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Irs E File 2011

Irs 2012 Tax FormH&r Block For MilitaryDo I Amend Tax ReturnH&r Block State ReturnNeed To File State Taxes OnlyHow To File State And Federal Taxes For FreeWhere To Do State Taxes Free OnlineIrs Tax Forms 2007Amending 2012 Tax ReturnPrepare 2011 TaxesTax Returns 2011Tax Act 2008Irs Amendment Form Instructions2009 Turbotax DownloadFree Tax Filing For Low IncomeFile Tax Extension Electronically For FreeFree Turbo Tax Filing 2013Mypay DfasFree Tax Usa 2010Federal Income Tax Forms 1040ezFiling Taxes LateFile Amended Tax Return FreeMypay Dfas Mil MypayFree 1040 Tax ReturnWhere Can I Get A State Tax FormAmending My Tax Return2011 Tax FormsTaxes Due 2012Efile 1040x OnlineLast Day To File Taxes 2013Do I File My My Taxes 2010College Student TaxesFree Irs Tax Filing 2012H&rblockTurbotax 1040ez1040x Forms OnlineMilitary Filing State TaxesIrs Form 1040File 2006 Tax ReturnEfile State Taxes

Irs E File 2011

Irs e file 2011 Publication 521 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. Irs e file 2011 Tax questions. Irs e file 2011 Useful Items - You may want to see: What's New Standard mileage rate. Irs e file 2011  For 2013, the standard mileage rate for using your vehicle to move to a new home is 24 cents per mile. Irs e file 2011 See Travel by car under Deductible Moving Expenses. Irs e file 2011 Reminders Future developments. Irs e file 2011  For the latest information about developments related to Publication 521, such as legislation enacted after it was published, go to www. Irs e file 2011 irs. Irs e file 2011 gov/pub521. Irs e file 2011 Change of address. Irs e file 2011  If you change your mailing address, be sure to notify the IRS using Form 8822, Change of Address. Irs e file 2011 Mail it to the Internal Revenue Service Center for your old address. Irs e file 2011 Addresses for the service centers are on the back of the form. Irs e file 2011 If you change your business address or the identity of your responsible party, use Form 8822-B, Change of Address or Responsible Party—Business. Irs e file 2011 Photographs of missing children. Irs e file 2011  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Irs e file 2011 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Irs e file 2011 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Irs e file 2011 Introduction This publication explains the deduction of certain expenses of moving to a new home because you changed job locations or started a new job. Irs e file 2011 It includes the following topics. Irs e file 2011 Who can deduct moving expenses. Irs e file 2011 What moving expenses are deductible. Irs e file 2011 What moving expenses are not deductible. Irs e file 2011 How a reimbursement affects your moving expense deduction. Irs e file 2011 How and when to report moving expenses. Irs e file 2011 Special rules for members of the Armed Forces. Irs e file 2011 Form 3903, Moving Expenses, is used to claim the moving expense deduction. Irs e file 2011 An example of how to report your moving expenses, including a filled-in Form 3903, is shown near the end of the publication. Irs e file 2011 You may be able to deduct moving expenses whether you are self-employed or an employee. Irs e file 2011 Your expenses generally must be related to starting work at your new job location. Irs e file 2011 However, certain retirees and survivors may qualify to claim the deduction even though they are not starting work at a new job location. Irs e file 2011 See Who Can Deduct Moving Expenses. Irs e file 2011 Recordkeeping. Irs e file 2011    It is important to maintain an accurate record of expenses you paid to move. Irs e file 2011 You should save items such as receipts, bills, cancelled checks, credit card statements, and mileage logs. Irs e file 2011 Also, you should save your Form W-2 and statements of reimbursement from your employer. Irs e file 2011 Comments and suggestions. Irs e file 2011   We welcome your comments about this publication and your suggestions for future editions. Irs e file 2011   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Irs e file 2011 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Irs e file 2011 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs e file 2011   You can send your comments from www. Irs e file 2011 irs. Irs e file 2011 gov/formspubs/. Irs e file 2011 Click on “More Information” and then on “Comment on Tax Forms and Publications”. Irs e file 2011   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Irs e file 2011 Ordering forms and publications. Irs e file 2011   Visit www. Irs e file 2011 irs. Irs e file 2011 gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Irs e file 2011 Internal Revenue Service 1201 N. Irs e file 2011 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Irs e file 2011   If you have a tax question, check the information available on IRS. Irs e file 2011 gov or call 1-800-829-1040. Irs e file 2011 We cannot answer tax questions sent to either of the above addresses. Irs e file 2011 Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide Forms (and Instructions) 1040 U. Irs e file 2011 S. Irs e file 2011 Individual Income Tax Return 1040X Amended U. Irs e file 2011 S. Irs e file 2011 Individual Income Tax Return 3903 Moving Expenses 8822 Change of Address 8822–B Change of Address or Responsible Party-Business See How To Get Tax Help, near the end of this publication, for information about getting the publications and the forms listed above. Irs e file 2011 Prev  Up  Next   Home   More Online Publications
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1099-K Reporting Requirements for Payment Settlement Entities

Beginning in January, 2012, payment settlement entities (PSEs) are required by the Housing Assistance Tax Act of 2008 to report on Form 1099-K the following transactions:

  • All payments made in settlement of payment card transactions (e.g., credit card);
  • Payments in settlement of third party network transactions IF:
    -Gross payments to a participating payee exceed $20,000; AND
    -There are more than 200 transactions with the participating payee.

Filing Deadlines & Procedures

Your 1099-Ks are due to merchants by January 31, 2014. Electronically filed 1099-Ks are due to the IRS April 1, 2014 (normally March 31), while paper 1099-Ks are due February 28, 2014.

File your 1099-K electronically through the FIRE (Filing Information Returns Electronically) option. For information, review Publication 1220 (PDF). If you are considering filing on paper, review General Instructions for Certain Information Returns.

Verification Processes

We verify that tax returns are correct and complete using the following processes:

More Information

You can find more about the 1099-K and other information returns at our Third Party Reporting Information Center.

You may also want to see Frequently Asked Question about Backup Withholding

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Page Last Reviewed or Updated: 20-Mar-2014

The Irs E File 2011

Irs e file 2011 4. Irs e file 2011   Student Loan Interest Deduction Table of Contents Introduction Student Loan Interest DefinedQualified Student Loan Qualified Education Expenses Include As Interest Do Not Include As Interest When Must Interest Be Paid Can You Claim the DeductionNo Double Benefit Allowed Figuring the DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Which Worksheet To Use Claiming the Deduction Introduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. Irs e file 2011 However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. Irs e file 2011 For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. Irs e file 2011 This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. Irs e file 2011 The student loan interest deduction is taken as an adjustment to income. Irs e file 2011 This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). Irs e file 2011 This chapter explains: What type of loan interest you can deduct, Whether you can claim the deduction, What expenses you must have paid with the student loan, Who is an eligible student, How to figure the deduction, and How to claim the deduction. Irs e file 2011 Table 4-1. Irs e file 2011 Student Loan Interest Deduction at a Glance This table summarizes the features of the student loan interest deduction. Irs e file 2011 Do not rely on this table alone. Irs e file 2011 Refer to the text for complete details. Irs e file 2011 Feature   Description Maximum benefit   You can reduce your income subject to tax by up to $2,500. Irs e file 2011 Loan qualifications   Your student loan: •must have been taken out solely to pay qualified education expenses, and •cannot be from a related person or made under a qualified employer plan. Irs e file 2011 Student qualifications   The student must be: •you, your spouse, or your dependent, and  •enrolled at least half-time in a degree program. Irs e file 2011 Time limit on deduction   You can deduct interest paid during the remaining period of your student loan. Irs e file 2011 Limit on modified adjusted gross income (MAGI)   $155,000 if married filing a joint return; $75,000 if single, head of household, or qualifying widow(er). Irs e file 2011 Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. Irs e file 2011 It includes both required and voluntary interest payments. Irs e file 2011 Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period for an eligible student. Irs e file 2011 Loans from the following sources are not qualified student loans. Irs e file 2011 A related person. Irs e file 2011 A qualified employer plan. Irs e file 2011 Your dependent. Irs e file 2011   Generally, your dependent is someone who is either a: Qualifying child, or Qualifying relative. Irs e file 2011 You can find more information about dependents in Publication 501. Irs e file 2011 Exceptions. Irs e file 2011   For purposes of the student loan interest deduction, there are the following exceptions to the general rules for dependents. Irs e file 2011 An individual can be your dependent even if you are the dependent of another taxpayer. Irs e file 2011 An individual can be your dependent even if the individual files a joint return with a spouse. Irs e file 2011 An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). Irs e file 2011 Reasonable period of time. Irs e file 2011   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. Irs e file 2011   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. Irs e file 2011 The expenses relate to a specific academic period, and The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. Irs e file 2011   If neither of the above situations applies, the reasonable period of time usually is determined based on all the relevant facts and circumstances. Irs e file 2011 Academic period. Irs e file 2011   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Irs e file 2011 In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Irs e file 2011 Eligible student. Irs e file 2011   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Irs e file 2011 Enrolled at least half-time. Irs e file 2011   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. Irs e file 2011   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Irs e file 2011 However, the standard may not be lower than any of those established by the U. Irs e file 2011 S. Irs e file 2011 Department of Education under the Higher Education Act of 1965. Irs e file 2011 Related person. Irs e file 2011   You cannot deduct interest on a loan you get from a related person. Irs e file 2011 Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. Irs e file 2011 ), Your lineal descendants (children, grandchildren, etc. Irs e file 2011 ), and Certain corporations, partnerships, trusts, and exempt organizations. Irs e file 2011 Qualified employer plan. Irs e file 2011   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. Irs e file 2011 Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. Irs e file 2011 They include amounts paid for the following items. Irs e file 2011 Tuition and fees. Irs e file 2011 Room and board. Irs e file 2011 Books, supplies, and equipment. Irs e file 2011 Other necessary expenses (such as transportation). Irs e file 2011 The cost of room and board qualifies only to the extent that it is not more than the greater of: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Irs e file 2011 Eligible educational institution. Irs e file 2011   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Irs e file 2011 S. Irs e file 2011 Department of Education. Irs e file 2011 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Irs e file 2011   Certain educational institutions located outside the United States also participate in the U. Irs e file 2011 S. Irs e file 2011 Department of Education's Federal Student Aid (FSA) programs. Irs e file 2011   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. Irs e file 2011   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. Irs e file 2011 The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. Irs e file 2011    The educational institution should be able to tell you if it is an eligible educational institution. Irs e file 2011 Adjustments to Qualified Education Expenses You must reduce your qualified education expenses by the total amount paid for them with the following tax-free items. Irs e file 2011 Employer-provided educational assistance. Irs e file 2011 See chapter 11, Employer-Provided Educational Assistance . Irs e file 2011 Tax-free distribution of earnings from a Coverdell education savings account (ESA). Irs e file 2011 See Tax-Free Distributions in chapter 7, Coverdell Education Savings Account. Irs e file 2011 Tax-free distribution of earnings from a qualified tuition program (QTP). Irs e file 2011 See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program. Irs e file 2011 U. Irs e file 2011 S. Irs e file 2011 savings bond interest that you exclude from income because it is used to pay qualified education expenses. Irs e file 2011 See chapter 10, Education Savings Bond Program . Irs e file 2011 The tax-free part of scholarships and fellowships. Irs e file 2011 See Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Irs e file 2011 Veterans' educational assistance. Irs e file 2011 See Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Irs e file 2011 Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Irs e file 2011 Include As Interest In addition to simple interest on the loan, if all other requirements are met, the items discussed below can be student loan interest. Irs e file 2011 Loan origination fee. Irs e file 2011   In general, this is a one-time fee charged by the lender when a loan is made. Irs e file 2011 To be deductible as interest, a loan origination fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. Irs e file 2011 A loan origination fee treated as interest accrues over the term of the loan. Irs e file 2011   Loan origination fees were not required to be reported on Form 1098-E, Student Loan Interest Statement, for loans made before September 1, 2004. Irs e file 2011 If loan origination fees are not included in the amount reported on your Form 1098-E, you can use any reasonable method to allocate the loan origination fees over the term of the loan. Irs e file 2011 The method shown in the example below allocates equal portions of the loan origination fee to each payment required under the terms of the loan. Irs e file 2011 A method that results in the double deduction of the same portion of a loan origination fee would not be reasonable. Irs e file 2011 Example. Irs e file 2011 In August 2004, Bill took out a student loan for $16,000 to pay the tuition for his senior year of college. Irs e file 2011 The lender charged a 3% loan origination fee ($480) that was withheld from the funds Bill received. Irs e file 2011 Bill began making payments on his student loan in 2013. Irs e file 2011 Because the loan origination fee was not included in his 2013 Form 1098-E, Bill can use any reasonable method to allocate that fee over the term of the loan. Irs e file 2011 Bill's loan is payable in 120 equal monthly payments. Irs e file 2011 He allocates the $480 fee equally over the total number of payments ($480 ÷ 120 months = $4 per month). Irs e file 2011 Bill made 7 payments in 2013, so he paid $28 ($4 × 7) of interest attributable to the loan origination fee. Irs e file 2011 To determine his student loan interest deduction, he will add the $28 to the amount of other interest reported to him on Form 1098-E. Irs e file 2011 Capitalized interest. Irs e file 2011   This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. Irs e file 2011 Capitalized interest is treated as interest for tax purposes and is deductible as payments of principal are made on the loan. Irs e file 2011 No deduction for capitalized interest is allowed in a year in which no loan payments were made. Irs e file 2011 Interest on revolving lines of credit. Irs e file 2011   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. Irs e file 2011 See Qualified Education Expenses , earlier. Irs e file 2011 Interest on refinanced student loans. Irs e file 2011   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. Irs e file 2011    If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. Irs e file 2011 Voluntary interest payments. Irs e file 2011   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. Irs e file 2011 Example. Irs e file 2011 The payments on Roger's student loan were scheduled to begin in June 2012, 6 months after he graduated from college. Irs e file 2011 He began making payments as required. Irs e file 2011 In September 2013, Roger enrolled in graduate school on a full-time basis. Irs e file 2011 He applied for and was granted deferment of his loan payments while in graduate school. Irs e file 2011 Wanting to pay down his student loan as much as possible, he made loan payments in October and November 2013. Irs e file 2011 Even though these were voluntary (not required) payments, Roger can deduct the interest paid in October and November. Irs e file 2011 Allocating Payments Between Interest and Principal The allocation of payments between interest and principal for tax purposes might not be the same as the allocation shown on the Form 1098-E or other statement you receive from the lender or loan servicer. Irs e file 2011 To make the allocation for tax purposes, a payment generally applies first to stated interest that remains unpaid as of the date the payment is due, second to any loan origination fees allocable to the payment, third to any capitalized interest that remains unpaid as of the date the payment is due, and fourth to the outstanding principal. Irs e file 2011 Example. Irs e file 2011 In August 2012, Peg took out a $10,000 student loan to pay the tuition for her senior year of college. Irs e file 2011 The lender charged a 3% loan origination fee ($300) that was withheld from the funds Peg received. Irs e file 2011 The interest (5% simple) on this loan accrued while she completed her senior year and for 6 months after she graduated. Irs e file 2011 At the end of that period, the lender determined the amount to be repaid by capitalizing all accrued but unpaid interest ($625 interest accrued from August 2012 through October 2013) and adding it to the outstanding principal balance of the loan. Irs e file 2011 The loan is payable over 60 months, with a payment of $200. Irs e file 2011 51 due on the first of each month, beginning November 2013. Irs e file 2011 Peg did not receive a Form 1098-E for 2013 from her lender because the amount of interest she paid did not require the lender to issue an information return. Irs e file 2011 However, she did receive an account statement from the lender that showed the following 2013 payments on her outstanding loan of $10,625 ($10,000 principal + $625 accrued but unpaid interest). Irs e file 2011 Payment Date   Payment   Stated Interest   Principal November 2013   $200. Irs e file 2011 51   $44. Irs e file 2011 27   $156. Irs e file 2011 24 December 2013   $200. Irs e file 2011 51   $43. Irs e file 2011 62   $156. Irs e file 2011 89 Totals   $401. Irs e file 2011 02   $87. Irs e file 2011 89   $313. Irs e file 2011 13 To determine the amount of interest that could be deducted on the loan for 2013, Peg starts with the total amount of stated interest she paid, $87. Irs e file 2011 89. Irs e file 2011 Next, she allocates the loan origination fee over the term of the loan ($300 ÷ 60 months = $5 per month). Irs e file 2011 A total of $10 ($5 of each of the two principal payments) should be treated as interest for tax purposes. Irs e file 2011 Peg then applies the unpaid capitalized interest ($625) to the two principal payments in the order in which they were made, and determines that the remaining amount of principal of both payments is treated as interest for tax purposes. Irs e file 2011 Assuming that Peg qualifies to take the student loan interest deduction, she can deduct $401. Irs e file 2011 02 ($87. Irs e file 2011 89 + $10 + $303. Irs e file 2011 13). Irs e file 2011 For 2014, Peg will continue to allocate $5 of the loan origination fee to the principal portion of each monthly payment she makes and treat that amount as interest for tax purposes. Irs e file 2011 She also will apply the remaining amount of capitalized interest ($625 − $303. Irs e file 2011 13 = $321. Irs e file 2011 87) to the principal payments in the order in which they are made until the balance is zero, and treat those amounts as interest for tax purposes. Irs e file 2011 Do Not Include As Interest You cannot claim a student loan interest deduction for any of the following items. Irs e file 2011 Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. Irs e file 2011 Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. Irs e file 2011 Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. Irs e file 2011 For more information, see Student Loan Repayment Assistance in chapter 5, Student Loan Cancellations and Repayment Assistance. Irs e file 2011 When Must Interest Be Paid You can deduct all interest you paid during the year on your student loan, including voluntary payments, until the loan is paid off. Irs e file 2011 Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. Irs e file 2011 Your filing status is any filing status except married filing separately. Irs e file 2011 No one else is claiming an exemption for you on his or her tax return. Irs e file 2011 You are legally obligated to pay interest on a qualified student loan. Irs e file 2011 You paid interest on a qualified student loan. Irs e file 2011 Claiming an exemption for you. Irs e file 2011   Another taxpayer is claiming an exemption for you if he or she lists your name and other required information on his or her Form 1040 (or Form 1040A), line 6c, or Form 1040NR, line 7c. Irs e file 2011 Example 1. Irs e file 2011 During 2013, Josh paid $600 interest on his qualified student loan. Irs e file 2011 Only he is legally obligated to make the payments. Irs e file 2011 No one claimed an exemption for Josh for 2013. Irs e file 2011 Assuming all other requirements are met, Josh can deduct the $600 of interest he paid on his 2013 Form 1040 or 1040A. Irs e file 2011 Example 2. Irs e file 2011 During 2013, Jo paid $1,100 interest on her qualified student loan. Irs e file 2011 Only she is legally obligated to make the payments. Irs e file 2011 Jo's parents claimed an exemption for her on their 2013 tax return. Irs e file 2011 In this case, neither Jo nor her parents may deduct the student loan interest Jo paid in 2013. Irs e file 2011 Interest paid by others. Irs e file 2011   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. Irs e file 2011 Example 1. Irs e file 2011 Darla obtained a qualified student loan to attend college. Irs e file 2011 After Darla's graduation from college, she worked as an intern for a nonprofit organization. Irs e file 2011 As part of the internship program, the nonprofit organization made an interest payment on behalf of Darla. Irs e file 2011 This payment was treated as additional compensation and reported in box 1 of her Form W-2. Irs e file 2011 Assuming all other qualifications are met, Darla can deduct this payment of interest on her tax return. Irs e file 2011 Example 2. Irs e file 2011 Ethan obtained a qualified student loan to attend college. Irs e file 2011 After graduating from college, the first monthly payment on his loan was due in December. Irs e file 2011 As a gift, Ethan's mother made this payment for him. Irs e file 2011 No one is claiming a dependency exemption for Ethan on his or her tax return. Irs e file 2011 Assuming all other qualifications are met, Ethan can deduct this payment of interest on his tax return. Irs e file 2011 No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, as home mortgage interest). Irs e file 2011 Figuring the Deduction Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. Irs e file 2011 However, the amount determined above may be gradually reduced (phased out) or eliminated based on your filing status and MAGI as explained below. Irs e file 2011 You can use Worksheet 4-1. Irs e file 2011 Student Loan Interest Deduction Worksheet (at the end of this chapter) to figure both your MAGI and your deduction. Irs e file 2011 Form 1098-E. Irs e file 2011   To help you figure your student loan interest deduction, you should receive Form 1098-E. Irs e file 2011 Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. Irs e file 2011   For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. Irs e file 2011 Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. Irs e file 2011 However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. Irs e file 2011 See Allocating Payments Between Interest and Principal , earlier. Irs e file 2011    The lender may ask for a completed Form W-9S, or similar statement to obtain the borrower's name, address, and taxpayer identification number. Irs e file 2011 The form may also be used by the borrower to certify that the student loan was incurred solely to pay for qualified education expenses. Irs e file 2011 Effect of the Amount of Your Income on the Amount of Your Deduction The amount of your student loan interest deduction is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). Irs e file 2011 You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). Irs e file 2011 Modified adjusted gross income (MAGI). Irs e file 2011   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for student loan interest. Irs e file 2011 However, as discussed below, there may be other modifications. Irs e file 2011 Table 4-2 shows how the amount of your MAGI can affect your student loan interest deduction. Irs e file 2011 Table 4-2. Irs e file 2011 Effect of MAGI on Student Loan Interest Deduction IF your filing status is. Irs e file 2011 . Irs e file 2011 . Irs e file 2011 AND your MAGI is. Irs e file 2011 . Irs e file 2011 . Irs e file 2011 THEN your student loan interest deduction is. Irs e file 2011 . Irs e file 2011 . Irs e file 2011 single,  head of household, or qualifying widow(er) not more than $60,000 not affected by the phaseout. Irs e file 2011 more than $60,000  but less than $75,000 reduced because of the phaseout. Irs e file 2011 $75,000 or more eliminated by the phaseout. Irs e file 2011 married filing joint return not more than $125,000 not affected by the phaseout. Irs e file 2011 more than $125,000 but less than $155,000 reduced because of the phaseout. Irs e file 2011 $155,000 or more eliminated by the phaseout. Irs e file 2011 MAGI when using Form 1040A. Irs e file 2011   If you file Form 1040A, your MAGI is the AGI on line 22 of that form figured without taking into account any amount on line 18 (student loan interest deduction) and line 19 (tuition and fees deduction). Irs e file 2011 MAGI when using Form 1040. Irs e file 2011   If you file Form 1040, your MAGI is the AGI on line 38 of that form figured without taking into account any amount on line 33 (student loan interest deduction), line 34 (tuition and fees deduction), or line 35 (domestic production activities deduction), and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Irs e file 2011 MAGI when using Form 1040NR. Irs e file 2011   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form figured without taking into account any amount on line 33 (student loan interest deduction) and line 34 (domestic production activities deduction). Irs e file 2011 MAGI when using Form 1040NR-EZ. Irs e file 2011   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form figured without taking into account any amount on line 9 (student loan interest deduction). Irs e file 2011 Phaseout. Irs e file 2011   If your MAGI is within the range of incomes where the credit must be reduced, you must figure your reduced deduction. Irs e file 2011 To figure the phaseout, multiply your interest deduction (before the phaseout) by a fraction. Irs e file 2011 The numerator is your MAGI minus $60,000 ($125,000 in the case of a joint return). Irs e file 2011 The denominator is $15,000 ($30,000 in the case of a joint return). Irs e file 2011 Subtract the result from your deduction (before the phaseout) to give you the amount you can deduct. Irs e file 2011 Example 1. Irs e file 2011 During 2013 you paid $800 interest on a qualified student loan. Irs e file 2011 Your 2013 MAGI is $145,000 and you are filing a joint return. Irs e file 2011 You must reduce your deduction by $533, figured as follows. Irs e file 2011   $800 × $145,000 − $125,000  $30,000 = $533   Your reduced student loan interest deduction is $267 ($800 − $533). Irs e file 2011 Example 2. Irs e file 2011 The facts are the same as in Example 1 except that you paid $2,750 interest. Irs e file 2011 Your maximum deduction for 2013 is $2,500. Irs e file 2011 You must reduce your maximum deduction by $1,667, figured as follows. Irs e file 2011   $2,500 × $145,000 − $125,000  $30,000 = $1,667   In this example, your reduced student loan interest deduction is $833 ($2,500 − $1,667). Irs e file 2011 Which Worksheet To Use Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR. Irs e file 2011 However, if you are filing Form 2555, Foreign Earned Income, Form 2555-EZ, Foreign Earned Income Exclusion, or Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1. Irs e file 2011 Student Loan Interest Deduction Worksheet at the end of this chapter. Irs e file 2011 Claiming the Deduction The student loan interest deduction is an adjustment to income. Irs e file 2011 To claim the deduction, enter the allowable amount on line 33 (Form 1040), line 18 (Form 1040A), line 33 (Form 1040NR), or line 9 (Form 1040NR-EZ). Irs e file 2011 Worksheet 4-1. Irs e file 2011 Student Loan Interest Deduction Worksheet Use this worksheet instead of the worksheet in the Form 1040 instructions if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. Irs e file 2011 Before using this worksheet, you must complete Form 1040, lines 7 through 32, plus any amount to be entered on the dotted line next to line 36. Irs e file 2011 1. Irs e file 2011 Enter the total interest you paid in 2013 on qualified student loans. Irs e file 2011 Do not enter  more than $2,500 1. Irs e file 2011   2. Irs e file 2011 Enter the amount from Form 1040, line 22 2. Irs e file 2011       3. Irs e file 2011 Enter the total of the amounts from Form 1040,  lines 23 through 32 3. Irs e file 2011           4. Irs e file 2011 Enter the total of any amounts entered on the dotted line next to Form 1040, line 36 4. Irs e file 2011           5. Irs e file 2011 Add lines 3 and 4 5. Irs e file 2011       6. Irs e file 2011 Subtract line 5 from line 2 6. Irs e file 2011       7. Irs e file 2011 Enter any foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18) 7. Irs e file 2011       8. Irs e file 2011 Enter any foreign housing deduction (Form 2555, line 50) 8. Irs e file 2011       9. Irs e file 2011 Enter the amount of income from Puerto Rico you are excluding 9. Irs e file 2011       10. Irs e file 2011 Enter the amount of income from American Samoa  you are excluding (Form 4563, line 15) 10. Irs e file 2011       11. Irs e file 2011 Add lines 6 through 10. Irs e file 2011 This is your modified adjusted gross income 11. Irs e file 2011   12. Irs e file 2011 Enter the amount shown below for your filing status 12. Irs e file 2011     •Single, head of household, or qualifying widow(er)—$60,000       •Married filing jointly—$125,000     13. Irs e file 2011 Is the amount on line 11 more than the amount on line 12?       □ No. Irs e file 2011 Skip lines 13 and 14, enter -0- on line 15, and go to line 16. Irs e file 2011       □ Yes. Irs e file 2011 Subtract line 12 from line 11 13. Irs e file 2011   14. Irs e file 2011 Divide line 13 by $15,000 ($30,000 if married filing jointly). Irs e file 2011 Enter the result as a decimal  (rounded to at least three places). Irs e file 2011 If the result is 1. Irs e file 2011 000 or more, enter 1. Irs e file 2011 000 14. Irs e file 2011 . Irs e file 2011 15. Irs e file 2011 Multiply line 1 by line 14 15. Irs e file 2011   16. Irs e file 2011 Student loan interest deduction. Irs e file 2011 Subtract line 15 from line 1. Irs e file 2011 Enter the result here  and on Form 1040, line 33. Irs e file 2011 Do not include this amount in figuring any other  deduction on your return (such as on Schedule A, C, E, etc. Irs e file 2011 ) 16. Irs e file 2011   Prev  Up  Next   Home   More Online Publications