Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Online Tax Amendment

File Online Tax Extension For FreeFree Federal & State E-file1040 Schedule A Tax FormH&r Block 1040nrFree Federal Income Tax FilingHow To Do 1040ez Tax FormCan I Efile A 2012 Tax ReturnAmend 2010 ReturnElectronic File 1040ez2008 Tax Form 1040Filing Your State Taxes Free2010 Income Tax FormsFile 2006 Tax Return FreeTurbo Tax Amendment 2013How To Amend 2012 Tax ReturnIrs1040ezHow To File 2012 Tax Return In 2014How Do I File 2010 TaxesWhere Mail 1040xIrs Form 1040 EzFree Online Tax Filing For 20122012 Federal Tax Forms 1040Free 1040ez Tax FormsCan I File My 2012 Taxes Online Now1040ez Tax Form 2013Free Tax Filing For SeniorsState Tax Forms 20121042nr EzWww Irs Gov Amended Tax ReturnTax 20101040 Ez 2011How To File Back Income TaxesState Taxes For FreeAmend 2012 Tax Return OnlineH&r Block Ez FormTaxact ComFree Tax Filing For UnemployedTaxslayer Coupon CodeFree Turbotax For MilitaryHow Do I Amend My 2012 Tax Return

Online Tax Amendment

Online tax amendment Publication 907 - Main Content Table of Contents IncomeDependent Care Benefits Social Security and Railroad Retirement Benefits Disability Pensions Military and Government Disability Pensions Other Payments Itemized DeductionsMedical Expenses Impairment-Related Work Expenses Tax CreditsChild and Dependent Care Credit Credit for the Elderly or the Disabled Earned Income Credit Household Employers Business Tax Incentives How To Get Tax Help Income All income is taxable unless it is specifically excluded by law. Online tax amendment The following discussions highlight some income items (both taxable and nontaxable) that are of particular interest to people with disabilities and those who care for people with disabilities. Online tax amendment Dependent Care Benefits Dependent care benefits include: Amounts your employer paid directly to either you or your care provider for the care of your qualifying person(s) while you worked, The fair market value of care in a daycare facility provided or sponsored by your employer, and Pre-tax contributions you made under a dependent care flexible spending arrangement. Online tax amendment Exclusion or deduction. Online tax amendment   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Online tax amendment Your employer can tell you whether your benefit plan qualifies. Online tax amendment To claim the exclusion, you must complete Part III of Form 2441, Child and Dependent Care Expenses. Online tax amendment You cannot use Form 1040EZ. Online tax amendment   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. Online tax amendment Therefore, you would not get an exclusion from wages. Online tax amendment Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. Online tax amendment To claim the deduction, you must use Form 2441. Online tax amendment   The amount you can exclude or deduct is limited to the smallest of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). Online tax amendment Statement for employee. Online tax amendment   Your employer must give you a Form W-2 (or similar statement), showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. Online tax amendment Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. Online tax amendment Qualifying person(s). Online tax amendment   A qualifying person is: A qualifying child who is under age 13 whom you can claim as a dependent. Online tax amendment If the child turned 13 during the year, the child is a qualifying person for the part of the year he or she was under age 13. Online tax amendment Your disabled spouse who is not physically or mentally able to care for himself or herself. Online tax amendment Any disabled person who was not physically or mentally able to care for himself or herself whom you can claim as a dependent (or could claim as a dependent except that the person had gross income of $3,900 or more or filed a joint return). Online tax amendment Any disabled person who was not physically or mentally able to care for himself or herself whom you could claim as a dependent except that you (or your spouse if filing jointly) could be claimed as a dependent on another taxpayer's 2013 return. Online tax amendment For information about excluding benefits on Form 1040, Form 1040NR, or Form 1040A, see Form 2441 and its instructions. Online tax amendment Social Security and Railroad Retirement Benefits If you received social security or equivalent Tier 1 railroad retirement (RRTA) benefits during the year, part of the amount you received may be taxable. Online tax amendment Are any of your benefits taxable?   If the only income you received during the year was your social security or equivalent Tier 1 railroad retirement (RRTA) benefits, your benefits generally are not taxable. Online tax amendment   If you received income during the year in addition to social security or equivalent Tier 1 railroad retirement (RRTA) benefits, part of your benefits may be taxable if all of your other income, including tax-exempt interest, plus half of your benefits are more than: $25,000 if you are single, head of household, or qualifying widow(er), $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $-0- if you are married filing separately and lived with your spouse at any time during 2013. Online tax amendment   For more information, see the instructions for Form 1040, lines 20a and 20b, or Form 1040A, lines 14a and 14b. Online tax amendment Publication 915, Social Security and Equivalent Railroad Retirement Benefits, contains more detailed information. Online tax amendment Supplemental security income (SSI) payments. Online tax amendment   Social security benefits do not include SSI payments, which are not taxable. Online tax amendment Do not include these payments in your income. Online tax amendment Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. Online tax amendment You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A until you reach minimum retirement age. Online tax amendment Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Online tax amendment You may be entitled to a tax credit if you were permanently and totally disabled when you retired. Online tax amendment For information on this credit, see Publication 524, Credit for the Elderly or the Disabled. Online tax amendment Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Online tax amendment Report the payments on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. Online tax amendment For more information on pensions and annuities, see Publication 575, Pension and Annuity Income. Online tax amendment Retirement and profit-sharing plans. Online tax amendment   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. Online tax amendment The payments must be reported as a pension or annuity. Online tax amendment Accrued leave payment. Online tax amendment   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. Online tax amendment The payment is not a disability payment. Online tax amendment Include it in your income in the tax year you receive it. Online tax amendment See Publication 525, Taxable and Nontaxable Income, for more information. Online tax amendment Military and Government Disability Pensions Generally, you must report disability pensions as income, but do not include certain military and government disability pensions. Online tax amendment For information about military and government disability pensions, see Publication 525. Online tax amendment VA disability benefits. Online tax amendment   Do not include disability benefits you receive from the Department of Veterans Affairs (VA) in your gross income. Online tax amendment If you are a military retiree and do not receive your disability benefits from the VA, see Publication 525 for more information. Online tax amendment   Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the VA. Online tax amendment These include: Education, training, and subsistence allowances, Disability compensation and pension payments for disabilities paid either to veterans or their families, Grants for homes designed for wheelchair living, Grants for motor vehicles for veterans who lost their sight or the use of their limbs, Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death, Interest on insurance dividends left on deposit with the VA, Benefits under a dependent-care assistance program, The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001, or Payments made under the VA's compensated work therapy program. Online tax amendment Other Payments You may receive other payments that are related to your disability. Online tax amendment The following payments are not taxable. Online tax amendment Benefit payments from a public welfare fund, such as payments due to blindness. Online tax amendment Workers' compensation for an occupational sickness or injury if paid under a workers' compensation act or similar law. Online tax amendment Compensatory (but not punitive) damages for physical injury or physical sickness. Online tax amendment Disability benefits under a “no-fault” car insurance policy for loss of income or earning capacity as a result of injuries. Online tax amendment Compensation for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement. Online tax amendment Long-Term Care Insurance Long-term care insurance contracts generally are treated as accident and health insurance contracts. Online tax amendment Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. Online tax amendment More detailed information can be found in Publication 525. Online tax amendment Accelerated Death Benefits You can exclude from income accelerated death benefits you receive on the life of an insured individual if certain requirements are met. Online tax amendment Accelerated death benefits are amounts received under a life insurance contract before the death of the insured. Online tax amendment These benefits also include amounts received on the sale or assignment of the contract to a viatical settlement provider. Online tax amendment This exclusion applies only if the insured was a terminally ill individual or a chronically ill individual. Online tax amendment For more information, see Publication 525. Online tax amendment Itemized Deductions If you file Form 1040, you generally can either claim the standard deduction or itemize your deductions. Online tax amendment You must use Schedule A (Form 1040) to itemize your deductions. Online tax amendment See your form instructions for information on the standard deduction and the deductions you can itemize. Online tax amendment The following discussions highlight some itemized deductions that are of particular interest to persons with disabilities. Online tax amendment Medical Expenses When figuring your deduction for medical expenses, you can generally include medical and dental expenses you pay for yourself, your spouse, and your dependents. Online tax amendment Medical expenses are the cost of diagnosis, cure, mitigation, treatment, or prevention of disease and the costs for treatments affecting any part or function of the body. Online tax amendment They include the costs of equipment, supplies, diagnostic devices, and transportation for needed medical care and payments for medical insurance. Online tax amendment You can deduct only the amount of your medical and dental expenses that is more than 10% (7. Online tax amendment 5% if either you or your spouse was born before January 2, 1949) of your adjusted gross income shown on Form 1040, line 38. Online tax amendment The following list highlights some of the medical expenses you can include in figuring your medical expense deduction. Online tax amendment For more detailed information, see Publication 502, Medical and Dental Expenses (Including the Health Coverage Tax Credit). Online tax amendment Artificial limbs, contact lenses, eyeglasses, and hearing aids. Online tax amendment The part of the cost of Braille books and magazines that is more than the price of regular printed editions. Online tax amendment Cost and repair of special telephone equipment for hearing-impaired persons. Online tax amendment Cost and maintenance of a wheelchair or a three-wheel motor vehicle commercially known as an “autoette. Online tax amendment ” Cost and care of a guide dog or other animal aiding a person with a physical disability. Online tax amendment Costs for a school that furnishes special education if a principal reason for using the school is its resources for relieving a mental or physical disability. Online tax amendment This includes the cost of teaching Braille and lip reading and the cost of remedial language training to correct a condition caused by a birth defect. Online tax amendment Premiums for qualified long-term care insurance, up to certain amounts. Online tax amendment Improvements to a home that do not increase its value if the main purpose is medical care. Online tax amendment An example is constructing entrance or exit ramps. Online tax amendment Improvements that increase a home's value, if the main purpose is medical care, may be partly included as a medical expense. Online tax amendment See Publication 502 for more information. Online tax amendment Impairment-Related Work Expenses If you are disabled, you can take a business deduction for expenses that are necessary for you to be able to work. Online tax amendment If you take a business deduction for these impairment-related work expenses, they are not subject to the 10% (7. Online tax amendment 5% if you or your spouse is age 65 or older) limit that applies to medical expenses. Online tax amendment You are disabled if you have: A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or A physical or mental impairment (including, but not limited to, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working. Online tax amendment Impairment-related expenses defined. Online tax amendment   Impairment-related expenses are those ordinary and necessary business expenses that are: Necessary for you to do your work satisfactorily, For goods and services not required or used, other than incidentally, in your personal activities, and Not specifically covered under other income tax laws. Online tax amendment Publication 502 contains more detailed information. Online tax amendment Tax Credits This discussion highlights three tax credits that may be of interest to people with disabilities and those who care for people with disabilities. Online tax amendment Child and Dependent Care Credit If you pay someone to care for either your dependent under age 13 or your spouse or dependent who is not able to care for himself or herself, you may be able to get a credit of up to 35% of your expenses. Online tax amendment To qualify, you must pay these expenses so you can work or look for work. Online tax amendment The care must be provided for: Your qualifying child who is your dependent and who was under age 13 when the care was provided, Your spouse who was not physically or mentally able to care for himself or herself and lived with you for more than half the year, or A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year, and either: Was your dependent, or Would have been your dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Online tax amendment You can claim the credit on Form 1040 or 1040A. Online tax amendment You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. Online tax amendment You figure the credit on Form 2441. Online tax amendment For more information, see the instructions for Form 1040, line 48, or Form 1040A, line 29. Online tax amendment Publication 503, Child and Dependent Care Expenses, contains more detailed information. Online tax amendment Credit for the Elderly or the Disabled You may be able to claim this credit if you are a U. Online tax amendment S. Online tax amendment citizen or a resident alien and either of the following apply. Online tax amendment You were 65 or older at the end of 2013, You were under 65 at the end of 2013, and retired on permanent or total disability. Online tax amendment You can claim the credit on Form 1040 or 1040A. Online tax amendment You figure the credit on Schedule R. Online tax amendment For more information, see the instructions for Form 1040, line 53, or Form 1040A, line 30. Online tax amendment Publication 524, Credit for the Elderly or the Disabled, contains more detailed information. Online tax amendment Earned Income Credit This credit is based on the amount of your earned income. Online tax amendment You can get the credit if your adjusted gross income for 2013 is less than: $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, or $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children. Online tax amendment To figure the credit, use the worksheet in the instructions for Form 1040, 1040A, or 1040EZ. Online tax amendment If you have a qualifying child, also complete Schedule EIC, Earned Income Credit, and attach it to your Form 1040 or 1040A. Online tax amendment You cannot use Form 1040EZ if you have a qualifying child. Online tax amendment Qualifying child. Online tax amendment   To be a qualifying child, your child must be younger than you (or your spouse if married filing jointly) and under age 19 or a full-time student under age 24 at the end of 2013, or permanently and totally disabled at any time during 2013, regardless of age. Online tax amendment Earned income. Online tax amendment   If you are retired on disability, benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Online tax amendment However, payments you received from a disability insurance policy that you paid the premiums for are not earned income. Online tax amendment More information. Online tax amendment   For more information, including all the requirements to claim the earned income credit, see the instructions for Form 1040, line 64a; Form 1040A, line 38a; or Form 1040EZ, line 8a. Online tax amendment Publication 596, Earned Income Credit (EIC), contains more detailed information. Online tax amendment Household Employers If you pay someone to work in your home, such as a babysitter or housekeeper, you may be a household employer who has to pay employment taxes. Online tax amendment A person you hire through an agency is not your employee if the agency controls what work is done and how it is done. Online tax amendment This control could include setting the fee, requiring regular reports, and providing rules of conduct and appearance. Online tax amendment In this case you do not have to pay employment taxes on the amount you pay. Online tax amendment But if you control what work is done and how it is done, the worker is your employee. Online tax amendment If you possess the right to discharge a worker, that worker is generally considered to be your employee. Online tax amendment If a worker is your employee, it does not matter that you hired the worker through an agency or from a list provided by an agency. Online tax amendment To find out if you have to pay employment taxes, see Publication 926, Household Employer's Tax Guide For Wages Paid in 2013. Online tax amendment Business Tax Incentives If you own or operate a business, or you are looking for work, you should be aware of the following tax incentives for businesses to help persons with disabilities. Online tax amendment Deduction for costs of removing barriers to the disabled and the elderly—This is a deduction a business can take for making a facility or public transportation vehicle more accessible to and usable by persons who are disabled or elderly. Online tax amendment For more information, see chapter 7 of Publication 535, Business Expenses. Online tax amendment Disabled access credit—This is a nonrefundable tax credit for an eligible small business that pays or incurs expenses to provide access to persons with disabilities. Online tax amendment The expenses must be to enable the eligible small business to comply with the Americans With Disabilities Act of 1990. Online tax amendment See Form 8826, Disabled Access Credit, for more information. Online tax amendment Work opportunity credit—This credit provides businesses with an incentive to hire individuals from targeted groups that have a particularly high unemployment rate or other special employment needs. Online tax amendment One targeted group consists of vocational rehabilitation referrals. Online tax amendment These are individuals who have a physical or mental disability that results in a substantial handicap to employment. Online tax amendment See Form 5884, Work Opportunity Credit. Online tax amendment How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. Online tax amendment 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. Online tax amendment Free help with your tax return. Online tax amendment   Free help in preparing your return is available nationwide from IRS-certified volunteers. Online tax amendment The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Online tax amendment The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Online tax amendment 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. Online tax amendment Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Online tax amendment To find the nearest VITA or TCE site, visit IRS. Online tax amendment gov or call 1-800-906-9887. Online tax amendment   As part of the TCE program, AARP offers the Tax-Aide counseling program. Online tax amendment To find the nearest AARP Tax-Aide site, visit AARP's website at www. Online tax amendment aarp. Online tax amendment org/money/taxaide or call 1-888-227-7669. Online tax amendment   For more information on these programs, go to IRS. Online tax amendment gov and enter “VITA” in the search box. Online tax amendment Internet. Online tax amendment IRS. Online tax amendment gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Online tax amendment Apply for an Employer Identification Number (EIN). Online tax amendment Go to IRS. Online tax amendment gov and enter Apply for an EIN in the search box. Online tax amendment Request an Electronic Filing PIN by going to IRS. Online tax amendment gov and entering Electronic Filing PIN in the search box. Online tax amendment Check the status of your 2013 refund with Where's My Refund? Go to IRS. Online tax amendment 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. Online tax amendment 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. Online tax amendment Check the status of your amended return. Online tax amendment Go to IRS. Online tax amendment gov and enter Where's My Amended Return in the search box. Online tax amendment Download forms, instructions, and publications, including some accessible versions. Online tax amendment Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Online tax amendment gov or IRS2Go. Online tax amendment Tax return and tax account transcripts are generally available for the current year and past three years. Online tax amendment Figure your income tax withholding with the IRS Withholding Calculator on IRS. Online tax amendment gov. Online tax amendment 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. Online tax amendment Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Online tax amendment gov. Online tax amendment Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Online tax amendment gov or IRS2Go. Online tax amendment Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Online tax amendment An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Online tax amendment Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Online tax amendment If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Online tax amendment Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Online tax amendment Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Online tax amendment gov. Online tax amendment 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. Online tax amendment The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Online tax amendment Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Online tax amendment AARP offers the Tax-Aide counseling program as part of the TCE program. Online tax amendment Visit AARP's website to find the nearest Tax-Aide location. Online tax amendment Research your tax questions. Online tax amendment Search publications and instructions by topic or keyword. Online tax amendment Read the Internal Revenue Code, regulations, or other official guidance. Online tax amendment Read Internal Revenue Bulletins. Online tax amendment Sign up to receive local and national tax news by email. Online tax amendment Phone. Online tax amendment You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Online tax amendment Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Online tax amendment 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. Online tax amendment Call to locate the nearest volunteer help site, 1-800-906-9887. Online tax amendment 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. Online tax amendment The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Online tax amendment Most VITA and TCE sites offer free electronic filing. Online tax amendment Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Online tax amendment Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Online tax amendment Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Online tax amendment The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Online tax amendment 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. Online tax amendment 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. Online tax amendment Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Online tax amendment Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Online tax amendment Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Online tax amendment 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). Online tax amendment You should receive your order within 10 business days. Online tax amendment Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Online tax amendment Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Online tax amendment Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Online tax amendment Call to ask tax questions, 1-800-829-1040. Online tax amendment Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Online tax amendment The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Online tax amendment These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Online tax amendment gsa. Online tax amendment gov/fedrelay. Online tax amendment Walk-in. Online tax amendment You can find a selection of forms, publications and services — in-person, face-to-face. Online tax amendment Products. Online tax amendment You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Online tax amendment Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Online tax amendment Services. Online tax amendment You can walk in to your local TAC most business days for personal, face-to-face tax help. Online tax amendment An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Online tax amendment 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. Online tax amendment No appointment is necessary—just walk in. Online tax amendment Before visiting, check www. Online tax amendment irs. Online tax amendment gov/localcontacts for hours of operation and services provided. Online tax amendment Mail. Online tax amendment You can send your order for forms, instructions, and publications to the address below. Online tax amendment You should receive a response within 10 business days after your request is received. Online tax amendment  Internal Revenue Service 1201 N. Online tax amendment Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Online tax amendment   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Online tax amendment Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Online tax amendment What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Online tax amendment 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. Online tax amendment You face (or your business is facing) an immediate threat of adverse action. Online tax amendment You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Online tax amendment   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. Online tax amendment Here's why we can help: TAS is an independent organization within the IRS. Online tax amendment Our advocates know how to work with the IRS. Online tax amendment Our services are free and tailored to meet your needs. Online tax amendment We have offices in every state, the District of Columbia, and Puerto Rico. Online tax amendment 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. Online tax amendment irs. Online tax amendment gov/advocate, or call us toll-free at 1-877-777-4778. Online tax amendment How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Online tax amendment If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Online tax amendment irs. Online tax amendment gov/sams. Online tax amendment Low Income Taxpayer Clinics. Online tax amendment   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. Online tax amendment Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Online tax amendment Visit www. Online tax amendment TaxpayerAdvocate. Online tax amendment irs. Online tax amendment gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Online tax amendment Prev  Up  Next   Home   More Online Publications
Español

The only proven way to help you lose weight is to burn more calories than you consume. If you need to lose weight, talk with your doctor about the options that are best for you. Most health experts agree that the best and safest way to lose weight is to modestly cut calories, eat a balanced diet, and exercise. People usually do best when they reduce their usual calorie intake or increase the calories they use by 500-1,000 per day. This allows you to eat enough for good nutrition yet lose about one to two pounds a week. Steer clear of harmful tactics such as smoking, fasting, purging, or abusing laxatives.

Avoid fad diets and other weight loss programs that promise fast results or limit your food choices. Ask yourself the following:

  • How does the product or service work? Does the program emphasize diet, exercise or a combination of both?
  • How much will it cost? Ask for an itemized list that includes membership fees and fees for weekly visits. Ask if there are extra fees for diagnostic tests, food, dietary supplements, or other products in the program.
  • How well does it work? Ask to see the studies that back up success claims. Look for how many people completed the program, how much weight they lost, and how long they kept the weight off.
  • What are the risks? Get details about possible side effects. Check with your doctor before you take prescriptions, over-the-counter weight loss drugs, or dietary supplements. Diets that require drastic food restriction should be under the supervision of a physician.
  • How many calories will you eat each day? For diets under 1,500 calories, be sure to check with your doctor to make sure you get all your nutrients.
  • What are the staff qualifications? Ask about their training and experience.
  • What type of attention will you receive? Will you get individual counseling or group support? How often?

Complaints concerning fraudulent weight loss claims should be directed to the Federal Trade Commission.

Cancelling Gym Memberships

Signing up for a gym membership can be a great step, but it is important to know what commitments you are making before you sign on the dotted line. For example:

  • Read the contract. Pay attention to cancellation policies, including whether there is an "exit fee" for breaking the agreement.
  • Know your state's laws. Many states have consumer protections that offer a "cooling-off period" during which you can back out of contracts, including gym memberships. However, these laws vary from state to state.
  • Know your gym's rules. Some gyms grant waivers if you are temporarily incapacitated, out of the area for an extended period, or move a certain distance away. These rules vary from gym to gym.
  • Cancel in writing
  • Always put your intention to cancel in writing, even if you are advised that is not necessary, and keep a copy of your letter. Make sure you follow the advance notice requirements in your contract.

The Online Tax Amendment

Online tax amendment 3. Online tax amendment   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. Online tax amendment They are the American opportunity credit and the lifetime learning credit. Online tax amendment This chapter discusses the lifetime learning credit. Online tax amendment The American opportunity credit is discussed in chapter 2, The American Opportunity Credit . Online tax amendment 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. Online tax amendment What is the tax benefit of the lifetime learning credit. Online tax amendment   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. Online tax amendment There is no limit on the number of years the lifetime learning credit can be claimed for each student. Online tax amendment   A tax credit reduces the amount of income tax you may have to pay. Online tax amendment Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. Online tax amendment The lifetime learning credit is a nonrefundable credit. Online tax amendment 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. Online tax amendment   Your allowable lifetime learning credit may be limited by the amount of your income and the amount of your tax. Online tax amendment Can you claim more than one education credit this year. Online tax amendment   For each student, you can elect for any year only one of the credits. Online tax amendment 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. Online tax amendment   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. Online tax amendment   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. Online tax amendment 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. Online tax amendment Differences between the American opportunity and lifetime learning credits. Online tax amendment   There are several differences between these two credits. Online tax amendment 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. Online tax amendment 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. Online tax amendment 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. Online tax amendment Overview of the lifetime learning credit. Online tax amendment   See Table 3-1, Overview of the Lifetime Learning Credit for the basics of the lifetime learning credit. Online tax amendment The details are discussed in this chapter. Online tax amendment 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. Online tax amendment Who Can Claim the Credit Generally, you can claim the lifetime learning credit if all three of the following requirements are met. Online tax amendment You pay qualified education expenses of higher education. Online tax amendment You pay the education expenses for an eligible student. Online tax amendment The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Online tax amendment Table 3-1. Online tax amendment 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. Online tax amendment 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. Online tax amendment “Qualified education expenses” are defined later under Qualified Education Expenses . Online tax amendment “Eligible students” are defined later under Who Is an Eligible Student . Online tax amendment A dependent for whom you claim an exemption is defined later under Who Can Claim a Dependent's Expenses . Online tax amendment 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. Online tax amendment Who Cannot Claim the Credit You cannot claim the lifetime learning credit for 2013 if any of the following apply. Online tax amendment Your filing status is married filing separately. Online tax amendment You are listed as a dependent on another person's tax return (such as your parents'). Online tax amendment See Who Can Claim a Dependent's Expenses , later. Online tax amendment Your modified adjusted gross income (MAGI) is $63,000 or more ($127,000 or more in the case of a joint return). Online tax amendment MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit . Online tax amendment 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. Online tax amendment More information on nonresident aliens can be found in Publication 519. Online tax amendment You claim the American Opportunity Credit (see chapter 2) or a Tuition and Fees Deduction (see chapter 6) for the same student in 2013. Online tax amendment 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. Online tax amendment 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. Online tax amendment 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. Online tax amendment Academic period. Online tax amendment   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. Online tax amendment 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. Online tax amendment Paid with borrowed funds. Online tax amendment   You can claim a lifetime learning credit for qualified education expenses paid with the proceeds of a loan. Online tax amendment 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. Online tax amendment Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. Online tax amendment Student withdraws from class(es). Online tax amendment   You can claim a lifetime learning credit for qualified education expenses not refunded when a student withdraws. Online tax amendment 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. Online tax amendment The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills. Online tax amendment Eligible educational institution. Online tax amendment   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. Online tax amendment S. Online tax amendment Department of Education. Online tax amendment It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Online tax amendment The educational institution should be able to tell you if it is an eligible educational institution. Online tax amendment   Certain educational institutions located outside the United States also participate in the U. Online tax amendment S. Online tax amendment Department of Education's Federal Student Aid (FSA) programs. Online tax amendment Related expenses. Online tax amendment   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. Online tax amendment Prepaid expenses. Online tax amendment   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. Online tax amendment See Academic period , earlier. Online tax amendment 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). Online tax amendment 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). Online tax amendment In the following examples, assume that each student is an eligible student at an eligible educational institution. Online tax amendment Example 1. Online tax amendment   Jackson is a sophomore in University V's degree program in dentistry. Online tax amendment 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. Online tax amendment Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified expense. Online tax amendment Example 2. Online tax amendment   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. Online tax amendment 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. Online tax amendment Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Online tax amendment Donna bought hers at College W's bookstore. Online tax amendment 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. Online tax amendment Example 3. Online tax amendment   When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Online tax amendment 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. Online tax amendment No portion of the fee covers personal expenses. Online tax amendment Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. Online tax amendment Therefore, it is a qualified expense. Online tax amendment 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. Online tax amendment Claim a lifetime learning credit in the same year that you are claiming a tuition and fees deduction for the same student. Online tax amendment Claim a lifetime learning credit and an American opportunity credit based on the same qualified education expenses. Online tax amendment 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). Online tax amendment 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. Online tax amendment 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. Online tax amendment See Adjustments to Qualified Education Expenses, next. Online tax amendment This image is too large to be displayed in the current screen. Online tax amendment Please click the link to view the image. Online tax amendment 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. Online tax amendment The result is the amount of adjusted qualified education expenses for each student. Online tax amendment Tax-free educational assistance. Online tax amendment   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. Online tax amendment See Academic period , earlier. Online tax amendment   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Online tax amendment 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). Online tax amendment   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. Online tax amendment 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. Online tax amendment   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. Online tax amendment Generally, any scholarship or fellowship is treated as tax free. Online tax amendment 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. Online tax amendment 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. Online tax amendment 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. Online tax amendment 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. Online tax amendment For examples, see Coordination with Pell grants and other scholarships, later. Online tax amendment Refunds. Online tax amendment   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. Online tax amendment Some tax-free educational assistance received after 2013 may be treated as a refund. Online tax amendment See Tax-free educational assistance , earlier. Online tax amendment Refunds received in 2013. Online tax amendment   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. Online tax amendment Refunds received after 2013 but before your income tax return is filed. Online tax amendment   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. Online tax amendment Refunds received after 2013 and after your income tax return is filed. Online tax amendment   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. Online tax amendment See Credit recapture, next. Online tax amendment Credit recapture. Online tax amendment    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. Online tax amendment 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. Online tax amendment 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). Online tax amendment Include that amount as an additional tax for the year the refund or tax-free assistance was received. Online tax amendment Example. Online tax amendment   You pay $9,300 in tuition and fees in December 2013, and your child began college in January 2014. Online tax amendment You filed your 2013 tax return on February 14, 2014, and claimed a lifetime learning credit of $1,860. Online tax amendment You claimed no other tax credits. Online tax amendment After you filed your return, your child withdrew from two courses and you received a refund of $2,900. Online tax amendment You must refigure your 2013 lifetime learning credit using $6,400 of qualified education expenses instead of $9,300. Online tax amendment The refigured credit is $1,280 and your tax liability increased by $580. Online tax amendment See instructions for your 2014 income tax return to determine where to include this tax. Online tax amendment 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. Online tax amendment Amounts that do not reduce qualified education expenses. Online tax amendment   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. Online tax amendment   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. Online tax amendment 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. Online tax amendment The use of the money is not restricted. Online tax amendment For examples, see Adjustments to Qualified Education Expenses in chapter 2, American Opportunity Credit. Online tax amendment Coordination with Pell grants and other scholarships. Online tax amendment   In some cases, you may be able to reduce your tax liability by including scholarships in income. Online tax amendment 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. Online tax amendment The scholarship must be one that may (by its terms) be applied to expenses (such as room and board) other than qualified education expenses. Online tax amendment Example 1—No scholarship. Online tax amendment Judy Green, who is unmarried, is taking courses at a public community college to be recertified to teach in public schools. Online tax amendment Her AGI and her MAGI, for purposes of the credit, are $27,000. Online tax amendment 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. Online tax amendment She claims no credits other than the lifetime learning credit. Online tax amendment 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. Online tax amendment Judy and the college meet all requirements for the lifetime learning tax credit. Online tax amendment She can use all of the $4,500 tuition she paid in 2013 when figuring her 2013 lifetime learning credit. Online tax amendment She claims a $900 lifetime learning credit and her tax after credits is $1,256. Online tax amendment Example 2—Scholarship excluded from income. Online tax amendment The facts are the same as in Example 1—No scholarship, except that Judy was awarded a $1,500 scholarship. Online tax amendment Under the terms of her scholarship, it may be used to pay any educational expenses, including room and board. Online tax amendment 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. Online tax amendment Only $3,000 of the $4,500 tuition she paid in 2013 could be used when figuring her 2013 lifetime learning credit. Online tax amendment Her lifetime learning credit would be reduced to $600 and her tax after credits would be $1,556. Online tax amendment Example 3—Scholarship included in income. Online tax amendment The facts are the same as in Example 2—Scholarship excluded from income. Online tax amendment 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. Online tax amendment Judy's AGI will increase to $28,500, her taxable income would be $18,750, and her tax before credits would be $2,381. Online tax amendment She would be able to use the $4,500 of adjusted qualified education expenses to figure her credit. Online tax amendment Judy could claim a $900 lifetime learning credit and her tax after credits would be $1,481. Online tax amendment 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. Online tax amendment This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Online tax amendment Sports, games, hobbies, and noncredit courses. Online tax amendment   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. Online tax amendment 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. Online tax amendment Comprehensive or bundled fees. Online tax amendment   Some eligible educational institutions combine all of their fees for an academic period into one amount. Online tax amendment 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. Online tax amendment 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. Online tax amendment See Figuring the Credit , later, for more information about Form 1098-T. Online tax amendment 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). Online tax amendment 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. Online tax amendment For you to claim a lifetime learning credit for your dependent's expenses, you must also claim an exemption for your dependent. Online tax amendment You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Online tax amendment IF you. Online tax amendment . Online tax amendment . Online tax amendment THEN only. Online tax amendment . Online tax amendment . Online tax amendment 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. Online tax amendment The dependent cannot claim the credit. Online tax amendment 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. Online tax amendment You cannot claim the credit based on this dependent's expenses. Online tax amendment Expenses paid by dependent. Online tax amendment   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. Online tax amendment Include these expenses when figuring the amount of your lifetime learning credit. Online tax amendment    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. Online tax amendment Expenses paid by you. Online tax amendment   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. Online tax amendment 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. Online tax amendment Expenses paid by others. Online tax amendment   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. Online tax amendment In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Online tax amendment If you claim an exemption on your tax return for the student, you are considered to have paid the expenses. Online tax amendment Example. Online tax amendment In 2013, Ms. Online tax amendment Allen makes a payment directly to an eligible educational institution for her grandson Todd's qualified education expenses. Online tax amendment 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. Online tax amendment 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. Online tax amendment 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. Online tax amendment If anyone else claims an exemption for Todd, Todd cannot claim a lifetime learning credit. Online tax amendment Tuition reduction. Online tax amendment   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. Online tax amendment 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. Online tax amendment For more information on tuition reductions, see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Online tax amendment 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. Online tax amendment The maximum amount of lifetime learning credit you can claim for 2013 is $2,000 (20% × $10,000). Online tax amendment However, that amount may be reduced based on your MAGI. Online tax amendment See Effect of the Amount of Your Income on the Amount of Your Credit , later. Online tax amendment Example. Online tax amendment Bruce and Toni Harper are married and file a joint tax return. Online tax amendment For 2013, their MAGI is $75,000. Online tax amendment Toni is attending a local college (an eligible educational institution) to earn credits toward a degree in nursing. Online tax amendment She already has a bachelor's degree in history and wants to become a nurse. Online tax amendment In August 2013, Toni paid $5,000 of qualified education expenses for her fall 2013 semester. Online tax amendment Bruce and Toni can claim a $1,000 (20% × $5,000) lifetime learning credit on their 2013 joint tax return. Online tax amendment Form 1098-T. Online tax amendment   To help you figure your lifetime learning credit, the student should receive Form 1098-T. Online tax amendment 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. Online tax amendment An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Online tax amendment However, the amounts in boxes 1 and 2 of Form 1098-T might be different from what you paid. Online tax amendment When figuring the credit, use only the amounts you paid or are deemed to have paid in 2013 for qualified education expenses. Online tax amendment   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. Online tax amendment    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. Online tax amendment 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). Online tax amendment 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). Online tax amendment Modified adjusted gross income (MAGI). Online tax amendment   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. Online tax amendment MAGI when using Form 1040A. Online tax amendment   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. Online tax amendment MAGI when using Form 1040. Online tax amendment   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. Online tax amendment You can use Worksheet 3-1 to figure your MAGI. Online tax amendment Worksheet 3-1. Online tax amendment MAGI for the Lifetime Learning Credit 1. Online tax amendment Enter your adjusted gross income  (Form 1040, line 38)   1. Online tax amendment   2. Online tax amendment Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. Online tax amendment       3. Online tax amendment Enter your foreign housing deduction (Form 2555, line 50)   3. Online tax amendment       4. Online tax amendment Enter the amount of income from Puerto Rico you are excluding   4. Online tax amendment       5. Online tax amendment Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. Online tax amendment       6. Online tax amendment Add the amounts on lines 2, 3, 4, and 5   6. Online tax amendment   7. Online tax amendment Add the amounts on lines 1 and 6. Online tax amendment  This is your modified adjusted  gross income. Online tax amendment Enter this amount  on Form 8863, line 14   7. Online tax amendment   Phaseout. Online tax amendment   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. Online tax amendment The same method is shown in the following example. Online tax amendment Example. Online tax amendment You are filing a joint return with a MAGI of $112,000. Online tax amendment In 2013, you paid $6,600 of qualified education expenses. Online tax amendment You figure the tentative lifetime learning credit (20% of the first $10,000 of qualified education expenses you paid for all eligible students). Online tax amendment The result is a $1,320 (20% x $6,600) tentative credit. Online tax amendment 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. Online tax amendment The numerator of the fraction is $127,000 (the upper limit for those filing a joint return) minus your MAGI. Online tax amendment The denominator is $20,000, the range of incomes for the phaseout ($107,000 to $127,000). Online tax amendment The result is the amount of your phased out (reduced) lifetime learning credit ($990). Online tax amendment   $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. Online tax amendment Enter the credit on Form 1040, line 49, or Form 1040A, line 31. Online tax amendment Note. Online tax amendment 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. Online tax amendment Prev  Up  Next   Home   More Online Publications