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2011 Income Tax Brackets

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2011 Income Tax Brackets

2011 income tax brackets Publication 1542 - Introductory Material Table of Contents What's New IntroductionOrdering forms and publications. 2011 income tax brackets Tax questions. 2011 income tax brackets What's New Future developments. 2011 income tax brackets  The IRS has created a page on IRS. 2011 income tax brackets gov for information about Publication 1542, at www. 2011 income tax brackets irs. 2011 income tax brackets gov/pub1542. 2011 income tax brackets Information about any future developments affecting Publication 1542 (such as legislation enacted after we release it) will be posted on that page. 2011 income tax brackets Introduction This publication is for employers who pay a per diem allowance to employees for business travel away from home within the continental United States (CONUS) (the 48 contiguous states), on or after October 1, 2010, and before January 1, 2011. 2011 income tax brackets It gives the maximum per diem rate you can use without treating part of the per diem allowance as wages for tax purposes. 2011 income tax brackets For a detailed discussion on the tax treatment of a per diem allowance, see chapter 11 of Publication 535, Business Expenses, or Revenue Procedure 2011-47, 2011-42 I. 2011 income tax brackets R. 2011 income tax brackets B. 2011 income tax brackets 520, which can be found on the Internet at www. 2011 income tax brackets irs. 2011 income tax brackets gov/irb/2011-42_IRB/ar12. 2011 income tax brackets html. 2011 income tax brackets Per diem rates on the Internet. 2011 income tax brackets   You will find links to per diem rates at www. 2011 income tax brackets gsa. 2011 income tax brackets gov/perdiem, including links to: CONUS per diem rates; Per diem rates for areas outside the continental United States (OCONUS), such as Alaska, Hawaii, Puerto Rico, and U. 2011 income tax brackets S. 2011 income tax brackets possessions; and Foreign per diem rates. 2011 income tax brackets Publication 1542 revisions. 2011 income tax brackets   Publication 1542 is available only on the Internet at IRS. 2011 income tax brackets gov. 2011 income tax brackets Print copies can no longer be ordered. 2011 income tax brackets   During the year, as changes to the federal per diem rates (updates) are announced by the General Services Administration (GSA), we will incorporate the changes into Publication 1542. 2011 income tax brackets An article on IRS. 2011 income tax brackets gov will alert you to which locations have updated rates. 2011 income tax brackets To reach these articles, go to www. 2011 income tax brackets irs. 2011 income tax brackets gov/formspubs and click on “Changes to Current Tax Products,” under Important Changes. 2011 income tax brackets You will find the new rates in Table 4. 2011 income tax brackets   We will also incorporate mid-year changes to the high-low rates into Publication 1542. 2011 income tax brackets You will be alerted to these changes by a similar article on IRS. 2011 income tax brackets gov and can find the changes in Table 2 of the revised publication. 2011 income tax brackets   The annual changes, both federal per diem and high-low rates, will be incorporated into the publication as soon as possible after being announced by GSA and the IRS. 2011 income tax brackets The annual issue of the publication should be available each year in mid- to late-October. 2011 income tax brackets Comments and suggestions. 2011 income tax brackets   We welcome your comments about this publication and your suggestions for future editions. 2011 income tax brackets   You can write to us at the following address: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. 2011 income tax brackets NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2011 income tax brackets Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2011 income tax brackets   You can email us at taxforms@irs. 2011 income tax brackets gov. 2011 income tax brackets Please put “Publications Comment” on the subject line. 2011 income tax brackets You can also send us comments from www. 2011 income tax brackets irs. 2011 income tax brackets gov/formspubs/, select “Comment on Tax Forms and Publications” under “Information about. 2011 income tax brackets ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 2011 income tax brackets Ordering forms and publications. 2011 income tax brackets   Visit www. 2011 income tax brackets irs. 2011 income tax brackets gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. 2011 income tax brackets Internal Revenue Service 1201 N. 2011 income tax brackets Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 2011 income tax brackets   If you have a tax question, check the information available on IRS. 2011 income tax brackets gov or call 1-800-829-1040. 2011 income tax brackets We cannot answer tax questions sent to either of the above addresses. 2011 income tax brackets Prev  Up  Next   Home   More Online Publications
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The 2011 Income Tax Brackets

2011 income tax brackets 6. 2011 income tax brackets   Tuition and Fees Deduction Table of Contents IntroductionWhat is the tax benefit of the tuition and fees deduction. 2011 income tax brackets Can You Claim the DeductionWho Can Claim the Deduction Who Cannot Claim the Deduction What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses Figuring the DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Claiming the Deduction Illustrated Example Introduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). 2011 income tax brackets 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 income tax brackets The qualified expenses must be for higher education, as explained later under Qualified Education Expenses . 2011 income tax brackets What is the tax benefit of the tuition and fees deduction. 2011 income tax brackets   The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. 2011 income tax brackets   This deduction is taken as an adjustment to income. 2011 income tax brackets This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). 2011 income tax brackets This deduction may be beneficial to you if you do not qualify for the American opportunity or lifetime learning credits. 2011 income tax brackets You can choose the education benefit that will give you the lowest tax. 2011 income tax brackets You may want to compare the tuition and fees deduction to the education credits. 2011 income tax brackets See chapter 2, American Opportunity Credit and chapter 3, Lifetime Learning Credit for more information on the education credits. 2011 income tax brackets Table 6-1. 2011 income tax brackets Tuition and Fees Deduction at a Glance summarizes the features of the tuition and fees deduction. 2011 income tax brackets Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. 2011 income tax brackets Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. 2011 income tax brackets You pay qualified education expenses of higher education. 2011 income tax brackets You pay the education expenses for an eligible student. 2011 income tax brackets The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return. 2011 income tax brackets The term “qualified education expenses” is defined later under Qualified Education Expenses . 2011 income tax brackets “Eligible student” is defined later under Who Is an Eligible Student . 2011 income tax brackets For more information on claiming the deduction for a dependent, see Who Can Claim a Dependent's Expenses , later. 2011 income tax brackets Table 6-1. 2011 income tax brackets Tuition and Fees Deduction at a Glance Do not rely on this table alone. 2011 income tax brackets Refer to the text for complete details. 2011 income tax brackets Question Answer What is the maximum benefit? You can reduce your income subject to tax by up to $4,000. 2011 income tax brackets What is the limit on modified adjusted gross income (MAGI)? $160,000 if married filing a joint return; $80,000 if single, head of household, or qualifying widow(er). 2011 income tax brackets Where is the deduction taken? As an adjustment to income on  Form 1040 or Form 1040A. 2011 income tax brackets 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 income tax brackets 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 income tax brackets Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. 2011 income tax brackets Your filing status is married filing separately. 2011 income tax brackets Another person can claim an exemption for you as a dependent on his or her tax return. 2011 income tax brackets You cannot take the deduction even if the other person does not actually claim that exemption. 2011 income tax brackets Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). 2011 income tax brackets 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 income tax brackets More information on nonresident aliens can be found in Publication 519. 2011 income tax brackets 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 income tax brackets Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period beginning in 2013 or in the first 3 months of 2014. 2011 income tax brackets For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 deduction. 2011 income tax brackets Academic period. 2011 income tax brackets   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 income tax brackets 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 income tax brackets Paid with borrowed funds. 2011 income tax brackets   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. 2011 income tax brackets 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 income tax brackets Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. 2011 income tax brackets Student withdraws from class(es). 2011 income tax brackets   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. 2011 income tax brackets 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 income tax brackets Eligible educational institution. 2011 income tax brackets   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 income tax brackets S. 2011 income tax brackets Department of Education. 2011 income tax brackets It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2011 income tax brackets The educational institution should be able to tell you if it is an eligible educational institution. 2011 income tax brackets   Certain educational institutions located outside the United States also participate in the U. 2011 income tax brackets S. 2011 income tax brackets Department of Education's Federal Student Aid (FSA) programs. 2011 income tax brackets Related expenses. 2011 income tax brackets   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. 2011 income tax brackets Prepaid expenses. 2011 income tax brackets   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. 2011 income tax brackets See Academic period , earlier. 2011 income tax brackets For example, you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). 2011 income tax brackets You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). 2011 income tax brackets In the following examples, assume that each student is an eligible student and each college or university an eligible educational institution. 2011 income tax brackets Example 1. 2011 income tax brackets Jackson is a sophomore in University V's degree program in dentistry. 2011 income tax brackets This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. 2011 income tax brackets Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified education expense. 2011 income tax brackets Example 2. 2011 income tax brackets Donna and Charles, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. 2011 income tax brackets The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. 2011 income tax brackets Charles bought his books from a friend, so what he paid for them is not a qualified education expense. 2011 income tax brackets Donna bought hers at College W's bookstore. 2011 income tax brackets Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified education expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. 2011 income tax brackets Example 3. 2011 income tax brackets When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. 2011 income tax brackets This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and the student government. 2011 income tax brackets No portion of the fee covers personal expenses. 2011 income tax brackets Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. 2011 income tax brackets Therefore, it is a qualified expense. 2011 income tax brackets No Double Benefit Allowed You cannot do any of the following. 2011 income tax brackets Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. 2011 income tax brackets 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 income tax brackets 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 income tax brackets 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 income tax brackets See Coordination With Tuition and Fees Deduction in chapter 8, Qualified Tuition Program, later. 2011 income tax brackets Deduct qualified education expenses that have been paid with tax-free interest on U. 2011 income tax brackets S. 2011 income tax brackets savings bonds (Form 8815). 2011 income tax brackets See Figuring the Tax-Free Amount in chapter 10, Education Savings Bond Program, later. 2011 income tax brackets Deduct qualified education expenses that have been paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. 2011 income tax brackets See the following section on Adjustments to Qualified Education Expenses. 2011 income tax brackets Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. 2011 income tax brackets The result is the amount of adjusted qualified education expenses for each student. 2011 income tax brackets You must also reduce qualified education expenses by the other amounts referred to in No Double Benefit Allowed , earlier. 2011 income tax brackets Tax-free educational assistance. 2011 income tax brackets   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. 2011 income tax brackets See Academic period , earlier. 2011 income tax brackets   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. 2011 income tax brackets 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 income tax brackets   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 income tax brackets 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 income tax brackets   This tax-free education assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2011 income tax brackets Generally, any scholarship or fellowship is treated as tax free. 2011 income tax brackets However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. 2011 income tax brackets The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 2011 income tax brackets The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 2011 income tax brackets You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. 2011 income tax brackets For details, see Adjustments to Qualified Education Expenses in chapters 2 and 3. 2011 income tax brackets Refunds. 2011 income tax brackets   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. 2011 income tax brackets Some tax-free educational assistance received after 2013 may be treated as a refund. 2011 income tax brackets See Tax-free educational assistance , earlier. 2011 income tax brackets Refunds received in 2013. 2011 income tax brackets   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. 2011 income tax brackets Refunds received after 2013 but before your income tax return is filed. 2011 income tax brackets   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. 2011 income tax brackets Refunds received after 2013 and after your income tax return is filed. 2011 income tax brackets   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. 2011 income tax brackets See Credit recapture , later. 2011 income tax brackets Coordination with Coverdell education savings accounts and qualified tuition programs. 2011 income tax brackets   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 income tax brackets 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 income tax brackets Credit recapture. 2011 income tax brackets    If any tax-free educational assistance for the qualified education expenses paid in 2013 or any refund of your qualified education expenses paid in 2013 is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. 2011 income tax brackets You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing that amount by the amount of the refund or tax-free educational assistance. 2011 income tax brackets You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you had claimed the refigured credit(s). 2011 income tax brackets Include that amount as an additional tax for the year the refund or tax-free assistance was received. 2011 income tax brackets Example. 2011 income tax brackets   You paid $3,500 of qualified education expenses in December 2013, and your child began college in January 2014. 2011 income tax brackets You claimed $3,500 as the tuition and fees deduction on your 2013 income tax return. 2011 income tax brackets The reduction reduced your taxable income by $3,500. 2011 income tax brackets Also, you claimed no tax credits in 2013. 2011 income tax brackets Your child withdrew from two classes and you received a refund of $2,000 in 2014 after you filed your 2013 tax return. 2011 income tax brackets Refigure your 2013 tuition and fees deduction using $1,500 of qualified education expense instead of the $3,500. 2011 income tax brackets The refigured tuition and fees deduction is $1,500. 2011 income tax brackets Do not file an amended 2013 tax return to account for this adjustment. 2011 income tax brackets Instead, include the difference of $2,000 (but only to the extent this difference would have increased your 2013 tax) on the “Other income” line of your 2014 Form 1040. 2011 income tax brackets You cannot file Form 1040A for 2014. 2011 income tax brackets Amounts that do not reduce qualified education expenses. 2011 income tax brackets   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 income tax brackets   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 income tax brackets The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Restrictions. 2011 income tax brackets The use of the money is not restricted. 2011 income tax brackets Example 1. 2011 income tax brackets In 2013, Jackie paid $3,000 for tuition and $5,000 for room and board at University X. 2011 income tax brackets The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. 2011 income tax brackets To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. 2011 income tax brackets The terms of the scholarship state that it can be used to pay any of Jackie's college expenses. 2011 income tax brackets University X applies the $2,000 scholarship against Jackie's $8,000 total bill, and Jackie pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. 2011 income tax brackets Jackie does not report any portion of the scholarship as income on her tax return. 2011 income tax brackets In figuring the tuition and fees deduction, Jackie must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. 2011 income tax brackets The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. 2011 income tax brackets Jackie is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship) in 2013. 2011 income tax brackets Example 2. 2011 income tax brackets The facts are the same as in Example 1, except that Jackie reports her entire scholarship as income on her tax return. 2011 income tax brackets Because Jackie reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. 2011 income tax brackets Jackie is treated as having paid $3,000 in qualified education expenses. 2011 income tax brackets 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 income tax brackets This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. 2011 income tax brackets Sports, games, hobbies, and noncredit courses. 2011 income tax brackets   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 income tax brackets However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. 2011 income tax brackets Comprehensive or bundled fees. 2011 income tax brackets   Some eligible educational institutions combine all of their fees for an academic period into one amount. 2011 income tax brackets 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 income tax brackets 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. 2011 income tax brackets See Figuring the Deduction , later, for more information about Form 1098-T. 2011 income tax brackets Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). 2011 income tax brackets 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 income tax brackets For you to be able to deduct qualified education expenses for your dependent, you must claim an exemption for that individual. 2011 income tax brackets You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. 2011 income tax brackets IF your dependent is an eligible student and you. 2011 income tax brackets . 2011 income tax brackets . 2011 income tax brackets AND. 2011 income tax brackets . 2011 income tax brackets . 2011 income tax brackets THEN. 2011 income tax brackets . 2011 income tax brackets . 2011 income tax brackets 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 income tax brackets Your dependent cannot take a deduction. 2011 income tax brackets claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 2011 income tax brackets do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. 2011 income tax brackets do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 2011 income tax brackets Expenses paid by dependent. 2011 income tax brackets   If your dependent pays qualified education expenses, no one can take a tuition and fees deduction for those expenses. 2011 income tax brackets Neither you nor your dependent can deduct the expenses. 2011 income tax brackets For purposes of the tuition and fees deduction, you are not treated as paying any expenses actually paid by a dependent for whom you or anyone other than the dependent can claim an exemption. 2011 income tax brackets This rule applies even if you do not claim an exemption for your dependent on your tax return. 2011 income tax brackets Expenses paid by you. 2011 income tax brackets   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring your tuition and fees deduction. 2011 income tax brackets Expenses paid under divorce decree. 2011 income tax brackets   Qualified education expenses paid directly to an eligible educational institution for a student under a court-approved divorce decree are treated as paid by the student. 2011 income tax brackets Only the student would be eligible to take a tuition and fees deduction for that payment, and then only if no one else could claim an exemption for the student. 2011 income tax brackets Expenses paid by others. 2011 income tax brackets   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. 2011 income tax brackets In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. 2011 income tax brackets If you claim, or can claim, an exemption on your tax return for the student, you are not considered to have paid the expenses and you cannot deduct them. 2011 income tax brackets If the student is not a dependent, only the student can deduct payments made directly to the institution for his or her expenses. 2011 income tax brackets If the student is your dependent, no one can deduct the payments. 2011 income tax brackets Example. 2011 income tax brackets In 2013, Ms. 2011 income tax brackets Baker makes a payment directly to an eligible educational institution for her grandson Dan's qualified education expenses. 2011 income tax brackets For purposes of deducting tuition and fees, Dan is treated as receiving the money from his grandmother and, in turn, paying his own qualified education expenses. 2011 income tax brackets If an exemption cannot be claimed for Dan on anyone else's tax return, only Dan can claim a tuition and fees deduction for his grandmother's payment. 2011 income tax brackets If someone else can claim an exemption for Dan, no one will be allowed a deduction for Ms. 2011 income tax brackets Baker's payment. 2011 income tax brackets Tuition reduction. 2011 income tax brackets   When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. 2011 income tax brackets If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. 2011 income tax brackets For more information on tuition reductions, see Qualified Tuition Reduction , in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 2011 income tax brackets Figuring the Deduction The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. 2011 income tax brackets See Effect of the Amount of Your Income on the Amount of Your Deduction , later. 2011 income tax brackets Form 1098-T. 2011 income tax brackets   To help you figure your tuition and fees deduction, the student should receive Form 1098-T (see Appendix A for a completed example of Form 1098-T). 2011 income tax brackets 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 income tax brackets An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. 2011 income tax brackets However, the amount in boxes 1 and 2 of Form 1098-T might be different than what you paid. 2011 income tax brackets When figuring the deduction, use only the amounts you paid in 2013 for qualified education expenses. 2011 income tax brackets   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. 2011 income tax brackets    The eligible educational institution may ask for a completed Form W-9S or similar statement to obtain the student's name, address, and taxpayer identification number. 2011 income tax brackets Effect of the Amount of Your Income on the Amount of Your Deduction If your MAGI is not more than $65,000 ($130,000 if you are married filing jointly), your maximum tuition and fees deduction is $4,000. 2011 income tax brackets If your MAGI is larger than $65,000 ($130,000 if you are married filing jointly), but is not more than $80,000 ($160,000 if you are married filing jointly), your maximum deduction is $2,000. 2011 income tax brackets No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000 if you are married filing jointly). 2011 income tax brackets Modified adjusted gross income (MAGI). 2011 income tax brackets   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for tuition and fees. 2011 income tax brackets However, as discussed below, there may be other modifications. 2011 income tax brackets MAGI when using Form 1040A. 2011 income tax brackets   If you file Form 1040A, your MAGI is the AGI on line 22 of that form, figured without taking into account any amount on line 19 (tuition and fees deduction). 2011 income tax brackets MAGI when using Form 1040. 2011 income tax brackets   If you file Form 1040, your MAGI is the AGI on line 38 of that form, figured without taking into account any amount on line 34 (tuition and fees deduction) or line 35 (domestic production activities deduction), and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. 2011 income tax brackets   Table 6-2 shows how the amount of your MAGI can affect your tuition and fees deduction. 2011 income tax brackets   You can use Worksheet 6-1. 2011 income tax brackets MAGI for the Tuition and Fees Deduction , later, to figure your MAGI. 2011 income tax brackets Table 6-2. 2011 income tax brackets Effect of MAGI on Maximum Tuition and Fees Deduction IF your filing status is. 2011 income tax brackets . 2011 income tax brackets . 2011 income tax brackets AND your MAGI is. 2011 income tax brackets . 2011 income tax brackets . 2011 income tax brackets THEN your maximum tuition and fees deduction is. 2011 income tax brackets . 2011 income tax brackets . 2011 income tax brackets single,  head of household, or qualifying widow(er) not more than $65,000 $4,000. 2011 income tax brackets more than $65,000  but not more than $80,000 $2,000. 2011 income tax brackets more than $80,000 $0. 2011 income tax brackets married filing joint return not more than $130,000 $4,000. 2011 income tax brackets more than $130,000 but not more than $160,000 $2,000. 2011 income tax brackets more than $160,000 $0. 2011 income tax brackets Claiming the Deduction You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A. 2011 income tax brackets Enter the deduction on Form 1040, line 34, or Form 1040A, line 19. 2011 income tax brackets A filled-in Form 8917 is shown at the end of this chapter. 2011 income tax brackets Illustrated Example Tim Pfister, a single taxpayer, enrolled full-time at a local college to earn a degree in engineering. 2011 income tax brackets This is the first year of his postsecondary education. 2011 income tax brackets During 2013, he paid $3,600 for his qualified 2013 tuition expense. 2011 income tax brackets Both he and the college meet all of the requirements for the tuition and fees deduction. 2011 income tax brackets Tim's total income (Form 1040, line 22) and MAGI are $26,000. 2011 income tax brackets He figures his deduction of $3,600 as shown on Form 8917, later. 2011 income tax brackets Worksheet 6-1. 2011 income tax brackets MAGI for the Tuition and Fees Deduction Use this worksheet if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. 2011 income tax brackets Before using this worksheet, you must complete Form 1040, lines 7 through 33, and figure any amount to be entered on the dotted line next to line 36. 2011 income tax brackets 1. 2011 income tax brackets Enter the amount from Form 1040, line 22   1. 2011 income tax brackets         2. 2011 income tax brackets Enter the total from Form 1040, lines 23 through 33   2. 2011 income tax brackets               3. 2011 income tax brackets Enter the total of any amounts entered on the dotted line next to Form 1040, line 36   3. 2011 income tax brackets               4. 2011 income tax brackets Add lines 2 and 3   4. 2011 income tax brackets         5. 2011 income tax brackets Subtract line 4 from line 1   5. 2011 income tax brackets         6. 2011 income tax brackets Enter your foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   6. 2011 income tax brackets         7. 2011 income tax brackets Enter your foreign housing deduction (Form 2555, line 50)   7. 2011 income tax brackets         8. 2011 income tax brackets Enter the amount of income from Puerto Rico you are excluding   8. 2011 income tax brackets         9. 2011 income tax brackets Enter the amount of income from American Samoa you are  excluding (Form 4563, line 15)   9. 2011 income tax brackets         10. 2011 income tax brackets Add lines 5 through 9. 2011 income tax brackets This is your modified adjusted gross income   10. 2011 income tax brackets     Note. 2011 income tax brackets If the amount on line 10 is more than $80,000 ($160,000 if married filing jointly),  you cannot take the deduction for tuition and fees. 2011 income tax brackets       This image is too large to be displayed in the current screen. 2011 income tax brackets Please click the link to view the image. 2011 income tax brackets Form 8917 for Tim Pfister Prev  Up  Next   Home   More Online Publications