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Tax Forms 1040

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Tax Forms 1040

Tax forms 1040 5. Tax forms 1040   Manufacturers Taxes Table of Contents Importer. Tax forms 1040 Use considered sale. Tax forms 1040 Lease considered sale. Tax forms 1040 Bonus goods. Tax forms 1040 Taxable Event ExemptionsRequirements for Exempt Sales Credits or Refunds Sport Fishing EquipmentRelated person. Tax forms 1040 Bows, Quivers, Broadheads, and Points Arrow ShaftsExemption for certain wooden arrows. Tax forms 1040 CoalExported. Tax forms 1040 Taxable TiresQualifying intercity or local bus. Tax forms 1040 Qualifying school bus. Tax forms 1040 Gas Guzzler TaxVehicles not subject to tax. Tax forms 1040 Imported automobiles. Tax forms 1040 VaccinesConditions to allowance. Tax forms 1040 Taxable Medical Devices The following discussion of manufacturers taxes applies to the tax on: Sport fishing equipment; Fishing rods and fishing poles; Electric outboard motors; Fishing tackle boxes; Bows, quivers, broadheads, and points; Arrow shafts; Coal; Taxable tires; Gas guzzler automobiles; and Vaccines. Tax forms 1040 Manufacturer. Tax forms 1040   The term “manufacturer” includes a producer or importer. Tax forms 1040 A manufacturer is any person who produces a taxable article from new or raw material, or from scrap, salvage, or junk material, by processing or changing the form of an article or by combining or assembling two or more articles. Tax forms 1040 If you furnish the materials and keep title to those materials and to the finished article, you are considered the manufacturer even though another person actually manufactures the taxable article. Tax forms 1040   A manufacturer who sells a taxable article in knockdown (unassembled) condition is liable for the tax. Tax forms 1040 The person who buys these component parts and assembles a taxable article may also be liable for tax as a further manufacturer depending on the labor, material, and overhead required to assemble the completed article if the article is assembled for business use. Tax forms 1040 Importer. Tax forms 1040   An importer is a person who brings a taxable article into the United States, or withdraws a taxable article from a customs bonded warehouse for sale or use in the United States. Tax forms 1040 Sale. Tax forms 1040   A sale is the transfer of the title to, or the substantial incidents of ownership in, an article to a buyer for consideration that may consist of money, services, or other things. Tax forms 1040 Use considered sale. Tax forms 1040   A manufacturer who uses a taxable article is liable for the tax in the same manner as if it were sold. Tax forms 1040 Lease considered sale. Tax forms 1040   The lease of an article (including any renewal or extension of the lease) by the manufacturer is generally considered a taxable sale. Tax forms 1040 However, for the gas guzzler tax, only the first lease (excluding any renewal or extension) of the automobile by the manufacturer is considered a sale. Tax forms 1040 Manufacturers taxes based on sale price. Tax forms 1040   The manufacturers taxes imposed on the sale of sport fishing equipment, electric outboard motors, and bows are based on the sale price of the article. Tax forms 1040 The taxes imposed on coal are based either on the sale price or the weight. Tax forms 1040   The price for which an article is sold includes the total consideration paid for the article, whether that consideration is in the form of money, services, or other things. Tax forms 1040 However, you include certain charges made when a taxable article is sold and you exclude others. Tax forms 1040 To figure the price on which you base the tax, use the following rules. Tax forms 1040 Include both the following charges in the price. Tax forms 1040 Any charge for coverings or containers (regardless of their nature). Tax forms 1040 Any charge incident to placing the article in a condition packed ready for shipment. Tax forms 1040 Exclude all the following amounts from the price. Tax forms 1040 The manufacturers excise tax, whether or not it is stated as a separate charge. Tax forms 1040 The transportation charges pursuant to the sale. Tax forms 1040 The cost of transportation of goods to a warehouse before their bona fide sale is not excludable. Tax forms 1040 Delivery, insurance, installation, retail dealer preparation charges, and other charges you incur in placing the article in the hands of the purchaser under a bona fide sale. Tax forms 1040 Discounts, rebates, and similar allowances actually granted to the purchaser. Tax forms 1040 Local advertising charges. Tax forms 1040 A charge made separately when the article is sold and that qualifies as a charge for “local advertising” may, within certain limits, be excluded from the sale price. Tax forms 1040 Charges for warranty paid at the purchaser's option. Tax forms 1040 However, a charge for a warranty of an article that the manufacturer requires the purchaser to pay to obtain the article is included in the sale price on which the tax is figured. Tax forms 1040 Bonus goods. Tax forms 1040   Allocate the sale price if you give free nontaxable goods with the purchase of taxable merchandise. Tax forms 1040 Figure the tax only on the sale price attributable to the taxable articles. Tax forms 1040 Example. Tax forms 1040 A manufacturer sells a quantity of taxable articles and gives the purchaser certain nontaxable articles as a bonus. Tax forms 1040 The sale price of the shipment is $1,500. Tax forms 1040 The normal sale price is $2,000: $1,500 for the taxable articles and $500 for the nontaxable articles. Tax forms 1040 Since the taxable items represent 75% of the normal sale price, the tax is based on 75% of the actual sale price, or $1,125 (75% of $1,500). Tax forms 1040 The remaining $375 is allocated to the nontaxable articles. Tax forms 1040 Taxable Event Tax attaches when the title to the article sold passes from the manufacturer to the buyer. Tax forms 1040 When the title passes depends on the intention of the parties as gathered from the contract of sale. Tax forms 1040 In the absence of expressed intention, the legal rules of presumption followed in the jurisdiction where the sale occurs determine when title passes. Tax forms 1040 If the taxable article is used by the manufacturer, the tax attaches at the time use begins. Tax forms 1040 The manufacturer is liable for the tax. Tax forms 1040 Partial payments. Tax forms 1040   The tax applies to each partial payment received when taxable articles are: Leased, Sold conditionally, Sold on installment with chattel mortgage, or Sold on installment with title to pass in the future. Tax forms 1040 To figure the tax, multiply the partial payment by the tax rate in effect at the time of the payment. Tax forms 1040 Exemptions The following sales by the manufacturer are exempt from the manufacturers tax. Tax forms 1040 Sale of an article to a state or local government for the exclusive use of the state or local government. Tax forms 1040 This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Tax forms 1040 State is defined in Definitions in chapter 1. Tax forms 1040 Sale of an article to a nonprofit educational organization for its exclusive use. Tax forms 1040 This exemption does not apply to the taxes on coal, gas guzzlers, and vaccines. Tax forms 1040 Nonprofit educational organization is defined under Communications Tax in chapter 4. Tax forms 1040 Sale of an article to a qualified blood collector organization. Tax forms 1040 This exemption does not apply to gas guzzlers, recreational equipment, and vaccines. Tax forms 1040 Qualified blood collector organizations are defined under Communications Tax in chapter 4. Tax forms 1040 Sale of an article for use by the purchaser as supplies for vessels. Tax forms 1040 This exemption does not apply to the taxes on coal and vaccines. Tax forms 1040 Supplies for vessels means ships' stores, sea stores, or legitimate equipment on vessels of war of the United States or any foreign nation, vessels employed in the fisheries or whaling business, or vessels actually engaged in foreign trade. Tax forms 1040 Sale of an article for use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by the second purchaser for further manufacture. Tax forms 1040 This exemption does not apply to the tax on coal and tires. Tax forms 1040 Use for further manufacture means use in the manufacture or production of an article subject to the manufacturers excise taxes. Tax forms 1040 If you buy articles tax free and resell or use them other than in the manufacture of another article, you are liable for the tax on their resale or use just as if you had manufactured and sold them. Tax forms 1040 Sale of an article for export or for resale by the purchaser to a second purchaser for export. Tax forms 1040 The article may be exported to a foreign country or to a possession of the United States. Tax forms 1040 A vaccine shipped to a possession of the United States is not considered to be exported. Tax forms 1040 If an article is sold tax free for export and the manufacturer does not receive proof of export, described later, the manufacturer is liable for the tax. Tax forms 1040 Sales of articles of native Indian handicraft, such as bows and arrow shafts, manufactured by Indians on reservations, in Indian schools, or under U. Tax forms 1040 S. Tax forms 1040 jurisdiction in Alaska. Tax forms 1040 For tire exemptions, see section 4221(e)(2). Tax forms 1040 Requirements for Exempt Sales The following requirements must be met for a sale to be exempt from the manufacturers tax. Tax forms 1040 Registration requirements. Tax forms 1040   The manufacturer, first purchaser, and second purchaser in the case of resales must be registered. Tax forms 1040 See the Form 637 instructions for more information. Tax forms 1040 Exceptions to registration requirements. Tax forms 1040   Registration is not required for: State or local governments, Foreign purchasers of articles sold or resold for export, The United States, or Parties to a sale of supplies for vessels and aircraft. Tax forms 1040 Certification requirement. Tax forms 1040   If the purchaser is required to be registered, the purchaser must give the manufacturer its registration number and certify the exempt purpose for which the article will be used. Tax forms 1040 The information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with the sale. Tax forms 1040   For a sale to a state or local government, an exemption certificate must be signed by an officer or employee authorized by the state or local government. Tax forms 1040 See Regulations section 48. Tax forms 1040 4221-5(c) for the certificate requirements. Tax forms 1040   For sales for use as supplies for vessels and aircraft, if the manufacturer and purchaser are not registered, the owner or agent of the vessel must provide an exemption certificate to the manufacturer before or at the time of sale. Tax forms 1040 See Regulations section 48. Tax forms 1040 4221-4(d) for the certificate requirements. Tax forms 1040 Proof of export requirement. Tax forms 1040   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof of exportation. Tax forms 1040 See Regulations section 48. Tax forms 1040 4221-3(d) for evidence that qualifies as proof of exportation. Tax forms 1040 Proof of resale for further manufacture requirement. Tax forms 1040   Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof that the article has been resold for use in further manufacture. Tax forms 1040 See Regulations section 48. Tax forms 1040 4221-2(c) for evidence that qualifies as proof of resale. Tax forms 1040 Information to be furnished to purchaser. Tax forms 1040   The manufacturer must indicate to the purchaser that the articles normally would be subject to tax and are being sold tax free for an exempt purpose because the purchaser has provided the required certificate. Tax forms 1040 Credits or Refunds The manufacturer may be eligible to obtain a credit or refund of the manufacturers tax for certain uses, sales, exports, and price readjustments. Tax forms 1040 The claim must set forth in detail the facts upon which the claim is based. Tax forms 1040 Uses, sales, and exports. Tax forms 1040   A credit or refund (without interest) of the manufacturers taxes may be allowable if a tax-paid article is, by any person: Exported, Used or sold for use as supplies for vessels (except for coal and vaccines), Sold to a state or local government for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a nonprofit educational organization for its exclusive use (except for coal, gas guzzlers, and vaccines), Sold to a qualified blood collector organization for its exclusive use (except for gas guzzlers, recreational equipment, and vaccines), or Used for further manufacture of another article subject to the manufacturers taxes (except for coal). Tax forms 1040 Export. Tax forms 1040   If a tax-paid article is exported, the exporter or shipper may claim a credit or refund if the manufacturer waives its right to claim the credit or refund. Tax forms 1040 In the case of a tax-paid article used to make another taxable article, the subsequent manufacturer may claim the credit or refund. Tax forms 1040 Price readjustments. Tax forms 1040   In addition, a credit or refund (without interest) may be allowable for a tax-paid article for which the price is readjusted by reason of return or repossession of the article or a bona fide discount, rebate, or allowance for taxes based on price. Tax forms 1040 Conditions to allowance. Tax forms 1040   To claim a credit or refund in the case of export; supplies for vessels; or sales to a state or local government, nonprofit educational organization, or qualified blood collector organization; the person who paid the tax must certify on the claim that one of the following applies and that the claimant has the required supporting information. Tax forms 1040 The claimant sold the article at a tax-excluded price. Tax forms 1040 The person has repaid, or agreed to repay, the tax to the ultimate vendor of the article. Tax forms 1040 The person has obtained the written consent of the ultimate vendor to make the claim. Tax forms 1040 The ultimate vendor generally is the seller making the sale that gives rise to the overpayment of tax. Tax forms 1040 Claim for further manufacture. Tax forms 1040   To claim a credit or refund for further manufacture, the claimant must include a statement that contains the following. Tax forms 1040 The name and address of the manufacturer and the date of payment. Tax forms 1040 An identification of the article for which the credit or refund is claimed. Tax forms 1040 The amount of tax paid on the article and the date on which it was paid. Tax forms 1040 Information indicating that the article was used as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the manufacturer, or was sold on or in connection with, or with the sale of a second article manufactured or produced by the manufacturer. Tax forms 1040 An identification of the second article. Tax forms 1040   For claims by the exporter or shipper, the claim must contain the proof of export and a statement signed by the person that paid the tax waiving the right to claim a credit or refund. Tax forms 1040 The statement must include the amount of tax paid, the date of payment, and the office to which it was paid. Tax forms 1040 Claim for price readjustment. Tax forms 1040   To claim a credit or refund for a price readjustment, the person who paid the tax must include with the claim, a statement that contains the following. Tax forms 1040 A description of the circumstances that gave rise to the price readjustment. Tax forms 1040 An identification of the article whose price was readjusted. Tax forms 1040 The price at which the article was sold. Tax forms 1040 The amount of tax paid on the article and the date on which it was paid. Tax forms 1040 The name and address of the purchaser. Tax forms 1040 The amount repaid to the purchaser or credited to the purchaser's account. Tax forms 1040 Sport Fishing Equipment A tax of 10% of the sale price is imposed on many articles of sport fishing equipment sold by the manufacturer. Tax forms 1040 This includes any parts or accessories sold on or in connection with the sale of those articles. Tax forms 1040 Pay this tax with Form 720. Tax forms 1040 No tax deposits are required. Tax forms 1040 Sport fishing equipment includes all the following items. Tax forms 1040 Fishing rods and poles (and component parts), fishing reels, fly fishing lines, and other fishing lines not over 130 pounds test, fishing spears, spear guns, and spear tips. Tax forms 1040 Items of terminal tackle, including leaders, artificial lures, artificial baits, artificial flies, fishing hooks, bobbers, sinkers, snaps, drayles, and swivels (but not including natural bait or any item of terminal tackle designed for use and ordinarily used on fishing lines not described in (1)). Tax forms 1040 The following items of fishing supplies and accessories: fish stringers, creels, bags, baskets, and other containers designed to hold fish, portable bait containers, fishing vests, landing nets, gaff hooks, fishing hook disgorgers, and dressing for fishing lines and artificial flies. Tax forms 1040 Fishing tip-ups and tilts. Tax forms 1040 Fishing rod belts, fishing rodholders, fishing harnesses, fish fighting chairs, fishing outriggers, and fishing downriggers. Tax forms 1040 See Revenue Ruling 88-52 in Cumulative Bulletin 1988-1 for a more complete description of the items of taxable equipment. Tax forms 1040 Fishing rods and fishing poles. Tax forms 1040   The tax on fishing rods and fishing poles (and component parts) is 10% of the sales price not to exceed $10 per article. Tax forms 1040 The tax is paid by the manufacturer, producer, or importer. Tax forms 1040 Fishing tackle boxes. Tax forms 1040   The tax on fishing tackle boxes is 3% of the sales price. Tax forms 1040 The tax is paid by the manufacturer, producer, or importer. Tax forms 1040 Electric outboard boat motors. Tax forms 1040   A tax of 3% of the sale price is imposed on the sale by the manufacturer of electric outboard motors. Tax forms 1040 This includes any parts or accessories sold on or in connection with the sale of those articles. Tax forms 1040 Certain equipment resale. Tax forms 1040   The tax on the sale of sport fishing equipment is imposed a second time under the following circumstances. Tax forms 1040 If the manufacturer sells a taxable article to any person, the manufacturer is liable for the tax. Tax forms 1040 If the purchaser or any other person then sells it to a person who is related (discussed next) to the manufacturer, that related person is liable for a second tax on any subsequent sale of the article. Tax forms 1040 The second tax, however, is not imposed if the constructive sale price rules under section 4216(b) apply to the sale by the manufacturer. Tax forms 1040   If the second tax is imposed, a credit for tax previously paid by the manufacturer is available provided the related person can document the tax paid. Tax forms 1040 The documentation requirement is generally satisfied only through submission of copies of actual records of the person that previously paid the tax. Tax forms 1040 Related person. Tax forms 1040   For the tax on sport fishing equipment, a person is a related person of the manufacturer if that person and the manufacturer have a relationship described in section 465(b)(3)(C). Tax forms 1040 Bows, Quivers, Broadheads, and Points The tax on bows is 11% (. Tax forms 1040 11) of the sales price. Tax forms 1040 The tax is paid by the manufacturer, producer, or importer. Tax forms 1040 It applies to bows having a peak draw weight of 30 pounds or more. Tax forms 1040 The tax is also imposed on the sale of any part or accessory suitable for inclusion in or attachment to a taxable bow and any quiver, broadhead, or point suitable for use with arrows described below. Tax forms 1040 Pay this tax with Form 720. Tax forms 1040 No tax deposits are required. Tax forms 1040 Arrow Shafts The tax on arrow shafts is listed on Form 720. Tax forms 1040 The tax is paid by the manufacturer, producer, or importer of any arrow shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow that after its assembly meets either of the following conditions. Tax forms 1040 It measures 18 inches or more in overall length. Tax forms 1040 It measures less than 18 inches in overall length but is suitable for use with a taxable bow, described earlier. Tax forms 1040 Exemption for certain wooden arrows. Tax forms 1040   After October 3, 2008, the tax does not apply to any shaft made of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) and used in the manufacture of any arrow that after its assembly meets both of the following conditions. Tax forms 1040 It measures 5/16 of an inch or less in diameter. Tax forms 1040 It is not suitable for use with a taxable bow, described earlier. Tax forms 1040 Pay this tax with Form 720. Tax forms 1040 No tax deposits are required. Tax forms 1040 Coal A tax is imposed on the first sale of coal mined in the United States. Tax forms 1040 The producer of the coal is liable for the tax. Tax forms 1040 The producer is the person who has vested ownership of the coal under state law immediately after the coal is severed from the ground. Tax forms 1040 Determine vested ownership without regard to any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. Tax forms 1040 A producer includes any person who extracts coal from coal waste refuse piles (or from the silt waste product that results from the wet washing of coal). Tax forms 1040 The tax is not imposed on coal extracted from a riverbed by dredging if it can be shown that the coal has been taxed previously. Tax forms 1040 Tax rates. Tax forms 1040   The tax on underground-mined coal is the lower of: $1. Tax forms 1040 10 a ton, or 4. Tax forms 1040 4% of the sale price. Tax forms 1040   The tax on surface-mined coal is the lower of: 55 cents a ton, or 4. Tax forms 1040 4% of the sale price. Tax forms 1040   Coal will be taxed at the 4. Tax forms 1040 4% rate if the selling price is less than $25 a ton for underground-mined coal and less than $12. Tax forms 1040 50 a ton for surface-mined coal. Tax forms 1040 Apply the tax proportionately if a sale or use includes a portion of a ton. Tax forms 1040 Example. Tax forms 1040 If you sell 21,000 pounds (10. Tax forms 1040 5 tons) of coal from an underground mine for $525, the price per ton is $50. Tax forms 1040 The tax is $1. Tax forms 1040 10 × 10. Tax forms 1040 5 tons ($11. Tax forms 1040 55). Tax forms 1040 Coal production. Tax forms 1040   Coal is produced from surface mines if all geological matter (trees, earth, rock) above the coal is removed before the coal is mined. Tax forms 1040 Treat coal removed by auger and coal reclaimed from coal waste refuse piles as produced from a surface mine. Tax forms 1040   Treat coal as produced from an underground mine when the coal is not produced from a surface mine. Tax forms 1040 In some cases, a single mine may yield coal from both surface mining and underground mining. Tax forms 1040 Determine if the coal is from a surface mine or an underground mine for each ton of coal produced and not on a mine-by-mine basis. Tax forms 1040 Determining tonnage or selling price. Tax forms 1040   The producer pays the tax on coal at the time of sale or use. Tax forms 1040 In figuring the selling price for applying the tax, the point of sale is f. Tax forms 1040 o. Tax forms 1040 b. Tax forms 1040 (free on board) mine or f. Tax forms 1040 o. Tax forms 1040 b. Tax forms 1040 cleaning plant if you clean the coal before selling it. Tax forms 1040 This applies even if you sell the coal for a delivered price. Tax forms 1040 The f. Tax forms 1040 o. Tax forms 1040 b. Tax forms 1040 mine or f. Tax forms 1040 o. Tax forms 1040 b. Tax forms 1040 cleaning plant is the point at which you figure the number of tons sold for applying the applicable tonnage rate, and the point at which you figure the sale price for applying the 4. Tax forms 1040 4% rate. Tax forms 1040   The tax applies to the full amount of coal sold. Tax forms 1040 However, the IRS allows a calculated reduction of the taxable weight of the coal for the weight of the moisture in excess of the coal's inherent moisture content. Tax forms 1040 Include in the sale price any additional charge for a freeze-conditioning additive in figuring the tax. Tax forms 1040   Do not include in the sales price the excise tax imposed on coal. Tax forms 1040 Coal used by the producer. Tax forms 1040   The tax on coal applies if the coal is used by the producer in other than a mining process. Tax forms 1040 A mining process means the same for this purpose as for percentage depletion. Tax forms 1040 For example, the tax does not apply if, before selling the coal, you break it, clean it, size it, or apply any other process considered mining under the rules for depletion. Tax forms 1040 In this case, the tax applies only when you sell the coal. Tax forms 1040 The tax does not apply to coal used as fuel in the coal drying process since it is considered to be used in a mining process. Tax forms 1040 However, the tax does apply when you use the coal as fuel or as an ingredient in making coke since the coal is not used in a mining process. Tax forms 1040   You must use a constructive sale price to figure the tax under the 4. Tax forms 1040 4% rate if you use the coal in other than a mining process. Tax forms 1040 Base your constructive sale price on sales of a like kind and grade of coal by you or other producers made f. Tax forms 1040 o. Tax forms 1040 b. Tax forms 1040 mine or cleaning plant. Tax forms 1040 Normally, you use the same constructive price used to figure your percentage depletion deduction. Tax forms 1040 Blending. Tax forms 1040   If you blend surface-mined coal with underground-mined coal during the cleaning process, you must figure the excise tax on the sale of the blended, cleaned coal. Tax forms 1040 Figure the tax separately for each type of coal in the blend. Tax forms 1040 Base the tax on the amount of each type in the blend if you can determine the proportion of each type of coal contained in the final blend. Tax forms 1040 Base the tax on the ratio of each type originally put into the cleaning process if you cannot determine the proportion of each type of coal in the blend. Tax forms 1040 However, the tax is limited to 4. Tax forms 1040 4% of the sale price per ton of the blended coal. Tax forms 1040 Exemption from tax. Tax forms 1040   The tax does not apply to sales of lignite and imported coal. Tax forms 1040 The only other exemption from the tax on the sale of coal is for coal exported as discussed next. Tax forms 1040 Exported. Tax forms 1040   The tax does not apply to the sale of coal if the coal is in the stream of export when sold by the producer and the coal is actually exported. Tax forms 1040   Coal is in the stream of export when sold by the producer if the sale is a step in the exportation of the coal to its ultimate destination in a foreign country. Tax forms 1040 For example, coal is in the stream of export when: The coal is loaded on an export vessel and title is transferred from the producer to a foreign purchaser, or The producer sells the coal to an export broker in the United States under terms of a contract showing that the coal is to be shipped to a foreign country. Tax forms 1040   Proof of export includes any of the following items. Tax forms 1040 A copy of the export bill of lading issued by the delivering carrier. Tax forms 1040 A certificate signed by the export carrier's agent or representative showing actual exportation of the coal. Tax forms 1040 A certificate of landing signed by a customs officer of the foreign country to which the coal is exported. Tax forms 1040 If the foreign country does not have a customs administrator, a statement of the foreign consignee showing receipt of the coal. Tax forms 1040 Taxable Tires Taxable tires are divided into three categories for reporting and figuring the tax as described below. Tax forms 1040 A tax is imposed on taxable tires sold by the manufacturer, producer, or importer at the rate of $. Tax forms 1040 0945 ($. Tax forms 1040 04725 in the case of a biasply tire or super single tire) for each 10 pounds of the maximum rated load capacity over 3,500 pounds. Tax forms 1040 The three categories for reporting the tax and the tax rate are listed below. Tax forms 1040 Taxable tires other than biasply or super single tires at $. Tax forms 1040 0945. Tax forms 1040 Taxable tires, biasply or super single tires (other than super single tires designed for steering) at $. Tax forms 1040 04725. Tax forms 1040 Taxable tires, super single tires designed for steering at $. Tax forms 1040 0945. Tax forms 1040 A taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal regulations for highway use. Tax forms 1040 A biasply tire is a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the centerline of the tread. Tax forms 1040 A super single tire is a tire greater than 13 inches in cross section width designed to replace 2 tires in a dual fitment. Tax forms 1040 Special rule, manufacturer's retail stores. Tax forms 1040   The excise tax on taxable tires is imposed at the time the taxable tires are delivered to the manufacturer-owned retail stores, not at the time of sale. Tax forms 1040 Tires on imported articles. Tax forms 1040   The importer of an article equipped with taxable tires is treated as the manufacturer of the tires and is liable for the taxable tire excise tax when the article is sold (except in the case of an automobile bus chassis or body with tires). Tax forms 1040 Tires exempt from tax. Tax forms 1040   The tax on taxable tires does not apply to the following items. Tax forms 1040 Domestically recapped or retreaded tires if the tires have been sold previously in the United States and were taxable tires at the time of sale. Tax forms 1040 Tire carcasses not suitable for commercial use. Tax forms 1040 Tires for use on qualifying intercity, local, and school buses. Tax forms 1040 For tax-free treatment, the registration requirements discussed earlier under Requirements for Exempt Sales apply. Tax forms 1040 Tires sold for the exclusive use of the Department of Defense or the Coast Guard. Tax forms 1040 Tires of a type used exclusively on mobile machinery. Tax forms 1040 A taxable tire used on mobile machinery is not exempt from tax. Tax forms 1040 Qualifying intercity or local bus. Tax forms 1040   This is any bus used mainly (more than 50%) to transport the general public for a fee and that either operates on a schedule along regular routes or seats at least 20 adults (excluding the driver). Tax forms 1040 Qualifying school bus. Tax forms 1040   This is any bus substantially all the use (85% or more) of which is to transport students and employees of schools. Tax forms 1040 Credit or refund. Tax forms 1040   A credit or refund (without interest) is allowable on tax-paid tires if the tires have been: Exported; Sold to a state or local government for its exclusive use; Sold to a nonprofit educational organization for its exclusive use (as defined under Communications Tax in chapter 4); Sold to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood; Used or sold for use as supplies for vessels; or Sold in connection with qualified intercity, local, or school buses. Tax forms 1040   Also, a credit or refund (without interest) is allowable on tax-paid tires sold by any person on, or in connection with, any other article that is sold or used in an activity listed above. Tax forms 1040   The person who paid the tax is eligible to make the claim. Tax forms 1040 Gas Guzzler Tax Tax is imposed on the sale by the manufacturer of automobiles of a model type that has a fuel economy standard as measured by the Environmental Protection Agency (EPA) of less than 22. Tax forms 1040 5 miles per gallon. Tax forms 1040 If you import an automobile for personal use, you may be liable for this tax. Tax forms 1040 Figure the tax on Form 6197, as discussed later. Tax forms 1040 The tax rate is based on fuel economy rating. Tax forms 1040 The tax rates for the gas guzzler tax are shown on Form 6197. Tax forms 1040 A person that lengthens an existing automobile is the manufacturer of an automobile. Tax forms 1040 Automobiles. Tax forms 1040   An automobile (including limousines) means any four-wheeled vehicle that is: Rated at an unloaded gross vehicle weight of 6,000 pounds or less, Propelled by an engine powered by gasoline or diesel fuel, and Intended for use mainly on public streets, roads, and highways. Tax forms 1040 Vehicles not subject to tax. Tax forms 1040   For the gas guzzler tax, the following vehicles are not considered automobiles. Tax forms 1040 Limousines with a gross unloaded vehicle weight of more than 6,000 pounds. Tax forms 1040 Vehicles operated exclusively on a rail or rails. Tax forms 1040 Vehicles sold for use and used primarily: As ambulances or combination ambulance-hearses, For police or other law enforcement purposes by federal, state, or local governments, or For firefighting purposes. Tax forms 1040 Vehicles treated under 49 U. Tax forms 1040 S. Tax forms 1040 C. Tax forms 1040 32901 (1978) as non-passenger automobiles. Tax forms 1040 This includes limousines manufactured primarily to transport more than 10 persons. Tax forms 1040   The manufacturer can sell a vehicle described in item (3) tax free only when the sale is made directly to a purchaser for the described emergency use and the manufacturer and purchaser (other than a state or local government) are registered. Tax forms 1040   Treat an Indian tribal government as a state only if the police or other law enforcement purposes are an essential tribal government function. Tax forms 1040 Model type. Tax forms 1040   Model type is a particular class of automobile as determined by EPA regulations. Tax forms 1040 Fuel economy. Tax forms 1040   Fuel economy is the average number of miles an automobile travels on a gallon of gasoline (or diesel fuel) rounded to the nearest 0. Tax forms 1040 1 mile as figured by the EPA. Tax forms 1040 Imported automobiles. Tax forms 1040   The tax also applies to automobiles that do not have a prototype-based fuel economy rating assigned by the EPA. Tax forms 1040 An automobile imported into the United States without a certificate of conformity to United States emission standards and that has no assigned fuel economy rating must be either: Converted by installation of emission controls to conform in all material respects to an automobile already certified for sale in the United States, or Modified by installation of emission control components and individually tested to demonstrate emission compliance. Tax forms 1040   An imported automobile that has been converted to conform to an automobile already certified for sale in the United States may use the fuel economy rating assigned to that certified automobile. Tax forms 1040   A fuel economy rating is not generally available for modified imported automobiles because the EPA does not require a highway fuel economy test on them. Tax forms 1040 A separate highway fuel economy test would be required to devise a fuel economy rating (otherwise the automobile is presumed to fall within the lowest fuel economy rating category). Tax forms 1040   For more information about fuel economy ratings for imported automobiles, see Revenue Ruling 86-20 and Revenue Procedure 86-9 in Cumulative Bulletin 1986-1, and Revenue Procedure 87-10 in Cumulative Bulletin 1987-1. Tax forms 1040 Exemptions. Tax forms 1040   No one is exempt from the gas guzzler tax, including the federal government, state and local governments, qualified blood collector organizations, and nonprofit educational organizations. Tax forms 1040 However, see Vehicles not subject to tax, earlier. Tax forms 1040 Form 6197. Tax forms 1040   Use Form 6197 to figure your tax liability for each quarter. Tax forms 1040 Attach Form 6197 to your Form 720 for the quarter. Tax forms 1040 See the Form 6197 instructions for more information and the one-time filing rules. Tax forms 1040 Credit or refund. Tax forms 1040   If the manufacturer paid the tax on a vehicle that is used or resold for an emergency use (see item (3) under Vehicles not subject to tax), the manufacturer can claim a credit or refund. Tax forms 1040 For information about how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Tax forms 1040 Vaccines Tax is imposed on certain vaccines sold by the manufacturer in the United States. Tax forms 1040 A taxable vaccine means any of the following vaccines. Tax forms 1040 Any vaccine containing diphtheria toxoid. Tax forms 1040 Any vaccine containing tetanus toxoid. Tax forms 1040 Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens. Tax forms 1040 Any vaccine containing polio virus. Tax forms 1040 Any vaccine against measles. Tax forms 1040 Any vaccine against mumps. Tax forms 1040 Any vaccine against rubella. Tax forms 1040 Any vaccine against hepatitis A. Tax forms 1040 Any vaccine against hepatitis B. Tax forms 1040 Any vaccine against chicken pox. Tax forms 1040 Any vaccine against rotavirus gastroenteritis. Tax forms 1040 Any HIB vaccine. Tax forms 1040 Any conjugate vaccine against streptococcus pneumoniae. Tax forms 1040 Any trivalent vaccine against influenza or any other vaccine against influenza. Tax forms 1040 Any meningococcal vaccine. Tax forms 1040 Any vaccine against the human papillomavirus. Tax forms 1040 The effective date for the tax on any vaccine against influenza, other than trivalent influenza vaccines, is the later of August 1, 2013, or the date the Secretary of Health and Human Services lists a vaccine against seasonal influenza for purposes of compensation for any vaccine-related injury or death through the Vaccine Injury Compensation Trust Fund. Tax forms 1040 The tax is $. Tax forms 1040 75 per dose of each taxable vaccine. Tax forms 1040 The tax per dose on a vaccine that contains more than one taxable vaccine is $. Tax forms 1040 75 times the number of taxable vaccines. Tax forms 1040 Taxable use. Tax forms 1040   Any manufacturer (including a governmental entity) that uses a taxable vaccine before it is sold will be liable for the tax in the same manner as if the vaccine was sold by the manufacturer. Tax forms 1040 Credit or refund. Tax forms 1040   A credit or refund (without interest) is available if the vaccine is: Returned to the person who paid the tax (other than for resale), or Destroyed. Tax forms 1040 The claim for a credit or refund must be filed within 6 months after the vaccine is returned or destroyed. Tax forms 1040 Conditions to allowance. Tax forms 1040   To claim a credit or refund, the person who paid the tax must have repaid or agreed to repay the tax to the ultimate purchaser of the vaccine or obtained the written consent of such purchaser to allowance of the credit or refund. Tax forms 1040 Taxable Medical Devices Taxable medical devices. Tax forms 1040   The tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device is 2. Tax forms 1040 3% (. Tax forms 1040 023) of the sales price. Tax forms 1040 A taxable medical device is a device that is listed as a device with the Food and Drug Administration (FDA) under section 510(j) of the Federal Food, Drug, and Cosmetic Act and 21 CFR part 807, pursuant to FDA requirements. Tax forms 1040 There are specific exemptions for eyeglasses, contact lenses, and hearing aids. Tax forms 1040 There is also an exemption for devices that are determined by the Secretary to be of a type that are generally purchased by the general public at retail for individual use (this exemption is known as the retail exemption). Tax forms 1040 See T. Tax forms 1040 D. Tax forms 1040 9604 for information on how to determine whether a device falls within the retail exemption, and examples of how a taxpayer might evaluate a given device. Tax forms 1040 More information. Tax forms 1040   For more information on the medical device tax, see section 4191, T. Tax forms 1040 D. Tax forms 1040 9604, and Notice 2012-77. Tax forms 1040 You can find T. Tax forms 1040 D. Tax forms 1040 9604 and Notice 2012-77 on pages 730 and 781, respectively, of I. Tax forms 1040 R. Tax forms 1040 B. Tax forms 1040 2012-52 at www. Tax forms 1040 irs. Tax forms 1040 gov/pub/irs-irbs/irb12-52. Tax forms 1040 pdf. Tax forms 1040 Prev  Up  Next   Home   More Online Publications
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The Tax Forms 1040

Tax forms 1040 19. Tax forms 1040   Education- Related Adjustments Table of Contents Introduction Useful Items - You may want to see: Student Loan Interest DeductionStudent Loan Interest Defined Can You Claim the Deduction How Much Can You Deduct How Do You Figure the Deduction Tuition and Fees DeductionCan You Claim the Deduction What Expenses Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses How Much Can You Deduct Educator Expenses Introduction This chapter discusses the education-related adjustment you can deduct in figuring your adjusted gross income. Tax forms 1040 This chapter covers the student loan interest deduction, tuition and fees deduction, and the deduction for educator expenses. Tax forms 1040 Useful Items - You may want to see: Publication 970 Tax Benefits for Education Student Loan Interest Deduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. Tax forms 1040 However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. Tax forms 1040 For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. Tax forms 1040 This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. Tax forms 1040 Table 19-1 summarizes the features of the student loan interest deduction. Tax forms 1040 Table 19-1. Tax forms 1040 Student Loan Interest Deduction at a Glance Do not rely on this table alone. Tax forms 1040 Refer to the text for more details. Tax forms 1040 Feature Description Maximum benefit You can reduce your income subject to tax by up to $2,500. Tax forms 1040 Loan qualifications Your student loan: •  must have been taken out solely to pay qualified education expenses, and   • cannot be from a related person or made under a qualified employer plan. Tax forms 1040 Student qualifications The student must be: • you, your spouse, or your dependent, and   • enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. Tax forms 1040 Time limit on deduction You can deduct interest paid during the remaining period of your student loan. Tax forms 1040 Phaseout The amount of your deduction depends on your income level. Tax forms 1040 Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. Tax forms 1040 It includes both required and voluntary interest payments. Tax forms 1040 Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent (defined in chapter 3) when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period when the student is an eligible student. Tax forms 1040 Loans from the following sources are not qualified student loans. Tax forms 1040 A related person. Tax forms 1040 A qualified employer plan. Tax forms 1040 Exceptions. Tax forms 1040   For purposes of the student loan interest deduction, the following are exceptions to the general rules for dependents. Tax forms 1040 An individual can be your dependent even if you are the dependent of another taxpayer. Tax forms 1040 An individual can be your dependent even if the individual files a joint return with a spouse. Tax forms 1040 An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). Tax forms 1040    Reasonable period of time. Tax forms 1040   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. Tax forms 1040   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. Tax forms 1040 The expenses relate to a specific academic period. Tax forms 1040 The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. Tax forms 1040   If neither of the above situations applies, the reasonable period of time is determined based on all the relevant facts and circumstances. Tax forms 1040 Academic period. Tax forms 1040   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. Tax forms 1040 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. Tax forms 1040 Eligible student. Tax forms 1040   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Tax forms 1040 Enrolled at least half-time. Tax forms 1040   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. Tax forms 1040   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Tax forms 1040 However, the standard may not be lower than any of those established by the U. Tax forms 1040 S. Tax forms 1040 Department of Education under the Higher Education Act of 1965. Tax forms 1040 Related person. Tax forms 1040   You cannot deduct interest on a loan you get from a related person. Tax forms 1040 Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. Tax forms 1040 ), Your lineal descendants (children, grandchildren, etc. Tax forms 1040 ), and Certain corporations, partnerships, trusts, and exempt organizations. Tax forms 1040 Qualified employer plan. Tax forms 1040   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. Tax forms 1040 Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. Tax forms 1040 They include amounts paid for the following items. Tax forms 1040 Tuition and fees. Tax forms 1040 Room and board. Tax forms 1040 Books, supplies, and equipment. Tax forms 1040 Other necessary expenses (such as transportation). Tax forms 1040 The cost of room and board qualifies only to the extent that it is not more than: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or If greater, the actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Tax forms 1040 Eligible educational institution. Tax forms 1040   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. Tax forms 1040 S. Tax forms 1040 Department of Education. Tax forms 1040 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Tax forms 1040   Certain educational institutions located outside the United States also participate in the U. Tax forms 1040 S. Tax forms 1040 Department of Education's Federal Student Aid (FSA) programs. Tax forms 1040   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. Tax forms 1040   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. Tax forms 1040 The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. Tax forms 1040    The educational institution should be able to tell you if it is an eligible educational institution. Tax forms 1040 Adjustments to qualified education expenses. Tax forms 1040   You must reduce your qualified education expenses by certain tax-free items (such as the tax-free part of scholarships and fellowships). Tax forms 1040 See chapter 4 of Publication 970 for details. Tax forms 1040 Include as Interest In addition to simple interest on the loan, certain loan origination fees, capitalized interest, interest on revolving lines of credit, and interest on refinanced student loans can be student loan interest if all other requirements are met. Tax forms 1040 Loan origination fee. Tax forms 1040   In general, this is a one-time fee charged by the lender when a loan is made. Tax forms 1040 To be deductible as interest, the fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. Tax forms 1040 A loan origination fee treated as interest accrues over the life of the loan. Tax forms 1040 Capitalized interest. Tax forms 1040    This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. Tax forms 1040 Interest on revolving lines of credit. Tax forms 1040   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. Tax forms 1040 See Qualified Education Expenses , earlier. Tax forms 1040 Interest on refinanced student loans. Tax forms 1040   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. Tax forms 1040 If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. Tax forms 1040 Voluntary interest payments. Tax forms 1040   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. Tax forms 1040 Do Not Include as Interest You cannot claim a student loan interest deduction for any of the following items. Tax forms 1040 Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. Tax forms 1040 Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. Tax forms 1040 Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. Tax forms 1040 For more information, see Student Loan Repayment Assistance in chapter 5 of Publication 970. Tax forms 1040 Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. Tax forms 1040 Your filing status is any filing status except married filing separately. Tax forms 1040 No one else is claiming an exemption for you on his or her tax return. Tax forms 1040 You are legally obligated to pay interest on a qualified student loan. Tax forms 1040 You paid interest on a qualified student loan. Tax forms 1040 Interest paid by others. Tax forms 1040   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. Tax forms 1040 See chapter 4 of Publication 970 for more information. Tax forms 1040 No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, home mortgage interest). Tax forms 1040 How Much Can You Deduct Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. Tax forms 1040 However, the amount determined above is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). Tax forms 1040 You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). Tax forms 1040 For details on figuring your MAGI, see chapter 4 of Publication 970. Tax forms 1040 How Do You Figure the Deduction Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the Form 1040 or Form 1040A instructions. Tax forms 1040 However, if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1 in chapter 4 of Publication 970. Tax forms 1040 To help you figure your student loan interest deduction, you should receive Form 1098-E, Student Loan Interest Statement. Tax forms 1040 Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. Tax forms 1040 For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. Tax forms 1040 Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. Tax forms 1040 However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. Tax forms 1040 For information on allocating payments between interest and principal, see chapter 4 of Publication 970. Tax forms 1040 To claim the deduction, enter the allowable amount on Form 1040, line 33, or Form 1040A, line 18. Tax forms 1040 Tuition and Fees Deduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). Tax forms 1040 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. Tax forms 1040 The qualified expenses must be for higher education, as explained later under What Expenses Qualify . Tax forms 1040 The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Tax forms 1040 Table 19-2 summarizes the features of the tuition and fees deduction. Tax forms 1040 You may be able to take a credit for your education expenses instead of a deduction. Tax forms 1040 You can choose the one that will give you the lower tax. Tax forms 1040 See chapter 35, Education Credits, for details about the credits. Tax forms 1040 Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Tax forms 1040 Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Tax forms 1040 You paid qualified education expenses of higher education in 2013 for academic periods beginning in 2013 and those beginning in the first three months of 2014. Tax forms 1040 You paid the education expenses for an eligible student. Tax forms 1040 The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption (defined in chapter 3) on your tax return. Tax forms 1040 Qualified education expenses are defined under What Expenses Qualify . Tax forms 1040 Eligible students are defined later under Who Is an Eligible Student . Tax forms 1040 Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Tax forms 1040 Your filing status is married filing separately. Tax forms 1040 Another person can claim an exemption for you as a dependent on his or her tax return. Tax forms 1040 You cannot take the deduction even if the other person does not actually claim that exemption. Tax forms 1040 Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Tax forms 1040 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. Tax forms 1040 More information on nonresident aliens can be found in Publication 519, U. Tax forms 1040 S. Tax forms 1040 Tax Guide for Aliens. Tax forms 1040 You or anyone else claims an American opportunity or lifetime learning credit in 2013 with respect to expenses of the student for whom the qualified education expenses were paid. Tax forms 1040 However, a state tax credit will not disqualify you from claiming a tuition and fees deduction. Tax forms 1040 Table 19-2. Tax forms 1040 Tuition and Fees Deduction at a Glance Do not rely on this table alone. Tax forms 1040 Refer to the text for more details. Tax forms 1040 Question   Answer What is the maximum benefit?   You can reduce your income subject to tax by up to $4,000. Tax forms 1040 Where is the deduction taken?   As an adjustment to income on Form 1040, line 34, or Form 1040A, line 19. Tax forms 1040 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. Tax forms 1040 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. Tax forms 1040 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. Tax forms 1040 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 (defined earlier under Student Loan Interest Deduction ) beginning in 2013 or in the first 3 months of 2014. Tax forms 1040 Payments with borrowed funds. Tax forms 1040   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Tax forms 1040 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. Tax forms 1040 Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. Tax forms 1040 Student withdraws from class(es). Tax forms 1040   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Tax forms 1040 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. Tax forms 1040 Eligible educational institution. Tax forms 1040   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. Tax forms 1040 S. Tax forms 1040 Department of Education. Tax forms 1040 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Tax forms 1040 The educational institution should be able to tell you if it is an eligible educational institution. Tax forms 1040   Certain educational institutions located outside the United States also participate in the U. Tax forms 1040 S. Tax forms 1040 Department of Education's Federal Student Aid (FSA) programs. Tax forms 1040 Academic period. Tax forms 1040    An academic period is any quarter, semester, trimester, or any other period of study as reasonably determined by an eligible educational institution. Tax forms 1040 If an eligible educational institution uses credit hours and does not have academic terms, each payment period may be treated as an academic period. Tax forms 1040 Related expenses. Tax forms 1040   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses for the tuition and fees deduction only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Tax forms 1040 Prepaid expenses. Tax forms 1040   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring the tuition and fees deduction. Tax forms 1040 See Academic period, earlier. Tax forms 1040 For example, if 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 the tuition and fees deduction for 2013 only if you meet all the other requirements. Tax forms 1040    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 tuition and fees deduction. Tax forms 1040 No Double Benefit Allowed You cannot do any of the following. Tax forms 1040 Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Tax forms 1040 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. Tax forms 1040 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). Tax forms 1040 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. Tax forms 1040 See Figuring the Taxable Portion of a Distribution in chapter 7 (Coverdell ESA) and chapter 8 (QTP) of Publication 970. Tax forms 1040 Deduct qualified education expenses that have been paid with tax-free interest on U. Tax forms 1040 S. Tax forms 1040 savings bonds (Form 8815). Tax forms 1040 See Figuring the Tax-Free Amount in chapter 10 of Publication 970. Tax forms 1040 Deduct qualified education expenses that have been paid with tax-free educational assistance such as a scholarship, grant, or employer-provided educational assistance. Tax forms 1040 See Adjustments to qualified education expenses, later. Tax forms 1040 Adjustments to qualified education expenses. Tax forms 1040   For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Tax forms 1040 The result is the amount of adjusted qualified education expenses for each student. Tax forms 1040 Tax-free educational assistance. Tax forms 1040   For tax-free educational assistance you received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance to that academic period. Tax forms 1040 See Academic period, earlier. Tax forms 1040   This includes: The tax-free part of scholarships and fellowships, including Pell grants (see chapter 1 of Publication 970), The tax-free part of any employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Tax forms 1040 Generally, any scholarship or fellowship you receive is treated as tax-free educational assistance. Tax forms 1040 However, a scholarship or fellowship is not treated as tax-free educational assistance to the extent you include it in gross income (if you are required to file a tax return) for the year the scholarship or fellowship is received and either: 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 Pub. Tax forms 1040 970, chapter 1. Tax forms 1040 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 Pub. Tax forms 1040 970, chapter 1. Tax forms 1040 You may be able to increase the combined value of your tuition and fees deduction and certain educational assistance if you include some or all of the educational assistance in income in the year it is received. Tax forms 1040 For details, see Adjustments to Qualified Education Expenses in chapter 6 of Pub. Tax forms 1040 970. Tax forms 1040 Some tax-free educational assistance received in 2013 may be treated as a refund of qualified education expenses paid in 2013. Tax forms 1040 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). Tax forms 1040 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. Tax forms 1040 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. Tax forms 1040 Refunds. Tax forms 1040   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or may require you to include some or all of the refund in your gross income for the year the refund is received. Tax forms 1040 See chapter 6 of Pub. Tax forms 1040 970 for more information. Tax forms 1040 Some tax-free educational assistance received after 2013 may be treated as a refund. Tax forms 1040 See Tax-free educational assistance, earlier. Tax forms 1040 Refunds received in 2013. Tax forms 1040    For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses paid in 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Tax forms 1040 Refunds received after 2013 but before your income tax return is filed. Tax forms 1040   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received before you file your 2013 income tax return, reduce the amount of qualified education expenses for 2013 by the amount of the refund. Tax forms 1040 Refunds received after 2013 and after your income tax return is filed. Tax forms 1040   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received after you file your 2013 income tax return, you may need to include some or all of the refund in your gross income for the year the refund is received. Tax forms 1040 See chapter 6 of Pub. Tax forms 1040 970 for more information. Tax forms 1040 Coordination with Coverdell education savings accounts and qualified tuition programs. Tax forms 1040    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). Tax forms 1040 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. Tax forms 1040 Amounts that do not reduce qualified education expenses. Tax forms 1040   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. Tax forms 1040   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. Tax forms 1040 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. Tax forms 1040 The use of the money is not restricted. Tax forms 1040 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. Tax forms 1040 This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Tax forms 1040 Sports, games, hobbies, and noncredit courses. Tax forms 1040   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. Tax forms 1040 However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Tax forms 1040 Comprehensive or bundled fees. Tax forms 1040   Some eligible educational institutions combine all of their fees for an academic period into one amount. Tax forms 1040 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. Tax forms 1040 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, Tuition Statement. Tax forms 1040 See How Do You Figure the Deduction , later, for more information about Form 1098-T. Tax forms 1040 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 (defined earlier). Tax forms 1040 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. Tax forms 1040 Table 19-3 summarizes who can claim the deduction. Tax forms 1040 How Much Can You Deduct The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. Tax forms 1040 For details on figuring your MAGI, see chapter 6 of Publication 970. Tax forms 1040 How Do You Figure the Deduction Figure the deduction using Form 8917. Tax forms 1040 To help you figure your tuition and fees deduction, you should receive Form 1098-T, Tuition Statement. Tax forms 1040 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. Tax forms 1040 To claim the deduction, enter the allowable amount on Form 1040, line 34, or Form 1040A, line 19, and attach your completed Form 8917. Tax forms 1040 Table 19-3. Tax forms 1040 Who Can Claim a Dependent's Expenses Do not rely on this table alone. Tax forms 1040 See Who Can Claim a Dependent's Expenses in chapter 6 of Publication 970. Tax forms 1040 IF your dependent is an eligible student and you. Tax forms 1040 . Tax forms 1040 . Tax forms 1040 AND. Tax forms 1040 . Tax forms 1040 . Tax forms 1040 THEN. Tax forms 1040 . Tax forms 1040 . Tax forms 1040 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. Tax forms 1040 Your dependent cannot take a deduction. Tax forms 1040 claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Tax forms 1040 do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Tax forms 1040 do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Tax forms 1040 Educator Expenses If you were an eligible educator in 2013, you can deduct on Form 1040, line 23, or Form 1040A, line 16, up to $250 of qualified expenses you paid in 2013. Tax forms 1040 If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Tax forms 1040 However, neither spouse can deduct more than $250 of his or her qualified expenses on Form 1040, line 23, or Form 1040A, line 16. Tax forms 1040 You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A (Form 1040), line 21. Tax forms 1040 Eligible educator. Tax forms 1040   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year. Tax forms 1040 Qualified expenses. Tax forms 1040   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Tax forms 1040 An ordinary expense is one that is common and accepted in your educational field. Tax forms 1040 A necessary expense is one that is helpful and appropriate for your profession as an educator. Tax forms 1040 An expense does not have to be required to be considered necessary. Tax forms 1040   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Tax forms 1040   You must reduce your qualified expenses by the following amounts. Tax forms 1040 Excludable U. Tax forms 1040 S. Tax forms 1040 series EE and I savings bond interest from Form 8815. Tax forms 1040 See Figuring the Tax-Free Amount in chapter 10 of Publication 970. Tax forms 1040 Nontaxable qualified tuition program earnings or distributions. Tax forms 1040 See Figuring the Taxable Portion of a Distribution in chapter 8 of Publication 970. Tax forms 1040 Nontaxable distribution of earnings from a Coverdell education savings account. Tax forms 1040 See Figuring the Taxable Portion of a Distribution in chapter 7 of Publication 970. Tax forms 1040 Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2. Tax forms 1040 Prev  Up  Next   Home   More Online Publications