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Where Can I Do My State Taxes For Free

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Where Can I Do My State Taxes For Free

Where can i do my state taxes for free 33. Where can i do my state taxes for free   Credit for the Elderly or the Disabled Table of Contents Introduction Useful Items - You may want to see: Are You Eligible for the Credit?Qualified Individual Income Limits How to Claim the CreditCredit Figured for You Credit Figured by You Introduction If you qualify, you may be able to reduce the tax you owe by taking the credit for the elderly or the disabled which is figured on Schedule R (Form 1040A or 1040). Where can i do my state taxes for free This chapter explains the following. Where can i do my state taxes for free Who qualifies for the credit for the elderly or the disabled. Where can i do my state taxes for free How to claim the credit. Where can i do my state taxes for free You may be able to take the credit for the elderly or the disabled if: You are age 65 or older at the end of 2013, or You retired on permanent and total disability and have taxable disability income. Where can i do my state taxes for free Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 554 Tax Guide for Seniors Form (and Instruction) Schedule R (Form 1040A or 1040) Credit for the Elderly or the Disabled Are You Eligible for the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Where can i do my state taxes for free You are a qualified individual. Where can i do my state taxes for free Your income is not more than certain limits. Where can i do my state taxes for free You can use Figure 33-A and Table 33-1 as guides to see if you are eligible for the credit. Where can i do my state taxes for free Use Figure 33-A first to see if you are a qualified individual. Where can i do my state taxes for free If you are, go to Table 33-1 to make sure your income is not too high to take the credit. Where can i do my state taxes for free You can take the credit only if you file Form 1040 or Form 1040A. Where can i do my state taxes for free You cannot take the credit if you file Form 1040EZ. Where can i do my state taxes for free Qualified Individual You are a qualified individual for this credit if you are a U. Where can i do my state taxes for free S. Where can i do my state taxes for free citizen or resident alien, and either of the following applies. Where can i do my state taxes for free You were age 65 or older at the end of 2013. Where can i do my state taxes for free You were under age 65 at the end of 2013 and all three of the following statements are true. Where can i do my state taxes for free You retired on permanent and total disability (explained later). Where can i do my state taxes for free You received taxable disability income for 2013. Where can i do my state taxes for free On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Where can i do my state taxes for free Age 65. Where can i do my state taxes for free   You are considered to be age 65 on the day before your 65th birthday. Where can i do my state taxes for free Therefore, if you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Where can i do my state taxes for free U. Where can i do my state taxes for free S. Where can i do my state taxes for free Citizen or Resident Alien You must be a U. Where can i do my state taxes for free S. Where can i do my state taxes for free citizen or resident alien (or be treated as a resident alien) to take the credit. Where can i do my state taxes for free Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Where can i do my state taxes for free Exceptions. Where can i do my state taxes for free   You may be able to take the credit if you are a nonresident alien who is married to a U. Where can i do my state taxes for free S. Where can i do my state taxes for free citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Where can i do my state taxes for free S. Where can i do my state taxes for free resident alien. Where can i do my state taxes for free If you make that choice, both you and your spouse are taxed on your worldwide incomes. Where can i do my state taxes for free If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Where can i do my state taxes for free S. Where can i do my state taxes for free citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Where can i do my state taxes for free S. Where can i do my state taxes for free resident alien for the entire year. Where can i do my state taxes for free In that case, you may be allowed to take the credit. Where can i do my state taxes for free For information on these choices, see chapter 1 of Publication 519, U. Where can i do my state taxes for free S. Where can i do my state taxes for free Tax Guide for Aliens. Where can i do my state taxes for free Married Persons Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Where can i do my state taxes for free However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Where can i do my state taxes for free Head of household. Where can i do my state taxes for free   You can file as head of household and qualify to take the credit, even if your spouse lived with you during the first 6 months of the year, if you meet certain tests. Where can i do my state taxes for free See Head of Household in chapter 2 for the tests you must meet. Where can i do my state taxes for free Under Age 65 If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability (discussed next) and have taxable disability income (discussed later under Disability income ). Where can i do my state taxes for free You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the close of the tax year. Where can i do my state taxes for free Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Where can i do my state taxes for free If you retired on disability before 1977, and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Where can i do my state taxes for free Permanent and total disability. Where can i do my state taxes for free    You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Where can i do my state taxes for free A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Where can i do my state taxes for free See Physician's statement , later. Where can i do my state taxes for free Substantial gainful activity. Where can i do my state taxes for free   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Where can i do my state taxes for free Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Where can i do my state taxes for free   Substantial gainful activity is not work you do to take care of yourself or your home. Where can i do my state taxes for free It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Where can i do my state taxes for free However, doing this kind of work may show that you are able to engage in substantial gainful activity. Where can i do my state taxes for free    The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Where can i do my state taxes for free Sheltered employment. Where can i do my state taxes for free   Certain work offered at qualified locations to physically or mentally impaired persons is considered sheltered employment. Where can i do my state taxes for free These qualified locations are in sheltered workshops, hospitals, and similar institutions, homebound programs, and Department of Veterans Affairs (VA) sponsored homes. Where can i do my state taxes for free   Compared to commercial employment, pay is lower for sheltered employment. Where can i do my state taxes for free Therefore, one usually does not look for sheltered employment if he or she can get other employment. Where can i do my state taxes for free The fact that one has accepted sheltered employment is not proof of the person's ability to engage in substantial gainful activity. Where can i do my state taxes for free Physician's statement. Where can i do my state taxes for free   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Where can i do my state taxes for free You can use the statement in the Instructions for Schedule R. Where can i do my state taxes for free    Figure 33-A. Where can i do my state taxes for free Are You a Qualified Individual? This image is too large to be displayed in the current screen. Where can i do my state taxes for free Please click the link to view the image. Where can i do my state taxes for free Figure 33-A Are You a Qualified Individual?   You do not have to file this statement with your Form 1040 or Form 1040A, but you must keep it for your records. Where can i do my state taxes for free Veterans. Where can i do my state taxes for free   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Where can i do my state taxes for free VA Form 21-0172 must be signed by a person authorized by the VA to do so. Where can i do my state taxes for free You can get this form from your local VA regional office. Where can i do my state taxes for free Physician's statement obtained in earlier year. Where can i do my state taxes for free   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Where can i do my state taxes for free For a detailed explanation of the conditions you must meet, see the instructions for Schedule R, Part II. Where can i do my state taxes for free If you meet the required conditions, check the box on your Schedule R, Part II, line 2. Where can i do my state taxes for free   If you checked box 4, 5, or 6 in Part I of Schedule R, enter in the space above the box on line 2 in Part II the first name(s) of the spouse(s) for whom the box is checked. Where can i do my state taxes for free Table 33-1. Where can i do my state taxes for free Income Limits IF your filing status is . Where can i do my state taxes for free . Where can i do my state taxes for free . Where can i do my state taxes for free THEN, even if you qualify (see Figure 33-A ), you CANNOT take the credit if. Where can i do my state taxes for free . Where can i do my state taxes for free . Where can i do my state taxes for free   Your adjusted gross income (AGI)* is equal to or more than. Where can i do my state taxes for free . Where can i do my state taxes for free . Where can i do my state taxes for free     OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Where can i do my state taxes for free . Where can i do my state taxes for free . Where can i do my state taxes for free   single, head of household, or qualifying widow(er) with dependent child   $17,500     $5,000   married filing jointly and only one spouse qualifies in Figure 33-A   $20,000     $5,000   married filing jointly and both spouses qualify in Figure 33-A   $25,000     $7,500   married filing separately and you lived apart from your spouse for all of 2013   $12,500     $3,750   * AGI is the amount on Form 1040A, line 22, or Form 1040, line 38. Where can i do my state taxes for free Disability income. Where can i do my state taxes for free   If you are under age 65, you must also have taxable disability income to qualify for the credit. Where can i do my state taxes for free Disability income must meet both of the following requirements. Where can i do my state taxes for free It must be paid under your employer's accident or health plan or pension plan. Where can i do my state taxes for free It must be included in your income as wages (or payments instead of wages) for the time you are absent from work because of permanent and total disability. Where can i do my state taxes for free Payments that are not disability income. Where can i do my state taxes for free   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Where can i do my state taxes for free Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Where can i do my state taxes for free   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Where can i do my state taxes for free Mandatory retirement age is the age set by your employer at which you would have had to retire, had you not become disabled. Where can i do my state taxes for free Income Limits To determine if you can claim the credit, you must consider two income limits. Where can i do my state taxes for free The first limit is the amount of your adjusted gross income (AGI). Where can i do my state taxes for free The second limit is the amount of nontaxable social security and other nontaxable pensions, annuities, or disability income you received. Where can i do my state taxes for free The limits are shown in Table 33-1. Where can i do my state taxes for free If your AGI and nontaxable pensions, annuities, or disability income are less than the income limits, you may be able to claim the credit. Where can i do my state taxes for free See How to Claim the Credit , later. Where can i do my state taxes for free If either your AGI or your nontaxable pensions, annuities, or disability income are equal to or more than the income limits, you cannot take the credit. Where can i do my state taxes for free How to Claim the Credit You can figure the credit yourself or the Internal Revenue Service will figure it for you. Where can i do my state taxes for free Credit Figured for You If you choose to have the IRS figure the credit for you, read the following discussion for the form you will file (Form 1040 or 1040A). Where can i do my state taxes for free If you want the IRS to figure your tax, see chapter 30. Where can i do my state taxes for free Form 1040. Where can i do my state taxes for free   If you want the IRS to figure your credit, see Form 1040 Line Entries under Tax Figured by IRS in chapter 30. Where can i do my state taxes for free Form 1040A. Where can i do my state taxes for free   If you want the IRS to figure your credit, see Form 1040A Line Entries under Tax Figured by IRS in chapter 30. Where can i do my state taxes for free Credit Figured by You If you choose to figure the credit yourself, fill out the front of Schedule R. Where can i do my state taxes for free Next, fill out Schedule R, Part III. Where can i do my state taxes for free If you file Form 1040A, enter the amount from Schedule R, line 22, on Form 1040A, line 30. Where can i do my state taxes for free If you file Form 1040, include the amount from Schedule R, line 22, on line 53; check box c, and enter “Sch R” on the line next to that box. Where can i do my state taxes for free For a step-by-step discussion about filling out Part III of Schedule R, see Figuring the Credit Yourself in Publication 524. Where can i do my state taxes for free Limit on credit. Where can i do my state taxes for free   The amount of the credit you can claim is generally limited to the amount of your tax. Where can i do my state taxes for free Use the Credit Limit Worksheet in the Instructions for Schedule R to determine if your credit is limited. Where can i do my state taxes for free Prev  Up  Next   Home   More Online Publications
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Reminder To Home-Based Businesses: Simplified Option for Claiming Home Office Deduction Now Available; May Deduct up to $1,500; Saves 1.6 Million Hours A Year

IRS YouTube Video:

Simplified Home Office Deduction: English / Spanish / ASL

IR-2014-24, March 7, 2014

WASHINGTON — The Internal Revenue Service today reminded people with home-based businesses that this year for the first time they can choose a new simplified option for claiming the deduction for business use of a home.

In tax year 2011, the most recent year for which figures are available, some 3.3 million taxpayers claimed deductions for business use of a home (commonly referred to as the home office deduction) totaling nearly $10 billion.

The new optional deduction, capped at $1,500 per year based on $5 a square foot for up to 300 square feet, will reduce the paperwork and recordkeeping burden on small businesses by an estimated 1.6 million hours annually.

The new option is available starting with the 2013 return taxpayers are filing now.  Normally, home-based businesses are required to fill out a 43-line form (Form 8829) often with complex calculations of allocated expenses, depreciation and carryovers of unused deductions.  Instead, taxpayers claiming the optional deduction need only complete a short worksheet in the tax instructions and enter the result on their return. Self-employed individuals claim the home office deduction on Schedule C Line 30, farmers claim it on Schedule F  Line 32 and eligible employees claim it on Schedule A Line 21. 

Though homeowners using the new option cannot depreciate the portion of their home used in a trade or business, they can claim allowable mortgage interest, real estate taxes and casualty losses on the home as itemized deductions on Schedule A. These deductions need not be allocated between personal and business use, as is required under the regular method.

Business expenses unrelated to the home, such as advertising, supplies and wages paid to employees, are still fully deductible.

Long-standing restrictions on the home office deduction, such as the requirement that a home office be used regularly and exclusively for business and the limit tied to the income derived from the particular business, still apply under the new option.

Further details on the home office deduction and the new option can be found in Publication 587, posted on IRS.gov.

 

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Page Last Reviewed or Updated: 07-Mar-2014

The Where Can I Do My State Taxes For Free

Where can i do my state taxes for free 19. Where can i do my state taxes for free   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. Where can i do my state taxes for free This chapter covers the student loan interest deduction, tuition and fees deduction, and the deduction for educator expenses. Where can i do my state taxes for free 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. Where can i do my state taxes for free 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. Where can i do my state taxes for free 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. Where can i do my state taxes for free This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. Where can i do my state taxes for free Table 19-1 summarizes the features of the student loan interest deduction. Where can i do my state taxes for free Table 19-1. Where can i do my state taxes for free Student Loan Interest Deduction at a Glance Do not rely on this table alone. Where can i do my state taxes for free Refer to the text for more details. Where can i do my state taxes for free Feature Description Maximum benefit You can reduce your income subject to tax by up to $2,500. Where can i do my state taxes for free 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. Where can i do my state taxes for free 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. Where can i do my state taxes for free Time limit on deduction You can deduct interest paid during the remaining period of your student loan. Where can i do my state taxes for free Phaseout The amount of your deduction depends on your income level. Where can i do my state taxes for free Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. Where can i do my state taxes for free It includes both required and voluntary interest payments. Where can i do my state taxes for free 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. Where can i do my state taxes for free Loans from the following sources are not qualified student loans. Where can i do my state taxes for free A related person. Where can i do my state taxes for free A qualified employer plan. Where can i do my state taxes for free Exceptions. Where can i do my state taxes for free   For purposes of the student loan interest deduction, the following are exceptions to the general rules for dependents. Where can i do my state taxes for free An individual can be your dependent even if you are the dependent of another taxpayer. Where can i do my state taxes for free An individual can be your dependent even if the individual files a joint return with a spouse. Where can i do my state taxes for free 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). Where can i do my state taxes for free    Reasonable period of time. Where can i do my state taxes for free   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. Where can i do my state taxes for free   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. Where can i do my state taxes for free The expenses relate to a specific academic period. Where can i do my state taxes for free 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. Where can i do my state taxes for free   If neither of the above situations applies, the reasonable period of time is determined based on all the relevant facts and circumstances. Where can i do my state taxes for free Academic period. Where can i do my state taxes for free   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. Where can i do my state taxes for free 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. Where can i do my state taxes for free Eligible student. Where can i do my state taxes for free   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Where can i do my state taxes for free Enrolled at least half-time. Where can i do my state taxes for free   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. Where can i do my state taxes for free   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Where can i do my state taxes for free However, the standard may not be lower than any of those established by the U. Where can i do my state taxes for free S. Where can i do my state taxes for free Department of Education under the Higher Education Act of 1965. Where can i do my state taxes for free Related person. Where can i do my state taxes for free   You cannot deduct interest on a loan you get from a related person. Where can i do my state taxes for free Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. Where can i do my state taxes for free ), Your lineal descendants (children, grandchildren, etc. Where can i do my state taxes for free ), and Certain corporations, partnerships, trusts, and exempt organizations. Where can i do my state taxes for free Qualified employer plan. Where can i do my state taxes for free   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. Where can i do my state taxes for free 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. Where can i do my state taxes for free They include amounts paid for the following items. Where can i do my state taxes for free Tuition and fees. Where can i do my state taxes for free Room and board. Where can i do my state taxes for free Books, supplies, and equipment. Where can i do my state taxes for free Other necessary expenses (such as transportation). Where can i do my state taxes for free 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. Where can i do my state taxes for free Eligible educational institution. Where can i do my state taxes for free   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. Where can i do my state taxes for free S. Where can i do my state taxes for free Department of Education. Where can i do my state taxes for free It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Where can i do my state taxes for free   Certain educational institutions located outside the United States also participate in the U. Where can i do my state taxes for free S. Where can i do my state taxes for free Department of Education's Federal Student Aid (FSA) programs. Where can i do my state taxes for free   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. Where can i do my state taxes for free   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. Where can i do my state taxes for free The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. Where can i do my state taxes for free    The educational institution should be able to tell you if it is an eligible educational institution. Where can i do my state taxes for free Adjustments to qualified education expenses. Where can i do my state taxes for free   You must reduce your qualified education expenses by certain tax-free items (such as the tax-free part of scholarships and fellowships). Where can i do my state taxes for free See chapter 4 of Publication 970 for details. Where can i do my state taxes for free 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. Where can i do my state taxes for free Loan origination fee. Where can i do my state taxes for free   In general, this is a one-time fee charged by the lender when a loan is made. Where can i do my state taxes for free 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. Where can i do my state taxes for free A loan origination fee treated as interest accrues over the life of the loan. Where can i do my state taxes for free Capitalized interest. Where can i do my state taxes for free    This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. Where can i do my state taxes for free Interest on revolving lines of credit. Where can i do my state taxes for free   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. Where can i do my state taxes for free See Qualified Education Expenses , earlier. Where can i do my state taxes for free Interest on refinanced student loans. Where can i do my state taxes for free   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. Where can i do my state taxes for free 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. Where can i do my state taxes for free Voluntary interest payments. Where can i do my state taxes for free   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. Where can i do my state taxes for free Do Not Include as Interest You cannot claim a student loan interest deduction for any of the following items. Where can i do my state taxes for free Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. Where can i do my state taxes for free Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. Where can i do my state taxes for free 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. Where can i do my state taxes for free For more information, see Student Loan Repayment Assistance in chapter 5 of Publication 970. Where can i do my state taxes for free Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. Where can i do my state taxes for free Your filing status is any filing status except married filing separately. Where can i do my state taxes for free No one else is claiming an exemption for you on his or her tax return. Where can i do my state taxes for free You are legally obligated to pay interest on a qualified student loan. Where can i do my state taxes for free You paid interest on a qualified student loan. Where can i do my state taxes for free Interest paid by others. Where can i do my state taxes for free   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. Where can i do my state taxes for free See chapter 4 of Publication 970 for more information. Where can i do my state taxes for free 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). Where can i do my state taxes for free 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. Where can i do my state taxes for free 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). Where can i do my state taxes for free 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). Where can i do my state taxes for free For details on figuring your MAGI, see chapter 4 of Publication 970. Where can i do my state taxes for free 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. Where can i do my state taxes for free 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. Where can i do my state taxes for free To help you figure your student loan interest deduction, you should receive Form 1098-E, Student Loan Interest Statement. Where can i do my state taxes for free 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. Where can i do my state taxes for free 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. Where can i do my state taxes for free Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. Where can i do my state taxes for free However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. Where can i do my state taxes for free For information on allocating payments between interest and principal, see chapter 4 of Publication 970. Where can i do my state taxes for free To claim the deduction, enter the allowable amount on Form 1040, line 33, or Form 1040A, line 18. Where can i do my state taxes for free 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). Where can i do my state taxes for free 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. Where can i do my state taxes for free The qualified expenses must be for higher education, as explained later under What Expenses Qualify . Where can i do my state taxes for free The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Where can i do my state taxes for free Table 19-2 summarizes the features of the tuition and fees deduction. Where can i do my state taxes for free You may be able to take a credit for your education expenses instead of a deduction. Where can i do my state taxes for free You can choose the one that will give you the lower tax. Where can i do my state taxes for free See chapter 35, Education Credits, for details about the credits. Where can i do my state taxes for free Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Where can i do my state taxes for free Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Where can i do my state taxes for free 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. Where can i do my state taxes for free You paid the education expenses for an eligible student. Where can i do my state taxes for free The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption (defined in chapter 3) on your tax return. Where can i do my state taxes for free Qualified education expenses are defined under What Expenses Qualify . Where can i do my state taxes for free Eligible students are defined later under Who Is an Eligible Student . Where can i do my state taxes for free Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Where can i do my state taxes for free Your filing status is married filing separately. Where can i do my state taxes for free Another person can claim an exemption for you as a dependent on his or her tax return. Where can i do my state taxes for free You cannot take the deduction even if the other person does not actually claim that exemption. Where can i do my state taxes for free Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Where can i do my state taxes for free 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. Where can i do my state taxes for free More information on nonresident aliens can be found in Publication 519, U. Where can i do my state taxes for free S. Where can i do my state taxes for free Tax Guide for Aliens. Where can i do my state taxes for free 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. Where can i do my state taxes for free However, a state tax credit will not disqualify you from claiming a tuition and fees deduction. Where can i do my state taxes for free Table 19-2. Where can i do my state taxes for free Tuition and Fees Deduction at a Glance Do not rely on this table alone. Where can i do my state taxes for free Refer to the text for more details. Where can i do my state taxes for free Question   Answer What is the maximum benefit?   You can reduce your income subject to tax by up to $4,000. Where can i do my state taxes for free Where is the deduction taken?   As an adjustment to income on Form 1040, line 34, or Form 1040A, line 19. Where can i do my state taxes for free 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. Where can i do my state taxes for free 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. Where can i do my state taxes for free 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. Where can i do my state taxes for free 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. Where can i do my state taxes for free Payments with borrowed funds. Where can i do my state taxes for free   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Where can i do my state taxes for free 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. Where can i do my state taxes for free Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. Where can i do my state taxes for free Student withdraws from class(es). Where can i do my state taxes for free   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Where can i do my state taxes for free 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. Where can i do my state taxes for free Eligible educational institution. Where can i do my state taxes for free   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. Where can i do my state taxes for free S. Where can i do my state taxes for free Department of Education. Where can i do my state taxes for free It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Where can i do my state taxes for free The educational institution should be able to tell you if it is an eligible educational institution. Where can i do my state taxes for free   Certain educational institutions located outside the United States also participate in the U. Where can i do my state taxes for free S. Where can i do my state taxes for free Department of Education's Federal Student Aid (FSA) programs. Where can i do my state taxes for free Academic period. Where can i do my state taxes for free    An academic period is any quarter, semester, trimester, or any other period of study as reasonably determined by an eligible educational institution. Where can i do my state taxes for free If an eligible educational institution uses credit hours and does not have academic terms, each payment period may be treated as an academic period. Where can i do my state taxes for free Related expenses. Where can i do my state taxes for free   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. Where can i do my state taxes for free Prepaid expenses. Where can i do my state taxes for free   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. Where can i do my state taxes for free See Academic period, earlier. Where can i do my state taxes for free 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. Where can i do my state taxes for free    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. Where can i do my state taxes for free No Double Benefit Allowed You cannot do any of the following. Where can i do my state taxes for free Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Where can i do my state taxes for free 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. Where can i do my state taxes for free 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). Where can i do my state taxes for free 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. Where can i do my state taxes for free See Figuring the Taxable Portion of a Distribution in chapter 7 (Coverdell ESA) and chapter 8 (QTP) of Publication 970. Where can i do my state taxes for free Deduct qualified education expenses that have been paid with tax-free interest on U. Where can i do my state taxes for free S. Where can i do my state taxes for free savings bonds (Form 8815). Where can i do my state taxes for free See Figuring the Tax-Free Amount in chapter 10 of Publication 970. Where can i do my state taxes for free Deduct qualified education expenses that have been paid with tax-free educational assistance such as a scholarship, grant, or employer-provided educational assistance. Where can i do my state taxes for free See Adjustments to qualified education expenses, later. Where can i do my state taxes for free Adjustments to qualified education expenses. Where can i do my state taxes for free   For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Where can i do my state taxes for free The result is the amount of adjusted qualified education expenses for each student. Where can i do my state taxes for free Tax-free educational assistance. Where can i do my state taxes for free   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. Where can i do my state taxes for free See Academic period, earlier. Where can i do my state taxes for free   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. Where can i do my state taxes for free Generally, any scholarship or fellowship you receive is treated as tax-free educational assistance. Where can i do my state taxes for free 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. Where can i do my state taxes for free 970, chapter 1. Where can i do my state taxes for free 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. Where can i do my state taxes for free 970, chapter 1. Where can i do my state taxes for free 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. Where can i do my state taxes for free For details, see Adjustments to Qualified Education Expenses in chapter 6 of Pub. Where can i do my state taxes for free 970. Where can i do my state taxes for free Some tax-free educational assistance received in 2013 may be treated as a refund of qualified education expenses paid in 2013. Where can i do my state taxes for free 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). Where can i do my state taxes for free 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. Where can i do my state taxes for free 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. Where can i do my state taxes for free Refunds. Where can i do my state taxes for free   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. Where can i do my state taxes for free See chapter 6 of Pub. Where can i do my state taxes for free 970 for more information. Where can i do my state taxes for free Some tax-free educational assistance received after 2013 may be treated as a refund. Where can i do my state taxes for free See Tax-free educational assistance, earlier. Where can i do my state taxes for free Refunds received in 2013. Where can i do my state taxes for free    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. Where can i do my state taxes for free Refunds received after 2013 but before your income tax return is filed. Where can i do my state taxes for free   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. Where can i do my state taxes for free Refunds received after 2013 and after your income tax return is filed. Where can i do my state taxes for free   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. Where can i do my state taxes for free See chapter 6 of Pub. Where can i do my state taxes for free 970 for more information. Where can i do my state taxes for free Coordination with Coverdell education savings accounts and qualified tuition programs. Where can i do my state taxes for free    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). Where can i do my state taxes for free 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. Where can i do my state taxes for free Amounts that do not reduce qualified education expenses. Where can i do my state taxes for free   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. Where can i do my state taxes for free   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. Where can i do my state taxes for free 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. Where can i do my state taxes for free The use of the money is not restricted. Where can i do my state taxes for free 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. Where can i do my state taxes for free This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Where can i do my state taxes for free Sports, games, hobbies, and noncredit courses. Where can i do my state taxes for free   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. Where can i do my state taxes for free However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Where can i do my state taxes for free Comprehensive or bundled fees. Where can i do my state taxes for free   Some eligible educational institutions combine all of their fees for an academic period into one amount. Where can i do my state taxes for free 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. Where can i do my state taxes for free 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. Where can i do my state taxes for free See How Do You Figure the Deduction , later, for more information about Form 1098-T. Where can i do my state taxes for free 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). Where can i do my state taxes for free 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. Where can i do my state taxes for free Table 19-3 summarizes who can claim the deduction. Where can i do my state taxes for free 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. Where can i do my state taxes for free For details on figuring your MAGI, see chapter 6 of Publication 970. Where can i do my state taxes for free How Do You Figure the Deduction Figure the deduction using Form 8917. Where can i do my state taxes for free To help you figure your tuition and fees deduction, you should receive Form 1098-T, Tuition Statement. Where can i do my state taxes for free 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. Where can i do my state taxes for free To claim the deduction, enter the allowable amount on Form 1040, line 34, or Form 1040A, line 19, and attach your completed Form 8917. Where can i do my state taxes for free Table 19-3. Where can i do my state taxes for free Who Can Claim a Dependent's Expenses Do not rely on this table alone. Where can i do my state taxes for free See Who Can Claim a Dependent's Expenses in chapter 6 of Publication 970. Where can i do my state taxes for free IF your dependent is an eligible student and you. Where can i do my state taxes for free . Where can i do my state taxes for free . Where can i do my state taxes for free AND. Where can i do my state taxes for free . Where can i do my state taxes for free . Where can i do my state taxes for free THEN. Where can i do my state taxes for free . Where can i do my state taxes for free . Where can i do my state taxes for free 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. Where can i do my state taxes for free Your dependent cannot take a deduction. Where can i do my state taxes for free claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Where can i do my state taxes for free do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Where can i do my state taxes for free do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Where can i do my state taxes for free 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. Where can i do my state taxes for free If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Where can i do my state taxes for free However, neither spouse can deduct more than $250 of his or her qualified expenses on Form 1040, line 23, or Form 1040A, line 16. Where can i do my state taxes for free You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A (Form 1040), line 21. Where can i do my state taxes for free Eligible educator. Where can i do my state taxes for free   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. Where can i do my state taxes for free Qualified expenses. Where can i do my state taxes for free   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. Where can i do my state taxes for free An ordinary expense is one that is common and accepted in your educational field. Where can i do my state taxes for free A necessary expense is one that is helpful and appropriate for your profession as an educator. Where can i do my state taxes for free An expense does not have to be required to be considered necessary. Where can i do my state taxes for free   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Where can i do my state taxes for free   You must reduce your qualified expenses by the following amounts. Where can i do my state taxes for free Excludable U. Where can i do my state taxes for free S. Where can i do my state taxes for free series EE and I savings bond interest from Form 8815. Where can i do my state taxes for free See Figuring the Tax-Free Amount in chapter 10 of Publication 970. Where can i do my state taxes for free Nontaxable qualified tuition program earnings or distributions. Where can i do my state taxes for free See Figuring the Taxable Portion of a Distribution in chapter 8 of Publication 970. Where can i do my state taxes for free Nontaxable distribution of earnings from a Coverdell education savings account. Where can i do my state taxes for free See Figuring the Taxable Portion of a Distribution in chapter 7 of Publication 970. Where can i do my state taxes for free Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2. Where can i do my state taxes for free Prev  Up  Next   Home   More Online Publications