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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Free 1040 Ez Filing

2012 1040x1040ez Tax Filing2012 1040 Tax FormH&r Block Tax FormAmended Tax Forms1040ez Tax Form 2013Taxact Online FreeH & R Block Online TaxesTax Addendum FormIrs Form 1040x InstructionsFiling State Income TaxesIncome Taxes By StateAmend My 2011 TaxAmend 2011 Federal ReturnFiling 1040x InstructionsHow To File Taxes As A College StudentHow To Amend Tax ReturnFile 1040xH & R Block Free TaxesIrs Gov 1040xTax FormsTax 2011 FormForm 1040 Ez1040ez Form 20121040vState Taxes Online For FreeBack Tax HomeState Tax Online Filing1040 Ez Form 20131040ez FormsFiling State Income TaxFederal Ez FormFree Tax Preparation H&r Block2012 Tax Forms 1040ezHow To Amend 2013 Tax ReturnCan I Electronic File My 1040x2011 TaxFile TaxIrs Tax AmendmentFree Sites For Filing State Income Taxes

Free 1040 Ez Filing

Free 1040 ez filing 6. Free 1040 ez filing   Insurance Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible PremiumsSelf-Employed Health Insurance Deduction Nondeductible Premiums Capitalized Premiums When To Deduct Premiums What's New Retiree drug subsidy. Free 1040 ez filing  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). Free 1040 ez filing For more information, see the retiree drug subsidy frequently asked questions on IRS. Free 1040 ez filing gov. Free 1040 ez filing Introduction You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. Free 1040 ez filing However, you may have to capitalize certain insurance costs under the uniform capitalization rules. Free 1040 ez filing For more information, see Capitalized Premiums , later. Free 1040 ez filing Topics - This chapter discusses: Deductible premiums Nondeductible premiums Capitalized premiums When to deduct premiums Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 525 Taxable and Nontaxable Income 538 Accounting Periods and Methods 547 Casualties, Disasters, and Thefts Form (and Instructions) 1040 U. Free 1040 ez filing S. Free 1040 ez filing Individual Income Tax Return See chapter 12 for information about getting publications and forms. Free 1040 ez filing Deductible Premiums You generally can deduct premiums you pay for the following kinds of insurance related to your trade or business. Free 1040 ez filing Insurance that covers fire, storm, theft, accident, or similar losses. Free 1040 ez filing Credit insurance that covers losses from business bad debts. Free 1040 ez filing Group hospitalization and medical insurance for employees, including long-term care insurance. Free 1040 ez filing If a partnership pays accident and health insurance premiums for its partners, it generally can deduct them as guaranteed payments to partners. Free 1040 ez filing If an S corporation pays accident and health insurance premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages subject to federal income tax withholding. Free 1040 ez filing See Publication 15-B. Free 1040 ez filing Liability insurance. Free 1040 ez filing Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. Free 1040 ez filing Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. Free 1040 ez filing If a partnership pays workers' compensation premiums for its partners, it generally can deduct them as guaranteed payments to partners. Free 1040 ez filing If an S corporation pays workers' compensation premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages. Free 1040 ez filing Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. Free 1040 ez filing Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. Free 1040 ez filing Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. Free 1040 ez filing If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. Free 1040 ez filing If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. Free 1040 ez filing Life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract. Free 1040 ez filing Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. Free 1040 ez filing Self-Employed Health Insurance Deduction You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents. Free 1040 ez filing The insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. Free 1040 ez filing A child includes your son, daughter, stepchild, adopted child, or foster child. Free 1040 ez filing A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Free 1040 ez filing One of the following statements must be true. Free 1040 ez filing You were self-employed and had a net profit for the year reported on Schedule C (Form 1040), Profit or Loss From Business; Schedule C-EZ (Form 1040), Net Profit From Business; or Schedule F (Form 1040), Profit or Loss From Farming. Free 1040 ez filing You were a partner with net earnings from self-employment for the year reported on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Free 1040 ez filing , box 14, code A. Free 1040 ez filing You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. Free 1040 ez filing You received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. Free 1040 ez filing Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2, Wage and Tax Statement. Free 1040 ez filing The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business. Free 1040 ez filing For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual. Free 1040 ez filing For partners, a policy can be either in the name of the partnership or in the name of the partner. Free 1040 ez filing You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Free 1040 ez filing However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Free 1040 ez filing Otherwise, the insurance plan will not be considered to be established under your business. Free 1040 ez filing For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. Free 1040 ez filing You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. Free 1040 ez filing However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. Free 1040 ez filing Otherwise, the insurance plan will not be considered to be established under your business. Free 1040 ez filing Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. Free 1040 ez filing If you previously filed returns without using Medicare premiums to figure the deduction, you can file timely amended returns to refigure the deduction. Free 1040 ez filing For more information, see Form 1040X, Amended U. Free 1040 ez filing S. Free 1040 ez filing Individual Income Tax Return. Free 1040 ez filing Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction. Free 1040 ez filing Take the deduction on Form 1040, line 29. Free 1040 ez filing Qualified long-term care insurance. Free 1040 ez filing   You can include premiums paid on a qualified long-term care insurance contract when figuring your deduction. Free 1040 ez filing But, for each person covered, you can include only the smaller of the following amounts. Free 1040 ez filing The amount paid for that person. Free 1040 ez filing The amount shown below. Free 1040 ez filing Use the person's age at the end of the tax year. Free 1040 ez filing Age 40 or younger–$360 Age 41 to 50–$680 Age 51 to 60–$1,360 Age 61 to 70–$3,640 Age 71 or older–$4,550 Qualified long-term care insurance contract. Free 1040 ez filing   A qualified long-term care insurance contract is an insurance contract that only provides coverage of qualified long-term care services. Free 1040 ez filing The contract must meet all the following requirements. Free 1040 ez filing It must be guaranteed renewable. Free 1040 ez filing It must provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits. Free 1040 ez filing It must not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed. Free 1040 ez filing It generally must not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. Free 1040 ez filing Qualified long-term care services. Free 1040 ez filing   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and Maintenance or personal care services. Free 1040 ez filing The services must be required by a chronically ill individual and prescribed by a licensed health care practitioner. Free 1040 ez filing Worksheet 6-A. Free 1040 ez filing Self-Employed Health Insurance Deduction Worksheet Note. Free 1040 ez filing Use a separate worksheet for each trade or business under which an insurance plan is established. Free 1040 ez filing 1. Free 1040 ez filing Enter the total amount paid in 2013 for health insurance coverage established under your business for 2013 for you, your spouse, and your dependents. Free 1040 ez filing Your insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. Free 1040 ez filing But do not include the following. Free 1040 ez filing   Amounts for any month you were eligible to participate in a health plan subsidized by your or your spouse's employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. Free 1040 ez filing Any amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer. Free 1040 ez filing Any amounts you included on Form 8885, line 4. Free 1040 ez filing Any qualified health insurance premiums you paid to “U. Free 1040 ez filing S. Free 1040 ez filing Treasury-HCTC. Free 1040 ez filing ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. Free 1040 ez filing Any payments for qualified long-term care insurance (see line 2) 1. Free 1040 ez filing   2. Free 1040 ez filing For coverage under a qualified long-term care insurance contract, enter for each person covered the smaller of the following amounts. Free 1040 ez filing       a) Total payments made for that person during the year. Free 1040 ez filing       b) The amount shown below. Free 1040 ez filing Use the person's age at the end of the tax year. Free 1040 ez filing         $360— if that person is age 40 or younger          $680— if age 41 to 50         $1,360— if age 51 to 60         $3,640— if age 61 to 70         $4,550— if age 71 or older         Do not include payments for any month you were eligible to participate in a long-term care insurance plan subsidized by your or your spouse’s employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. Free 1040 ez filing If more than one person is covered, figure separately the amount to enter for each person. Free 1040 ez filing Then enter the total of those amounts 2. Free 1040 ez filing   3. Free 1040 ez filing Add lines 1 and 2 3. Free 1040 ez filing   4. Free 1040 ez filing Enter your net profit* and any other earned income** from the trade or business under which the insurance plan is established. Free 1040 ez filing Do not include Conservation Reserve Program payments exempt from self-employment tax. Free 1040 ez filing If the business is an S corporation, skip to line 11 4. Free 1040 ez filing   5. Free 1040 ez filing Enter the total of all net profits* from: Schedule C (Form 1040), line 31; Schedule C-EZ (Form 1040), line 3; Schedule F (Form 1040), line 34; or Schedule K-1 (Form 1065), box 14, code A; plus any other income allocable to the profitable businesses. Free 1040 ez filing Do not include Conservation Reserve Program payments exempt from self-employment tax. Free 1040 ez filing See the Instructions for Schedule SE (Form 1040). Free 1040 ez filing Do not include any net losses shown on these schedules. Free 1040 ez filing 5. Free 1040 ez filing   6. Free 1040 ez filing Divide line 4 by line 5 6. Free 1040 ez filing   7. Free 1040 ez filing Multiply Form 1040, line 27, by the percentage on line 6 7. Free 1040 ez filing   8. Free 1040 ez filing Subtract line 7 from line 4 8. Free 1040 ez filing   9. Free 1040 ez filing Enter the amount, if any, from Form 1040, line 28, attributable to the same trade or business in which the insurance plan is established 9. Free 1040 ez filing   10. Free 1040 ez filing Subtract line 9 from line 8 10. Free 1040 ez filing   11. Free 1040 ez filing Enter your Medicare wages (Form W-2, box 5) from an S corporation in which you are a more-than-2% shareholder and in which the insurance plan is established 11. Free 1040 ez filing   12. Free 1040 ez filing Enter any amount from Form 2555, line 45, attributable to the amount entered on line 4 or 11 above, or any amount from Form 2555-EZ, line 18, attributable to the amount entered on line 11 above 12. Free 1040 ez filing   13. Free 1040 ez filing Subtract line 12 from line 10 or 11, whichever applies 13. Free 1040 ez filing   14. Free 1040 ez filing Enter the smaller of line 3 or line 13 here and on Form 1040, line 29. Free 1040 ez filing Do not include this amount when figuring any medical expense deduction on Schedule A (Form 1040). Free 1040 ez filing 14. Free 1040 ez filing   * If you used either optional method to figure your net earnings from self-employment from any business, do not enter your net profit from the business. Free 1040 ez filing Instead, enter the amount attributable to that business from Schedule SE (Form 1040), Section B, line 4b. Free 1040 ez filing * *Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. Free 1040 ez filing However, it does not include capital gain income. Free 1040 ez filing Chronically ill individual. Free 1040 ez filing   A chronically ill individual is a person who has been certified as one of the following. Free 1040 ez filing An individual who has been unable, due to loss of functional capacity for at least 90 days, to perform at least two activities of daily living without substantial assistance from another individual. Free 1040 ez filing Activities of daily living are eating, toileting, transferring (general mobility), bathing, dressing, and continence. Free 1040 ez filing An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Free 1040 ez filing The certification must have been made by a licensed health care practitioner within the previous 12 months. Free 1040 ez filing Benefits received. Free 1040 ez filing   For information on excluding benefits you receive from a long-term care contract from gross income, see Publication 525. Free 1040 ez filing Other coverage. Free 1040 ez filing   You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. Free 1040 ez filing In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2013, do not use amounts paid for coverage for that month to figure the deduction. Free 1040 ez filing   These rules are applied separately to plans that provide long-term care insurance and plans that do not provide long-term care insurance. Free 1040 ez filing However, any medical insurance payments not deductible on Form 1040, line 29, can be included as medical expenses on Schedule A (Form 1040), Itemized Deductions, if you itemize deductions. Free 1040 ez filing Effect on itemized deductions. Free 1040 ez filing   Subtract the health insurance deduction from your medical insurance when figuring medical expenses on Schedule A (Form 1040) if you itemize deductions. Free 1040 ez filing Effect on self-employment tax. Free 1040 ez filing   For tax years beginning before or after 2010, you cannot subtract the self-employed health insurance deduction when figuring net earnings for your self-employment tax from the business under which the insurance plan is established, or considered to be established as discussed earlier. Free 1040 ez filing For more information, see Schedule SE (Form 1040). Free 1040 ez filing How to figure the deduction. Free 1040 ez filing   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. Free 1040 ez filing However, if any of the following apply, you must use Worksheet 6-A in this chapter. Free 1040 ez filing You had more than one source of income subject to self-employment tax. Free 1040 ez filing You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Free 1040 ez filing You are using amounts paid for qualified long-term care insurance to figure the deduction. Free 1040 ez filing If you are claiming the health coverage tax credit, complete Form 8885, Health Coverage Tax Credit, before you figure this deduction. Free 1040 ez filing Health coverage tax credit. Free 1040 ez filing   You may be able to take this credit only if you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient. Free 1040 ez filing Use Form 8885 to figure the amount, if any, of this credit. Free 1040 ez filing   When figuring the amount to enter on line 1 of Worksheet 6-A, do not include the following. Free 1040 ez filing Any amounts you included on Form 8885, line 4. Free 1040 ez filing Any qualified health insurance premiums you paid to “U. Free 1040 ez filing S. Free 1040 ez filing Treasury-HCTC. Free 1040 ez filing ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Free 1040 ez filing More than one health plan and business. Free 1040 ez filing   If you have more than one health plan during the year and each plan is established under a different business, you must use separate worksheets (Worksheet 6-A) to figure each plan's net earnings limit. Free 1040 ez filing Include the premium you paid under each plan on line 1 or line 2 of that separate worksheet and your net profit (or wages) from that business on line 4 (or line 11). Free 1040 ez filing For a plan that provides long-term care insurance, the total of the amounts entered for each person on line 2 of all worksheets cannot be more than the appropriate limit shown on line 2 for that person. Free 1040 ez filing Nondeductible Premiums You cannot deduct premiums on the following kinds of insurance. Free 1040 ez filing Self-insurance reserve funds. Free 1040 ez filing You cannot deduct amounts credited to a reserve set up for self-insurance. Free 1040 ez filing This applies even if you cannot get business insurance coverage for certain business risks. Free 1040 ez filing However, your actual losses may be deductible. Free 1040 ez filing See Publication 547. Free 1040 ez filing Loss of earnings. Free 1040 ez filing You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability. Free 1040 ez filing However, see the discussion on overhead insurance, item (8), under Deductible Premiums , earlier. Free 1040 ez filing Certain life insurance and annuities. Free 1040 ez filing For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. Free 1040 ez filing You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. Free 1040 ez filing A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. Free 1040 ez filing For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. Free 1040 ez filing The disallowance applies without regard to whom the policy covers. Free 1040 ez filing Partners. Free 1040 ez filing If, as a partner in a partnership, you take out an insurance policy on your own life and name your partners as beneficiaries to induce them to retain their investments in the partnership, you are considered a beneficiary. Free 1040 ez filing You cannot deduct the insurance premiums. Free 1040 ez filing Insurance to secure a loan. Free 1040 ez filing If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. Free 1040 ez filing Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. Free 1040 ez filing In the event of death, the proceeds of the policy are generally not taxed as income even if they are used to liquidate the debt. Free 1040 ez filing Capitalized Premiums Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. Free 1040 ez filing Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. Free 1040 ez filing You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Free 1040 ez filing Indirect costs include premiums for insurance on your plant or facility, machinery, equipment, materials, property produced, or property acquired for resale. Free 1040 ez filing Uniform capitalization rules. Free 1040 ez filing   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. Free 1040 ez filing Produce real property or tangible personal property. Free 1040 ez filing For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. Free 1040 ez filing Acquire property for resale. Free 1040 ez filing However, these rules do not apply to the following property. Free 1040 ez filing Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. Free 1040 ez filing Property you produce if you meet either of the following conditions. Free 1040 ez filing Your indirect costs of producing the property are $200,000 or less. Free 1040 ez filing You use the cash method of accounting and do not account for inventories. Free 1040 ez filing More information. Free 1040 ez filing   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. Free 1040 ez filing When To Deduct Premiums You can usually deduct insurance premiums in the tax year to which they apply. Free 1040 ez filing Cash method. Free 1040 ez filing   If you use the cash method of accounting, you generally deduct insurance premiums in the tax year you actually paid them, even if you incurred them in an earlier year. Free 1040 ez filing However, see Prepayment , later. Free 1040 ez filing Accrual method. Free 1040 ez filing   If you use an accrual method of accounting, you cannot deduct insurance premiums before the tax year in which you incur a liability for them. Free 1040 ez filing In addition, you cannot deduct insurance premiums before the tax year in which you actually pay them (unless the exception for recurring items applies). Free 1040 ez filing For more information about the accrual method of accounting, see chapter 1. Free 1040 ez filing For information about the exception for recurring items, see Publication 538. Free 1040 ez filing Prepayment. Free 1040 ez filing   You cannot deduct expenses in advance, even if you pay them in advance. Free 1040 ez filing This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Free 1040 ez filing   Expenses such as insurance are generally allocable to a period of time. Free 1040 ez filing You can deduct insurance expenses for the year to which they are allocable. Free 1040 ez filing Example. Free 1040 ez filing In 2013, you signed a 3-year insurance contract. Free 1040 ez filing Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. Free 1040 ez filing You can deduct in 2014 and 2015 the premium allocable to those years. Free 1040 ez filing Dividends received. Free 1040 ez filing   If you receive dividends from business insurance and you deducted the premiums in prior years, at least part of the dividends generally are income. Free 1040 ez filing For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1 under How Much Can I Deduct. Free 1040 ez filing Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

IRS Reminds Taxpayers about Direct Deposit and Split Refunds

 

IR-2014-37, March 27, 2014

WASHINGTON — For 57 million Americans, the refund check is no longer in the mail; it’s already in the bank.

So far this year, the Internal Revenue Service has issued direct-deposit refunds valued at more than $170 billion, as a growing number of taxpayers are choosing the speed and convenience of direct deposit, rather than receiving a paper check. So far this year, almost 85 percent of all refunds have been directly deposited into taxpayers’ bank accounts.

Taxpayers can have their refunds directly deposited when they e-file or by including their account information on their paper tax return..

Banks, mutual funds, brokerage firms and credit unions are all eligible to receive direct deposits. Before making this choice, however, taxpayers should make sure the financial institution accepts direct deposits for the type of account chosen.

Taxpayers also have the option and flexibility of splitting refund deposits among two or three different accounts or financial institutions. For instance, a refund could be split between a savings account, a checking account or an Individual Retirement Arrangement (IRA). Taxpayers can split their refunds when they e-file or by filing Form 8888, Direct Deposit of Refund to More Than One Account.

A taxpayer's refund should only be deposited directly into accounts that are in the taxpayer's own name; the taxpayer's spouse's name or both if it's a joint account.

Those who choose direct deposit get their refunds at least a week sooner, and direct deposit eliminates the chance of a lost, stolen or undeliverable refund.

[The filing season statistics table follows.]

Follow the IRS on New Media
Subscribe to IRS Newswire

2014 FILING SEASON STATISTICS

Cumulative statistics comparing 3/22/13 and 3/21/14

Individual Income Tax Returns:

2013

2014

% Change

Total Receipts

82,413,000

82,852,000

0.5

Total Processed

77,102,000

81,149,000

5.2

 

 

 

 

E-filing Receipts:

 

 

 

TOTAL           

74,420,000

75,610,000

1.6

Tax Professionals

44,524,000

43,953,000

-1.3

Self-prepared

29,896,000

31,657,000

5.9

 

 

 

 

Web Usage:

 

 

 

Visits to IRS.gov

234,237,695

209,074,699

-10.7

 

 

 

 

Total Refunds:

 

 

 

Number

66,429,000

67,383,000

1.4

Amount

$187.788

Billion

$193.543

Billion

3.1

Average refund

$2,827

$2,872

1.6

 

 

 

 

Direct Deposit Refunds:

 

 

 

Number

56,985,000

57,101,000

0.2

Amount

$170.127

Billion

$170.187

Billion

0.04

Average refund

$2,985

$2,980

-0.2

 

Page Last Reviewed or Updated: 27-Mar-2014

The Free 1040 Ez Filing

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