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

Printable 1040ez Form 2011

Military Pay Taxes1040zFree Income Tax HelpFiling An Amended Tax ReturnFree Online Tax Software 2010How To File School TaxesAmend 2013 Tax ReturnTaxact 20121040x 2008Need 2010 TaxesHow To File State Taxes For Free OnlineFree State Tax Filing 20121040nr InstructionsIrs E File 2012Free Federal And State Efile 2013Amended Tax Return FormSelf Employment Tax FilingHow Can I File My 2012 Taxes LateCan I File My 2012 Taxes Online NowHow To Amend A ReturnMilitary Tax QuestionsHow Do I File A 2010 Tax Return1040ez Form 2013Tax Forms Download Ez 1040H & R Block MilitaryFile State Tax Only1040 OnlineTurbotax 2011 Free Edition2011 1040aIrs Form 2011State Of Louisiana Amended Return Form 1040x2011 Tax Return OnlineFree Online State Tax PreparationWww H&r Block ComHow To File A 2011 Tax Return Late1040nr FreeState Tax ExtensionWhere Can I File My 2011 TaxesFile State Taxes Only Online Free2011 Online Tax Software

Printable 1040ez Form 2011

Printable 1040ez form 2011 6. Printable 1040ez form 2011   Tuition and Fees Deduction Table of Contents IntroductionWhat is the tax benefit of the tuition and fees deduction. Printable 1040ez form 2011 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). Printable 1040ez form 2011 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. Printable 1040ez form 2011 The qualified expenses must be for higher education, as explained later under Qualified Education Expenses . Printable 1040ez form 2011 What is the tax benefit of the tuition and fees deduction. Printable 1040ez form 2011   The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Printable 1040ez form 2011   This deduction is taken as an adjustment to income. Printable 1040ez form 2011 This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). Printable 1040ez form 2011 This deduction may be beneficial to you if you do not qualify for the American opportunity or lifetime learning credits. Printable 1040ez form 2011 You can choose the education benefit that will give you the lowest tax. Printable 1040ez form 2011 You may want to compare the tuition and fees deduction to the education credits. Printable 1040ez form 2011 See chapter 2, American Opportunity Credit and chapter 3, Lifetime Learning Credit for more information on the education credits. Printable 1040ez form 2011 Table 6-1. Printable 1040ez form 2011 Tuition and Fees Deduction at a Glance summarizes the features of the tuition and fees deduction. Printable 1040ez form 2011 Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Printable 1040ez form 2011 Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Printable 1040ez form 2011 You pay qualified education expenses of higher education. Printable 1040ez form 2011 You pay the education expenses for an eligible student. Printable 1040ez form 2011 The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return. Printable 1040ez form 2011 The term “qualified education expenses” is defined later under Qualified Education Expenses . Printable 1040ez form 2011 “Eligible student” is defined later under Who Is an Eligible Student . Printable 1040ez form 2011 For more information on claiming the deduction for a dependent, see Who Can Claim a Dependent's Expenses , later. Printable 1040ez form 2011 Table 6-1. Printable 1040ez form 2011 Tuition and Fees Deduction at a Glance Do not rely on this table alone. Printable 1040ez form 2011 Refer to the text for complete details. Printable 1040ez form 2011 Question Answer What is the maximum benefit? You can reduce your income subject to tax by up to $4,000. Printable 1040ez form 2011 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). Printable 1040ez form 2011 Where is the deduction taken? As an adjustment to income on  Form 1040 or Form 1040A. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Printable 1040ez form 2011 Your filing status is married filing separately. Printable 1040ez form 2011 Another person can claim an exemption for you as a dependent on his or her tax return. Printable 1040ez form 2011 You cannot take the deduction even if the other person does not actually claim that exemption. Printable 1040ez form 2011 Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Printable 1040ez form 2011 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. Printable 1040ez form 2011 More information on nonresident aliens can be found in Publication 519. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Academic period. Printable 1040ez form 2011   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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Paid with borrowed funds. Printable 1040ez form 2011   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. Printable 1040ez form 2011 Student withdraws from class(es). Printable 1040ez form 2011   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Eligible educational institution. Printable 1040ez form 2011   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. Printable 1040ez form 2011 S. Printable 1040ez form 2011 Department of Education. Printable 1040ez form 2011 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Printable 1040ez form 2011 The educational institution should be able to tell you if it is an eligible educational institution. Printable 1040ez form 2011   Certain educational institutions located outside the United States also participate in the U. Printable 1040ez form 2011 S. Printable 1040ez form 2011 Department of Education's Federal Student Aid (FSA) programs. Printable 1040ez form 2011 Related expenses. Printable 1040ez form 2011   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. Printable 1040ez form 2011 Prepaid expenses. Printable 1040ez form 2011   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. Printable 1040ez form 2011 See Academic period , earlier. Printable 1040ez form 2011 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). Printable 1040ez form 2011 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). Printable 1040ez form 2011 In the following examples, assume that each student is an eligible student and each college or university an eligible educational institution. Printable 1040ez form 2011 Example 1. Printable 1040ez form 2011 Jackson is a sophomore in University V's degree program in dentistry. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Example 2. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Printable 1040ez form 2011 Donna bought hers at College W's bookstore. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Example 3. Printable 1040ez form 2011 When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Printable 1040ez form 2011 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. Printable 1040ez form 2011 No portion of the fee covers personal expenses. Printable 1040ez form 2011 Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. Printable 1040ez form 2011 Therefore, it is a qualified expense. Printable 1040ez form 2011 No Double Benefit Allowed You cannot do any of the following. Printable 1040ez form 2011 Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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). Printable 1040ez form 2011 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. Printable 1040ez form 2011 See Coordination With Tuition and Fees Deduction in chapter 8, Qualified Tuition Program, later. Printable 1040ez form 2011 Deduct qualified education expenses that have been paid with tax-free interest on U. Printable 1040ez form 2011 S. Printable 1040ez form 2011 savings bonds (Form 8815). Printable 1040ez form 2011 See Figuring the Tax-Free Amount in chapter 10, Education Savings Bond Program, later. Printable 1040ez form 2011 Deduct qualified education expenses that have been paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Printable 1040ez form 2011 See the following section on Adjustments to Qualified Education Expenses. Printable 1040ez form 2011 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. Printable 1040ez form 2011 The result is the amount of adjusted qualified education expenses for each student. Printable 1040ez form 2011 You must also reduce qualified education expenses by the other amounts referred to in No Double Benefit Allowed , earlier. Printable 1040ez form 2011 Tax-free educational assistance. Printable 1040ez form 2011   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. Printable 1040ez form 2011 See Academic period , earlier. Printable 1040ez form 2011   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Printable 1040ez form 2011 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). Printable 1040ez form 2011   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. Printable 1040ez form 2011 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. Printable 1040ez form 2011   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. Printable 1040ez form 2011 Generally, any scholarship or fellowship is treated as tax free. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 For details, see Adjustments to Qualified Education Expenses in chapters 2 and 3. Printable 1040ez form 2011 Refunds. Printable 1040ez form 2011   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. Printable 1040ez form 2011 Some tax-free educational assistance received after 2013 may be treated as a refund. Printable 1040ez form 2011 See Tax-free educational assistance , earlier. Printable 1040ez form 2011 Refunds received in 2013. Printable 1040ez form 2011   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. Printable 1040ez form 2011 Refunds received after 2013 but before your income tax return is filed. Printable 1040ez form 2011   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. Printable 1040ez form 2011 Refunds received after 2013 and after your income tax return is filed. Printable 1040ez form 2011   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. Printable 1040ez form 2011 See Credit recapture , later. Printable 1040ez form 2011 Coordination with Coverdell education savings accounts and qualified tuition programs. Printable 1040ez form 2011   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). Printable 1040ez form 2011 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. Printable 1040ez form 2011 Credit recapture. Printable 1040ez form 2011    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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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). Printable 1040ez form 2011 Include that amount as an additional tax for the year the refund or tax-free assistance was received. Printable 1040ez form 2011 Example. Printable 1040ez form 2011   You paid $3,500 of qualified education expenses in December 2013, and your child began college in January 2014. Printable 1040ez form 2011 You claimed $3,500 as the tuition and fees deduction on your 2013 income tax return. Printable 1040ez form 2011 The reduction reduced your taxable income by $3,500. Printable 1040ez form 2011 Also, you claimed no tax credits in 2013. Printable 1040ez form 2011 Your child withdrew from two classes and you received a refund of $2,000 in 2014 after you filed your 2013 tax return. Printable 1040ez form 2011 Refigure your 2013 tuition and fees deduction using $1,500 of qualified education expense instead of the $3,500. Printable 1040ez form 2011 The refigured tuition and fees deduction is $1,500. Printable 1040ez form 2011 Do not file an amended 2013 tax return to account for this adjustment. Printable 1040ez form 2011 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. Printable 1040ez form 2011 You cannot file Form 1040A for 2014. Printable 1040ez form 2011 Amounts that do not reduce qualified education expenses. Printable 1040ez form 2011   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. Printable 1040ez form 2011   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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 The use of the money is not restricted. Printable 1040ez form 2011 Example 1. Printable 1040ez form 2011 In 2013, Jackie paid $3,000 for tuition and $5,000 for room and board at University X. Printable 1040ez form 2011 The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. Printable 1040ez form 2011 To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. Printable 1040ez form 2011 The terms of the scholarship state that it can be used to pay any of Jackie's college expenses. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Jackie does not report any portion of the scholarship as income on her tax return. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Jackie is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship) in 2013. Printable 1040ez form 2011 Example 2. Printable 1040ez form 2011 The facts are the same as in Example 1, except that Jackie reports her entire scholarship as income on her tax return. Printable 1040ez form 2011 Because Jackie reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. Printable 1040ez form 2011 Jackie is treated as having paid $3,000 in qualified education expenses. Printable 1040ez form 2011 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. Printable 1040ez form 2011 This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Printable 1040ez form 2011 Sports, games, hobbies, and noncredit courses. Printable 1040ez form 2011   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. Printable 1040ez form 2011 However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Printable 1040ez form 2011 Comprehensive or bundled fees. Printable 1040ez form 2011   Some eligible educational institutions combine all of their fees for an academic period into one amount. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 See Figuring the Deduction , later, for more information about Form 1098-T. Printable 1040ez form 2011 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). Printable 1040ez form 2011 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. Printable 1040ez form 2011 For you to be able to deduct qualified education expenses for your dependent, you must claim an exemption for that individual. Printable 1040ez form 2011 You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Printable 1040ez form 2011 IF your dependent is an eligible student and you. Printable 1040ez form 2011 . Printable 1040ez form 2011 . Printable 1040ez form 2011 AND. Printable 1040ez form 2011 . Printable 1040ez form 2011 . Printable 1040ez form 2011 THEN. Printable 1040ez form 2011 . Printable 1040ez form 2011 . Printable 1040ez form 2011 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. Printable 1040ez form 2011 Your dependent cannot take a deduction. Printable 1040ez form 2011 claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Printable 1040ez form 2011 do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Printable 1040ez form 2011 do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Printable 1040ez form 2011 Expenses paid by dependent. Printable 1040ez form 2011   If your dependent pays qualified education expenses, no one can take a tuition and fees deduction for those expenses. Printable 1040ez form 2011 Neither you nor your dependent can deduct the expenses. Printable 1040ez form 2011 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. Printable 1040ez form 2011 This rule applies even if you do not claim an exemption for your dependent on your tax return. Printable 1040ez form 2011 Expenses paid by you. Printable 1040ez form 2011   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. Printable 1040ez form 2011 Expenses paid under divorce decree. Printable 1040ez form 2011   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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 Expenses paid by others. Printable 1040ez form 2011   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. Printable 1040ez form 2011 In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Printable 1040ez form 2011 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. Printable 1040ez form 2011 If the student is not a dependent, only the student can deduct payments made directly to the institution for his or her expenses. Printable 1040ez form 2011 If the student is your dependent, no one can deduct the payments. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 In 2013, Ms. Printable 1040ez form 2011 Baker makes a payment directly to an eligible educational institution for her grandson Dan's qualified education expenses. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 If someone else can claim an exemption for Dan, no one will be allowed a deduction for Ms. Printable 1040ez form 2011 Baker's payment. Printable 1040ez form 2011 Tuition reduction. Printable 1040ez form 2011   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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 For more information on tuition reductions, see Qualified Tuition Reduction , in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Printable 1040ez form 2011 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. Printable 1040ez form 2011 See Effect of the Amount of Your Income on the Amount of Your Deduction , later. Printable 1040ez form 2011 Form 1098-T. Printable 1040ez form 2011   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). Printable 1040ez form 2011 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. Printable 1040ez form 2011 An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Printable 1040ez form 2011 However, the amount in boxes 1 and 2 of Form 1098-T might be different than what you paid. Printable 1040ez form 2011 When figuring the deduction, use only the amounts you paid in 2013 for qualified education expenses. Printable 1040ez form 2011   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. Printable 1040ez form 2011    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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000 if you are married filing jointly). Printable 1040ez form 2011 Modified adjusted gross income (MAGI). Printable 1040ez form 2011   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. Printable 1040ez form 2011 However, as discussed below, there may be other modifications. Printable 1040ez form 2011 MAGI when using Form 1040A. Printable 1040ez form 2011   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). Printable 1040ez form 2011 MAGI when using Form 1040. Printable 1040ez form 2011   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. Printable 1040ez form 2011   Table 6-2 shows how the amount of your MAGI can affect your tuition and fees deduction. Printable 1040ez form 2011   You can use Worksheet 6-1. Printable 1040ez form 2011 MAGI for the Tuition and Fees Deduction , later, to figure your MAGI. Printable 1040ez form 2011 Table 6-2. Printable 1040ez form 2011 Effect of MAGI on Maximum Tuition and Fees Deduction IF your filing status is. Printable 1040ez form 2011 . Printable 1040ez form 2011 . Printable 1040ez form 2011 AND your MAGI is. Printable 1040ez form 2011 . Printable 1040ez form 2011 . Printable 1040ez form 2011 THEN your maximum tuition and fees deduction is. Printable 1040ez form 2011 . Printable 1040ez form 2011 . Printable 1040ez form 2011 single,  head of household, or qualifying widow(er) not more than $65,000 $4,000. Printable 1040ez form 2011 more than $65,000  but not more than $80,000 $2,000. Printable 1040ez form 2011 more than $80,000 $0. Printable 1040ez form 2011 married filing joint return not more than $130,000 $4,000. Printable 1040ez form 2011 more than $130,000 but not more than $160,000 $2,000. Printable 1040ez form 2011 more than $160,000 $0. Printable 1040ez form 2011 Claiming the Deduction You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A. Printable 1040ez form 2011 Enter the deduction on Form 1040, line 34, or Form 1040A, line 19. Printable 1040ez form 2011 A filled-in Form 8917 is shown at the end of this chapter. Printable 1040ez form 2011 Illustrated Example Tim Pfister, a single taxpayer, enrolled full-time at a local college to earn a degree in engineering. Printable 1040ez form 2011 This is the first year of his postsecondary education. Printable 1040ez form 2011 During 2013, he paid $3,600 for his qualified 2013 tuition expense. Printable 1040ez form 2011 Both he and the college meet all of the requirements for the tuition and fees deduction. Printable 1040ez form 2011 Tim's total income (Form 1040, line 22) and MAGI are $26,000. Printable 1040ez form 2011 He figures his deduction of $3,600 as shown on Form 8917, later. Printable 1040ez form 2011 Worksheet 6-1. Printable 1040ez form 2011 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. Printable 1040ez form 2011 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. Printable 1040ez form 2011 1. Printable 1040ez form 2011 Enter the amount from Form 1040, line 22   1. Printable 1040ez form 2011         2. Printable 1040ez form 2011 Enter the total from Form 1040, lines 23 through 33   2. Printable 1040ez form 2011               3. Printable 1040ez form 2011 Enter the total of any amounts entered on the dotted line next to Form 1040, line 36   3. Printable 1040ez form 2011               4. Printable 1040ez form 2011 Add lines 2 and 3   4. Printable 1040ez form 2011         5. Printable 1040ez form 2011 Subtract line 4 from line 1   5. Printable 1040ez form 2011         6. Printable 1040ez form 2011 Enter your foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   6. Printable 1040ez form 2011         7. Printable 1040ez form 2011 Enter your foreign housing deduction (Form 2555, line 50)   7. Printable 1040ez form 2011         8. Printable 1040ez form 2011 Enter the amount of income from Puerto Rico you are excluding   8. Printable 1040ez form 2011         9. Printable 1040ez form 2011 Enter the amount of income from American Samoa you are  excluding (Form 4563, line 15)   9. Printable 1040ez form 2011         10. Printable 1040ez form 2011 Add lines 5 through 9. Printable 1040ez form 2011 This is your modified adjusted gross income   10. Printable 1040ez form 2011     Note. Printable 1040ez form 2011 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. Printable 1040ez form 2011       This image is too large to be displayed in the current screen. Printable 1040ez form 2011 Please click the link to view the image. Printable 1040ez form 2011 Form 8917 for Tim Pfister Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Understanding Your CP74 Notice

You are re-certified for EITC. You don't have to fill out Form 8862, Information To Claim Earned Income Credit After Disallowance, in the future. You'll receive your EIC refund within 6 weeks as long as you don't owe other tax or debts we're required to collect.


What you need to do

  • You don’t need to take further action.

You may want to

  • Keep a copy of this notice for your records

Answers to Common Questions

What if I don't receive my refund within 6 weeks?
Call us for assistance at the toll-free telephone number listed in the top right corner of your notice, if you haven't received your refund within 6 weeks.


Tips for next year

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

Page Last Reviewed or Updated: 06-Mar-2014

How to get help

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

The Printable 1040ez Form 2011

Printable 1040ez form 2011 9. Printable 1040ez form 2011   Dispositions of Property Used in Farming Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Section 1231 Gains and LossesNonrecaptured section 1231 losses. Printable 1040ez form 2011 Depreciation RecaptureSection 1245 Property Section 1250 Property Installment Sale Other Dispositions Other GainsExceptions. Printable 1040ez form 2011 Amount to report as ordinary income. Printable 1040ez form 2011 Applicable percentage. Printable 1040ez form 2011 Amount to report as ordinary income. Printable 1040ez form 2011 Applicable percentage. Printable 1040ez form 2011 Introduction When you dispose of property used in your farm business, your taxable gain or loss is usually treated as ordinary income (which is taxed at the same rates as wages and interest income) or capital gain (which is generally taxed at lower rates) under the rules for section 1231 transactions. Printable 1040ez form 2011 When you dispose of depreciable property (section 1245 property or section 1250 property) at a gain, you may have to recognize all or part of the gain as ordinary income under the depreciation recapture rules. Printable 1040ez form 2011 Any gain remaining after applying the depreciation recapture rules is a section 1231 gain, which may be taxed as a capital gain. Printable 1040ez form 2011 Gains and losses from property used in farming are reported on Form 4797, Sales of Business Property. Printable 1040ez form 2011 Table 9-1 contains examples of items reported on Form 4797 and refers to the part of that form on which they first should be reported. Printable 1040ez form 2011 Topics - This chapter discusses: Section 1231 gains and losses Depreciation recapture Other gains Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets Form (and Instructions) 4797 Sales of Business Property See chapter 16 for information about getting publications and forms. Printable 1040ez form 2011 Section 1231 Gains and Losses Section 1231 gains and losses are the taxable gains and losses from section 1231 transactions (explained below). Printable 1040ez form 2011 Their treatment as ordinary or capital gains depends on whether you have a net gain or a net loss from all of your section 1231 transactions in the tax year. Printable 1040ez form 2011 Table 9-1. Printable 1040ez form 2011 Where to First Report Certain Items on Form 4797 Type of property Held 1 year  or less Held more than  1 year 1 Depreciable trade or business property:       a Sold or exchanged at a gain Part II Part III (1245, 1250)   b Sold or exchanged at a loss Part II Part I 2 Farmland held less than 10 years for which soil, water, or land clearing expenses were deducted:       a Sold at a gain Part II Part III (1252)   b Sold at a loss Part II Part I 3 All other farmland Part II Part I 4 Disposition of cost-sharing payment property described in section 126 Part II Part III (1255) 5 Cattle and horses used in a trade or business for draft, breeding, dairy, or sporting purposes: Held less  than 24 mos. Printable 1040ez form 2011 Held 24 mos. Printable 1040ez form 2011  or more   a Sold at a gain Part II Part III (1245)   b Sold at a loss Part II Part I   c Raised cattle and horses sold at a gain Part II Part I 6 Livestock other than cattle and horses used in a trade or business for draft, breeding, dairy, or sporting purposes: Held less  than 12 mos. Printable 1040ez form 2011 Held 12 mos. Printable 1040ez form 2011   or more   a Sold at a gain Part II Part III (1245)   b Sold at a loss Part II Part I   c Raised livestock sold at a gain Part II Part I If you have a gain from a section 1231 transaction, first determine whether any of the gain is ordinary income under the depreciation recapture rules (explained later). Printable 1040ez form 2011 Do not take that gain into account as section 1231 gain. Printable 1040ez form 2011 Section 1231 transactions. Printable 1040ez form 2011   Gain or loss on the following transactions is subject to section 1231 treatment. Printable 1040ez form 2011 Sale or exchange of cattle and horses. Printable 1040ez form 2011 The cattle and horses must be held for draft, breeding, dairy, or sporting purposes and held for 24 months or longer. Printable 1040ez form 2011 Sale or exchange of other livestock. Printable 1040ez form 2011 This livestock must be held for draft, breeding, dairy, or sporting purposes and held for 12 months or longer. Printable 1040ez form 2011 Other livestock includes hogs, mules, sheep, goats, donkeys, and other fur-bearing animals. Printable 1040ez form 2011 Other livestock does not include poultry. Printable 1040ez form 2011 Sale or exchange of depreciable personal property. Printable 1040ez form 2011 This property must be used in your business and held longer than 1 year. Printable 1040ez form 2011 Generally, property held for the production of rents or royalties is considered to be used in a trade or business. Printable 1040ez form 2011 Examples of depreciable personal property include farm machinery and trucks. Printable 1040ez form 2011 It also includes amortizable section 197 intangibles. Printable 1040ez form 2011 Sale or exchange of real estate. Printable 1040ez form 2011 This property must be used in your business and held longer than 1 year. Printable 1040ez form 2011 Examples are your farm or ranch (including barns and sheds). Printable 1040ez form 2011 Sale or exchange of unharvested crops. Printable 1040ez form 2011 The crop and land must be sold, exchanged, or involuntarily converted at the same time and to the same person, and the land must have been held longer than 1 year. Printable 1040ez form 2011 You cannot keep any right or option to reacquire the land directly or indirectly (other than a right customarily incident to a mortgage or other security transaction). Printable 1040ez form 2011 Growing crops sold with a leasehold on the land, even if sold to the same person in a single transaction, are not included. Printable 1040ez form 2011 Distributive share of partnership gains and losses. Printable 1040ez form 2011 Your distributive share must be from the sale or exchange of property listed above and held longer than 1 year (or for the required period for certain livestock). Printable 1040ez form 2011 Cutting or disposal of timber. Printable 1040ez form 2011 Special rules apply if you owned the timber longer than 1 year and elect to treat timber cutting as a sale or exchange, or you enter into a cutting contract, as described in chapter 8 under Timber . Printable 1040ez form 2011 Condemnation. Printable 1040ez form 2011 The condemned property (defined in chapter 11) must have been held longer than 1 year. Printable 1040ez form 2011 It must be business property or a capital asset held in connection with a trade or business or a transaction entered into for profit, such as investment property. Printable 1040ez form 2011 It cannot be property held for personal use. Printable 1040ez form 2011 Casualty or theft. Printable 1040ez form 2011 The casualty or theft must have affected business property, property held for the production of rents or royalties, or investment property (such as notes and bonds). Printable 1040ez form 2011 You must have held the property longer than 1 year. Printable 1040ez form 2011 However, if your casualty or theft losses are more than your casualty or theft gains, neither the gains nor the losses are taken into account in the section 1231 computation. Printable 1040ez form 2011 Section 1231 does not apply to personal casualty gains and losses. Printable 1040ez form 2011 See chapter 11 for information on how to treat those gains and losses. Printable 1040ez form 2011 If the property is not held for the required holding period, the transaction is not subject to section 1231 treatment, and any gain or loss is ordinary income reported in Part II of Form 4797. Printable 1040ez form 2011 See Table 9-1. Printable 1040ez form 2011 Property for sale to customers. Printable 1040ez form 2011   A sale, exchange, or involuntary conversion of property held mainly for sale to customers is not a section 1231 transaction. Printable 1040ez form 2011 If you will get back all, or nearly all, of your investment in the property by selling it rather than by using it up in your business, it is property held mainly for sale to customers. Printable 1040ez form 2011 Treatment as ordinary or capital. Printable 1040ez form 2011   To determine the treatment of section 1231 gains and losses, combine all of your section 1231 gains and losses for the year. Printable 1040ez form 2011 If you have a net section 1231 loss, it is an ordinary loss. Printable 1040ez form 2011 If you have a net section 1231 gain, it is ordinary income up to your nonrecaptured section 1231 losses from previous years, explained next. Printable 1040ez form 2011 The rest, if any, is long-term capital gain. Printable 1040ez form 2011 Nonrecaptured section 1231 losses. Printable 1040ez form 2011   Your nonrecaptured section 1231 losses are your net section 1231 losses for the previous 5 years that have not been applied against a net section 1231 gain by treating the gain as ordinary income. Printable 1040ez form 2011 These losses are applied against your net section 1231 gain beginning with the earliest loss in the 5-year period. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 In 2013, Ben has a $2,000 net section 1231 gain. Printable 1040ez form 2011 To figure how much he has to report as ordinary income and long-term capital gain, he must first determine his section 1231 gains and losses from the previous 5-year period. Printable 1040ez form 2011 From 2008 through 2012 he had the following section 1231 gains and losses. Printable 1040ez form 2011 Year Amount 2008 -0- 2009 -0- 2010 ($2,500) 2011 -0- 2012 $1,800   Ben uses this information to figure how to report his net section 1231 gain for 2013 as shown below. Printable 1040ez form 2011 1) Net section 1231 gain (2013) $2,000 2) Net section 1231 loss (2010) ($2,500)   3) Net section 1231 gain (2012) 1,800   4) Remaining net section 1231 loss from prior 5 years ($700)   5) Gain treated as  ordinary income $700 6) Gain treated as long-term  capital gain $1,300 His remaining net section 1231 loss from 2010 is completely recaptured in 2013. Printable 1040ez form 2011 Depreciation Recapture If you dispose of depreciable or amortizable property at a gain, you may have to treat all or part of the gain (even if it is otherwise nontaxable) as ordinary income. Printable 1040ez form 2011 To figure any gain that must be reported as ordinary income, you must keep permanent records of the facts necessary to figure the depreciation or amortization allowed or allowable on your property. Printable 1040ez form 2011 For more information, see chapter 3 of Publication 544. Printable 1040ez form 2011 Section 1245 Property A gain on the disposition of section 1245 property is treated as ordinary income to the extent of depreciation allowed or allowable. Printable 1040ez form 2011 Any recognized gain that is more than the part that is ordinary income is a section 1231 gain. Printable 1040ez form 2011 See Treatment as ordinary or capital under Section 1231 Gains and Losses , earlier. Printable 1040ez form 2011 Section 1245 property includes any property that is or has been subject to an allowance for depreciation or amortization and that is any of the following types of property. Printable 1040ez form 2011 Personal property (either tangible or intangible). Printable 1040ez form 2011 Other tangible property (except buildings and their structural components) used as any of the following. Printable 1040ez form 2011 See Buildings and structural components below. Printable 1040ez form 2011 An integral part of manufacturing, production, or extraction, or of furnishing certain services. Printable 1040ez form 2011 A research facility in any of the activities in (a). Printable 1040ez form 2011 A facility in any of the activities in (a) above, for the bulk storage of fungible commodities (discussed later). Printable 1040ez form 2011 That part of real property (not included in (2)) with an adjusted basis reduced by (but not limited to) the following. Printable 1040ez form 2011 Amortization of certified pollution control facilities. Printable 1040ez form 2011 The section 179 expense deduction. Printable 1040ez form 2011 Deduction for clean-fuel vehicles and certain refueling property. Printable 1040ez form 2011 Expenditures to remove architectural and transportation barriers to the handicapped and elderly. Printable 1040ez form 2011 Certain reforestation expenditures (as described under Reforestation Costs in chapter 7. Printable 1040ez form 2011 Single purpose agricultural (livestock) or horticultural structures. Printable 1040ez form 2011 Storage facilities (except buildings and their structural components) used in distributing petroleum or any primary product of petroleum. Printable 1040ez form 2011 Buildings and structural components. Printable 1040ez form 2011   Section 1245 property does not include buildings and structural components. Printable 1040ez form 2011 The term building includes a house, barn, warehouse, or garage. Printable 1040ez form 2011 The term structural component includes walls, floors, windows, doors, central air conditioning systems, light fixtures, etc. Printable 1040ez form 2011   Do not treat a structure that is essentially machinery or equipment as a building or structural component. Printable 1040ez form 2011 Also, do not treat a structure that houses property used as an integral part of an activity as a building or structural component if the structure's use is so closely related to the property's use that the structure can be expected to be replaced when the property it initially houses is replaced. Printable 1040ez form 2011   The fact that the structure is specially designed to withstand the stress and other demands of the property and cannot be used economically for other purposes indicates it is closely related to the use of the property it houses. Printable 1040ez form 2011 Structures such as oil and gas storage tanks, grain storage bins, and silos are not treated as buildings, but as section 1245 property. Printable 1040ez form 2011 Facility for bulk storage of fungible commodities. Printable 1040ez form 2011   This is a facility used mainly for the bulk storage of fungible commodities. Printable 1040ez form 2011 Bulk storage means storage of a commodity in a large mass before it is used. Printable 1040ez form 2011 For example, if a facility is used to store oranges that have been sorted and boxed, it is not used for bulk storage. Printable 1040ez form 2011 To be fungible, a commodity must be such that one part may be used in place of another. Printable 1040ez form 2011 Gain Treated as Ordinary Income The gain treated as ordinary income on the sale, exchange, or involuntary conversion of section 1245 property, including a sale and leaseback transaction, is the lesser of the following amounts. Printable 1040ez form 2011 The depreciation (which includes any section 179 deduction claimed) and amortization allowed or allowable on the property. Printable 1040ez form 2011 The gain realized on the disposition (the amount realized from the disposition minus the adjusted basis of the property). Printable 1040ez form 2011 For any other disposition of section 1245 property, ordinary income is the lesser of (1) above or the amount by which its fair market value (FMV) is more than its adjusted basis. Printable 1040ez form 2011 For details, see chapter 3 of Publication 544. Printable 1040ez form 2011 Use Part III of Form 4797 to figure the ordinary income part of the gain. Printable 1040ez form 2011 Depreciation claimed on other property or claimed by other taxpayers. Printable 1040ez form 2011   Depreciation and amortization include the amounts you claimed on the section 1245 property as well as the following depreciation and amortization amounts. Printable 1040ez form 2011 Amounts you claimed on property you exchanged for, or converted to, your section 1245 property in a like-kind exchange or involuntary conversion. Printable 1040ez form 2011 For details on exchanges of property that are not taxable, see Like-Kind Exchanges in chapter 8. Printable 1040ez form 2011 Amounts a previous owner of the section 1245 property claimed if your basis is determined with reference to that person's adjusted basis (for example, the donor's depreciation deductions on property you received as a gift and part of the transfer is a sale or exchange). Printable 1040ez form 2011 Example. Printable 1040ez form 2011 Jeff Free paid $120,000 for a tractor in 2012. Printable 1040ez form 2011 On February 23, 2013, he traded it for a chopper and paid an additional $30,000. Printable 1040ez form 2011 To figure his depreciation deduction on the chopper for the current year, Jeff continues to use the basis of the tractor as he would have before the trade. Printable 1040ez form 2011 Jeff can also depreciate the additional $30,000 for the chopper. Printable 1040ez form 2011 Depreciation and amortization. Printable 1040ez form 2011   Depreciation and amortization deductions that must be recaptured as ordinary income include (but are not limited to) the following items. Printable 1040ez form 2011 See Depreciation Recapture in chapter 3 of Publication 544 for more details. Printable 1040ez form 2011 Ordinary depreciation deductions. Printable 1040ez form 2011 Section 179 deduction (see chapter 7). Printable 1040ez form 2011 Any special depreciation allowance. Printable 1040ez form 2011 Amortization deductions for all the following costs. Printable 1040ez form 2011 Acquiring a lease. Printable 1040ez form 2011 Lessee improvements. Printable 1040ez form 2011 Pollution control facilities. Printable 1040ez form 2011 Reforestation expenses. Printable 1040ez form 2011 Section 197 intangibles. Printable 1040ez form 2011 Qualified disaster expenses. Printable 1040ez form 2011 Franchises, trademarks, and trade names acquired before August 11, 1993. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 You file your returns on a calendar year basis. Printable 1040ez form 2011 In February 2011, you bought and placed in service for 100% use in your farming business a light-duty truck (5-year property) that cost $10,000. Printable 1040ez form 2011 You used the half-year convention and your MACRS deductions for the truck were $1,500 in 2011 and $2,550 in 2012. Printable 1040ez form 2011 You did not claim the section 179 expense deduction for the truck. Printable 1040ez form 2011 You sold it in May 2013 for $7,000. Printable 1040ez form 2011 The MACRS deduction in 2013, the year of sale, is $893 (½ of $1,785). Printable 1040ez form 2011 Figure the gain treated as ordinary income as follows. Printable 1040ez form 2011 1) Amount realized $7,000 2) Cost (February 2011) $10,000   3) Depreciation allowed or allowable (MACRS deductions: $1,500 + $2,550 + $893) 4,943   4) Adjusted basis (subtract line 3 from line 2) $5,057 5) Gain realized (subtract line 4 from line 1) 1,943 6) Gain treated as ordinary income (lesser of line 3 or line 5) $1,943 Depreciation allowed or allowable. Printable 1040ez form 2011   You generally use the greater of the depreciation allowed or allowable when figuring the part of gain to report as ordinary income. Printable 1040ez form 2011 If, in prior years, you have consistently taken proper deductions under one method, the amount allowed for your prior years will not be increased even though a greater amount would have been allowed under another proper method. Printable 1040ez form 2011 If you did not take any deduction at all for depreciation, your adjustments to basis for depreciation allowable are figured by using the straight line method. Printable 1040ez form 2011 This treatment applies only when figuring what part of the gain is treated as ordinary income under the rules for section 1245 depreciation recapture. Printable 1040ez form 2011 Disposition of plants and animals. Printable 1040ez form 2011   If you elect not to use the uniform capitalization rules (see chapter 6), you must treat any plant you produce as section 1245 property. Printable 1040ez form 2011 If you have a gain on the property's disposition, you must recapture the pre-productive expenses you would have capitalized if you had not made the election by treating the gain, up to the amount of these expenses, as ordinary income. Printable 1040ez form 2011 For section 1231 transactions, show these expenses as depreciation on Form 4797, Part III, line 22. Printable 1040ez form 2011 For plant sales that are reported on Schedule F (1040), Profit or Loss From Farming, this recapture rule does not change the reporting of income because the gain is already ordinary income. Printable 1040ez form 2011 You can use the farm-price method or the unit-livestock-price method discussed in  chapter 2 to figure these expenses. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 Janet Maple sold her apple orchard in 2013 for $80,000. Printable 1040ez form 2011 Her adjusted basis at the time of sale was $60,000. Printable 1040ez form 2011 She bought the orchard in 2006, but the trees did not produce a crop until 2009. Printable 1040ez form 2011 Her pre-productive expenses were $6,000. Printable 1040ez form 2011 She elected not to use the uniform capitalization rules. Printable 1040ez form 2011 Janet must treat $6,000 of the gain as ordinary income. Printable 1040ez form 2011 Section 1250 Property Section 1250 property includes all real property subject to an allowance for depreciation that is not and never has been section 1245 property. Printable 1040ez form 2011 It includes buildings and structural components that are not section 1245 property (discussed earlier). Printable 1040ez form 2011 It includes a leasehold of land or section 1250 property subject to an allowance for depreciation. Printable 1040ez form 2011 A fee simple interest in land is not section 1250 property because, like land, it is not depreciable. Printable 1040ez form 2011 Gain on the disposition of section 1250 property is treated as ordinary income to the extent of additional depreciation allowed or allowable. Printable 1040ez form 2011 To determine the additional depreciation on section 1250 property, see Depreciation Recapture in chapter 3 of Publication 544. Printable 1040ez form 2011 You will not have additional depreciation if any of the following apply to the property disposed of. Printable 1040ez form 2011 You figured depreciation for the property using the straight line method or any other method that does not result in depreciation that is more than the amount figured by the straight line method and you have held the property longer than 1 year. Printable 1040ez form 2011 You chose the alternate ACRS (straight line) method for the property, which was a type of 15-, 18-, or 19-year real property covered by the section 1250 rules. Printable 1040ez form 2011 The property was nonresidential real property placed in service after 1986 (or after July 31, 1986, if the choice to use MACRS was made) and you held it longer than 1 year. Printable 1040ez form 2011 These properties are depreciated using the straight line method. Printable 1040ez form 2011 Installment Sale If you report the sale of property under the installment method, any depreciation recapture under section 1245 or 1250 is taxable as ordinary income in the year of sale. Printable 1040ez form 2011 This applies even if no payments are received in that year. Printable 1040ez form 2011 If the gain is more than the depreciation recapture income, report the rest of the gain using the rules of the installment method. Printable 1040ez form 2011 For this purpose, include the recapture income in your installment sale basis to determine your gross profit on the installment sale. Printable 1040ez form 2011 If you dispose of more than one asset in a single transaction, you must separately figure the gain on each asset so that it may be properly reported. Printable 1040ez form 2011 To do this, allocate the selling price and the payments you receive in the year of sale to each asset. Printable 1040ez form 2011 Report any depreciation recapture income in the year of sale before using the installment method for any remaining gain. Printable 1040ez form 2011 For more information on installment sales, see chapter 10. Printable 1040ez form 2011 Other Dispositions Chapter 3 of Publication 544 discusses the tax treatment of the following transfers of depreciable property. Printable 1040ez form 2011 By gift. Printable 1040ez form 2011 At death. Printable 1040ez form 2011 In like-kind exchanges. Printable 1040ez form 2011 In involuntary conversions. Printable 1040ez form 2011 Publication 544 also explains how to handle a single transaction involving multiple properties. Printable 1040ez form 2011 Other Gains This section discusses gain on the disposition of farmland for which you were allowed either of the following. Printable 1040ez form 2011 Deductions for soil and water conservation expenditures (section 1252 property). Printable 1040ez form 2011 Exclusions from income for certain cost sharing payments (section 1255 property). Printable 1040ez form 2011 Section 1252 property. Printable 1040ez form 2011   If you disposed of farmland you held more than 1 year and less than 10 years at a gain and you were allowed deductions for soil and water conservation expenses for the land, as discussed in chapter 5, you must treat part of the gain as ordinary income and treat the balance as section 1231 gain. Printable 1040ez form 2011 Exceptions. Printable 1040ez form 2011   Do not treat gain on the following transactions as gain on section 1252 property. Printable 1040ez form 2011 Disposition of farmland by gift. Printable 1040ez form 2011 Transfer of farm property at death (except for income in respect of a decedent). Printable 1040ez form 2011 For more information, see Regulations section 1. Printable 1040ez form 2011 1252-2. Printable 1040ez form 2011 Amount to report as ordinary income. Printable 1040ez form 2011   You report as ordinary income the lesser of the following amounts. Printable 1040ez form 2011 Your gain (determined by subtracting the adjusted basis from the amount realized from a sale, exchange, or involuntary conversion, or the FMV for all other dispositions). Printable 1040ez form 2011 The total deductions allowed for soil and water conservation expenses multiplied by the applicable percentage, discussed next. Printable 1040ez form 2011 Applicable percentage. Printable 1040ez form 2011   The applicable percentage is based on the length of time you held the land. Printable 1040ez form 2011 If you dispose of your farmland within 5 years after the date you acquired it, the percentage is 100%. Printable 1040ez form 2011 If you dispose of the land within the 6th through 9th year after you acquired it, the applicable percentage is reduced by 20% a year for each year or part of a year you hold the land after the 5th year. Printable 1040ez form 2011 If you dispose of the land 10 or more years after you acquired it, the percentage is 0%, and the entire gain is a section 1231 gain. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 You acquired farmland on January 19, 2005. Printable 1040ez form 2011 On October 3, 2013, you sold the land at a $30,000 gain. Printable 1040ez form 2011 Between January 1 and October 3, 2013, you incur soil and water conservation expenditures of $15,000 for the land that are fully deductible in 2013. Printable 1040ez form 2011 The applicable percentage is 40% since you sold the land within the 8th year after you acquired it. Printable 1040ez form 2011 You treat $6,000 (40% of $15,000) of the $30,000 gain as ordinary income and the $24,000 balance as a section 1231 gain. Printable 1040ez form 2011 Section 1255 property. Printable 1040ez form 2011   If you receive certain cost-sharing payments on property and you exclude those payments from income (as discussed in chapter 3), you may have to treat part of any gain as ordinary income and treat the balance as a section 1231 gain. Printable 1040ez form 2011 If you chose not to exclude these payments, you will not have to recognize ordinary income under this provision. Printable 1040ez form 2011 Amount to report as ordinary income. Printable 1040ez form 2011   You report as ordinary income the lesser of the following amounts. Printable 1040ez form 2011 The applicable percentage of the total excluded cost-sharing payments. Printable 1040ez form 2011 The gain on the disposition of the property. Printable 1040ez form 2011 You do not report ordinary income under this rule to the extent the gain is recognized as ordinary income under sections 1231 through 1254, 1256, and 1257. Printable 1040ez form 2011 However, if applicable, gain reported under this rule must be reported regardless of any contrary provisions (including nonrecognition provisions) under any other section. Printable 1040ez form 2011 Applicable percentage. Printable 1040ez form 2011   The applicable percentage of the excluded cost-sharing payments to be reported as ordinary income is based on the length of time you hold the property after receiving the payments. Printable 1040ez form 2011 If the property is held less than 10 years after you receive the payments, the percentage is 100%. Printable 1040ez form 2011 After 10 years, the percentage is reduced by 10% a year, or part of a year, until the rate is 0%. Printable 1040ez form 2011 Form 4797, Part III. Printable 1040ez form 2011   Use Form 4797, Part III, to figure the ordinary income part of a gain from the sale, exchange, or involuntary conversion of section 1252 property and section 1255 property. Printable 1040ez form 2011 Prev  Up  Next   Home   More Online Publications