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2011 1040

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2011 1040

2011 1040 3. 2011 1040   Personal Exemptions and Dependents Table of Contents What's New Introduction Useful Items - You may want to see: ExemptionsPersonal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. 2011 1040 Taxpayer identification numbers for aliens. 2011 1040 Taxpayer identification numbers for adoptees. 2011 1040 What's New Exemption amount. 2011 1040  The amount you can deduct for each exemption has increased. 2011 1040 It was $3,800 for 2012. 2011 1040 It is $3,900 for 2013. 2011 1040 Exemption phaseout. 2011 1040  You lose at least part of the benefit of your exemptions if your adjusted gross income is more than a certain amount. 2011 1040 For 2013, this amount is $150,000 for a married individual filing a separate return; $250,000 for a single individual; $275,000 for a head of household; and $300,000 for married individuals filing jointly or a qualifying widow(er). 2011 1040 See Phaseout of Exemptions , later. 2011 1040 Introduction This chapter discusses the following topics. 2011 1040 Personal exemptions — You generally can take one for yourself and, if you are married, one for your spouse. 2011 1040 Exemptions for dependents — You generally can take an exemption for each of your dependents. 2011 1040 A dependent is your qualifying child or qualifying relative. 2011 1040 If you are entitled to claim an exemption for a dependent, that dependent cannot claim a personal exemption on his or her own tax return. 2011 1040 Phaseout of exemptions — Your deduction is reduced if your adjusted gross income is more than a certain amount. 2011 1040 Social security number (SSN) requirement for dependents — You must list the SSN of any dependent for whom you claim an exemption. 2011 1040 Deduction. 2011 1040   Exemptions reduce your taxable income. 2011 1040 You can deduct $3,900 for each exemption you claim in 2013. 2011 1040 But you may lose at least part of the dollar amount of your exemptions if your adjusted gross income is more than a certain amount. 2011 1040 See Phaseout of Exemptions , later. 2011 1040 How to claim exemptions. 2011 1040    How you claim an exemption on your tax return depends on which form you file. 2011 1040    If you file Form 1040EZ, the exemption amount is combined with the standard deduction amount and entered on line 5. 2011 1040    If you file Form 1040A, complete lines 6a through 6d. 2011 1040 The total number of exemptions you can claim is the total in the box on line 6d. 2011 1040 Also complete line 26. 2011 1040   If you file Form 1040, complete lines 6a through 6d. 2011 1040 The total number of exemptions you can claim is the total in the box on line 6d. 2011 1040 Also complete line 42. 2011 1040 Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information Form (and Instructions) 2120 Multiple Support Declaration 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent Exemptions There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). 2011 1040 While each is worth the same amount ($3,900 for 2013), different rules apply to each type. 2011 1040 Personal Exemptions You are generally allowed one exemption for yourself. 2011 1040 If you are married, you may be allowed one exemption for your spouse. 2011 1040 These are called personal exemptions. 2011 1040 Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. 2011 1040 If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. 2011 1040 Your Spouse's Exemption Your spouse is never considered your dependent. 2011 1040 Joint return. 2011 1040   On a joint return you can claim one exemption for yourself and one for your spouse. 2011 1040 Separate return. 2011 1040   If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. 2011 1040 This is true even if the other taxpayer does not actually claim your spouse as a dependent. 2011 1040 You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. 2011 1040 S. 2011 1040 tax purposes, must not be filing a return, and must not be the dependent of another taxpayer. 2011 1040 Death of spouse. 2011 1040   If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . 2011 1040 If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . 2011 1040   If you remarried during the year, you cannot take an exemption for your deceased spouse. 2011 1040   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. 2011 1040 If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. 2011 1040 Divorced or separated spouse. 2011 1040   If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. 2011 1040 This rule applies even if you provided all of your former spouse's support. 2011 1040 Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. 2011 1040 You can claim an exemption for a dependent even if your dependent files a return. 2011 1040 The term “dependent” means: A qualifying child, or A qualifying relative. 2011 1040 The terms “ qualifying child ” and “ qualifying relative ” are defined later. 2011 1040 You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. 2011 1040 Dependent taxpayer test. 2011 1040 Joint return test. 2011 1040 Citizen or resident test. 2011 1040 These three tests are explained in detail later. 2011 1040 All the requirements for claiming an exemption for a dependent are summarized in Table 3-1. 2011 1040 Table 3-1. 2011 1040 Overview of the Rules for Claiming an Exemption for a Dependent Caution. 2011 1040 This table is only an overview of the rules. 2011 1040 For details, see the rest of this chapter. 2011 1040 You cannot claim any dependents if you (or your spouse, if filing jointly) could be claimed as a dependent by another taxpayer. 2011 1040   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. 2011 1040   You cannot claim a person as a dependent unless that person is a U. 2011 1040 S. 2011 1040 citizen, U. 2011 1040 S. 2011 1040 resident alien, U. 2011 1040 S. 2011 1040 national, or a resident of Canada or Mexico. 2011 1040 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. 2011 1040   Tests To Be a Qualifying Child   Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. 2011 1040   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled. 2011 1040   The child must have lived with you for more than half of the year. 2011 1040 2  The child must not have provided more than half of his or her own support for the year. 2011 1040   The child is not filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid). 2011 1040  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. 2011 1040 See the Special Rule for Qualifying Child of More Than One Person to find out which person is the person entitled to claim the child as a qualifying child. 2011 1040   The person cannot be your qualifying child or the qualifying child of any other taxpayer. 2011 1040   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). 2011 1040   The person's gross income for the year must be less than $3,900. 2011 1040 3  You must provide more than half of the person's total support for the year. 2011 1040 4  1There is an exception for certain adopted children. 2011 1040 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. 2011 1040 3There is an exception if the person is disabled and has income from a sheltered workshop. 2011 1040 4There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. 2011 1040 Dependent not allowed a personal exemption. 2011 1040 If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. 2011 1040 This is true even if you do not claim the dependent's exemption on your return. 2011 1040 It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. 2011 1040 Housekeepers, maids, or servants. 2011 1040   If these people work for you, you cannot claim exemptions for them. 2011 1040 Child tax credit. 2011 1040   You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. 2011 1040 For more information, see chapter 34. 2011 1040 Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. 2011 1040 Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. 2011 1040 If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. 2011 1040 Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. 2011 1040 Exception. 2011 1040   You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. 2011 1040 Example 1—child files joint return. 2011 1040 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 2011 1040 He earned $25,000 for the year. 2011 1040 The couple files a joint return. 2011 1040 You cannot take an exemption for your daughter. 2011 1040 Example 2—child files joint return only as claim for refund of withheld tax. 2011 1040 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 2011 1040 Neither is required to file a tax return. 2011 1040 They do not have a child. 2011 1040 Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. 2011 1040 The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. 2011 1040 You can claim exemptions for each of them if all the other tests to do so are met. 2011 1040 Example 3—child files joint return to claim American opportunity credit. 2011 1040 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 2011 1040 He and his wife are not required to file a tax return. 2011 1040 However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 2011 1040 Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. 2011 1040 The exception to the joint return test does not apply, so you cannot claim an exemption for either of them. 2011 1040 Citizen or Resident Test You cannot claim a person as a dependent unless that person is a U. 2011 1040 S. 2011 1040 citizen, U. 2011 1040 S. 2011 1040 resident alien, U. 2011 1040 S. 2011 1040 national, or a resident of Canada or Mexico. 2011 1040 However, there is an exception for certain adopted children, as explained next. 2011 1040 Exception for adopted child. 2011 1040   If you are a U. 2011 1040 S. 2011 1040 citizen or U. 2011 1040 S. 2011 1040 national who has legally adopted a child who is not a U. 2011 1040 S. 2011 1040 citizen, U. 2011 1040 S. 2011 1040 resident alien, or U. 2011 1040 S. 2011 1040 national, this test is met if the child lived with you as a member of your household all year. 2011 1040 This exception also applies if the child was lawfully placed with you for legal adoption. 2011 1040 Child's place of residence. 2011 1040   Children usually are citizens or residents of the country of their parents. 2011 1040   If you were a U. 2011 1040 S. 2011 1040 citizen when your child was born, the child may be a U. 2011 1040 S. 2011 1040 citizen and meet this test even if the other parent was a nonresident alien and the child was born in a foreign country. 2011 1040 Foreign students' place of residence. 2011 1040   Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. 2011 1040 S. 2011 1040 residents and do not meet this test. 2011 1040 You cannot claim an exemption for them. 2011 1040 However, if you provided a home for a foreign student, you may be able to take a charitable contribution deduction. 2011 1040 See Expenses Paid for Student Living With You in chapter 24. 2011 1040 U. 2011 1040 S. 2011 1040 national. 2011 1040   A U. 2011 1040 S. 2011 1040 national is an individual who, although not a U. 2011 1040 S. 2011 1040 citizen, owes his or her allegiance to the United States. 2011 1040 U. 2011 1040 S. 2011 1040 nationals include American Samoans and Northern Mariana Islanders who chose to become U. 2011 1040 S. 2011 1040 nationals instead of U. 2011 1040 S. 2011 1040 citizens. 2011 1040 Qualifying Child Five tests must be met for a child to be your qualifying child. 2011 1040 The five tests are: Relationship, Age, Residency, Support, and Joint return. 2011 1040 These tests are explained next. 2011 1040 If a child meets the five tests to be the qualifying child of more than one person, a special rule applies to determine which person can actually treat the child as a qualifying child. 2011 1040 See Special Rule for Qualifying Child of More Than One Person, later. 2011 1040 Relationship Test To meet this test, a child must be: Your son, daughter, stepchild, foster child, or a descendant (for example, your grandchild) of any of them, or Your brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant (for example, your niece or nephew) of any of them. 2011 1040 Adopted child. 2011 1040   An adopted child is always treated as your own child. 2011 1040 The term “adopted child” includes a child who was lawfully placed with you for legal adoption. 2011 1040 Foster child. 2011 1040   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 2011 1040 Age Test To meet this test, a child must be: Under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), A student under age 24 at the end of the year and younger than you (or your spouse, if filing jointly), or Permanently and totally disabled at any time during the year, regardless of age. 2011 1040 Example. 2011 1040 Your son turned 19 on December 10. 2011 1040 Unless he was permanently and totally disabled or a student, he does not meet the age test because, at the end of the year, he was not under age 19. 2011 1040 Child must be younger than you or spouse. 2011 1040   To be your qualifying child, a child who is not permanently and totally disabled must be younger than you. 2011 1040 However, if you are married filing jointly, the child must be younger than you or your spouse but does not have to be younger than both of you. 2011 1040 Example 1—child not younger than you or spouse. 2011 1040 Your 23-year-old brother, who is a student and unmarried, lives with you and your spouse. 2011 1040 He is not disabled. 2011 1040 Both you and your spouse are 21 years old, and you file a joint return. 2011 1040 Your brother is not your qualifying child because he is not younger than you or your spouse. 2011 1040 Example 2—child younger than your spouse but not younger than you. 2011 1040 The facts are the same as in Example 1 except your spouse is 25 years old. 2011 1040 Because your brother is younger than your spouse, and you and your spouse are filing a joint return, your brother is your qualifying child, even though he is not younger than you. 2011 1040 Student defined. 2011 1040   To qualify as a student, your child must be, during some part of each of any 5 calendar months of the year: A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency. 2011 1040 The 5 calendar months do not have to be consecutive. 2011 1040 Full-time student. 2011 1040   A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. 2011 1040 School defined. 2011 1040   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. 2011 1040 However, an on-the-job training course, correspondence school, or school offering courses only through the Internet does not count as a school. 2011 1040 Vocational high school students. 2011 1040   Students who work on “co-op” jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. 2011 1040 Permanently and totally disabled. 2011 1040   Your child is permanently and totally disabled if both of the following apply. 2011 1040 He or she cannot engage in any substantial gainful activity because of a physical or mental condition. 2011 1040 A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. 2011 1040 Residency Test To meet this test, your child must have lived with you for more than half the year. 2011 1040 There are exceptions for temporary absences, children who were born or died during the year, kidnapped children, and children of divorced or separated parents. 2011 1040 Temporary absences. 2011 1040   Your child is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. 2011 1040 Your child is also considered to have lived with you during any required hospital stay following birth, as long as the child would have lived with you during that time but for the hospitalization. 2011 1040 Death or birth of child. 2011 1040   A child who was born or died during the year is treated as having lived with you more than half of the year if your home was the child's home more than half of the time he or she was alive during the year. 2011 1040 Child born alive. 2011 1040   You may be able to claim an exemption for a child born alive during the year, even if the child lived only for a moment. 2011 1040 State or local law must treat the child as having been born alive. 2011 1040 There must be proof of a live birth shown by an official document, such as a birth certificate. 2011 1040 The child must be your qualifying child or qualifying relative, and all the other tests to claim an exemption for a dependent must be met. 2011 1040 Stillborn child. 2011 1040   You cannot claim an exemption for a stillborn child. 2011 1040 Kidnapped child. 2011 1040   You may be able to treat your child as meeting the residency test even if the child has been kidnapped. 2011 1040 See Publication 501 for details. 2011 1040 Children of divorced or separated parents (or parents who live apart). 2011 1040   In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. 2011 1040 However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true. 2011 1040 The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of the year, whether or not they are or were married. 2011 1040 The child received over half of his or her support for the year from the parents. 2011 1040 The child is in the custody of one or both parents for more than half of the year. 2011 1040 Either of the following statements is true. 2011 1040 The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. 2011 1040 (If the decree or agreement went into effect after 1984 and before 2009, see Post-1984 and pre-2009 divorce decree or separation agreement , later. 2011 1040 If the decree or agreement went into effect after 2008, see Post-2008 divorce decree or separation agreement , later. 2011 1040 ) A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during the year. 2011 1040 Custodial parent and noncustodial parent. 2011 1040   The custodial parent is the parent with whom the child lived for the greater number of nights during the year. 2011 1040 The other parent is the noncustodial parent. 2011 1040   If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the year. 2011 1040   A child is treated as living with a parent for a night if the child sleeps: At that parent's home, whether or not the parent is present, or In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation together). 2011 1040 Equal number of nights. 2011 1040   If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income (AGI). 2011 1040 December 31. 2011 1040   The night of December 31 is treated as part of the year in which it begins. 2011 1040 For example, December 31, 2013, is treated as part of 2013. 2011 1040 Emancipated child. 2011 1040   If a child is emancipated under state law, the child is treated as not living with either parent. 2011 1040 See Examples 5 and 6. 2011 1040 Absences. 2011 1040   If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. 2011 1040 But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that night. 2011 1040 Parent works at night. 2011 1040   If, due to a parent's nighttime work schedule, a child lives for a greater number of days, but not nights, with the parent who works at night, that parent is treated as the custodial parent. 2011 1040 On a school day, the child is treated as living at the primary residence registered with the school. 2011 1040 Example 1—child lived with one parent for a greater number of nights. 2011 1040 You and your child’s other parent are divorced. 2011 1040 In 2013, your child lived with you 210 nights and with the other parent 155 nights. 2011 1040 You are the custodial parent. 2011 1040 Example 2—child is away at camp. 2011 1040 In 2013, your daughter lives with each parent for alternate weeks. 2011 1040 In the summer, she spends 6 weeks at summer camp. 2011 1040 During the time she is at camp, she is treated as living with you for 3 weeks and with her other parent, your ex-spouse, for 3 weeks because this is how long she would have lived with each parent if she had not attended summer camp. 2011 1040 Example 3—child lived same number of nights with each parent. 2011 1040 Your son lived with you 180 nights during the year and lived the same number of nights with his other parent, your ex-spouse. 2011 1040 Your AGI is $40,000. 2011 1040 Your ex-spouse's AGI is $25,000. 2011 1040 You are treated as your son's custodial parent because you have the higher AGI. 2011 1040 Example 4—child is at parent’s home but with other parent. 2011 1040 Your son normally lives with you during the week and with his other parent, your ex-spouse, every other weekend. 2011 1040 You become ill and are hospitalized. 2011 1040 The other parent lives in your home with your son for 10 consecutive days while you are in the hospital. 2011 1040 Your son is treated as living with you during this 10-day period because he was living in your home. 2011 1040 Example 5—child emancipated in May. 2011 1040 When your son turned age 18 in May 2013, he became emancipated under the law of the state where he lives. 2011 1040 As a result, he is not considered in the custody of his parents for more than half of the year. 2011 1040 The special rule for children of divorced or separated parents does not apply. 2011 1040 Example 6—child emancipated in August. 2011 1040 Your daughter lives with you from January 1, 2013, until May 31, 2013, and lives with her other parent, your ex-spouse, from June 1, 2013, through the end of the year. 2011 1040 She turns 18 and is emancipated under state law on August 1, 2013. 2011 1040 Because she is treated as not living with either parent beginning on August 1, she is treated as living with you the greater number of nights in 2013. 2011 1040 You are the custodial parent. 2011 1040 Written declaration. 2011 1040    The custodial parent may use either Form 8332 or a similar statement (containing the same information required by the form) to make the written declaration to release the exemption to the noncustodial parent. 2011 1040 The noncustodial parent must attach a copy of the form or statement to his or her tax return. 2011 1040   The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. 2011 1040 Post-1984 and pre-2009 divorce decree or separation agreement. 2011 1040   If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. 2011 1040 The decree or agreement must state all three of the following. 2011 1040 The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support. 2011 1040 The custodial parent will not claim the child as a dependent for the year. 2011 1040 The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent. 2011 1040   The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return. 2011 1040 The cover page (write the other parent's social security number on this page). 2011 1040 The pages that include all of the information identified in items (1) through (3) above. 2011 1040 The signature page with the other parent's signature and the date of the agreement. 2011 1040 Post-2008 divorce decree or separation agreement. 2011 1040   The noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. 2011 1040 The custodial parent must sign either Form 8332 or a similar statement whose only purpose is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must attach a copy to his or her return. 2011 1040 The form or statement must release the custodial parent's claim to the child without any conditions. 2011 1040 For example, the release must not depend on the noncustodial parent paying support. 2011 1040    The noncustodial parent must attach the required information even if it was filed with a return in an earlier year. 2011 1040 Revocation of release of claim to an exemption. 2011 1040   The custodial parent can revoke a release of claim to exemption that he or she previously released to the noncustodial parent on Form 8332 (or a similar statement). 2011 1040 For the revocation to be effective for 2013, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2012 or earlier. 2011 1040 The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the revocation. 2011 1040 Remarried parent. 2011 1040   If you remarry, the support provided by your new spouse is treated as provided by you. 2011 1040 Parents who never married. 2011 1040   This special rule for divorced or separated parents also applies to parents who never married, and who lived apart at all times during the last 6 months of the year. 2011 1040 Support Test (To Be a Qualifying Child) To meet this test, the child cannot have provided more than half of his or her own support for the year. 2011 1040 This test is different from the support test to be a qualifying relative, which is described later. 2011 1040 However, to see what is or is not support, see Support Test (To Be a Qualifying Relative) , later. 2011 1040 If you are not sure whether a child provided more than half of his or her own support, you may find Worksheet 3-1 helpful. 2011 1040 Worksheet 3-1. 2011 1040 Worksheet for Determining Support Funds Belonging to the Person You Supported       1. 2011 1040 Enter the total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year. 2011 1040 Do not include funds provided by the state; include those amounts on line 23 instead 1. 2011 1040     2. 2011 1040 Enter the amount on line 1 that was used for the person's support 2. 2011 1040     3. 2011 1040 Enter the amount on line 1 that was used for other purposes 3. 2011 1040     4. 2011 1040 Enter the total amount in the person's savings and other accounts at the end of the year 4. 2011 1040     5. 2011 1040 Add lines 2 through 4. 2011 1040 (This amount should equal line 1. 2011 1040 ) 5. 2011 1040     Expenses for Entire Household (where the person you supported lived)       6. 2011 1040 Lodging (complete line 6a or 6b):         a. 2011 1040 Enter the total rent paid 6a. 2011 1040       b. 2011 1040 Enter the fair rental value of the home. 2011 1040 If the person you supported owned the home,  also include this amount in line 21 6b. 2011 1040     7. 2011 1040 Enter the total food expenses 7. 2011 1040     8. 2011 1040 Enter the total amount of utilities (heat, light, water, etc. 2011 1040 not included in line 6a or 6b) 8. 2011 1040     9. 2011 1040 Enter the total amount of repairs (not included in line 6a or 6b) 9. 2011 1040     10. 2011 1040 Enter the total of other expenses. 2011 1040 Do not include expenses of maintaining the home, such as mortgage interest, real estate taxes, and insurance 10. 2011 1040     11. 2011 1040 Add lines 6a through 10. 2011 1040 These are the total household expenses 11. 2011 1040     12. 2011 1040 Enter total number of persons who lived in the household 12. 2011 1040     Expenses for the Person You Supported       13. 2011 1040 Divide line 11 by line 12. 2011 1040 This is the person's share of the household expenses 13. 2011 1040     14. 2011 1040 Enter the person's total clothing expenses 14. 2011 1040     15. 2011 1040 Enter the person's total education expenses 15. 2011 1040     16. 2011 1040 Enter the person's total medical and dental expenses not paid for or reimbursed by insurance 16. 2011 1040     17. 2011 1040 Enter the person's total travel and recreation expenses 17. 2011 1040     18. 2011 1040 Enter the total of the person's other expenses 18. 2011 1040     19. 2011 1040 Add lines 13 through 18. 2011 1040 This is the total cost of the person's support for the year 19. 2011 1040     Did the Person Provide More Than Half of His or Her Own Support?       20. 2011 1040 Multiply line 19 by 50% (. 2011 1040 50) 20. 2011 1040     21. 2011 1040 Enter the amount from line 2, plus the amount from line 6b if the person you supported owned  the home. 2011 1040 This is the amount the person provided for his or her own support 21. 2011 1040     22. 2011 1040 Is line 21 more than line 20?   No. 2011 1040 You meet the support test for this person to be your qualifying child. 2011 1040 If this person also meets the other tests to be a qualifying child, stop here; do not complete lines 23–26. 2011 1040 Otherwise, go to line 23 and fill out the rest of the worksheet to determine if this person is your qualifying relative. 2011 1040    Yes. 2011 1040 You do not meet the support test for this person to be either your qualifying child or your qualifying relative. 2011 1040 Stop here. 2011 1040        Did You Provide More Than Half?       23. 2011 1040 Enter the amount others provided for the person's support. 2011 1040 Include amounts provided by state, local, and other welfare societies or agencies. 2011 1040 Do not include any amounts included on line 1 23. 2011 1040     24. 2011 1040 Add lines 21 and 23 24. 2011 1040     25. 2011 1040 Subtract line 24 from line 19. 2011 1040 This is the amount you provided for the person's support 25. 2011 1040     26. 2011 1040 Is line 25 more than line 20?   Yes. 2011 1040 You meet the support test for this person to be your qualifying relative. 2011 1040    No. 2011 1040 You do not meet the support test for this person to be your qualifying relative. 2011 1040 You cannot claim an exemption for this person unless you can do so under a multiple support agreement, the support test for children of divorced or separated parents, or the special rule for kidnapped children. 2011 1040 See Multiple Support Agreement or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) , or Kidnapped child under Qualifying Relative. 2011 1040   Example. 2011 1040 You provided $4,000 toward your 16-year-old son's support for the year. 2011 1040 He has a part-time job and provided $6,000 to his own support. 2011 1040 He provided more than half of his own support for the year. 2011 1040 He is not your qualifying child. 2011 1040 Foster care payments and expenses. 2011 1040   Payments you receive for the support of a foster child from a child placement agency are considered support provided by the agency. 2011 1040 Similarly, payments you receive for the support of a foster child from a state or county are considered support provided by the state or county. 2011 1040   If you are not in the trade or business of providing foster care and your unreimbursed out-of-pocket expenses in caring for a foster child were mainly to benefit an organization qualified to receive deductible charitable contributions, the expenses are deductible as charitable contributions but are not considered support you provided. 2011 1040 For more information about the deduction for charitable contributions, see chapter 24. 2011 1040 If your unreimbursed expenses are not deductible as charitable contributions, they may qualify as support you provided. 2011 1040   If you are in the trade or business of providing foster care, your unreimbursed expenses are not considered support provided by you. 2011 1040 Example 1. 2011 1040 Lauren, a foster child, lived with Mr. 2011 1040 and Mrs. 2011 1040 Smith for the last 3 months of the year. 2011 1040 The Smiths cared for Lauren because they wanted to adopt her (although she had not been placed with them for adoption). 2011 1040 They did not care for her as a trade or business or to benefit the agency that placed her in their home. 2011 1040 The Smiths' unreimbursed expenses are not deductible as charitable contributions but are considered support they provided for Lauren. 2011 1040 Example 2. 2011 1040 You provided $3,000 toward your 10-year-old foster child's support for the year. 2011 1040 The state government provided $4,000, which is considered support provided by the state, not by the child. 2011 1040 See Support provided by the state (welfare, food stamps, housing, etc. 2011 1040 ) , later. 2011 1040 Your foster child did not provide more than half of her own support for the year. 2011 1040 Scholarships. 2011 1040   A scholarship received by a child who is a student is not taken into account in determining whether the child provided more than half of his or her own support. 2011 1040 Joint Return Test (To Be a Qualifying Child) To meet this test, the child cannot file a joint return for the year. 2011 1040 Exception. 2011 1040   An exception to the joint return test applies if your child and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid. 2011 1040 Example 1—child files joint return. 2011 1040 You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 2011 1040 He earned $25,000 for the year. 2011 1040 The couple files a joint return. 2011 1040 Because your daughter and her husband file a joint return, she is not your qualifying child. 2011 1040 Example 2—child files joint return only as a claim for refund of withheld tax. 2011 1040 Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 2011 1040 Neither is required to file a tax return. 2011 1040 They do not have a child. 2011 1040 Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. 2011 1040 The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. 2011 1040 Example 3—child files joint return to claim American opportunity credit. 2011 1040 The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 2011 1040 He and his wife were not required to file a tax return. 2011 1040 However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 2011 1040 Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. 2011 1040 The exception to the joint return test does not apply, so your son is not your qualifying child. 2011 1040 Special Rule for Qualifying Child of More Than One Person If your qualifying child is not a qualifying child of anyone else, this special rule does not apply to you and you do not need to read about it. 2011 1040 This is also true if your qualifying child is not a qualifying child of anyone else except your spouse with whom you file a joint return. 2011 1040 If a child is treated as the qualifying child of the noncustodial parent under the rules for children of divorced or separated parents (or parents who live apart) described earlier, see Applying this special rule to divorced or separated parents (or parents who live apart), later. 2011 1040 Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. 2011 1040 Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). 2011 1040 The exemption for the child. 2011 1040 The child tax credit. 2011 1040 Head of household filing status. 2011 1040 The credit for child and dependent care expenses. 2011 1040 The exclusion from income for dependent care benefits. 2011 1040 The earned income credit. 2011 1040 The other person cannot take any of these benefits based on this qualifying child. 2011 1040 In other words, you and the other person cannot agree to divide these benefits between you. 2011 1040 The other person cannot take any of these tax benefits for a child unless he or she has a different qualifying child. 2011 1040 Tiebreaker rules. 2011 1040   To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker rules apply. 2011 1040 If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. 2011 1040 If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents. 2011 1040 If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. 2011 1040 If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the year. 2011 1040 If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the year. 2011 1040 If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. 2011 1040 If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' combined AGI equally between the parents. 2011 1040 See Example 6 . 2011 1040   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. 2011 1040 Example 1—child lived with parent and grandparent. 2011 1040 You and your 3-year-old daughter Jane lived with your mother all year. 2011 1040 You are 25 years old, unmarried, and your AGI is $9,000. 2011 1040 Your mother's AGI is $15,000. 2011 1040 Jane's father did not live with you or your daughter. 2011 1040 You have not signed Form 8332 (or a similar statement) to release the child's exemption to the noncustodial parent. 2011 1040 Jane is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. 2011 1040 However, only one of you can claim her. 2011 1040 Jane is not a qualifying child of anyone else, including her father. 2011 1040 You agree to let your mother claim Jane. 2011 1040 This means your mother can claim Jane as a qualifying child for all of the six tax benefits listed earlier, if she qualifies (and if you do not claim Jane as a qualifying child for any of those tax benefits). 2011 1040 Example 2—parent has higher AGI than grandparent. 2011 1040 The facts are the same as in Example 1 except your AGI is $18,000. 2011 1040 Because your mother's AGI is not higher than yours, she cannot claim Jane. 2011 1040 Only you can claim Jane. 2011 1040 Example 3—two persons claim same child. 2011 1040 The facts are the same as in Example 1 except that you and your mother both claim Jane as a qualifying child. 2011 1040 In this case, you, as the child's parent, will be the only one allowed to claim Jane as a qualifying child. 2011 1040 The IRS will disallow your mother's claim to the six tax benefits listed earlier unless she has another qualifying child. 2011 1040 Example 4—qualifying children split between two persons. 2011 1040 The facts are the same as in Example 1 except you also have two other young children who are qualifying children of both you and your mother. 2011 1040 Only one of you can claim each child. 2011 1040 However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. 2011 1040 For example, if you claim one child, your mother can claim the other two. 2011 1040 Example 5—taxpayer who is a qualifying child. 2011 1040 The facts are the same as in Example 1 except you are only 18 years old and did not provide more than half of your own support for the year. 2011 1040 This means you are your mother's qualifying child. 2011 1040 If she can claim you as a dependent, then you cannot claim your daughter as a dependent because of the Dependent Taxpayer Test explained earlier. 2011 1040 Example 6—child lived with both parents and grandparent. 2011 1040 The facts are the same as in Example 1 except you are married to your daughter's father. 2011 1040 The two of you live together with your daughter and your mother, and have an AGI of $20,000 on a joint return. 2011 1040 If you and your husband do not claim your daughter as a qualifying child, your mother can claim her instead. 2011 1040 Even though the AGI on your joint return, $20,000, is more than your mother's AGI of $15,000, for this purpose each parent's AGI can be treated as $10,000, so your mother's $15,000 AGI is treated as higher than the highest AGI of any of the child's parents who can claim the child. 2011 1040 Example 7—separated parents. 2011 1040 You, your husband, and your 10-year-old son lived together until August 1, 2013, when your husband moved out of the household. 2011 1040 In August and September, your son lived with you. 2011 1040 For the rest of the year, your son lived with your husband, the boy's father. 2011 1040 Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship, age, support, and joint return tests for both of you. 2011 1040 At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the rule for children of divorced or separated parents (or parents who live apart) does not apply. 2011 1040 You and your husband will file separate returns. 2011 1040 Your husband agrees to let you treat your son as a qualifying child. 2011 1040 This means, if your husband does not claim your son as a qualifying child, you can claim your son as a qualifying child for the dependency exemption, child tax credit, and exclusion for dependent care benefits (if you qualify for each of those tax benefits). 2011 1040 However, you cannot claim head of household filing status because you and your husband did not live apart for the last 6 months of the year. 2011 1040 As a result, your filing status is married filing separately, so you cannot claim the earned income credit or the credit for child and dependent care expenses. 2011 1040 Example 8—separated parents claim same child. 2011 1040 The facts are the same as in Example 7 except that you and your husband both claim your son as a qualifying child. 2011 1040 In this case, only your husband will be allowed to treat your son as a qualifying child. 2011 1040 This is because, during 2013, the boy lived with him longer than with you. 2011 1040 If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. 2011 1040 If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the exclusion for dependent care benefits. 2011 1040 In addition, because you and your husband did not live apart for the last 6 months of the year, your husband cannot claim head of household filing status. 2011 1040 As a result, his filing status is married filing separately, so he cannot claim the earned income credit or the credit for child and dependent care expenses. 2011 1040 Example 9—unmarried parents. 2011 1040 You, your 5-year-old son, and your son's father lived together all year. 2011 1040 You and your son's father are not married. 2011 1040 Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, support, and joint return tests for both you and his father. 2011 1040 Your AGI is $12,000 and your son's father's AGI is $14,000. 2011 1040 Your son's father agrees to let you claim the child as a qualifying child. 2011 1040 This means you can claim him as a qualifying child for the dependency exemption, child tax credit, head of household filing status, credit for child and dependent care expenses, exclusion for dependent care benefits, and the earned income credit, if you qualify for each of those tax benefits (and if your son's father does not, in fact, claim your son as a qualifying child for any of those tax benefits). 2011 1040 Example 10—unmarried parents claim same child. 2011 1040 The facts are the same as in Example 9 except that you and your son's father both claim your son as a qualifying child. 2011 1040 In this case, only your son's father will be allowed to treat your son as a qualifying child. 2011 1040 This is because his AGI, $14,000, is more than your AGI, $12,000. 2011 1040 If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. 2011 1040 If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the earned income credit, head of household filing status, the credit for child and dependent care expenses, and the exclusion for dependent care benefits. 2011 1040 Example 11—child did not live with a parent. 2011 1040 You and your 7-year-old niece, your sister's child, lived with your mother all year. 2011 1040 You are 25 years old, and your AGI is $9,300. 2011 1040 Your mother's AGI is $15,000. 2011 1040 Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. 2011 1040 Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. 2011 1040 However, only your mother can treat her as a qualifying child. 2011 1040 This is because your mother's AGI, $15,000, is more than your AGI, $9,300. 2011 1040 Applying this special rule to divorced or separated parents (or parents who live apart). 2011 1040   If a child is treated as the qualifying child of the noncustodial parent under the rules described earlier for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. 2011 1040 However, the custodial parent, if eligible, or other eligible person can claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. 2011 1040 If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules just explained determine which person can treat the child as a qualifying child. 2011 1040 Example 1. 2011 1040 You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. 2011 1040 Your AGI is $10,000. 2011 1040 Your mother's AGI is $25,000. 2011 1040 Your son's father did not live with you or your son. 2011 1040 Under the rules explained earlier for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for him. 2011 1040 Because of this, you cannot claim an exemption or the child tax credit for your son. 2011 1040 However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the earned income credit. 2011 1040 You and your mother did not have any child care expenses or dependent care benefits, so neither of you can claim the credit for child and dependent care expenses or the exclusion for dependent care benefits. 2011 1040 But the boy is a qualifying child of both you and your mother for head of household filing status and the earned income credit because he meets the relationship, age, residency, support, and joint return tests for both you and your mother. 2011 1040 (Note: The support test does not apply for the earned income credit. 2011 1040 ) However, you agree to let your mother claim your son. 2011 1040 This means she can claim him for head of household filing status and the earned income credit if she qualifies for each and if you do not claim him as a qualifying child for the earned income credit. 2011 1040 (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the home. 2011 1040 ) Example 2. 2011 1040 The facts are the same as in Example 1 except your AGI is $25,000 and your mother's AGI is $21,000. 2011 1040 Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. 2011 1040 Example 3. 2011 1040 The facts are the same as in Example 1 except you and your mother both claim your son as a qualifying child for the earned income credit. 2011 1040 Your mother also claims him as a qualifying child for head of household filing status. 2011 1040 You, as the child's parent, will be the only one allowed to claim your son as a qualifying child for the earned income credit. 2011 1040 The IRS will disallow your mother's claim to the earned income credit and head of household filing status unless she has another qualifying child. 2011 1040 Qualifying Relative Four tests must be met for a person to be your qualifying relative. 2011 1040 The four tests are: Not a qualifying child test, Member of household or relationship test, Gross income test, and Support test. 2011 1040 Age. 2011 1040   Unlike a qualifying child, a qualifying relative can be any age. 2011 1040 There is no age test for a qualifying relative. 2011 1040 Kidnapped child. 2011 1040   You may be able to treat a child as your qualifying relative even if the child has been kidnapped. 2011 1040 See Publication 501 for details. 2011 1040 Not a Qualifying Child Test A child is not your qualifying relative if the child is your qualifying child or the qualifying child of any other taxpayer. 2011 1040 Example 1. 2011 1040 Your 22-year-old daughter, who is a student, lives with you and meets all the tests to be your qualifying child. 2011 1040 She is not your qualifying relative. 2011 1040 Example 2. 2011 1040 Your 2-year-old son lives with your parents and meets all the tests to be their qualifying child. 2011 1040 He is not your qualifying relative. 2011 1040 Example 3. 2011 1040 Your son lives with you but is not your qualifying child because he is 30 years old and does not meet the age test. 2011 1040 He may be your qualifying relative if the gross income test and the support test are met. 2011 1040 Example 4. 2011 1040 Your 13-year-old grandson lived with his mother for 3 months, with his uncle for 4 months, and with you for 5 months during the year. 2011 1040 He is not your qualifying child because he does not meet the residency test. 2011 1040 He may be your qualifying relative if the gross income test and the support test are met. 2011 1040 Child of person not required to file a return. 2011 1040   A child is not the qualifying child of any other taxpayer and so may qualify as your qualifying relative if the child's parent (or other person for whom the child is defined as a qualifying child) is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. 2011 1040 Example 1—return not required. 2011 1040 You support an unrelated friend and her 3-year-old child, who lived with you all year in your home. 2011 1040 Your friend has no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. 2011 1040 Both your friend and her child are your qualifying relatives if the support test is met. 2011 1040 Example 2—return filed to claim refund. 2011 1040 The facts are the same as in Example 1 except your friend had wages of $1,500 during the year and had income tax withheld from her wages. 2011 1040 She files a return only to get a refund of the income tax withheld and does not claim the earned income credit or any other tax credits or deductions. 2011 1040 Both your friend and her child are your qualifying relatives if the support test is met. 2011 1040 Example 3—earned income credit claimed. 2011 1040 The facts are the same as in Example 2 except your friend had wages of $8,000 during the year and claimed the earned income credit on her return. 2011 1040 Your friend's child is the qualifying child of another taxpayer (your friend), so you cannot claim your friend's child as your qualifying relative. 2011 1040 Child in Canada or Mexico. 2011 1040   You may be able to claim your child as a dependent even if the child lives in Canada or Mexico. 2011 1040 If the child does not live with you, the child does not meet the residency test to be your qualifying child. 2011 1040 However, the child may still be your qualifying relative. 2011 1040 If the persons the child does live with are not U. 2011 1040 S. 2011 1040 citizens and have no U. 2011 1040 S. 2011 1040 gross income, those persons are not “taxpayers,” so the child is not the qualifying child of any other taxpayer. 2011 1040 If the child is not the qualifying child of any other taxpayer, the child is your qualifying relative as long as the gross income test and the support test are met. 2011 1040   You cannot claim as a dependent a child who lives in a foreign country other than Canada or Mexico, unless the child is a U. 2011 1040 S. 2011 1040 citizen, U. 2011 1040 S. 2011 1040 resident alien, or U. 2011 1040 S. 2011 1040 national. 2011 1040 There is an exception for certain adopted children who lived with you all year. 2011 1040 See Citizen or Resident Test , earlier. 2011 1040 Example. 2011 1040 You provide all the support of your children, ages 6, 8, and 12, who live in Mexico with your mother and have no income. 2011 1040 You are single and live in the United States. 2011 1040 Your mother is not a U. 2011 1040 S. 2011 1040 citizen and has no U. 2011 1040 S. 2011 1040 income, so she is not a “taxpayer. 2011 1040 ” Your children are not your qualifying children because they do not meet the residency test. 2011 1040 But since they are not the qualifying children of any other taxpayer, they are your qualifying relatives and you can claim them as dependents. 2011 1040 You may also be able to claim your mother as a dependent if the gross income and support tests are met. 2011 1040 Member of Household or Relationship Test To meet this test, a person must either: Live with you all year as a member of your household, or Be related to you in one of the ways listed under Relatives who do not have to live with you . 2011 1040 If at any time during the year the person was your spouse, that person cannot be your qualifying relative. 2011 1040 However, see Personal Exemptions , earlier. 2011 1040 Relatives who do not have to live with you. 2011 1040   A person related to you in any of the following ways does not have to live with you all year as a member of your household to meet this test. 2011 1040 Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). 2011 1040 (A legally adopted child is considered your child. 2011 1040 ) Your brother, sister, half brother, half sister, stepbrother, or stepsister. 2011 1040 Your father, mother, grandparent, or other direct ancestor, but not foster parent. 2011 1040 Your stepfather or stepmother. 2011 1040 A son or daughter of your brother or sister. 2011 1040 A son or daughter of your half brother or half sister. 2011 1040 A brother or sister of your father or mother. 2011 1040 Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. 2011 1040 Any of these relationships that were established by marriage are not ended by death or divorce. 2011 1040 Example. 2011 1040 You and your wife began supporting your wife's father, a widower, in 2006. 2011 1040 Your wife died in 2012. 2011 1040 Despite your wife's death, your father-in-law continues to meet this test, even if he does not live with you. 2011 1040 You can claim him as a dependent if all other tests are met, including the gross income test and support test. 2011 1040 Foster child. 2011 1040   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. 2011 1040 Joint return. 2011 1040   If you file a joint return, the person can be related to either you or your spouse. 2011 1040 Also, the person does not need to be related to the spouse who provides support. 2011 1040   For example, your spouse's uncle who receives more than half of his support from you may be your qualifying relative, even though he does not live with you. 2011 1040 However, if you and your spouse file separate returns, your spouse's uncle can be your qualifying relative only if he lives with you all year as a member of your household. 2011 1040 Temporary absences. 2011 1040   A person is considered to live with you as a member of your household during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. 2011 1040   If the person is placed in a nursing home for an indefinite period of time to receive constant medical care, the absence may be considered temporary. 2011 1040 Death or birth. 2011 1040   A person who died during the year, but lived with you as a member of your household until death, will meet this test. 2011 1040 The same is true for a child who was born during the year and lived with you as a member of your household for the rest of the year. 2011 1040 The test is also met if a child lived with you as a member of your household except for any required hospital stay following birth. 2011 1040   If your dependent died during the year and you otherwise qualify to claim an exemption for the dependent, you can still claim the exemption. 2011 1040 Example. 2011 1040 Your dependent mother died on January 15. 2011 1040 She met the tests to be your qualifying relative. 2011 1040 The other tests to claim an exemption for a dependent were also met. 2011 1040 You can claim an exemption for her on your return. 2011 1040 Local law violated. 2011 1040   A person does not meet this test if at any time during the year the relationship between you and that person violates local law. 2011 1040 Example. 2011 1040 Your girlfriend lived with you as a member of your household all year. 2011 1040 However, your relationship with her violated the laws of the state where you live, because she was married to someone else. 2011 1040 Therefore, she does not meet this test and you cannot claim her as a dependent. 2011 1040 Adopted child. 2011 1040   An adopted child is always treated as your own child. 2011 1040 The term “adopted child” includes a child who was lawfully placed with you for legal adoption. 2011 1040 Cousin. 2011 1040   Your cousin meets this test only if he or she lives with you all year as a member of your household. 2011 1040 A cousin is a descendant of a brother or sister of your father or mother. 2011 1040 Gross Income Test To meet this test, a person's gross income for the year must be less than $3,900. 2011 1040 Gross income defined. 2011 1040   Gross income is all income in the form of money, property, and services that is not exempt from tax. 2011 1040   In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business. 2011 1040   Gross receipts from rental property are gross income. 2011 1040 Do not deduct taxes, repairs, or other expenses, to determine the gross income from rental property. 2011 1040   Gross income includes a partner's share of the gross (not a share of the net) partnership income. 2011 1040    Gross income also includes all taxable unemployment compensation and certain scholarship and fellowship grants. 2011 1040 Scholarships received by degree candidates and used for tuition, fees, supplies, books, and equipment required for particular courses generally are not included in gross income. 2011 1040 For more information about scholarships, see chapter 12. 2011 1040   Tax-exempt income, such as certain social security benefits, is not included in gross income. 2011 1040 Disabled dependent working at sheltered workshop. 2011 1040   For purposes of the gross income test, the gross income of an individual who is permanently and totally disabled at any time during the year does not include income for services the individual performs at a sheltered workshop. 2011 1040 The availability of medical care at the workshop must be the main reason for the individual's presence there. 2011 1040 Also, the income must come solely from activities at the workshop that are incident to this medical care. 2011 1040   A “sheltered workshop” is a school that: Provides special instruction or training designed to alleviate the disability of the individual, and Is operated by certain tax-exempt organizations, or by a state, a U. 2011 1040 S. 2011 1040 possession, a political subdivision of a state or possession, the United States, or the District of Columbia. 2011 1040 “Permanently and totally disabled” has the same meaning here as under Qualifying Child, earlier. 2011 1040 Support Test (To Be a Qualifying Relative) To meet this test, you generally must provide more than half of a person's total support during the calendar year. 2011 1040 However, if two or more persons provide support, but no one person provides more than half of a person's total support, see Multiple Support Agreement , later. 2011 1040 How to determine if support test is met. 2011 1040   You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support with the entire amount of support that person received from all sources. 2011 1040 This includes support the person provided from his or her own funds. 2011 1040   You may find Worksheet 3-1 helpful in figuring whether you provided more than half of a person's support. 2011 1040 Person's own funds not used for support. 2011 1040   A person's own funds are not support unless they are actually spent for support. 2011 1040 Example. 2011 1040 Your mother received $2,400 in social security benefits and $300 in interest. 2011 1040 She paid $2,000 for lodging and $400 for recreation. 2011 1040 She put $300 in a savings account. 2011 1040 Even though your mother received a total of $2,700 ($2,400 + $300), she spent only $2,400 ($2,000 + $400) for her own support. 2011 1040 If you spent more than $2,400 for her support and no other support was received, you have provided more than half of her support. 2011 1040 Child's wages used for own support. 2011 1040   You cannot include in your contribution to your child's support any support paid for by the child with the child's own wages, even if you paid the wages. 2011 1040 Year support is provided. 2011 1040   The year you provide the support is the year you pay for it, even if you do so with borrowed money that you repay in a later year. 2011 1040   If you use a fiscal year to report your income, you must provide more than half of the dependent's support for the calendar year in which your fiscal year begins. 2011 1040 Armed Forces dependency allotments. 2011 1040   The part of the allotment contributed by the government and the part taken out of your military pay are both considered provided by you in figuring whether you provide more than half of the support. 2011 1040 If your allotment is used to support persons other than those you name, you can take the exemptions for them if they otherwise qualify. 2011 1040 Example. 2011 1040 You are in the Armed Forces. 2011 1040 You authorize an allotment for your widowed mother that she uses to support herself and her sister. 2011 1040 If the allotment provides more than half of each person's support, you can take an exemption for each of them, if they otherwise qualify, even though you authorize the allotment only for your mother. 2011 1040 Tax-exempt military quarters allowances. 2011 1040   These allowances are treated the same way as dependency allotments in figuring support. 2011 1040 The allotment of pay and the tax-exempt basic allowance for quarters are both considered as provided by you for support. 2011 1040 Tax-exempt income. 2011 1040   In figuring a person's total support, include tax-exempt income, savings, and borrowed amounts used to support that person. 2011 1040 Tax-exempt income includes certain social security benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments, nontaxable pensions, and tax-exempt interest. 2011 1040 Example 1. 2011 1040 You provide $4,000 toward your mother's support during the year. 2011 1040 She has earned income of $600, nontaxable social security benefits of $4,800, and tax-exempt interest of $200. 2011 1040 She uses all these for her support. 2011 1040 You cannot claim an exemption for your mother because the $4,000 you provide is not more than half of her total support of $9,600 ($4,000 + $600 + $4,800 + $200). 2011 1040 Example 2. 2011 1040 Your niece takes out a student loan of $2,500 a
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Contact My Local Office in New Mexico

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Albuquerque  5338 Montgomery Blvd. N.E.
Albuquerque, NM 87109 

Monday-Friday - 8:30 a.m. - 4:30 p.m.

 

Services Provided

(505) 837-5631 
Farmington  800 E. 30th St.
Farmington, NM 87401 

Wednesday & Thursday - 8:30 a.m.- 4:30 p.m.; Friday - 8:30 a.m.-11:30 a.m. 
(Closed for lunch 11:30 a.m. - 12:30 p.m.)
 

**This office will be open 2/12-2/14, 2/26-2/28, 3/12-3/14, 3/26-3/28, 4/09-4/11, 4/23-4/25, 5/07-5/09 and 5/21-5/23. Closed all other days/times.**


Services Provided

(505) 327-7906 
Las Cruces  505 S. Main, Ste. 149
Las Cruces, NM 88001 

Monday-Friday - 8:30 a.m. - 4:30 p.m.
 

Services Provided

(575) 526-0161 
Roswell  500 N. Richardson
Roswell, NM 88201 

This Office is Temporarily Closed

 

(575) 624-9442 
Roswell/remote Taxpayer Assistance
available at New
Mexico Legal Aid
200 E. 4th Street
Suite 200
Roswell, NM 88202

Monday-Friday - 8:30 a.m. - 3:00 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

Virtual Services Provided

(575) 624-9442
Santa Fe  2945 Rodeo Park Dr. East
Santa Fe, NM  87505 

Monday-Friday - 8:30 a.m. - 4:30 p.m. 
(Closed for lunch 11:30 a.m.- 12:30 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(505) 424-5961

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If  face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (505) 837-5505 in Albuquerque or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS.

For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
5338 Montgomery Blvd., NE
MS 4040ALB
Albuquerque, NM 87109

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The 2011 1040

2011 1040 19. 2011 1040   Education- Related Adjustments Table of Contents Introduction Useful Items - You may want to see: Student Loan Interest DeductionStudent Loan Interest Defined Can You Claim the Deduction How Much Can You Deduct How Do You Figure the Deduction Tuition and Fees DeductionCan You Claim the Deduction What Expenses Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses How Much Can You Deduct Educator Expenses Introduction This chapter discusses the education-related adjustment you can deduct in figuring your adjusted gross income. 2011 1040 This chapter covers the student loan interest deduction, tuition and fees deduction, and the deduction for educator expenses. 2011 1040 Useful Items - You may want to see: Publication 970 Tax Benefits for Education Student Loan Interest Deduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. 2011 1040 However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. 2011 1040 For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. 2011 1040 This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. 2011 1040 Table 19-1 summarizes the features of the student loan interest deduction. 2011 1040 Table 19-1. 2011 1040 Student Loan Interest Deduction at a Glance Do not rely on this table alone. 2011 1040 Refer to the text for more details. 2011 1040 Feature Description Maximum benefit You can reduce your income subject to tax by up to $2,500. 2011 1040 Loan qualifications Your student loan: •  must have been taken out solely to pay qualified education expenses, and   • cannot be from a related person or made under a qualified employer plan. 2011 1040 Student qualifications The student must be: • you, your spouse, or your dependent, and   • enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. 2011 1040 Time limit on deduction You can deduct interest paid during the remaining period of your student loan. 2011 1040 Phaseout The amount of your deduction depends on your income level. 2011 1040 Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. 2011 1040 It includes both required and voluntary interest payments. 2011 1040 Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent (defined in chapter 3) when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period when the student is an eligible student. 2011 1040 Loans from the following sources are not qualified student loans. 2011 1040 A related person. 2011 1040 A qualified employer plan. 2011 1040 Exceptions. 2011 1040   For purposes of the student loan interest deduction, the following are exceptions to the general rules for dependents. 2011 1040 An individual can be your dependent even if you are the dependent of another taxpayer. 2011 1040 An individual can be your dependent even if the individual files a joint return with a spouse. 2011 1040 An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). 2011 1040    Reasonable period of time. 2011 1040   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. 2011 1040   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. 2011 1040 The expenses relate to a specific academic period. 2011 1040 The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. 2011 1040   If neither of the above situations applies, the reasonable period of time is determined based on all the relevant facts and circumstances. 2011 1040 Academic period. 2011 1040   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. 2011 1040 In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. 2011 1040 Eligible student. 2011 1040   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. 2011 1040 Enrolled at least half-time. 2011 1040   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. 2011 1040   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. 2011 1040 However, the standard may not be lower than any of those established by the U. 2011 1040 S. 2011 1040 Department of Education under the Higher Education Act of 1965. 2011 1040 Related person. 2011 1040   You cannot deduct interest on a loan you get from a related person. 2011 1040 Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. 2011 1040 ), Your lineal descendants (children, grandchildren, etc. 2011 1040 ), and Certain corporations, partnerships, trusts, and exempt organizations. 2011 1040 Qualified employer plan. 2011 1040   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. 2011 1040 Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. 2011 1040 They include amounts paid for the following items. 2011 1040 Tuition and fees. 2011 1040 Room and board. 2011 1040 Books, supplies, and equipment. 2011 1040 Other necessary expenses (such as transportation). 2011 1040 The cost of room and board qualifies only to the extent that it is not more than: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or If greater, the actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. 2011 1040 Eligible educational institution. 2011 1040   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. 2011 1040 S. 2011 1040 Department of Education. 2011 1040 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2011 1040   Certain educational institutions located outside the United States also participate in the U. 2011 1040 S. 2011 1040 Department of Education's Federal Student Aid (FSA) programs. 2011 1040   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. 2011 1040   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. 2011 1040 The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. 2011 1040    The educational institution should be able to tell you if it is an eligible educational institution. 2011 1040 Adjustments to qualified education expenses. 2011 1040   You must reduce your qualified education expenses by certain tax-free items (such as the tax-free part of scholarships and fellowships). 2011 1040 See chapter 4 of Publication 970 for details. 2011 1040 Include as Interest In addition to simple interest on the loan, certain loan origination fees, capitalized interest, interest on revolving lines of credit, and interest on refinanced student loans can be student loan interest if all other requirements are met. 2011 1040 Loan origination fee. 2011 1040   In general, this is a one-time fee charged by the lender when a loan is made. 2011 1040 To be deductible as interest, the fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. 2011 1040 A loan origination fee treated as interest accrues over the life of the loan. 2011 1040 Capitalized interest. 2011 1040    This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. 2011 1040 Interest on revolving lines of credit. 2011 1040   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. 2011 1040 See Qualified Education Expenses , earlier. 2011 1040 Interest on refinanced student loans. 2011 1040   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. 2011 1040 If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. 2011 1040 Voluntary interest payments. 2011 1040   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. 2011 1040 Do Not Include as Interest You cannot claim a student loan interest deduction for any of the following items. 2011 1040 Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. 2011 1040 Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. 2011 1040 Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. 2011 1040 For more information, see Student Loan Repayment Assistance in chapter 5 of Publication 970. 2011 1040 Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. 2011 1040 Your filing status is any filing status except married filing separately. 2011 1040 No one else is claiming an exemption for you on his or her tax return. 2011 1040 You are legally obligated to pay interest on a qualified student loan. 2011 1040 You paid interest on a qualified student loan. 2011 1040 Interest paid by others. 2011 1040   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. 2011 1040 See chapter 4 of Publication 970 for more information. 2011 1040 No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, home mortgage interest). 2011 1040 How Much Can You Deduct Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. 2011 1040 However, the amount determined above is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). 2011 1040 You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). 2011 1040 For details on figuring your MAGI, see chapter 4 of Publication 970. 2011 1040 How Do You Figure the Deduction Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the Form 1040 or Form 1040A instructions. 2011 1040 However, if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1 in chapter 4 of Publication 970. 2011 1040 To help you figure your student loan interest deduction, you should receive Form 1098-E, Student Loan Interest Statement. 2011 1040 Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. 2011 1040 For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. 2011 1040 Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. 2011 1040 However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. 2011 1040 For information on allocating payments between interest and principal, see chapter 4 of Publication 970. 2011 1040 To claim the deduction, enter the allowable amount on Form 1040, line 33, or Form 1040A, line 18. 2011 1040 Tuition and Fees Deduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). 2011 1040 You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. 2011 1040 The qualified expenses must be for higher education, as explained later under What Expenses Qualify . 2011 1040 The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. 2011 1040 Table 19-2 summarizes the features of the tuition and fees deduction. 2011 1040 You may be able to take a credit for your education expenses instead of a deduction. 2011 1040 You can choose the one that will give you the lower tax. 2011 1040 See chapter 35, Education Credits, for details about the credits. 2011 1040 Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. 2011 1040 Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. 2011 1040 You paid qualified education expenses of higher education in 2013 for academic periods beginning in 2013 and those beginning in the first three months of 2014. 2011 1040 You paid the education expenses for an eligible student. 2011 1040 The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption (defined in chapter 3) on your tax return. 2011 1040 Qualified education expenses are defined under What Expenses Qualify . 2011 1040 Eligible students are defined later under Who Is an Eligible Student . 2011 1040 Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. 2011 1040 Your filing status is married filing separately. 2011 1040 Another person can claim an exemption for you as a dependent on his or her tax return. 2011 1040 You cannot take the deduction even if the other person does not actually claim that exemption. 2011 1040 Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). 2011 1040 You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. 2011 1040 More information on nonresident aliens can be found in Publication 519, U. 2011 1040 S. 2011 1040 Tax Guide for Aliens. 2011 1040 You or anyone else claims an American opportunity or lifetime learning credit in 2013 with respect to expenses of the student for whom the qualified education expenses were paid. 2011 1040 However, a state tax credit will not disqualify you from claiming a tuition and fees deduction. 2011 1040 Table 19-2. 2011 1040 Tuition and Fees Deduction at a Glance Do not rely on this table alone. 2011 1040 Refer to the text for more details. 2011 1040 Question   Answer What is the maximum benefit?   You can reduce your income subject to tax by up to $4,000. 2011 1040 Where is the deduction taken?   As an adjustment to income on Form 1040, line 34, or Form 1040A, line 19. 2011 1040 For whom must the expenses be paid?   A student enrolled in an eligible educational institution who is either: you, your spouse, or your dependent for whom you claim an exemption. 2011 1040 What tuition and fees are deductible?   Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. 2011 1040 What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. 2011 1040 Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period (defined earlier under Student Loan Interest Deduction ) beginning in 2013 or in the first 3 months of 2014. 2011 1040 Payments with borrowed funds. 2011 1040   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. 2011 1040 Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. 2011 1040 Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. 2011 1040 Student withdraws from class(es). 2011 1040   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. 2011 1040 Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. 2011 1040 Eligible educational institution. 2011 1040   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. 2011 1040 S. 2011 1040 Department of Education. 2011 1040 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2011 1040 The educational institution should be able to tell you if it is an eligible educational institution. 2011 1040   Certain educational institutions located outside the United States also participate in the U. 2011 1040 S. 2011 1040 Department of Education's Federal Student Aid (FSA) programs. 2011 1040 Academic period. 2011 1040    An academic period is any quarter, semester, trimester, or any other period of study as reasonably determined by an eligible educational institution. 2011 1040 If an eligible educational institution uses credit hours and does not have academic terms, each payment period may be treated as an academic period. 2011 1040 Related expenses. 2011 1040   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses for the tuition and fees deduction only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. 2011 1040 Prepaid expenses. 2011 1040   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring the tuition and fees deduction. 2011 1040 See Academic period, earlier. 2011 1040 For example, if you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring the tuition and fees deduction for 2013 only if you meet all the other requirements. 2011 1040    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 tuition and fees deduction. 2011 1040 No Double Benefit Allowed You cannot do any of the following. 2011 1040 Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. 2011 1040 Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. 2011 1040 Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). 2011 1040 For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. 2011 1040 See Figuring the Taxable Portion of a Distribution in chapter 7 (Coverdell ESA) and chapter 8 (QTP) of Publication 970. 2011 1040 Deduct qualified education expenses that have been paid with tax-free interest on U. 2011 1040 S. 2011 1040 savings bonds (Form 8815). 2011 1040 See Figuring the Tax-Free Amount in chapter 10 of Publication 970. 2011 1040 Deduct qualified education expenses that have been paid with tax-free educational assistance such as a scholarship, grant, or employer-provided educational assistance. 2011 1040 See Adjustments to qualified education expenses, later. 2011 1040 Adjustments to qualified education expenses. 2011 1040   For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. 2011 1040 The result is the amount of adjusted qualified education expenses for each student. 2011 1040 Tax-free educational assistance. 2011 1040   For tax-free educational assistance you received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance to that academic period. 2011 1040 See Academic period, earlier. 2011 1040   This includes: The tax-free part of scholarships and fellowships, including Pell grants (see chapter 1 of Publication 970), The tax-free part of any employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2011 1040 Generally, any scholarship or fellowship you receive is treated as tax-free educational assistance. 2011 1040 However, a scholarship or fellowship is not treated as tax-free educational assistance to the extent you include it in gross income (if you are required to file a tax return) for the year the scholarship or fellowship is received and either: The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. 2011 1040 970, chapter 1. 2011 1040 The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. 2011 1040 970, chapter 1. 2011 1040 You may be able to increase the combined value of your tuition and fees deduction and certain educational assistance if you include some or all of the educational assistance in income in the year it is received. 2011 1040 For details, see Adjustments to Qualified Education Expenses in chapter 6 of Pub. 2011 1040 970. 2011 1040 Some tax-free educational assistance received in 2013 may be treated as a refund of qualified education expenses paid in 2013. 2011 1040 This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). 2011 1040 If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed, later. 2011 1040 If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed, later. 2011 1040 Refunds. 2011 1040   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or may require you to include some or all of the refund in your gross income for the year the refund is received. 2011 1040 See chapter 6 of Pub. 2011 1040 970 for more information. 2011 1040 Some tax-free educational assistance received after 2013 may be treated as a refund. 2011 1040 See Tax-free educational assistance, earlier. 2011 1040 Refunds received in 2013. 2011 1040    For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses paid in 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. 2011 1040 Refunds received after 2013 but before your income tax return is filed. 2011 1040   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received before you file your 2013 income tax return, reduce the amount of qualified education expenses for 2013 by the amount of the refund. 2011 1040 Refunds received after 2013 and after your income tax return is filed. 2011 1040   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received after you file your 2013 income tax return, you may need to include some or all of the refund in your gross income for the year the refund is received. 2011 1040 See chapter 6 of Pub. 2011 1040 970 for more information. 2011 1040 Coordination with Coverdell education savings accounts and qualified tuition programs. 2011 1040    Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). 2011 1040 For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. 2011 1040 Amounts that do not reduce qualified education expenses. 2011 1040   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. 2011 1040   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. 2011 1040 The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses. 2011 1040 The use of the money is not restricted. 2011 1040 Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. 2011 1040 This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. 2011 1040 Sports, games, hobbies, and noncredit courses. 2011 1040   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. 2011 1040 However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. 2011 1040 Comprehensive or bundled fees. 2011 1040   Some eligible educational institutions combine all of their fees for an academic period into one amount. 2011 1040 If you do not receive, or do not have access to, an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. 2011 1040 The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T, Tuition Statement. 2011 1040 See How Do You Figure the Deduction , later, for more information about Form 1098-T. 2011 1040 Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (defined earlier). 2011 1040 Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. 2011 1040 Table 19-3 summarizes who can claim the deduction. 2011 1040 How Much Can You Deduct The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. 2011 1040 For details on figuring your MAGI, see chapter 6 of Publication 970. 2011 1040 How Do You Figure the Deduction Figure the deduction using Form 8917. 2011 1040 To help you figure your tuition and fees deduction, you should receive Form 1098-T, Tuition Statement. 2011 1040 Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. 2011 1040 To claim the deduction, enter the allowable amount on Form 1040, line 34, or Form 1040A, line 19, and attach your completed Form 8917. 2011 1040 Table 19-3. 2011 1040 Who Can Claim a Dependent's Expenses Do not rely on this table alone. 2011 1040 See Who Can Claim a Dependent's Expenses in chapter 6 of Publication 970. 2011 1040 IF your dependent is an eligible student and you. 2011 1040 . 2011 1040 . 2011 1040 AND. 2011 1040 . 2011 1040 . 2011 1040 THEN. 2011 1040 . 2011 1040 . 2011 1040 claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. 2011 1040 Your dependent cannot take a deduction. 2011 1040 claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 2011 1040 do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. 2011 1040 do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 2011 1040 Educator Expenses If you were an eligible educator in 2013, you can deduct on Form 1040, line 23, or Form 1040A, line 16, up to $250 of qualified expenses you paid in 2013. 2011 1040 If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. 2011 1040 However, neither spouse can deduct more than $250 of his or her qualified expenses on Form 1040, line 23, or Form 1040A, line 16. 2011 1040 You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A (Form 1040), line 21. 2011 1040 Eligible educator. 2011 1040   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year. 2011 1040 Qualified expenses. 2011 1040   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. 2011 1040 An ordinary expense is one that is common and accepted in your educational field. 2011 1040 A necessary expense is one that is helpful and appropriate for your profession as an educator. 2011 1040 An expense does not have to be required to be considered necessary. 2011 1040   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. 2011 1040   You must reduce your qualified expenses by the following amounts. 2011 1040 Excludable U. 2011 1040 S. 2011 1040 series EE and I savings bond interest from Form 8815. 2011 1040 See Figuring the Tax-Free Amount in chapter 10 of Publication 970. 2011 1040 Nontaxable qualified tuition program earnings or distributions. 2011 1040 See Figuring the Taxable Portion of a Distribution in chapter 8 of Publication 970. 2011 1040 Nontaxable distribution of earnings from a Coverdell education savings account. 2011 1040 See Figuring the Taxable Portion of a Distribution in chapter 7 of Publication 970. 2011 1040 Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2. 2011 1040 Prev  Up  Next   Home   More Online Publications