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Military Taxes Online

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Military Taxes Online

Military taxes online 6. Military taxes online   Tuition and Fees Deduction Table of Contents IntroductionWhat is the tax benefit of the tuition and fees deduction. Military taxes online Can You Claim the DeductionWho Can Claim the Deduction Who Cannot Claim the Deduction 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 DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Claiming the Deduction Illustrated Example Introduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). Military taxes online You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. Military taxes online The qualified expenses must be for higher education, as explained later under Qualified Education Expenses . Military taxes online What is the tax benefit of the tuition and fees deduction. Military taxes online   The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Military taxes online   This deduction is taken as an adjustment to income. Military taxes online This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). Military taxes online This deduction may be beneficial to you if you do not qualify for the American opportunity or lifetime learning credits. Military taxes online You can choose the education benefit that will give you the lowest tax. Military taxes online You may want to compare the tuition and fees deduction to the education credits. Military taxes online See chapter 2, American Opportunity Credit and chapter 3, Lifetime Learning Credit for more information on the education credits. Military taxes online Table 6-1. Military taxes online Tuition and Fees Deduction at a Glance summarizes the features of the tuition and fees deduction. Military taxes online Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Military taxes online Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Military taxes online You pay qualified education expenses of higher education. Military taxes online You pay the education expenses for an eligible student. Military taxes online The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return. Military taxes online The term “qualified education expenses” is defined later under Qualified Education Expenses . Military taxes online “Eligible student” is defined later under Who Is an Eligible Student . Military taxes online For more information on claiming the deduction for a dependent, see Who Can Claim a Dependent's Expenses , later. Military taxes online Table 6-1. Military taxes online Tuition and Fees Deduction at a Glance Do not rely on this table alone. Military taxes online Refer to the text for complete details. Military taxes online Question Answer What is the maximum benefit? You can reduce your income subject to tax by up to $4,000. Military taxes online What is the limit on modified adjusted gross income (MAGI)? $160,000 if married filing a joint return; $80,000 if single, head of household, or qualifying widow(er). Military taxes online Where is the deduction taken? As an adjustment to income on  Form 1040 or Form 1040A. Military taxes online For whom must the expenses be paid? A student enrolled in an eligible educational institution who is either: •you,  •your spouse, or  •your dependent for whom you claim an exemption. Military taxes online What tuition and fees are deductible? Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. Military taxes online Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Military taxes online Your filing status is married filing separately. Military taxes online Another person can claim an exemption for you as a dependent on his or her tax return. Military taxes online You cannot take the deduction even if the other person does not actually claim that exemption. Military taxes online Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Military taxes online 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. Military taxes online More information on nonresident aliens can be found in Publication 519. Military taxes online What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Military taxes online Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period beginning in 2013 or in the first 3 months of 2014. Military taxes online 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 deduction. Military taxes online Academic period. Military taxes online   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. Military taxes online 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. Military taxes online Paid with borrowed funds. Military taxes online   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Military taxes online Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Military taxes online Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. Military taxes online Student withdraws from class(es). Military taxes online   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Military taxes online Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Military taxes online Eligible educational institution. Military taxes online   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. Military taxes online S. Military taxes online Department of Education. Military taxes online It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Military taxes online The educational institution should be able to tell you if it is an eligible educational institution. Military taxes online   Certain educational institutions located outside the United States also participate in the U. Military taxes online S. Military taxes online Department of Education's Federal Student Aid (FSA) programs. Military taxes online Related expenses. Military taxes online   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 as a condition of enrollment or attendance. Military taxes online Prepaid expenses. Military taxes online   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. Military taxes online See Academic period , earlier. Military taxes online 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). Military taxes online 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). Military taxes online In the following examples, assume that each student is an eligible student and each college or university an eligible educational institution. Military taxes online Example 1. Military taxes online Jackson is a sophomore in University V's degree program in dentistry. Military taxes online 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. Military taxes online Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified education expense. Military taxes online Example 2. Military taxes online 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. Military taxes online 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. Military taxes online Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Military taxes online Donna bought hers at College W's bookstore. Military taxes online Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified education expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. Military taxes online Example 3. Military taxes online When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Military taxes online 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 the student government. Military taxes online No portion of the fee covers personal expenses. Military taxes online Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. Military taxes online Therefore, it is a qualified expense. Military taxes online No Double Benefit Allowed You cannot do any of the following. Military taxes online Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Military taxes online Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. Military taxes online Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Military taxes online For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Military taxes online See Coordination With Tuition and Fees Deduction in chapter 8, Qualified Tuition Program, later. Military taxes online Deduct qualified education expenses that have been paid with tax-free interest on U. Military taxes online S. Military taxes online savings bonds (Form 8815). Military taxes online See Figuring the Tax-Free Amount in chapter 10, Education Savings Bond Program, later. Military taxes online Deduct qualified education expenses that have been paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Military taxes online See the following section on Adjustments to Qualified Education Expenses. Military taxes online 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. Military taxes online The result is the amount of adjusted qualified education expenses for each student. Military taxes online You must also reduce qualified education expenses by the other amounts referred to in No Double Benefit Allowed , earlier. Military taxes online Tax-free educational assistance. Military taxes online   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. Military taxes online See Academic period , earlier. Military taxes online   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Military taxes online 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). Military taxes online   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. Military taxes online 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. Military taxes online   This tax-free education 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. Military taxes online Generally, any scholarship or fellowship is treated as tax free. Military taxes online 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. Military taxes online 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. Military taxes online 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. Military taxes online 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. Military taxes online For details, see Adjustments to Qualified Education Expenses in chapters 2 and 3. Military taxes online Refunds. Military taxes online   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. Military taxes online Some tax-free educational assistance received after 2013 may be treated as a refund. Military taxes online See Tax-free educational assistance , earlier. Military taxes online Refunds received in 2013. Military taxes online   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. Military taxes online Refunds received after 2013 but before your income tax return is filed. Military taxes online   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. Military taxes online Refunds received after 2013 and after your income tax return is filed. Military taxes online   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. Military taxes online See Credit recapture , later. Military taxes online Coordination with Coverdell education savings accounts and qualified tuition programs. Military taxes online   Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). Military taxes online For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Military taxes online Credit recapture. Military taxes online    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. Military taxes online You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing that amount by the amount of the refund or tax-free educational assistance. Military taxes online 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). Military taxes online Include that amount as an additional tax for the year the refund or tax-free assistance was received. Military taxes online Example. Military taxes online   You paid $3,500 of qualified education expenses in December 2013, and your child began college in January 2014. Military taxes online You claimed $3,500 as the tuition and fees deduction on your 2013 income tax return. Military taxes online The reduction reduced your taxable income by $3,500. Military taxes online Also, you claimed no tax credits in 2013. Military taxes online Your child withdrew from two classes and you received a refund of $2,000 in 2014 after you filed your 2013 tax return. Military taxes online Refigure your 2013 tuition and fees deduction using $1,500 of qualified education expense instead of the $3,500. Military taxes online The refigured tuition and fees deduction is $1,500. Military taxes online Do not file an amended 2013 tax return to account for this adjustment. Military taxes online Instead, include the difference of $2,000 (but only to the extent this difference would have increased your 2013 tax) on the “Other income” line of your 2014 Form 1040. Military taxes online You cannot file Form 1040A for 2014. Military taxes online Amounts that do not reduce qualified education expenses. Military taxes online   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. Military taxes online   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. Military taxes online 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 Restrictions. Military taxes online The use of the money is not restricted. Military taxes online Example 1. Military taxes online In 2013, Jackie paid $3,000 for tuition and $5,000 for room and board at University X. Military taxes online The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. Military taxes online To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. Military taxes online The terms of the scholarship state that it can be used to pay any of Jackie's college expenses. Military taxes online University X applies the $2,000 scholarship against Jackie's $8,000 total bill, and Jackie pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. Military taxes online Jackie does not report any portion of the scholarship as income on her tax return. Military taxes online In figuring the tuition and fees deduction, Jackie must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. Military taxes online The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. Military taxes online Jackie is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship) in 2013. Military taxes online Example 2. Military taxes online The facts are the same as in Example 1, except that Jackie reports her entire scholarship as income on her tax return. Military taxes online Because Jackie reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. Military taxes online Jackie is treated as having paid $3,000 in qualified education expenses. Military taxes online 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. Military taxes online This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Military taxes online Sports, games, hobbies, and noncredit courses. Military taxes online   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. Military taxes online However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Military taxes online Comprehensive or bundled fees. Military taxes online   Some eligible educational institutions combine all of their fees for an academic period into one amount. Military taxes online 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. Military taxes online 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. Military taxes online See Figuring the Deduction , later, for more information about Form 1098-T. Military taxes online Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). Military taxes online Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. Military taxes online For you to be able to deduct qualified education expenses for your dependent, you must claim an exemption for that individual. Military taxes online You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Military taxes online IF your dependent is an eligible student and you. Military taxes online . Military taxes online . Military taxes online AND. Military taxes online . Military taxes online . Military taxes online THEN. Military taxes online . Military taxes online . Military taxes online claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. Military taxes online Your dependent cannot take a deduction. Military taxes online claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Military taxes online do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Military taxes online do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Military taxes online Expenses paid by dependent. Military taxes online   If your dependent pays qualified education expenses, no one can take a tuition and fees deduction for those expenses. Military taxes online Neither you nor your dependent can deduct the expenses. Military taxes online For purposes of the tuition and fees deduction, you are not treated as paying any expenses actually paid by a dependent for whom you or anyone other than the dependent can claim an exemption. Military taxes online This rule applies even if you do not claim an exemption for your dependent on your tax return. Military taxes online Expenses paid by you. Military taxes online   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring your tuition and fees deduction. Military taxes online Expenses paid under divorce decree. Military taxes online   Qualified education expenses paid directly to an eligible educational institution for a student under a court-approved divorce decree are treated as paid by the student. Military taxes online Only the student would be eligible to take a tuition and fees deduction for that payment, and then only if no one else could claim an exemption for the student. Military taxes online Expenses paid by others. Military taxes online   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. Military taxes online In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Military taxes online If you claim, or can claim, an exemption on your tax return for the student, you are not considered to have paid the expenses and you cannot deduct them. Military taxes online If the student is not a dependent, only the student can deduct payments made directly to the institution for his or her expenses. Military taxes online If the student is your dependent, no one can deduct the payments. Military taxes online Example. Military taxes online In 2013, Ms. Military taxes online Baker makes a payment directly to an eligible educational institution for her grandson Dan's qualified education expenses. Military taxes online For purposes of deducting tuition and fees, Dan is treated as receiving the money from his grandmother and, in turn, paying his own qualified education expenses. Military taxes online If an exemption cannot be claimed for Dan on anyone else's tax return, only Dan can claim a tuition and fees deduction for his grandmother's payment. Military taxes online If someone else can claim an exemption for Dan, no one will be allowed a deduction for Ms. Military taxes online Baker's payment. Military taxes online Tuition reduction. Military taxes online   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. Military taxes online 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. Military taxes online For more information on tuition reductions, see Qualified Tuition Reduction , in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Military taxes online Figuring the Deduction The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. Military taxes online See Effect of the Amount of Your Income on the Amount of Your Deduction , later. Military taxes online Form 1098-T. Military taxes online   To help you figure your tuition and fees deduction, the student should receive Form 1098-T (see Appendix A for a completed example of Form 1098-T). Military taxes online 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. Military taxes online An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Military taxes online However, the amount in boxes 1 and 2 of Form 1098-T might be different than what you paid. Military taxes online When figuring the deduction, use only the amounts you paid in 2013 for qualified education expenses. Military taxes online   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. Military taxes online    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. Military taxes online Effect of the Amount of Your Income on the Amount of Your Deduction If your MAGI is not more than $65,000 ($130,000 if you are married filing jointly), your maximum tuition and fees deduction is $4,000. Military taxes online If your MAGI is larger than $65,000 ($130,000 if you are married filing jointly), but is not more than $80,000 ($160,000 if you are married filing jointly), your maximum deduction is $2,000. Military taxes online No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000 if you are married filing jointly). Military taxes online Modified adjusted gross income (MAGI). Military taxes online   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for tuition and fees. Military taxes online However, as discussed below, there may be other modifications. Military taxes online MAGI when using Form 1040A. Military taxes online   If you file Form 1040A, your MAGI is the AGI on line 22 of that form, figured without taking into account any amount on line 19 (tuition and fees deduction). Military taxes online MAGI when using Form 1040. Military taxes online   If you file Form 1040, your MAGI is the AGI on line 38 of that form, figured without taking into account any amount on line 34 (tuition and fees deduction) or line 35 (domestic production activities deduction), and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Military taxes online   Table 6-2 shows how the amount of your MAGI can affect your tuition and fees deduction. Military taxes online   You can use Worksheet 6-1. Military taxes online MAGI for the Tuition and Fees Deduction , later, to figure your MAGI. Military taxes online Table 6-2. Military taxes online Effect of MAGI on Maximum Tuition and Fees Deduction IF your filing status is. Military taxes online . Military taxes online . Military taxes online AND your MAGI is. Military taxes online . Military taxes online . Military taxes online THEN your maximum tuition and fees deduction is. Military taxes online . Military taxes online . Military taxes online single,  head of household, or qualifying widow(er) not more than $65,000 $4,000. Military taxes online more than $65,000  but not more than $80,000 $2,000. Military taxes online more than $80,000 $0. Military taxes online married filing joint return not more than $130,000 $4,000. Military taxes online more than $130,000 but not more than $160,000 $2,000. Military taxes online more than $160,000 $0. Military taxes online Claiming the Deduction You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A. Military taxes online Enter the deduction on Form 1040, line 34, or Form 1040A, line 19. Military taxes online A filled-in Form 8917 is shown at the end of this chapter. Military taxes online Illustrated Example Tim Pfister, a single taxpayer, enrolled full-time at a local college to earn a degree in engineering. Military taxes online This is the first year of his postsecondary education. Military taxes online During 2013, he paid $3,600 for his qualified 2013 tuition expense. Military taxes online Both he and the college meet all of the requirements for the tuition and fees deduction. Military taxes online Tim's total income (Form 1040, line 22) and MAGI are $26,000. Military taxes online He figures his deduction of $3,600 as shown on Form 8917, later. Military taxes online Worksheet 6-1. Military taxes online MAGI for the Tuition and Fees Deduction Use this worksheet if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. Military taxes online Before using this worksheet, you must complete Form 1040, lines 7 through 33, and figure any amount to be entered on the dotted line next to line 36. Military taxes online 1. Military taxes online Enter the amount from Form 1040, line 22   1. Military taxes online         2. Military taxes online Enter the total from Form 1040, lines 23 through 33   2. Military taxes online               3. Military taxes online Enter the total of any amounts entered on the dotted line next to Form 1040, line 36   3. Military taxes online               4. Military taxes online Add lines 2 and 3   4. Military taxes online         5. Military taxes online Subtract line 4 from line 1   5. Military taxes online         6. Military taxes online Enter your foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   6. Military taxes online         7. Military taxes online Enter your foreign housing deduction (Form 2555, line 50)   7. Military taxes online         8. Military taxes online Enter the amount of income from Puerto Rico you are excluding   8. Military taxes online         9. Military taxes online Enter the amount of income from American Samoa you are  excluding (Form 4563, line 15)   9. Military taxes online         10. Military taxes online Add lines 5 through 9. Military taxes online This is your modified adjusted gross income   10. Military taxes online     Note. Military taxes online If the amount on line 10 is more than $80,000 ($160,000 if married filing jointly),  you cannot take the deduction for tuition and fees. Military taxes online       This image is too large to be displayed in the current screen. Military taxes online Please click the link to view the image. Military taxes online Form 8917 for Tim Pfister Prev  Up  Next   Home   More Online Publications
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Understanding your CP12R Notice

We made changes to the computation of the Rebate Recovery Credit on your return.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Review the notice, and compare our changes to the information on your tax return.
  • If you agree with the changes we made, do nothing; you should receive a refund check in 4-6 weeks, as long as you don't owe other tax or debts we're required to collect.
  • If you don't agree, call 1-800-829-8374 to review your account or contact us by mail. Include any correspondence or documentation.

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Answers to Common Questions

Why did I receive this notice?
We issue Notice CP12R when we correct one or more mistakes on your tax return, and

  • The overpayment is different from the one you expected, or
  • You have an overpayment when you thought you owed money or had an even balance, or
  • We computed your Recovery Rebate Credit for you on your tax return.

How can I find out what caused my tax return to change?
Please contact us at the toll free number listed on the top right corner of your notice for specific information concerning your tax return.

What should I do if I disagree with the changes you made?
If you disagree, contact us at the toll free number listed on the top right corner of your notice.

What is the Rebate Recovery Credit?
The Recovery Rebate Credit is a special one-time benefit that most people received in 2008 in the form of an Economic Stimulus Payment. Learn more about the Recovery Rebate Credit.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Page Last Reviewed or Updated: 19-Feb-2014

The Military Taxes Online

Military taxes online 29. Military taxes online   Limit on Itemized Deductions Table of Contents Introduction Useful Items - You may want to see: Are You Subject to the Limit? Which Itemized Deductions Are Limited? Which Itemized Deductions Are Not Limited? How Do You Figure the Limit?Example. Military taxes online Introduction This chapter discusses the overall limit on itemized deductions on Schedule A (Form 1040). Military taxes online The following topics are included. Military taxes online Who is subject to the limit. Military taxes online Which itemized deductions are limited. Military taxes online How to figure the limit. Military taxes online Useful Items - You may want to see: Forms (and Instructions) Schedule A (Form 1040) Itemized Deductions Are You Subject to the Limit? You are subject to the limit on certain itemized deductions if your adjusted gross income (AGI) is more than $300,000 if married filing jointly or qualifying widow(er), $275,000 if head of household, $250,000 if single, or $150,000 if married filing separately. Military taxes online Your AGI is the amount on Form 1040, line 38. Military taxes online Which Itemized Deductions Are Limited? The following Schedule A (Form 1040) deductions are subject to the overall limit on itemized deductions. Military taxes online Taxes paid—line 9 Interest paid—lines 10, 11, 12, and 13 Gifts to charity—line 19 Job expenses and certain miscellaneous deductions—line 27 Other miscellaneous deductions—line 28, excluding gambling and casualty or theft losses. Military taxes online . Military taxes online Which Itemized Deductions Are Not Limited? The following Schedule A (Form 1040) deductions are not subject to the overall limit on itemized deductions. Military taxes online However, they are still subject to other applicable limits. Military taxes online Medical and dental expenses—line 4. Military taxes online Investment interest expense—line 14. Military taxes online Casualty and theft losses of personal use property—line 20. Military taxes online Casualty and theft losses of income-producing property—line 28. Military taxes online Gambling losses—line 28. Military taxes online How Do You Figure the Limit? If your itemized deductions are subject to the limit, the total of all your itemized deductions is reduced by the smaller of: 80% of your itemized deductions that are affected by the limit. Military taxes online See Which Itemized Deductions Are Limited , earlier, or 3% of the amount by which your AGI exceeds $300,000 if married filing jointly or qualifying widow(er), $275,000 if head of household, $250,000 if single, or $150,000 if married filing separately. Military taxes online Before you figure the overall limit on itemized deductions, you first must complete Schedule A (Form 1040), lines 1 through 28, including any related forms (such as Form 2106, Form 4684, etc. Military taxes online ). Military taxes online The overall limit on itemized deductions is figured after you have applied any other limit on the allowance of any itemized deduction. Military taxes online These other limits include charitable contribution limits (chapter 24), the limit on certain meal and entertainment expenses (chapter 26), and the 2%-of-adjusted-gross-income limit on certain miscellaneous deductions (chapter 28). Military taxes online Itemized Deductions Worksheet. Military taxes online   After you have completed Schedule A (Form 1040) through line 28, you can use the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040) to figure your limit. Military taxes online Enter the result on Schedule A (Form 1040), line 29. Military taxes online Keep the worksheet for your records. Military taxes online    You should compare the amount of your standard deduction to the amount of your itemized deductions after applying the limit. Military taxes online Use the greater amount when completing Form 1040, line 40. Military taxes online See chapter 20 for information on how to figure your standard deduction. Military taxes online Example. Military taxes online For tax year 2013 Bill and Terry Willow are filing a joint return on Form 1040. Military taxes online Their adjusted gross income on line 38 is $325,500. Military taxes online Their Schedule A itemized deductions are as follows: Taxes paid—line 9 $17,900 Interest paid—lines 10, 11, 12, and 13 45,000 Investment interest expense—line 14 41,000 Gifts to charity—line 19 21,000 Job expenses—line 27 17,240 Total $142,140 The Willows’ investment interest expense deduction ($41,000 from Schedule A (Form 1040), line 14) is not subject to the overall limit on itemized deductions. Military taxes online The Willows use the Itemized Deductions Worksheet in the Schedule A (Form 1040) instructions to figure their overall limit. Military taxes online Of their $142,140 total itemized deductions, the Willows can deduct only $141,375 ($142,140 - $765). Military taxes online They enter $141,375 on Schedule A (Form 1040), line 29. Military taxes online Prev  Up  Next   Home   More Online Publications