exemption is defined later under Who Can Claim a Dependent's Expenses . How amend a tax return You may find Figure 3-1, Can You Claim the Lifetime Learning Credit for 2013 , later, helpful in determining if you can claim a lifetime learning credit on your tax return. How amend a tax return Who Cannot Claim the Credit You cannot claim the lifetime learning credit for 2013 if any of the following apply. How amend a tax return Your filing status is married filing separately. How amend a tax return You are listed as a dependent on another person's tax return (such as your parents'). How amend a tax return See Who Can Claim a Dependent's Expenses , later. How amend a tax return Your modified adjusted gross income (MAGI) is $63,000 or more ($127,000 or more in the case of a joint return). How amend a tax return MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit . How amend a tax return 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. How amend a tax return More information on nonresident aliens can be found in Publication 519. How amend a tax return You claim the American Opportunity Credit (see chapter 2) or a Tuition and Fees Deduction (see chapter 6) for the same student in 2013. How amend a tax return What Expenses Qualify The lifetime learning credit is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. How amend a tax return Generally, the credit is allowed for qualified education expenses paid in 2013 for an academic period beginning in 2013 or in the first 3 months of 2014. How amend a tax return For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 credit. How amend a tax return Academic period. How amend a tax return   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. How amend a tax return In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. How amend a tax return Paid with borrowed funds. How amend a tax return   You can claim a lifetime learning credit for qualified education expenses paid with the proceeds of a loan. How amend a tax return You use the expenses to figure the lifetime learning credit for the year in which the expenses are paid, not the year in which the loan is repaid. How amend a tax return Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. How amend a tax return Student withdraws from class(es). How amend a tax return   You can claim a lifetime learning credit for qualified education expenses not refunded when a student withdraws. How amend a tax return Qualified Education Expenses For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. How amend a tax return The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills. How amend a tax return Eligible educational institution. How amend a tax return   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. How amend a tax return S. How amend a tax return Department of Education. How amend a tax return It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. How amend a tax return The educational institution should be able to tell you if it is an eligible educational institution. How amend a tax return   Certain educational institutions located outside the United States also participate in the U. How amend a tax return S. How amend a tax return Department of Education's Federal Student Aid (FSA) programs. How amend a tax return Related expenses. How amend a tax return   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution for enrollment or attendance. How amend a tax return Prepaid expenses. How amend a tax return   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. How amend a tax return See Academic period , earlier. How amend a tax return For example, you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). How amend a tax return You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). How amend a tax return In the following examples, assume that each student is an eligible student at an eligible educational institution. How amend a tax return Example 1. How amend a tax return   Jackson is a sophomore in University V's degree program in dentistry. How amend a tax return This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. How amend a tax return Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified expense. How amend a tax return Example 2. How amend a tax return   Donna and Charles, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. How amend a tax return The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. How amend a tax return Charles bought his books from a friend, so what he paid for them is not a qualified education expense. How amend a tax return Donna bought hers at College W's bookstore. How amend a tax return Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. How amend a tax return Example 3. How amend a tax return   When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. How amend a tax return This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and student government. How amend a tax return No portion of the fee covers personal expenses. How amend a tax return Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. How amend a tax return Therefore, it is a qualified expense. How amend a tax return No Double Benefit Allowed You cannot do any of the following: Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim a lifetime learning credit based on those same expenses. How amend a tax return Claim a lifetime learning credit in the same year that you are claiming a tuition and fees deduction for the same student. How amend a tax return Claim a lifetime learning credit and an American opportunity credit based on the same qualified education expenses. How amend a tax return Claim a lifetime learning credit based on the same expenses used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or qualified tuition program (QTP). How amend a tax return See Coordination With American Opportunity and Lifetime Learning Credits in chapter 7, Coverdell Education Savings Account, and Coordination With American Opportunity and Lifetime Learning Credits in chapter 8, Qualified Tuition Program. How amend a tax return Claim a credit based on qualified education expenses paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. How amend a tax return See Adjustments to Qualified Education Expenses, next. How amend a tax return This image is too large to be displayed in the current screen. How amend a tax return Please click the link to view the image. How amend a tax return Figure 3-1 Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. How amend a tax return The result is the amount of adjusted qualified education expenses for each student. How amend a tax return Tax-free educational assistance. How amend a tax return   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. How amend a tax return See Academic period , earlier. How amend a tax return   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. How amend a tax return This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). How amend a tax return   If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed , later. How amend a tax return If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed , later. How amend a tax return   Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. How amend a tax return Generally, any scholarship or fellowship is treated as tax free. How amend a tax return However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. How amend a tax return The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. How amend a tax return The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. How amend a tax return You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. How amend a tax return For examples, see Coordination with Pell grants and other scholarships, later. How amend a tax return Refunds. How amend a tax return   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. How amend a tax return Some tax-free educational assistance received after 2013 may be treated as a refund. How amend a tax return See Tax-free educational assistance , earlier. How amend a tax return Refunds received in 2013. How amend a tax return   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. How amend a tax return Refunds received after 2013 but before your income tax return is filed. How amend a tax return   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. How amend a tax return Refunds received after 2013 and after your income tax return is filed. How amend a tax return   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. How amend a tax return See Credit recapture, next. How amend a tax return Credit recapture. How amend a tax return    If any tax-free educational assistance for the qualified education expenses paid in 2013 or any refund of your qualified education expenses paid in 2013 is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. How amend a tax return You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing the expenses by the amount of the refund or tax-free educational assistance. How amend a tax return You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you had claimed the refigured credit(s). How amend a tax return Include that amount as an additional tax for the year the refund or tax-free assistance was received. How amend a tax return Example. How amend a tax return   You pay $9,300 in tuition and fees in December 2013, and your child began college in January 2014. How amend a tax return You filed your 2013 tax return on February 14, 2014, and claimed a lifetime learning credit of $1,860. How amend a tax return You claimed no other tax credits. How amend a tax return After you filed your return, your child withdrew from two courses and you received a refund of $2,900. How amend a tax return You must refigure your 2013 lifetime learning credit using $6,400 of qualified education expenses instead of $9,300. How amend a tax return The refigured credit is $1,280 and your tax liability increased by $580. How amend a tax return See instructions for your 2014 income tax return to determine where to include this tax. How amend a tax return If you pay qualified education expenses in 2014 for an academic period that begins in the first 3 months of 2014 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2014 instead of reducing your expenses for 2013. How amend a tax return Amounts that do not reduce qualified education expenses. How amend a tax return   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. How amend a tax return   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. How amend a tax return The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses, as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. How amend a tax return The use of the money is not restricted. How amend a tax return For examples, see Adjustments to Qualified Education Expenses in chapter 2, American Opportunity Credit. How amend a tax return Coordination with Pell grants and other scholarships. How amend a tax return   In some cases, you may be able to reduce your tax liability by including scholarships in income. How amend a tax return If you are claiming an education credit for a claimed dependent who received a scholarship, you may be able to reduce your tax liability if the student includes the scholarship in income. How amend a tax return The scholarship must be one that may (by its terms) be applied to expenses (such as room and board) other than qualified education expenses. How amend a tax return Example 1—No scholarship. How amend a tax return Judy Green, who is unmarried, is taking courses at a public community college to be recertified to teach in public schools. How amend a tax return Her AGI and her MAGI, for purposes of the credit, are $27,000. How amend a tax return Judy takes the standard deduction of $5,950 and personal exemption of $3,800, reducing her AGI to taxable income of $17,250 and her tax before credits is $2,156. How amend a tax return She claims no credits other than the lifetime learning credit. How amend a tax return In July 2013 she paid $700 for the summer 2013 semester; in August 2013 she paid $1,900 for the fall 2013 semester; and in December 2013 she paid another $1,900 for the spring semester beginning in January 2014. How amend a tax return Judy and the college meet all requirements for the lifetime learning tax credit. How amend a tax return She can use all of the $4,500 tuition she paid in 2013 when figuring her 2013 lifetime learning credit. How amend a tax return She claims a $900 lifetime learning credit and her tax after credits is $1,256. How amend a tax return Example 2—Scholarship excluded from income. How amend a tax return The facts are the same as in Example 1—No scholarship, except that Judy was awarded a $1,500 scholarship. How amend a tax return Under the terms of her scholarship, it may be used to pay any educational expenses, including room and board. How amend a tax return If Judy excludes the scholarship from income, she will be deemed (for purposes of computing her education credit) as having used the scholarship to pay for tuition, required fees, and course materials. How amend a tax return Only $3,000 of the $4,500 tuition she paid in 2013 could be used when figuring her 2013 lifetime learning credit. How amend a tax return Her lifetime learning credit would be reduced to $600 and her tax after credits would be $1,556. How amend a tax return Example 3—Scholarship included in income. How amend a tax return The facts are the same as in Example 2—Scholarship excluded from income. How amend a tax return If, unlike Example 2, Judy includes the $1,500 scholarship in income, she will be deemed to have used the entire scholarship to pay for room and board. How amend a tax return Judy's AGI will increase to $28,500, her taxable income would be $18,750, and her tax before credits would be $2,381. How amend a tax return She would be able to use the $4,500 of adjusted qualified education expenses to figure her credit. How amend a tax return Judy could claim a $900 lifetime learning credit and her tax after credits would be $1,481. How amend a tax return 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. How amend a tax return This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. How amend a tax return Sports, games, hobbies, and noncredit courses. How amend a tax return   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. How amend a tax return However, if the course of instruction or other education is part of the student's degree program or is taken by the student to acquire or improve job skills, these expenses can qualify. How amend a tax return Comprehensive or bundled fees. How amend a tax return   Some eligible educational institutions combine all of their fees for an academic period into one amount. How amend a tax return 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. How amend a tax return 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. How amend a tax return See Figuring the Credit , later, for more information about Form 1098-T. How amend a tax return Who Is an Eligible Student For purposes of the lifetime learning credit, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). How amend a tax return Who Can Claim a Dependent's Expenses If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both of you, can claim a lifetime learning credit for your dependent's expenses for that year. How amend a tax return For you to claim a lifetime learning credit for your dependent's expenses, you must also claim an exemption for your dependent. How amend a tax return You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. How amend a tax return IF you. How amend a tax return . How amend a tax return . How amend a tax return THEN only. How amend a tax return . How amend a tax return . How amend a tax return claim an exemption on your tax return for a dependent who is an eligible student you can claim the lifetime learning credit based on that dependent's expenses. How amend a tax return The dependent cannot claim the credit. How amend a tax return do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled to the exemption) the dependent can claim the lifetime learning credit. How amend a tax return You cannot claim the credit based on this dependent's expenses. How amend a tax return Expenses paid by dependent. How amend a tax return   If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. How amend a tax return Include these expenses when figuring the amount of your lifetime learning credit. How amend a tax return    Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent. How amend a tax return Expenses paid by you. How amend a tax return   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the lifetime learning credit. How amend a tax return If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the lifetime learning credit. How amend a tax return Expenses paid by others. How amend a tax return   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. How amend a tax return In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. How amend a tax return If you claim an exemption on your tax return for the student, you are considered to have paid the expenses. How amend a tax return Example. How amend a tax return In 2013, Ms. How amend a tax return Allen makes a payment directly to an eligible educational institution for her grandson Todd's qualified education expenses. How amend a tax return For purposes of claiming a lifetime learning credit, Todd is treated as receiving the money from his grandmother and, in turn, paying his qualified education expenses himself. How amend a tax return Unless an exemption for Todd is claimed on someone else's 2013 tax return, only Todd can use the payment to claim a lifetime learning credit. How amend a tax return If anyone, such as Todd's parents, claims an exemption for Todd on his or her 2013 tax return, whoever claims the exemption may be able to use the expenses to claim a lifetime learning credit. How amend a tax return If anyone else claims an exemption for Todd, Todd cannot claim a lifetime learning credit. How amend a tax return Tuition reduction. How amend a tax return   When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. How amend a tax return If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. How amend a tax return For more information on tuition reductions, see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. How amend a tax return Figuring the Credit The amount of the lifetime learning credit is 20% of the first $10,000 of qualified education expenses you paid for all eligible students. How amend a tax return The maximum amount of lifetime learning credit you can claim for 2013 is $2,000 (20% × $10,000). How amend a tax return However, that amount may be reduced based on your MAGI. How amend a tax return See Effect of the Amount of Your Income on the Amount of Your Credit , later. How amend a tax return Example. How amend a tax return Bruce and Toni Harper are married and file a joint tax return. How amend a tax return For 2013, their MAGI is $75,000. How amend a tax return Toni is attending a local college (an eligible educational institution) to earn credits toward a degree in nursing. How amend a tax return She already has a bachelor's degree in history and wants to become a nurse. How amend a tax return In August 2013, Toni paid $5,000 of qualified education expenses for her fall 2013 semester. How amend a tax return Bruce and Toni can claim a $1,000 (20% × $5,000) lifetime learning credit on their 2013 joint tax return. How amend a tax return Form 1098-T. How amend a tax return   To help you figure your lifetime learning credit, the student should receive Form 1098-T. How amend a tax return 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. How amend a tax return An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. How amend a tax return However, the amounts in boxes 1 and 2 of Form 1098-T might be different from what you paid. How amend a tax return When figuring the credit, use only the amounts you paid or are deemed to have paid in 2013 for qualified education expenses. How amend a tax return   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. How amend a tax return    The eligible educational institution may ask for a completed Form W-9S, or similar statement to obtain the student's name, address, and taxpayer identification number. How amend a tax return Effect of the Amount of Your Income on the Amount of Your Credit The amount of your lifetime learning credit is phased out (gradually reduced) if your MAGI is between $53,000 and $63,000 ($107,000 and $127,000 if you file a joint return). How amend a tax return You cannot claim a lifetime learning credit if your MAGI is $63,000 or more ($127,000 or more if you file a joint return). How amend a tax return Modified adjusted gross income (MAGI). How amend a tax return   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. How amend a tax return MAGI when using Form 1040A. How amend a tax return   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. How amend a tax return MAGI when using Form 1040. How amend a tax return   If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. How amend a tax return You can use Worksheet 3-1 to figure your MAGI. How amend a tax return Worksheet 3-1. How amend a tax return MAGI for the Lifetime Learning Credit 1. How amend a tax return Enter your adjusted gross income  (Form 1040, line 38)   1. How amend a tax return   2. How amend a tax return Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. How amend a tax return       3. How amend a tax return Enter your foreign housing deduction (Form 2555, line 50)   3. How amend a tax return       4. How amend a tax return Enter the amount of income from Puerto Rico you are excluding   4. How amend a tax return       5. How amend a tax return Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. How amend a tax return       6. How amend a tax return Add the amounts on lines 2, 3, 4, and 5   6. How amend a tax return   7. How amend a tax return Add the amounts on lines 1 and 6. How amend a tax return  This is your modified adjusted  gross income. How amend a tax return Enter this amount  on Form 8863, line 14   7. How amend a tax return   Phaseout. How amend a tax return   If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit using lines 10-18 of Form 8863. How amend a tax return The same method is shown in the following example. How amend a tax return Example. How amend a tax return You are filing a joint return with a MAGI of $112,000. How amend a tax return In 2013, you paid $6,600 of qualified education expenses. How amend a tax return You figure the tentative lifetime learning credit (20% of the first $10,000 of qualified education expenses you paid for all eligible students). How amend a tax return The result is a $1,320 (20% x $6,600) tentative credit. How amend a tax return Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($1,320) by a fraction. How amend a tax return The numerator of the fraction is $127,000 (the upper limit for those filing a joint return) minus your MAGI. How amend a tax return The denominator is $20,000, the range of incomes for the phaseout ($107,000 to $127,000). How amend a tax return The result is the amount of your phased out (reduced) lifetime learning credit ($990). How amend a tax return   $1,320 × $127,000 − $112,000  $20,000 = $990   Claiming the Credit You claim the lifetime learning credit by completing Form 8863 and submitting it with your Form 1040 or 1040A. How amend a tax return Enter the credit on Form 1040, line 49, or Form 1040A, line 31. How amend a tax return Note. How amend a tax return In Appendix A, Illustrated Example of Education Credits at the end of this publication, there is an example illustrating the use of Form 8863 when both the American opportunity credit and the lifetime learning credit are claimed on the same tax return. How amend a tax return Prev  Up  Next   Home   More Online Publications