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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

1040ez Tax Instructions

Federal Income Tax Rates 2010I Need To File My 2011 Taxes For Free OnlinePriortaxH&r Block Free Tax Prep2012 TaxesIrs 1040ez Form 20121040 Ez Tax Return Form1040ez Illinois State Income Tax FormFreestatetaxact.comHow Do I File An Amended Tax ReturnForm 1040xFree Income Tax PreparationVolunteer Income TaxHow To File Taxes Self EmployedCan I File My 2010 TaxesH&rblockTaxes For FreeIncome TaxH&r Block Free Tax Filing2011 Taxes File1040 Ez Tax Return FormWww Irs Gov EitcState Income Tax HelpFree State Income TaxFree Tax EfileEfile Tax Return For FreeWhat Can I Write Off On My Taxes As A StudentWww Irs Gov Efile ComEz Tax FormWww.irs.gov1040x2013 Tax Forms 1040ez2010 Federal Tax FormsFile Taxes Online Free 2012Form 1040-ez 2013Myfreetaxes.com/everettFile Your State Taxes Free10ezTax Amendments 2013 14H & R Block FreeH & R Block Tax

1040ez Tax Instructions

1040ez tax instructions Publication 970 - Additional Material Table of Contents AppendicesAppendix A. 1040ez tax instructions Illustrated Example of Education Credits Glossary Appendices The following appendices are provided to help you claim the education benefits that will give you the lowest tax. 1040ez tax instructions Appendix A—An illustrated example of education credits, including a filled-in Form 8863 showing how to claim both the American opportunity credit and lifetime learning credit for 2013. 1040ez tax instructions Appendix B—A chart summarizing some of the major differences between the education tax benefits discussed in this publication. 1040ez tax instructions It is intended only as a guide. 1040ez tax instructions Look in this publication for more complete information. 1040ez tax instructions   Appendix A. 1040ez tax instructions Illustrated Example of Education Credits Dave and Valerie Jones are married and on their 2013 joint tax return they claim exemptions for their two dependent children, Sean (age 21, social security number: 000-00-0001) and Carey (age 18, social security number: 000–00–0002). 1040ez tax instructions Their modified adjusted gross income (MAGI) on Form 1040, line 38 is $110,000. 1040ez tax instructions Because Dave and Valerie have unusually high itemized deductions, their taxable income is $10,000 and their tax before credits is $1,000. 1040ez tax instructions Sean enrolled as a full-time graduate student in August 2013 at California State College. 1040ez tax instructions He graduated with his bachelor's degree in 2012 and did not attend school from January 2013 through July 2013. 1040ez tax instructions His parents claimed the Hope Scholarship Credit for Sean for 2008 and the American opportunity credit for Sean for 2010, 2011, and 2012. 1040ez tax instructions Carey enrolled full time as a freshman at the same college in January 2013 to begin working on her bachelor's degree. 1040ez tax instructions In 2013, Dave and Valerie paid $7,000 in tuition for Sean and $8,500 in tuition for Carey. 1040ez tax instructions California State College issued two Forms 1098-T, one for Sean and one for Carey, and sent them to the Joneses' residence. 1040ez tax instructions California State College reports amounts billed in 2013 instead of amounts paid during 2013. 1040ez tax instructions In completing Form 8863, the Joneses use the amounts they paid. 1040ez tax instructions Neither Sean nor Carey has been convicted of a felony for possession or distribution of a controlled substance before the end of 2013. 1040ez tax instructions Dave and Valerie figure their education credits by completing Form 8863. 1040ez tax instructions They begin Form 8863 on page 2 before completing Part I on page 1. 1040ez tax instructions Because the Joneses have two eligible students, they will complete page 2 twice, once for their son, Sean, and once for their daughter, Carey. 1040ez tax instructions The Joneses decide to complete Part III for Carey first, as shown later. 1040ez tax instructions They carry over the amount of $2,500 entered on Part III, line 30, to Part I, line 1. 1040ez tax instructions The Joneses complete a separate Part III for their son Sean. 1040ez tax instructions They check the “Yes” box on line 23, determine that Sean is not eligible for the American opportunity credit, and go to line 31 as instructed. 1040ez tax instructions They figure their line 31 adjusted qualified education expenses for Sean to be $7,000. 1040ez tax instructions Once they have completed Part III for each student, they figure their credits. 1040ez tax instructions The Joneses figure their refundable American opportunity credit of $1,000 by completing Form 8863, Part I, lines 1 through 8. 1040ez tax instructions They enter the amount from line 8, $1,000, on line 66 of their Form 1040. 1040ez tax instructions The Joneses enter $7,000 on Part II, line 10, of Form 8863 and figure their tentative lifetime learning credit for 2013 to be $1,400 (line 12). 1040ez tax instructions They cannot claim the full amount because their MAGI of $110,000 is greater than $107,000. 1040ez tax instructions They enter the reduced amount of $1,190 (figured on Part II, line 18) on the Credit Limit Worksheet, line 1. 1040ez tax instructions The $1,190 is added to their nonrefundable American opportunity credit ($1,500 on line 2 of the Credit Limit Worksheet) for a total nonrefundable credit of $2,690. 1040ez tax instructions The Joneses enter $1,000 on line 7 of the Credit Limit Worksheet, which is the smaller of their tax from line 46 of their Form 1040 (which is $1,000) or the $2,690 on line 3 of the Credit Limit Worksheet. 1040ez tax instructions They enter $1,000 on line 19, Part II of Form 8863 and on line 49 of Form 1040. 1040ez tax instructions This image is too large to be displayed in the current screen. 1040ez tax instructions Please click the link to view the image. 1040ez tax instructions Form 1098-T Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions) 1. 1040ez tax instructions Total qualified education expenses paid for or on behalf of the student in 2013 for the academic period 8,500 2. 1040ez tax instructions Less adjustments:     a. 1040ez tax instructions Tax-free educational assistance received in 2013 allocable to the academic period   0     b. 1040ez tax instructions Tax-free educational assistance received in 2014 (and before you file your 2013 tax return) allocable to the academic period   0     c. 1040ez tax instructions Refunds of qualified education expenses paid in 2013 if the refund is received in 2013 or in 2014 before you file your 2013 tax return   0   3. 1040ez tax instructions Total adjustments (add lines 2a, 2b, and 2c) 0 4. 1040ez tax instructions Adjusted qualified education expenses. 1040ez tax instructions Subtract line 3 from line 1. 1040ez tax instructions If zero or less, enter -0- 8,500 This image is too large to be displayed in the current screen. 1040ez tax instructions Please click the link to view the image. 1040ez tax instructions Form 1098-T Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions) 1. 1040ez tax instructions Total qualified education expenses paid for or on behalf of the student in 2013 for the academic period 7,000 2. 1040ez tax instructions Less adjustments:     a. 1040ez tax instructions Tax-free educational assistance received in 2013 allocable to the academic period   0     b. 1040ez tax instructions Tax-free educational assistance received in 2014 (and before you file your 2013 tax return) allocable to the academic period   0     c. 1040ez tax instructions Refunds of qualified education expenses paid in 2013 if the refund is received in 2013 or in 2014 before you file your 2013 tax return   0   3. 1040ez tax instructions Total adjustments (add lines 2a, 2b, and 2c) 0 4. 1040ez tax instructions Adjusted qualified education expenses. 1040ez tax instructions Subtract line 3 from line 1. 1040ez tax instructions If zero or less, enter -0- 7,000 Credit Limit Worksheet (Form 8863 instructions) Nonrefundable Credit Worksheet 1. 1040ez tax instructions Enter the amount from Form 8863, line 18 1. 1040ez tax instructions 1,190 2. 1040ez tax instructions Enter the amount from Form 8863, line 9 2. 1040ez tax instructions 1,500 3. 1040ez tax instructions Add lines 1 and 2 3. 1040ez tax instructions 2,690 4. 1040ez tax instructions Enter the amount from: Form 1040, line 46; or Form 1040A, line 28 4. 1040ez tax instructions 1,000 5. 1040ez tax instructions Enter the amount from either: Form 1040, lines 47 and 48, and the amount from Schedule R included on Form 1040, line 53; or Form 1040A, lines 29 and 30 5. 1040ez tax instructions 0 6. 1040ez tax instructions Subtract line 5 from line 4 6. 1040ez tax instructions 1,000 7. 1040ez tax instructions   Enter the smaller of line 3 or line 6 here and on Form 8863, line 19 7. 1040ez tax instructions 1,000 This image is too large to be displayed in the current screen. 1040ez tax instructions Please click the link to view the image. 1040ez tax instructions Form 8863 for Dave and Valerie Jones This image is too large to be displayed in the current screen. 1040ez tax instructions Please click the link to view the image. 1040ez tax instructions Carey Jones page 2 This image is too large to be displayed in the current screen. 1040ez tax instructions Please click the link to view the image. 1040ez tax instructions Filled-in Form 8863 Jones page 2 Appendix B. 1040ez tax instructions Highlights of Education Tax Benefits for Tax Year 2013 This chart highlights some differences among the benefits discussed in this publication. 1040ez tax instructions See the text for definitions and details. 1040ez tax instructions Do not rely on this chart alone. 1040ez tax instructions    Caution:You generally cannot claim more than one benefit for the same education expense. 1040ez tax instructions   Scholarships,  Fellowships, Grants, and  Tuition  Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Tuition and Fees Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distributions† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What is your  benefit? Amounts received may not be taxable   Credits can reduce the amount of tax you have to pay. 1040ez tax instructions    40% of the credit may be refundable (limited to $1,000 per student). 1040ez tax instructions Credits can reduce amount of tax you must pay Can deduct interest paid Can deduct expenses Earnings not  taxed Earnings not taxed No 10%  additional tax on early distribution Interest not taxed Employer benefits not taxed Can deduct expenses What is the annual limit? None $2,500 credit per student $2,000 credit per tax return     $2,500 deduction $4,000 deduction $2,000 contribution per beneficiary None Amount of qualified  education expenses Amount of qualified  education expenses $5,250 exclusion Amount of qualifying work-related education expenses What expenses  qualify besides  tuition and required enrollment fees? Course-related expenses such as fees, books, supplies, and equipment Course-related books, supplies, and equipment Amounts paid for required books, etc. 1040ez tax instructions , that must be paid to the educational institution, etc. 1040ez tax instructions , are required fees Books Supplies Equipment  Room & board  Transportation  Other necessary expenses  None Books Supplies Equipment  Expenses for special needs services  Payments to QTP  Higher education: Room & board if  at least half-time  student  Elem/sec (K–12) education: Tutoring Room & board Uniforms Transportation Computer  access Supplementary expenses Books Supplies Equipment  Room & board if  at least half-time student  Expenses for special needs services Books Supplies Equipment  Room & board if  at least half-time student  Expenses for special needs services Payments to Coverdell ESA  Payments to QTP Books Supplies Equipment Transportation  Travel  Other necessary expenses   Scholarships,  Fellowships, Grants, and  Tuition  Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Tuition and Fees Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distributions† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What education qualifies? Undergraduate & graduate  K–12 Undergraduate & graduate Undergraduate & graduate  Courses to acquire or improve job skills    Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate  K–12 Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate Required by employer or law to keep present job, salary, status  Maintain or improve job skills What are some of the other  conditions that  apply? Must be in degree or vocational program  Payment of tuition and required fees must be allowed under the grant Can be claimed for only 4 tax years (which includes years Hope Scholarship Credit claimed)  Must be enrolled at least half-time in degree program  No felony drug conviction(s)  Must not have completed first 4 years of postsecondary education before end of preceding tax year. 1040ez tax instructions   No other conditions Must have been at least half-time  student in degree program Cannot claim both deduction & education credit for same student in same year Assets must be distributed at age 30 unless special  needs beneficiary No other conditions No other conditions Applies only to qualified series  EE bonds issued after 1989 or series I bonds No other conditions Cannot be to  meet minimum educational requirements of present trade/business  Cannot qualify  you for new trade/business   In what income  range do benefits  phase out? No phaseout $80,000 – $90,000  $160,000 – $180,000 for joint returns $53,000 – $63,000  $107,000 – $127,000 for joint returns $60,000 – $75,000  $125,000 –  $155,000 for  joint returns  $60,000 – $80,000  $130,000 –  $160,000 for  joint returns  $95,000 – $110,000  $190,000 – $220,000 for  joint returns No phaseout No phaseout   No phaseout No phaseout † Any nontaxable distribution is limited to the amount that does not exceed qualified education expenses. 1040ez tax instructions Glossary The education benefits included in this publication were enacted over many years, leading to a number of common terms being defined differently from one benefit to the next. 1040ez tax instructions For example, an eligible educational institution means one thing when determining if earnings from a Coverdell education savings account are not taxable and something else when determining if a scholarship or fellowship is not taxable. 1040ez tax instructions For each term listed below that has more than one definition, the definition for each education benefit is listed. 1040ez tax instructions Academic period:   A semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. 1040ez tax instructions If an educational institution uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. 1040ez tax instructions Adjusted qualified education expenses (AQEE):    Qualified education expenses (defined later) reduced by any tax-free educational assistance, such as a tax-free scholarship or employer-provided educational assistance. 1040ez tax instructions They must also be reduced by any qualified education expenses deducted elsewhere on your return, used to determine an education credit or other benefit, or used to determine a tax-free distribution. 1040ez tax instructions For information on a specific benefit, see the appropriate chapter in this publication. 1040ez tax instructions Candidate for a degree:   A student who meets either of the following requirements. 1040ez tax instructions Attends a primary or secondary school or pursues a degree at a college or university, or Attends an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. 1040ez tax instructions Designated beneficiary:   The individual named in the document creating the account/plan who is to receive the benefit of the funds in the account/plan. 1040ez tax instructions Eligible educational institution:    American opportunity credit. 1040ez tax instructions Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. 1040ez tax instructions It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 1040ez tax instructions Coverdell education savings account (ESA). 1040ez tax instructions Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. 1040ez tax instructions It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 1040ez tax instructions Also included is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. 1040ez tax instructions Education savings bond program. 1040ez tax instructions Same as American opportunity credit in this category. 1040ez tax instructions IRA, early distributions from. 1040ez tax instructions Same as American opportunity credit in this category. 1040ez tax instructions Lifetime learning credit. 1040ez tax instructions Same as American opportunity credit in this category. 1040ez tax instructions Qualified tuition program (QTP). 1040ez tax instructions Same as American opportunity credit in this category. 1040ez tax instructions Scholarships and fellowships. 1040ez tax instructions An institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. 1040ez tax instructions Student loan, cancellation of. 1040ez tax instructions Same as Scholarships and fellowships in this category. 1040ez tax instructions Student loan interest deduction. 1040ez tax instructions Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. 1040ez tax instructions It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 1040ez tax instructions Also included is an institution that conducts 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. 1040ez tax instructions Tuition and fees deduction. 1040ez tax instructions Same as American opportunity credit in this category. 1040ez tax instructions Eligible student:    American opportunity credit. 1040ez tax instructions A student who meets all of the following requirements for the tax year for which the credit is being determined. 1040ez tax instructions Did not have expenses that were used to figure an American opportunity or Hope Scholarship Credit in any 4 earlier tax years. 1040ez tax instructions Had not completed the first 4 years of postsecondary education (generally the freshman through senior years). 1040ez tax instructions For at least one academic period beginning in the tax year, was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. 1040ez tax instructions Was free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year. 1040ez tax instructions Lifetime learning credit. 1040ez tax instructions A student who is enrolled in one or more courses at an eligible educational institution. 1040ez tax instructions Student loan interest deduction. 1040ez tax instructions A student who was enrolled at least half-time in a program leading to a postsecondary degree, certificate, or other recognized educational credential at an eligible educational institution. 1040ez tax instructions Tuition and fees deduction. 1040ez tax instructions A student who is enrolled in one or more courses at an eligible educational institution. 1040ez tax instructions Half-time student:   A student who is enrolled for at least half the full-time academic work load for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. 1040ez tax instructions Modified adjusted gross income (MAGI):    American opportunity credit. 1040ez tax instructions Adjusted gross income (AGI) as figured on the federal income tax return, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. 1040ez tax instructions Coverdell education savings account (ESA). 1040ez tax instructions Same as American opportunity credit in this category. 1040ez tax instructions Education savings bond program. 1040ez tax instructions Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any savings bond interest exclusion and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, Exclusion of income by bona fide residents of Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for student loan interest, Deduction for tuition and fees, and Deduction for domestic production activities. 1040ez tax instructions Lifetime learning credit. 1040ez tax instructions Same as American opportunity credit in this category. 1040ez tax instructions Student loan interest deduction. 1040ez tax instructions Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any student loan interest deduction, tuition and fees deduction, or domestic production activities deduction, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. 1040ez tax instructions Tuition and fees deduction. 1040ez tax instructions Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any tuition and fees deduction, or domestic production activities deduction, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. 1040ez tax instructions Phaseout:   The amount of credit or deduction allowed is reduced when modified adjusted gross income (MAGI) is greater than a specified amount of income. 1040ez tax instructions Qualified education expenses:   See pertinent chapter for specific items. 1040ez tax instructions    American opportunity credit. 1040ez tax instructions Tuition and certain related expenses (including student activity fees) required for enrollment or attendance at an eligible educational institution. 1040ez tax instructions Books, supplies, and equipment needed for a course of study are included even if not purchased from the educational institution. 1040ez tax instructions Does not include expenses for room and board. 1040ez tax instructions Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program. 1040ez tax instructions Coverdell education savings account (ESA). 1040ez tax instructions Expenses related to or required for enrollment or attendance of the designated beneficiary at an eligible elementary, secondary, or postsecondary school. 1040ez tax instructions Many specialized expenses included for K–12. 1040ez tax instructions Also includes expenses for special needs services and contribution to qualified tuition program (QTP). 1040ez tax instructions Education savings bond program. 1040ez tax instructions Tuition and fees required to enroll at or attend an eligible educational institution. 1040ez tax instructions Also includes contributions to a qualified tuition program (QTP) or Coverdell education savings account (ESA). 1040ez tax instructions Does not include expenses for room and board. 1040ez tax instructions Does not include expenses for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. 1040ez tax instructions IRA, early distributions from. 1040ez tax instructions Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half-time. 1040ez tax instructions Also includes expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance. 1040ez tax instructions Lifetime learning credit. 1040ez tax instructions Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. 1040ez tax instructions Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. 1040ez tax instructions Does not include expenses for room and board. 1040ez tax instructions Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program, unless taken by the student to acquire or improve job skills. 1040ez tax instructions Qualified tuition program (QTP). 1040ez tax instructions Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half-time. 1040ez tax instructions Includes expenses for special needs services and computer access. 1040ez tax instructions Scholarships and fellowships. 1040ez tax instructions Expenses for tuition and fees required to enroll at or attend an eligible educational institution, and course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. 1040ez tax instructions Course-related items must be required of all students in the course of instruction. 1040ez tax instructions Student loan interest deduction. 1040ez tax instructions Total costs of attending an eligible educational institution, including graduate school (however, limitations may apply to the cost of room and board allowed). 1040ez tax instructions Tuition and fees deduction. 1040ez tax instructions Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. 1040ez tax instructions Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. 1040ez tax instructions Recapture:   To include as income on your current year's return an amount allowed as a deduction in a prior year. 1040ez tax instructions To include as tax on your current year's return an amount allowed as a credit in a prior year. 1040ez tax instructions Rollover:   A tax-free distribution to you of cash or other assets from a tax-favored plan that you contribute to another tax-favored plan. 1040ez tax instructions Transfer:   A movement of funds in a tax-favored plan from one trustee directly to another, either at your request or at the trustee's request. 1040ez tax instructions Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

SOI Tax Stats - Controlled Foreign Corporations

Return to Tax Stats home page

  • Data are taken from Form 5471 - Information Return of U.S. Persons With Respect to Certain Foreign Corporations.
  • For U.S. income tax purposes, a foreign corporation is "controlled" if U.S. shareholders own more than 50% of its outstanding voting stock.
  • Data are also available for the One-Time Dividend Received Deduction reported on Form 8895.

Statistical Tables     SOI Bulletin Articles     Metadata   
 


Statistical Tables

Excel Viewer

U.S. Corporations and Their Controlled Foreign Corporations
     Data Presented: Number, Assets, Receipts, Earnings, Taxes, Distributions, Subpart F Income, and Related Party Transactions
     Classified by: Selected NAICS Industrial Sector*
     Tax Years: 2008     2006     2004   
 
     Classified by: Selected Country of Incorporation
     Tax Years: 2008     2006     2004   
 
     Classified by: Selected Country of Incorporation and NAICS Industrial Sector*
     Tax Years: 2008     2006     2004   
 
U.S. Corporations with Total Assets of $500 Million or More and Their 7,500 Largest Controlled Foreign Corporations
     Data Presented: Number, Assets, Receipts, Earnings, Taxes, Distributions, and Subpart F Income
     Classified by: Selected NAICS Industrial Sector*
     Tax Years: 2002   2000   1998   1996   1994   1992   1988
 
     Classified by: Selected Country of Incorporation
     Tax Years: 2002   2000   1998   1996   1994   1992   1988
 
     Classified by: Selected Country of Incorporation and NAICS Industrial Sector*
     Tax Years: 2002   2000   1998   1996   1994   1988


 

U.S. Corporations with Total Assets of $500 Million or More and Their 7,500 Largest Controlled Foreign Corporations
     Data Presented: Number, Assets, Receipts, and Earnings, Standard Industrial Classification (SIC) and North American Industry Classification System (NAICS)
     Classified by: Selected NAICS Industrial Sector
     Tax Year: 1998


*Note:  For Tax Years prior to 1998, industry data are presented by Standard Industry Classification (SIC).  Industry data for Tax Years 1998 to present are presented by North American Industry Classification System (NAICS)


SOI Bulletin Articles

The following are available as PDF files.  A free Adobe® reader is available for download, if needed.

Return to Tax Stats home page

Page Last Reviewed or Updated: 15-Jan-2014

The 1040ez Tax Instructions

1040ez tax instructions 6. 1040ez tax instructions   Tuition and Fees Deduction Table of Contents IntroductionWhat is the tax benefit of the tuition and fees deduction. 1040ez tax instructions Can You Claim the DeductionWho Can Claim the Deduction Who Cannot Claim the Deduction What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses Figuring the DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Claiming the Deduction Illustrated Example Introduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). 1040ez tax instructions 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. 1040ez tax instructions The qualified expenses must be for higher education, as explained later under Qualified Education Expenses . 1040ez tax instructions What is the tax benefit of the tuition and fees deduction. 1040ez tax instructions   The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. 1040ez tax instructions   This deduction is taken as an adjustment to income. 1040ez tax instructions This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). 1040ez tax instructions This deduction may be beneficial to you if you do not qualify for the American opportunity or lifetime learning credits. 1040ez tax instructions You can choose the education benefit that will give you the lowest tax. 1040ez tax instructions You may want to compare the tuition and fees deduction to the education credits. 1040ez tax instructions See chapter 2, American Opportunity Credit and chapter 3, Lifetime Learning Credit for more information on the education credits. 1040ez tax instructions Table 6-1. 1040ez tax instructions Tuition and Fees Deduction at a Glance summarizes the features of the tuition and fees deduction. 1040ez tax instructions Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. 1040ez tax instructions Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. 1040ez tax instructions You pay qualified education expenses of higher education. 1040ez tax instructions You pay the education expenses for an eligible student. 1040ez tax instructions The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return. 1040ez tax instructions The term “qualified education expenses” is defined later under Qualified Education Expenses . 1040ez tax instructions “Eligible student” is defined later under Who Is an Eligible Student . 1040ez tax instructions For more information on claiming the deduction for a dependent, see Who Can Claim a Dependent's Expenses , later. 1040ez tax instructions Table 6-1. 1040ez tax instructions Tuition and Fees Deduction at a Glance Do not rely on this table alone. 1040ez tax instructions Refer to the text for complete details. 1040ez tax instructions Question Answer What is the maximum benefit? You can reduce your income subject to tax by up to $4,000. 1040ez tax instructions What is the limit on modified adjusted gross income (MAGI)? $160,000 if married filing a joint return; $80,000 if single, head of household, or qualifying widow(er). 1040ez tax instructions Where is the deduction taken? As an adjustment to income on  Form 1040 or Form 1040A. 1040ez tax instructions 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. 1040ez tax instructions 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. 1040ez tax instructions Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. 1040ez tax instructions Your filing status is married filing separately. 1040ez tax instructions Another person can claim an exemption for you as a dependent on his or her tax return. 1040ez tax instructions You cannot take the deduction even if the other person does not actually claim that exemption. 1040ez tax instructions Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). 1040ez tax instructions 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. 1040ez tax instructions More information on nonresident aliens can be found in Publication 519. 1040ez tax instructions 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. 1040ez tax instructions Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period beginning in 2013 or in the first 3 months of 2014. 1040ez tax instructions For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 deduction. 1040ez tax instructions Academic period. 1040ez tax instructions   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. 1040ez tax instructions 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. 1040ez tax instructions Paid with borrowed funds. 1040ez tax instructions   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. 1040ez tax instructions 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. 1040ez tax instructions Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. 1040ez tax instructions Student withdraws from class(es). 1040ez tax instructions   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. 1040ez tax instructions 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. 1040ez tax instructions Eligible educational institution. 1040ez tax instructions   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. 1040ez tax instructions S. 1040ez tax instructions Department of Education. 1040ez tax instructions It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 1040ez tax instructions The educational institution should be able to tell you if it is an eligible educational institution. 1040ez tax instructions   Certain educational institutions located outside the United States also participate in the U. 1040ez tax instructions S. 1040ez tax instructions Department of Education's Federal Student Aid (FSA) programs. 1040ez tax instructions Related expenses. 1040ez tax instructions   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. 1040ez tax instructions Prepaid expenses. 1040ez tax instructions   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. 1040ez tax instructions See Academic period , earlier. 1040ez tax instructions For example, you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). 1040ez tax instructions You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). 1040ez tax instructions In the following examples, assume that each student is an eligible student and each college or university an eligible educational institution. 1040ez tax instructions Example 1. 1040ez tax instructions Jackson is a sophomore in University V's degree program in dentistry. 1040ez tax instructions This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. 1040ez tax instructions Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified education expense. 1040ez tax instructions Example 2. 1040ez tax instructions Donna and Charles, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. 1040ez tax instructions The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. 1040ez tax instructions Charles bought his books from a friend, so what he paid for them is not a qualified education expense. 1040ez tax instructions Donna bought hers at College W's bookstore. 1040ez tax instructions Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified education expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. 1040ez tax instructions Example 3. 1040ez tax instructions When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. 1040ez tax instructions This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and the student government. 1040ez tax instructions No portion of the fee covers personal expenses. 1040ez tax instructions Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. 1040ez tax instructions Therefore, it is a qualified expense. 1040ez tax instructions No Double Benefit Allowed You cannot do any of the following. 1040ez tax instructions Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. 1040ez tax instructions 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. 1040ez tax instructions 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). 1040ez tax instructions 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. 1040ez tax instructions See Coordination With Tuition and Fees Deduction in chapter 8, Qualified Tuition Program, later. 1040ez tax instructions Deduct qualified education expenses that have been paid with tax-free interest on U. 1040ez tax instructions S. 1040ez tax instructions savings bonds (Form 8815). 1040ez tax instructions See Figuring the Tax-Free Amount in chapter 10, Education Savings Bond Program, later. 1040ez tax instructions Deduct qualified education expenses that have been paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. 1040ez tax instructions See the following section on Adjustments to Qualified Education Expenses. 1040ez tax instructions Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. 1040ez tax instructions The result is the amount of adjusted qualified education expenses for each student. 1040ez tax instructions You must also reduce qualified education expenses by the other amounts referred to in No Double Benefit Allowed , earlier. 1040ez tax instructions Tax-free educational assistance. 1040ez tax instructions   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. 1040ez tax instructions See Academic period , earlier. 1040ez tax instructions   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. 1040ez tax instructions 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). 1040ez tax instructions   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. 1040ez tax instructions 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. 1040ez tax instructions   This tax-free education assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 1040ez tax instructions Generally, any scholarship or fellowship is treated as tax free. 1040ez tax instructions However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. 1040ez tax instructions The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 1040ez tax instructions The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 1040ez tax instructions You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. 1040ez tax instructions For details, see Adjustments to Qualified Education Expenses in chapters 2 and 3. 1040ez tax instructions Refunds. 1040ez tax instructions   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. 1040ez tax instructions Some tax-free educational assistance received after 2013 may be treated as a refund. 1040ez tax instructions See Tax-free educational assistance , earlier. 1040ez tax instructions Refunds received in 2013. 1040ez tax instructions   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. 1040ez tax instructions Refunds received after 2013 but before your income tax return is filed. 1040ez tax instructions   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. 1040ez tax instructions Refunds received after 2013 and after your income tax return is filed. 1040ez tax instructions   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. 1040ez tax instructions See Credit recapture , later. 1040ez tax instructions Coordination with Coverdell education savings accounts and qualified tuition programs. 1040ez tax instructions   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). 1040ez tax instructions 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. 1040ez tax instructions Credit recapture. 1040ez tax instructions    If any tax-free educational assistance for the qualified education expenses paid in 2013 or any refund of your qualified education expenses paid in 2013 is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. 1040ez tax instructions You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing that amount by the amount of the refund or tax-free educational assistance. 1040ez tax instructions You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you had claimed the refigured credit(s). 1040ez tax instructions Include that amount as an additional tax for the year the refund or tax-free assistance was received. 1040ez tax instructions Example. 1040ez tax instructions   You paid $3,500 of qualified education expenses in December 2013, and your child began college in January 2014. 1040ez tax instructions You claimed $3,500 as the tuition and fees deduction on your 2013 income tax return. 1040ez tax instructions The reduction reduced your taxable income by $3,500. 1040ez tax instructions Also, you claimed no tax credits in 2013. 1040ez tax instructions Your child withdrew from two classes and you received a refund of $2,000 in 2014 after you filed your 2013 tax return. 1040ez tax instructions Refigure your 2013 tuition and fees deduction using $1,500 of qualified education expense instead of the $3,500. 1040ez tax instructions The refigured tuition and fees deduction is $1,500. 1040ez tax instructions Do not file an amended 2013 tax return to account for this adjustment. 1040ez tax instructions Instead, include the difference of $2,000 (but only to the extent this difference would have increased your 2013 tax) on the “Other income” line of your 2014 Form 1040. 1040ez tax instructions You cannot file Form 1040A for 2014. 1040ez tax instructions Amounts that do not reduce qualified education expenses. 1040ez tax instructions   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. 1040ez tax instructions   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. 1040ez tax instructions The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Restrictions. 1040ez tax instructions The use of the money is not restricted. 1040ez tax instructions Example 1. 1040ez tax instructions In 2013, Jackie paid $3,000 for tuition and $5,000 for room and board at University X. 1040ez tax instructions The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. 1040ez tax instructions To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. 1040ez tax instructions The terms of the scholarship state that it can be used to pay any of Jackie's college expenses. 1040ez tax instructions University X applies the $2,000 scholarship against Jackie's $8,000 total bill, and Jackie pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. 1040ez tax instructions Jackie does not report any portion of the scholarship as income on her tax return. 1040ez tax instructions In figuring the tuition and fees deduction, Jackie must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. 1040ez tax instructions The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. 1040ez tax instructions Jackie is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship) in 2013. 1040ez tax instructions Example 2. 1040ez tax instructions The facts are the same as in Example 1, except that Jackie reports her entire scholarship as income on her tax return. 1040ez tax instructions Because Jackie reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. 1040ez tax instructions Jackie is treated as having paid $3,000 in qualified education expenses. 1040ez tax instructions 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. 1040ez tax instructions This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. 1040ez tax instructions Sports, games, hobbies, and noncredit courses. 1040ez tax instructions   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. 1040ez tax instructions However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. 1040ez tax instructions Comprehensive or bundled fees. 1040ez tax instructions   Some eligible educational institutions combine all of their fees for an academic period into one amount. 1040ez tax instructions 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. 1040ez tax instructions 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. 1040ez tax instructions See Figuring the Deduction , later, for more information about Form 1098-T. 1040ez tax instructions Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). 1040ez tax instructions 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. 1040ez tax instructions For you to be able to deduct qualified education expenses for your dependent, you must claim an exemption for that individual. 1040ez tax instructions You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. 1040ez tax instructions IF your dependent is an eligible student and you. 1040ez tax instructions . 1040ez tax instructions . 1040ez tax instructions AND. 1040ez tax instructions . 1040ez tax instructions . 1040ez tax instructions THEN. 1040ez tax instructions . 1040ez tax instructions . 1040ez tax instructions 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. 1040ez tax instructions Your dependent cannot take a deduction. 1040ez tax instructions claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 1040ez tax instructions do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. 1040ez tax instructions do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 1040ez tax instructions Expenses paid by dependent. 1040ez tax instructions   If your dependent pays qualified education expenses, no one can take a tuition and fees deduction for those expenses. 1040ez tax instructions Neither you nor your dependent can deduct the expenses. 1040ez tax instructions For purposes of the tuition and fees deduction, you are not treated as paying any expenses actually paid by a dependent for whom you or anyone other than the dependent can claim an exemption. 1040ez tax instructions This rule applies even if you do not claim an exemption for your dependent on your tax return. 1040ez tax instructions Expenses paid by you. 1040ez tax instructions   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring your tuition and fees deduction. 1040ez tax instructions Expenses paid under divorce decree. 1040ez tax instructions   Qualified education expenses paid directly to an eligible educational institution for a student under a court-approved divorce decree are treated as paid by the student. 1040ez tax instructions Only the student would be eligible to take a tuition and fees deduction for that payment, and then only if no one else could claim an exemption for the student. 1040ez tax instructions Expenses paid by others. 1040ez tax instructions   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. 1040ez tax instructions In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. 1040ez tax instructions If you claim, or can claim, an exemption on your tax return for the student, you are not considered to have paid the expenses and you cannot deduct them. 1040ez tax instructions If the student is not a dependent, only the student can deduct payments made directly to the institution for his or her expenses. 1040ez tax instructions If the student is your dependent, no one can deduct the payments. 1040ez tax instructions Example. 1040ez tax instructions In 2013, Ms. 1040ez tax instructions Baker makes a payment directly to an eligible educational institution for her grandson Dan's qualified education expenses. 1040ez tax instructions For purposes of deducting tuition and fees, Dan is treated as receiving the money from his grandmother and, in turn, paying his own qualified education expenses. 1040ez tax instructions If an exemption cannot be claimed for Dan on anyone else's tax return, only Dan can claim a tuition and fees deduction for his grandmother's payment. 1040ez tax instructions If someone else can claim an exemption for Dan, no one will be allowed a deduction for Ms. 1040ez tax instructions Baker's payment. 1040ez tax instructions Tuition reduction. 1040ez tax instructions   When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. 1040ez tax instructions If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. 1040ez tax instructions For more information on tuition reductions, see Qualified Tuition Reduction , in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 1040ez tax instructions Figuring the Deduction The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. 1040ez tax instructions See Effect of the Amount of Your Income on the Amount of Your Deduction , later. 1040ez tax instructions Form 1098-T. 1040ez tax instructions   To help you figure your tuition and fees deduction, the student should receive Form 1098-T (see Appendix A for a completed example of Form 1098-T). 1040ez tax instructions 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. 1040ez tax instructions An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. 1040ez tax instructions However, the amount in boxes 1 and 2 of Form 1098-T might be different than what you paid. 1040ez tax instructions When figuring the deduction, use only the amounts you paid in 2013 for qualified education expenses. 1040ez tax instructions   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. 1040ez tax instructions    The eligible educational institution may ask for a completed Form W-9S or similar statement to obtain the student's name, address, and taxpayer identification number. 1040ez tax instructions Effect of the Amount of Your Income on the Amount of Your Deduction If your MAGI is not more than $65,000 ($130,000 if you are married filing jointly), your maximum tuition and fees deduction is $4,000. 1040ez tax instructions If your MAGI is larger than $65,000 ($130,000 if you are married filing jointly), but is not more than $80,000 ($160,000 if you are married filing jointly), your maximum deduction is $2,000. 1040ez tax instructions No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000 if you are married filing jointly). 1040ez tax instructions Modified adjusted gross income (MAGI). 1040ez tax instructions   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for tuition and fees. 1040ez tax instructions However, as discussed below, there may be other modifications. 1040ez tax instructions MAGI when using Form 1040A. 1040ez tax instructions   If you file Form 1040A, your MAGI is the AGI on line 22 of that form, figured without taking into account any amount on line 19 (tuition and fees deduction). 1040ez tax instructions MAGI when using Form 1040. 1040ez tax instructions   If you file Form 1040, your MAGI is the AGI on line 38 of that form, figured without taking into account any amount on line 34 (tuition and fees deduction) or line 35 (domestic production activities deduction), and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. 1040ez tax instructions   Table 6-2 shows how the amount of your MAGI can affect your tuition and fees deduction. 1040ez tax instructions   You can use Worksheet 6-1. 1040ez tax instructions MAGI for the Tuition and Fees Deduction , later, to figure your MAGI. 1040ez tax instructions Table 6-2. 1040ez tax instructions Effect of MAGI on Maximum Tuition and Fees Deduction IF your filing status is. 1040ez tax instructions . 1040ez tax instructions . 1040ez tax instructions AND your MAGI is. 1040ez tax instructions . 1040ez tax instructions . 1040ez tax instructions THEN your maximum tuition and fees deduction is. 1040ez tax instructions . 1040ez tax instructions . 1040ez tax instructions single,  head of household, or qualifying widow(er) not more than $65,000 $4,000. 1040ez tax instructions more than $65,000  but not more than $80,000 $2,000. 1040ez tax instructions more than $80,000 $0. 1040ez tax instructions married filing joint return not more than $130,000 $4,000. 1040ez tax instructions more than $130,000 but not more than $160,000 $2,000. 1040ez tax instructions more than $160,000 $0. 1040ez tax instructions Claiming the Deduction You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A. 1040ez tax instructions Enter the deduction on Form 1040, line 34, or Form 1040A, line 19. 1040ez tax instructions A filled-in Form 8917 is shown at the end of this chapter. 1040ez tax instructions Illustrated Example Tim Pfister, a single taxpayer, enrolled full-time at a local college to earn a degree in engineering. 1040ez tax instructions This is the first year of his postsecondary education. 1040ez tax instructions During 2013, he paid $3,600 for his qualified 2013 tuition expense. 1040ez tax instructions Both he and the college meet all of the requirements for the tuition and fees deduction. 1040ez tax instructions Tim's total income (Form 1040, line 22) and MAGI are $26,000. 1040ez tax instructions He figures his deduction of $3,600 as shown on Form 8917, later. 1040ez tax instructions Worksheet 6-1. 1040ez tax instructions MAGI for the Tuition and Fees Deduction Use this worksheet if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. 1040ez tax instructions Before using this worksheet, you must complete Form 1040, lines 7 through 33, and figure any amount to be entered on the dotted line next to line 36. 1040ez tax instructions 1. 1040ez tax instructions Enter the amount from Form 1040, line 22   1. 1040ez tax instructions         2. 1040ez tax instructions Enter the total from Form 1040, lines 23 through 33   2. 1040ez tax instructions               3. 1040ez tax instructions Enter the total of any amounts entered on the dotted line next to Form 1040, line 36   3. 1040ez tax instructions               4. 1040ez tax instructions Add lines 2 and 3   4. 1040ez tax instructions         5. 1040ez tax instructions Subtract line 4 from line 1   5. 1040ez tax instructions         6. 1040ez tax instructions Enter your foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   6. 1040ez tax instructions         7. 1040ez tax instructions Enter your foreign housing deduction (Form 2555, line 50)   7. 1040ez tax instructions         8. 1040ez tax instructions Enter the amount of income from Puerto Rico you are excluding   8. 1040ez tax instructions         9. 1040ez tax instructions Enter the amount of income from American Samoa you are  excluding (Form 4563, line 15)   9. 1040ez tax instructions         10. 1040ez tax instructions Add lines 5 through 9. 1040ez tax instructions This is your modified adjusted gross income   10. 1040ez tax instructions     Note. 1040ez tax instructions If the amount on line 10 is more than $80,000 ($160,000 if married filing jointly),  you cannot take the deduction for tuition and fees. 1040ez tax instructions       This image is too large to be displayed in the current screen. 1040ez tax instructions Please click the link to view the image. 1040ez tax instructions Form 8917 for Tim Pfister Prev  Up  Next   Home   More Online Publications