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Irs State Tax Forms 2012

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Irs State Tax Forms 2012

Irs state tax forms 2012 Publication 524 - Main Content Table of Contents Are You Eligible for the Credit?Qualified Individual Income Limits Credit Figured for You Figuring the Credit YourselfStep 1. Irs state tax forms 2012 Determine Initial Amount Step 2. Irs state tax forms 2012 Total Certain Nontaxable Pensions and Benefits Step 3. Irs state tax forms 2012 Determine Excess Adjusted Gross Income Step 4. Irs state tax forms 2012 Determine the Total of Steps 2 and 3 Step 5. Irs state tax forms 2012 Determine Your Credit Examples How To Get Tax Help Are You Eligible for the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Irs state tax forms 2012 You are a qualified individual. Irs state tax forms 2012 Your income is not more than certain limits. Irs state tax forms 2012 You can use Figure A and Table 1 as guides to see if you are eligible for the credit. Irs state tax forms 2012 Use Figure A first to see if you are a qualified individual. Irs state tax forms 2012 If you are, go to Table 1 to make sure your income is not too high to take the credit. Irs state tax forms 2012 You can take the credit only if you file Form 1040 or Form 1040A. Irs state tax forms 2012 You cannot take the credit if you file Form 1040EZ or Form 1040NR. Irs state tax forms 2012 Qualified Individual You are a qualified individual for this credit if you are a U. Irs state tax forms 2012 S. Irs state tax forms 2012 citizen or resident alien, and either of the following applies. Irs state tax forms 2012 You were age 65 or older at the end of 2013. Irs state tax forms 2012 You were under age 65 at the end of 2013 and all three of the following statements are true. Irs state tax forms 2012 You retired on permanent and total disability (explained later). Irs state tax forms 2012 You received taxable disability income for 2013. Irs state tax forms 2012 On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Irs state tax forms 2012 Age 65. Irs state tax forms 2012   You are considered to be age 65 on the day before your 65th birthday. Irs state tax forms 2012 As a result, if you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Irs state tax forms 2012 U. Irs state tax forms 2012 S. Irs state tax forms 2012 Citizen or Resident Alien You must be a U. Irs state tax forms 2012 S. Irs state tax forms 2012 citizen or resident alien (or be treated as a resident alien) to take the credit. Irs state tax forms 2012 Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Irs state tax forms 2012 Exceptions. Irs state tax forms 2012   You may be able to take the credit if you are a nonresident alien who is married to a U. Irs state tax forms 2012 S. Irs state tax forms 2012 citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Irs state tax forms 2012 S. Irs state tax forms 2012 resident alien. Irs state tax forms 2012 If you make that choice, both you and your spouse are taxed on your worldwide incomes. Irs state tax forms 2012   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Irs state tax forms 2012 S. Irs state tax forms 2012 citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Irs state tax forms 2012 S. Irs state tax forms 2012 resident alien for the entire year. Irs state tax forms 2012 In that case, you may be allowed to take the credit. Irs state tax forms 2012   For information on these choices, see chapter 1 of Publication 519, U. Irs state tax forms 2012 S. Irs state tax forms 2012 Tax Guide for Aliens. Irs state tax forms 2012 Married Persons Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Irs state tax forms 2012 However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Irs state tax forms 2012 Head of household. Irs state tax forms 2012   You can file as head of household and qualify to take the credit, even if your spouse lived with you during the first 6 months of the year, if you meet all the following tests. Irs state tax forms 2012 You file a separate return. Irs state tax forms 2012 You paid more than half the cost of keeping up your home during the tax year. Irs state tax forms 2012 Your spouse did not live in your home at any time during the last 6 months of the tax year and the absence was not temporary. Irs state tax forms 2012 (See Temporary absences under Head of Household in Publication 501. Irs state tax forms 2012 ) Your home was the main home of your child, stepchild, or an eligible foster child for more than half the year. Irs state tax forms 2012 An eligible foster child is a child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Irs state tax forms 2012 You can claim an exemption for that child, or you cannot claim the exemption only because the noncustodial parent can claim the child using the rules for children of divorced or separated parents. Irs state tax forms 2012 For more information, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Irs state tax forms 2012 Figure A. Irs state tax forms 2012 Are You a Qualified Individual? Please click here for the text description of the image. Irs state tax forms 2012 figure a Under Age 65 If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability (discussed next) and have taxable disability income (discussed later under Disability income ). Irs state tax forms 2012 You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the close of the tax year. Irs state tax forms 2012 Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Irs state tax forms 2012 If you retired on disability before 1977, and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Irs state tax forms 2012 You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. Irs state tax forms 2012 Permanent and total disability. Irs state tax forms 2012    You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Irs state tax forms 2012 A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Irs state tax forms 2012 See Physician's statement , later. Irs state tax forms 2012 Substantial gainful activity. Irs state tax forms 2012   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Irs state tax forms 2012 Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Irs state tax forms 2012   Substantial gainful activity is not work you do to take care of yourself or your home. Irs state tax forms 2012 It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Irs state tax forms 2012 However, doing this kind of work may show that you are able to engage in substantial gainful activity. Irs state tax forms 2012    The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Irs state tax forms 2012   The following examples illustrate the tests of substantial gainful activity. Irs state tax forms 2012 Example 1. Irs state tax forms 2012 Trisha, a sales clerk, retired on disability. Irs state tax forms 2012 She is 53 years old and now works as a full-time babysitter for the minimum wage. Irs state tax forms 2012 Even though Trisha is doing different work, she is able to do the duties of her new job in a full-time competitive work situation for the minimum wage. Irs state tax forms 2012 She cannot take the credit because she is able to engage in substantial gainful activity. Irs state tax forms 2012 Example 2. Irs state tax forms 2012 Tom, a bookkeeper, retired on disability. Irs state tax forms 2012 He is 59 years old and now drives a truck for a charitable organization. Irs state tax forms 2012 He sets his own hours and is not paid. Irs state tax forms 2012 Duties of this nature generally are performed for pay or profit. Irs state tax forms 2012 Some weeks he works 10 hours, and some weeks he works 40 hours. Irs state tax forms 2012 Over the year he averages 20 hours a week. Irs state tax forms 2012 The kind of work and his average hours a week conclusively show that Tom is able to engage in substantial gainful activity. Irs state tax forms 2012 This is true even though Tom is not paid and he sets his own hours. Irs state tax forms 2012 He cannot take the credit. Irs state tax forms 2012 Example 3. Irs state tax forms 2012 John, who retired on disability, took a job with a former employer on a trial basis. Irs state tax forms 2012 The purpose of the job was to see if John could do the work. Irs state tax forms 2012 The trial period lasted for 6 months during which John was paid the minimum wage. Irs state tax forms 2012 Because of John's disability, he was assigned only light duties of a nonproductive “make-work” nature. Irs state tax forms 2012 The activity was gainful because John was paid at least the minimum wage. Irs state tax forms 2012 But the activity was not substantial because his duties were nonproductive. Irs state tax forms 2012 These facts do not, by themselves, show that John is able to engage in substantial gainful activity. Irs state tax forms 2012 Example 4. Irs state tax forms 2012 Joan, who retired on disability from a job as a bookkeeper, lives with her sister who manages several motel units. Irs state tax forms 2012 Joan helps her sister for 1 or 2 hours a day by performing duties such as washing dishes, answering phones, registering guests, and bookkeeping. Irs state tax forms 2012 Joan can select the time of day when she feels most fit to work. Irs state tax forms 2012 Work of this nature, performed off and on during the day at Joan's convenience, is not activity of a “substantial and gainful” nature even if she is paid for the work. Irs state tax forms 2012 The performance of these duties does not, of itself, show that Joan is able to engage in substantial gainful activity. Irs state tax forms 2012 Sheltered employment. Irs state tax forms 2012   Certain work offered at qualified locations to physically or mentally impaired persons is considered sheltered employment. Irs state tax forms 2012 These qualified locations are in sheltered workshops, hospitals and similar institutions, homebound programs, and Department of Veterans Affairs (VA) sponsored homes. Irs state tax forms 2012   Compared to commercial employment, pay is lower for sheltered employment. Irs state tax forms 2012 Therefore, one usually does not look for sheltered employment if he or she can get other employment. Irs state tax forms 2012 The fact that one has accepted sheltered employment is not proof of the person's ability to engage in substantial gainful activity. Irs state tax forms 2012 Physician's statement. Irs state tax forms 2012   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Irs state tax forms 2012 You can use the statement in the Instructions for Schedule R. Irs state tax forms 2012   You do not have to file this statement with your Form 1040 or Form 1040A, but you must keep it for your records. Irs state tax forms 2012 Veterans. Irs state tax forms 2012    If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Irs state tax forms 2012 VA Form 21-0172 must be signed by a person authorized by the VA to do so. Irs state tax forms 2012 You can get this form from your local VA regional office. Irs state tax forms 2012 Physician's statement obtained in earlier year. Irs state tax forms 2012   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Irs state tax forms 2012 For a detailed explanation of the conditions you must meet, see the instructions for Schedule R, Part II. Irs state tax forms 2012 If you meet the required conditions, check the box on your Schedule R, Part II, line 2. Irs state tax forms 2012   If you checked box 4, 5, or 6 in Part I of Schedule R, enter in the space above the box on line 2 in Part II the first name(s) of the spouse(s) for whom the box is checked. Irs state tax forms 2012 Disability income. Irs state tax forms 2012   If you are under age 65, you must also have taxable disability income to qualify for the credit. Irs state tax forms 2012 Disability income must meet both of the following requirements. Irs state tax forms 2012 It must be paid under your employer's accident or health plan or pension plan. Irs state tax forms 2012 It must be included in your income as wages (or payments instead of wages) for the time you are absent from work because of permanent and total disability. Irs state tax forms 2012 Payments that are not disability income. Irs state tax forms 2012    Any payment you receive from a plan that does not provide for disability retirement is not disability income. Irs state tax forms 2012 Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Irs state tax forms 2012    For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Irs state tax forms 2012 Mandatory retirement age is the age set by your employer at which you would have had to retire, had you not become disabled. Irs state tax forms 2012 Income Limits To determine if you can claim the credit, you must consider two income limits. Irs state tax forms 2012 The first limit is the amount of your adjusted gross income (AGI). Irs state tax forms 2012 The second limit is the amount of nontaxable social security and other nontaxable pensions, annuities, or disability income you received. Irs state tax forms 2012 The limits are shown in Table 1. Irs state tax forms 2012 If your AGI and your nontaxable pensions, annuities, or disability income are less than the income limits, you may be able to claim the credit. Irs state tax forms 2012 See Figuring the Credit Yourself , later. Irs state tax forms 2012 Table 1. Irs state tax forms 2012 Income Limits IF your filing status is THEN, even if you qualify (see Figure A), you CANNOT take the credit if   Your adjusted gross income (AGI)* is equal to or more than. Irs state tax forms 2012 . Irs state tax forms 2012 . Irs state tax forms 2012     OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Irs state tax forms 2012 . Irs state tax forms 2012 . Irs state tax forms 2012   single, head of household, or qualifying widow(er) with dependent child   $17,500     $5,000   married filing jointly and only one spouse qualifies in Figure A   $20,000     $5,000   married filing jointly and both spouses qualify in Figure A   $25,000     $7,500   married filing separately and you lived apart from your spouse for all of 2013   $12,500     $3,750   * AGI is the amount on Form 1040A, line 22, or Form 1040, line 38. Irs state tax forms 2012 If your AGI or your nontaxable pensions, annuities, or disability income are equal to or more than the income limits, you cannot take the credit. Irs state tax forms 2012 Credit Figured for You You can figure the credit yourself, or the Internal Revenue Service (IRS) will figure it for you. Irs state tax forms 2012 See Figuring the Credit Yourself , next. Irs state tax forms 2012 If you can take the credit and you want the IRS to figure the credit for you, attach Schedule R to your return. Irs state tax forms 2012 Check the appropriate box in Part I of Schedule R and fill in Part II and lines 11, 13a, and 13b of Part III, if they apply to you. Irs state tax forms 2012 If you file Form 1040A, enter “CFE” in the space to the left of Form 1040A, line 30. Irs state tax forms 2012 If you file Form 1040, check box c on Form 1040, line 53, and enter “CFE” on the line next to that box. Irs state tax forms 2012 Attach Schedule R to your return. Irs state tax forms 2012 Table 2. Irs state tax forms 2012 Initial Amounts IF your filing status is. Irs state tax forms 2012 . Irs state tax forms 2012 . Irs state tax forms 2012   THEN enter on line 10 of Schedule R. Irs state tax forms 2012 . Irs state tax forms 2012 . Irs state tax forms 2012 single,head of household, or qualifying widow(er) with dependent child and, by the end of 2013, you were       • 65 or older $5,000   • under 65 and retired on permanent and total disability1 $5,000 married filing a joint return and by the end of 2013       • both of you were 65 or older $7,500   • both of you were under 65 and one of you retired on permanent and total disability1 $5,000   • both of you were under 65 and both of you retired on permanent and total disability2 $7,500   • one of you was 65 or older, and the other was under 65 and retired on permanent  and total disability3 $7,500   • one of you was 65 or older, and the other was under 65 and not retired on permanent  and total disability $5,000 married filing a separate return and you did not live with your spouse at any time during the year and, by the end of 2013, you were       • 65 or older $3,750   • under 65 and retired on permanent and total disability1 $3,750   1 Amount cannot be more than the taxable disability income. Irs state tax forms 2012     2 Amount cannot be more than your combined taxable disability income. Irs state tax forms 2012     3 Amount is $5,000 plus the taxable disability income of the spouse under age 65, but not more than $7,500. Irs state tax forms 2012   Figuring the Credit Yourself If you figure the credit yourself, fill out the front of Schedule R. Irs state tax forms 2012 Next, fill out Schedule R, Part III. Irs state tax forms 2012 If you file Form 1040A, enter the amount from Schedule R, line 22 on line 30. Irs state tax forms 2012 If you file Form 1040, include the amount from Schedule R, line 22 on line 53, check box c, and enter “Sch R” on the line next to that box. Irs state tax forms 2012 There are five steps in Part III to determine the amount of your credit. Irs state tax forms 2012 Determine your initial amount (lines 10–12). Irs state tax forms 2012 Determine the total of any nontaxable social security and certain other nontaxable pensions, annuities, and disability benefits you received (lines 13a, 13b, and 13c). Irs state tax forms 2012 Determine your excess adjusted gross income (lines 14–17). Irs state tax forms 2012 Determine the total of steps 2 and 3 (line 18). Irs state tax forms 2012 Determine your credit (lines 19–22). Irs state tax forms 2012 These steps are discussed in more detail next. Irs state tax forms 2012 Step 1. Irs state tax forms 2012 Determine Initial Amount To figure the credit, you must first determine your initial amount using lines 10 through 12. Irs state tax forms 2012 See Table 2. Irs state tax forms 2012 Your initial amount is on line 12. Irs state tax forms 2012 Initial amounts for persons under age 65. Irs state tax forms 2012   If you are a qualified individual under age 65, your initial amount cannot be more than your taxable disability income. Irs state tax forms 2012 Special rules for joint returns. Irs state tax forms 2012   If you are a qualified individual under age 65, and your spouse is also a qualified individual, your initial amount is your taxable disability income plus $5,000. Irs state tax forms 2012   If you are a qualified individual, and both you and your spouse are under age 65, your initial amount cannot be more than your combined taxable disability income. Irs state tax forms 2012 Step 2. Irs state tax forms 2012 Total Certain Nontaxable Pensions and Benefits Step 2 is to figure the total amount of nontaxable social security and certain other nontaxable payments you received during the year. Irs state tax forms 2012 You must reduce your initial amount by these payments. Irs state tax forms 2012 Enter these nontaxable payments on lines 13a or 13b and total them on line 13c. Irs state tax forms 2012 If you are married filing jointly, you must enter the combined amount of nontaxable payments both you and your spouse received. Irs state tax forms 2012 Worksheets are provided in the instructions for Forms 1040 and 1040A to help you determine if any of your social security benefits (or equivalent railroad retirement benefits) are taxable. Irs state tax forms 2012 Include the following nontaxable payments in the amounts you enter on lines 13a and 13b. Irs state tax forms 2012 Nontaxable social security payments. Irs state tax forms 2012 This is the nontaxable part of the benefits shown in box 5 of Form SSA-1099, Social Security Benefit Statement, before deducting any amounts withheld to pay premiums on supplementary Medicare insurance, and before any reduction because of benefits received under workers' compensation. Irs state tax forms 2012 (Do not include a lump-sum death benefit payment you may receive as a surviving spouse, or a surviving child's insurance benefit payments you may receive as a guardian. Irs state tax forms 2012 ) Nontaxable railroad retirement pension payments treated as social security. Irs state tax forms 2012 This is the nontaxable part of the benefits shown in box 5 of Form RRB-1099, Payments by the Railroad Retirement Board. Irs state tax forms 2012 Nontaxable pension or annuity payments or disability benefits that are paid under a law administered by the Department of Veterans Affairs (VA). Irs state tax forms 2012 (Do not include amounts received as a pension, annuity, or similar allowance for personal injuries or sickness resulting from active service in the armed forces of any country or in the National Oceanic and Atmospheric Administration or the Public Health Service, or as a disability annuity under section 808 of the Foreign Service Act of 1980. Irs state tax forms 2012 ) Pension or annuity payments or disability benefits that are excluded from income under any provision of federal law other than the Internal Revenue Code. Irs state tax forms 2012 (Do not include amounts that are a return of your cost of a pension or annuity. Irs state tax forms 2012 These amounts do not reduce your initial amount. Irs state tax forms 2012 ) You should be sure to take into account all of the nontaxable amounts you receive. Irs state tax forms 2012 These amounts are verified by the IRS through information supplied by other government agencies. Irs state tax forms 2012 Step 3. Irs state tax forms 2012 Determine Excess Adjusted Gross Income You also must reduce your initial amount by your excess adjusted gross income. Irs state tax forms 2012 Figure your excess adjusted gross income on lines 14–17. Irs state tax forms 2012 You figure your excess adjusted gross income as follows. Irs state tax forms 2012 Subtract from your adjusted gross income (Form 1040A, line 22 or Form 1040, line 38) the amount shown for your filing status. Irs state tax forms 2012 $7,500 if you are single, a head of household, or a qualifying widow(er) with dependent child, $10,000 if you are married filing jointly, or $5,000 if you are married filing separately and you and your spouse did not live in the same household at any time during the tax year. Irs state tax forms 2012 Divide the result of (1) by 2. Irs state tax forms 2012 Step 4. Irs state tax forms 2012 Determine the Total of Steps 2 and 3 To determine if you can take the credit, you must add (on line 18) the amounts you figured in Step 2 (line 13c) and Step 3 (line 17). Irs state tax forms 2012 Step 5. Irs state tax forms 2012 Determine Your Credit Subtract the amount determined in Step 4 (line 18) from the amount determined in Step 1 (line 12), and multiply the result by 15% (. Irs state tax forms 2012 15). Irs state tax forms 2012 In certain cases, the amount of your credit may be limited. Irs state tax forms 2012 See Limit on credit , later. Irs state tax forms 2012 Example. Irs state tax forms 2012 You are 66 years old and your spouse is 64. Irs state tax forms 2012 Your spouse is not disabled. Irs state tax forms 2012 You file a joint return on Form 1040. Irs state tax forms 2012 Your adjusted gross income is $14,630. Irs state tax forms 2012 Together you received $3,200 from social security, which was nontaxable. Irs state tax forms 2012 You figure the credit as follows: Example applying the 5 step process Amount (Line references (shown in parentheses) are to the Schedule R)      1. Irs state tax forms 2012 Initial amount (line 12) $5,000 2. Irs state tax forms 2012 Total nontaxable social security  and other nontaxable  pensions (line 13c) $3,200   3. Irs state tax forms 2012 Excess adjusted gross income  ($14,630–$10,000) ÷ 2 (line 17) 2,315   4. Irs state tax forms 2012 Add (2) and (3) (line 18) 5,515 5. Irs state tax forms 2012 Subtract (4) from (1) (line 12 – line 18 = line 19) (Do not enter less than -0-) $ -0- You cannot take the credit because your nontaxable social security plus your excess adjusted gross income is more than your initial amount. Irs state tax forms 2012 Limit on credit. Irs state tax forms 2012   The amount of credit you can claim is generally limited to the amount of your tax. Irs state tax forms 2012 Use the Credit Limit Worksheet in the Instructions for Schedule R to determine if your credit is limited. Irs state tax forms 2012 Examples The following examples illustrate the credit for the elderly or the disabled. Irs state tax forms 2012 The initial amounts are taken from Table 2, earlier. Irs state tax forms 2012 Example 1. Irs state tax forms 2012 James Davis is 58 years old, single, and files Form 1040A. Irs state tax forms 2012 In 2011 he retired on permanent and total disability, and he is still permanently and totally disabled. Irs state tax forms 2012 He got the required physician's statement in 2011 and kept it with his tax records. Irs state tax forms 2012 His physician signed on line B of the statement. Irs state tax forms 2012 This year James checks the box in Schedule R, Part II. Irs state tax forms 2012 He does not need to get another statement for 2013. Irs state tax forms 2012 He received the following income for the year: Nontaxable social security $1,500 Interest (taxable) 100 Taxable disability pension 11,400       James' adjusted gross income is $11,500 ($11,400 + $100). Irs state tax forms 2012 He figures the credit on Schedule R as follows: 1. Irs state tax forms 2012 Initial amount   $5,000 2. Irs state tax forms 2012 Taxable disability pension   11,400 3. Irs state tax forms 2012 Smaller of line 1 or line 2   5,000 4. Irs state tax forms 2012 Nontaxable social security  benefits $1,500     5. Irs state tax forms 2012 Excess adjusted gross income  ($11,500 − $7,500) ÷ 2 2,000     6. Irs state tax forms 2012 Add lines 4 and 5   3,500 7. Irs state tax forms 2012 Subtract line 6 from line 3  (Do not enter less than (-0-))   1,500 8. Irs state tax forms 2012 Multiply line 7 by 15% (. Irs state tax forms 2012 15)   225 9. Irs state tax forms 2012 Enter the amount from the  Credit Limit Worksheet in the  Instructions for Schedule R, line 21   151 10. Irs state tax forms 2012 Credit (Enter the smaller of  line 8 or line 9)   $ 151 He enters $151 on line 30 of Form 1040A. Irs state tax forms 2012 The Schedule R for James Davis is not shown. Irs state tax forms 2012 Example 2. Irs state tax forms 2012 William White is 53. Irs state tax forms 2012 His wife Helen is 49. Irs state tax forms 2012 William had a stroke 3 years ago and retired on permanent and total disability. Irs state tax forms 2012 He is still permanently and totally disabled because of the stroke. Irs state tax forms 2012 In November, Helen was injured in an accident at work and retired on permanent and total disability. Irs state tax forms 2012 William received nontaxable social security disability benefits of $2,000 during the year and a taxable disability pension of $6,200. Irs state tax forms 2012 Helen earned $12,500 from her job and received a taxable disability pension of $1,700. Irs state tax forms 2012 Their joint return on Form 1040 shows adjusted gross income of $20,400 ($6,200 + $12,500 + $1,700). Irs state tax forms 2012 They do not itemize deductions. Irs state tax forms 2012 They do not have any amounts that would increase their standard deduction. Irs state tax forms 2012 Helen's doctor completed the physician's statement in the Instructions for Schedule R. Irs state tax forms 2012 Helen is not required to include the statement with their return, but she must keep it for her records. Irs state tax forms 2012 William got a physician's statement for the year he had the stroke. Irs state tax forms 2012 His doctor had signed on line B of that physician's statement to certify that William was permanently and totally disabled. Irs state tax forms 2012 William has kept the physician's statement with his records. Irs state tax forms 2012 He checks the box on Schedule R, Part II and writes his first name in the space above the box on line 2. Irs state tax forms 2012 William and Helen use Schedule R to figure their $41 credit for the elderly or the disabled. Irs state tax forms 2012 They attach Schedule R to their Form 1040 and enter $41 on line 53. Irs state tax forms 2012 They check box c on line 53 and enter “Sch R” on the line next to that box. Irs state tax forms 2012 See their filled-in Schedule R and Helen's filled-in physician's statement, later. Irs state tax forms 2012 Instructions for Physician's Statement     Taxpayer Physician If you retired after 1976, enter the date you retired in the space provided on the statement below. Irs state tax forms 2012 A person is permanently and totally disabled if both of the following apply:   1. Irs state tax forms 2012 He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Irs state tax forms 2012   2. Irs state tax forms 2012 A physician determines that the disability has lasted or can be expected to last continuously for at least a year or can lead to death. Irs state tax forms 2012 Physician's Statement     I certify that Helen A. Irs state tax forms 2012 White Name of disabled person was permanently and totally disabled on January 1, 1976, or January 1, 1977, or was permanently and totally disabled on the date he or she retired. Irs state tax forms 2012 If retired after 1976, enter the date retired ▶ November 1, 2013   Physician: Sign your name on either A or B below. Irs state tax forms 2012 AThe disability has lasted or can be expected to last continuously for at least a year     Physician's signatureDate BThere is no reasonable probability that the disabled condition will ever improve Ayden D. Irs state tax forms 2012 Doctor 2/8/14   Physician's signatureDate Physician's name Physician's address Ayden D. Irs state tax forms 2012 Doctor 1900 Green St. Irs state tax forms 2012 , Hometown, MD 20000         This image is too large to be displayed in the current screen. Irs state tax forms 2012 Please click the link to view the image. Irs state tax forms 2012 Page 1 of Schedule R for the Whites This image is too large to be displayed in the current screen. Irs state tax forms 2012 Please click the link to view the image. Irs state tax forms 2012 Page 2 of Schedule R for the Whites How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. Irs state tax forms 2012 Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Irs state tax forms 2012 Free help with your tax return. Irs state tax forms 2012   Free help in preparing your return is available nationwide from IRS-certified volunteers. Irs state tax forms 2012 The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Irs state tax forms 2012 The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Irs state tax forms 2012 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs state tax forms 2012 Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Irs state tax forms 2012 To find the nearest VITA or TCE site, visit IRS. Irs state tax forms 2012 gov or call 1-800-906-9887. Irs state tax forms 2012   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs state tax forms 2012 To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs state tax forms 2012 aarp. Irs state tax forms 2012 org/money/taxaide or call 1-888-227-7669. Irs state tax forms 2012   For more information on these programs, go to IRS. Irs state tax forms 2012 gov and enter “VITA” in the search box. Irs state tax forms 2012 Internet. Irs state tax forms 2012 IRS. Irs state tax forms 2012 gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Irs state tax forms 2012 Apply for an Employer Identification Number (EIN). Irs state tax forms 2012 Go to IRS. Irs state tax forms 2012 gov and enter Apply for an EIN in the search box. Irs state tax forms 2012 Request an Electronic Filing PIN by going to IRS. Irs state tax forms 2012 gov and entering Electronic Filing PIN in the search box. Irs state tax forms 2012 Check the status of your 2013 refund with Where's My Refund? Go to IRS. Irs state tax forms 2012 gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs state tax forms 2012 If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Irs state tax forms 2012 Check the status of your amended return. Irs state tax forms 2012 Go to IRS. Irs state tax forms 2012 gov and enter Where's My Amended Return in the search box. Irs state tax forms 2012 Download forms, instructions, and publications, including some accessible versions. Irs state tax forms 2012 Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Irs state tax forms 2012 gov or IRS2Go. Irs state tax forms 2012 Tax return and tax account transcripts are generally available for the current year and past three years. Irs state tax forms 2012 Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs state tax forms 2012 gov. Irs state tax forms 2012 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Irs state tax forms 2012 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs state tax forms 2012 gov. Irs state tax forms 2012 Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Irs state tax forms 2012 gov or IRS2Go. Irs state tax forms 2012 Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Irs state tax forms 2012 An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Irs state tax forms 2012 Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Irs state tax forms 2012 If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Irs state tax forms 2012 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Irs state tax forms 2012 Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Irs state tax forms 2012 gov. Irs state tax forms 2012 Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Irs state tax forms 2012 The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Irs state tax forms 2012 Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Irs state tax forms 2012 AARP offers the Tax-Aide counseling program as part of the TCE program. Irs state tax forms 2012 Visit AARP's website to find the nearest Tax-Aide location. Irs state tax forms 2012 Research your tax questions. Irs state tax forms 2012 Search publications and instructions by topic or keyword. Irs state tax forms 2012 Read the Internal Revenue Code, regulations, or other official guidance. Irs state tax forms 2012 Read Internal Revenue Bulletins. Irs state tax forms 2012 Sign up to receive local and national tax news by email. Irs state tax forms 2012 Phone. Irs state tax forms 2012 You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Irs state tax forms 2012 Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Irs state tax forms 2012 Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Irs state tax forms 2012 Call to locate the nearest volunteer help site, 1-800-906-9887. Irs state tax forms 2012 Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Irs state tax forms 2012 The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Irs state tax forms 2012 Most VITA and TCE sites offer free electronic filing. Irs state tax forms 2012 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Irs state tax forms 2012 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Irs state tax forms 2012 Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Irs state tax forms 2012 The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Irs state tax forms 2012 If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Irs state tax forms 2012 Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs state tax forms 2012 Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs state tax forms 2012 Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Irs state tax forms 2012 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Irs state tax forms 2012 Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Irs state tax forms 2012 You should receive your order within 10 business days. Irs state tax forms 2012 Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Irs state tax forms 2012 Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Irs state tax forms 2012 Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Irs state tax forms 2012 Call to ask tax questions, 1-800-829-1040. Irs state tax forms 2012 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Irs state tax forms 2012 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Irs state tax forms 2012 These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Irs state tax forms 2012 gsa. Irs state tax forms 2012 gov/fedrelay. Irs state tax forms 2012 Walk-in. Irs state tax forms 2012 You can find a selection of forms, publications and services — in-person, face-to-face. Irs state tax forms 2012 Products. Irs state tax forms 2012 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs state tax forms 2012 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Irs state tax forms 2012 Services. Irs state tax forms 2012 You can walk in to your local TAC most business days for personal, face-to-face tax help. Irs state tax forms 2012 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Irs state tax forms 2012 If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Irs state tax forms 2012 No appointment is necessary—just walk in. Irs state tax forms 2012 Before visiting, check www. Irs state tax forms 2012 irs. Irs state tax forms 2012 gov/localcontacts for hours of operation and services provided. Irs state tax forms 2012 Mail. Irs state tax forms 2012 You can send your order for forms, instructions, and publications to the address below. Irs state tax forms 2012 You should receive a response within 10 business days after your request is received. Irs state tax forms 2012  Internal Revenue Service 1201 N. Irs state tax forms 2012 Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Irs state tax forms 2012   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs state tax forms 2012 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Irs state tax forms 2012 What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Irs state tax forms 2012 We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Irs state tax forms 2012 You face (or your business is facing) an immediate threat of adverse action. Irs state tax forms 2012 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Irs state tax forms 2012   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Irs state tax forms 2012 Here's why we can help: TAS is an independent organization within the IRS. Irs state tax forms 2012 Our advocates know how to work with the IRS. Irs state tax forms 2012 Our services are free and tailored to meet your needs. Irs state tax forms 2012 We have offices in every state, the District of Columbia, and Puerto Rico. Irs state tax forms 2012 How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Irs state tax forms 2012 irs. Irs state tax forms 2012 gov/advocate, or call us toll-free at 1-877-777-4778. Irs state tax forms 2012 How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Irs state tax forms 2012 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Irs state tax forms 2012 irs. Irs state tax forms 2012 gov/sams. Irs state tax forms 2012 Low Income Taxpayer Clinics. Irs state tax forms 2012   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Irs state tax forms 2012 Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Irs state tax forms 2012 Visit www. Irs state tax forms 2012 TaxpayerAdvocate. Irs state tax forms 2012 irs. Irs state tax forms 2012 gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Irs state tax forms 2012 Prev  Up  Next   Home   More Online Publications
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Understanding your CP27 Notice

We've sent you this notice because our records indicate you may be eligible for the Earned Income Credit (EIC), but didn't claim it on your tax return.


What you need to do

  • Read your notice carefully — it will explain the steps needed to determine your qualifications.
  • Complete the Earned Income Credit Eligibility Worksheet.

    If you are eligible for the credit,
    • Sign and date the worksheet.
    • Mail the signed worksheet in the envelope provided.

    If you are not eligible for the credit,
    • Do not return the eligibility worksheet to us.

What we will do

We will review your worksheet and make a determination.

  • If you're eligible for the credit, we'll send you a refund check in 6 ― 8 weeks, as long as you don't owe tax or any other debts we're required to collect.
  • If we deny the credit, we will send you a letter of explanation.
  • If you don't hear from us after 8 weeks, call our toll free line at 1-800-829-0922 to check the status.

You may want to...


Answers to Common Questions

Why did the IRS send me this notice?
You may be eligible for the Earned Income Credit (EIC). The EIC is a credit for certain people who work and have earned income. People without dependent children may qualify for a refund up to $464, even if they do not owe any tax.

I lost the return envelope. Where do I mail my Earned Income Credit Eligibility Worksheet?
Mail the completed worksheet to the address listed on the top left corner of the worksheet. This office handles cases in your region, so it's important you send it there to avoid potential delays in processing.


Tips for next year

Claim the credit if you are still eligible.

Ask the IRS to figure the earned income credit for you by writing "EIC" on the EIC line, complete Schedule EIC, and attach it to your return. If you qualify for the credit, the IRS will calculate it for you.

Write "NO" on the EIC line if you do not want or you do not qualify for the credit.

Page Last Reviewed or Updated: 03-Mar-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Irs State Tax Forms 2012

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