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Taxes military Publication 517 - Additional Material Prev  Up  Next   Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Department of Law and Public Safety

Website: Department of Law and Public Safety

Address: Department of Law and Public Safety
Division of Consumer Affairs
124 Halsey St.
Newark, NJ 07102

Phone Number: 973-504-6200

Toll-free: 1-800-242-5846 (NJ)

TTY: 973-504-6588

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County Consumer Protection Offices

Union County Department of Public Safety

Website: Union County Department of Public Safety

Address: Union County Department of Public Safety
Division of Consumer Affairs
300 North Ave., E
Westfield, NJ 07090

Phone Number: 908-654-9840

Bergen County Office of Consumer Protection

Website: Bergen County Office of Consumer Protection

Address: Bergen County Office of Consumer Protection
One Bergen County Plaza, 3rd Floor
Hackensack, NJ 07601-7076

Phone Number: 201-336-6400

Burlington County Office of Consumer Affairs/Weights & Measures

Website: Burlington County Office of Consumer Affairs/Weights & Measures

Address: Burlington County Office of Consumer Affairs/Weights & Measures
PO Box 6000
Mount Holly, NJ 08060-6000

Phone Number: 609-265-5098 (Weights & Measures) 609-265-5054 (Consumer Affairs)

Cape May County Consumer Affairs

Website: Cape May County Consumer Affairs

Address: Cape May County Consumer Affairs
4 Moore Rd., DN 310
Cape May Court House, NJ 08210-1601

Phone Number: 609-463-6475

Cumberland County Department of Consumer Affairs

Website: Cumberland County Department of Consumer Affairs

Address: Cumberland County Department of Consumer Affairs
788 E. Commerce St.
Bridgeton, NJ 08302

Phone Number: 856-453-2203

Essex County Division of Consumer Services

Website: Essex County Division of Consumer Services

Address: Essex County Division of Consumer Services
50 S. Clinton St., Suite 3201
East Orange, NJ 07018

Phone Number: 973-395-8350

Gloucester County Office of Consumer Affairs and Weights Measures

Website: Gloucester County Office of Consumer Affairs and Weights Measures

Address: Gloucester County Office of Consumer Affairs and Weights Measures
254 County House Rd.
Clarksboro, NJ 08020

Phone Number: 856-384-6855

Hudson County Division of Consumer Affairs

Website: Hudson County Division of Consumer Affairs (Hudson County Consumer affairs page)

Address: Hudson County Division of Consumer Affairs
583 Newark Ave.
Jersey City, NJ 07306

Phone Number: 201-795-6295 (Hotline)

Hunterdon County Office of Consumer Affairs

Website: Hunterdon County Office of Consumer Affairs

Address: Hunterdon County Office of Consumer Affairs
PO Box 2900
Flemington, NJ 08822

Phone Number: 908-806-5174

Mercer County Office of Consumer Affairs

Website: Mercer County Office of Consumer Affairs

Address: Mercer County Office of Consumer Affairs
640 S. Broad St.
PO Box 8068
Trenton, NJ 08650-0068

Phone Number: 609-989-6671

Middlesex County Consumer Affairs

Website: Middlesex County Consumer Affairs

Address: Middlesex County Consumer Affairs
711 Jersey Ave.
New Brunswick, NJ 08901

Phone Number: 732-745-3875

Monmouth County Department of Consumer Affairs

Website: Monmouth County Department of Consumer Affairs

Address: Monmouth County Department of Consumer Affairs
Hall of Records Annex
One E. Main St.
Freehold, NJ 07728-1255

Phone Number: 732-431-7900

Ocean County Department of Consumer Affairs

Website: Ocean County Department of Consumer Affairs

Address: Ocean County Department of Consumer Affairs
1027 Hooper Ave., Bldg. 2
Toms River, NJ 08754-2191

Phone Number: 732-929-2105

Passaic County Department of Consumer Protection/Weights & Measures

Website: Passaic County Department of Consumer Protection/Weights & Measures

Address: Passaic County Department of Consumer Protection/Weights & Measures
Department of Law
1310 Route 23 N
Wayne, NJ 07470

Phone Number: 973-305-5881 (Consumer Protection) 973-305-5750 (Weights Measures)

Somerset County Division of Consumer Protection

Website: Somerset County Division of Consumer Protection

Address: Somerset County Division of Consumer Protection
20 Grove St.
PO Box 3000
Somerville, NJ 08876-1262

Phone Number: 908-203-6080

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City Consumer Protection Offices

Union Consumer Affairs Office

Website: Union Consumer Affairs Office

Address: Union Consumer Affairs Office
1976 Morris Ave.
Union, NJ 07083

Phone Number: 908-851-5458

Nutley Consumer Affairs

Website: Nutley Consumer Affairs

Address: Nutley Consumer Affairs
c/o Department of Public Affairs
149 Chestnut St.
Nutley, NJ 07110

Phone Number: 973-284-4976

Secaucus Department of Consumer Affairs

Website: Secaucus Department of Consumer Affairs (Consumer Affairs Offices)

Address: Secaucus Department of Consumer Affairs
Municipal Government Center
1203 Patterson Plank Rd.
Secaucus, NJ 07094

Phone Number: 201-330-2008

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Banking and Insurance

Website: Department of Banking and Insurance

Address: Department of Banking and Insurance
Consumer Inquiry and Response Center
PO Box 471
Trenton, NJ 08625-0471

Phone Number: 609-292-7272

Toll-free: 1-800-446-7467

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Banking and Insurance

Website: Department of Banking and Insurance

Address: Department of Banking and Insurance
Consumer Inquiries and Complaints
PO Box 325
Trenton, NJ 08625

Phone Number: 609-292-7272

Toll-free: 1-800-446-7467

Department of Banking and Insurance

Website: Department of Banking and Insurance

Address: Department of Banking and Insurance
Consumer Center
153 Halsey St.
Newark, NJ 07102

Phone Number: 973-648-4713

Toll-free: 1-800-446-7467

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Law and Public Safety

Website: Department of Law and Public Safety

Address: Department of Law and Public Safety
Bureau of Securities
PO Box 47029
Newark, NJ 07101

Phone Number: 973-504-3600

Toll-free: 1-866-446-8378 (NJ)

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Board of Public Utilities

Website: Board of Public Utilities

Address: Board of Public Utilities
Division of Customer Assistance
44 S. Clinton Ave.
Trenton, NJ 08625

Phone Number: 609-341-9188

Toll-free: 1-800-624-0241 (NJ) 1-800-624-0331 (Cable complaint)

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The Taxes Military

Taxes military 6. Taxes military   Tuition and Fees Deduction Table of Contents IntroductionWhat is the tax benefit of the tuition and fees deduction. Taxes military Can You Claim the DeductionWho Can Claim the Deduction Who Cannot Claim the Deduction 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 DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Claiming the Deduction Illustrated Example Introduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). Taxes military You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. Taxes military The qualified expenses must be for higher education, as explained later under Qualified Education Expenses . Taxes military What is the tax benefit of the tuition and fees deduction. Taxes military   The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Taxes military   This deduction is taken as an adjustment to income. Taxes military This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). Taxes military This deduction may be beneficial to you if you do not qualify for the American opportunity or lifetime learning credits. Taxes military You can choose the education benefit that will give you the lowest tax. Taxes military You may want to compare the tuition and fees deduction to the education credits. Taxes military See chapter 2, American Opportunity Credit and chapter 3, Lifetime Learning Credit for more information on the education credits. Taxes military Table 6-1. Taxes military Tuition and Fees Deduction at a Glance summarizes the features of the tuition and fees deduction. Taxes military Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Taxes military Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Taxes military You pay qualified education expenses of higher education. Taxes military You pay the education expenses for an eligible student. Taxes military The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return. Taxes military The term “qualified education expenses” is defined later under Qualified Education Expenses . Taxes military “Eligible student” is defined later under Who Is an Eligible Student . Taxes military For more information on claiming the deduction for a dependent, see Who Can Claim a Dependent's Expenses , later. Taxes military Table 6-1. Taxes military Tuition and Fees Deduction at a Glance Do not rely on this table alone. Taxes military Refer to the text for complete details. Taxes military Question Answer What is the maximum benefit? You can reduce your income subject to tax by up to $4,000. Taxes military What is the limit on modified adjusted gross income (MAGI)? $160,000 if married filing a joint return; $80,000 if single, head of household, or qualifying widow(er). Taxes military Where is the deduction taken? As an adjustment to income on  Form 1040 or Form 1040A. Taxes military For whom must the expenses be paid? A student enrolled in an eligible educational institution who is either: •you,  •your spouse, or  •your dependent for whom you claim an exemption. Taxes military What tuition and fees are deductible? Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. Taxes military Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Taxes military Your filing status is married filing separately. Taxes military Another person can claim an exemption for you as a dependent on his or her tax return. Taxes military You cannot take the deduction even if the other person does not actually claim that exemption. Taxes military Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Taxes military 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. Taxes military More information on nonresident aliens can be found in Publication 519. Taxes military What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Taxes military Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period beginning in 2013 or in the first 3 months of 2014. Taxes military 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 deduction. Taxes military Academic period. Taxes military   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. Taxes military 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. Taxes military Paid with borrowed funds. Taxes military   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Taxes military Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Taxes military Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. Taxes military Student withdraws from class(es). Taxes military   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Taxes military Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Taxes military Eligible educational institution. Taxes military   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. Taxes military S. Taxes military Department of Education. Taxes military It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Taxes military The educational institution should be able to tell you if it is an eligible educational institution. Taxes military   Certain educational institutions located outside the United States also participate in the U. Taxes military S. Taxes military Department of Education's Federal Student Aid (FSA) programs. Taxes military Related expenses. Taxes military   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 as a condition of enrollment or attendance. Taxes military Prepaid expenses. Taxes military   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. Taxes military See Academic period , earlier. Taxes military 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). Taxes military 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). Taxes military In the following examples, assume that each student is an eligible student and each college or university an eligible educational institution. Taxes military Example 1. Taxes military Jackson is a sophomore in University V's degree program in dentistry. Taxes military 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. Taxes military Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified education expense. Taxes military Example 2. Taxes military 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. Taxes military 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. Taxes military Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Taxes military Donna bought hers at College W's bookstore. Taxes military Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified education expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. Taxes military Example 3. Taxes military When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Taxes military 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 the student government. Taxes military No portion of the fee covers personal expenses. Taxes military Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. Taxes military Therefore, it is a qualified expense. Taxes military No Double Benefit Allowed You cannot do any of the following. Taxes military Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Taxes military Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. Taxes military Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Taxes military For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Taxes military See Coordination With Tuition and Fees Deduction in chapter 8, Qualified Tuition Program, later. Taxes military Deduct qualified education expenses that have been paid with tax-free interest on U. Taxes military S. Taxes military savings bonds (Form 8815). Taxes military See Figuring the Tax-Free Amount in chapter 10, Education Savings Bond Program, later. Taxes military Deduct qualified education expenses that have been paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Taxes military See the following section on Adjustments to Qualified Education Expenses. Taxes military 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. Taxes military The result is the amount of adjusted qualified education expenses for each student. Taxes military You must also reduce qualified education expenses by the other amounts referred to in No Double Benefit Allowed , earlier. Taxes military Tax-free educational assistance. Taxes military   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. Taxes military See Academic period , earlier. Taxes military   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Taxes military 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). Taxes military   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. Taxes military 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. Taxes military   This tax-free education 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. Taxes military Generally, any scholarship or fellowship is treated as tax free. Taxes military 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. Taxes military 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. Taxes military 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. Taxes military 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. Taxes military For details, see Adjustments to Qualified Education Expenses in chapters 2 and 3. Taxes military Refunds. Taxes military   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. Taxes military Some tax-free educational assistance received after 2013 may be treated as a refund. Taxes military See Tax-free educational assistance , earlier. Taxes military Refunds received in 2013. Taxes military   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. Taxes military Refunds received after 2013 but before your income tax return is filed. Taxes military   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. Taxes military Refunds received after 2013 and after your income tax return is filed. Taxes military   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. Taxes military See Credit recapture , later. Taxes military Coordination with Coverdell education savings accounts and qualified tuition programs. Taxes military   Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). Taxes military For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Taxes military Credit recapture. Taxes military    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. Taxes military You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing that amount by the amount of the refund or tax-free educational assistance. Taxes military 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). Taxes military Include that amount as an additional tax for the year the refund or tax-free assistance was received. Taxes military Example. Taxes military   You paid $3,500 of qualified education expenses in December 2013, and your child began college in January 2014. Taxes military You claimed $3,500 as the tuition and fees deduction on your 2013 income tax return. Taxes military The reduction reduced your taxable income by $3,500. Taxes military Also, you claimed no tax credits in 2013. Taxes military Your child withdrew from two classes and you received a refund of $2,000 in 2014 after you filed your 2013 tax return. Taxes military Refigure your 2013 tuition and fees deduction using $1,500 of qualified education expense instead of the $3,500. Taxes military The refigured tuition and fees deduction is $1,500. Taxes military Do not file an amended 2013 tax return to account for this adjustment. Taxes military Instead, include the difference of $2,000 (but only to the extent this difference would have increased your 2013 tax) on the “Other income” line of your 2014 Form 1040. Taxes military You cannot file Form 1040A for 2014. Taxes military Amounts that do not reduce qualified education expenses. Taxes military   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. Taxes military   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. Taxes military 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 Restrictions. Taxes military The use of the money is not restricted. Taxes military Example 1. Taxes military In 2013, Jackie paid $3,000 for tuition and $5,000 for room and board at University X. Taxes military The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. Taxes military To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. Taxes military The terms of the scholarship state that it can be used to pay any of Jackie's college expenses. Taxes military University X applies the $2,000 scholarship against Jackie's $8,000 total bill, and Jackie pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. Taxes military Jackie does not report any portion of the scholarship as income on her tax return. Taxes military In figuring the tuition and fees deduction, Jackie must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. Taxes military The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. Taxes military Jackie is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship) in 2013. Taxes military Example 2. Taxes military The facts are the same as in Example 1, except that Jackie reports her entire scholarship as income on her tax return. Taxes military Because Jackie reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. Taxes military Jackie is treated as having paid $3,000 in qualified education expenses. Taxes military 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. Taxes military This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Taxes military Sports, games, hobbies, and noncredit courses. Taxes military   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. Taxes military However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Taxes military Comprehensive or bundled fees. Taxes military   Some eligible educational institutions combine all of their fees for an academic period into one amount. Taxes military 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. Taxes military 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. Taxes military See Figuring the Deduction , later, for more information about Form 1098-T. Taxes military Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). Taxes military Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. Taxes military For you to be able to deduct qualified education expenses for your dependent, you must claim an exemption for that individual. Taxes military You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Taxes military IF your dependent is an eligible student and you. Taxes military . Taxes military . Taxes military AND. Taxes military . Taxes military . Taxes military THEN. Taxes military . Taxes military . Taxes military claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. Taxes military Your dependent cannot take a deduction. Taxes military claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Taxes military do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Taxes military do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Taxes military Expenses paid by dependent. Taxes military   If your dependent pays qualified education expenses, no one can take a tuition and fees deduction for those expenses. Taxes military Neither you nor your dependent can deduct the expenses. Taxes military For purposes of the tuition and fees deduction, you are not treated as paying any expenses actually paid by a dependent for whom you or anyone other than the dependent can claim an exemption. Taxes military This rule applies even if you do not claim an exemption for your dependent on your tax return. Taxes military Expenses paid by you. Taxes military   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring your tuition and fees deduction. Taxes military Expenses paid under divorce decree. Taxes military   Qualified education expenses paid directly to an eligible educational institution for a student under a court-approved divorce decree are treated as paid by the student. Taxes military Only the student would be eligible to take a tuition and fees deduction for that payment, and then only if no one else could claim an exemption for the student. Taxes military Expenses paid by others. Taxes military   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. Taxes military In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Taxes military If you claim, or can claim, an exemption on your tax return for the student, you are not considered to have paid the expenses and you cannot deduct them. Taxes military If the student is not a dependent, only the student can deduct payments made directly to the institution for his or her expenses. Taxes military If the student is your dependent, no one can deduct the payments. Taxes military Example. Taxes military In 2013, Ms. Taxes military Baker makes a payment directly to an eligible educational institution for her grandson Dan's qualified education expenses. Taxes military For purposes of deducting tuition and fees, Dan is treated as receiving the money from his grandmother and, in turn, paying his own qualified education expenses. Taxes military If an exemption cannot be claimed for Dan on anyone else's tax return, only Dan can claim a tuition and fees deduction for his grandmother's payment. Taxes military If someone else can claim an exemption for Dan, no one will be allowed a deduction for Ms. Taxes military Baker's payment. Taxes military Tuition reduction. Taxes military   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. Taxes military 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. Taxes military For more information on tuition reductions, see Qualified Tuition Reduction , in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Taxes military Figuring the Deduction The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. Taxes military See Effect of the Amount of Your Income on the Amount of Your Deduction , later. Taxes military Form 1098-T. Taxes military   To help you figure your tuition and fees deduction, the student should receive Form 1098-T (see Appendix A for a completed example of Form 1098-T). Taxes military 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. Taxes military An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Taxes military However, the amount in boxes 1 and 2 of Form 1098-T might be different than what you paid. Taxes military When figuring the deduction, use only the amounts you paid in 2013 for qualified education expenses. Taxes military   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. Taxes military    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. Taxes military Effect of the Amount of Your Income on the Amount of Your Deduction If your MAGI is not more than $65,000 ($130,000 if you are married filing jointly), your maximum tuition and fees deduction is $4,000. Taxes military If your MAGI is larger than $65,000 ($130,000 if you are married filing jointly), but is not more than $80,000 ($160,000 if you are married filing jointly), your maximum deduction is $2,000. Taxes military No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000 if you are married filing jointly). Taxes military Modified adjusted gross income (MAGI). Taxes military   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for tuition and fees. Taxes military However, as discussed below, there may be other modifications. Taxes military MAGI when using Form 1040A. Taxes military   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 19 (tuition and fees deduction). Taxes military MAGI when using Form 1040. Taxes military   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 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. Taxes military   Table 6-2 shows how the amount of your MAGI can affect your tuition and fees deduction. Taxes military   You can use Worksheet 6-1. Taxes military MAGI for the Tuition and Fees Deduction , later, to figure your MAGI. Taxes military Table 6-2. Taxes military Effect of MAGI on Maximum Tuition and Fees Deduction IF your filing status is. Taxes military . Taxes military . Taxes military AND your MAGI is. Taxes military . Taxes military . Taxes military THEN your maximum tuition and fees deduction is. Taxes military . Taxes military . Taxes military single,  head of household, or qualifying widow(er) not more than $65,000 $4,000. Taxes military more than $65,000  but not more than $80,000 $2,000. Taxes military more than $80,000 $0. Taxes military married filing joint return not more than $130,000 $4,000. Taxes military more than $130,000 but not more than $160,000 $2,000. Taxes military more than $160,000 $0. Taxes military Claiming the Deduction You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A. Taxes military Enter the deduction on Form 1040, line 34, or Form 1040A, line 19. Taxes military A filled-in Form 8917 is shown at the end of this chapter. Taxes military Illustrated Example Tim Pfister, a single taxpayer, enrolled full-time at a local college to earn a degree in engineering. Taxes military This is the first year of his postsecondary education. Taxes military During 2013, he paid $3,600 for his qualified 2013 tuition expense. Taxes military Both he and the college meet all of the requirements for the tuition and fees deduction. Taxes military Tim's total income (Form 1040, line 22) and MAGI are $26,000. Taxes military He figures his deduction of $3,600 as shown on Form 8917, later. Taxes military Worksheet 6-1. Taxes military MAGI for the Tuition and Fees Deduction Use this worksheet if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. Taxes military Before using this worksheet, you must complete Form 1040, lines 7 through 33, and figure any amount to be entered on the dotted line next to line 36. Taxes military 1. Taxes military Enter the amount from Form 1040, line 22   1. Taxes military         2. Taxes military Enter the total from Form 1040, lines 23 through 33   2. Taxes military               3. Taxes military Enter the total of any amounts entered on the dotted line next to Form 1040, line 36   3. Taxes military               4. Taxes military Add lines 2 and 3   4. Taxes military         5. Taxes military Subtract line 4 from line 1   5. Taxes military         6. Taxes military Enter your foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   6. Taxes military         7. Taxes military Enter your foreign housing deduction (Form 2555, line 50)   7. Taxes military         8. Taxes military Enter the amount of income from Puerto Rico you are excluding   8. Taxes military         9. Taxes military Enter the amount of income from American Samoa you are  excluding (Form 4563, line 15)   9. Taxes military         10. Taxes military Add lines 5 through 9. Taxes military This is your modified adjusted gross income   10. Taxes military     Note. Taxes military If the amount on line 10 is more than $80,000 ($160,000 if married filing jointly),  you cannot take the deduction for tuition and fees. Taxes military       This image is too large to be displayed in the current screen. Taxes military Please click the link to view the image. Taxes military Form 8917 for Tim Pfister Prev  Up  Next   Home   More Online Publications