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How Do I File Taxes For 2010

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How Do I File Taxes For 2010

How do i file taxes for 2010 16. How do i file taxes for 2010   Cómo Declarar Ganancias y Pérdidas Table of Contents Qué Hay de Nuevo Introduction Useful Items - You may want to see: Cómo Declarar Ganancias y Pérdidas de CapitalExcepción 1. How do i file taxes for 2010 Excepción 2. How do i file taxes for 2010 Presente el Formulario 1099-B o el Formulario 1099-S al IRS. How do i file taxes for 2010 Pérdidas de Capital Tasas Impositivas sobre Ganancias de Capital Qué Hay de Nuevo Tasas máximas de ganancias de capital. How do i file taxes for 2010  Para el año 2013, las tasas máximas de ganancias de capital son del 0%, 15%, 20%, 25% y 28%. How do i file taxes for 2010 Introduction En este capítulo se explica cómo declarar ganancias y pérdidas de capital provenientes de ventas, intercambios y otras enajenaciones de bienes de inversión en el Formulario 8949 y el Anexo D (Formulario 1040). How do i file taxes for 2010 Esta explicación abarca los siguientes temas: Cómo declarar ganancias y pérdidas a corto plazo. How do i file taxes for 2010 Cómo declarar ganancias y pérdidas a largo plazo. How do i file taxes for 2010 Cómo calcular pérdidas de capital que se van a trasladar al año siguiente. How do i file taxes for 2010 Cómo calcular los impuestos sobre una ganancia neta de capital. How do i file taxes for 2010 Si vende o de otro modo enajena bienes utilizados en una ocupación o negocio o en la producción de ingresos, vea la Publicación 544, Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés, antes de completar el Anexo D (Formulario 1040). How do i file taxes for 2010 Useful Items - You may want to see: Publicación 537 Installment Sales (Ventas a plazos), en inglés 544 Sales and Other Dispositions of Assets (Ventas y otras enajenaciones de activos), en inglés 550 Investment Income and Expenses (Ingresos y gastos de inversión), en inglés Formulario (e Instrucciones) 4797 Sales of Business Property (Ventas de bienes comerciales), en inglés 6252 Installment Sale Income (Ingresos de ventas a plazos), en inglés 8582 Passive Activity Loss Limitations (Limitaciones de pérdidas en actividades pasivas), en inglés 8949 Sales and Other Dispositions of Capital Assets (Ventas y otras enajenaciones de activos de capital, en inglés) Anexo D (Formulario 1040) Capital Gains and Losses (Ganancias y pérdidas de capital), en inglés Cómo Declarar Ganancias y Pérdidas de Capital Declare sus ganancias y pérdidas de capital en el Formulario 8949. How do i file taxes for 2010 Complete el Formulario 8949 antes de completar las líneas 1b, 2, 3, 8b, 9 ó 10 del Anexo D (Formulario 1040). How do i file taxes for 2010 Use el Formulario 8949 para declarar: La venta o intercambio de un activo de capital, la cual no se declaró en ningún otro formulario o anexo, Ganancias por canjes involuntarios (aparte de cuando se deba a un hecho fortuito o un robo) de activos de capital que no sirven para propósitos de negocio o lucro y Deudas incobrables que no provienen del negocio. How do i file taxes for 2010 Use el Anexo D (Formulario 1040): Para calcular la ganancia o pérdida total de las transacciones declaradas en el Formulario 8949; Para declarar una ganancia proveniente del Formulario 6252 o de la Parte I del Formulario 4797; Para declarar una ganancia o pérdida proveniente del Formulario 4684, 6781 u 8824; Para declarar distribuciones de ganancias de capital no declaradas directamente en el Formulario 1040 o en el Formulario 1040A; Para declarar una pérdida de capital trasladada del año tributario anterior al año tributario actual; Para declarar su parte de una ganancia (o pérdida) de una sociedad colectiva, sociedad anónima de tipo S, caudal hereditario o fideicomiso; Para declarar las transacciones informadas a usted en el Formulario 1099-B (o documento sustitutivo), el cual muestra las bases informadas al IRS y al cual no corresponde ninguno de los ajustes o códigos del Formulario 8949; y Para declarar ganancias de capital a largo plazo no distribuidas provenientes del Formulario 2439. How do i file taxes for 2010 Anote en el Formulario 8949 todas las ventas e intercambios de activos de capital (incluyendo acciones, bonos, etc. How do i file taxes for 2010 ) y de bienes raíces (si no se declararon en el Formulario 4684, 4797, 6252, 6781 u 8824 o la línea 1a u 8a del Anexo D). How do i file taxes for 2010 Declare estas transacciones aun si usted no recibió un Formulario 1099-B o 1099-S (u otra declaración sustitutiva) para la transacción. How do i file taxes for 2010 Declare las ganancias o pérdidas a corto plazo en la Parte I. How do i file taxes for 2010 Declare ganancias y pérdidas a largo plazo en la Parte II. How do i file taxes for 2010 Use cuantos Formularios 8949 sean necesarios. How do i file taxes for 2010 Excepciones a la presentación del Formulario 8949 y el Anexo D (Formulario 1040). How do i file taxes for 2010   Hay ciertas circunstancias bajo las cuales usted tal vez no tenga que presentar el Formulario 8949 ni el Anexo D (Formulario 1040). How do i file taxes for 2010 Excepción 1. How do i file taxes for 2010   Usted no tiene que presentar el Formulario 8949 ni el Anexo D (Formulario 1040) si no tiene pérdidas de capital y sus únicas ganancias de capital son distribuciones de ganancia de capital correspondientes al (los) recuadro(s) 2a del (de los) Formulario(s) 1099-DIV (o declaraciones sustitutivas). How do i file taxes for 2010 (Si alguno de los Formularios 1099-DIV (o declaraciones sustitutivas) que usted recibe indica una cifra en el recuadro 2b (ganancias no recuperadas conforme a la sección 1250), el recuadro 2c (ganancias conforme a la sección 1202) o el recuadro 2d (ganancias (tasas de 28%) por la venta de objetos coleccionables, usted no reúne los requisitos para esta excepción). How do i file taxes for 2010 Si reúne los requisitos para esta excepción, declare sus distribuciones de ganancia de capital directamente en la línea 13 del Formulario 1040 y marque el recuadro en la línea 13. How do i file taxes for 2010 También debe utillizar la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para impuestos sobre dividendos y ganancias de capital), que encontrará en las Instrucciones del Formulario 1040, para calcular su impuesto. How do i file taxes for 2010 Usted pede declarar sus distribuciones de ganancias de capital en la línea 10 del Formulario 1040A, en vez del Formulario 1040, si ninguno de los Formularios 1099-DIV (o declaraciones sustitutivas) que usted recibió indica una cifra en los recuadros 2b, 2c o 2d y usted no tiene que presentar el Formulario 1040. How do i file taxes for 2010 Excepción 2. How do i file taxes for 2010   Usted tiene que presentar el Anexo D (Formulario 1040), pero por lo general no tiene que presentar el Formulario 8949 si la Excepción 1 no le corresponde y sus únicas ganancias y pérdidas de capital son: Distribuciones de ganancias de capital; Una pérdida de capital trasladada de un año anterior; Una ganancia correspondiente al Formulario 2439 ó 6252, o de la Parte I del Formulario 4797; Una ganancia o pérdida correspondiente al Formulario 4684, 6781 u 8824; Una ganancia o pérdida de una sociedad colectiva, sociedad anónima de tipo S, un caudal hereditario o fideicomiso; Ganancias y pérdidas de transacciones por las cuales usted recibió el Formulario 1099-B (o un documento sustitutivo), el cual muestra las bases informadas al IRS y por lo cual no necesita hacer ningún ajuste en la columna (g) del Formulario 8949 ni anotar ningún código en la columna (f) del Formulario 8949. How do i file taxes for 2010 Ventas a plazos. How do i file taxes for 2010   No puede utilizar el método de pago a plazos para declarar una ganancia proveniente de la venta de acciones o valores bursátiles cotizados en un mercado de valores bursátiles establecido. How do i file taxes for 2010 Tiene que declarar la totalidad de la ganancia en el año de la venta (el año en el que ocurra la fecha de canje). How do i file taxes for 2010 Ganancias y pérdidas provenientes de una actividad pasiva. How do i file taxes for 2010    Si tiene pérdidas o ganancias provenientes de una actividad pasiva, es posible que tenga que declararlas también en el Formulario 8582. How do i file taxes for 2010 En ciertos casos, la pérdida puede ser limitada conforme a las reglas de actividad pasiva. How do i file taxes for 2010 Consulte el Formulario 8582 y sus instrucciones correspondientes por separado para obtener información adicional sobre la declaración de ganancias y pérdidas de capital producto de una actividad pasiva. How do i file taxes for 2010 Transacciones que se declaran en el Formulario 1099-B. How do i file taxes for 2010   Si vendió bienes, como acciones, bonos o ciertos productos de consumo bursátiles, a través de un agente corredor bursátil, éste debe entregarle un Formulario 1099-B o documento sustitutivo. How do i file taxes for 2010 Utilice el Formulario 1099-B o el documento sustitutivo para completar el Formulario 8949. How do i file taxes for 2010 Si usted vendió un valor bursátil garantizado en 2013, su agente corredor bursátil le mandará un Formulario 1099-B (o declaración sustitutiva) que le indica la base. How do i file taxes for 2010 Esto le ayudará a completar el Formulario 8949. How do i file taxes for 2010 Por lo general, los valores bursátiles garantizados son aquéllos que usted adquirió después del año 2010. How do i file taxes for 2010   Declare las ganancias brutas que aparezcan en el recuadro 2a del Formulario 1099-B como el precio de venta en la columna (d) de la Parte I o la Parte II del Formulario 8949, según le corresponda a su caso. How do i file taxes for 2010 No obstante, si el agente corredor bursátil indica, en el recuadro 2a del Formulario 1099-B, haber declarado al IRS las ganancias brutas (precio de venta) menos comisiones y primas de opciones, anote el precio neto de venta resultante en la columna (d) de la Parte I o de la Parte II del Formulario 8949, según le corresponda a su caso. How do i file taxes for 2010   Incluya en la columna (g) todo gasto de venta, tal como honorarios de agente corredor bursátil, comisiones, impuestos de traspaso locales y estatales y primas de opciones, a menos que usted haya declarado el precio neto de venta en la columna (d). How do i file taxes for 2010 Si incluye un gasto de venta en la columna (g), anote “E” en la columna (f). How do i file taxes for 2010 Transacciones que se declaran en el Formulario 1099-CAP. How do i file taxes for 2010   Si es dueño de acciones de una sociedad anónima en cuyo control o estructura de capital haya habido cambios importantes, dicha sociedad debe enviarle el Formulario 1099-CAP o documento sustitutivo. How do i file taxes for 2010 Utilice el Formulario 1099-CAP o documento sustitutivo para completar el Formulario 8949. How do i file taxes for 2010 Si sus cálculos indican que, debido al cambio, usted tendría una pérdida, no anote ninguna cantidad en el Formulario 8949 ni en el Anexo D (Formulario 1040). How do i file taxes for 2010 Esta transacción no le da la posibilidad de declarar una pérdida en el Anexo D (Formulario 1040). How do i file taxes for 2010   Declare el total de la cantidad recibida indicado en el recuadro 2 del Formulario 1099-CAP como el precio de venta en la columna (d) de la Parte I o de la Parte II del Formulario 8949, según le corresponda a su caso. How do i file taxes for 2010 Transacciones que se declaran en el Formulario 1099-S. How do i file taxes for 2010   Si vendió o canjeó bienes raíces que han de declararse, normalmente la persona encargada de comunicar transacciones de bienes raíces debe entregarle un Formulario 1099-S en el que se indiquen las ganancias brutas. How do i file taxes for 2010    “Bienes raíces que han de declararse” son toda participación en una propiedad actual o futura en cualesquiera de los siguientes casos: Terrenos con o sin mejoras, incluido el espacio aéreo; Estructuras intrínsecamente permanentes, incluido todo edificio residencial, comercial o industrial; Una unidad de condominio y sus instalaciones accesorias y elementos comunes, incluido el terreno; y Acciones de cooperativa de viviendas en sociedad anónima (como se define en la sección 216 del Código de Impuestos Internos). How do i file taxes for 2010   Una “persona encargada de comunicar transacciones de bienes raíces” puede ser el abogado del comprador, el abogado de usted, una compañía de escrituras de propiedad o de cuentas en depósito, un prestamista hipotecario, el agente corredor bursátil de usted, el agente corredor bursátil del comprador o la persona que adquiera la mayor participación en la propiedad. How do i file taxes for 2010   El Formulario 1099-S indicará las ganancias brutas de la venta o el intercambio en el recuadro 2. How do i file taxes for 2010 Consulte las Instrucciones para el Formulario 8949 y las Instrucciones para el Anexo D (Formulario 1040) para saber cómo se declaran estas transacciones e incluirlas en la Parte I o Parte II del Formulario 8949, tal como le corresponda a su caso. How do i file taxes for 2010 No obstante, declare los intercambios por bienes del mismo tipo en el Formulario 8824. How do i file taxes for 2010   Es ilegal que una persona encargada de comunicar transacciones de bienes raíces le cobre un cargo por separado por cumplir con el requisito de presentación del Formulario 1099-S. How do i file taxes for 2010 Nominatarios. How do i file taxes for 2010   Si recibe ganancias brutas como nominatario (es decir, las ganancias brutas están a nombre suyo pero en realidad pertenecen a otra persona), vea las Instrucciones para el Formulario 8949, para saber cómo declarar estas cantidades en el Formulario 8949. How do i file taxes for 2010 Presente el Formulario 1099-B o el Formulario 1099-S al IRS. How do i file taxes for 2010   Si recibió ganancias brutas en calidad de nominatario en 2013, tiene que presentar al IRS el Formulario 1099-B o el Formulario 1099-S correspondiente a dichas ganancias. How do i file taxes for 2010 Envíe el Formulario 1099-B o el Formulario 1099-S junto con el Formulario 1096, Annual Summary and Transmittal of U. How do i file taxes for 2010 S. How do i file taxes for 2010 Information Returns (Resumen e informe anual de declaraciones informativas de los Estados Unidos), en inglés, al Centro de Servicio del Servicio de Impuestos Internos que le corresponda a más tardar el 28 de febrero de 2014 (31 de marzo de 2014, si presenta el Formulario 1099-B o el Formulario 1099-S por vía electrónica). How do i file taxes for 2010 Entregue la Copia B del Formulario 1099-B o del Formulario 1099-S al verdadero dueño de dichas ganancias a más tardar el 18 de febrero de 2014. How do i file taxes for 2010 En el Formulario 1099-B, usted debe constar como “Payer” (Pagador). How do i file taxes for 2010 El otro dueño debe constar como “Recipient” (Destinatario). How do i file taxes for 2010 En el Formulario 1099-S, usted debe constar como “Filer” (Declarante). How do i file taxes for 2010 El otro dueño debe constar como “Transferor” (Cesionista). How do i file taxes for 2010 No obstante, usted no tiene que presentar el Formulario 1099-B ni el Formulario 1099-S para mostrar las ganancias de su cónyuge. How do i file taxes for 2010 Para más información acerca de los requisitos de presentación de ciertas declaraciones informativas y las multas por no presentar (o facilitar) dichas declaraciones, vea las General Instructions for Certain Information Returns (Instrucciones generales para determinadas declaraciones informativas), en inglés. How do i file taxes for 2010 Si presenta la declaración electrónicamente, vea la Publicación 1220, en inglés. How do i file taxes for 2010 Venta de bienes comprados en diferentes ocasiones. How do i file taxes for 2010   Si vende un paquete de acciones u otros bienes que haya comprado en diferentes ocasiones, declare la pérdida o ganancia a corto plazo procedente de la venta en una fila de la Parte I del Formulario 8949 y anote la pérdida o ganancia a largo plazo en una fila de la Parte II del Formulario 8949. How do i file taxes for 2010 Escriba “Various” (Varios) en la columna (b) para la “Date acquired” (Fecha de adquisición). How do i file taxes for 2010 Gastos de venta. How do i file taxes for 2010    En la columna (g) del Formulario 8949, incluya todo gasto de venta, como honorarios de agentes corredores bursátiles, comisiones, impuestos estatales y locales sobre traspasos y primas de opciones, a menos que usted haya declarado el precio neto de ventas en la columna (d). How do i file taxes for 2010 Si usted incluyó un gasto de venta en la columna (g), anote “E” en la columna (f). How do i file taxes for 2010   Para más información sobre los ajustes a la base, vea el capítulo 13. How do i file taxes for 2010 Ganancias y pérdidas a corto plazo. How do i file taxes for 2010   Las ganancias o pérdidas de capital sobre la venta o canje de bienes de inversión que haya tenido por 1 año o menos se consideran pérdidas o ganancias de capital a corto plazo. How do i file taxes for 2010 Declárelas en la Parte I del Formulario 8949. How do i file taxes for 2010   Sume su parte de pérdidas o ganancias de capital a corto plazo provenientes de sociedades colectivas, sociedades anónimas de tipo S, caudales hereditarios y fideicomisos, además de toda pérdida de capital a corto plazo que se haya trasladado de un año anterior, con las demás ganancias y pérdidas de capital a corto plazo para calcular la pérdida o ganancia de capital neta a corto plazo en la línea 7 del Anexo D (Formulario 1040). How do i file taxes for 2010 Ganancias y pérdidas a largo plazo. How do i file taxes for 2010    Una ganancia o pérdida de capital sobre la venta o canje de bienes de inversión que haya tenido durante más de 1 año se considera ganancia o pérdida de capital a largo plazo. How do i file taxes for 2010 Declárela en la Parte II del Formulario 8949. How do i file taxes for 2010   Usted debe declarar lo siguiente en la Parte II del Anexo D (Formulario 1040): Ganancias de capital a largo plazo de un fondo mutuo (u otra sociedad inversionista reglamentada) o de una sociedad de inversión inmobiliaria (REIT, por sus siglas en inglés) que no hayan sido distribuidas; Su participación de las ganancias y pérdidas de capital a largo plazo de sociedades colectivas, sociedades anónimas de tipo S, caudales hereditarios y fideicomisos; Toda distribución de ganancia de capital proveniente de fondos mutuos y sociedades de inversión inmobiliaria (REIT) que no se haya declarado directamente en la línea 10 del Formulario 1040A o la línea 13 del Formulario 1040; y Pérdidas de capital a largo plazo trasladadas de un año anterior. How do i file taxes for 2010    El resultado que se dé después de sumar dichas cantidades con las demás ganancias de capital a largo plazo y restar las pérdidas de capital a largo plazo es la ganancia o pérdida de capital neta a largo plazo (línea 15 del Anexo D (Formulario 1040)). How do i file taxes for 2010 Total de la ganancia o pérdida neta. How do i file taxes for 2010   Para calcular el total de la ganancia o pérdida neta, sume la ganancia o pérdida de capital neta a corto plazo (línea 7 del Anexo D (Formulario 1040)) con la pérdida o ganancia de capital neta a largo plazo (línea 15 del Anexo D (Formulario 1040)). How do i file taxes for 2010 Anote el resultado en la línea 16 de la Parte III del Anexo D (Formulario 1040). How do i file taxes for 2010 Si tiene pérdidas que sobrepasen las ganancias, vea Pérdidas de Capital , que se encuentra a continuación. How do i file taxes for 2010 Si las líneas 15 y 16 del Anexo D (Formulario 1040) son ganancias y el ingreso sujeto a impuestos en su Formulario 1040 es mayor de cero, vea Tasas Impositivas sobre Ganancias de Capital , más adelante. How do i file taxes for 2010 Pérdidas de Capital Si las pérdidas de capital son mayores que las ganancias de capital, se puede declarar una deducción por pérdida de capital. How do i file taxes for 2010 Declare la cantidad de la deducción en la línea 13 del Formulario 1040, anotándola entre paréntesis. How do i file taxes for 2010 Límite sobre la deducción. How do i file taxes for 2010   La deducción por ganancia de capital permisible, calculada en el Anexo D (Formulario 1040), es la cantidad que sea menor de las siguientes: $3,000 ($1,500 si es casado y presenta una declaración por separado) o El total de la pérdida neta tal como aparece en la línea 16 del Anexo D (Formulario 1040). How do i file taxes for 2010   Puede usar el total de la pérdida neta para reducir sus ingresos en una cantidad equivalente, hasta el límite de $3,000. How do i file taxes for 2010 Traslado de pérdida de capital. How do i file taxes for 2010   Si el total de la pérdida neta en la línea 16 del Anexo D (Formulario 1040) sobrepasa el límite anual de las deducciones de pérdida de capital, puede trasladar al año siguiente la parte sobrante y tratarla como si hubiera incurrido en la misma durante ese próximo año. How do i file taxes for 2010 Si una parte de la pérdida sigue sin usarse, puede trasladarla a años posteriores hasta que se agote. How do i file taxes for 2010   Cuando calcule una cantidad de pérdida de capital que se trasladará al año siguiente, tiene que tener en cuenta la deducción permisible del año en curso, la haya reclamado o no, e independientemente de si presentó o no una declaración correspondiente al año en curso. How do i file taxes for 2010   Cuando traslade una pérdida a un año posterior, ésta sigue siendo una pérdida a largo plazo o corto plazo. How do i file taxes for 2010 Una pérdida de capital a largo plazo que usted traslade al año tributario siguiente reducirá las ganancias de capital a largo plazo de dicho año antes de reducir las ganancias de capital a corto plazo de dicho año. How do i file taxes for 2010 Cálculo de la cantidad trasladada al año siguiente. How do i file taxes for 2010   La cantidad de la pérdida de capital a trasladarse al año siguiente es la cantidad de pérdida neta total que sea mayor que la cantidad menor entre: La deducción por pérdida de capital permisible durante el año o Sus ingresos sujetos a impuestos aumentados por la deducción por pérdida de capital permisible durante el año y la deducción por exenciones personales. How do i file taxes for 2010   Si las deducciones son mayores que sus ingresos brutos del año tributario, utilice los ingresos negativos sujetos a impuestos al calcular la cantidad en el punto (2). How do i file taxes for 2010    Complete la Capital Loss Carryover Worksheet (Hoja de trabajo para calcular la pérdida de capital a trasladarse a años posteriores) en las Instrucciones del Anexo D o la Publicación 550, en inglés, para calcular la parte de la pérdida de capital que se pueda trasladar. How do i file taxes for 2010 Ejemplo. How do i file taxes for 2010 Roberto y Gloria vendieron valores bursátiles en 2013. How do i file taxes for 2010 Las ventas dieron por resultado una pérdida de capital de $7,000. How do i file taxes for 2010 No hicieron otras transacciones de capital. How do i file taxes for 2010 Sus ingresos sujetos a impuestos fueron $26,000. How do i file taxes for 2010 En la declaración conjunta de 2013, pueden deducir $3,000. How do i file taxes for 2010 La parte de la pérdida que no usaron, $4,000 ($7,000 − $3,000), se puede trasladar a 2014. How do i file taxes for 2010 Si la pérdida de capital hubiera sido $2,000, la deducción por pérdida de capital también habría sido $2,000. How do i file taxes for 2010 No tendrían cantidad alguna a trasladar al año siguiente. How do i file taxes for 2010 Utilice primero las pérdidas a corto plazo. How do i file taxes for 2010   Cuando calcule la cantidad a trasladarse al año siguiente, utilice primero las pérdidas de capital a corto plazo, aunque haya incurrido en las mismas después de una pérdida de capital a largo plazo. How do i file taxes for 2010 Si no ha alcanzado el límite de la deducción por pérdidas de capital después de haber utilizado las pérdidas de capital a corto plazo, utilice las pérdidas de capital a largo plazo hasta alcanzar el límite. How do i file taxes for 2010 Pérdida de capital de un difunto. How do i file taxes for 2010    Una pérdida de capital sufrida por una persona en su último año tributario antes de fallecer (o que se haya traspasado de un año anterior a dicho año) se puede deducir sólo en la última declaración del impuesto sobre el ingreso personal que se presente a nombre del difunto. How do i file taxes for 2010 Los límites de pérdida de capital explicados anteriormente aún corresponden en este caso. How do i file taxes for 2010 El caudal hereditario (patrimonio) del difunto no puede deducir ninguna parte de la pérdida ni trasladarla a años posteriores. How do i file taxes for 2010 Declaraciones conjuntas y separadas. How do i file taxes for 2010   Si antes usted y su cónyuge presentaban declaraciones por separado y ahora presentan una declaración conjunta, sume las cantidades de pérdida de capital que cada uno de ustedes haya trasladado a un año siguiente. How do i file taxes for 2010 No obstante, si antes usted y su cónyuge presentaban una declaración conjunta y ahora presentan declaraciones por separado, toda pérdida de capital que se haya trasladado a un año siguiente se puede deducir sólo en la declaración del cónyuge que de hecho sufrió la pérdida. How do i file taxes for 2010 Tasas Impositivas sobre Ganancias de Capital Las tasas impositivas correspondientes a una ganancia neta de capital suelen ser más bajas que las que corresponden a otros ingresos. How do i file taxes for 2010 Estas tasas reducidas se conocen como las “tasas máximas de ganancias de capital”. How do i file taxes for 2010 El término “ganancia neta de capital” designa la cantidad por la que la ganancia neta de capital a largo plazo del año supera la pérdida de capital neta a corto plazo. How do i file taxes for 2010 Para el año 2013, las tasas máximas correspondientes a ganancias de capital son 0%, 15%, 20%, 25% y 28%. How do i file taxes for 2010 Vea la Tabla 16-1, para obtener información detallada. How do i file taxes for 2010 Si para calcular el impuesto utiliza las tasas máximas correspondientes a ganancias de capital y el cálculo normal de impuestos le resulta en unos impuestos más bajos, el cálculo normal de impuestos es el que le corresponde. How do i file taxes for 2010 Ejemplo. How do i file taxes for 2010 Su ganancia neta de capital proviene en su totalidad de la venta de artículos coleccionables, por lo tanto, la tasa correspondiente a la ganancia de capital es 28%. How do i file taxes for 2010 Si de otro modo está sujeto a una tasa menor del 28%, la tasa del 28% no corresponde. How do i file taxes for 2010 Deducción de los intereses de inversiones. How do i file taxes for 2010   Si declara una deducción de intereses de inversiones, tal vez tenga que reducir la cantidad de su ganancia neta de capital que reúna los requisitos para las tasas impositivas sobre ganancias de capital. How do i file taxes for 2010 Réstele la cantidad de la ganancia neta de capital que opte por incluir en los ingresos de inversiones al calcular el límite de la deducción de los mismos. How do i file taxes for 2010 Para hacer esto, se utiliza la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D) en las Instrucciones para el Anexo D (Formulario 1040), en inglés, o la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para los impuestos sobre dividendos calificados y ganancias de capital), que se encuentra en las instrucciones por separado correspondientes a los Formularios 1040 y 1040A, en inglés. How do i file taxes for 2010 Para más información acerca del límite de los intereses procedentes de inversiones, vea Interest Expenses (Gastos de intereses) en el capítulo 3 de la Publicación 550, en inglés. How do i file taxes for 2010 Tabla 16-1. How do i file taxes for 2010 ¿Cuál es la Tasa Máxima de Ganancias de Capital que le Corresponde? SI la ganancia neta de capital se deriva de . How do i file taxes for 2010 . How do i file taxes for 2010 . How do i file taxes for 2010 ENTONCES la  tasa máxima de  ganancia de capital es . How do i file taxes for 2010 . How do i file taxes for 2010 . How do i file taxes for 2010 una ganancia producto de artículos coleccionables 28% una ganancia, la cual reúne los requisitos, sobre acciones de pequeños negocios calificados menos la exclusión conforme a la sección 1202 28% una ganancia conforme a la sección 1250 no recuperada 25% otra ganancia1 y la tasa impositiva normal correspondiente es 39. How do i file taxes for 2010 6% 20% otra ganancia1 y la tasa impositiva normal correspondiente es 25%, 28%, 33% o 35% 15% otra ganancia1 y la tasa impositiva normal correspondiente es 10% o 15% 0% 1 El término “otra ganancia” significa toda ganancia que no sea una ganancia procedente de artículos coleccionables, ganancia sobre acciones de pequeños negocios calificados o una ganancia conforme a la sección 1250 no recuperada. How do i file taxes for 2010     Ganancia o pérdida procedente de artículos coleccionables. How do i file taxes for 2010   Ésta es una ganancia o pérdida que se deriva de la venta o canje de una obra de arte, alfombra, antigüedad, metal (como oro, plata y platino en barras), piedra preciosa, estampilla o sello, moneda o bebida alcohólica que haya tenido más de 1 año. How do i file taxes for 2010   Se considera que una ganancia procedente de artículos coleccionables abarca las ganancias resultantes de la venta de una participación en una sociedad colectiva, sociedad anónima de tipo S o fideicomiso, generadas por una plusvalía no realizada de dichos artículos coleccionables. How do i file taxes for 2010 Ganancia sobre acciones de pequeños negocios calificados. How do i file taxes for 2010    Si obtuvo una ganancia de acciones de pequeños negocios calificados y fue dueño de dichas acciones durante más de 5 años, normalmente puede excluir de los ingresos una parte o la totalidad de su ganancia bajo la sección 1202. How do i file taxes for 2010 La ganancia que cumple los requisitos, menos la exclusión conforme a la sección 1202, es una ganancia con una tasa de 28%. How do i file taxes for 2010 Vea Gains on Qualified Small Business Stock (Ganancias de acciones de pequeños negocios calificados) en el capítulo 4 de la Publicación 550, en inglés. How do i file taxes for 2010 Ganancia conforme a la sección 1250 no recuperada. How do i file taxes for 2010    Por lo general, ésta es toda parte de la ganancia de capital que se haya originado por la venta de bienes conforme a la sección 1250 (bienes raíces) debido a depreciación (pero no más que la ganancia neta conforme a la sección 1231) menos toda pérdida neta en el grupo del 28%. How do i file taxes for 2010 Use la Unrecaptured Section 1250 Gain Worksheet (Hoja de trabajo de ganancias no recuperadas conforme a la sección 1250) de las Instrucciones del Anexo D (Formulario 1040), en inglés, para calcular la ganancia no recuperada conforme a la sección 1250. How do i file taxes for 2010 Para más información sobre bienes conforme a la sección 1250 y ganancias conforme a la sección 1231, vea el capítulo 3 de la Publicación 544, en inglés. How do i file taxes for 2010 Cálculo de los impuestos a base de las tasas máximas de ganancias de capital. How do i file taxes for 2010   Utilice la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para los impuestos sobre dividendos calificados y ganancias de capital) o la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D), la que corresponda, para calcular su impuesto si ha recibido dividendos calificados o ganancia neta de capital. How do i file taxes for 2010 Tiene ganancia neta de capital si las cantidades de las líneas 15 y 16 del Anexo D ambas son ganancias. How do i file taxes for 2010 Hoja de trabajo para los impuestos del Anexo D. How do i file taxes for 2010   Utilice la Schedule D Tax Worksheet (Hoja de trabajo para los impuestos del Anexo D) que se encuentra en las Instrucciones del Anexo D (Formulario 1040) para calcular el impuesto si se dan las siguientes condiciones: Tiene que presentar el Anexo D (Formulario 1040) y La cantidad de la línea 18 (ganancia a una tasa de 28%) o la línea 19 (ganancia no recuperada conforme a la sección 1250) del Anexo D (Formulario 1040) es mayor de cero. How do i file taxes for 2010 Hoja de trabajo para el impuesto sobre dividendos calificados y ganancias de capital. How do i file taxes for 2010   Utilice la Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para el impuesto sobre los dividendos calificados y ganancias de capital) de las instrucciones del Formulario 1040 o Formulario 1040A (el que presente) para calcular el impuesto si no tiene que utilizar la Hoja de trabajo para los impuestos del Anexo D (como se explica anteriormente) y corresponde cualquiera de los siguientes puntos: Recibió dividendos calificados. How do i file taxes for 2010 (Vea Dividendos Calificados en el capítulo 8). How do i file taxes for 2010 No tiene que presentar el Anexo D (Formulario 1040) y recibió distribuciones de ganancias de capital. How do i file taxes for 2010 (Vea Excepciones a la presentación del Formulario 8949 y el Anexo D (Formulario 1040) , anteriormente). How do i file taxes for 2010 Las cantidades de las líneas 15 y 16 del Anexo D (Formulario 1040) son mayores de cero. How do i file taxes for 2010 Impuesto mínimo alternativo. How do i file taxes for 2010   Estas tasas de ganancias de capital se utilizan también para calcular el impuesto mínimo alternativo. How do i file taxes for 2010 Prev  Up  Next   Home   More Online Publications
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City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Office of the Attorney General

Website: Office of the Attorney General

Address: Office of the Attorney General
Consumer Protection Division
PO Box 30213
Lansing, MI 48909-7713

Phone Number: 517-373-1140

Toll-free: 1-877-765-8388 (MI)

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Website: Michigan Department of Agriculture and Rural Development

Address: Michigan Department of Agriculture and Rural Development
Consumer Protection Section
Weights & Measures
PO Box 30017
Lansing, MI 48909

Toll-free: 1-800-292-3939

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Macomb County Consumer Protection Unit

Website: Macomb County Consumer Protection Unit

Address: Macomb County Consumer Protection Unit
Consumer Protection Unit
One S. Main St., 3rd Floor
Mt. Clemens, MI 48043

Phone Number: 586-469-5600

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The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

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Address: Department of Insurance and Financial Services
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Lansing, MI 48909-7720

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Securities Division
PO Box 30018
Lansing, MI 48909

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The How Do I File Taxes For 2010

How do i file taxes for 2010 7. How do i file taxes for 2010   Coverdell Education Savings Account (ESA) Table of Contents Introduction What Is a Coverdell ESAQualified Education Expenses ContributionsContribution Limits Additional Tax on Excess Contributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Transfer Because of Divorce DistributionsTax-Free Distributions Taxable Distributions When Assets Must Be Distributed Introduction If your modified adjusted gross income (MAGI) is less than $110,000 ($220,000 if filing a joint return), you may be able to establish a Coverdell ESA to finance the qualified education expenses of a designated beneficiary. How do i file taxes for 2010 For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return. How do i file taxes for 2010 There is no limit on the number of separate Coverdell ESAs that can be established for a designated beneficiary. How do i file taxes for 2010 However, total contributions for the beneficiary in any year cannot be more than $2,000, no matter how many accounts have been established. How do i file taxes for 2010 See Contributions , later. How do i file taxes for 2010 This benefit applies not only to higher education expenses, but also to elementary and secondary education expenses. How do i file taxes for 2010 What is the tax benefit of the Coverdell ESA. How do i file taxes for 2010   Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed. How do i file taxes for 2010   If, for a year, distributions from an account are not more than a designated beneficiary's qualified education expenses at an eligible educational institution, the beneficiary will not owe tax on the distributions. How do i file taxes for 2010 See Tax-Free Distributions , later. How do i file taxes for 2010    Table 7-1 summarizes the main features of the Coverdell ESA. How do i file taxes for 2010 Table 7-1. How do i file taxes for 2010 Coverdell ESA at a Glance Do not rely on this table alone. How do i file taxes for 2010 It provides only general highlights. How do i file taxes for 2010 See the text for definitions of terms in bold type and for more complete explanations. How do i file taxes for 2010 Question Answer What is a Coverdell ESA? A savings account that is set up to pay the qualified education expenses of a designated beneficiary. How do i file taxes for 2010 Where can it be established? It can be opened in the United States at any bank or other IRS-approved entity that offers Coverdell ESAs. How do i file taxes for 2010 Who can have a Coverdell ESA? Any beneficiary who is under age 18 or is a special needs beneficiary. How do i file taxes for 2010 Who can contribute to a Coverdell ESA? Generally, any individual (including the beneficiary) whose modified adjusted gross income for the year is less than $110,000 ($220,000 in the case of a joint return). How do i file taxes for 2010 Are distributions tax free? Yes, if the distributions are not more than the beneficiary's adjusted qualified education expenses for the year. How do i file taxes for 2010 What Is a Coverdell ESA A Coverdell ESA is a trust or custodial account created or organized in the United States only for the purpose of paying the qualified education expenses of the Designated beneficiary (defined later) of the account. How do i file taxes for 2010 When the account is established, the designated beneficiary must be under age 18 or a special needs beneficiary. How do i file taxes for 2010 To be treated as a Coverdell ESA, the account must be designated as a Coverdell ESA when it is created. How do i file taxes for 2010 The document creating and governing the account must be in writing and must satisfy the following requirements. How do i file taxes for 2010 The trustee or custodian must be a bank or an entity approved by the IRS. How do i file taxes for 2010 The document must provide that the trustee or custodian can only accept a contribution that meets all of the following conditions. How do i file taxes for 2010 The contribution is in cash. How do i file taxes for 2010 The contribution is made before the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. How do i file taxes for 2010 The contribution would not result in total contributions for the year (not including rollover contributions) being more than $2,000. How do i file taxes for 2010 Money in the account cannot be invested in life insurance contracts. How do i file taxes for 2010 Money in the account cannot be combined with other property except in a common trust fund or common investment fund. How do i file taxes for 2010 The balance in the account generally must be distributed within 30 days after the earlier of the following events. How do i file taxes for 2010 The beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary. How do i file taxes for 2010 The beneficiary's death. How do i file taxes for 2010 Qualified Education Expenses Generally, these are expenses required for the enrollment or attendance of the designated beneficiary at an eligible educational institution. How do i file taxes for 2010 For purposes of Coverdell ESAs, the expenses can be either qualified higher education expenses or qualified elementary and secondary education expenses. How do i file taxes for 2010 Designated beneficiary. How do i file taxes for 2010   This is the individual named in the document creating the trust or custodial account to receive the benefit of the funds in the account. How do i file taxes for 2010 Contributions to a qualified tuition program (QTP). How do i file taxes for 2010   A contribution to a QTP is a qualified education expense if the contribution is on behalf of the designated beneficiary of the Coverdell ESA. How do i file taxes for 2010 In the case of a change in beneficiary, this is a qualified expense only if the new beneficiary is a family member of that designated beneficiary. How do i file taxes for 2010 See chapter 8, Qualified Tuition Program . How do i file taxes for 2010 Eligible Educational Institution For purposes of Coverdell ESAs, an eligible educational institution can be either an eligible postsecondary school or an eligible elementary or secondary school. How do i file taxes for 2010 Eligible postsecondary school. How do i file taxes for 2010   This is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. How do i file taxes for 2010 S. How do i file taxes for 2010 Department of Education. How do i file taxes for 2010 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. How do i file taxes for 2010 The educational institution should be able to tell you if it is an eligible educational institution. How do i file taxes for 2010   Certain educational institutions located outside the United States also participate in the U. How do i file taxes for 2010 S. How do i file taxes for 2010 Department of Education's Federal Student Aid (FSA) programs. How do i file taxes for 2010 Eligible elementary or secondary school. How do i file taxes for 2010   This is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. How do i file taxes for 2010 Qualified Higher Education Expenses These are expenses related to enrollment or attendance at an eligible postsecondary school. How do i file taxes for 2010 As shown in the following list, to be qualified, some of the expenses must be required by the school and some must be incurred by students who are enrolled at least half-time. How do i file taxes for 2010 The following expenses must be required for enrollment or attendance of a designated beneficiary at an eligible postsecondary school. How do i file taxes for 2010 Tuition and fees. How do i file taxes for 2010 Books, supplies, and equipment. How do i file taxes for 2010 Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible postsecondary school. How do i file taxes for 2010 Expenses for room and board must be incurred by students who are enrolled at least half-time (defined below). How do i file taxes for 2010 The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. How do i file taxes for 2010 The allowance for room and board, as determined by the school, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. How do i file taxes for 2010 The actual amount charged if the student is residing in housing owned or operated by the school. How do i file taxes for 2010 Half-time student. How do i file taxes for 2010   A student is enrolled “at least half-time” if he or she 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. How do i file taxes for 2010 Qualified Elementary and Secondary Education Expenses These are expenses related to enrollment or attendance at an eligible elementary or secondary school. How do i file taxes for 2010 As shown in the following list, to be qualified, some of the expenses must be required or provided by the school. How do i file taxes for 2010 There are special rules for computer-related expenses. How do i file taxes for 2010 The following expenses must be incurred by a designated beneficiary in connection with enrollment or attendance at an eligible elementary or secondary school. How do i file taxes for 2010 Tuition and fees. How do i file taxes for 2010 Books, supplies, and equipment. How do i file taxes for 2010 Academic tutoring. How do i file taxes for 2010 Special needs services for a special needs beneficiary. How do i file taxes for 2010 The following expenses must be required or provided by an eligible elementary or secondary school in connection with attendance or enrollment at the school. How do i file taxes for 2010 Room and board. How do i file taxes for 2010 Uniforms. How do i file taxes for 2010 Transportation. How do i file taxes for 2010 Supplementary items and services (including extended day programs). How do i file taxes for 2010 The purchase of computer technology, equipment, or Internet access and related services is a qualified elementary and secondary education expense if it is to be used by the beneficiary and the beneficiary's family during any of the years the beneficiary is in elementary or secondary school. How do i file taxes for 2010 (This does not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature. How do i file taxes for 2010 ) Contributions Any individual (including the designated beneficiary) can contribute to a Coverdell ESA if the individual's MAGI (defined later under Contribution Limits ) for the year is less than $110,000. How do i file taxes for 2010 For individuals filing joint returns, that amount is $220,000. How do i file taxes for 2010 Organizations, such as corporations and trusts, can also contribute to Coverdell ESAs. How do i file taxes for 2010 There is no requirement that an organization's income be below a certain level. How do i file taxes for 2010 Contributions must meet all of the following requirements. How do i file taxes for 2010 They must be in cash. How do i file taxes for 2010 They cannot be made after the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. How do i file taxes for 2010 They must be made by the due date of the contributor's tax return (not including extensions). How do i file taxes for 2010 Contributions can be made to one or several Coverdell ESAs for the same designated beneficiary provided that the total contributions are not more than the contribution limits (defined later) for a year. How do i file taxes for 2010 Contributions can be made, without penalty, to both a Coverdell ESA and a QTP in the same year for the same beneficiary. How do i file taxes for 2010 Table 7-2 summarizes many of the features of contributing to a Coverdell ESA. How do i file taxes for 2010 When contributions considered made. How do i file taxes for 2010   Contributions made to a Coverdell ESA for the preceding tax year are considered to have been made on the last day of the preceding year. How do i file taxes for 2010 They must be made by the due date (not including extensions) for filing your return for the preceding year. How do i file taxes for 2010   For example, if you make a contribution to a Coverdell ESA in February 2014, and you designate it as a contribution for 2013, you are considered to have made that contribution on December 31, 2013. How do i file taxes for 2010 Contribution Limits There are two yearly limits: One on the total amount that can be contributed for each designated beneficiary in any year, and One on the amount that any individual can contribute for any one designated beneficiary for a year. How do i file taxes for 2010 Limit for each designated beneficiary. How do i file taxes for 2010   For 2013, the total of all contributions to all Coverdell ESAs set up for the benefit of any one designated beneficiary cannot be more than $2,000. How do i file taxes for 2010 This includes contributions (other than rollovers) to all the beneficiary's Coverdell ESAs from all sources. How do i file taxes for 2010 Rollovers are discussed under Rollovers and Other Transfers , later. How do i file taxes for 2010 Example. How do i file taxes for 2010 When Maria Luna was born in 2012, three separate Coverdell ESAs were set up for her, one by her parents, one by her grandfather, and one by her aunt. How do i file taxes for 2010 In 2013, the total of all contributions to Maria's three Coverdell ESAs cannot be more than $2,000. How do i file taxes for 2010 For example, if her grandfather contributed $2,000 to one of her Coverdell ESAs, no one else could contribute to any of her three accounts. How do i file taxes for 2010 Or, if her parents contributed $1,000 and her aunt $600, her grandfather or someone else could contribute no more than $400. How do i file taxes for 2010 These contributions could be put into any of Maria's Coverdell ESA accounts. How do i file taxes for 2010 Limit for each contributor. How do i file taxes for 2010   Generally, you can contribute up to $2,000 for each designated beneficiary for 2013. How do i file taxes for 2010 This is the most you can contribute for the benefit of any one beneficiary for the year, regardless of the number of Coverdell ESAs set up for the beneficiary. How do i file taxes for 2010 Example. How do i file taxes for 2010 The facts are the same as in the previous example except that Maria Luna's older brother, Edgar, also has a Coverdell ESA. How do i file taxes for 2010 If their grandfather contributed $2,000 to Maria's Coverdell ESA in 2013, he could also contribute $2,000 to Edgar's Coverdell ESA. How do i file taxes for 2010 Reduced limit. How do i file taxes for 2010   Your contribution limit may be reduced. How do i file taxes for 2010 If your MAGI (defined on this page) is between $95,000 and $110,000 (between $190,000 and $220,000 if filing a joint return), the $2,000 limit for each designated beneficiary is gradually reduced (see Figuring the limit , later). How do i file taxes for 2010 If your MAGI is $110,000 or more ($220,000 or more if filing a joint return), you cannot contribute to anyone's Coverdell ESA. How do i file taxes for 2010 Table 7-2. How do i file taxes for 2010 Coverdell ESA Contributions at a Glance Do not rely on this table alone. How do i file taxes for 2010 It provides only general highlights. How do i file taxes for 2010 See the text for more complete explanations. How do i file taxes for 2010 Question Answer Are contributions deductible? No. How do i file taxes for 2010 What is the annual contribution limit per designated beneficiary? $2,000 for each designated beneficiary. How do i file taxes for 2010 What if more than one Coverdell ESA has been opened for the same designated beneficiary? The annual contribution limit is $2,000 for each beneficiary, no matter how many Coverdell ESAs are set up for that beneficiary. How do i file taxes for 2010 What if more than one individual makes contributions for the same designated beneficiary? The annual contribution limit is $2,000 per beneficiary, no matter how many individuals contribute. How do i file taxes for 2010 Can contributions other than cash be made to a Coverdell ESA? No. How do i file taxes for 2010 When must contributions stop? No contributions can be made to a beneficiary's Coverdell ESA after he or she reaches age 18, unless the beneficiary is a special needs beneficiary. How do i file taxes for 2010 Modified adjusted gross income (MAGI). How do i file taxes for 2010   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. How do i file taxes for 2010 MAGI when using Form 1040A. How do i file taxes for 2010   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. How do i file taxes for 2010 MAGI when using Form 1040. How do i file taxes for 2010   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 do i file taxes for 2010 MAGI when using Form 1040NR. How do i file taxes for 2010   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form. How do i file taxes for 2010 MAGI when using Form 1040NR-EZ. How do i file taxes for 2010   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form. How do i file taxes for 2010   If you have any of these adjustments, you can use Worksheet 7-1. How do i file taxes for 2010 MAGI for a Coverdell ESA , later, to figure your MAGI for Form 1040. How do i file taxes for 2010 Worksheet 7-1. How do i file taxes for 2010 MAGI for a Coverdell ESA 1. How do i file taxes for 2010 Enter your adjusted gross income  (Form 1040, line 38)   1. How do i file taxes for 2010   2. How do i file taxes for 2010 Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. How do i file taxes for 2010       3. How do i file taxes for 2010 Enter your foreign housing deduction (Form 2555, line 50)   3. How do i file taxes for 2010         4. How do i file taxes for 2010 Enter the amount of income from Puerto Rico you are excluding   4. How do i file taxes for 2010       5. How do i file taxes for 2010 Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. How do i file taxes for 2010       6. How do i file taxes for 2010 Add lines 2, 3, 4, and 5   6. How do i file taxes for 2010   7. How do i file taxes for 2010 Add lines 1 and 6. How do i file taxes for 2010 This is your  modified adjusted gross income   7. How do i file taxes for 2010   Figuring the limit. How do i file taxes for 2010    To figure the limit on the amount you can contribute for each designated beneficiary, multiply $2,000 by a fraction. How do i file taxes for 2010 The numerator (top number) is your MAGI minus $95,000 ($190,000 if filing a joint return). How do i file taxes for 2010 The denominator (bottom number) is $15,000 ($30,000 if filing a joint return). How do i file taxes for 2010 Subtract the result from $2,000. How do i file taxes for 2010 This is the amount you can contribute for each beneficiary. How do i file taxes for 2010 You can use Worksheet 7-2. How do i file taxes for 2010 Coverdell ESA Contribution Limit to figure the limit on contributions. How do i file taxes for 2010    Worksheet 7-2. How do i file taxes for 2010 Coverdell ESA Contribution Limit 1. How do i file taxes for 2010 Maximum contribution   1. How do i file taxes for 2010 $2,000 2. How do i file taxes for 2010 Enter your modified adjusted gross income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. How do i file taxes for 2010   3. How do i file taxes for 2010 Enter $190,000 if married filing jointly; $95,000 for all other filers   3. How do i file taxes for 2010   4. How do i file taxes for 2010 Subtract line 3 from line 2. How do i file taxes for 2010 If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. How do i file taxes for 2010   5. How do i file taxes for 2010 Enter $30,000 if married filing jointly; $15,000 for all other filers   5. How do i file taxes for 2010     Note. How do i file taxes for 2010 If the amount on line 4 is greater than or equal to the amount on line 5, stop here. How do i file taxes for 2010 You are not allowed to contribute to a Coverdell ESA for 2013. How do i file taxes for 2010       6. How do i file taxes for 2010 Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. How do i file taxes for 2010 . How do i file taxes for 2010 7. How do i file taxes for 2010 Multiply line 1 by line 6   7. How do i file taxes for 2010   8. How do i file taxes for 2010 Subtract line 7 from line 1   8. How do i file taxes for 2010   Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. How do i file taxes for 2010 Example. How do i file taxes for 2010 Paul, who is single, had a MAGI of $96,500 for 2013. How do i file taxes for 2010 Paul can contribute up to $1,800 in 2013 for each beneficiary, as shown in the illustrated Worksheet 7-2, Coverdell ESA Contribution Limit–Illustrated. How do i file taxes for 2010 Worksheet 7-2. How do i file taxes for 2010 Coverdell ESA Contribution Limit—Illustrated 1. How do i file taxes for 2010 Maximum contribution   1. How do i file taxes for 2010 $2,000 2. How do i file taxes for 2010 Enter your modified adjusted gross  income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. How do i file taxes for 2010 96,500 3. How do i file taxes for 2010 Enter $190,000 if married filing jointly; $95,000 for all other filers   3. How do i file taxes for 2010 95,000 4. How do i file taxes for 2010 Subtract line 3 from line 2. How do i file taxes for 2010 If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. How do i file taxes for 2010 1,500 5. How do i file taxes for 2010 Enter $30,000 if married filing jointly; $15,000 for all other filers   5. How do i file taxes for 2010 15,000   Note. How do i file taxes for 2010 If the amount on line 4 is greater than or equal to the amount on line 5,  stop here. How do i file taxes for 2010 You are not allowed to  contribute to a Coverdell ESA for 2013. How do i file taxes for 2010       6. How do i file taxes for 2010 Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. How do i file taxes for 2010 . How do i file taxes for 2010 100 7. How do i file taxes for 2010 Multiply line 1 by line 6   7. How do i file taxes for 2010 200 8. How do i file taxes for 2010 Subtract line 7 from line 1   8. How do i file taxes for 2010 1,800 Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. How do i file taxes for 2010 Additional Tax on Excess Contributions The beneficiary must pay a 6% excise tax each year on excess contributions that are in a Coverdell ESA at the end of the year. How do i file taxes for 2010 Excess contributions are the total of the following two amounts. How do i file taxes for 2010 Contributions to any designated beneficiary's Coverdell ESA for the year that are more than $2,000 (or, if less, the total of each contributor's limit for the year, as discussed earlier). How do i file taxes for 2010 Excess contributions for the preceding year, reduced by the total of the following two amounts: Distributions (other than those rolled over as discussed later) during the year, and The contribution limit for the current year minus the amount contributed for the current year. How do i file taxes for 2010 Exceptions. How do i file taxes for 2010   The excise tax does not apply if excess contributions made during 2013 (and any earnings on them) are distributed before the first day of the sixth month of the following tax year (June 1, 2014, for a calendar year taxpayer). How do i file taxes for 2010   However, you must include the distributed earnings in gross income for the year in which the excess contribution was made. How do i file taxes for 2010 You should receive Form 1099-Q, Payments From Qualified Education Programs, from each institution from which excess contributions were distributed. How do i file taxes for 2010 Box 2 of that form will show the amount of earnings on your excess contributions. How do i file taxes for 2010 Code “2” or “3” entered in the blank box below boxes 5 and 6 indicate the year in which the earnings are taxable. How do i file taxes for 2010 See Instructions for Recipient on the back of copy B of your Form 1099-Q. How do i file taxes for 2010 Enter the amount of earnings on line 21 of Form 1040 (or Form 1040NR) for the applicable tax year. How do i file taxes for 2010 For more information, see Taxable Distributions , later. How do i file taxes for 2010   The excise tax does not apply to any rollover contribution. How do i file taxes for 2010 Note. How do i file taxes for 2010 Contributions made in one year for the preceding tax year are considered to have been made on the last day of the preceding year. How do i file taxes for 2010 Example. How do i file taxes for 2010 In 2012, Greta's parents and grandparents contributed a total of $2,300 to Greta's Coverdell ESA— an excess contribution of $300. How do i file taxes for 2010 Because Greta did not withdraw the excess before June 1, 2013, she had to pay an additional tax of $18 (6% × $300) when she filed her 2012 tax return. How do i file taxes for 2010 In 2013, excess contributions of $500 were made to Greta's account, however, she withdrew $250 from that account to use for qualified education expenses. How do i file taxes for 2010 Using the steps shown earlier under Additional Tax on Excess Contributions , Greta figures the excess contribution in her account at the end of 2013 as follows. How do i file taxes for 2010 (1)   $500 excess contributions made in 2013     + (2)   $300 excess contributions in ESA at end of 2012     − (2a)   $250 distribution during 2013         $550 excess at end of 2013   × 6%=$33           If Greta limits 2014 contributions to $1,450 ($2,000 maximum allowed − $550 excess contributions from 2013), she will not owe any additional tax in 2014 for excess contributions. How do i file taxes for 2010 Figuring and reporting the additional tax. How do i file taxes for 2010   You figure this excise tax in Part V of Form 5329. How do i file taxes for 2010 Report the additional tax on Form 1040, line 58 (or Form 1040NR, line 56). How do i file taxes for 2010 Rollovers and Other Transfers Assets can be rolled over from one Coverdell ESA to another or the designated beneficiary can be changed. How do i file taxes for 2010 The beneficiary's interest can be transferred to a spouse or former spouse because of divorce. How do i file taxes for 2010 Rollovers Any amount distributed from a Coverdell ESA is not taxable if it is rolled over to another Coverdell ESA for the benefit of the same beneficiary or a member of the beneficiary's family (including the beneficiary's spouse) who is under age 30. How do i file taxes for 2010 This age limitation does not apply if the new beneficiary is a special needs beneficiary. How do i file taxes for 2010 An amount is rolled over if it is paid to another Coverdell ESA within 60 days after the date of the distribution. How do i file taxes for 2010 Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. How do i file taxes for 2010 These are not taxable distributions. How do i file taxes for 2010 Members of the beneficiary's family. How do i file taxes for 2010   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. How do i file taxes for 2010 Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. How do i file taxes for 2010 Brother, sister, stepbrother, or stepsister. How do i file taxes for 2010 Father or mother or ancestor of either. How do i file taxes for 2010 Stepfather or stepmother. How do i file taxes for 2010 Son or daughter of a brother or sister. How do i file taxes for 2010 Brother or sister of father or mother. How do i file taxes for 2010 Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. How do i file taxes for 2010 The spouse of any individual listed above. How do i file taxes for 2010 First cousin. How do i file taxes for 2010 Example. How do i file taxes for 2010 When Aaron graduated from college last year he had $5,000 left in his Coverdell ESA. How do i file taxes for 2010 He wanted to give this money to his younger sister, who was still in high school. How do i file taxes for 2010 In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his sister's Coverdell ESA within 60 days of the distribution. How do i file taxes for 2010 Only one rollover per Coverdell ESA is allowed during the 12-month period ending on the date of the payment or distribution. How do i file taxes for 2010 This rule does not apply to the rollover of a military death gratuity or payment from Servicemembers' Group Life Insurance (SGLI). How do i file taxes for 2010 Military death gratuity. How do i file taxes for 2010   If you received a military death gratuity or a payment from Servicemembers' Group Life Insurance (SGLI), you may roll over all or part of the amount received to one or more Coverdell ESAs for the benefit of members of the beneficiary's family (see Members of the beneficiary's family , earlier). How do i file taxes for 2010 Such payments are made to an eligible survivor upon the death of a member of the armed forces. How do i file taxes for 2010 The contribution to a Coverdell ESA from survivor benefits received cannot be made later than 1 year after the date on which you receive the gratuity or SGLI payment. How do i file taxes for 2010   This rollover contribution is not subject to (but is in addition to) the contribution limits discussed earlier under Contribution Limits . How do i file taxes for 2010 The amount you roll over cannot exceed the total survivor benefits you received, reduced by contributions from these benefits to a Roth IRA or other Coverdell ESAs. How do i file taxes for 2010   The amount contributed from the survivor benefits is treated as part of your basis (cost) in the Coverdell ESA, and will not be taxed when distributed. How do i file taxes for 2010 See Distributions , later. How do i file taxes for 2010 The limit of one rollover per Coverdell ESA during a 12-month period does not apply to a military death gratuity or SGLI payment. How do i file taxes for 2010 Changing the Designated Beneficiary The designated beneficiary can be changed. How do i file taxes for 2010 See Members of the beneficiary's family , earlier. How do i file taxes for 2010 There are no tax consequences if, at the time of the change, the new beneficiary is under age 30 or is a special needs beneficiary. How do i file taxes for 2010 Example. How do i file taxes for 2010 Assume the same situation for Aaron as in the last example (see Rollovers , earlier). How do i file taxes for 2010 Instead of closing his Coverdell ESA and paying the distribution into his sister's Coverdell ESA, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his sister. How do i file taxes for 2010 Transfer Because of Divorce If a spouse or former spouse receives a Coverdell ESA under a divorce or separation instrument, it is not a taxable transfer. How do i file taxes for 2010 After the transfer, the spouse or former spouse treats the Coverdell ESA as his or her own. How do i file taxes for 2010 Example. How do i file taxes for 2010 In their divorce settlement, Peg received her ex-husband's Coverdell ESA. How do i file taxes for 2010 In this process, the account was transferred into her name. How do i file taxes for 2010 Peg now treats the funds in this Coverdell ESA as if she were the original owner. How do i file taxes for 2010 Distributions The designated beneficiary of a Coverdell ESA can take a distribution at any time. How do i file taxes for 2010 Whether the distributions are tax free depends, in part, on whether the distributions are equal to or less than the amount of Adjusted qualified education expenses (defined later) that the beneficiary has in the same tax year. How do i file taxes for 2010 See Table 7-3, Coverdell ESA Distributions at a Glance, for highlights. How do i file taxes for 2010 Table 7-3. How do i file taxes for 2010 Coverdell ESA Distributions at a Glance Do not rely on this table alone. How do i file taxes for 2010 It provides only general highlights. How do i file taxes for 2010 See the text for definitions of terms in bold type and for more complete explanations. How do i file taxes for 2010 Question Answer Is a distribution from a Coverdell ESA to pay for a designated beneficiary's qualified education expenses tax free? Generally, yes, to the extent the amount of the distribution is not more than the designated beneficiary's adjusted qualified education expenses. How do i file taxes for 2010 After the designated beneficiary completes his or her education at an eligible educational institution, can amounts remaining in the Coverdell ESA be distributed? Yes. How do i file taxes for 2010 Amounts must be distributed when the designated beneficiary reaches age 30, unless he or she is a special needs beneficiary. How do i file taxes for 2010 Also, certain transfers to members of the beneficiary's family are permitted. How do i file taxes for 2010 Does the designated beneficiary need to be enrolled for a minimum number of courses to take a tax-free distribution? No. How do i file taxes for 2010 Adjusted qualified education expenses. How do i file taxes for 2010   To determine if total distributions for the year are more than the amount of qualified education expenses, reduce total qualified education expenses by any tax-free educational assistance. How do i file taxes for 2010 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), Veterans' educational assistance (see Veterans' Benefits 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 ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. How do i file taxes for 2010 The amount you get by subtracting tax-free educational assistance from your total qualified education expenses is your adjusted qualified education expenses. How do i file taxes for 2010 Tax-Free Distributions Generally, distributions are tax free if they are not more than the beneficiary's adjusted qualified education expenses for the year. How do i file taxes for 2010 Do not report tax-free distributions (including qualifying rollovers) on your tax return. How do i file taxes for 2010 Taxable Distributions A portion of the distributions is generally taxable to the beneficiary if the total distributions are more than the beneficiary's adjusted qualified education expenses for the year. How do i file taxes for 2010 Excess distribution. How do i file taxes for 2010   This is the part of the total distribution that is more than the beneficiary's adjusted qualified education expenses for the year. How do i file taxes for 2010 Earnings and basis. How do i file taxes for 2010   You will receive a Form 1099-Q for each of the Coverdell ESAs from which money was distributed in 2013. How do i file taxes for 2010 The amount of your gross distribution will be shown in box 1. How do i file taxes for 2010 For 2013, instead of dividing the gross distribution between your earnings (box 2) and your basis (already-taxed amount) (box 3), the payer or trustee may report the fair market value (account balance) of the Coverdell ESA as of December 31, 2013. How do i file taxes for 2010 This will be shown in the blank box below boxes 5 and 6. How do i file taxes for 2010   The amount contributed from survivor benefits (see Military death gratuity , earlier) is treated as part of your basis and will not be taxed when distributed. How do i file taxes for 2010 Figuring the Taxable Portion of a Distribution The taxable portion is the amount of the excess distribution that represents earnings that have accumulated tax free in the account. How do i file taxes for 2010 Figure the taxable portion for 2013 as shown in the following steps. How do i file taxes for 2010 Multiply the total amount distributed by a fraction. How do i file taxes for 2010 The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the value (balance) of the account at the end of 2013 plus the amount distributed during 2013. How do i file taxes for 2010 Subtract the amount figured in (1) from the total amount distributed during 2013. How do i file taxes for 2010 The result is the amount of earnings included in the distribution(s). How do i file taxes for 2010 Multiply the amount of earnings figured in (2) by a fraction. How do i file taxes for 2010 The numerator is the adjusted qualified education expenses paid during 2013 and the denominator is the total amount distributed during 2013. How do i file taxes for 2010 Subtract the amount figured in (3) from the amount figured in (2). How do i file taxes for 2010 The result is the amount the beneficiary must include in income. How do i file taxes for 2010 The taxable amount must be reported on Form 1040 or Form 1040NR, line 21. How do i file taxes for 2010 Example. How do i file taxes for 2010 You received an $850 distribution from your Coverdell ESA, to which $1,500 had been contributed before 2013. How do i file taxes for 2010 There were no contributions in 2013. How do i file taxes for 2010 This is your first distribution from the account, so your basis in the account on December 31, 2012, was $1,500. How do i file taxes for 2010 The value (balance) of your account on December 31, 2013, was $950. How do i file taxes for 2010 You had $700 of adjusted qualified education expenses (AQEE) for the year. How do i file taxes for 2010 Using the steps in Figuring the Taxable Portion of a Distribution , earlier, figure the taxable portion of your distribution as follows. How do i file taxes for 2010   1. How do i file taxes for 2010 $850 (distribution) × $1,500 basis + $0 contributions  $950 value + $850 distribution       =$708 (basis portion of distribution)     2. How do i file taxes for 2010 $850 (distribution)−$708 (basis portion of distribution)     =$142 (earnings included in distribution)   3. How do i file taxes for 2010 $142 (earnings) × $700 AQEE  $850 distribution           =$117 (tax-free earnings)     4. How do i file taxes for 2010 $142 (earnings)−$117 (tax-free earnings)=$25 (taxable earnings)                 You must include $25 in income as distributed earnings not used for qualified education expenses. How do i file taxes for 2010 Report this amount on Form 1040, line 21, listing the type and amount of income on the dotted line. How do i file taxes for 2010 Worksheet 7-3, Coverdell ESA–Taxable Distributions and Basis , at the end of this chapter, can help you figure your adjusted qualified education expenses, how much of your distribution must be included in income, and the remaining basis in your Coverdell ESA(s). How do i file taxes for 2010 Coordination With American Opportunity and Lifetime Learning Credits The American opportunity or lifetime learning credit can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA, as long as the same expenses are not used for both benefits. How do i file taxes for 2010 This means the beneficiary must reduce qualified higher education expenses by tax-free educational assistance, and then further reduce them by any expenses taken into account in determining an American opportunity or lifetime learning credit. How do i file taxes for 2010 Example. How do i file taxes for 2010 Derek Green had $5,800 of qualified higher education expenses for 2013, his first year in college. How do i file taxes for 2010 He paid his college expenses from the following sources. How do i file taxes for 2010     Partial tuition scholarship (tax free) $1,500     Coverdell ESA distribution 1,000     Gift from parents 2,100     Earnings from part-time job 1,200           Of his $5,800 of qualified higher education expenses, $4,000 was tuition and related expenses that also qualified for an American opportunity credit. How do i file taxes for 2010 Derek's parents claimed a $2,500 American opportunity credit (based on $4,000 expenses) on their tax return. How do i file taxes for 2010 Before Derek can determine the taxable portion of his Coverdell ESA distribution, he must reduce his total qualified higher education expenses. How do i file taxes for 2010     Total qualified higher education expenses $5,800     Minus: Tax-free educational assistance −1,500     Minus: Expenses taken into account in  figuring American opportunity credit − 4,000     Equals: Adjusted qualified higher education  expenses (AQHEE) $ 300           Since the adjusted qualified higher education expenses ($300) are less than the Coverdell ESA distribution ($1,000), part of the distribution will be taxable. How do i file taxes for 2010 The balance in Derek's account was $1,800 on December 31, 2013. How do i file taxes for 2010 Prior to 2013, $2,100 had been contributed to this account. How do i file taxes for 2010 Contributions for 2013 totaled $400. How do i file taxes for 2010 Using the four steps outlined earlier, Derek figures the taxable portion of his distribution as shown below. How do i file taxes for 2010   1. How do i file taxes for 2010 $1,000 (distribution) × $2,100 basis + $400 contributions  $1,800 value + $1,000 distribution           =$893 (basis portion of distribution)     2. How do i file taxes for 2010 $1,000 (distribution)−$893 (basis portion of distribution)     = $107 (earnings included in distribution)   3. How do i file taxes for 2010 $107 (earnings) × $300 AQHEE  $1,000 distribution       =$32 (tax-free earnings)     4. How do i file taxes for 2010 $107 (earnings)−$32 (tax-free earnings)=$75 (taxable earnings)                 Derek must include $75 in income (Form 1040, line 21). How do i file taxes for 2010 This is the amount of distributed earnings not used for adjusted qualified higher education expenses. How do i file taxes for 2010 Coordination With Qualified Tuition Program (QTP) Distributions If a designated beneficiary receives distributions from both a Coverdell ESA and a QTP in the same year, and the total distribution is more than the beneficiary's adjusted qualified higher education expenses, those expenses must be allocated between the distribution from the Coverdell ESA and the distribution from the QTP before figuring how much of each distribution is taxable. How do i file taxes for 2010 The following two examples illustrate possible allocations. How do i file taxes for 2010 Example 1. How do i file taxes for 2010 In 2013, Beatrice graduated from high school and began her first semester of college. How do i file taxes for 2010 That year, she had $1,000 of qualified elementary and secondary education expenses (QESEE) for high school and $3,000 of qualified higher education expenses (QHEE) for college. How do i file taxes for 2010 To pay these expenses, Beatrice withdrew $800 from her Coverdell ESA and $4,200 from her QTP. How do i file taxes for 2010 No one claimed Beatrice as a dependent, nor was she eligible for an education credit. How do i file taxes for 2010 She did not receive any tax-free educational assistance in 2013. How do i file taxes for 2010 Beatrice must allocate her total qualified education expenses between the two distributions. How do i file taxes for 2010 Beatrice knows that tax-free treatment will be available if she applies her $800 Coverdell ESA distribution toward her $1,000 of qualified education expenses for high school. How do i file taxes for 2010 The qualified expenses are greater than the distribution, making the $800 Coverdell ESA distribution tax free. How do i file taxes for 2010 Next, Beatrice matches her $4,200 QTP distribution to her $3,000 of QHEE, and finds she has an excess QTP distribution of $1,200 ($4,200 QTP − $3,000 QHEE). How do i file taxes for 2010 She cannot use the extra $200 of high school expenses (from (1) above) against the QTP distribution because those expenses do not qualify a QTP for tax-free treatment. How do i file taxes for 2010 Finally, Beatrice figures the taxable and tax-free portions of her QTP distribution based on her $3,000 of QHEE. How do i file taxes for 2010 (See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program for more information. How do i file taxes for 2010 ) Example 2. How do i file taxes for 2010 Assume the same facts as in Example 1 , except that Beatrice withdrew $1,800 from her Coverdell ESA and $3,200 from her QTP. How do i file taxes for 2010 In this case, she allocates her qualified education expenses as follows. How do i file taxes for 2010 Using the same reasoning as in Example 1, Beatrice matches $1,000 of her Coverdell ESA distribution to her $1,000 of QESEE—she has $800 of her distribution remaining. How do i file taxes for 2010 Because higher education expenses can also qualify a Coverdell ESA distribution for tax-free treatment, Beatrice allocates her $3,000 of QHEE between the remaining $800 Coverdell ESA and the $3,200 QTP distributions ($4,000 total). How do i file taxes for 2010   $3,000 QHEE × $800 ESA distribution  $4,000 total distribution = $600 QHEE (ESA)     $3,000 QHEE × $3,200 QTP distribution  $4,000 total distribution = $2,400 QHEE (QTP)   Beatrice then figures the taxable part of her: Coverdell ESA distribution based on qualified education expenses of $1,600 ($1,000 QESEE + $600 QHEE). How do i file taxes for 2010 See Figuring the Taxable Portion of a Distribution , earlier, in this chapter. How do i file taxes for 2010   QTP distribution based on her $2,400 of QHEE (see Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program). How do i file taxes for 2010 The above examples show two types of allocation between distributions from a Coverdell ESA and a QTP. How do i file taxes for 2010 However, you do not have to allocate your expenses in the same way. How do i file taxes for 2010 You can use any reasonable method. How do i file taxes for 2010 Losses on Coverdell ESA Investments If you have a loss on your investment in a Coverdell ESA, you may be able to deduct the loss on your income tax return. How do i file taxes for 2010 You can deduct the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. How do i file taxes for 2010 Your basis is the total amount of contributions to that Coverdell ESA. How do i file taxes for 2010 You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23 (Schedule A (Form 1040NR), line 9), subject to the 2%-of-adjusted-gross-income limit. How do i file taxes for 2010 If you have distributions from more than one Coverdell ESA account during a year, you must combine the information (amount of distribution, basis, etc. How do i file taxes for 2010 ) from all such accounts in order to determine your taxable earnings for the year. How do i file taxes for 2010 By doing this, the loss from one ESA account reduces the distributed earnings (if any) from any other ESA account. How do i file taxes for 2010 For examples of the calculation, see Losses on QTP Investments in chapter 8, Qualified Tuition Program. How do i file taxes for 2010 Additional Tax on Taxable Distributions Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income. How do i file taxes for 2010 Exceptions. How do i file taxes for 2010   The 10% additional tax does not apply to distributions: Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary. How do i file taxes for 2010 Made because the designated beneficiary is disabled. How do i file taxes for 2010 A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. How do i file taxes for 2010 A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration. How do i file taxes for 2010 Included in income because the designated beneficiary received: A tax-free scholarship or fellowship (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), or Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. How do i file taxes for 2010 Made on account of the attendance of the designated beneficiary at a U. How do i file taxes for 2010 S. How do i file taxes for 2010 military academy (such as the USMA at West Point). How do i file taxes for 2010 This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(d)(3) of title 10 of the U. How do i file taxes for 2010 S. How do i file taxes for 2010 Code) attributable to such attendance. How do i file taxes for 2010 Included in income only because the qualified education expenses were taken into account in determining the American opportunity or lifetime learning credit (see Coordination With American Opportunity and Lifetime Learning Credits , earlier). How do i file taxes for 2010 Made before June 1, 2014, of an excess 2013 contribution (and any earnings on it). How do i file taxes for 2010 The distributed earnings must be included in gross income for the year in which the excess contribution was made. How do i file taxes for 2010 Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. How do i file taxes for 2010 Figuring the additional tax. How do i file taxes for 2010    Use Part II of Form 5329, to figure any additional tax. How do i file taxes for 2010 Report the amount on Form 1040, line 58, or Form 1040NR, line 56. How do i file taxes for 2010 When Assets Must Be Distributed Any assets remaining in a Coverdell ESA must be distributed when either one of the following two events occurs. How do i file taxes for 2010 The designated beneficiary reaches age 30. How do i file taxes for 2010 In this case, the remaining assets must be distributed within 30 days after the beneficiary reaches age 30. How do i file taxes for 2010 However, this rule does not apply if the beneficiary is a special needs beneficiary. How do i file taxes for 2010 The designated beneficiary dies before reaching age 30. How do i file taxes for 2010 In this case, the remaining assets must generally be distributed within 30 days after the date of death. How do i file taxes for 2010 Exception for Transfer to Surviving Spouse or Family Member If a Coverdell ESA is transferred to a surviving spouse or other family member as the result of the death of the designated beneficiary, the Coverdell ESA retains its status. How do i file taxes for 2010 (“Family member” was defined earlier under Rollovers . How do i file taxes for 2010 ) This means the spouse or other family member can treat the Coverdell ESA as his or her own and does not need to withdraw the assets until he or she reaches age 30. How do i file taxes for 2010 This age limitation does not apply if the new beneficiary is a special needs beneficiary. How do i file taxes for 2010 There are no tax consequences as a result of the transfer. How do i file taxes for 2010 How To Figure the Taxable Earnings When a total distribution is made because the designated beneficiary either reached age 30 or died, the earnings that accumulated tax free in the account must be included in taxable income. How do i file taxes for 2010 You determine these earnings as shown in the following two steps. How do i file taxes for 2010 Multiply the amount distributed by a fraction. How do i file taxes for 2010 The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the balance in the account at the end of 2013 plus the amount distributed during 2013. How do i file taxes for 2010 Subtract the amount figured in (1) from the total amount distributed during 2013. How do i file taxes for 2010 The result is the amount of earnings included in the distribution. How do i file taxes for 2010 For an example, see steps (1) and (2) of the Example under Figuring the Taxable Portion of a Distribution, earlier. How do i file taxes for 2010 The beneficiary or other person receiving the distribution must report this amount on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line. How do i file taxes for 2010 Worksheet 7-3 Instructions. How do i file taxes for 2010 Coverdell ESA—Taxable Distributions and Basis Line G. How do i file taxes for 2010 Enter the total distributions received from all Coverdell ESAs during 2013. How do i file taxes for 2010 Do not include amounts rolled over to another ESA within 60 days (only one rollover is allowed during any 12-month period). How do i file taxes for 2010 Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year for which the contributions were made. How do i file taxes for 2010 Line 2. How do i file taxes for 2010 Your basis (amount already taxed) in this Coverdell ESA as of December 31, 2012, is the total of:   •All contributions to this Coverdell ESA before 2013 •Minus the tax-free portion of any distributions from this Coverdell ESA before 2013. How do i file taxes for 2010   If your last distribution from this Coverdell ESA was before 2013, you must start with the basis in your account as of the end of the last year in which you took a distribution. How do i file taxes for 2010 For years before 2002, you can find that amount on the last line of the worksheet in the Instructions for Form 8606, Nondeductible IRAs, that you completed for that year. How do i file taxes for 2010 For years after 2001, you can find that amount by using the ending basis from the worksheet in Publication 970 for that year. How do i file taxes for 2010 You can determine your basis in this Coverdell ESA as of December 31, 2012, by adding to the basis as of the end of that year any contributions made to that account after the year of the distribution and before 2013. How do i file taxes for 2010 Line 4. How do i file taxes for 2010 Enter the total distributions received from this Coverdell ESA in 2013. How do i file taxes for 2010 Do not include amounts rolled over to another Coverdell ESA within 60 days (only one rollover is allowed during any 12-month period). How do i file taxes for 2010   Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year of the contributions. How do i file taxes for 2010 Line 7. How do i file taxes for 2010 Enter the total value of this Coverdell ESA as of December 31, 2013, plus any outstanding rollovers contributed to the account after 2012, but before the end of the 60-day rollover period. How do i file taxes for 2010 A statement should be sent to you by January 31, 2014, for this Coverdell ESA showing the value on December 31, 2013. How do i file taxes for 2010   A rollover is a tax-free withdrawal from one Coverdell ESA that is contributed to another Coverdell ESA. How do i file taxes for 2010 An outstanding rollover is any amount withdrawn within 60 days before the end of 2013 (November 2 through December 31) that was rolled over after December 31, 2013, but within the 60-day rollover period. How do i file taxes for 2010 Worksheet 7-3. How do i file taxes for 2010 Coverdell ESA—Taxable Distributions and Basis How to complete this worksheet. How do i file taxes for 2010 • • • Complete Part I, lines A through H, on only one worksheet. How do i file taxes for 2010  Complete a separate Part II, lines 1 through 15, for each of your Coverdell ESAs. How do i file taxes for 2010  Complete Part III, the Summary (line 16), on only one worksheet. How do i file taxes for 2010 Part I. How do i file taxes for 2010 Qualified Education Expenses (Complete for total expenses)       A. How do i file taxes for 2010 Enter your total qualified education expenses for 2013   A. How do i file taxes for 2010   B. How do i file taxes for 2010 Enter those qualified education expenses paid for with tax-free educational assistance (for example, tax-free scholarships, veterans' educational benefits, Pell grants, employer-provided educational assistance)   B. How do i file taxes for 2010         C. How do i file taxes for 2010 Enter those qualified higher education expenses deducted on Schedule C or C-EZ (Form 1040). How do i file taxes for 2010 Schedule F (Form 1040), or as a miscellaneous itemized deduction on Schedule A (Form 1040 or 1040NR)   C. How do i file taxes for 2010         D. How do i file taxes for 2010 Enter those qualified higher education expenses on which  an American opportunity or lifetime learning credit was based   D. How do i file taxes for 2010         E. How do i file taxes for 2010 Add lines B, C, and D   D. How do i file taxes for 2010   F. How do i file taxes for 2010 Subtract line E from line A. How do i file taxes for 2010 This is your adjusted qualified education expense for 2013   E. How do i file taxes for 2010   G. How do i file taxes for 2010 Enter your total distributions from all Coverdell ESAs during 2013. How do i file taxes for 2010 Do not include rollovers  or the return of excess contributions (see instructions)   F. How do i file taxes for 2010   H. How do i file taxes for 2010 Divide line F by line G. How do i file taxes for 2010 Enter the result as a decimal (rounded to at least 3 places). How do i file taxes for 2010 If the  result is 1. How do i file taxes for 2010 000 or more, enter 1. How do i file taxes for 2010 000   G. How do i file taxes for 2010 . How do i file taxes for 2010 Part II. How do i file taxes for 2010 Taxable Distributions and Basis (Complete separately for each account) 1. How do i file taxes for 2010 Enter the amount contributed to this Coverdell ESA for 2013, including contributions made for 2013 from January 1, 2014, through April 15, 2014. How do i file taxes for 2010 Do not include rollovers or the return of excess contributions   1. How do i file taxes for 2010   2. How do i file taxes for 2010 Enter your basis in this Coverdell ESA as of December 31, 2012 (see instructions)   2. How do i file taxes for 2010   3. How do i file taxes for 2010 Add lines 1 and 2   3. How do i file taxes for 2010   4. How do i file taxes for 2010 Enter the total distributions from this Coverdell ESA during 2013. How do i file taxes for 2010 Do not include rollovers  or the return of excess contributions (see instructions)   4. How do i file taxes for 2010   5. How do i file taxes for 2010 Multiply line 4 by line H. How do i file taxes for 2010 This is the amount of adjusted qualified  education expense attributable to this Coverdell ESA   5. How do i file taxes for 2010         6. How do i file taxes for 2010 Subtract line 5 from line 4   6. How do i file taxes for 2010         7. How do i file taxes for 2010 Enter the total value of this Coverdell ESA as of December 31, 2013,  plus any outstanding rollovers (see instructions)   7. How do i file taxes for 2010         8. How do i file taxes for 2010 Add lines 4 and 7   8. How do i file taxes for 2010         9. How do i file taxes for 2010 Divide line 3 by line 8. How do i file taxes for 2010 Enter the result as a decimal (rounded to  at least 3 places). How do i file taxes for 2010 If the result is 1. How do i file taxes for 2010 000 or more, enter 1. How do i file taxes for 2010 000   9. How do i file taxes for 2010 . How do i file taxes for 2010       10. How do i file taxes for 2010 Multiply line 4 by line 9. How do i file taxes for 2010 This is the amount of basis allocated to your  distributions, and is tax free   10. How do i file taxes for 2010     Note. How do i file taxes for 2010 If line 6 is zero, skip lines 11 through 13, enter -0- on line 14, and go to line 15. How do i file taxes for 2010       11. How do i file taxes for 2010 Subtract line 10 from line 4   11. How do i file taxes for 2010   12. How do i file taxes for 2010 Divide line 5 by line 4. How do i file taxes for 2010 Enter the result as a decimal (rounded to  at least 3 places). How do i file taxes for 2010 If the result is 1. How do i file taxes for 2010 000 or more, enter 1. How do i file taxes for 2010 000   12. How do i file taxes for 2010 . How do i file taxes for 2010       13. How do i file taxes for 2010 Multiply line 11 by line 12. How do i file taxes for 2010 This is the amount of qualified education  expenses allocated to your distributions, and is tax free   13. How do i file taxes for 2010   14. How do i file taxes for 2010 Subtract line 13 from line 11. How do i file taxes for 2010 This is the portion of the distributions from this  Coverdell ESA in 2013 that you must include in income   14. How do i file taxes for 2010   15. How do i file taxes for 2010 Subtract line 10 from line 3. How do i file taxes for 2010 This is your basis in this Coverdell ESA as of December 31, 2013   15. How do i file taxes for 2010   Part III. How do i file taxes for 2010 Summary (Complete only once)       16. How do i file taxes for 2010 Taxable amount. How do i file taxes for 2010 Add together all amounts on line 14 for all your Coverdell ESAs. How do i file taxes for 2010 Enter here  and include on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line   16. How do i file taxes for 2010   Prev  Up  Next   Home   More Online Publications