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Tax 1040ez

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Tax 1040ez

Tax 1040ez Index A Actividades Pasivas , Requisito 6 —Tiene que tener ingresos de inversiones de $3,300 o menos Adopción, hijo de, Hijo adoptivo. Tax 1040ez Anexos C, Empleado estatutario. Tax 1040ez , Hoja de Trabajo B del Crédito por Ingreso del Trabajo. Tax 1040ez C-EZ, Empleado estatutario. Tax 1040ez , Hoja de Trabajo B del Crédito por Ingreso del Trabajo. Tax 1040ez EIC, Se acerca el plazo para la presentación de la declaración y aún no tiene un número de Seguro Social. Tax 1040ez , Anexo EIC SE, Miembro del clero. Tax 1040ez , Hoja de Trabajo B del Crédito por Ingreso del Trabajo. Tax 1040ez Anualidades, Cálculo del ingreso del trabajo. Tax 1040ez Asignación básica para el sustento (BAS), Paga militar no tributable. Tax 1040ez Asignación básica para la vivienda (BAH), Paga militar no tributable. Tax 1040ez Asistente EITC , ¿Hay Ayuda Disponible en Internet? Ayuda tributaria (see Impuestos, ayuda con) B Beneficios a los veteranos, Ingresos que no se Consideran Ingresos del Trabajo Beneficios de bienestar social, Ingresos que no se Consideran Ingresos del Trabajo Beneficios de la jubilación ferroviaria, Ingresos que no se Consideran Ingresos del Trabajo Beneficios del Seguro Social, Ingresos que no se Consideran Ingresos del Trabajo Beneficios por desempleo, Ingresos que no se Consideran Ingresos del Trabajo Beneficios por Incapacidad, Beneficios por Incapacidad Beneficios sindicales por huelga, Beneficios sindicales por huelga. Tax 1040ez Bienes gananciales, Bienes gananciales. Tax 1040ez , Bienes gananciales. Tax 1040ez C Casado que presenta una declaración conjunta, Requisito 1 —Límites del ingreso bruto ajustado (AGI, por sus siglas en inglés), Requisito de Declaración Conjunta Casado, hijo, Hijo casado. Tax 1040ez Clero, Miembro del clero. Tax 1040ez Cómo calcular usted mismo el EIC , Cómo Calcular Usted Mismo el EIC Compensación del Seguro Social, Ingresos que no se Consideran Ingresos del Trabajo Crianza, hijo de, Hijo de crianza. Tax 1040ez D Denegación del EIC , Capítulo 5 —Denegación del EIC Divorciados, requisito especial para padres, Requisito especial para padres divorciados o separados (o que viven aparte). Tax 1040ez E Ejemplos detallados, Capítulo 6 —Ejemplos Detallados El IRS le calculará el Crédito (EIC), El IRS le Calculará el Crédito (EIC) Empleado de una iglesia, Empleados de una iglesia. Tax 1040ez Empleado estatutario, Empleado estatutario. Tax 1040ez , Empleados estatutarios. Tax 1040ez Escuela, Definición de escuela. Tax 1040ez Estado civil Cabeza de familia, Requisito 3 —Su estado civil para efectos de la declaración no puede ser casado que presenta la declaración por separado Casado que presenta la declaración por separado, Requisito 3 —Su estado civil para efectos de la declaración no puede ser casado que presenta la declaración por separado Estados Unidos, Estados Unidos. Tax 1040ez , Estados Unidos. Tax 1040ez Estudiante, Definición de estudiante. Tax 1040ez Extranjero no residente, Requisito 4 —Tiene que ser ciudadano de los Estados Unidos o extranjero residente durante todo el año F Formularios 1040, ¿Necesito esta Publicación?, Ingreso bruto ajustado (AGI). Tax 1040ez , Si no tiene un número de Seguro Social (SSN). Tax 1040ez , Requisito 4 —Tiene que ser ciudadano de los Estados Unidos o extranjero residente durante todo el año, Requisito 6 —Tiene que tener ingresos de inversiones de $3,300 o menos, Salarios, sueldos y propinas. Tax 1040ez , Beneficios por Incapacidad 1040A, Ingreso bruto ajustado (AGI). Tax 1040ez , Si no tiene un número de Seguro Social (SSN). Tax 1040ez , Requisito 4 —Tiene que ser ciudadano de los Estados Unidos o extranjero residente durante todo el año, Requisito 6 —Tiene que tener ingresos de inversiones de $3,300 o menos, Salarios, sueldos y propinas. Tax 1040ez , Beneficios por Incapacidad 1040EZ, Ingreso bruto ajustado (AGI). Tax 1040ez , Si no tiene un número de Seguro Social (SSN). Tax 1040ez , Requisito 6 —Tiene que tener ingresos de inversiones de $3,300 o menos, Salarios, sueldos y propinas. Tax 1040ez 1040X, Si no tiene un número de Seguro Social (SSN). Tax 1040ez , Se acerca el plazo para la presentación de la declaración y aún no tiene un número de Seguro Social. Tax 1040ez 2555, Requisito 5 —No puede presentar el Formulario 2555 ni el Formulario 2555-EZ 2555–EZ, Requisito 5 —No puede presentar el Formulario 2555 ni el Formulario 2555-EZ 4029, Formulario 4361 ó 4029 Aprobado 4361, Formulario 4361 ó 4029 Aprobado 4797, ¿Necesito esta Publicación? 4868, Si no tiene un número de Seguro Social (SSN). Tax 1040ez , Se acerca el plazo para la presentación de la declaración y aún no tiene un número de Seguro Social. Tax 1040ez 4868(SP), Si no tiene un número de Seguro Social (SSN). Tax 1040ez , Se acerca el plazo para la presentación de la declaración y aún no tiene un número de Seguro Social. Tax 1040ez 8332, Requisito especial para padres divorciados o separados (o que viven aparte). Tax 1040ez 8814, ¿Necesito esta Publicación?, Requisito 6 —Tiene que tener ingresos de inversiones de $3,300 o menos 8862(SP), Capítulo 5 —Denegación del EIC , Formulario 8862(SP) Fraude, Excepción 2. Tax 1040ez , ¿Se le ha Prohibido Reclamar el Crédito por Ingreso del Trabajo por Cierto Número de Años? Fuerzas Armadas, Opción de incluir la paga no tributable por combate. Tax 1040ez , Paga militar no tributable. Tax 1040ez , Servicio activo prolongado. Tax 1040ez H Hijo Hijo adoptivo, Hijo adoptivo. Tax 1040ez Hijo casado, Hijo casado. Tax 1040ez Hijo de crianza, Hijo de crianza. Tax 1040ez Hijo secuestrado, Hijo secuestrado. Tax 1040ez Nacimiento o fallecimiento de, Nacimiento o fallecimiento de un hijo. Tax 1040ez Hijo calificado, ¿Hay que Tener un Hijo para Tener Derecho al Crédito por Ingreso del Trabajo (EIC)?, Requisito 1 —Límites del ingreso bruto ajustado (AGI, por sus siglas en inglés), Capítulo 2 —Requisitos que Tiene que Cumplir si Tiene un Hijo Calificado, Requisito 8 —Su hijo tiene que cumplir los requisitos de parentesco, edad, residencia y declaración conjunta Estados Unidos, Requisito de Residencia Hogar, Requisito de Residencia Requisito de Declaración Conjunta, Declaraciones conjuntas. Tax 1040ez Requisito de Edad, Requisito de Edad Requisito de Parentesco, Requisito de Parentesco Requisito de Residencia, Requisito de Residencia Total y permanentemente incapacitado, Total y permanentemente incapacitado. Tax 1040ez Hogar Albergues para personas sin hogar, Albergues para personas sin hogar. Tax 1040ez Estados Unidos, Estados Unidos. Tax 1040ez Militar, Personal militar destacado fuera de los Estados Unidos. Tax 1040ez , Personal militar destacado fuera de los Estados Unidos. Tax 1040ez Hoja de Trabajo 2, Hoja de Trabajo 2: Hoja de Trabajo para la Línea 4 de la Hoja de Trabajo 1 I Impuestos, ayuda con, Cómo Obtener Ayuda con los Impuestos Información TTY/TDD , Teléfono. Tax 1040ez Ingreso del trabajo, Ingresos del Trabajo Empleado estatutario, Ingreso del Trabajo, Empleado estatutario. Tax 1040ez Trabajo por cuenta propia, Ingreso del Trabajo Ingresos de dividendos, Ingresos que no se Consideran Ingresos del Trabajo Ingresos de inversiones, Qué Hay de Nuevo para el año 2013, Requisito 6 —Tiene que tener ingresos de inversiones de $3,300 o menos Ingresos netos del trabajo por cuenta propia, Ingresos netos del trabajo por cuenta propia. Tax 1040ez , Ingresos netos del trabajo por cuenta propia de $400 o más. Tax 1040ez Ingresos que no se Consideran Ingresos de Trabajo, Ingresos que no se Consideran Ingresos del Trabajo Intereses, Ingresos que no se Consideran Ingresos del Trabajo Internet, ayuda por Asistente EITC , ¿Hay Ayuda Disponible en Internet? M Miembro del clero, Miembro del clero. Tax 1040ez Militar Fuera de los Estados Unidos, Personal militar destacado fuera de los Estados Unidos. Tax 1040ez , Personal militar destacado fuera de los Estados Unidos. Tax 1040ez Paga no tributable, Paga militar no tributable. Tax 1040ez Paga no tributable por combate, Opción de incluir la paga no tributable por combate. Tax 1040ez , Paga no tributable por combate. Tax 1040ez Paga por combate, Opción de incluir la paga no tributable por combate. Tax 1040ez , Paga militar no tributable. Tax 1040ez Ministro, Vivienda de un ministro de una orden religiosa. Tax 1040ez N Número de identificación del contribuyente en proceso de adopción (ATIN), Hijo casado. Tax 1040ez Número de identificación del contribuyente individual (ITIN), Otro número de identificación del contribuyente. Tax 1040ez , Hijo casado. Tax 1040ez Número de Seguro Social (SSN), Requisito 2 —Tiene que tener un número de Seguro Social (SSN) válido, Hijo casado. Tax 1040ez P Padres, divorciados o separados, Requisito especial para padres divorciados o separados (o que viven aparte). Tax 1040ez Pagos de bienestar socia a cambio de actividades laborales, Pagos de bienestar social a cambio de actividades laborales. Tax 1040ez Pareja doméstica, Pareja o sociedad doméstica en Nevada, Washington y California. Tax 1040ez Pensión alimenticia, Ingresos que no se Consideran Ingresos del Trabajo Pensiones, Cálculo del ingreso del trabajo. Tax 1040ez Personas que trabajan por cuenta propia, Hoja de Trabajo B del Crédito por Ingreso del Trabajo. Tax 1040ez Propinas, sueldos y salarios, Salarios, sueldos y propinas. Tax 1040ez Publicaciones (see Impuestos, ayuda con) R Recluso, Ingresos recibidos como recluso en una institución penal. Tax 1040ez , Cálculo del ingreso del trabajo. Tax 1040ez Recordatorios, Recordatorios Reglas del desempate, Reglas del desempate. Tax 1040ez , Cómo aplicar el Requisito 9 a padres divorciados o separados (o que viven aparte). Tax 1040ez Requisito de Declaración Conjunta (see Hijo calificado) Requisito de Edad (see Hijo calificado) Requisito de Parentesco (see Hijo calificado) Requisito de Residencia (see Hijo calificado) Requisito especial para padres divorciados o separados, Requisito especial para padres divorciados o separados (o que viven aparte). Tax 1040ez S Salarios, sueldos y propinas, Salarios, sueldos y propinas. Tax 1040ez Secuestro, hijo, Hijo secuestrado. Tax 1040ez Separados, requisito especial para padres, Requisito especial para padres divorciados o separados (o que viven aparte). Tax 1040ez Servicio activo prolongado, Servicio activo prolongado. Tax 1040ez Servicio del Defensor del Contribuyente, El Servicio del Defensor del Contribuyente está aquí para ayudarlo a usted. Tax 1040ez Servicios gratis de impuestos, Ayuda gratuita con la preparación de su declaración de impuestos. Tax 1040ez Sin Hogar, albergues para personas, Albergues para personas sin hogar. Tax 1040ez T Tabla del Crédito por Ingreso del Trabajo (EIC) , EIC Table Total y permanentemente incapacitado, Total y permanentemente incapacitado. Tax 1040ez V Veteranos, beneficios, Ingresos que no se Consideran Ingresos del Trabajo Prev  Up     Home   More Online Publications
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Tax 1040ez 3. Tax 1040ez   Lifetime Learning Credit Table of Contents Introduction Can You Claim the CreditWho Can Claim the Credit Who Cannot Claim the Credit What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses Figuring the CreditEffect of the Amount of Your Income on the Amount of Your Credit Claiming the Credit Introduction For 2013, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. Tax 1040ez They are the American opportunity credit and the lifetime learning credit. Tax 1040ez This chapter discusses the lifetime learning credit. Tax 1040ez The American opportunity credit is discussed in chapter 2, The American Opportunity Credit . Tax 1040ez This chapter explains: Who can claim the lifetime learning credit, What expenses qualify for the credit, Who is an eligible student, Who can claim a dependent's expenses, How to figure the credit, How to claim the credit, and When the credit must be repaid. Tax 1040ez What is the tax benefit of the lifetime learning credit. Tax 1040ez   For the tax year, you may be able to claim a lifetime learning credit of up to $2,000 for qualified education expenses paid for all eligible students. Tax 1040ez There is no limit on the number of years the lifetime learning credit can be claimed for each student. Tax 1040ez   A tax credit reduces the amount of income tax you may have to pay. Tax 1040ez Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. Tax 1040ez The lifetime learning credit is a nonrefundable credit. Tax 1040ez This means that it can reduce your tax to zero, but if the credit is more than your tax the excess will not be refunded to you. Tax 1040ez   Your allowable lifetime learning credit may be limited by the amount of your income and the amount of your tax. Tax 1040ez Can you claim more than one education credit this year. Tax 1040ez   For each student, you can elect for any year only one of the credits. Tax 1040ez For example, if you elect to take the lifetime learning credit for a child on your 2013 tax return, you cannot, for that same child, also claim the American opportunity credit for 2013. Tax 1040ez   If you are eligible to claim the lifetime learning credit and you are also eligible to claim the American opportunity credit for the same student in the same year, you can choose to claim either credit, but not both. Tax 1040ez   If you pay qualified education expenses for more than one student in the same year, you can choose to take certain credits on a per-student, per-year basis. Tax 1040ez This means that, for example, you can claim the American opportunity credit for one student and the lifetime learning credit for another student in the same year. Tax 1040ez Differences between the American opportunity and lifetime learning credits. Tax 1040ez   There are several differences between these two credits. Tax 1040ez For example, you can claim the American opportunity credit for the same student for no more than 4 tax years, but any year in which the Hope Scholarship Credit was claimed counts toward the 4 years. Tax 1040ez However, there is no limit on the number of years for which you can claim a lifetime learning credit based on the same student's expenses. Tax 1040ez The differences between these credits are shown in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 near the end of this publication. Tax 1040ez Overview of the lifetime learning credit. Tax 1040ez   See Table 3-1, Overview of the Lifetime Learning Credit for the basics of the lifetime learning credit. Tax 1040ez The details are discussed in this chapter. Tax 1040ez Can You Claim the Credit The following rules will help you determine if you are eligible to claim the lifetime learning credit on your tax return. Tax 1040ez Who Can Claim the Credit Generally, you can claim the lifetime learning credit if all three of the following requirements are met. Tax 1040ez You pay qualified education expenses of higher education. Tax 1040ez You pay the education expenses for an eligible student. Tax 1040ez The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Tax 1040ez Table 3-1. Tax 1040ez Overview of the Lifetime Learning Credit Maximum credit Up to $2,000 credit per return Limit on modified adjusted gross income (MAGI) $127,000 if married filling jointly;  $63,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable Nonrefundable—credit limited to the amount of tax you must pay on your taxable income Number of years of postsecondary education Available for all years of postsecondary education and for courses to acquire or improve job skills Number of tax years credit available Available for an unlimited number of years Type of program required Student does not need to be pursuing a program leading to a degree or other recognized education credential Number of courses Available for one or more courses Felony drug conviction Felony drug convictions do not make the student ineligible Qualified expenses Tuition and fees required for enrollment or attendance (including amounts required to be paid to the institution for course-related books, supplies, and equipment) Payments for academic periods Payments made in 2013 for academic periods beginning in 2013 or beginning in the first 3 months of 2014 Note. Tax 1040ez Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. Tax 1040ez “Qualified education expenses” are defined later under Qualified Education Expenses . Tax 1040ez “Eligible students” are defined later under Who Is an Eligible Student . Tax 1040ez A dependent for whom you claim an exemption is defined later under Who Can Claim a Dependent's Expenses . Tax 1040ez You may find Figure 3-1, Can You Claim the Lifetime Learning Credit for 2013 , later, helpful in determining if you can claim a lifetime learning credit on your tax return. Tax 1040ez Who Cannot Claim the Credit You cannot claim the lifetime learning credit for 2013 if any of the following apply. Tax 1040ez Your filing status is married filing separately. Tax 1040ez You are listed as a dependent on another person's tax return (such as your parents'). Tax 1040ez See Who Can Claim a Dependent's Expenses , later. Tax 1040ez Your modified adjusted gross income (MAGI) is $63,000 or more ($127,000 or more in the case of a joint return). Tax 1040ez MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit . Tax 1040ez You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. Tax 1040ez More information on nonresident aliens can be found in Publication 519. Tax 1040ez You claim the American Opportunity Credit (see chapter 2) or a Tuition and Fees Deduction (see chapter 6) for the same student in 2013. Tax 1040ez What Expenses Qualify The lifetime learning credit is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Tax 1040ez Generally, the credit is allowed for qualified education expenses paid in 2013 for an academic period beginning in 2013 or in the first 3 months of 2014. Tax 1040ez For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 credit. Tax 1040ez Academic period. Tax 1040ez   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. Tax 1040ez 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. Tax 1040ez Paid with borrowed funds. Tax 1040ez   You can claim a lifetime learning credit for qualified education expenses paid with the proceeds of a loan. Tax 1040ez You use the expenses to figure the lifetime learning credit for the year in which the expenses are paid, not the year in which the loan is repaid. Tax 1040ez Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. Tax 1040ez Student withdraws from class(es). Tax 1040ez   You can claim a lifetime learning credit for qualified education expenses not refunded when a student withdraws. Tax 1040ez Qualified Education Expenses For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. Tax 1040ez The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills. Tax 1040ez Eligible educational institution. Tax 1040ez   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. Tax 1040ez S. Tax 1040ez Department of Education. Tax 1040ez It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Tax 1040ez The educational institution should be able to tell you if it is an eligible educational institution. Tax 1040ez   Certain educational institutions located outside the United States also participate in the U. Tax 1040ez S. Tax 1040ez Department of Education's Federal Student Aid (FSA) programs. Tax 1040ez Related expenses. Tax 1040ez   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution for enrollment or attendance. Tax 1040ez Prepaid expenses. Tax 1040ez   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. Tax 1040ez See Academic period , earlier. Tax 1040ez For example, you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). Tax 1040ez You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). Tax 1040ez In the following examples, assume that each student is an eligible student at an eligible educational institution. Tax 1040ez Example 1. Tax 1040ez   Jackson is a sophomore in University V's degree program in dentistry. Tax 1040ez This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. Tax 1040ez Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified expense. Tax 1040ez Example 2. Tax 1040ez   Donna and Charles, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. Tax 1040ez The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. Tax 1040ez Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Tax 1040ez Donna bought hers at College W's bookstore. Tax 1040ez Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. Tax 1040ez Example 3. Tax 1040ez   When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Tax 1040ez This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and student government. Tax 1040ez No portion of the fee covers personal expenses. Tax 1040ez Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. Tax 1040ez Therefore, it is a qualified expense. Tax 1040ez No Double Benefit Allowed You cannot do any of the following: Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim a lifetime learning credit based on those same expenses. Tax 1040ez Claim a lifetime learning credit in the same year that you are claiming a tuition and fees deduction for the same student. Tax 1040ez Claim a lifetime learning credit and an American opportunity credit based on the same qualified education expenses. Tax 1040ez Claim a lifetime learning credit based on the same expenses used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or qualified tuition program (QTP). Tax 1040ez See Coordination With American Opportunity and Lifetime Learning Credits in chapter 7, Coverdell Education Savings Account, and Coordination With American Opportunity and Lifetime Learning Credits in chapter 8, Qualified Tuition Program. Tax 1040ez Claim a credit based on qualified education expenses paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Tax 1040ez See Adjustments to Qualified Education Expenses, next. Tax 1040ez This image is too large to be displayed in the current screen. Tax 1040ez Please click the link to view the image. Tax 1040ez Figure 3-1 Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Tax 1040ez The result is the amount of adjusted qualified education expenses for each student. Tax 1040ez Tax-free educational assistance. Tax 1040ez   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. Tax 1040ez See Academic period , earlier. Tax 1040ez   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Tax 1040ez This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). Tax 1040ez   If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed , later. Tax 1040ez If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed , later. Tax 1040ez   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), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Tax 1040ez Generally, any scholarship or fellowship is treated as tax free. Tax 1040ez However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. Tax 1040ez The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Tax 1040ez The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Tax 1040ez You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. Tax 1040ez For examples, see Coordination with Pell grants and other scholarships, later. Tax 1040ez Refunds. Tax 1040ez   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. Tax 1040ez Some tax-free educational assistance received after 2013 may be treated as a refund. Tax 1040ez See Tax-free educational assistance , earlier. Tax 1040ez Refunds received in 2013. Tax 1040ez   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Tax 1040ez Refunds received after 2013 but before your income tax return is filed. Tax 1040ez   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. Tax 1040ez Refunds received after 2013 and after your income tax return is filed. Tax 1040ez   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. Tax 1040ez See Credit recapture, next. Tax 1040ez Credit recapture. Tax 1040ez    If any tax-free educational assistance for the qualified education expenses paid in 2013 or any refund of your qualified education expenses paid in 2013 is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. Tax 1040ez You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing the expenses by the amount of the refund or tax-free educational assistance. Tax 1040ez You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you had claimed the refigured credit(s). Tax 1040ez Include that amount as an additional tax for the year the refund or tax-free assistance was received. Tax 1040ez Example. Tax 1040ez   You pay $9,300 in tuition and fees in December 2013, and your child began college in January 2014. Tax 1040ez You filed your 2013 tax return on February 14, 2014, and claimed a lifetime learning credit of $1,860. Tax 1040ez You claimed no other tax credits. Tax 1040ez After you filed your return, your child withdrew from two courses and you received a refund of $2,900. Tax 1040ez You must refigure your 2013 lifetime learning credit using $6,400 of qualified education expenses instead of $9,300. Tax 1040ez The refigured credit is $1,280 and your tax liability increased by $580. Tax 1040ez See instructions for your 2014 income tax return to determine where to include this tax. Tax 1040ez If you pay qualified education expenses in 2014 for an academic period that begins in the first 3 months of 2014 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2014 instead of reducing your expenses for 2013. Tax 1040ez Amounts that do not reduce qualified education expenses. Tax 1040ez   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Tax 1040ez   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. Tax 1040ez The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses, as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Tax 1040ez The use of the money is not restricted. Tax 1040ez For examples, see Adjustments to Qualified Education Expenses in chapter 2, American Opportunity Credit. Tax 1040ez Coordination with Pell grants and other scholarships. Tax 1040ez   In some cases, you may be able to reduce your tax liability by including scholarships in income. Tax 1040ez If you are claiming an education credit for a claimed dependent who received a scholarship, you may be able to reduce your tax liability if the student includes the scholarship in income. Tax 1040ez The scholarship must be one that may (by its terms) be applied to expenses (such as room and board) other than qualified education expenses. Tax 1040ez Example 1—No scholarship. Tax 1040ez Judy Green, who is unmarried, is taking courses at a public community college to be recertified to teach in public schools. Tax 1040ez Her AGI and her MAGI, for purposes of the credit, are $27,000. Tax 1040ez Judy takes the standard deduction of $5,950 and personal exemption of $3,800, reducing her AGI to taxable income of $17,250 and her tax before credits is $2,156. Tax 1040ez She claims no credits other than the lifetime learning credit. Tax 1040ez In July 2013 she paid $700 for the summer 2013 semester; in August 2013 she paid $1,900 for the fall 2013 semester; and in December 2013 she paid another $1,900 for the spring semester beginning in January 2014. Tax 1040ez Judy and the college meet all requirements for the lifetime learning tax credit. Tax 1040ez She can use all of the $4,500 tuition she paid in 2013 when figuring her 2013 lifetime learning credit. Tax 1040ez She claims a $900 lifetime learning credit and her tax after credits is $1,256. Tax 1040ez Example 2—Scholarship excluded from income. Tax 1040ez The facts are the same as in Example 1—No scholarship, except that Judy was awarded a $1,500 scholarship. Tax 1040ez Under the terms of her scholarship, it may be used to pay any educational expenses, including room and board. Tax 1040ez If Judy excludes the scholarship from income, she will be deemed (for purposes of computing her education credit) as having used the scholarship to pay for tuition, required fees, and course materials. Tax 1040ez Only $3,000 of the $4,500 tuition she paid in 2013 could be used when figuring her 2013 lifetime learning credit. Tax 1040ez Her lifetime learning credit would be reduced to $600 and her tax after credits would be $1,556. Tax 1040ez Example 3—Scholarship included in income. Tax 1040ez The facts are the same as in Example 2—Scholarship excluded from income. Tax 1040ez If, unlike Example 2, Judy includes the $1,500 scholarship in income, she will be deemed to have used the entire scholarship to pay for room and board. Tax 1040ez Judy's AGI will increase to $28,500, her taxable income would be $18,750, and her tax before credits would be $2,381. Tax 1040ez She would be able to use the $4,500 of adjusted qualified education expenses to figure her credit. Tax 1040ez Judy could claim a $900 lifetime learning credit and her tax after credits would be $1,481. Tax 1040ez Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. Tax 1040ez This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Tax 1040ez Sports, games, hobbies, and noncredit courses. Tax 1040ez   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. Tax 1040ez However, if the course of instruction or other education is part of the student's degree program or is taken by the student to acquire or improve job skills, these expenses can qualify. Tax 1040ez Comprehensive or bundled fees. Tax 1040ez   Some eligible educational institutions combine all of their fees for an academic period into one amount. Tax 1040ez If you do not receive or do not have access to an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. Tax 1040ez The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T. Tax 1040ez See Figuring the Credit , later, for more information about Form 1098-T. Tax 1040ez Who Is an Eligible Student For purposes of the lifetime learning credit, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). Tax 1040ez Who Can Claim a Dependent's Expenses If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both of you, can claim a lifetime learning credit for your dependent's expenses for that year. Tax 1040ez For you to claim a lifetime learning credit for your dependent's expenses, you must also claim an exemption for your dependent. Tax 1040ez You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Tax 1040ez IF you. Tax 1040ez . Tax 1040ez . Tax 1040ez THEN only. Tax 1040ez . Tax 1040ez . Tax 1040ez claim an exemption on your tax return for a dependent who is an eligible student you can claim the lifetime learning credit based on that dependent's expenses. Tax 1040ez The dependent cannot claim the credit. Tax 1040ez do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled to the exemption) the dependent can claim the lifetime learning credit. Tax 1040ez You cannot claim the credit based on this dependent's expenses. Tax 1040ez Expenses paid by dependent. Tax 1040ez   If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Tax 1040ez Include these expenses when figuring the amount of your lifetime learning credit. Tax 1040ez    Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent. Tax 1040ez Expenses paid by you. Tax 1040ez   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the lifetime learning credit. Tax 1040ez If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the lifetime learning credit. Tax 1040ez Expenses paid by others. Tax 1040ez   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. Tax 1040ez In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Tax 1040ez If you claim an exemption on your tax return for the student, you are considered to have paid the expenses. Tax 1040ez Example. Tax 1040ez In 2013, Ms. Tax 1040ez Allen makes a payment directly to an eligible educational institution for her grandson Todd's qualified education expenses. Tax 1040ez For purposes of claiming a lifetime learning credit, Todd is treated as receiving the money from his grandmother and, in turn, paying his qualified education expenses himself. Tax 1040ez Unless an exemption for Todd is claimed on someone else's 2013 tax return, only Todd can use the payment to claim a lifetime learning credit. Tax 1040ez If anyone, such as Todd's parents, claims an exemption for Todd on his or her 2013 tax return, whoever claims the exemption may be able to use the expenses to claim a lifetime learning credit. Tax 1040ez If anyone else claims an exemption for Todd, Todd cannot claim a lifetime learning credit. Tax 1040ez Tuition reduction. Tax 1040ez   When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. Tax 1040ez If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. Tax 1040ez For more information on tuition reductions, see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Tax 1040ez Figuring the Credit The amount of the lifetime learning credit is 20% of the first $10,000 of qualified education expenses you paid for all eligible students. Tax 1040ez The maximum amount of lifetime learning credit you can claim for 2013 is $2,000 (20% × $10,000). Tax 1040ez However, that amount may be reduced based on your MAGI. Tax 1040ez See Effect of the Amount of Your Income on the Amount of Your Credit , later. Tax 1040ez Example. Tax 1040ez Bruce and Toni Harper are married and file a joint tax return. Tax 1040ez For 2013, their MAGI is $75,000. Tax 1040ez Toni is attending a local college (an eligible educational institution) to earn credits toward a degree in nursing. Tax 1040ez She already has a bachelor's degree in history and wants to become a nurse. Tax 1040ez In August 2013, Toni paid $5,000 of qualified education expenses for her fall 2013 semester. Tax 1040ez Bruce and Toni can claim a $1,000 (20% × $5,000) lifetime learning credit on their 2013 joint tax return. Tax 1040ez Form 1098-T. Tax 1040ez   To help you figure your lifetime learning credit, the student should receive Form 1098-T. Tax 1040ez Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. Tax 1040ez An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Tax 1040ez However, the amounts in boxes 1 and 2 of Form 1098-T might be different from what you paid. Tax 1040ez When figuring the credit, use only the amounts you paid or are deemed to have paid in 2013 for qualified education expenses. Tax 1040ez   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. Tax 1040ez    The eligible educational institution may ask for a completed Form W-9S, or similar statement to obtain the student's name, address, and taxpayer identification number. Tax 1040ez Effect of the Amount of Your Income on the Amount of Your Credit The amount of your lifetime learning credit is phased out (gradually reduced) if your MAGI is between $53,000 and $63,000 ($107,000 and $127,000 if you file a joint return). Tax 1040ez You cannot claim a lifetime learning credit if your MAGI is $63,000 or more ($127,000 or more if you file a joint return). Tax 1040ez Modified adjusted gross income (MAGI). Tax 1040ez   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. Tax 1040ez MAGI when using Form 1040A. Tax 1040ez   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. Tax 1040ez MAGI when using Form 1040. Tax 1040ez   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. Tax 1040ez You can use Worksheet 3-1 to figure your MAGI. Tax 1040ez Worksheet 3-1. Tax 1040ez MAGI for the Lifetime Learning Credit 1. Tax 1040ez Enter your adjusted gross income  (Form 1040, line 38)   1. Tax 1040ez   2. Tax 1040ez Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. Tax 1040ez       3. Tax 1040ez Enter your foreign housing deduction (Form 2555, line 50)   3. Tax 1040ez       4. Tax 1040ez Enter the amount of income from Puerto Rico you are excluding   4. Tax 1040ez       5. Tax 1040ez Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. Tax 1040ez       6. Tax 1040ez Add the amounts on lines 2, 3, 4, and 5   6. Tax 1040ez   7. Tax 1040ez Add the amounts on lines 1 and 6. Tax 1040ez  This is your modified adjusted  gross income. Tax 1040ez Enter this amount  on Form 8863, line 14   7. Tax 1040ez   Phaseout. Tax 1040ez   If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit using lines 10-18 of Form 8863. Tax 1040ez The same method is shown in the following example. Tax 1040ez Example. Tax 1040ez You are filing a joint return with a MAGI of $112,000. Tax 1040ez In 2013, you paid $6,600 of qualified education expenses. Tax 1040ez You figure the tentative lifetime learning credit (20% of the first $10,000 of qualified education expenses you paid for all eligible students). Tax 1040ez The result is a $1,320 (20% x $6,600) tentative credit. Tax 1040ez Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($1,320) by a fraction. Tax 1040ez The numerator of the fraction is $127,000 (the upper limit for those filing a joint return) minus your MAGI. Tax 1040ez The denominator is $20,000, the range of incomes for the phaseout ($107,000 to $127,000). Tax 1040ez The result is the amount of your phased out (reduced) lifetime learning credit ($990). Tax 1040ez   $1,320 × $127,000 − $112,000  $20,000 = $990   Claiming the Credit You claim the lifetime learning credit by completing Form 8863 and submitting it with your Form 1040 or 1040A. Tax 1040ez Enter the credit on Form 1040, line 49, or Form 1040A, line 31. Tax 1040ez Note. Tax 1040ez In Appendix A, Illustrated Example of Education Credits at the end of this publication, there is an example illustrating the use of Form 8863 when both the American opportunity credit and the lifetime learning credit are claimed on the same tax return. Tax 1040ez Prev  Up  Next   Home   More Online Publications