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Definition Amended Tax Return

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Definition Amended Tax Return

Definition amended tax return 6. Definition amended tax return   Dual-Status Tax Year Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Tax Year Income Subject to Tax Restrictions for Dual-Status Taxpayers Exemptions How To Figure TaxIncome Tax Credits and Payments Forms To File When and Where To File Introduction You have a dual-status tax year when you have been both a resident alien and a nonresident alien in the same year. Definition amended tax return Dual status does not refer to your citizenship; it refers only to your resident status in the United States. Definition amended tax return In determining your U. Definition amended tax return S. Definition amended tax return income tax liability for a dual-status tax year, different rules apply for the part of the year you are a resident of the United States and the part of the year you are a nonresident. Definition amended tax return The most common dual-status tax years are the years of arrival and departure. Definition amended tax return See Dual-Status Aliens in chapter 1. Definition amended tax return If you are married and choose to be treated as a U. Definition amended tax return S. Definition amended tax return resident for the entire year, as explained in chapter 1, the rules of this chapter do not apply to you for that year. Definition amended tax return Topics - This chapter discusses: Income subject to tax, Restrictions for dual-status taxpayers, Exemptions, How to figure the tax, Forms to file, When and where to file, and How to fill out a dual-status return. Definition amended tax return Useful Items - You may want to see: Publication 503 Child and Dependent Care Expenses 514 Foreign Tax Credit for Individuals 575 Pension and Annuity Income Form (and Instructions) 1040 U. Definition amended tax return S. Definition amended tax return Individual Income Tax Return 1040-C U. Definition amended tax return S. Definition amended tax return Departing Alien Income Tax Return 1040-ES Estimated Tax for Individuals 1040-ES (NR) U. Definition amended tax return S. Definition amended tax return Estimated Tax for Nonresident Alien Individuals 1040NR U. Definition amended tax return S. Definition amended tax return Nonresident Alien Income Tax Return 1116 Foreign Tax Credit See chapter 12 for information about getting these publications and forms. Definition amended tax return Tax Year You must file your tax return on the basis of an annual accounting period called a tax year. Definition amended tax return If you have not previously established a fiscal tax year, your tax year is the calendar year. Definition amended tax return A calendar year is 12 consecutive months ending on December 31. Definition amended tax return If you have previously established a regular fiscal year (12 consecutive months ending on the last day of a month other than December, or a 52–53 week year) and are considered to be a U. Definition amended tax return S. Definition amended tax return resident for any calendar year, you will be treated as a U. Definition amended tax return S. Definition amended tax return resident for any part of your fiscal year that falls within that calendar year. Definition amended tax return Income Subject to Tax For the part of the year you are a resident alien, you are taxed on income from all sources. Definition amended tax return Income from sources outside the United States is taxable if you receive it while you are a resident alien. Definition amended tax return The income is taxable even if you earned it while you were a nonresident alien or if you became a nonresident alien after receiving it and before the end of the year. Definition amended tax return For the part of the year you are a nonresident alien, you are taxed on income from U. Definition amended tax return S. Definition amended tax return sources and on certain foreign source income treated as effectively connected with a U. Definition amended tax return S. Definition amended tax return trade or business. Definition amended tax return (The rules for treating foreign source income as effectively connected are discussed in chapter 4 under Foreign Income. Definition amended tax return ) Income from sources outside the United States that is not effectively connected with a trade or business in the United States is not taxable if you receive it while you are a nonresident alien. Definition amended tax return The income is not taxable even if you earned it while you were a resident alien or if you became a resident alien or a U. Definition amended tax return S. Definition amended tax return citizen after receiving it and before the end of the year. Definition amended tax return Income from U. Definition amended tax return S. Definition amended tax return sources is taxable whether you receive it while a nonresident alien or a resident alien unless specifically exempt under the Internal Revenue Code or a tax treaty provision. Definition amended tax return Generally, tax treaty provisions apply only to the part of the year you were a nonresident. Definition amended tax return In certain cases, however, treaty provisions may apply while you were a resident alien. Definition amended tax return See chapter 9 for more information. Definition amended tax return When determining what income is taxed in the United States, you must consider exemptions under U. Definition amended tax return S. Definition amended tax return tax law as well as the reduced tax rates and exemptions provided by tax treaties between the United States and certain foreign countries. Definition amended tax return For a further discussion of tax treaties, see chapter 9. Definition amended tax return Restrictions for Dual-Status Taxpayers The following restrictions apply if you are filing a tax return for a dual-status tax year. Definition amended tax return 1) Standard deduction. Definition amended tax return   You cannot use the standard deduction allowed on Form 1040. Definition amended tax return However, you can itemize any allowable deductions. Definition amended tax return 2) Exemptions. Definition amended tax return   Your total deduction for the exemptions for your spouse and allowable dependents cannot be more than your taxable income (figured without deducting personal exemptions) for the period you are a resident alien. Definition amended tax return 3) Head of household. Definition amended tax return   You cannot use the head of household Tax Table column or Tax Computation Worksheet. Definition amended tax return 4) Joint return. Definition amended tax return   You cannot file a joint return. Definition amended tax return However, see Choosing Resident Alien Status under Dual-Status Aliens in chapter 1. Definition amended tax return 5) Tax rates. Definition amended tax return   If you are married and a nonresident of the United States for all or part of the tax year and you do not choose to file jointly as discussed in chapter 1, you must use the Tax Table column or Tax Computation Worksheet for married filing separately to figure your tax on income effectively connected with a U. Definition amended tax return S. Definition amended tax return trade or business. Definition amended tax return You cannot use the Tax Table column or Tax Computation Worksheet for married filing jointly or single. Definition amended tax return However, you may be able to file as single if you lived apart from your spouse during the last 6 months of the year and you are a: Married resident of Canada, Mexico, or South Korea, or Married U. Definition amended tax return S. Definition amended tax return national. Definition amended tax return  See the instructions for Form 1040NR to see if you qualify. Definition amended tax return    A U. Definition amended tax return S. Definition amended tax return national is an individual who, although not a U. Definition amended tax return S. Definition amended tax return citizen, owes his or her allegiance to the United States. Definition amended tax return U. Definition amended tax return S. Definition amended tax return nationals include American Samoans and Northern Mariana Islanders who chose to become U. Definition amended tax return S. Definition amended tax return nationals instead of U. Definition amended tax return S. Definition amended tax return citizens. Definition amended tax return 6) Tax credits. Definition amended tax return   You cannot claim the education credits, the earned income credit, or the credit for the elderly or the disabled unless: You are married, and You choose to be treated as a resident for all of 2013 by filing a joint return with your spouse who is a U. Definition amended tax return S. Definition amended tax return citizen or resident, as discussed in chapter 1. Definition amended tax return Exemptions As a dual-status taxpayer, you usually will be able to claim your own personal exemption. Definition amended tax return Subject to the general rules for qualification, you can claim exemptions for your spouse and dependents when you figure taxable income for the part of the year you are a resident alien. Definition amended tax return The amount you can claim for these exemptions is limited to your taxable income (figured before subtracting exemptions) for the part of the year you are a resident alien. Definition amended tax return You cannot use exemptions (other than your own) to reduce taxable income to less than zero for that period. Definition amended tax return Special rules apply to exemptions for the part of the tax year you are a nonresident alien if you are a: Resident of Canada, Mexico, or South Korea, U. Definition amended tax return S. Definition amended tax return national, or Student or business apprentice from India. Definition amended tax return For more information, see Exemptions in chapter 5. Definition amended tax return How To Figure Tax When you figure your U. Definition amended tax return S. Definition amended tax return tax for a dual-status year, you are subject to different rules for the part of the year you are a resident and the part of the year you are a nonresident. Definition amended tax return Income All income for your period of residence and all income that is effectively connected with a trade or business in the United States for your period of nonresidence, after allowable deductions, is added and taxed at the rates that apply to U. Definition amended tax return S. Definition amended tax return citizens and residents. Definition amended tax return Income that is not connected with a trade or business in the United States for your period of nonresidence is subject to the flat 30% rate or lower treaty rate. Definition amended tax return You cannot take any deductions against this income. Definition amended tax return Social security and railroad retirement benefits. Definition amended tax return   During the part of the year you are a nonresident alien, 85% of any U. Definition amended tax return S. Definition amended tax return social security benefits (and the equivalent portion of tier 1 railroad retirement benefits) you receive is subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. Definition amended tax return (See The 30% Tax in chapter 4. Definition amended tax return )   During the part of the year you are a resident alien, part of the social security and the equivalent portion of tier 1 railroad retirement benefits will be taxed at graduated rates if your modified adjusted gross income plus half of these benefits is more than a certain base amount. Definition amended tax return Use the Social Security Benefits Worksheet in the Form 1040 instructions to help you figure the taxable part of your social security and equivalent tier 1 railroad retirement benefits for the part of the year you were a resident alien. Definition amended tax return If you received U. Definition amended tax return S. Definition amended tax return social security benefits while you were a nonresident alien, the Social Security Administration will send you Form SSA-1042S showing your combined benefits for the entire year and the amount of tax withheld. Definition amended tax return You will not receive separate statements for the benefits received during your periods of U. Definition amended tax return S. Definition amended tax return residence and nonresidence. Definition amended tax return Therefore, it is important for you to keep careful records of these amounts. Definition amended tax return You will need this information to properly complete your return and determine your tax liability. Definition amended tax return If you received railroad retirement benefits while you were a nonresident alien, the U. Definition amended tax return S. Definition amended tax return Railroad Retirement Board (RRB) will send you Form RRB-1042S, Statement for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, and/or Form RRB-1099-R, Annuities or Pensions by the Railroad Retirement Board. Definition amended tax return If your country of legal residence changed or your rate of tax changed during the tax year, you may receive more than one form. Definition amended tax return Tax Credits and Payments This discussion covers tax credits and payments for dual-status aliens. Definition amended tax return Credits As a dual-status alien, you generally can claim tax credits using the same rules that apply to resident aliens. Definition amended tax return There are certain restrictions that may apply. Definition amended tax return These restrictions are discussed here, along with a brief explanation of credits often claimed by individuals. Definition amended tax return Foreign tax credit. Definition amended tax return   If you have paid or are liable for the payment of income tax to a foreign country on income from foreign sources, you may be able to claim a credit for the foreign taxes. Definition amended tax return   If you claim the foreign tax credit, you generally must file Form 1116 with your income tax return. Definition amended tax return For more information, see the Instructions for Form 1116 and Publication 514. Definition amended tax return Child and dependent care credit. Definition amended tax return   You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse so that you can work or look for work. Definition amended tax return Generally, you must be able to claim an exemption for your dependent. Definition amended tax return   Married dual-status aliens can claim the credit only if they choose to file a joint return as discussed in chapter 1, or if they qualify as certain married individuals living apart. Definition amended tax return   The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income for that tax year. Definition amended tax return   For more information, get Publication 503 and Form 2441. Definition amended tax return Retirement savings contributions credit. Definition amended tax return   You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2013. Definition amended tax return You cannot claim this credit if: You were born after January 1, 1996, You were a full-time student, Your exemption is claimed by someone else on his or her 2013 tax return, or Your adjusted gross income is more than $29,500. Definition amended tax return Use Form 8880 to figure the credit. Definition amended tax return For more information, see Publication 590. Definition amended tax return Child tax credit. Definition amended tax return   You may be able to take this credit if you have a qualifying child. Definition amended tax return   A qualifying child for purposes of the child tax credit is a child who: Was under age 17 at the end of 2013. Definition amended tax return Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Definition amended tax return Is a U. Definition amended tax return S. Definition amended tax return citizen, a U. Definition amended tax return S. Definition amended tax return national, or a resident alien. Definition amended tax return Did not provide over half of his or her own support for 2013. Definition amended tax return Lived with you more than half of 2013. Definition amended tax return Temporary absences, such as for school, vacation, or medical care, count as time lived in the home. Definition amended tax return Is claimed as a dependent on your return. Definition amended tax return An adopted child is always treated as your own child. Definition amended tax return An adopted child includes a child lawfully placed with you for legal adoption. Definition amended tax return   See your form instructions for additional details. Definition amended tax return Adoption credit. Definition amended tax return   You may qualify to take a tax credit of up to $12,970 for qualifying expenses paid to adopt an eligible child. Definition amended tax return This amount may be allowed for the adoption of a child with special needs regardless of whether you have qualifying expenses. Definition amended tax return To claim the adoption credit, file Form 8839 with the U. Definition amended tax return S. Definition amended tax return income tax return that you file. Definition amended tax return   Married dual-status aliens can claim the credit only if they choose to file a joint return with a U. Definition amended tax return S. Definition amended tax return citizen or resident spouse as discussed in chapter 1, or if they qualify as certain married individuals living apart (see Married Persons Not Filing Jointly in the Form 8839 instructions). Definition amended tax return Payments You can report as payments against your U. Definition amended tax return S. Definition amended tax return income tax liability certain taxes you paid, are considered to have paid, or that were withheld from your income. Definition amended tax return These include: Tax withheld from wages earned in the United States, Taxes withheld at the source from various items of income from U. Definition amended tax return S. Definition amended tax return sources other than wages, Estimated tax paid with Form 1040-ES or Form 1040-ES (NR), and Tax paid with Form 1040-C, at the time of departure from the United States. Definition amended tax return Forms To File The U. Definition amended tax return S. Definition amended tax return income tax return you must file as a dual-status alien depends on whether you are a resident alien or a nonresident alien at the end of the tax year. Definition amended tax return Resident at end of year. Definition amended tax return   You must file Form 1040 if you are a dual-status taxpayer who becomes a resident during the year and who is a U. Definition amended tax return S. Definition amended tax return resident on the last day of the tax year. Definition amended tax return Write “Dual-Status Return” across the top of the return. Definition amended tax return Attach a statement to your return to show the income for the part of the year you are a nonresident. Definition amended tax return You can use Form 1040NR or Form 1040NR-EZ as the statement, but be sure to mark “Dual-Status Statement” across the top. Definition amended tax return Nonresident at end of year. Definition amended tax return   You must file Form 1040NR or Form 1040NR-EZ if you are a dual-status taxpayer who gives up residence in the United States during the year and who is not a U. Definition amended tax return S. Definition amended tax return resident on the last day of the tax year. Definition amended tax return Write “Dual-Status Return” across the top of the return. Definition amended tax return Attach a statement to your return to show the income for the part of the year you are a resident. Definition amended tax return You can use Form 1040 as the statement, but be sure to mark “Dual-Status Statement” across the top. Definition amended tax return   If you expatriated or terminated your residency in 2013, you may be required to file an expatriation statement (Form 8854) with your tax return. Definition amended tax return For more information, see Expatriation Tax in chapter 4. Definition amended tax return Statement. Definition amended tax return   Any statement must have your name, address, and taxpayer identification number on it. Definition amended tax return You do not need to sign a separate statement or schedule accompanying your return, because your signature on the return also applies to the supporting statements and schedules. Definition amended tax return When and Where To File If you are a resident alien on the last day of your tax year and report your income on a calendar year basis, you must file no later than April 15 of the year following the close of your tax year. Definition amended tax return If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 4th month following the close of your tax year. Definition amended tax return In either case, file your return with the address for dual-status aliens shown on the back page of the Form 1040 instructions. Definition amended tax return If you are a nonresident alien on the last day of your tax year and you report your income on a calendar year basis, you must file no later than April 15 of the year following the close of your tax year if you receive wages subject to withholding. Definition amended tax return If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 4th month following the close of your tax year. Definition amended tax return If you did not receive wages subject to withholding and you report your income on a calendar year basis, you must file no later than June 15 of the year following the close of your tax year. Definition amended tax return If you report your income on other than a calendar year basis, file your return no later than the 15th day of the 6th month following the close of your tax year. Definition amended tax return In any case, mail your return to:  Department of the Treasury Internal Revenue Service  Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. Definition amended tax return O. Definition amended tax return Box 1303 Charlotte, NC 28201-1303 If the regular due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day that is not a Saturday, Sunday, or legal holiday. Definition amended tax return Prev  Up  Next   Home   More Online Publications
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The Definition Amended Tax Return

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