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

Irs 1040 XIrs Ez FormFile 2005 Taxes Online FreeHand R Block TaxesHow To File 2011 Tax ReturnE File 2012 Tax Return1040ez 2011 FormE File Tax ReturnFile State Taxes Only Online1040 Ez DownloadState Income Tax FormsTax Forms 2011 1040Irs Form 990 Ez 2010Free State Tax Filing OnlineHrblock TaxHow To Amend A Tax Return 2012Need To File 2012 Tax ReturnsHandrblockUnemployment TaxTurbotax Login Tax Return 2012Irs Form 1040a 2012File My State Tax Return Free1040xformState Tax Return OnlineH&rblockonlineFiling Back Taxes OnlineFree Federal And State Tax Filing 2012Free Income Tax PreparationTax Amendment Form2012 Ez Tax FormsCan You File A 1040x Online2010 Income TaxIrs Forms For 2012H Rblock ComHow Long Does An Amended Tax Return TakeAmend TaxesHow To File Tax Extension ElectronicallyWhere To File Tax Return 2012How To File A 1040ezDownload A 1040ez Federal Tax Form

Printable 1040ez Form

Printable 1040ez form 4. Printable 1040ez form   Other Section 501(c) Organizations Table of Contents Introduction 501(c)(4) - Civic Leagues and Social Welfare OrganizationsSpecific Organizations 501(c)(5) - Labor, Agricultural and Horticultural OrganizationsLabor Organizations Agricultural and Horticultural Organizations 501(c)(6) - Business Leagues, etc. Printable 1040ez form Line of business. Printable 1040ez form Examples. Printable 1040ez form Improvement of business conditions. Printable 1040ez form Exception for local legislation. Printable 1040ez form De minimis exception. Printable 1040ez form Grass roots lobbying. Printable 1040ez form 501(c)(7) - Social and Recreation ClubsLimited membership. Printable 1040ez form Support. Printable 1040ez form Facilities open to public. Printable 1040ez form Gross receipts from nonmembership sources. Printable 1040ez form Gross receipts. Printable 1040ez form Nontraditional activities. Printable 1040ez form 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal SocietiesFraternal Beneficiary Societies (501(c)(8)) Domestic Fraternal Societies (501(c)(10)) 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' AssociationsLocal Employees' Associations (501(c)(4)) Voluntary Employees' Beneficiary Associations (501(c)(9)) Supplemental Unemployment Benefit Trusts (501(c)(17)) 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like OrganizationsMembership. Printable 1040ez form Losses and expenses. Printable 1040ez form Distributions of proceeds. Printable 1040ez form The 85% Requirement Local Life Insurance Associations Mutual or Cooperative Associations 501(c)(13) - Cemetery CompaniesBuying cemetery property. Printable 1040ez form Perpetual care organization. Printable 1040ez form Care of individual plots. Printable 1040ez form 501(c)(14) - Credit Unions and Other Mutual Financial OrganizationsState-Chartered Credit Unions Other Mutual Financial Organizations 501(c)(19) - Veterans' Organizations 501(c)(20) - Group Legal Services Plan Organizations 501(c)(21) - Black Lung Benefit TrustsExcise taxes. Printable 1040ez form 501(c)(2) - Title-Holding Corporations for Single Parent CorporationsExpenses. Printable 1040ez form Waiver of payment of income. Printable 1040ez form 501(c)(25) - Title-Holding Corporations or Trusts for Multiple Parent CorporationsUnrelated Business Income 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations 501(c)(29) - CO-OP Health Insurance Issuers New Guidance for IRC 501(c)(29) Qualified Nonprofit Health Insurance Issuers General Requirements for Exemption under 501(c)(29) and Annual Filing Requirement Additional Guidance for Prospective 501(c)(29) Organizations Introduction This chapter contains specific information for certain organizations described in section 501(c), other than those organizations that are described in section 501(c)(3). Printable 1040ez form Section 501(c)(3) organizations are covered in chapter 3 of this publication. Printable 1040ez form The Table of Contents at the beginning of this publication, as well as the Organization Reference Chart, may help you locate at a glance the type of organization discussed in this chapter. Printable 1040ez form 501(c)(4) - Civic Leagues and Social Welfare Organizations If your organization is not organized for profit and will be operated primarily to promote social welfare to benefit the community, you should file Form 1024 to apply for recognition of exemption from federal income tax under section 501(c)(4). Printable 1040ez form The discussion that follows describes the information you must provide when applying. Printable 1040ez form For application procedures, see chapter 1. Printable 1040ez form To qualify for exemption under section 501(c)(4), the organization's net earnings must be devoted primarily to charitable, educational, or recreational purposes. Printable 1040ez form In addition, no part of the organization's net earnings can inure to the benefit of any private shareholder or individual. Printable 1040ez form If the organization provides an excess benefit to certain persons, an excise tax may be imposed. Printable 1040ez form See Excise tax on excess benefit transactions , under Excess Benefit Transactions in chapter 5 for more information about this tax. Printable 1040ez form Examples. Printable 1040ez form   Types of organizations that are considered to be social welfare organizations are civic associations and volunteer fire companies. Printable 1040ez form Nonprofit operation. Printable 1040ez form   You must submit evidence that your organization is organized and will be operated on a nonprofit basis. Printable 1040ez form However, such evidence, including the fact that your organization is organized under a state law relating to nonprofit corporations, will not in itself establish a social welfare purpose. Printable 1040ez form Social welfare. Printable 1040ez form   To establish that your organization is organized primarily to promote social welfare, you should submit evidence with your application showing that your organization will operate primarily to further (in some way) the common good and general welfare of the people of the community (such as by bringing about civic betterment and social improvements). Printable 1040ez form   An organization that restricts the use of its facilities to employees of selected corporations and their guests is primarily benefiting a private group rather than the community. Printable 1040ez form It therefore does not qualify as a section 501(c)(4) organization. Printable 1040ez form Similarly, an organization formed to represent member-tenants of an apartment complex does not qualify, since its activities benefit the member-tenants and not all tenants in the community. Printable 1040ez form However, an organization formed to promote the legal rights of all tenants in a particular community may qualify under section 501(c)(4) as a social welfare organization. Printable 1040ez form Political activity. Printable 1040ez form   Promoting social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office. Printable 1040ez form However, if you submit proof that your organization is organized primarily to promote social welfare, it can obtain exemption even if it participates legally in some political activity on behalf of or in opposition to candidates for public office. Printable 1040ez form See the discussion in chapter 2 under Political Organization Income Tax Return . Printable 1040ez form Social or recreational activity. Printable 1040ez form   If social activities will be the primary purpose of your organization, you should not file an application for exemption as a social welfare organization but should file for exemption as a social club described in section 501(c)(7). Printable 1040ez form Retirement benefit program. Printable 1040ez form   An organization established by its members that has as its primary activity providing supplemental retirement benefits to its members or death benefits to their beneficiaries does not qualify as an exempt social welfare organization. Printable 1040ez form It may qualify under another paragraph of section 501(c) depending on all the facts. Printable 1040ez form   However, a nonprofit association that is established, maintained, and funded by a local government to provide the only retirement benefits to a class of employees may qualify as a social welfare organization under section 501(c)(4). Printable 1040ez form Tax treatment of donations. Printable 1040ez form   Donations to volunteer fire companies are deductible on the donor's federal income tax return, but only if made for exclusively public purposes. Printable 1040ez form Contributions to civic leagues or other section 501(c)(4) organizations generally are not deductible as charitable contributions for federal income tax purposes. Printable 1040ez form They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer's business. Printable 1040ez form However, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Printable 1040ez form for more information. Printable 1040ez form For more information on social welfare organizations, see Life Cycle of a Social Welfare Organization at IRS. Printable 1040ez form gov. Printable 1040ez form Specific Organizations The following information should be contained in the application form and accompanying statements of certain types of civic leagues or social welfare organizations. Printable 1040ez form Volunteer fire companies. Printable 1040ez form   If your organization wishes to obtain exemption as a volunteer fire company or similar organization, you should submit evidence that its members are actively engaged in fire fighting and similar disaster assistance, whether it actually owns the fire fighting equipment, and whether it provides any assistance for its members, such as death and medical benefits in case of injury to them. Printable 1040ez form   If your organization does not have an independent social purpose, such as providing recreational facilities for members, it may be exempt under section 501(c)(3). Printable 1040ez form In this event, your organization should file Form 1023. Printable 1040ez form Homeowners' associations. Printable 1040ez form   A membership organization formed by a real estate developer to own and maintain common green areas, streets, and sidewalks and to enforce covenants to preserve the appearance of the development should show that it is operated for the benefit of all the residents of the community. Printable 1040ez form The term community generally refers to a geographical unit recognizable as a governmental subdivision, unit, or district thereof. Printable 1040ez form Whether a particular association meets the requirement of benefiting a community depends on the facts and circumstances of each case. Printable 1040ez form Even if an area represented by an association is not a community, the association can still qualify for exemption if its activities benefit a community. Printable 1040ez form   The association should submit evidence that areas such as roadways and park land that it owns and maintains are open to the general public and not just its own members. Printable 1040ez form It also must show that it does not engage in exterior maintenance of private homes. Printable 1040ez form   A homeowners' association that is not exempt under section 501(c)(4) and that is a condominium management association, a residential real estate management association, or a timeshare association generally can elect under the provisions of section 528 to receive certain tax benefits that, in effect, permit it to exclude its exempt function income from its gross income. Printable 1040ez form Other organizations. Printable 1040ez form   Other nonprofit organizations that qualify as social welfare organizations include: An organization operating an airport that is on land owned by a local government, which supervises the airport's operation, and that serves the general public in an area with no other airport, A community association that works to improve public services, housing, and residential parking; publishes a free community newspaper; sponsors a community sports league, holiday programs, and meetings; and contracts with a private security service to patrol the community, A community association devoted to preserving the community's traditions, architecture, and appearance by representing it before the local legislature and administrative agencies in zoning, traffic, and parking matters, An organization that tries to encourage industrial development and relieve unemployment in an area by making loans to businesses so they will relocate to the area, and An organization that holds an annual festival of regional customs and traditions. Printable 1040ez form 501(c)(5) - Labor, Agricultural and Horticultural Organizations If you are a member of an organization that wants to obtain recognition of exemption from federal income tax as a labor, agricultural, or horticultural organization, you should submit an application on Form 1024. Printable 1040ez form You must indicate in your application for exemption and accompanying statements that no part of the organization's net earnings will inure to the benefit of any member. Printable 1040ez form In addition, you should follow the procedure for obtaining recognition of exempt status described in chapter 1. Printable 1040ez form Submit any additional information that may be required, as described in this section. Printable 1040ez form Tax treatment of donations. Printable 1040ez form   Contributions to labor, agricultural, and horticultural organizations are not deductible as charitable contributions on the donor's federal income tax return. Printable 1040ez form However, such payments may be deductible as business expenses if they are ordinary and necessary in the conduct of the taxpayer's trade or business. Printable 1040ez form For more information about certain limits affecting the deductibility of these business expenses, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Printable 1040ez form Labor Organizations A labor organization is an association of workers who have combined to protect and promote the interests of the members by bargaining collectively with their employers to secure better working conditions. Printable 1040ez form To show that your organization has the purpose of a labor organization, you should include in the articles of organization or accompanying statements (submitted with your exemption application) information establishing that the organization is organized to better the conditions of workers, improve the grade of their products, and develop a higher degree of efficiency in their respective occupations. Printable 1040ez form In addition, no net earnings of the organization can inure to the benefit of any member. Printable 1040ez form Composition of membership. Printable 1040ez form   While a labor organization generally is composed of employees or representatives of the employees (in the form of collective bargaining agents) and similar employee groups, evidence that an organization's membership consists mainly of workers does not in itself indicate an exempt purpose. Printable 1040ez form You must show in your application that your organization has the purposes described in the preceding paragraph. Printable 1040ez form These purposes can be accomplished by a single labor organization acting alone or by several organizations acting together through a separate organization. Printable 1040ez form Benefits to members. Printable 1040ez form   The payment by a labor organization of death, sick, accident, and similar benefits to its individual members with funds contributed by its members, if made under a plan to better the conditions of the members, does not preclude exemption as a labor organization. Printable 1040ez form However, an organization does not qualify for exemption as a labor organization if it has no authority to represent members in job-related matters, even if it provides weekly income to its members in the event of a lawful strike by the members' union, in return for an annual payment by the member. Printable 1040ez form   For more information on labor organizations, see Life Cycle of a Labor Organization at IRS. Printable 1040ez form gov. Printable 1040ez form Agricultural and Horticultural Organizations Agricultural and horticultural organizations are connected with raising livestock, forestry, cultivating land, raising and harvesting crops or aquatic resources, cultivating useful or ornamental plants, and similar pursuits. Printable 1040ez form For the purpose of these provisions, aquatic resources include only animal or vegetable life, but not mineral resources. Printable 1040ez form The term harvesting, in this case, includes fishing and related pursuits. Printable 1040ez form Agricultural organizations can be quasi-public in character and are often designed to encourage the development of better agricultural and horticultural products through a system of awards, using income from entry fees, gate receipts, and donations to meet the necessary expenses of upkeep and operation. Printable 1040ez form When the activities are directed toward the improvement of marketing or other business conditions in one or more lines of business, rather than the improvement of production techniques or the betterment of the conditions of persons engaged in agriculture, the organization must qualify for exemption as a business league, board of trade, or other organization, as discussed next in the section on 501(c)(6) organizations. Printable 1040ez form The primary purpose of exempt agricultural and horticultural organizations must be to better the conditions of those engaged in agriculture or horticulture, develop more efficiency in agriculture or horticulture, or improve the products. Printable 1040ez form The following list contains some examples of activities that show an agricultural or horticultural purpose. Printable 1040ez form Promoting various cooperative agricultural, horticultural, and civic activities among rural residents by a state, farm, or home bureau. Printable 1040ez form Exhibiting livestock, farm products, and other characteristic features of agriculture and horticulture. Printable 1040ez form Testing soil for members and nonmembers of the farm bureau on a cost basis, the results of the tests and other recommendations being furnished to the community members to educate them in soil treatment. Printable 1040ez form Guarding the purity of a specific breed of livestock. Printable 1040ez form Encouraging improvements in the production of fish on privately owned fish farms. Printable 1040ez form Negotiating with processors for the price to be paid to members for their crops. Printable 1040ez form For more information on agricultural or horticultural organizations, see Life Cycle of an Agricultural or Horticultural Organization at IRS. Printable 1040ez form gov. Printable 1040ez form 501(c)(6) - Business Leagues, etc. Printable 1040ez form If your association wants to apply for recognition of exemption from federal income tax as a nonprofit business league, chamber of commerce, real estate board, or board of trade, it should file Form 1024. Printable 1040ez form For a discussion of the procedure to follow, see chapter 1. Printable 1040ez form Your organization must indicate in its application form and attached statements that no part of its net earnings will inure to the benefit of any private shareholder or individual and that it is not organized for profit or organized to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining). Printable 1040ez form In addition, your organization must be primarily engaged in activities or functions that are the basis for its exemption. Printable 1040ez form It must be primarily supported by membership dues and other income from activities substantially related to its exempt purpose. Printable 1040ez form A business league, in general, is an association of persons having some common business interest, the purpose of which is to promote that common interest and not to engage in a regular business of a kind ordinarily carried on for profit. Printable 1040ez form Trade associations and professional associations are considered business leagues. Printable 1040ez form Chamber of commerce. Printable 1040ez form   A chamber of commerce usually is composed of the merchants and traders of a city. Printable 1040ez form Board of trade. Printable 1040ez form   A board of trade often consists of persons engaged in similar lines of business. Printable 1040ez form For example, a nonprofit organization formed to regulate the sale of a specified agricultural commodity to assure equal treatment of producers, warehouse workers, and buyers is a board of trade. Printable 1040ez form   Chambers of commerce and boards of trade usually promote the common economic interests of all the commercial enterprises in a given trade community. Printable 1040ez form Real estate board. Printable 1040ez form   A real estate board consists of members interested in improving the business conditions in the real estate field. Printable 1040ez form It is not organized for profit and no part of the net earnings inures to the benefit of any private shareholder or individual. Printable 1040ez form Professional football leagues. Printable 1040ez form   The Internal Revenue Code specifically defines professional football leagues as exempt organizations under section 501(c)(6). Printable 1040ez form They are exempt whether or not they administer a pension fund for football players. Printable 1040ez form General purpose. Printable 1040ez form   You must indicate in the material submitted with your application that your organization will be devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. Printable 1040ez form It must be shown that the conditions of a particular trade or the interests of the community will be advanced. Printable 1040ez form Merely indicating the name of the organization or the object of the local statute under which it is created is not enough to demonstrate the required general purpose. Printable 1040ez form Line of business. Printable 1040ez form   This term generally refers either to an entire industry or to all components of an industry within a geographic area. Printable 1040ez form It does not include a group composed of businesses that market a particular brand within an industry. Printable 1040ez form Common business interest. Printable 1040ez form   A common business interest of all members of the organization must be established by the application documents. Printable 1040ez form Examples. Printable 1040ez form   Activities that would tend to illustrate a common business interest are: Promotion of higher business standards and better business methods and encouragement of uniformity and cooperation by a retail merchants association, Education of the public in the use of credit, Establishment of uniform casualty rates and compilation of statistical information by an insurance rating bureau operated by casualty insurance companies, Establishment and maintenance of the integrity of a local commercial market, Operation of a trade publication primarily intended to benefit an entire industry, and Encouragement of the use of goods and services of an entire industry (such as a lawyer referral service whose main purpose is to introduce individuals to the use of the legal profession in the hope that they will enter into lawyer-client relationships on a paying basis as a result). Printable 1040ez form Improvement of business conditions. Printable 1040ez form   Generally, this must be shown to be the purpose of the organization. Printable 1040ez form This is not established by evidence of particular services that provide a convenience or economy to individual members in their businesses, such as advertising that carries the name of members, interest-free loans, assigning exclusive franchise areas, operation of a real estate multiple listing system, or operation of a credit reporting agency. Printable 1040ez form Stock or commodity exchange. Printable 1040ez form   A stock or commodity exchange is not a business league, chamber of commerce, real estate board, or board of trade and is not exempt under section 501(c)(6). Printable 1040ez form Legislative activity. Printable 1040ez form   An organization that is exempt under section 501(c)(6) can work for the enactment of laws to advance the common business interests of the organization's members. Printable 1040ez form Deduction not allowed for dues used for political or legislative activities. Printable 1040ez form   A taxpayer cannot deduct the part of dues or other payments to a business league, trade association, labor union, or similar organization that is reported to the taxpayer by the organization as having been used for any of the following activities. Printable 1040ez form Influencing legislation. Printable 1040ez form Participating or intervening in a political campaign for, or against, any candidate for public office. Printable 1040ez form Trying to influence the general public, or part of the general public, with respect to elections, legislative matters, or referendums (also known as grass roots lobbying). Printable 1040ez form Communicating directly with certain executive branch officials to try to influence their official actions or positions. Printable 1040ez form See Dues Used for Lobbying or Political Activities under Required Disclosures in chapter 2 for more information. Printable 1040ez form Exception for local legislation. Printable 1040ez form   Members can deduct dues (or assessments) to an organization that are for expenses of: Appearing before, submitting statements to, or sending communications to members of a local council or similar governing body with respect to legislation or proposed legislation of direct interest to the member, or Communicating information between the member and the organization with respect to local legislation or proposed legislation of direct interest to the organization or the member. Printable 1040ez form Legislation or proposed legislation is of direct interest to a taxpayer if it will, or can reasonably be expected to, affect the taxpayer's trade or business. Printable 1040ez form De minimis exception. Printable 1040ez form   In-house expenditures of $2,000 or less for the year for activities (1) – (4) listed earlier will not prevent a deduction for dues if the dues meet all other tests to be deductible as a business expense. Printable 1040ez form Grass roots lobbying. Printable 1040ez form   A tax-exempt trade association, labor union, or similar organization is considered to be engaging in grass roots lobbying if it contacts prospective members or calls upon its own members to contact their employees and customers for the purpose of urging such persons to communicate with their elected state or Congressional representatives to support the promotion, defeat, or repeal of legislation that is of direct interest to the organization. Printable 1040ez form Any dues or assessments directly related to such activities are not deductible by the taxpayer, since the individuals being contacted, who are not members of the organization, are a segment of the general public. Printable 1040ez form Tax treatment of donations. Printable 1040ez form   Contributions to organizations described in this section are not deductible as charitable contributions on the donor's federal income tax return. Printable 1040ez form They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer's business. Printable 1040ez form   For more information on business leagues, see Life Cycle of a Business League (Trade Association) on IRS. Printable 1040ez form gov. Printable 1040ez form 501(c)(7) - Social and Recreation Clubs If your club is organized for pleasure, recreation, and other similar nonprofitable purposes and substantially all of its activities are for these purposes, it should file Form 1024 to apply for recognition of exemption from federal income tax. Printable 1040ez form In applying for recognition of exemption, you should submit the information described in this section. Printable 1040ez form Also see chapter 1 for the procedures to follow. Printable 1040ez form Typical organizations that should file for recognition of exemption as social clubs include: College alumni associations that are not described in chapter 3 under Alumni association , College fraternities or sororities operating chapter houses for students, Country clubs, Amateur hunting, fishing, tennis, swimming, and other sport clubs, Dinner clubs that provide a meeting place, library, and dining room for members, Hobby clubs, Garden clubs, and Variety clubs. Printable 1040ez form Discrimination prohibited. Printable 1040ez form   Your organization will not be recognized as tax exempt if its charter, bylaws, or other governing instrument, or any written policy statement provides for discrimination against any person on the basis of race, color, or religion. Printable 1040ez form   However, a club that in good faith limits its membership to the members of a particular religion to further the teachings or principles of that religion and not to exclude individuals of a particular race or color will not be considered as discriminating on the basis of religion. Printable 1040ez form Also, the restriction on religious discrimination does not apply to a club that is an auxiliary of a fraternal beneficiary society (discussed later) if that society is described in section 501(c)(8) and exempt from tax under section 501(a) and limits its membership to the members of a particular religion. Printable 1040ez form Private benefit prohibited. Printable 1040ez form   No part of the organization's net earnings can inure to the benefit of any person having a personal and private interest in the activities of the organization. Printable 1040ez form For purposes of this requirement, it is not necessary that net earnings be actually distributed. Printable 1040ez form Even undistributed earnings can benefit members. Printable 1040ez form Examples of this include a decrease in membership dues or an increase in the services the club provides to its members without a corresponding increase in dues or other fees paid for club support. Printable 1040ez form However, fixed-fee payments to members who bring new members into the club are not an inurement of the club's net earnings, if the payments are reasonable compensation for performance of a necessary administrative service. Printable 1040ez form Purposes. Printable 1040ez form   To show that your organization possesses the characteristics of a club within the meaning of the exemption law, you should submit evidence with your application that personal contact, commingling, and fellowship exist among members. Printable 1040ez form You must show that members are bound together by a common objective of pleasure, recreation, and other nonprofitable purposes. Printable 1040ez form   Fellowship need not be present between each member and every other member of a club if it is a material part in the life of the organization. Printable 1040ez form A statewide or nationwide organization that is made up of individual members, but is divided into local groups, satisfies this requirement if fellowship is a material part of the life of each local group. Printable 1040ez form   The term other nonprofitable purposes means other purposes similar to pleasure and recreation. Printable 1040ez form For example, a club that, in addition to its social activities, has a plan for the payment of sick and death benefits is not operating exclusively for pleasure, recreation, and other nonprofitable purposes. Printable 1040ez form Limited membership. Printable 1040ez form   The membership in a social club must be limited. Printable 1040ez form To show that your organization has a purpose that would characterize it as a club, you should submit evidence with your application that there are limits on admission to membership consistent with the character of the club. Printable 1040ez form   A social club that issues corporate membership is dealing with the general public in the form of the corporation's employees. Printable 1040ez form Corporate members of a club are not the kind of members contemplated by the law. Printable 1040ez form Gross receipts from these members would be a factor in determining whether the club qualifies as a social club. Printable 1040ez form See Gross receipts from nonmembership sources , later. Printable 1040ez form Bona fide individual memberships paid for by a corporation would not have an effect on the gross receipts source. Printable 1040ez form   The fact that a social club may have an associate (nonvoting) class of membership will not be, in and of itself, a cause for nonrecognition of exemption. Printable 1040ez form However, if one membership class pays substantially lower dues and fees than another membership class, although both classes enjoy the same rights and privileges in using the club facilities, there may be an inurement of income to the benefited class, resulting in a denial of the club's exemption. Printable 1040ez form Support. Printable 1040ez form   In general, your club should be supported solely by membership fees, dues, and assessments. Printable 1040ez form However, if otherwise entitled to exemption, your club will not be disqualified because it raises revenue from members through the use of club facilities or in connection with club activities. Printable 1040ez form Business activities. Printable 1040ez form   If your club will engage in business, such as selling real estate, timber, or other products or services, it generally will be denied exemption. Printable 1040ez form However, evidence submitted with your application form that your organization will provide meals, refreshments, or services related to its exempt purposes only to its own members or their dependents or guests will not cause denial of exemption. Printable 1040ez form Facilities open to public. Printable 1040ez form   Evidence that your club's facilities will be open to the general public (persons other than members or their dependents or guests) may cause denial of exemption. Printable 1040ez form This does not mean, however, that any dealing with outsiders will automatically deprive a club of exemption. Printable 1040ez form Gross receipts from nonmembership sources. Printable 1040ez form   A section 501(c)(7) organization can receive up to 35% of its gross receipts, including investment income, from sources outside of its membership without losing its tax-exempt status. Printable 1040ez form Income from nontraditional business activity with members is not exempt function income, and thus is included as income from sources outside of the membership. Printable 1040ez form Of the 35% gross receipts listed above, up to 15% of the gross receipts can be derived from the use of the club's facilities or services by the general public. Printable 1040ez form If an organization has outside income that is more than these limits, all the facts and circumstances will be taken into account in determining whether the organization qualifies for exempt status. Printable 1040ez form Gross receipts. Printable 1040ez form   Gross receipts, for this purpose, are receipts from the normal and usual (traditionally conducted) activities of the club. Printable 1040ez form These receipts include charges, admissions, membership fees, dues, assessments, investment income, and normal recurring capital gains on investments. Printable 1040ez form Receipts do not include initiation fees and capital contributions. Printable 1040ez form Unusual amounts of income, such as from the sale of a clubhouse or similar facility, are not included in gross receipts or in figuring the percentage limits. Printable 1040ez form Nontraditional activities. Printable 1040ez form   Activities conducted by a social club need to further its exempt purposes. Printable 1040ez form Traditional business activities are those that further a social club's exempt purposes. Printable 1040ez form Nontraditional business activities do not further the exempt purposes of a social club even if conducted solely on a membership basis. Printable 1040ez form Nontraditional business activities are prohibited (subject to an insubstantial, trivial, and nonrecurrent test) for businesses conducted with both members and nonmembers. Printable 1040ez form Examples of nontraditional business activities include sale of package liquor, take-out food, and long-term room rental. Printable 1040ez form Fraternity foundations. Printable 1040ez form   If your organization is a foundation formed for the exclusive purpose of acquiring and leasing a chapter house to a local fraternity chapter or sorority chapter maintained at an educational institution and does not engage in any social or recreational activities, it may be a title holding corporation (discussed later under section 501(c)(2) organizations and under section 501(c)(25) organizations) rather than a social club. Printable 1040ez form Tax treatment of donations. Printable 1040ez form   Donations to exempt social and recreation clubs are not deductible as charitable contributions on the donor's federal income tax return. Printable 1040ez form 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies This section describes the information to be provided upon application for recognition of exemption by two types of fraternal societies: beneficiary and domestic. Printable 1040ez form The major distinction is that fraternal beneficiary societies provide for the payment of life, sick, accident, or other benefits to their members or their dependents, while domestic fraternal societies do not provide these benefits but rather devote their earnings to fraternal, religious, charitable, etc. Printable 1040ez form , purposes. Printable 1040ez form The procedures to follow in applying for recognition of exemption are described in chapter 1. Printable 1040ez form If your organization is controlled by a central organization, you should check with your controlling organization to determine whether your unit has been included in a group exemption letter or can be added. Printable 1040ez form If so, your organization need not apply for individual recognition of exemption. Printable 1040ez form For more information, see Group Exemption Letter in chapter 1 of this publication. Printable 1040ez form Tax treatment of donations. Printable 1040ez form   Donations by an individual to a domestic fraternal beneficiary society or a domestic fraternal society operating under the lodge system are deductible as charitable contributions only if used exclusively for religious, charitable, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals. Printable 1040ez form Fraternal Beneficiary Societies (501(c)(8)) A fraternal beneficiary society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Printable 1040ez form The application and accompanying statements should establish that the organization: Is a fraternal organization, Operates under the lodge system or for the exclusive benefit of the members of a fraternal organization itself operating under the lodge system, and Provides for the payment of life, sick, accident, or other benefits to the members of the society, order, or association or their dependents. Printable 1040ez form Lodge system. Printable 1040ez form   Operating under the lodge system means carrying on activities under a form of organization that comprises local branches, chartered by a parent organization and largely self-governing, called lodges, chapters, or the like. Printable 1040ez form Payment of benefits. Printable 1040ez form   It is not essential that every member be covered by the society's program of sick, accident, or death benefits. Printable 1040ez form An organization can qualify for exemption if most of its members are eligible for benefits, and the benefits are paid from contributions or dues paid by those members. Printable 1040ez form   The benefits must be limited to members and their dependents. Printable 1040ez form If members will have the ability to confer benefits to other than themselves and their dependents, exemption will not be recognized. Printable 1040ez form Whole-life insurance. Printable 1040ez form   Whole-life insurance constitutes a life benefit under section 501(c)(8) even though the policy may contain investment features such as a cash surrender value or a policy loan. Printable 1040ez form Reinsurance pool. Printable 1040ez form   Payments by a fraternal beneficiary society into a state-sponsored reinsurance pool that protects participating insurers against excessive losses on major medical health and accident insurance will not preclude exemption as a fraternal beneficiary society. Printable 1040ez form Domestic Fraternal Societies (501(c)(10)) A domestic fraternal society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Printable 1040ez form The application and accompanying statements should establish that the organization: Is a domestic fraternal organization organized in the U. Printable 1040ez form S. Printable 1040ez form , Operates under the lodge system, Devotes its net earnings exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes, and Does not provide for the payment of life, sick, accident, or other benefits to its members. Printable 1040ez form The organization can arrange with insurance companies to provide optional insurance to its members without jeopardizing its exempt status. Printable 1040ez form 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' Associations This section describes the information to be provided upon application for recognition of exemption by the following types of employees' associations: A voluntary employees' beneficiary association (including federal employees' associations) organized to pay life, sick, accident, and similar benefits to members or their dependents, or designated beneficiaries, if no part of the net earnings of the association inures to the benefit of any private shareholder or individual, and A supplemental unemployment benefit trust whose primary purpose is providing for payment of supplemental unemployment benefits. Printable 1040ez form Both the application form to file and the information to provide are discussed later under the section that describes your employee association. Printable 1040ez form Chapter 1 describes the procedures to follow in applying for exemption. Printable 1040ez form Tax treatment of donations. Printable 1040ez form   Donations to these organizations are not deductible as charitable contributions on the donor's federal income tax return. Printable 1040ez form Local Employees' Associations (501(c)(4)) A local association of employees whose membership is limited to employees of a designated person or persons in a particular municipality, and whose income will be devoted exclusively to charitable, educational, or recreational purposes. Printable 1040ez form A local employees' association must apply for recognition of exemption by filing Form 1024. Printable 1040ez form The organization must submit evidence that: It is of a purely local character, Its membership is limited to employees of a designated person or persons in a particular locality, and Its net earnings will be devoted exclusively to charitable, educational, or recreational purposes. Printable 1040ez form A local association of employees that has established a system of paying retirement or death benefits, or both, to its members will not qualify for exemption since the payment of these benefits is not considered as being for charitable, educational, or recreational purposes. Printable 1040ez form Similarly, a local association of employees that is operated primarily as a cooperative buying service for its members in order to obtain discount prices on merchandise, services, and activities does not qualify for exemption. Printable 1040ez form Voluntary Employees' Beneficiary Associations (501(c)(9)) An application for recognition of exemption as a voluntary employees' beneficiary association must be filed on Form 1024. Printable 1040ez form The material submitted with the application must show that your organization: Is a voluntary association of employees, Will provide for payment of life, sick, accident, or other benefits to members or their dependents or designated beneficiaries and substantially all of its operations are for this purpose, and Will not allow any of its net earnings to inure to the benefit of any private individual or shareholder except in the form of scheduled benefit payments. Printable 1040ez form To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Printable 1040ez form Note. Printable 1040ez form Under section 4976, the reversion of funds from a section 501(c)(9) organization to the employer who created the beneficiary association may subject the employer to a 100% penalty excise tax on the amount of the reversion. Printable 1040ez form Notice requirement. Printable 1040ez form   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Printable 1040ez form The organization gives notice by filing Form 1024. Printable 1040ez form If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before notice is given. Printable 1040ez form An extension of time for filing the notice can be granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Printable 1040ez form Membership. Printable 1040ez form   Membership of a section 501(c)(9) organization must consist of individuals who are employees and have an employment-related common bond. Printable 1040ez form This common bond can be a common employer (or affiliated employers), coverage under one or more collective bargaining agreements, membership in a labor union, or membership in one or more locals of a national or international labor union. Printable 1040ez form   The membership of an association can include some individuals who are not employees, provided they have an employment-related bond with the employee-members. Printable 1040ez form For example, the owner of a business whose employees are members of the association can be a member. Printable 1040ez form An association will be considered composed of employees if 90% of its total membership on one day of each quarter of its tax year consists of employees. Printable 1040ez form Employees. Printable 1040ez form   Employees include individuals who became entitled to membership because they are or were employees. Printable 1040ez form For example, an individual will qualify as an employee even though the individual is on a leave of absence or has been terminated due to retirement, disability, or layoff. Printable 1040ez form   Generally, membership is voluntary if an affirmative act is required on the part of an employee to become a member. Printable 1040ez form Conversely, membership is involuntary if the designation as a member is due to employee status. Printable 1040ez form However, an association will be considered voluntary if employees are required to be members of the organization as a condition of their employment and they do not incur a detriment (such as a payroll deduction) as a result of their membership. Printable 1040ez form An employer has not imposed involuntary membership on the employee if membership is required as the result of a collective bargaining agreement or as an incident of membership in a labor organization. Printable 1040ez form Payment of benefits. Printable 1040ez form   The information submitted with your application must show that your organization will pay life, sick, accident, supplemental unemployment, or other similar benefits. Printable 1040ez form The benefits can be provided directly by your association or indirectly by your association through the payments of premiums to an insurance company (or fees to a medical clinic). Printable 1040ez form Benefits can be in the form of medical, clinical, or hospital services, transportation furnished for medical care, or money payments. Printable 1040ez form Nondiscrimination requirements. Printable 1040ez form   An organization that is part of a plan will not be exempt unless the plan meets certain nondiscrimination requirements. Printable 1040ez form However, if the organization is part of a plan that is a collective bargaining agreement that was the subject of good faith bargaining between employee organizations and employers, the plan need not meet these requirements for the organization to qualify as tax exempt. Printable 1040ez form   A plan meets the nondiscrimination requirements only if both of the following statements are true. Printable 1040ez form Each class of benefits under the plan is provided under a classification of employees that is set forth in the plan and does not discriminate in favor of employees who are highly compensated individuals. Printable 1040ez form The benefits provided under each class of benefits do not discriminate in favor of highly compensated individuals. Printable 1040ez form A life insurance, disability, severance pay, or supplemental unemployment compensation benefit does not discriminate in favor of highly compensated individuals merely because the benefits available bear a uniform relationship to the total compensation, or the basic or regular rate of compensation, of employees covered by the plan. Printable 1040ez form   For purposes of determining whether a plan meets the nondiscrimination requirements, the employer can elect to exclude all disability or severance payments payable to individuals who are in pay status as of January 1, 1985. Printable 1040ez form This will not apply to any increase in such payment by any plan amendment adopted after June 22, 1984. Printable 1040ez form   If a plan provides a benefit for which there is a nondiscrimination provision provided under Chapter 1 of the Internal Revenue Code as a condition of that benefit being excluded from gross income, these nondiscrimination requirements do not apply. Printable 1040ez form The benefit will be considered nondiscriminatory only if it meets the nondiscrimination provision of the applicable Code section. Printable 1040ez form For example, benefits provided under a medical reimbursement plan would meet the nondiscrimination requirements for an association, if the benefits meet the nondiscrimination requirements of section 105(h)(3) and 105(h)(4). Printable 1040ez form Excluded employees. Printable 1040ez form   Certain employees who are not covered by a plan can be excluded from consideration in applying these requirements. Printable 1040ez form These include employees: Who have not completed 3 years of service, Who have not attained age 21, Who are seasonal or less than half-time employees, Who are not in the plan and who are included in a unit of employees covered by a collective bargaining agreement if the class of benefits involved was the subject of good faith bargaining, or Who are nonresident aliens and who receive no earned income from the employer that has United States source income. Printable 1040ez form Highly compensated individual. Printable 1040ez form   A highly compensated individual is one who: Owned 5 percent or more of the employer at any time during the current year or the preceding year, Received more than $115,000 in compensation from the employer for the preceding year (the amount is annualized for inflation. Printable 1040ez form Go to IRS. Printable 1040ez form gov, and search “Pension Plan Limitation” for the year), and Was among the top 20% of employees by compensation for the preceding year. Printable 1040ez form However, the employer can choose not to have (3) apply. Printable 1040ez form Aggregation rules. Printable 1040ez form   The employer can choose to treat two or more plans as one plan for purposes of meeting the nondiscrimination requirements. Printable 1040ez form Employees of controlled groups of corporations, trades, or businesses under common control, or members of an affiliated service group, are treated as employees of a single employer. Printable 1040ez form Leased employees are treated as employees of the recipient. Printable 1040ez form One employee. Printable 1040ez form   A trust created to provide benefits to one employee will not qualify as a voluntary employees' beneficiary association under section 501(c)(9). Printable 1040ez form Supplemental Unemployment Benefit Trusts (501(c)(17)) A trust or trusts forming part of a written plan (established and maintained by an employer, his or her employees, or both) providing solely for the payment of supplemental unemployment compensation benefits must file the application for recognition of exemption on Form 1024. Printable 1040ez form The trust must be a valid, existing trust under local law and must be evidenced by an executed document. Printable 1040ez form A conformed copy of the plan of which the trust is a part should be attached to the application. Printable 1040ez form To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Printable 1040ez form Note. Printable 1040ez form Under section 4976, the reversion of funds from a section 501(c)(17) organization to the employer who created the supplemental unemployment benefit trust may subject the employer to a 100% penalty excise tax on the amount of the reversion. Printable 1040ez form Notice requirement. Printable 1040ez form   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Printable 1040ez form The organization gives notice by filing Form 1024. Printable 1040ez form If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before such notice is given. Printable 1040ez form An extension of time for filing the notice is granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Printable 1040ez form Types of payments. Printable 1040ez form   You must show that the supplemental unemployment compensation benefits will be benefits paid to an employee because of the employee's involuntary separation from employment (whether or not the separation is temporary) resulting directly from a reduction-in-force, discontinuance of a plant or operation, or other similar conditions. Printable 1040ez form In addition, sickness and accident benefits (but not vacation, retirement, or death benefits) may be included in the plan if these are subordinate to the unemployment compensation benefits. Printable 1040ez form Diversion of funds. Printable 1040ez form   It must be impossible under the plan (at any time before the satisfaction of all liabilities with respect to employees under the plan) to use or to divert any of the corpus or income of the trust to any purpose other than the payment of supplemental unemployment compensation benefits (or sickness or accident benefits to the extent just explained). Printable 1040ez form Discrimination in benefits. Printable 1040ez form   Neither the terms of the plan nor the actual payment of benefits can be discriminatory in favor of the company's officers, stockholders, supervisors, or highly paid employees. Printable 1040ez form However, a plan is not discriminatory merely because benefits bear a uniform relationship to compensation or the rate of compensation. Printable 1040ez form Prohibited transactions and exemption. Printable 1040ez form   If your organization is a supplemental unemployment benefit trust and has received a denial of exemption because it engaged in a prohibited transaction, as defined by section 503(b), it can file a claim for exemption in any tax year following the tax year in which the notice of denial was issued. Printable 1040ez form It must file the claim on Form 1024. Printable 1040ez form The organization must include a written declaration that it will not knowingly again engage in a prohibited transaction. Printable 1040ez form An authorized principal officer of your organization must make this declaration under the penalties of perjury. Printable 1040ez form   If your organization has satisfied all requirements as a supplemental unemployment benefit trust described in section 501(c)(17), it will be notified in writing that it has been recognized as exempt. Printable 1040ez form However, the organization will be exempt only for those tax years after the tax year in which the claim for exemption (Form 1024) is filed. Printable 1040ez form Tax year in this case means the established annual accounting period of the organization or, if the organization has not established an annual accounting period, the calendar year. Printable 1040ez form For more information about the requirements for reestablishing an exemption previously denied, contact the IRS. Printable 1040ez form 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like Organizations Each of the following organizations apply for recognition of exemption from federal income tax by filing Form 1024. Printable 1040ez form Benevolent life insurance associations of a purely local character and like organizations. Printable 1040ez form Mutual ditch or irrigation companies and like organizations. Printable 1040ez form Mutual or cooperative telephone companies and like organizations. Printable 1040ez form A like organization is an organization that performs a service comparable to that performed by any one of the above organizations. Printable 1040ez form The information to be provided upon application by each of these organizations is described in this section. Printable 1040ez form For information as to the procedures to follow in applying for exemption, see chapter 1. Printable 1040ez form General requirements. Printable 1040ez form   These organizations must use their income solely to cover losses and expenses, with any excess being returned to members or retained to cover future losses and expenses. Printable 1040ez form They must collect at least 85% of their income from members for the sole purpose of meeting losses and expenses. Printable 1040ez form Mutual character. Printable 1040ez form   These organizations, other than benevolent life insurance associations, must be organized and operated on a mutual or cooperative basis. Printable 1040ez form They are associations of persons or organizations, or both, banded together to provide themselves a mutually desirable service approximately at cost and on a mutual basis. Printable 1040ez form To maintain the mutual characteristic of democratic ownership and control, they must be so organized and operated that their members have the right to choose the management, to receive services at cost, to receive a return of any excess of payments over losses and expenses, and to share in any assets upon dissolution. Printable 1040ez form   The rights and interests of members in the annual savings of the organization must be determined in proportion to their business with the organization. Printable 1040ez form Upon dissolution, gains from the sale of appreciated assets must be distributed to all persons who were members during the period the assets were owned by the organization in proportion to the amount of business done during that period. Printable 1040ez form The bylaws must not provide for forfeiture of a member's rights and interest upon withdrawal or termination. Printable 1040ez form Membership. Printable 1040ez form   Membership of a mutual organization consists of those who join the organization to obtain its services, and have a voice in its management. Printable 1040ez form In a stock company, the stockholders are members. Printable 1040ez form However, a mutual life insurance organization cannot have policyholders other than its members. Printable 1040ez form Losses and expenses. Printable 1040ez form   In furnishing services substantially at cost, an organization must use its income solely for paying losses and expenses. Printable 1040ez form Any excess income not retained in reasonable reserves for future losses and expenses belongs to members in proportion to their patronage or business done with the organization. Printable 1040ez form If such patronage refunds are retained in reasonable amounts for purposes of expanding and improving facilities, retiring capital indebtedness, acquiring other assets, and unexpected expenses, the organization must maintain records sufficient to reflect the equity of each member in the assets acquired with the funds. Printable 1040ez form Distributions of proceeds. Printable 1040ez form   The cooperative may distribute the unexpended balance of collections or assessments remaining on hand at the end of the year to members or patrons prorated on the basis of their patronage or business done with the cooperative. Printable 1040ez form Such distribution represents a refund in the costs of services rendered to the member. Printable 1040ez form The 85% Requirement All of the organizations listed above must submit evidence with their application that they receive 85% or more of their gross income from their members for the sole purpose of meeting losses and expenses. Printable 1040ez form Nevertheless, certain items of income are excluded from the computation of the 85% requirement if the organization is a mutual or cooperative telephone or electric company. Printable 1040ez form Mutual or cooperative telephone company. Printable 1040ez form   A mutual or cooperative telephone company will exclude from the computation of the 85% requirement any income received or accrued from: A nonmember telephone company for the performance of communication services involving the completion of long distance calls to, from, or between members of the mutual or cooperative telephone company, Qualified pole rentals, The sale of display listings in a directory furnished to its members, or The prepayment of a loan created in 1987, 1988, or 1989, under section 306A, 306B, or 311 of the Rural Electrification Act of 1936. Printable 1040ez form Mutual or cooperative electric company. Printable 1040ez form   A mutual or cooperative electric company will exclude from the computation of the 85% requirement any income received or accrued from: Qualified pole rentals, Any provision or sale of electric energy transmission services or ancillary service if the services are provided on a nondiscriminatory open access basis under an open access transmission tariff approved or accepted by the Federal Energy Regulatory Commission (FERC) or under an independent transmission provider agreement approved or accepted by FERC (other than income received or accrued directly or indirectly from a member), The provision or sale of electric energy distribution services or ancillary services if the services are provided on a nondiscriminatory open-access basis to distribute electric energy not owned by the mutual or electric cooperative company: To end-users who are served by distribution facilities not owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), or Generated by a generation facility not owned or leased by the company or any of its members and which is directly connected to distribution facilities owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), Any nuclear decommissioning transaction, or Any asset exchange or conversion transaction. Printable 1040ez form   An electric cooperative's sale of excess fuel at cost in the year of purchase is not income for purposes of determining compliance with the 85% requirement. Printable 1040ez form Qualified pole rental. Printable 1040ez form   The term qualified pole rental means any rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that are used by the company in providing telephone or electric services to its members, and Pursuant to the rental to support one or more wires (in addition to wires described in (1)) for use in connection with the transmission by wire of electricity or of telephone or other communications. Printable 1040ez form   The term rental, for this purpose, includes any sale of the right to use the pole (or other structure). Printable 1040ez form The 85% requirement is applied on the basis of an annual accounting period. Printable 1040ez form Failure of an organization to meet the requirement in a particular year precludes exemption for that year, but has no effect upon exemption for years in which the 85% requirement is met. Printable 1040ez form Gain from the sale or conversion of the organization's property is not considered an amount received from members in determining whether the organization's income consists of amounts collected from members. Printable 1040ez form Because the 85% income test is based on gross income, capital losses cannot be used to reduce capital gains for purposes of this test. Printable 1040ez form Example. Printable 1040ez form   The books of an organization reflect the following for the calendar year. Printable 1040ez form Collections from members $2,400 Short-term capital gains 600 Short-term capital losses 400 Other income None Gross income ($2,400 + $600 =$3000) 100% Collected from members ($2,400) 80%   Since amounts collected from members do not constitute at least 85% of gross income, the organization is not entitled to exemption from federal income tax for the year. Printable 1040ez form   Voluntary contributions in the nature of gifts are not taken into account for purposes of the 85% computation. Printable 1040ez form   Other tax-exempt income besides gifts is considered as income received from other than members in applying the 85% test. Printable 1040ez form   If the 85% test is not met, your organization, if classifiable under this section, will not qualify for exemption as any other type of organization described in this publication. Printable 1040ez form Tax treatment of donations. Printable 1040ez form   Donations to an organization described in this section are not deductible as charitable contributions on the donor's federal income tax return. Printable 1040ez form Local Life Insurance Associations A benevolent life insurance association or an organization seeking recognition of exemption on grounds of similarity to a benevolent life insurance association must submit evidence upon applying for recognition of exemption that it will be of a purely local character, that its excess funds will be refunded to members or retained in reasonable reserves to meet future losses and expenses, and that it meets the 85% income requirement. Printable 1040ez form If an organization issues policies for stipulated cash premiums, or if it requires advance deposits to cover the cost of the insurance and maintains investments from which more than 15% of its income is derived, it will not be entitled to exemption. Printable 1040ez form To establish that your organization is of a purely local character, it should show that its activities will be confined to a particular community, place, or district irrespective of political subdivisions. Printable 1040ez form If the activities of an organization are limited only by the borders of a state, it cannot be purely local in character. Printable 1040ez form A benevolent life insurance association that does not terminate membership when a member moves from the local area in which the association operates will qualify for exemption if it meets the other requirements. Printable 1040ez form A copy of each type of policy issued by your organization should be included with the application for recognition of exemption. Printable 1040ez form Organizations similar to local benevolent life insurance companies. Printable 1040ez form   These organizations include those that in addition to paying death benefits also provide for the payment of sick, accident, or health benefits. Printable 1040ez form However, an organization that pays only sick, accident, or health benefits, but not life insurance benefits, is not an organization similar to a benevolent life insurance association and should not apply for recognition of exemption as described in this section. Printable 1040ez form Burial and funeral benefit insurance organization. Printable 1040ez form   This type of organization can apply for recognition of exemption as an organization similar to a benevolent life insurance company if it establishes that the benefits are paid in cash and if it is not engaged directly in the manufacture of funeral supplies or the performance of funeral services. Printable 1040ez form An organization that provides its benefits in the form of supplies and service is not a life insurance company. Printable 1040ez form Such an organization can seek recognition of exemption from federal income tax, however, as a mutual insurance company other than life. Printable 1040ez form Mutual or Cooperative Associations Mutual ditch or irrigation companies, mutual or cooperative telephone companies, and like organizations need not establish that they are of a purely local character. Printable 1040ez form They can serve noncontiguous areas. Printable 1040ez form Like organization. Printable 1040ez form   A like organization is a cooperative or mutual organization that performs a service similar to mutual ditch, irrigation, telephone, or electric companies. Printable 1040ez form Examples include the following: cooperatives that provide protection of river banks to prevent erosion, water and sewer services, cable television, satellite, television, cellular phone services, two-way radio service, or natural gas services. Printable 1040ez form 501(c)(13) - Cemetery Companies If your organization wishes to obtain recognition of exemption from federal income tax as a cemetery company or a corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, it must file an application on Form 1024. Printable 1040ez form For the procedure to follow to file an application, see Application, Approval, and Appeal Procedures in chapter 1. Printable 1040ez form A nonprofit mutual cemetery company that seeks recognition of exemption should submit evidence with its application that it is owned and operated exclusively for the benefit of its lot owners who hold lots for bona fide burial purposes and not for purposes of resale. Printable 1040ez form A mutual cemetery company that also engages in charitable activities, such as the burial of paupers, will be regarded as operating within this standard. Printable 1040ez form The fact that a mutual cemetery company limits its membership to a particular class of individuals, such as members of a family, will not affect its status as mutual so long as all the other requirements of section 501(c)(13) are met. Printable 1040ez form If your organization is a nonprofit corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, you should show that it is not permitted by its charter to engage in any business not necessarily incident to that purpose. Printable 1040ez form Operating a mortuary is not permitted. Printable 1040ez form However, selling monuments, markers, vaults, and flowers solely for use in the cemetery is permitted if the profits from these sales are used to maintain the cemetery as a whole. Printable 1040ez form How income can be used. Printable 1040ez form   You should show that your organization's earnings are or will be used only in one or more of the following ways. Printable 1040ez form To pay the ordinary and necessary expenses of operating, maintaining, and improving the cemetery or crematorium. Printable 1040ez form To buy cemetery property. Printable 1040ez form To create a fund that will provide a source of income for the perpetual care of the cemetery or a reasonable reserve for any ordinary or necessary purpose. Printable 1040ez form No part of the net earnings of your organization can inure to the benefit of any private shareholder or individual. Printable 1040ez form Ordinary and necessary expenses in connection with the operation, management, maintenance, and improvement of the cemetery are permitted, as are reasonable fees for the services of a manager. Printable 1040ez form Buying cemetery property. Printable 1040ez form   Payments can be made to amortize debt incurred to buy land, but cannot be in the nature of profit distributions. Printable 1040ez form You must show the method used to finance the purchase of the cemetery property and that the purchase price of the land at the time of its sale to the cemetery was not unreasonable. Printable 1040ez form   Except for holders of preferred stock (discussed later), no person can have any interest in the net earnings of a tax-exempt cemetery company or crematorium. Printable 1040ez form Therefore, if property is transferred to the organization in exchange for an interest in the organization's net earnings, the organization will not
Español

Agricultural Marketing Service

The Agricultural Marketing Service supports the fair marketing of U.S. agricultural products.

Contact the Agency or Department

Website: Agricultural Marketing Service

Contact In-Person: Farmers Markets Near You

E-mail:

Address: Room 3071-S, Ag Stop 0201
1400 Independence Avenue, SW

Washington, DC 20250-0273

Forms: Agricultural Marketing Service Forms

The Printable 1040ez Form

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