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

How To File For Self Employment On Taxes

Filing A 1040xFree Tax Form 1040ezClaim Social Security Income Taxes10w40ezH&r Block Amended ReturnHow Much Does It Cost To Amend A Tax ReturnIrs Ez Form OnlineFree Tax Calculator 2011Where To File Amended 1040x2012 Form 1040 EzIrs.gov 1040xHow To Refile A Tax ReturnAmend Taxes 2010Free Irs FormsFree State Tax Preparation OnlineH & R Block Free Filing1040ez Fillable Form 2012Can I Amend My 2008 Tax Return1040ez Tax Year 2012Federal Tax Extension1040ez Instructions 2010Www Myfreetaxes Com Mcrsvp2011 1040 Tax FormsHow Do I File My 2010 Taxes For FreeE-file State Taxes OnlyAmended Tax Return More:label_amended_20tax_20return More:bizfinanceFree Tax Preparation For Low IncomeFree 1040 EzHow To File A Amended Tax ReturnH&rblock Free OnlineAmend Tax Return 20131040ez OnlineTurbo Tax 20131040ez RefundNeed 2009 TaxesAmending TaxFederal Income Tax Forms 2011Irs Free File Using Form 1040 EzIrs 1040v FormHow To File Back Taxes

How To File For Self Employment On Taxes

How to file for self employment on taxes 28. How to file for self employment on taxes   Deducciones Misceláneas Table of Contents Qué Hay de Nuevo Introduction Useful Items - You may want to see: Deducciones Sujetas al Límite del 2%Gastos del Empleado no Reembolsados (Línea 21) Costos de la Preparación de la Declaración de Impuestos (Línea 22) Otros Gastos (Línea 23) Deducciones no Sujetas al Límite del 2%Lista de Deducciones Gastos no DeduciblesLista de Gastos no Deducibles Qué Hay de Nuevo Tarifa estándar por milla. How to file for self employment on taxes  La tarifa para uso comercial de un vehículo en 2013 es 56½ centavos por milla. How to file for self employment on taxes Introduction Este capítulo explica qué gastos pueden declararse como deducciones detalladas misceláneas en el Anexo A (Formulario 1040). How to file for self employment on taxes Usted tendrá que reducir por el 2% de su ingreso bruto ajustado el total de la mayoría de las deducciones misceláneas detalladas. How to file for self employment on taxes Este capítulo trata los siguientes temas: Deducciones sujetas al límite del 2%. How to file for self employment on taxes Deducciones no sujetas al límite del 2%. How to file for self employment on taxes Gastos que no se pueden deducir. How to file for self employment on taxes Tiene que guardar documentación para verificar sus deducciones. How to file for self employment on taxes Debe guardar sus recibos, cheques cancelados, cheques sustitutivos, estados de cuentas financieras y otros documentos comprobantes. How to file for self employment on taxes Si desea obtener más información sobre el mantenimiento de documentación, obtenga la Publicación 552, Recordkeeping for Individuals (Mantenimiento de documentación para personas físicas), en inglés. How to file for self employment on taxes Useful Items - You may want to see: Publicación 463 Travel, Entertainment, Gift, and Car Expenses (Gastos de viaje, entretenimiento, regalos y automóvil), en inglés 525 Taxable and Nontaxable Income (El ingreso tributable y no tributable), en inglés 529 Miscellaneous Deductions (Deducciones misceláneas), en inglés 535 Business Expenses (Gastos de negocios), en inglés 587 Business Use of Your Home (Including Use by Daycare Providers) (Uso de su domicilio para propósitos comerciales (incluyendo el uso por proveedores de cuidado infantil)), en inglés 946 How To Depreciate Property (Cómo depreciar la propiedad), en inglés Formulario (e Instrucciones) Anexo A (Formulario 1040) Itemized Deductions (Deducciones detalladas), en inglés 2106 Employee Business Expenses (Gastos de negocio del empleado), en inglés 2106-EZ Unreimbursed Employee Business Expenses (Gastos de negocio del empleado no reembolsados), en inglés Deducciones Sujetas al Límite del 2% Usted puede deducir ciertos gastos como deducciones detalladas misceláneas en el Anexo A (Formulario 1040). How to file for self employment on taxes Puede deducir la parte de sus gastos que supere al 2% de su ingreso bruto ajustado. How to file for self employment on taxes Se calcula la deducción en el Anexo A; restando el 2% de sus ingresos brutos ajustados del total de estos gastos. How to file for self employment on taxes Su ingreso bruto ajustado es la cifra escrita en la línea 38 del Formulario 1040. How to file for self employment on taxes Por lo general, se aplica el límite del 2% después de aplicar los demás límites de deducciones. How to file for self employment on taxes Por ejemplo, el límite del 50% (o del 80%) sobre comidas y entretenimiento relacionados con los negocios (explicado en el capítulo 26) se aplica antes de aplicar el límite del 2%. How to file for self employment on taxes Las deducciones sujetas al límite del 2% se explican aquí de acuerdo con las tres categorías en las cuales los declara en el Anexo A (Formulario 1040): Gastos del empleado no reembolsados (línea 21). How to file for self employment on taxes Costos de la preparación de la declaración de impuestos (línea 22). How to file for self employment on taxes Otros gastos (línea 23). How to file for self employment on taxes Gastos del Empleado no Reembolsados (Línea 21) Generalmente, uno puede deducir en la línea 21 del Anexo A (Formulario 1040) los gastos del empleado no reembolsados que: Pague o en los que incurra durante el año tributario, Sean necesarios para llevar a cabo su oficio o negocio como empleado y Sean ordinarios y necesarios. How to file for self employment on taxes Un gasto es “ordinario” si es común y aceptado en su oficio, negocio o profesión. How to file for self employment on taxes Un gasto es necesario si es adecuado y útil para su negocio. How to file for self employment on taxes Un gasto no tiene que ser obligatorio para considerarse necesario. How to file for self employment on taxes A continuación se indican algunos ejemplos de gastos del empleado no reembolsados. How to file for self employment on taxes Después de la lista encontrará otros ejemplos de gastos del empleado no reembolsados. How to file for self employment on taxes Deudas incobrables incurridas por un empleado en la ejecución de su trabajo. How to file for self employment on taxes Educación relacionada con el trabajo. How to file for self employment on taxes (Vea el capítulo 27). How to file for self employment on taxes Honorarios legales relacionados con su trabajo. How to file for self employment on taxes Licencias y tarifas reglamentarias. How to file for self employment on taxes Primas de seguro contra negligencia profesional. How to file for self employment on taxes Exámenes médicos requeridos por un empleador. How to file for self employment on taxes Impuestos sobre una profesión u ocupación. How to file for self employment on taxes Pasaporte para un viaje de negocios. How to file for self employment on taxes Suscripciones a revistas profesionales y de industria relacionadas con su trabajo. How to file for self employment on taxes Viajes, transporte, entretenimiento y regalos relacionados con su trabajo. How to file for self employment on taxes (Vea el capítulo 26). How to file for self employment on taxes Seguro de Responsabilidad Comercial Puede deducir las primas de seguro que pagó para protegerse contra responsabilidad personal por actos ilícitos en el trabajo. How to file for self employment on taxes Daños por Incumplimiento de Contrato de Empleo Si deja de cumplir con un contrato de empleo, puede deducir los daños que pague a su antiguo empleador que sean atribuibles a la paga que había recibido de ese empleador. How to file for self employment on taxes Depreciación de Computadoras Puede declarar una deducción por depreciación de una computadora que usted usa en el trabajo como empleado si su uso: Es para conveniencia de su empleador y Se requiere como una condición de su empleo. How to file for self employment on taxes Para obtener información acerca de las reglas y excepciones a las reglas que afectan las deducciones permitidas por una computadora en su casa, vea la Publicación 529, en inglés. How to file for self employment on taxes Cuotas a Cámaras de Comercio y Asociaciones Profesionales Es posible que pueda deducir cuotas pagadas a organizaciones profesionales (como asociaciones de abogados y asociaciones médicas) y a cámaras de comercio y organizaciones parecidas, si la afiliación le ayuda a realizar los deberes de su trabajo. How to file for self employment on taxes Estas organizaciones incluyen: Juntas comerciales, Asociaciones comerciales, Organizaciones cívicas o de servicios públicos, Juntas de bienes raíces y Asociaciones profesionales. How to file for self employment on taxes Actividades políticas y de cabildeo. How to file for self employment on taxes   Quizás no pueda deducir la parte de sus cuotas destinada a ciertas actividades políticas y de cabildeo. How to file for self employment on taxes Vea Cuotas usadas para cabildeo bajo Gastos no Deducibles, más adelante. How to file for self employment on taxes Gastos del Educador Si en el año 2013 usted era un educador que reunía los requisitos, usted puede deducir hasta $250 de gastos calificados que usted pagó en el año 2013 como ajuste a los ingresos brutos, en la línea 23 del Formulario 1040, en vez de una deducción detallada miscelánea. How to file for self employment on taxes Si presenta el Formluario 1040A, usted podría deducir estos gastos en la línea 16. How to file for self employment on taxes Si usted y su cónyuge están presentando una declaración conjunta y ambos fueron educadores calificados, la deducción máxima es $500. How to file for self employment on taxes No obstante, ninguno puede deducir más de $250 como gastos calificados. How to file for self employment on taxes Oficina en el Domicilio Si de manera habitual, usted usa una parte de su domicilio exclusivamente para propósitos comerciales, tal vez pueda deducir una parte de los gastos de operación y depreciación de su domicilio. How to file for self employment on taxes Puede reclamar esta deducción por el uso comercial de una parte de su domicilio sólo si utiliza esa parte habitual y exclusivamente: Como el lugar principal de negocios para algún oficio o negocio, Como lugar para reunirse o recibir a sus pacientes o clientes en el transcurso normal de su oficio o negocio o En el caso de un edificio separado no conectado a su domicilio, si lo usa para fines de su oficio o negocio. How to file for self employment on taxes Dicho uso comercial, habitual y exclusivo tiene que ser para conveniencia de su empleador y no sólo adecuado y útil para su propio trabajo. How to file for self employment on taxes Vea la Publicación 587, en inglés, para obtener información más detallada y una hoja de trabajo. How to file for self employment on taxes Gastos Relacionados con la Búsqueda de Empleo Puede deducir determinados gastos que tenga al buscar un nuevo trabajo en su profesión actual, incluso si no lo consigue. How to file for self employment on taxes Pero no puede deducir estos gastos si: Busca trabajo en una nueva profesión, Hubo una pausa considerable entre el término de su último trabajo y la búsqueda de un trabajo nuevo o Busca trabajo por primera vez. How to file for self employment on taxes Cuotas de agencias de colocación y empleo. How to file for self employment on taxes   Puede deducir cuotas que pague a agencias de colocación y empleo que usa como parte de su búsqueda de trabajo en su profesión actual. How to file for self employment on taxes Si el empleador le devuelve dinero. How to file for self employment on taxes   Si, en un año posterior, su empleador le devuelve el dinero de las cuotas de agencias de empleo, usted tiene que incluir la cantidad que reciba en sus ingresos brutos hasta que llegue al total del beneficio tributario que recibió en el año anterior. How to file for self employment on taxes (Vea Recuperaciones de Fondos en el capítulo 12). How to file for self employment on taxes Si el empleador le paga a la agencia de empleo. How to file for self employment on taxes   Si su empleador paga las cuotas directamente a la agencia de empleo y usted no es responsable de pagarlas, no puede incluirlas en sus ingresos brutos. How to file for self employment on taxes Currículum vitae. How to file for self employment on taxes   Puede deducir lo que gaste para preparar o enviar por correo copias de un currículum vitae a posibles empleadores siempre que busca un trabajo nuevo en su profesión actual. How to file for self employment on taxes Gastos de viaje y transporte. How to file for self employment on taxes   Si viaja a algún lugar y durante su estadía busca un trabajo nuevo en su profesión actual, tal vez pueda deducir los gastos de viaje de ida y vuelta al lugar. How to file for self employment on taxes Puede deducir los gastos de viaje si el viaje se realizó principalmente para buscar un trabajo nuevo. How to file for self employment on taxes Es importante saber qué parte del tiempo dedique a actividades personales y qué parte del tiempo dedique a buscar trabajo para determinar si el viaje se hizo principalmente por motivos personales o para buscar un trabajo nuevo. How to file for self employment on taxes   Incluso si no puede deducir los gastos de viaje de ida y vuelta al lugar, puede deducir los gastos de buscar trabajo nuevo en su profesión actual que incurra mientras se encuentra en dicho lugar. How to file for self employment on taxes   Puede optar por utilizar la tarifa estándar por milla para calcular los gastos de automóvil. How to file for self employment on taxes La tarifa correspondiente al año 2013 para uso comercial de un vehículo es 56½ centavos por milla. How to file for self employment on taxes Vea el capítulo 26 para más información. How to file for self employment on taxes Licencias y Tarifas Reglamentarias Puede deducir la cantidad que pague cada año a gobiernos estatales o locales por licencias y tarifas reglamentarias para su oficio, negocio o profesión. How to file for self employment on taxes Impuestos Incidentales al Trabajo Puede deducir un impuesto incidental al trabajo que una localidad le cobre a una tarifa fija por el privilegio de trabajar o realizar un negocio dentro de dicha localidad. How to file for self employment on taxes Si usted es empleado, puede reclamar impuestos incidentales al trabajo sólo como deducción miscelánea sujeta al límite del 2%; no puede reclamarlos como una deducción en otro lugar de su declaración. How to file for self employment on taxes Reintegro de un Pago de Asistencia Un “pago de asistencia” es aquel pago que se recibe de acuerdo con un plan del empleador para ayudar a los empleados que pierden su empleo debido a la falta de trabajo. How to file for self employment on taxes Si usted reintegra un pago de asistencia de suma global que recibió y había incluido en sus ingresos en un año anterior, puede deducir dicho reintegro. How to file for self employment on taxes Gastos de Investigación de un Profesor Universitario Si es profesor universitario, puede deducir los gastos de investigación, incluidos gastos de viaje y gastos en los que incurra por enseñar, dar conferencias o escribir y publicar temas relacionados directamente con su labor de enseñanza. How to file for self employment on taxes Tiene que haber comenzado la investigación como parte de los deberes de enseñanza que se esperan de un profesor y sin expectativas lucrativas además del sueldo. How to file for self employment on taxes No obstante, no puede deducir los costos de viajes como una forma de educación. How to file for self employment on taxes Herramientas Utilizadas en su Trabajo Por lo general, puede deducir los gastos por herramientas que usa en su trabajo si éstas se desgastan y se deshace de ellas dentro de 1 año después de la fecha de compra. How to file for self employment on taxes Puede depreciar el costo de las herramientas cuya vida sea mayor del año tributario. How to file for self employment on taxes Para obtener más información acerca de la depreciación, vea la Publicación 946, en inglés. How to file for self employment on taxes Cuotas y Gastos de Afiliación a un Sindicato Puede deducir cuotas y tarifas iniciales que pague para afiliarse a un sindicato. How to file for self employment on taxes También puede deducir contribuciones destinadas a los beneficios para miembros del sindicato desempleados. How to file for self employment on taxes No obstante, no puede deducir la parte de las contribuciones o aportaciones destinadas a los fondos para el pago de beneficios por enfermedad, accidente o fallecimiento. How to file for self employment on taxes Asimismo, no puede deducir aportaciones a un fondo de pensiones, incluso si el sindicato le exige que realice las aportaciones. How to file for self employment on taxes Tal vez no pueda deducir las cantidades que pague al sindicato si éstas están relacionadas con determinadas actividades políticas o de cabildeo. How to file for self employment on taxes Vea Gastos de Cabildeo bajo Gastos no Deducibles, más adelante. How to file for self employment on taxes Ropa de Trabajo y Uniformes Puede deducir el costo y mantenimiento de la ropa de trabajo si se cumplen los dos requisitos siguientes: Está obligado a usarlas como condición de empleo. How to file for self employment on taxes La ropa no es adecuada para uso cotidiano. How to file for self employment on taxes No es suficiente usar ropa distintiva. How to file for self employment on taxes Su empleador tiene que requerir específicamente esa ropa. How to file for self employment on taxes Tampoco es suficiente que, de hecho, no use su ropa de trabajo en otro lugar. How to file for self employment on taxes La ropa no puede servir para reemplazar su ropa habitual. How to file for self employment on taxes Algunos ejemplos de trabajadores que tal vez puedan deducir el costo y mantenimiento de la ropa de trabajo son: personas que realicen entregas, bomberos, proveedores de servicios de la salud, agentes encargados de mantener el orden público, carteros, atletas profesionales y trabajadores del transporte (aéreo, ferroviario, terrestre, etc. How to file for self employment on taxes ). How to file for self employment on taxes Los músicos y artistas pueden deducir el costo de la ropa y los accesorios de teatro si no son adecuados para su uso cotidiano. How to file for self employment on taxes Sin embargo, la ropa de trabajo que conste de un gorro blanco, camisa blanca o chaqueta blanca, overol (de pintor) blanco y zapatos de trabajo estándar, como la que debe usar un pintor en su trabajo por exigencia de su sindicato, no es distintiva en cuanto a carácter ni a la naturaleza del uniforme. How to file for self employment on taxes Igualmente, los costos de compra y mantenimiento de ropa de trabajo azul usada por un soldador a solicitud de un capataz no son deducibles. How to file for self employment on taxes Ropa de protección. How to file for self employment on taxes   Puede deducir el costo de la ropa de protección obligatoria en su trabajo, como zapatos o botas de seguridad, anteojos de seguridad, cascos y guantes de trabajo. How to file for self employment on taxes   Algunos ejemplos de trabajadores a los que quizás se les exija usar artículos de seguridad son: carpinteros, trabajadores del cemento, trabajadores de productos químicos, electricistas, tripulación de barcos de pesca, maquinistas, trabajadores de campos petrolíferos, fontaneros, técnicos en tuberías y conductores de camiones. How to file for self employment on taxes Uniformes militares. How to file for self employment on taxes   Generalmente, no puede deducir el costo de uniformes si está en servicio activo a tiempo completo en las Fuerzas Armadas. How to file for self employment on taxes Sin embargo, si es miembro en reserva de las Fuerzas Armadas, puede deducir el costo no reembolsado de su uniforme si los reglamentos militares exigen que su uso se limite a cuando esté en servicio como miembro en reserva. How to file for self employment on taxes Al calcular la deducción, tiene que deducir del costo la asignación no gravable que reciba por estos gastos. How to file for self employment on taxes   Si las reglas militares locales no le permiten que use uniformes de faena cuando no esté de servicio, puede deducir la cantidad por la cual el costo de compra y mantenimiento de estos uniformes sea superior a la asignación por uniforme que reciba. How to file for self employment on taxes   Puede deducir el costo de sus uniformes si es miembro del personal o profesorado civil de una escuela militar. How to file for self employment on taxes Costos de la Preparación de la Declaración de Impuestos (Línea 22) Generalmente, puede deducir los costos de la preparación de la declaración de impuestos en el año en el que los paga. How to file for self employment on taxes De este modo, en la declaración de impuestos de 2013, puede deducir los costos pagados en el año 2013 por la preparación de la declaración del año 2012. How to file for self employment on taxes Estos costos incluyen el costo de los programas de software de preparación de impuestos y publicaciones tributarias. How to file for self employment on taxes También incluyen todo costo que haya pagado por la presentación electrónica de su declaración. How to file for self employment on taxes Otros Gastos (Línea 23) Puede deducir otros gastos determinados como deducciones detalladas misceláneas sujetas al límite del 2%. How to file for self employment on taxes En la línea 23 del Anexo A (Formulario 1040), puede deducir gastos que paga para: Generar o cobrar ingresos que se tienen que incluir en sus ingresos brutos, Administrar, conservar o mantener en buen estado propiedad cuya finalidad es generar un ingreso de estas características o Determinar, impugnar, pagar o solicitar un reembolso de algún impuesto. How to file for self employment on taxes Puede deducir gastos que pague para los fines indicados en las secciones (1) y (2) anteriores sólo si están razonable y estrechamente relacionados con estos fines. How to file for self employment on taxes Algunos de estos gastos se explican más adelante. How to file for self employment on taxes Si los gastos que pague generan ingresos que sólo sean parcialmente tributables, vea Gastos de Ingresos Exentos de Impuestos más adelante, bajo Gastos no Deducibles. How to file for self employment on taxes Cargos de Tasación Puede deducir cargos de tasación si los paga para calcular una pérdida por hecho fortuito o el valor justo de mercado de una propiedad donada. How to file for self employment on taxes Pérdidas por Hecho Fortuito y Robo Puede deducir una pérdida por hecho fortuito o robo como una deducción detallada miscelánea sujeta al límite del 2% si utilizaba la propiedad dañada o robada para realizar servicios como empleado. How to file for self employment on taxes Primero declare la pérdida en la Sección B del Formulario 4684, Casualties and Thefts (Hechos fortuitos y robos), en inglés. How to file for self employment on taxes Es posible que también tenga que incluir la pérdida en el Formulario 4797, Sales of Business Property (Ventas de propiedades de negocios), también en inglés, si es que está obligado por otras razones a presentar ese formulario. How to file for self employment on taxes Para calcular su deducción, sume todas las pérdidas por hecho fortuito o robo de este tipo de propiedad que se incluyan en las líneas 32 y 38b del Formulario 4684, o la línea 18a del Formulario 4797, ambos en inglés. How to file for self employment on taxes Para información sobre otras pérdidas por hecho fortuito o robo, vea el capítulo 25. How to file for self employment on taxes Apoyo Administrativo y Alquiler de Oficina Puede deducir gastos de oficina, (por ejemplo apoyo administrativo y alquiler), que usted incurre con respecto a sus inversiones y al cobro de los ingresos tributables generados por las mismas. How to file for self employment on taxes Cargos de Tramitación por el Uso de una Tarjeta de Crédito o Débito Puede deducir el cargo administrativo que le cobra el tramitador de la tarjeta de crédito por efectuar un pago del impuesto sobre los ingresos (inclusive pagos del impuesto estimado) con tarjeta de crédito o débito. How to file for self employment on taxes Dichos cargos son deducibles en el año en que se paguen. How to file for self employment on taxes Depreciación de Computadora de Uso Doméstico Puede deducir la depreciación de su computadora de uso doméstico si la utiliza para generar ingresos (por ejemplo, para administrar sus inversiones que generen ingresos tributables). How to file for self employment on taxes Por lo general, tiene que depreciar la computadora según el método uniforme durante el período de recuperación del Sistema Alternativo de Depreciación (ADS, por sus siglas en inglés). How to file for self employment on taxes Si trabaja como empleado y también utiliza la computadora en ese trabajo, vea la Publicación 946, en inglés. How to file for self employment on taxes Deducciones que le Sobran de un Caudal Hereditario Si las deducciones totales de un caudal hereditario en su año tributario anterior son superiores a su ingreso bruto de ese año, los beneficiarios que heredan la propiedad pueden deducir la cantidad que le sobró en exceso. How to file for self employment on taxes No incluya las deducciones por la exención personal del caudal hereditario y las donaciones con fines benéficos al calcular las deducciones totales del caudal hereditario. How to file for self employment on taxes Los beneficiarios pueden reclamar la deducción sólo para el año tributario en el que, o con el que, termina el caudal hereditario, sea el año final un año normal o un año tributario corto. How to file for self employment on taxes Para obtener más información, vea Termination of Estate (Terminación de un caudal hereditario) en la Publicación 559, Survivors, Executors, and Administrators (Sobrevivientes, albaceas y administradores), en inglés. How to file for self employment on taxes Cargos del Cobro de Intereses y Dividendos Puede deducir cargos que paga a un agente de bolsa, banco, fideicomisario o agente parecido por el cobro de los intereses de los bonos o dividendos de acciones tributables. How to file for self employment on taxes Sin embargo, no puede deducir un cargo que pague a un agente de bolsa para comprar bienes de inversión, como acciones o bonos. How to file for self employment on taxes Tiene que agregar el cargo al costo de los bienes. How to file for self employment on taxes No puede deducir el cargo que pague a un agente de bolsa para vender valores. How to file for self employment on taxes Puede usar el cargo sólo para calcular las pérdidas o ganancias de la venta. How to file for self employment on taxes Vea las Instrucciones del Formulario 8949, para obtener información sobre cómo declarar el cargo. How to file for self employment on taxes Gastos Relacionados con un Pasatiempo Por lo general, puede deducir gastos relacionados con un pasatiempo, pero sólo hasta la cantidad del ingreso generado por el mismo. How to file for self employment on taxes Un pasatiempo no es un negocio porque no se realiza para obtener un beneficio económico. How to file for self employment on taxes Consulte Actividad sin fines de lucro en el capítulo 12 bajo Otros Ingresos. How to file for self employment on taxes Deducciones Indirectas de Entidades que Traspasan los Atributos Tributarios Las entidades que traspasan los atributos tributarios incluyen sociedades colectivas, sociedades anónimas de tipo S y fondos mutuos que no se ofrecen al público. How to file for self employment on taxes Las deducciones de dichas entidades se traspasan a los socios o accionistas. How to file for self employment on taxes Los socios o accionistas pueden deducir su parte de las deducciones traspasadas para gastos de inversión como deducciones detalladas misceláneas sujetas al límite del 2%. How to file for self employment on taxes Ejemplo. How to file for self employment on taxes Usted es miembro de un club de inversiones formado exclusivamente para invertir en valores. How to file for self employment on taxes El club se considera una sociedad colectiva. How to file for self employment on taxes Los ingresos de la sociedad colectiva provienen exclusivamente de dividendos, intereses y ganancias tributables procedentes de la venta de valores. How to file for self employment on taxes En este caso, usted puede deducir su parte de los gastos de operación de la sociedad colectiva como deducciones detalladas misceláneas sujetas al límite del 2%. How to file for self employment on taxes No obstante, si el club de inversiones tiene inversiones que generan ingresos no tributables también, no puede deducir su parte de los gastos que generan ingresos no tributables. How to file for self employment on taxes Fondos mutuos de oferta pública. How to file for self employment on taxes   Los fondos mutuos de oferta pública no traspasan deducciones por gastos de inversión a los accionistas. How to file for self employment on taxes Un fondo mutuo es “de oferta pública” si: Se comercializa continuamente en virtud de una oferta pública, Se cotiza habitualmente en un mercado bursátil de valores establecido o Están bajo la propiedad de al menos 500 personas en todo momento durante el año tributario. How to file for self employment on taxes   El fondo mutuo de oferta pública le enviará un Formulario 1099-DIV, Dividends and Distributions (Dividendos y distribuciones), en inglés, o un formulario sustitutivo, que indique la cantidad neta del ingreso de dividendos (dividendos brutos menos gastos de inversión). How to file for self employment on taxes Esta cifra neta es la cantidad que declara como ingresos. How to file for self employment on taxes Usted no puede también deducir los gastos de inversión incurridos por fondos mutuos de oferta pública porque ya se incluyen como parte de la cantidad neta del ingreso de dividendos. How to file for self employment on taxes Declaraciones informativas. How to file for self employment on taxes   Las entidades que traspasan los atributos tributarios deben enviarle declaraciones informativas. How to file for self employment on taxes Sociedades colectivas y de tipo S. How to file for self employment on taxes   Estas entidades generan el Anexo K-1, el cual indica los conceptos y las cantidades que tiene que declarar y también identifica los anexos y las líneas de la declaración de impuestos que se deben usar. How to file for self employment on taxes Fondos mutuos que no son de oferta pública. How to file for self employment on taxes   Estos fondos le enviarán un Formulario 1099-DIV, Dividends and Distributions (Dividendos y distribuciones), o un formulario sustitutivo, el cual indicará su parte de los ingresos brutos y los gastos de inversión. How to file for self employment on taxes Puede declarar los gastos sólo como una deducción detallada miscelánea sujeta al límite del 2%. How to file for self employment on taxes Cargos y Gastos Relacionados con la Inversión Puede deducir cargos relacionados con la inversión, custodia, administración de fideicomiso y otros gastos que pague por la administración de inversiones que generen ingresos tributables. How to file for self employment on taxes Gastos Legales Por lo general, puede deducir gastos legales en los que incurra al intentar generar o cobrar ingresos tributables o que pague en conexión con la determinación, cobro o reembolso de un impuesto. How to file for self employment on taxes También puede deducir gastos legales que: Estén relacionados con la realización o conservación de su trabajo, como los que pague para defenderse contra acusaciones penales que se levanten por las acciones de su oficio o negocio, Sean para asesoría tributaria relacionada con un divorcio, si la factura indica cuánto corresponde a la asesoría tributaria y se determina de una forma razonable o Sean para cobrar una pensión tributable para el cónyuge divorciado. How to file for self employment on taxes Puede deducir los gastos que incurrió para resolver problemas tributarios relacionados con las pérdidas o ganancias de un negocio (Anexo C o C-EZ), alquileres o regalías (Anexo E) o gastos e ingresos agrícolas (Anexo F) en el anexo apropiado, todos en inglés. How to file for self employment on taxes Debe deducir los gastos que incurrió para resolver problemas tributarios no comerciales en el Anexo A (Formulario 1040). How to file for self employment on taxes Vea Costos de la Preparación de la Declaración de Impuestos , anteriormente. How to file for self employment on taxes Pérdidas de Depósitos Para obtener información acerca de si puede deducir la pérdida de un depósito que usted hizo en una institución financiera que reúna los requisitos y cómo declarar la deducción si tiene derecho a ella, vea Pérdidas de Depósitos en el capítulo 25. How to file for self employment on taxes Reintegros de Ingresos Si tuvo que reintegrar una cantidad que incluyó como ingresos en un año anterior, es posible que pueda deducir dicha cantidad reintegrada. How to file for self employment on taxes Si la cantidad que tuvo que reintegrar era ingreso ordinario de $3,000 o menos, la deducción está sujeta al límite del 2%. How to file for self employment on taxes Si fue más de $3,000, vea Reintegros por la Reclamación de un Derecho bajo Deducciones no Sujetas al Límite del 2%, más adelante. How to file for self employment on taxes Reintegros de Beneficios del Seguro Social Para obtener información acerca de cómo deducir los reintegros de ciertos beneficios del Seguro Social, vea Reintegros Superiores a los Beneficios Brutos en el capítulo 11. How to file for self employment on taxes Alquiler de Caja de Seguridad Puede deducir el alquiler de una caja de seguridad si la utiliza para almacenar bonos y acciones que generen ingresos tributables o documentos y papeles relacionados con inversiones. How to file for self employment on taxes No puede deducir el alquiler si sólo utiliza la caja para guardar joyas, otras pertenencias personales o valores exentos de impuestos. How to file for self employment on taxes Cargos Administrativos de los Planes de Reinversión de Dividendos Puede deducir los cargos administrativos que pague como abonado a un plan de reinversión de dividendos. How to file for self employment on taxes Estos cargos administrativos incluyen pagos por: Poseer acciones adquiridas mediante un plan, Cobrar y reinvertir dividendos en efectivo, y Mantener documentación personal y proporcionar estados de cuenta detallados. How to file for self employment on taxes Honorarios por Administración de un Fideicomiso de Arreglos IRA Los honorarios de administración de un fideicomiso que se facturen por separado y que usted pague en relación con un arreglo de ahorros para la jubilación (IRA, por sus siglas en inglés) son deducibles (si son ordinarios y necesarios) como deducción detallada miscelánea sujeta al límite del 2%. How to file for self employment on taxes Para obtener más información acerca de los arreglos IRA, vea el capítulo 17. How to file for self employment on taxes Deducciones no Sujetas al Límite del 2% Puede deducir los artículos indicados a continuación como deducciones detalladas misceláneas. How to file for self employment on taxes No están sujetas al límite del 2%. How to file for self employment on taxes Declare estos artículos en la línea 28 del Anexo A del Formulario 1040. How to file for self employment on taxes Lista de Deducciones Se explica cada uno de los siguientes artículos en detalle después de la lista (excepto cuando se indica al contrario). How to file for self employment on taxes Prima amortizable de bonos tributables. How to file for self employment on taxes Pérdidas por hecho fortuito y robo de una propiedad que genera ingresos. How to file for self employment on taxes Impuesto federal sobre la herencia atribuible a los ingresos de un difunto. How to file for self employment on taxes Pérdidas de apuestas y juegos de azar hasta la cantidad de sus ganancias del juego. How to file for self employment on taxes Gastos del trabajo relacionados con los impedimentos de personas con incapacidades. How to file for self employment on taxes Pérdida por otras actividades anotadas en el recuadro 2 del Anexo K-1 del Formulario 1065-B. How to file for self employment on taxes Pérdidas por estafas de inversiones engañosas tipo Ponzi. How to file for self employment on taxes Vea, Pérdidas proveneintes de estafas de inversiones del tipo Ponzi (Ponzi schemes) , en el capítulo 25. How to file for self employment on taxes Reintegros de más de $3,000 por la reclamación de un derecho. How to file for self employment on taxes Inversión no recuperada en una anualidad. How to file for self employment on taxes Prima Amortizable de Bonos Tributables En general, si la cantidad que paga por un bono es superior a la cantidad de capital estipulado, el excedente corresponde a la prima de los bonos. How to file for self employment on taxes Puede optar por amortizar la prima de bonos tributables. How to file for self employment on taxes Por lo general, la amortización de la prima compensa los ingresos de intereses sobre el bono en lugar de ser una deducción diferente. How to file for self employment on taxes Parte de la prima de algunos bonos puede ser una deducción miscelánea no sujeta al límite del 2%. How to file for self employment on taxes Para obtener más información, vea Amortizable Premium on Taxable Bonds (Prima amortizable de bonos tributables) en la Publicación 529 y Bond Premium Amortization (Amortización de prima de bono) en el capítulo 3 de la Publicación 550, Investment Income and Expenses (Gastos e ingresos de inversión), ambas en inglés. How to file for self employment on taxes Pérdidas por Hecho Fortuito y Robo de Propiedad que Genera Ingresos Puede deducir una pérdida por hecho fortuito o robo como deducción detallada miscelánea no sujeta al límite del 2% si la propiedad dañada o robada era una propiedad que generaba ingresos (propiedad que se tiene con fines de inversión, tal como acciones, pagarés, bonos, oro, plata, terrenos sin construir y obras de arte). How to file for self employment on taxes Primero, declare la pérdida en la Sección B del Formulario 4684. How to file for self employment on taxes Asimismo, es posible que tenga que incluir la pérdida en el Formulario 4797, Sales of Business Property (Ventas de bienes comerciales), en inglés, si por algún otro motivo está obligado a presentar ese formulario. How to file for self employment on taxes Para calcular su deducción, sume todas las pérdidas por hecho fortuito o robo de este tipo de propiedad que se incluyan en las líneas 32 y 38b del Formulario 4684, o la línea 18a del Formulario 4797. How to file for self employment on taxes Para obtener más información acerca de las pérdidas por hecho fortuito y robo, consulte el capítulo 25. How to file for self employment on taxes Impuesto Federal sobre la Herencia Atribuible a los Ingresos de un Difunto Puede deducir el impuesto federal sobre la herencia atribuible a los ingresos de un difunto que usted, como beneficiario, incluye en sus ingresos brutos. How to file for self employment on taxes Los ingresos de un difunto son ingresos brutos que habría recibido éste si no hubiese fallecido y que no se podían incluir debidamente en la última declaración de impuestos del difunto. How to file for self employment on taxes Vea la Publicación 559, en inglés, para obtener más información. How to file for self employment on taxes Pérdidas de Apuestas y Juegos de Azar hasta la Cantidad de sus Ganancias de Juego Tiene que declarar la cantidad total de sus ganancias de apuestas y juegos de azar que tuvo en el año en la línea 21 del Formulario 1040. How to file for self employment on taxes Debe deducir sus pérdidas de juego que tuvo en el año en la línea 28 del Anexo A del Formulario 1040. How to file for self employment on taxes No puede deducir las pérdidas de apuestas y juegos de azar que sean superiores a las ganancias. How to file for self employment on taxes No puede reducir las ganancias de apuestas y juegos de azar por las pérdidas de juego y declarar la diferencia. How to file for self employment on taxes Tiene que declarar la cantidad total de las ganancias como ingresos, y las pérdidas (hasta la cantidad de su ganancias), como deducción detallada. How to file for self employment on taxes Por consiguiente, su documentación debe mostrar las ganancias por separado de las pérdidas. How to file for self employment on taxes Diario de ganancias y pérdidas. How to file for self employment on taxes Tiene que mantener un diario exacto o registro parecido de sus ganancias y pérdidas provenientes de apuestas y juegos de azar. How to file for self employment on taxes Su diario debe contener, como mínimo, la siguiente información: La fecha y el tipo de apuesta específica o actividad de apuestas. How to file for self employment on taxes El nombre y la dirección o ubicación del establecimiento de apuestas. How to file for self employment on taxes Los nombres de otras personas que lo acompañan en el establecimiento de apuestas. How to file for self employment on taxes La (o las) cantidad(es) que ganó o perdió. How to file for self employment on taxes Vea la Publicación 529, en inglés, para información adicional. How to file for self employment on taxes Gastos de Trabajo Relacionados con un Impedimento Si tiene una incapacidad física o mental que limite su capacidad para trabajar o limite sustancialmente una o más de las actividades principales de la vida (como realizar tareas manuales, caminar, hablar, respirar, aprender y trabajar), puede deducir sus gastos de trabajo relacionados con dicho impedimento. How to file for self employment on taxes Los gastos de trabajo relacionados con un impedimento son gastos ordinarios y necesarios del negocio incurridos por servicios de un asistente en su lugar de trabajo y por otros gastos relacionados con su lugar de trabajo que sean necesarios para que pueda trabajar. How to file for self employment on taxes Personas que trabajan por cuenta propia. How to file for self employment on taxes   Si trabaja por cuenta propia, anote los gastos de trabajo relacionados con su incapacidad en el formulario correspondiente (Anexo C, C-EZ, E o F) que utilice para declarar los ingresos y gastos de negocio. How to file for self employment on taxes Pérdida por Otras Actividades Anotadas en el Recuadro 2 del Anexo K-1 del Formulario 1065-B Si la cantidad declarada en el recuadro 2 del Anexo K-1 del Formulario 1065-B es una pérdida, declárela en la línea 28 del Anexo A del Formulario 1040. How to file for self employment on taxes No está sujeto a las limitaciones de actividades pasivas. How to file for self employment on taxes Reintegros por la Reclamación de un Derecho Si tuvo que reintegrar más de $3,000 que incluyó en los ingresos de un año anterior porque en ese momento pensaba que tenía un derecho no restringido a dichos ingresos, tal vez pueda deducir la cantidad que pagó o solicitar que se la acrediten en sus impuestos. How to file for self employment on taxes Vea Reintegros en el capítulo 12, para más información. How to file for self employment on taxes Inversión no Recuperada en una Anualidad Un jubilado que haya contribuido al costo de una anualidad puede excluir de sus ingresos parte de cada pago que reciba, por ser rendimiento exento de impuestos de la inversión del jubilado. How to file for self employment on taxes Si el jubilado muere antes de recuperar toda la inversión libre de impuestos, se podría deducir toda inversión no recuperada en la declaración final de impuestos del jubilado. How to file for self employment on taxes Vea el capítulo 10 para obtener más información acerca del trato tributario de las pensiones y anualidades. How to file for self employment on taxes Gastos no Deducibles A continuación se enumeran algunos ejemplos de gastos no deducibles. How to file for self employment on taxes Luego, se explican en mayor detalle los gastos no deducibles adicionales. How to file for self employment on taxes Lista de Gastos no Deducibles Comisiones de agentes bursátiles que usted pagó con respecto a su arreglo IRA u otra propiedad de inversión. How to file for self employment on taxes Gastos de entierro o funeral, incluido el costo de la tumba. How to file for self employment on taxes Gastos de capital. How to file for self employment on taxes Cargos y licencias, como licencias de automóvil, de matrimonio y placas de identificación. How to file for self employment on taxes Pérdidas relacionadas con pasatiempos; no obstante, vea Gastos Relacionados con un Pasatiempo , anteriormente. How to file for self employment on taxes Reparaciones, seguro y alquiler de la vivienda. How to file for self employment on taxes Sobornos y comisiones clandestinas. How to file for self employment on taxes Vea Bribes and kickbacks (Sobornos y comisiones clandestinas) en el capítulo 11 de la Publicación 535, en inglés. How to file for self employment on taxes Pérdidas de la venta de su vivienda, mobiliario, automóvil personal, etc. How to file for self employment on taxes Primas de seguro personal por incapacidad. How to file for self employment on taxes Gastos personales, de vida o familiares. How to file for self employment on taxes Valor de salarios no recibidos o período de vacaciones no utilizadas. How to file for self employment on taxes Gastos de Adopción No puede deducir los gastos que incurre en la adopción de un niño, pero tal vez pueda tomar un crédito para esos gastos. How to file for self employment on taxes Vea el capítulo 36. How to file for self employment on taxes Gastos de Campaña Electoral No puede deducir gastos que un candidato para un cargo público incurre en su campaña electoral, incluso si el candidato está postulando para la reelección a dicho cargo. How to file for self employment on taxes Estos incluyen cargos de calificación e inscripción para las elecciones primarias. How to file for self employment on taxes Honorarios legales. How to file for self employment on taxes   No puede deducir honorarios legales que se pagan para defender cargos derivados de la participación en una campaña política. How to file for self employment on taxes Cargos por Emisión de Cheques de Cuenta Personal Si tiene una cuenta corriente personal, no puede deducir cargos cobrados por el banco por el privilegio de emitir cheques, incluso si la cuenta devenga intereses. How to file for self employment on taxes Cuotas de Clubes Por lo general, no puede deducir el costo de afiliación a un club organizado para fines comerciales, de placer, recreación u otro fin social. How to file for self employment on taxes Esto incluye clubes de negocios, sociales, atléticos, de almuerzo, deportivos, de aerolíneas, hoteles, golf y de campo. How to file for self employment on taxes No puede deducir cuotas pagadas a una organización si uno de los propósitos principales de ésta es: Realizar actividades sociales para los miembros o sus invitados u Ofrecer a los miembros o sus invitados acceso a establecimientos de actividades sociales. How to file for self employment on taxes No se pueden deducir las cuotas pagadas a aerolíneas, hoteles o clubes de almuerzo. How to file for self employment on taxes Gastos de Transporte entre su Domicilio y el Trabajo No puede deducir gastos de viaje de ida y vuelta al trabajo (el costo de su transporte entre su residencia y su lugar de trabajo principal o habitual). How to file for self employment on taxes Si transporta herramientas, instrumentos u otros artículos en su automóvil de ida y vuelta a su trabajo, puede deducir sólo el costo adicional de transporte de dichos artículos, como el alquiler de un remolque para el transporte de los mismos. How to file for self employment on taxes Multas o Sanciones No puede deducir multas o sanciones que pague a una oficina del gobierno por infringir una ley. How to file for self employment on taxes Esto incluye cantidades pagadas para liquidar su responsabilidad real o posible de una multa o sanción (civil o penal). How to file for self employment on taxes Las multas o sanciones incluyen multas de estacionamiento, sanciones tributarias y sanciones deducidas de su sueldo de maestro después de una huelga ilícita. How to file for self employment on taxes Gastos de Balnearios No puede deducir gastos de un balneario (spa), aun si existe un requisito laboral para mantenerse en excelente condición física, como podría ser el caso de un oficial encargado del orden público. How to file for self employment on taxes Sistema de Seguridad Residencial No puede deducir el costo de un sistema de seguridad residencial como una deducción miscelánea. How to file for self employment on taxes Sin embargo, tal vez pueda reclamar una deducción por un sistema de seguridad residencial como gasto de negocios, si es que tiene una oficina en su casa. How to file for self employment on taxes Vea Oficina en el Domicilio bajo Gastos del Empleado no Reembolsados, anteriormente, y Security System (Sistema de seguridad) bajo Deducting Expenses (Deducción de gastos) en la Publicación 587, en inglés. How to file for self employment on taxes Seminarios Relacionados con Inversiones No puede deducir gastos por asistir a una convención, seminario o reunión parecida para fines de inversión. How to file for self employment on taxes Primas de Seguro de Vida No puede deducir primas que pague por su propio seguro de vida. How to file for self employment on taxes Tal vez pueda deducir como pensión para el cónyuge divorciado primas que pague por las pólizas de seguro de vida asignadas a su ex-cónyuge. How to file for self employment on taxes Consulte el capítulo 18 para información sobre la pensión alimenticia. How to file for self employment on taxes Gastos de Cabildeo Por lo general, no puede deducir cantidades pagadas o incurridas por concepto de cabildeo. How to file for self employment on taxes Estos incluyen gastos para: Influenciar el proceso de legislación, Participar o intervenir en una campaña política a favor o en contra de un candidato a un cargo público, Intentar influenciar al público en general, o a un segmento del público, respecto a las elecciones, materias legislativas o referéndums o Comunicarse directamente con funcionarios del poder ejecutivo bajo protección en un intento de influenciar las acciones del funcionario o las opiniones del mismo. How to file for self employment on taxes Los gastos de cabildeo también incluyen cantidades pagadas o gastos en los que ha incurrido para la investigación, preparación, planificación o coordinación de cualquiera de estas actividades. How to file for self employment on taxes Cuotas usadas para cabildeo. How to file for self employment on taxes   Si una organización exenta de impuestos le notifica que esa parte de las cuotas u otras cantidades que usted paga a la organización se utilizan para pagar gastos de cabildeo no deducibles, no puede deducir esa parte de las cuotas. How to file for self employment on taxes Vea Lobbying Expenses (Gastos de cabildeo) en la Publicación 529, en inglés, para obtener información sobre las excepciones. How to file for self employment on taxes Dinero en Efectivo o Bienes Perdidos o Extraviados No puede deducir una pérdida basada en la simple desaparición de dinero o bienes. How to file for self employment on taxes Sin embargo, una pérdida o desaparición accidental de bienes puede considerarse hecho fortuito si es causada por un acontecimiento que se pueda identificar y que sea repentino, inesperado o poco común. How to file for self employment on taxes Vea el capítulo 25. How to file for self employment on taxes Ejemplo. How to file for self employment on taxes Se cierra una puerta de su automóvil accidentalmente en su mano y rompe el engaste de su anillo de diamante. How to file for self employment on taxes El diamante se cae del anillo y nunca lo pudo encontrar. How to file for self employment on taxes La pérdida del diamante es un hecho fortuito. How to file for self employment on taxes Almuerzos con Compañeros de Trabajo No puede deducir los gastos de almuerzos con compañeros de trabajo, excepto si viaja lejos de casa por razones comerciales. How to file for self employment on taxes Vea el capítulo 26 para obtener información acerca de los gastos deducibles mientras se encuentra lejos de su domicilio. How to file for self employment on taxes Comidas Cuando Trabaja Hasta Tarde No puede deducir el costo de comidas si trabaja hasta tarde. How to file for self employment on taxes Sin embargo, tal vez pueda declarar una deducción si el costo de las comidas es un gasto de entretenimiento deducible o si viaja lejos de casa. How to file for self employment on taxes Vea el capítulo 26 para obtener información sobre gastos de entretenimiento deducibles y gastos durante viajes lejos de su domicilio. How to file for self employment on taxes Gastos por Asuntos Legales Personales No puede deducir gastos por asuntos legales personales, como aquéllos en los que se ha incurrido en los siguientes casos: Tutoría de hijos. How to file for self employment on taxes Demanda por incumplimiento de promesa de matrimonio. How to file for self employment on taxes Cargos civiles o penales derivados de una relación personal. How to file for self employment on taxes Daños por lesiones personales, a excepción de ciertas reclamaciones por discriminación ilegal y por denuncia de actividades ilícitas en una empresa. How to file for self employment on taxes Preparación de un título (o defensa o perfeccionamiento de un título). How to file for self employment on taxes Preparación de un testamento. How to file for self employment on taxes Reclamaciones de propiedad o liquidación de propiedad en un divorcio. How to file for self employment on taxes No puede deducir estos gastos incluso si una consecuencia del proceso legal es la pérdida de propiedad que genera ingresos. How to file for self employment on taxes Donaciones Políticas No puede deducir donaciones hechas a un candidato político, un comité de campaña o un fondo para publicar boletines. How to file for self employment on taxes Los avisos publicitarios en programas de convenciones y entradas a cenas o programas que benefician a un partido o candidato político no son deducibles. How to file for self employment on taxes Costos de Acreditación Profesional No puede deducir costos de acreditación profesional tales como: Costos de certificado de contabilidad pagados para el derecho inicial de poder practicar la contabilidad. How to file for self employment on taxes Costos del examen para el ejercicio de la abogacía y gastos afines para asegurarse el ingreso inicial al colegio de abogados. How to file for self employment on taxes Costos de licencias médicas y dentales para obtener la primera licencia de ejercicio de la profesión. How to file for self employment on taxes Reputación Profesional No puede deducir gastos por salir en un programa de radio o televisión para aumentar su prestigio personal o establecer su reputación profesional. How to file for self employment on taxes Aportaciones a un Fondo de Ayuda Económica No puede deducir aportaciones pagadas a un plan privado que pague beneficios a los empleados cubiertos que no puedan trabajar debido a una lesión o enfermedad no relacionada con el trabajo. How to file for self employment on taxes Servicio Telefónico Residencial No puede deducir un cobro (incluidos impuestos) por un servicio telefónico local básico de la línea telefónica principal de su residencia, aun cuando se utilice en una ocupación o negocio. How to file for self employment on taxes Reuniones de Accionistas No puede deducir gastos de transporte ni otros que paga para asistir a reuniones de accionistas de empresas en las que tiene participación accionaria, pero no de otra índole. How to file for self employment on taxes No puede deducir estos gastos aunque asista a la reunión para obtener información que podría ser útil al efectuar otras inversiones. How to file for self employment on taxes Gastos de Ingresos Exentos de Impuestos No puede deducir gastos que incurre para generar ingresos exentos de impuestos. How to file for self employment on taxes No puede deducir intereses de una deuda en la que haya incurrido o continúa para comprar o portar valores exentos de impuestos. How to file for self employment on taxes Si usted incurre gastos para generar ingresos tributables y exentos de impuestos, pero no puede identificar los gastos que generan cada tipo de ingreso, tiene que dividir los gastos según la cantidad de cada tipo de ingreso para determinar la cantidad que puede deducir. How to file for self employment on taxes Ejemplo. How to file for self employment on taxes Durante el año recibió intereses tributables de $4,800 e intereses exentos de impuestos de $1,200. How to file for self employment on taxes Al obtener este ingreso, tuvo un total de gastos de $500 durante el año. How to file for self employment on taxes No puede identificar la cantidad de cada gasto correspondiente a cada ingreso. How to file for self employment on taxes Por lo tanto, el 80% ($4,800/$6,000) del gasto corresponde a los intereses tributables y el 20% ($1,200/$6,000) corresponde a los intereses exentos de impuestos. How to file for self employment on taxes Puede deducir, sujeto al límite del 2%, gastos de $400 (80% de $500). How to file for self employment on taxes Gastos de Viaje para Otra Persona Por lo general, no puede deducir los gastos de viaje que pague o en los que incurra para su cónyuge, dependiente, u otra persona que lo acompañe (o su empleado) en un viaje de negocios o por motivos personales, a menos que el cónyuge, el dependiente, o la otra persona sea un empleado del contribuyente; el viaje sea para un propósito comercial de buena fe (bona fide); y tales gastos serían de otra manera deducibles por el cónyuge, dependiente u otra persona. How to file for self employment on taxes Vea el capítulo 26 para más información sobre gastos de viaje deducibles. How to file for self employment on taxes Aportaciones Voluntarias al Fondo de Beneficios por Desempleo No puede deducir aportaciones voluntarias al fondo de beneficios por desempleo que usted realice a un fondo sindical o a un fondo privado. How to file for self employment on taxes Sin embargo, puede deducir las aportaciones como impuestos si la ley estatal le exige que las haga a un fondo de desempleo del estado que le protege de la pérdida de sueldos por desempleo causado por condiciones comerciales. How to file for self employment on taxes Relojes de Pulsera No puede deducir el costo de un reloj de pulsera, incluso si existe un requisito laboral que establezca que tiene que saber la hora correcta para realizar sus funciones de manera adecuada. How to file for self employment on taxes Prev  Up  Next   Home   More Online Publications
Español

National Health Information Center

NHIC is a health information referral service that links consumers and health professionals with organizations best able to provide answers to their health-related questions.

Contact the Agency or Department

Website: National Health Information Center

E-mail:

Address: 1101 Wooten Parkway, Suite LL100
Rockville, MD 20852

Phone Number: (240) 453-8280

The How To File For Self Employment On Taxes

How to file for self employment on taxes 7. How to file for self employment on taxes   Coverdell Education Savings Account (ESA) Table of Contents Introduction What Is a Coverdell ESAQualified Education Expenses ContributionsContribution Limits Additional Tax on Excess Contributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Transfer Because of Divorce DistributionsTax-Free Distributions Taxable Distributions When Assets Must Be Distributed Introduction If your modified adjusted gross income (MAGI) is less than $110,000 ($220,000 if filing a joint return), you may be able to establish a Coverdell ESA to finance the qualified education expenses of a designated beneficiary. How to file for self employment on taxes For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return. How to file for self employment on taxes There is no limit on the number of separate Coverdell ESAs that can be established for a designated beneficiary. How to file for self employment on taxes However, total contributions for the beneficiary in any year cannot be more than $2,000, no matter how many accounts have been established. How to file for self employment on taxes See Contributions , later. How to file for self employment on taxes This benefit applies not only to higher education expenses, but also to elementary and secondary education expenses. How to file for self employment on taxes What is the tax benefit of the Coverdell ESA. How to file for self employment on taxes   Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed. How to file for self employment on taxes   If, for a year, distributions from an account are not more than a designated beneficiary's qualified education expenses at an eligible educational institution, the beneficiary will not owe tax on the distributions. How to file for self employment on taxes See Tax-Free Distributions , later. How to file for self employment on taxes    Table 7-1 summarizes the main features of the Coverdell ESA. How to file for self employment on taxes Table 7-1. How to file for self employment on taxes Coverdell ESA at a Glance Do not rely on this table alone. How to file for self employment on taxes It provides only general highlights. How to file for self employment on taxes See the text for definitions of terms in bold type and for more complete explanations. How to file for self employment on taxes Question Answer What is a Coverdell ESA? A savings account that is set up to pay the qualified education expenses of a designated beneficiary. How to file for self employment on taxes Where can it be established? It can be opened in the United States at any bank or other IRS-approved entity that offers Coverdell ESAs. How to file for self employment on taxes Who can have a Coverdell ESA? Any beneficiary who is under age 18 or is a special needs beneficiary. How to file for self employment on taxes Who can contribute to a Coverdell ESA? Generally, any individual (including the beneficiary) whose modified adjusted gross income for the year is less than $110,000 ($220,000 in the case of a joint return). How to file for self employment on taxes Are distributions tax free? Yes, if the distributions are not more than the beneficiary's adjusted qualified education expenses for the year. How to file for self employment on taxes What Is a Coverdell ESA A Coverdell ESA is a trust or custodial account created or organized in the United States only for the purpose of paying the qualified education expenses of the Designated beneficiary (defined later) of the account. How to file for self employment on taxes When the account is established, the designated beneficiary must be under age 18 or a special needs beneficiary. How to file for self employment on taxes To be treated as a Coverdell ESA, the account must be designated as a Coverdell ESA when it is created. How to file for self employment on taxes The document creating and governing the account must be in writing and must satisfy the following requirements. How to file for self employment on taxes The trustee or custodian must be a bank or an entity approved by the IRS. How to file for self employment on taxes The document must provide that the trustee or custodian can only accept a contribution that meets all of the following conditions. How to file for self employment on taxes The contribution is in cash. How to file for self employment on taxes The contribution is made before the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. How to file for self employment on taxes The contribution would not result in total contributions for the year (not including rollover contributions) being more than $2,000. How to file for self employment on taxes Money in the account cannot be invested in life insurance contracts. How to file for self employment on taxes Money in the account cannot be combined with other property except in a common trust fund or common investment fund. How to file for self employment on taxes The balance in the account generally must be distributed within 30 days after the earlier of the following events. How to file for self employment on taxes The beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary. How to file for self employment on taxes The beneficiary's death. How to file for self employment on taxes Qualified Education Expenses Generally, these are expenses required for the enrollment or attendance of the designated beneficiary at an eligible educational institution. How to file for self employment on taxes For purposes of Coverdell ESAs, the expenses can be either qualified higher education expenses or qualified elementary and secondary education expenses. How to file for self employment on taxes Designated beneficiary. How to file for self employment on taxes   This is the individual named in the document creating the trust or custodial account to receive the benefit of the funds in the account. How to file for self employment on taxes Contributions to a qualified tuition program (QTP). How to file for self employment on taxes   A contribution to a QTP is a qualified education expense if the contribution is on behalf of the designated beneficiary of the Coverdell ESA. How to file for self employment on taxes In the case of a change in beneficiary, this is a qualified expense only if the new beneficiary is a family member of that designated beneficiary. How to file for self employment on taxes See chapter 8, Qualified Tuition Program . How to file for self employment on taxes Eligible Educational Institution For purposes of Coverdell ESAs, an eligible educational institution can be either an eligible postsecondary school or an eligible elementary or secondary school. How to file for self employment on taxes Eligible postsecondary school. How to file for self employment on taxes   This is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. How to file for self employment on taxes S. How to file for self employment on taxes Department of Education. How to file for self employment on taxes It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. How to file for self employment on taxes The educational institution should be able to tell you if it is an eligible educational institution. How to file for self employment on taxes   Certain educational institutions located outside the United States also participate in the U. How to file for self employment on taxes S. How to file for self employment on taxes Department of Education's Federal Student Aid (FSA) programs. How to file for self employment on taxes Eligible elementary or secondary school. How to file for self employment on taxes   This is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. How to file for self employment on taxes Qualified Higher Education Expenses These are expenses related to enrollment or attendance at an eligible postsecondary school. How to file for self employment on taxes As shown in the following list, to be qualified, some of the expenses must be required by the school and some must be incurred by students who are enrolled at least half-time. How to file for self employment on taxes The following expenses must be required for enrollment or attendance of a designated beneficiary at an eligible postsecondary school. How to file for self employment on taxes Tuition and fees. How to file for self employment on taxes Books, supplies, and equipment. How to file for self employment on taxes Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible postsecondary school. How to file for self employment on taxes Expenses for room and board must be incurred by students who are enrolled at least half-time (defined below). How to file for self employment on taxes The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. How to file for self employment on taxes The allowance for room and board, as determined by the school, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. How to file for self employment on taxes The actual amount charged if the student is residing in housing owned or operated by the school. How to file for self employment on taxes Half-time student. How to file for self employment on taxes   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic work load for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. How to file for self employment on taxes Qualified Elementary and Secondary Education Expenses These are expenses related to enrollment or attendance at an eligible elementary or secondary school. How to file for self employment on taxes As shown in the following list, to be qualified, some of the expenses must be required or provided by the school. How to file for self employment on taxes There are special rules for computer-related expenses. How to file for self employment on taxes The following expenses must be incurred by a designated beneficiary in connection with enrollment or attendance at an eligible elementary or secondary school. How to file for self employment on taxes Tuition and fees. How to file for self employment on taxes Books, supplies, and equipment. How to file for self employment on taxes Academic tutoring. How to file for self employment on taxes Special needs services for a special needs beneficiary. How to file for self employment on taxes The following expenses must be required or provided by an eligible elementary or secondary school in connection with attendance or enrollment at the school. How to file for self employment on taxes Room and board. How to file for self employment on taxes Uniforms. How to file for self employment on taxes Transportation. How to file for self employment on taxes Supplementary items and services (including extended day programs). How to file for self employment on taxes The purchase of computer technology, equipment, or Internet access and related services is a qualified elementary and secondary education expense if it is to be used by the beneficiary and the beneficiary's family during any of the years the beneficiary is in elementary or secondary school. How to file for self employment on taxes (This does not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature. How to file for self employment on taxes ) Contributions Any individual (including the designated beneficiary) can contribute to a Coverdell ESA if the individual's MAGI (defined later under Contribution Limits ) for the year is less than $110,000. How to file for self employment on taxes For individuals filing joint returns, that amount is $220,000. How to file for self employment on taxes Organizations, such as corporations and trusts, can also contribute to Coverdell ESAs. How to file for self employment on taxes There is no requirement that an organization's income be below a certain level. How to file for self employment on taxes Contributions must meet all of the following requirements. How to file for self employment on taxes They must be in cash. How to file for self employment on taxes They cannot be made after the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. How to file for self employment on taxes They must be made by the due date of the contributor's tax return (not including extensions). How to file for self employment on taxes Contributions can be made to one or several Coverdell ESAs for the same designated beneficiary provided that the total contributions are not more than the contribution limits (defined later) for a year. How to file for self employment on taxes Contributions can be made, without penalty, to both a Coverdell ESA and a QTP in the same year for the same beneficiary. How to file for self employment on taxes Table 7-2 summarizes many of the features of contributing to a Coverdell ESA. How to file for self employment on taxes When contributions considered made. How to file for self employment on taxes   Contributions made to a Coverdell ESA for the preceding tax year are considered to have been made on the last day of the preceding year. How to file for self employment on taxes They must be made by the due date (not including extensions) for filing your return for the preceding year. How to file for self employment on taxes   For example, if you make a contribution to a Coverdell ESA in February 2014, and you designate it as a contribution for 2013, you are considered to have made that contribution on December 31, 2013. How to file for self employment on taxes Contribution Limits There are two yearly limits: One on the total amount that can be contributed for each designated beneficiary in any year, and One on the amount that any individual can contribute for any one designated beneficiary for a year. How to file for self employment on taxes Limit for each designated beneficiary. How to file for self employment on taxes   For 2013, the total of all contributions to all Coverdell ESAs set up for the benefit of any one designated beneficiary cannot be more than $2,000. How to file for self employment on taxes This includes contributions (other than rollovers) to all the beneficiary's Coverdell ESAs from all sources. How to file for self employment on taxes Rollovers are discussed under Rollovers and Other Transfers , later. How to file for self employment on taxes Example. How to file for self employment on taxes When Maria Luna was born in 2012, three separate Coverdell ESAs were set up for her, one by her parents, one by her grandfather, and one by her aunt. How to file for self employment on taxes In 2013, the total of all contributions to Maria's three Coverdell ESAs cannot be more than $2,000. How to file for self employment on taxes For example, if her grandfather contributed $2,000 to one of her Coverdell ESAs, no one else could contribute to any of her three accounts. How to file for self employment on taxes Or, if her parents contributed $1,000 and her aunt $600, her grandfather or someone else could contribute no more than $400. How to file for self employment on taxes These contributions could be put into any of Maria's Coverdell ESA accounts. How to file for self employment on taxes Limit for each contributor. How to file for self employment on taxes   Generally, you can contribute up to $2,000 for each designated beneficiary for 2013. How to file for self employment on taxes This is the most you can contribute for the benefit of any one beneficiary for the year, regardless of the number of Coverdell ESAs set up for the beneficiary. How to file for self employment on taxes Example. How to file for self employment on taxes The facts are the same as in the previous example except that Maria Luna's older brother, Edgar, also has a Coverdell ESA. How to file for self employment on taxes If their grandfather contributed $2,000 to Maria's Coverdell ESA in 2013, he could also contribute $2,000 to Edgar's Coverdell ESA. How to file for self employment on taxes Reduced limit. How to file for self employment on taxes   Your contribution limit may be reduced. How to file for self employment on taxes If your MAGI (defined on this page) is between $95,000 and $110,000 (between $190,000 and $220,000 if filing a joint return), the $2,000 limit for each designated beneficiary is gradually reduced (see Figuring the limit , later). How to file for self employment on taxes If your MAGI is $110,000 or more ($220,000 or more if filing a joint return), you cannot contribute to anyone's Coverdell ESA. How to file for self employment on taxes Table 7-2. How to file for self employment on taxes Coverdell ESA Contributions at a Glance Do not rely on this table alone. How to file for self employment on taxes It provides only general highlights. How to file for self employment on taxes See the text for more complete explanations. How to file for self employment on taxes Question Answer Are contributions deductible? No. How to file for self employment on taxes What is the annual contribution limit per designated beneficiary? $2,000 for each designated beneficiary. How to file for self employment on taxes What if more than one Coverdell ESA has been opened for the same designated beneficiary? The annual contribution limit is $2,000 for each beneficiary, no matter how many Coverdell ESAs are set up for that beneficiary. How to file for self employment on taxes What if more than one individual makes contributions for the same designated beneficiary? The annual contribution limit is $2,000 per beneficiary, no matter how many individuals contribute. How to file for self employment on taxes Can contributions other than cash be made to a Coverdell ESA? No. How to file for self employment on taxes When must contributions stop? No contributions can be made to a beneficiary's Coverdell ESA after he or she reaches age 18, unless the beneficiary is a special needs beneficiary. How to file for self employment on taxes Modified adjusted gross income (MAGI). How to file for self employment on taxes   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. How to file for self employment on taxes MAGI when using Form 1040A. How to file for self employment on taxes   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. How to file for self employment on taxes MAGI when using Form 1040. How to file for self employment on taxes   If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. How to file for self employment on taxes MAGI when using Form 1040NR. How to file for self employment on taxes   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form. How to file for self employment on taxes MAGI when using Form 1040NR-EZ. How to file for self employment on taxes   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form. How to file for self employment on taxes   If you have any of these adjustments, you can use Worksheet 7-1. How to file for self employment on taxes MAGI for a Coverdell ESA , later, to figure your MAGI for Form 1040. How to file for self employment on taxes Worksheet 7-1. How to file for self employment on taxes MAGI for a Coverdell ESA 1. How to file for self employment on taxes Enter your adjusted gross income  (Form 1040, line 38)   1. How to file for self employment on taxes   2. How to file for self employment on taxes Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. How to file for self employment on taxes       3. How to file for self employment on taxes Enter your foreign housing deduction (Form 2555, line 50)   3. How to file for self employment on taxes         4. How to file for self employment on taxes Enter the amount of income from Puerto Rico you are excluding   4. How to file for self employment on taxes       5. How to file for self employment on taxes Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. How to file for self employment on taxes       6. How to file for self employment on taxes Add lines 2, 3, 4, and 5   6. How to file for self employment on taxes   7. How to file for self employment on taxes Add lines 1 and 6. How to file for self employment on taxes This is your  modified adjusted gross income   7. How to file for self employment on taxes   Figuring the limit. How to file for self employment on taxes    To figure the limit on the amount you can contribute for each designated beneficiary, multiply $2,000 by a fraction. How to file for self employment on taxes The numerator (top number) is your MAGI minus $95,000 ($190,000 if filing a joint return). How to file for self employment on taxes The denominator (bottom number) is $15,000 ($30,000 if filing a joint return). How to file for self employment on taxes Subtract the result from $2,000. How to file for self employment on taxes This is the amount you can contribute for each beneficiary. How to file for self employment on taxes You can use Worksheet 7-2. How to file for self employment on taxes Coverdell ESA Contribution Limit to figure the limit on contributions. How to file for self employment on taxes    Worksheet 7-2. How to file for self employment on taxes Coverdell ESA Contribution Limit 1. How to file for self employment on taxes Maximum contribution   1. How to file for self employment on taxes $2,000 2. How to file for self employment on taxes Enter your modified adjusted gross income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. How to file for self employment on taxes   3. How to file for self employment on taxes Enter $190,000 if married filing jointly; $95,000 for all other filers   3. How to file for self employment on taxes   4. How to file for self employment on taxes Subtract line 3 from line 2. How to file for self employment on taxes If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. How to file for self employment on taxes   5. How to file for self employment on taxes Enter $30,000 if married filing jointly; $15,000 for all other filers   5. How to file for self employment on taxes     Note. How to file for self employment on taxes If the amount on line 4 is greater than or equal to the amount on line 5, stop here. How to file for self employment on taxes You are not allowed to contribute to a Coverdell ESA for 2013. How to file for self employment on taxes       6. How to file for self employment on taxes Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. How to file for self employment on taxes . How to file for self employment on taxes 7. How to file for self employment on taxes Multiply line 1 by line 6   7. How to file for self employment on taxes   8. How to file for self employment on taxes Subtract line 7 from line 1   8. How to file for self employment on taxes   Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. How to file for self employment on taxes Example. How to file for self employment on taxes Paul, who is single, had a MAGI of $96,500 for 2013. How to file for self employment on taxes Paul can contribute up to $1,800 in 2013 for each beneficiary, as shown in the illustrated Worksheet 7-2, Coverdell ESA Contribution Limit–Illustrated. How to file for self employment on taxes Worksheet 7-2. How to file for self employment on taxes Coverdell ESA Contribution Limit—Illustrated 1. How to file for self employment on taxes Maximum contribution   1. How to file for self employment on taxes $2,000 2. How to file for self employment on taxes Enter your modified adjusted gross  income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. How to file for self employment on taxes 96,500 3. How to file for self employment on taxes Enter $190,000 if married filing jointly; $95,000 for all other filers   3. How to file for self employment on taxes 95,000 4. How to file for self employment on taxes Subtract line 3 from line 2. How to file for self employment on taxes If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. How to file for self employment on taxes 1,500 5. How to file for self employment on taxes Enter $30,000 if married filing jointly; $15,000 for all other filers   5. How to file for self employment on taxes 15,000   Note. How to file for self employment on taxes If the amount on line 4 is greater than or equal to the amount on line 5,  stop here. How to file for self employment on taxes You are not allowed to  contribute to a Coverdell ESA for 2013. How to file for self employment on taxes       6. How to file for self employment on taxes Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. How to file for self employment on taxes . How to file for self employment on taxes 100 7. How to file for self employment on taxes Multiply line 1 by line 6   7. How to file for self employment on taxes 200 8. How to file for self employment on taxes Subtract line 7 from line 1   8. How to file for self employment on taxes 1,800 Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. How to file for self employment on taxes Additional Tax on Excess Contributions The beneficiary must pay a 6% excise tax each year on excess contributions that are in a Coverdell ESA at the end of the year. How to file for self employment on taxes Excess contributions are the total of the following two amounts. How to file for self employment on taxes Contributions to any designated beneficiary's Coverdell ESA for the year that are more than $2,000 (or, if less, the total of each contributor's limit for the year, as discussed earlier). How to file for self employment on taxes Excess contributions for the preceding year, reduced by the total of the following two amounts: Distributions (other than those rolled over as discussed later) during the year, and The contribution limit for the current year minus the amount contributed for the current year. How to file for self employment on taxes Exceptions. How to file for self employment on taxes   The excise tax does not apply if excess contributions made during 2013 (and any earnings on them) are distributed before the first day of the sixth month of the following tax year (June 1, 2014, for a calendar year taxpayer). How to file for self employment on taxes   However, you must include the distributed earnings in gross income for the year in which the excess contribution was made. How to file for self employment on taxes You should receive Form 1099-Q, Payments From Qualified Education Programs, from each institution from which excess contributions were distributed. How to file for self employment on taxes Box 2 of that form will show the amount of earnings on your excess contributions. How to file for self employment on taxes Code “2” or “3” entered in the blank box below boxes 5 and 6 indicate the year in which the earnings are taxable. How to file for self employment on taxes See Instructions for Recipient on the back of copy B of your Form 1099-Q. How to file for self employment on taxes Enter the amount of earnings on line 21 of Form 1040 (or Form 1040NR) for the applicable tax year. How to file for self employment on taxes For more information, see Taxable Distributions , later. How to file for self employment on taxes   The excise tax does not apply to any rollover contribution. How to file for self employment on taxes Note. How to file for self employment on taxes Contributions made in one year for the preceding tax year are considered to have been made on the last day of the preceding year. How to file for self employment on taxes Example. How to file for self employment on taxes In 2012, Greta's parents and grandparents contributed a total of $2,300 to Greta's Coverdell ESA— an excess contribution of $300. How to file for self employment on taxes Because Greta did not withdraw the excess before June 1, 2013, she had to pay an additional tax of $18 (6% × $300) when she filed her 2012 tax return. How to file for self employment on taxes In 2013, excess contributions of $500 were made to Greta's account, however, she withdrew $250 from that account to use for qualified education expenses. How to file for self employment on taxes Using the steps shown earlier under Additional Tax on Excess Contributions , Greta figures the excess contribution in her account at the end of 2013 as follows. How to file for self employment on taxes (1)   $500 excess contributions made in 2013     + (2)   $300 excess contributions in ESA at end of 2012     − (2a)   $250 distribution during 2013         $550 excess at end of 2013   × 6%=$33           If Greta limits 2014 contributions to $1,450 ($2,000 maximum allowed − $550 excess contributions from 2013), she will not owe any additional tax in 2014 for excess contributions. How to file for self employment on taxes Figuring and reporting the additional tax. How to file for self employment on taxes   You figure this excise tax in Part V of Form 5329. How to file for self employment on taxes Report the additional tax on Form 1040, line 58 (or Form 1040NR, line 56). How to file for self employment on taxes Rollovers and Other Transfers Assets can be rolled over from one Coverdell ESA to another or the designated beneficiary can be changed. How to file for self employment on taxes The beneficiary's interest can be transferred to a spouse or former spouse because of divorce. How to file for self employment on taxes Rollovers Any amount distributed from a Coverdell ESA is not taxable if it is rolled over to another Coverdell ESA for the benefit of the same beneficiary or a member of the beneficiary's family (including the beneficiary's spouse) who is under age 30. How to file for self employment on taxes This age limitation does not apply if the new beneficiary is a special needs beneficiary. How to file for self employment on taxes An amount is rolled over if it is paid to another Coverdell ESA within 60 days after the date of the distribution. How to file for self employment on taxes Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. How to file for self employment on taxes These are not taxable distributions. How to file for self employment on taxes Members of the beneficiary's family. How to file for self employment on taxes   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. How to file for self employment on taxes Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. How to file for self employment on taxes Brother, sister, stepbrother, or stepsister. How to file for self employment on taxes Father or mother or ancestor of either. How to file for self employment on taxes Stepfather or stepmother. How to file for self employment on taxes Son or daughter of a brother or sister. How to file for self employment on taxes Brother or sister of father or mother. How to file for self employment on taxes Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. How to file for self employment on taxes The spouse of any individual listed above. How to file for self employment on taxes First cousin. How to file for self employment on taxes Example. How to file for self employment on taxes When Aaron graduated from college last year he had $5,000 left in his Coverdell ESA. How to file for self employment on taxes He wanted to give this money to his younger sister, who was still in high school. How to file for self employment on taxes In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his sister's Coverdell ESA within 60 days of the distribution. How to file for self employment on taxes Only one rollover per Coverdell ESA is allowed during the 12-month period ending on the date of the payment or distribution. How to file for self employment on taxes This rule does not apply to the rollover of a military death gratuity or payment from Servicemembers' Group Life Insurance (SGLI). How to file for self employment on taxes Military death gratuity. How to file for self employment on taxes   If you received a military death gratuity or a payment from Servicemembers' Group Life Insurance (SGLI), you may roll over all or part of the amount received to one or more Coverdell ESAs for the benefit of members of the beneficiary's family (see Members of the beneficiary's family , earlier). How to file for self employment on taxes Such payments are made to an eligible survivor upon the death of a member of the armed forces. How to file for self employment on taxes The contribution to a Coverdell ESA from survivor benefits received cannot be made later than 1 year after the date on which you receive the gratuity or SGLI payment. How to file for self employment on taxes   This rollover contribution is not subject to (but is in addition to) the contribution limits discussed earlier under Contribution Limits . How to file for self employment on taxes The amount you roll over cannot exceed the total survivor benefits you received, reduced by contributions from these benefits to a Roth IRA or other Coverdell ESAs. How to file for self employment on taxes   The amount contributed from the survivor benefits is treated as part of your basis (cost) in the Coverdell ESA, and will not be taxed when distributed. How to file for self employment on taxes See Distributions , later. How to file for self employment on taxes The limit of one rollover per Coverdell ESA during a 12-month period does not apply to a military death gratuity or SGLI payment. How to file for self employment on taxes Changing the Designated Beneficiary The designated beneficiary can be changed. How to file for self employment on taxes See Members of the beneficiary's family , earlier. How to file for self employment on taxes There are no tax consequences if, at the time of the change, the new beneficiary is under age 30 or is a special needs beneficiary. How to file for self employment on taxes Example. How to file for self employment on taxes Assume the same situation for Aaron as in the last example (see Rollovers , earlier). How to file for self employment on taxes Instead of closing his Coverdell ESA and paying the distribution into his sister's Coverdell ESA, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his sister. How to file for self employment on taxes Transfer Because of Divorce If a spouse or former spouse receives a Coverdell ESA under a divorce or separation instrument, it is not a taxable transfer. How to file for self employment on taxes After the transfer, the spouse or former spouse treats the Coverdell ESA as his or her own. How to file for self employment on taxes Example. How to file for self employment on taxes In their divorce settlement, Peg received her ex-husband's Coverdell ESA. How to file for self employment on taxes In this process, the account was transferred into her name. How to file for self employment on taxes Peg now treats the funds in this Coverdell ESA as if she were the original owner. How to file for self employment on taxes Distributions The designated beneficiary of a Coverdell ESA can take a distribution at any time. How to file for self employment on taxes Whether the distributions are tax free depends, in part, on whether the distributions are equal to or less than the amount of Adjusted qualified education expenses (defined later) that the beneficiary has in the same tax year. How to file for self employment on taxes See Table 7-3, Coverdell ESA Distributions at a Glance, for highlights. How to file for self employment on taxes Table 7-3. How to file for self employment on taxes Coverdell ESA Distributions at a Glance Do not rely on this table alone. How to file for self employment on taxes It provides only general highlights. How to file for self employment on taxes See the text for definitions of terms in bold type and for more complete explanations. How to file for self employment on taxes Question Answer Is a distribution from a Coverdell ESA to pay for a designated beneficiary's qualified education expenses tax free? Generally, yes, to the extent the amount of the distribution is not more than the designated beneficiary's adjusted qualified education expenses. How to file for self employment on taxes After the designated beneficiary completes his or her education at an eligible educational institution, can amounts remaining in the Coverdell ESA be distributed? Yes. How to file for self employment on taxes Amounts must be distributed when the designated beneficiary reaches age 30, unless he or she is a special needs beneficiary. How to file for self employment on taxes Also, certain transfers to members of the beneficiary's family are permitted. How to file for self employment on taxes Does the designated beneficiary need to be enrolled for a minimum number of courses to take a tax-free distribution? No. How to file for self employment on taxes Adjusted qualified education expenses. How to file for self employment on taxes   To determine if total distributions for the year are more than the amount of qualified education expenses, reduce total qualified education expenses by any tax-free educational assistance. How to file for self employment on taxes Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. How to file for self employment on taxes The amount you get by subtracting tax-free educational assistance from your total qualified education expenses is your adjusted qualified education expenses. How to file for self employment on taxes Tax-Free Distributions Generally, distributions are tax free if they are not more than the beneficiary's adjusted qualified education expenses for the year. How to file for self employment on taxes Do not report tax-free distributions (including qualifying rollovers) on your tax return. How to file for self employment on taxes Taxable Distributions A portion of the distributions is generally taxable to the beneficiary if the total distributions are more than the beneficiary's adjusted qualified education expenses for the year. How to file for self employment on taxes Excess distribution. How to file for self employment on taxes   This is the part of the total distribution that is more than the beneficiary's adjusted qualified education expenses for the year. How to file for self employment on taxes Earnings and basis. How to file for self employment on taxes   You will receive a Form 1099-Q for each of the Coverdell ESAs from which money was distributed in 2013. How to file for self employment on taxes The amount of your gross distribution will be shown in box 1. How to file for self employment on taxes For 2013, instead of dividing the gross distribution between your earnings (box 2) and your basis (already-taxed amount) (box 3), the payer or trustee may report the fair market value (account balance) of the Coverdell ESA as of December 31, 2013. How to file for self employment on taxes This will be shown in the blank box below boxes 5 and 6. How to file for self employment on taxes   The amount contributed from survivor benefits (see Military death gratuity , earlier) is treated as part of your basis and will not be taxed when distributed. How to file for self employment on taxes Figuring the Taxable Portion of a Distribution The taxable portion is the amount of the excess distribution that represents earnings that have accumulated tax free in the account. How to file for self employment on taxes Figure the taxable portion for 2013 as shown in the following steps. How to file for self employment on taxes Multiply the total amount distributed by a fraction. How to file for self employment on taxes The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the value (balance) of the account at the end of 2013 plus the amount distributed during 2013. How to file for self employment on taxes Subtract the amount figured in (1) from the total amount distributed during 2013. How to file for self employment on taxes The result is the amount of earnings included in the distribution(s). How to file for self employment on taxes Multiply the amount of earnings figured in (2) by a fraction. How to file for self employment on taxes The numerator is the adjusted qualified education expenses paid during 2013 and the denominator is the total amount distributed during 2013. How to file for self employment on taxes Subtract the amount figured in (3) from the amount figured in (2). How to file for self employment on taxes The result is the amount the beneficiary must include in income. How to file for self employment on taxes The taxable amount must be reported on Form 1040 or Form 1040NR, line 21. How to file for self employment on taxes Example. How to file for self employment on taxes You received an $850 distribution from your Coverdell ESA, to which $1,500 had been contributed before 2013. How to file for self employment on taxes There were no contributions in 2013. How to file for self employment on taxes This is your first distribution from the account, so your basis in the account on December 31, 2012, was $1,500. How to file for self employment on taxes The value (balance) of your account on December 31, 2013, was $950. How to file for self employment on taxes You had $700 of adjusted qualified education expenses (AQEE) for the year. How to file for self employment on taxes Using the steps in Figuring the Taxable Portion of a Distribution , earlier, figure the taxable portion of your distribution as follows. How to file for self employment on taxes   1. How to file for self employment on taxes $850 (distribution) × $1,500 basis + $0 contributions  $950 value + $850 distribution       =$708 (basis portion of distribution)     2. How to file for self employment on taxes $850 (distribution)−$708 (basis portion of distribution)     =$142 (earnings included in distribution)   3. How to file for self employment on taxes $142 (earnings) × $700 AQEE  $850 distribution           =$117 (tax-free earnings)     4. How to file for self employment on taxes $142 (earnings)−$117 (tax-free earnings)=$25 (taxable earnings)                 You must include $25 in income as distributed earnings not used for qualified education expenses. How to file for self employment on taxes Report this amount on Form 1040, line 21, listing the type and amount of income on the dotted line. How to file for self employment on taxes Worksheet 7-3, Coverdell ESA–Taxable Distributions and Basis , at the end of this chapter, can help you figure your adjusted qualified education expenses, how much of your distribution must be included in income, and the remaining basis in your Coverdell ESA(s). How to file for self employment on taxes Coordination With American Opportunity and Lifetime Learning Credits The American opportunity or lifetime learning credit can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA, as long as the same expenses are not used for both benefits. How to file for self employment on taxes This means the beneficiary must reduce qualified higher education expenses by tax-free educational assistance, and then further reduce them by any expenses taken into account in determining an American opportunity or lifetime learning credit. How to file for self employment on taxes Example. How to file for self employment on taxes Derek Green had $5,800 of qualified higher education expenses for 2013, his first year in college. How to file for self employment on taxes He paid his college expenses from the following sources. How to file for self employment on taxes     Partial tuition scholarship (tax free) $1,500     Coverdell ESA distribution 1,000     Gift from parents 2,100     Earnings from part-time job 1,200           Of his $5,800 of qualified higher education expenses, $4,000 was tuition and related expenses that also qualified for an American opportunity credit. How to file for self employment on taxes Derek's parents claimed a $2,500 American opportunity credit (based on $4,000 expenses) on their tax return. How to file for self employment on taxes Before Derek can determine the taxable portion of his Coverdell ESA distribution, he must reduce his total qualified higher education expenses. How to file for self employment on taxes     Total qualified higher education expenses $5,800     Minus: Tax-free educational assistance −1,500     Minus: Expenses taken into account in  figuring American opportunity credit − 4,000     Equals: Adjusted qualified higher education  expenses (AQHEE) $ 300           Since the adjusted qualified higher education expenses ($300) are less than the Coverdell ESA distribution ($1,000), part of the distribution will be taxable. How to file for self employment on taxes The balance in Derek's account was $1,800 on December 31, 2013. How to file for self employment on taxes Prior to 2013, $2,100 had been contributed to this account. How to file for self employment on taxes Contributions for 2013 totaled $400. How to file for self employment on taxes Using the four steps outlined earlier, Derek figures the taxable portion of his distribution as shown below. How to file for self employment on taxes   1. How to file for self employment on taxes $1,000 (distribution) × $2,100 basis + $400 contributions  $1,800 value + $1,000 distribution           =$893 (basis portion of distribution)     2. How to file for self employment on taxes $1,000 (distribution)−$893 (basis portion of distribution)     = $107 (earnings included in distribution)   3. How to file for self employment on taxes $107 (earnings) × $300 AQHEE  $1,000 distribution       =$32 (tax-free earnings)     4. How to file for self employment on taxes $107 (earnings)−$32 (tax-free earnings)=$75 (taxable earnings)                 Derek must include $75 in income (Form 1040, line 21). How to file for self employment on taxes This is the amount of distributed earnings not used for adjusted qualified higher education expenses. How to file for self employment on taxes Coordination With Qualified Tuition Program (QTP) Distributions If a designated beneficiary receives distributions from both a Coverdell ESA and a QTP in the same year, and the total distribution is more than the beneficiary's adjusted qualified higher education expenses, those expenses must be allocated between the distribution from the Coverdell ESA and the distribution from the QTP before figuring how much of each distribution is taxable. How to file for self employment on taxes The following two examples illustrate possible allocations. How to file for self employment on taxes Example 1. How to file for self employment on taxes In 2013, Beatrice graduated from high school and began her first semester of college. How to file for self employment on taxes That year, she had $1,000 of qualified elementary and secondary education expenses (QESEE) for high school and $3,000 of qualified higher education expenses (QHEE) for college. How to file for self employment on taxes To pay these expenses, Beatrice withdrew $800 from her Coverdell ESA and $4,200 from her QTP. How to file for self employment on taxes No one claimed Beatrice as a dependent, nor was she eligible for an education credit. How to file for self employment on taxes She did not receive any tax-free educational assistance in 2013. How to file for self employment on taxes Beatrice must allocate her total qualified education expenses between the two distributions. How to file for self employment on taxes Beatrice knows that tax-free treatment will be available if she applies her $800 Coverdell ESA distribution toward her $1,000 of qualified education expenses for high school. How to file for self employment on taxes The qualified expenses are greater than the distribution, making the $800 Coverdell ESA distribution tax free. How to file for self employment on taxes Next, Beatrice matches her $4,200 QTP distribution to her $3,000 of QHEE, and finds she has an excess QTP distribution of $1,200 ($4,200 QTP − $3,000 QHEE). How to file for self employment on taxes She cannot use the extra $200 of high school expenses (from (1) above) against the QTP distribution because those expenses do not qualify a QTP for tax-free treatment. How to file for self employment on taxes Finally, Beatrice figures the taxable and tax-free portions of her QTP distribution based on her $3,000 of QHEE. How to file for self employment on taxes (See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program for more information. How to file for self employment on taxes ) Example 2. How to file for self employment on taxes Assume the same facts as in Example 1 , except that Beatrice withdrew $1,800 from her Coverdell ESA and $3,200 from her QTP. How to file for self employment on taxes In this case, she allocates her qualified education expenses as follows. How to file for self employment on taxes Using the same reasoning as in Example 1, Beatrice matches $1,000 of her Coverdell ESA distribution to her $1,000 of QESEE—she has $800 of her distribution remaining. How to file for self employment on taxes Because higher education expenses can also qualify a Coverdell ESA distribution for tax-free treatment, Beatrice allocates her $3,000 of QHEE between the remaining $800 Coverdell ESA and the $3,200 QTP distributions ($4,000 total). How to file for self employment on taxes   $3,000 QHEE × $800 ESA distribution  $4,000 total distribution = $600 QHEE (ESA)     $3,000 QHEE × $3,200 QTP distribution  $4,000 total distribution = $2,400 QHEE (QTP)   Beatrice then figures the taxable part of her: Coverdell ESA distribution based on qualified education expenses of $1,600 ($1,000 QESEE + $600 QHEE). How to file for self employment on taxes See Figuring the Taxable Portion of a Distribution , earlier, in this chapter. How to file for self employment on taxes   QTP distribution based on her $2,400 of QHEE (see Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program). How to file for self employment on taxes The above examples show two types of allocation between distributions from a Coverdell ESA and a QTP. How to file for self employment on taxes However, you do not have to allocate your expenses in the same way. How to file for self employment on taxes You can use any reasonable method. How to file for self employment on taxes Losses on Coverdell ESA Investments If you have a loss on your investment in a Coverdell ESA, you may be able to deduct the loss on your income tax return. How to file for self employment on taxes You can deduct the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. How to file for self employment on taxes Your basis is the total amount of contributions to that Coverdell ESA. How to file for self employment on taxes You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23 (Schedule A (Form 1040NR), line 9), subject to the 2%-of-adjusted-gross-income limit. How to file for self employment on taxes If you have distributions from more than one Coverdell ESA account during a year, you must combine the information (amount of distribution, basis, etc. How to file for self employment on taxes ) from all such accounts in order to determine your taxable earnings for the year. How to file for self employment on taxes By doing this, the loss from one ESA account reduces the distributed earnings (if any) from any other ESA account. How to file for self employment on taxes For examples of the calculation, see Losses on QTP Investments in chapter 8, Qualified Tuition Program. How to file for self employment on taxes Additional Tax on Taxable Distributions Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income. How to file for self employment on taxes Exceptions. How to file for self employment on taxes   The 10% additional tax does not apply to distributions: Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary. How to file for self employment on taxes Made because the designated beneficiary is disabled. How to file for self employment on taxes A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. How to file for self employment on taxes A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration. How to file for self employment on taxes Included in income because the designated beneficiary received: A tax-free scholarship or fellowship (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), or Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. How to file for self employment on taxes Made on account of the attendance of the designated beneficiary at a U. How to file for self employment on taxes S. How to file for self employment on taxes military academy (such as the USMA at West Point). How to file for self employment on taxes This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(d)(3) of title 10 of the U. How to file for self employment on taxes S. How to file for self employment on taxes Code) attributable to such attendance. How to file for self employment on taxes Included in income only because the qualified education expenses were taken into account in determining the American opportunity or lifetime learning credit (see Coordination With American Opportunity and Lifetime Learning Credits , earlier). How to file for self employment on taxes Made before June 1, 2014, of an excess 2013 contribution (and any earnings on it). How to file for self employment on taxes The distributed earnings must be included in gross income for the year in which the excess contribution was made. How to file for self employment on taxes Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. How to file for self employment on taxes Figuring the additional tax. How to file for self employment on taxes    Use Part II of Form 5329, to figure any additional tax. How to file for self employment on taxes Report the amount on Form 1040, line 58, or Form 1040NR, line 56. How to file for self employment on taxes When Assets Must Be Distributed Any assets remaining in a Coverdell ESA must be distributed when either one of the following two events occurs. How to file for self employment on taxes The designated beneficiary reaches age 30. How to file for self employment on taxes In this case, the remaining assets must be distributed within 30 days after the beneficiary reaches age 30. How to file for self employment on taxes However, this rule does not apply if the beneficiary is a special needs beneficiary. How to file for self employment on taxes The designated beneficiary dies before reaching age 30. How to file for self employment on taxes In this case, the remaining assets must generally be distributed within 30 days after the date of death. How to file for self employment on taxes Exception for Transfer to Surviving Spouse or Family Member If a Coverdell ESA is transferred to a surviving spouse or other family member as the result of the death of the designated beneficiary, the Coverdell ESA retains its status. How to file for self employment on taxes (“Family member” was defined earlier under Rollovers . How to file for self employment on taxes ) This means the spouse or other family member can treat the Coverdell ESA as his or her own and does not need to withdraw the assets until he or she reaches age 30. How to file for self employment on taxes This age limitation does not apply if the new beneficiary is a special needs beneficiary. How to file for self employment on taxes There are no tax consequences as a result of the transfer. How to file for self employment on taxes How To Figure the Taxable Earnings When a total distribution is made because the designated beneficiary either reached age 30 or died, the earnings that accumulated tax free in the account must be included in taxable income. How to file for self employment on taxes You determine these earnings as shown in the following two steps. How to file for self employment on taxes Multiply the amount distributed by a fraction. How to file for self employment on taxes The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the balance in the account at the end of 2013 plus the amount distributed during 2013. How to file for self employment on taxes Subtract the amount figured in (1) from the total amount distributed during 2013. How to file for self employment on taxes The result is the amount of earnings included in the distribution. How to file for self employment on taxes For an example, see steps (1) and (2) of the Example under Figuring the Taxable Portion of a Distribution, earlier. How to file for self employment on taxes The beneficiary or other person receiving the distribution must report this amount on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line. How to file for self employment on taxes Worksheet 7-3 Instructions. How to file for self employment on taxes Coverdell ESA—Taxable Distributions and Basis Line G. How to file for self employment on taxes Enter the total distributions received from all Coverdell ESAs during 2013. How to file for self employment on taxes Do not include amounts rolled over to another ESA within 60 days (only one rollover is allowed during any 12-month period). How to file for self employment on taxes Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year for which the contributions were made. How to file for self employment on taxes Line 2. How to file for self employment on taxes Your basis (amount already taxed) in this Coverdell ESA as of December 31, 2012, is the total of:   •All contributions to this Coverdell ESA before 2013 •Minus the tax-free portion of any distributions from this Coverdell ESA before 2013. How to file for self employment on taxes   If your last distribution from this Coverdell ESA was before 2013, you must start with the basis in your account as of the end of the last year in which you took a distribution. How to file for self employment on taxes For years before 2002, you can find that amount on the last line of the worksheet in the Instructions for Form 8606, Nondeductible IRAs, that you completed for that year. How to file for self employment on taxes For years after 2001, you can find that amount by using the ending basis from the worksheet in Publication 970 for that year. How to file for self employment on taxes You can determine your basis in this Coverdell ESA as of December 31, 2012, by adding to the basis as of the end of that year any contributions made to that account after the year of the distribution and before 2013. How to file for self employment on taxes Line 4. How to file for self employment on taxes Enter the total distributions received from this Coverdell ESA in 2013. How to file for self employment on taxes Do not include amounts rolled over to another Coverdell ESA within 60 days (only one rollover is allowed during any 12-month period). How to file for self employment on taxes   Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year of the contributions. How to file for self employment on taxes Line 7. How to file for self employment on taxes Enter the total value of this Coverdell ESA as of December 31, 2013, plus any outstanding rollovers contributed to the account after 2012, but before the end of the 60-day rollover period. How to file for self employment on taxes A statement should be sent to you by January 31, 2014, for this Coverdell ESA showing the value on December 31, 2013. How to file for self employment on taxes   A rollover is a tax-free withdrawal from one Coverdell ESA that is contributed to another Coverdell ESA. How to file for self employment on taxes An outstanding rollover is any amount withdrawn within 60 days before the end of 2013 (November 2 through December 31) that was rolled over after December 31, 2013, but within the 60-day rollover period. How to file for self employment on taxes Worksheet 7-3. How to file for self employment on taxes Coverdell ESA—Taxable Distributions and Basis How to complete this worksheet. How to file for self employment on taxes • • • Complete Part I, lines A through H, on only one worksheet. How to file for self employment on taxes  Complete a separate Part II, lines 1 through 15, for each of your Coverdell ESAs. How to file for self employment on taxes  Complete Part III, the Summary (line 16), on only one worksheet. How to file for self employment on taxes Part I. How to file for self employment on taxes Qualified Education Expenses (Complete for total expenses)       A. How to file for self employment on taxes Enter your total qualified education expenses for 2013   A. How to file for self employment on taxes   B. How to file for self employment on taxes Enter those qualified education expenses paid for with tax-free educational assistance (for example, tax-free scholarships, veterans' educational benefits, Pell grants, employer-provided educational assistance)   B. How to file for self employment on taxes         C. How to file for self employment on taxes Enter those qualified higher education expenses deducted on Schedule C or C-EZ (Form 1040). How to file for self employment on taxes Schedule F (Form 1040), or as a miscellaneous itemized deduction on Schedule A (Form 1040 or 1040NR)   C. How to file for self employment on taxes         D. How to file for self employment on taxes Enter those qualified higher education expenses on which  an American opportunity or lifetime learning credit was based   D. How to file for self employment on taxes         E. How to file for self employment on taxes Add lines B, C, and D   D. How to file for self employment on taxes   F. How to file for self employment on taxes Subtract line E from line A. How to file for self employment on taxes This is your adjusted qualified education expense for 2013   E. How to file for self employment on taxes   G. How to file for self employment on taxes Enter your total distributions from all Coverdell ESAs during 2013. How to file for self employment on taxes Do not include rollovers  or the return of excess contributions (see instructions)   F. How to file for self employment on taxes   H. How to file for self employment on taxes Divide line F by line G. How to file for self employment on taxes Enter the result as a decimal (rounded to at least 3 places). How to file for self employment on taxes If the  result is 1. How to file for self employment on taxes 000 or more, enter 1. How to file for self employment on taxes 000   G. How to file for self employment on taxes . How to file for self employment on taxes Part II. How to file for self employment on taxes Taxable Distributions and Basis (Complete separately for each account) 1. How to file for self employment on taxes Enter the amount contributed to this Coverdell ESA for 2013, including contributions made for 2013 from January 1, 2014, through April 15, 2014. How to file for self employment on taxes Do not include rollovers or the return of excess contributions   1. How to file for self employment on taxes   2. How to file for self employment on taxes Enter your basis in this Coverdell ESA as of December 31, 2012 (see instructions)   2. How to file for self employment on taxes   3. How to file for self employment on taxes Add lines 1 and 2   3. How to file for self employment on taxes   4. How to file for self employment on taxes Enter the total distributions from this Coverdell ESA during 2013. How to file for self employment on taxes Do not include rollovers  or the return of excess contributions (see instructions)   4. How to file for self employment on taxes   5. How to file for self employment on taxes Multiply line 4 by line H. How to file for self employment on taxes This is the amount of adjusted qualified  education expense attributable to this Coverdell ESA   5. How to file for self employment on taxes         6. How to file for self employment on taxes Subtract line 5 from line 4   6. How to file for self employment on taxes         7. How to file for self employment on taxes Enter the total value of this Coverdell ESA as of December 31, 2013,  plus any outstanding rollovers (see instructions)   7. How to file for self employment on taxes         8. How to file for self employment on taxes Add lines 4 and 7   8. How to file for self employment on taxes         9. How to file for self employment on taxes Divide line 3 by line 8. How to file for self employment on taxes Enter the result as a decimal (rounded to  at least 3 places). How to file for self employment on taxes If the result is 1. How to file for self employment on taxes 000 or more, enter 1. How to file for self employment on taxes 000   9. How to file for self employment on taxes . How to file for self employment on taxes       10. How to file for self employment on taxes Multiply line 4 by line 9. How to file for self employment on taxes This is the amount of basis allocated to your  distributions, and is tax free   10. How to file for self employment on taxes     Note. How to file for self employment on taxes If line 6 is zero, skip lines 11 through 13, enter -0- on line 14, and go to line 15. How to file for self employment on taxes       11. How to file for self employment on taxes Subtract line 10 from line 4   11. How to file for self employment on taxes   12. How to file for self employment on taxes Divide line 5 by line 4. How to file for self employment on taxes Enter the result as a decimal (rounded to  at least 3 places). How to file for self employment on taxes If the result is 1. How to file for self employment on taxes 000 or more, enter 1. How to file for self employment on taxes 000   12. How to file for self employment on taxes . How to file for self employment on taxes       13. How to file for self employment on taxes Multiply line 11 by line 12. How to file for self employment on taxes This is the amount of qualified education  expenses allocated to your distributions, and is tax free   13. How to file for self employment on taxes   14. How to file for self employment on taxes Subtract line 13 from line 11. How to file for self employment on taxes This is the portion of the distributions from this  Coverdell ESA in 2013 that you must include in income   14. How to file for self employment on taxes   15. How to file for self employment on taxes Subtract line 10 from line 3. How to file for self employment on taxes This is your basis in this Coverdell ESA as of December 31, 2013   15. How to file for self employment on taxes   Part III. How to file for self employment on taxes Summary (Complete only once)       16. How to file for self employment on taxes Taxable amount. How to file for self employment on taxes Add together all amounts on line 14 for all your Coverdell ESAs. How to file for self employment on taxes Enter here  and include on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line   16. How to file for self employment on taxes   Prev  Up  Next   Home   More Online Publications