File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

2005 Tax Return Online

Filing State TaxFree Tax Calculator1040x HelpHow To File Taxes If UnemployedFiling 1040ez OnlineFill 1040x Form E TaxesFederal Tax SoftwarePrior Year Tax ReturnsHow To File 2011 Tax Return In 2013Form 1040ezState Tax Forms And InstructionsHow To File A Tax AmendmentFederal 1040x2011 Taxes Online Free2010 Electronic Tax FilingIrs Gov EfileHrblock MilitaryFiling Ez Form Online2012 Irs Tax Return FormsH&r Block Military Key CodeFree State Tax PrepCan You E File An Amended Return2011 Tax Tables2011 Taxact LoginFiling An Amended ReturnI Need To File My 2009 TaxesCompare State Income Taxes2011 1040xFederal 1040 Ez FormAmended Tax Returns More:label_amended_20tax_20returns More:taxesFree Taxes OnlineFree Tax FormFile 2014 Taxes2012 1040 Ez2011 1040 Tax Forms1040ez Tax Forms 2011How To File A Tax Return For 2012Federal Income Tax AmendmentAmendment On TaxesHow Far Back Can You File Taxes

2005 Tax Return Online

2005 tax return online Publication 550 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. 2005 tax return online Tax questions. 2005 tax return online Future Developments For the latest information about developments related to Publication 550, such as legislation enacted after it was published, go to www. 2005 tax return online irs. 2005 tax return online gov/pub550. 2005 tax return online What's New Net investment income tax (NIIT). 2005 tax return online  Beginning in 2013, you may be subject to the NIIT. 2005 tax return online The NIIT applies at a rate of 3. 2005 tax return online 8% to certain net investment income of individuals, estates, and trusts that have income above statutory threshold amounts. 2005 tax return online See Net investment income tax (NIIT) , later. 2005 tax return online Maximum capital gain rates. 2005 tax return online  For 2013, the maximum capital gain rates are 0%, 15%, 20%, 25%, and 28%. 2005 tax return online See Capital Gain Tax Rates , later, for more information. 2005 tax return online Gift tax exclusion amount increased. 2005 tax return online  For calendar year 2013, the first $14,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts. 2005 tax return online See Property Received as a Gift , later. 2005 tax return online Reminders Mutual fund distributions. 2005 tax return online  Publication 564, Mutual Fund Distributions, has been incorporated into this publication. 2005 tax return online Foreign source income. 2005 tax return online  If you are a U. 2005 tax return online S. 2005 tax return online citizen with investment income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt by U. 2005 tax return online S. 2005 tax return online law. 2005 tax return online This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer. 2005 tax return online Employee stock options. 2005 tax return online  If you received an option to buy or sell stock or other property as payment for your services, see Publication 525, Taxable and Nontaxable Income, for the special tax rules that apply. 2005 tax return online Photographs of missing children. 2005 tax return online  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 2005 tax return online Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 2005 tax return online 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. 2005 tax return online Introduction This publication provides information on the tax treatment of investment income and expenses. 2005 tax return online It includes information on the tax treatment of investment income and expenses for individual shareholders of mutual funds or other regulated investment companies, such as money market funds. 2005 tax return online It explains what investment income is taxable and what investment expenses are deductible. 2005 tax return online It explains when and how to show these items on your tax return. 2005 tax return online It also explains how to determine and report gains and losses on the disposition of investment property and provides information on property trades and tax shelters. 2005 tax return online The glossary at the end of this publication defines many of the terms used. 2005 tax return online Investment income. 2005 tax return online   This generally includes interest, dividends, capital gains, and other types of distributions including mutual fund distributions. 2005 tax return online Investment expenses. 2005 tax return online   These include interest paid or incurred to acquire investment property and expenses to manage or collect income from investment property. 2005 tax return online Qualified retirement plans and IRAs. 2005 tax return online   The rules in this publication do not apply to mutual fund shares held in individual retirement arrangements (IRAs), section 401(k) plans, and other qualified retirement plans. 2005 tax return online The value of the mutual fund shares and earnings allocated to you are included in your retirement plan assets and stay tax free generally until the plan distributes them to you. 2005 tax return online The tax rules that apply to retirement plan distributions are explained in the following publications. 2005 tax return online Publication 560, Retirement Plans for Small Business. 2005 tax return online Publication 571, Tax-Sheltered Annuity Plans. 2005 tax return online Publication 575, Pension and Annuity Income. 2005 tax return online Publication 590, Individual Retirement Arrangements (IRAs). 2005 tax return online Publication 721, Tax Guide to U. 2005 tax return online S. 2005 tax return online Civil Service Retirement Benefits. 2005 tax return online    Comments and suggestions. 2005 tax return online   We welcome your comments about this publication and your suggestions for future editions. 2005 tax return online   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 2005 tax return online NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2005 tax return online Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2005 tax return online   You can send your comments from www. 2005 tax return online irs. 2005 tax return online gov/formspubs/. 2005 tax return online Click on “More Information” and then on “Comment on Tax Forms and Publications. 2005 tax return online ”   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. 2005 tax return online Ordering forms and publications. 2005 tax return online   Visit www. 2005 tax return online irs. 2005 tax return online 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. 2005 tax return online Internal Revenue Service 1201 N. 2005 tax return online Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 2005 tax return online   If you have a tax question, check the information available on IRS. 2005 tax return online gov or call 1-800-829-1040. 2005 tax return online We cannot answer tax questions sent to either of the above addresses. 2005 tax return online Prev  Up  Next   Home   More Online Publications
Español

The 2005 Tax Return Online

2005 tax return online 3. 2005 tax return online   Exclusions From Gross Income Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident AliensForeign Earned Income and Housing Amount Nonresident AliensInterest Income Dividend Income Services Performed for Foreign Employer Gambling Winnings From Dog or Horse Racing Gain From the Sale of Your Main Home Scholarships and Fellowship GrantsExpenses that do not qualify. 2005 tax return online Introduction Resident and nonresident aliens are allowed exclusions from gross income if they meet certain conditions. 2005 tax return online An exclusion from gross income is generally income you receive that is not included in your U. 2005 tax return online S. 2005 tax return online income and is not subject to U. 2005 tax return online S. 2005 tax return online tax. 2005 tax return online This chapter covers some of the more common exclusions allowed to resident and nonresident aliens. 2005 tax return online Topics - This chapter discusses: Nontaxable interest, Nontaxable dividends, Certain compensation paid by a foreign employer, Gain from sale of home, and Scholarships and fellowship grants. 2005 tax return online Useful Items - You may want to see: Publication 54 Tax Guide for U. 2005 tax return online S. 2005 tax return online Citizens and Resident Aliens Abroad 523 Selling Your Home See chapter 12 for information about getting these publications. 2005 tax return online Resident Aliens Resident aliens may be able to exclude the following items from their gross income. 2005 tax return online Foreign Earned Income and Housing Amount If you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, you may qualify for the foreign earned income exclusion. 2005 tax return online The exclusion is $97,600 in 2013. 2005 tax return online In addition, you may be able to exclude or deduct certain foreign housing amounts. 2005 tax return online You may also qualify if you are a bona fide resident of a foreign country and you are a citizen or national of a country with which the United States has an income tax treaty. 2005 tax return online For more information, see Publication 54. 2005 tax return online Foreign country. 2005 tax return online    A foreign country is any territory under the sovereignty of a government other than that of the United States. 2005 tax return online   The term “foreign country” includes the country's territorial waters and airspace, but not international waters and the airspace above them. 2005 tax return online It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. 2005 tax return online   The term “foreign country” does not include U. 2005 tax return online S. 2005 tax return online possessions or territories. 2005 tax return online It does not include the Antarctic region. 2005 tax return online Nonresident Aliens Nonresident aliens can exclude the following items from their gross income. 2005 tax return online Interest Income Interest income that is not connected with a U. 2005 tax return online S. 2005 tax return online trade or business is excluded from income if it is from: Deposits (including certificates of deposit) with persons in the banking business, Deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law (if the interest paid or credited can be deducted by the association), and Amounts held by an insurance company under an agreement to pay interest on them. 2005 tax return online State and local government obligations. 2005 tax return online   Interest on obligations of a state or political subdivision, the District of Columbia, or a U. 2005 tax return online S. 2005 tax return online possession, generally is not included in income. 2005 tax return online However, interest on certain private activity bonds, arbitrage bonds, and certain bonds not in registered form is included in income. 2005 tax return online Portfolio interest. 2005 tax return online   Interest and original issue discount that qualifies as portfolio interest is not subject to NRA withholding. 2005 tax return online To qualify as portfolio interest, the interest must be paid on obligations issued after July 18, 1984, and otherwise subject to NRA withholding. 2005 tax return online Note. 2005 tax return online For obligations issued after March 18, 2012, portfolio interest does not include interest paid on debt that is not in registered form. 2005 tax return online Before March 19, 2012, portfolio interest included interest on certain registered and nonregistered (bearer) bonds if the obligations meet the requirements described below. 2005 tax return online Obligations in registered form. 2005 tax return online   Portfolio interest includes interest paid on an obligation that is in registered form, and for which you have received documentation that the beneficial owner of the obligation is not a United States person. 2005 tax return online   Generally, an obligation is in registered form if: (i) the obligation is registered as to both principal and any stated interest with the issuer (or its agent) and any transfer of the obligation may be effected only by surrender of the old obligation and reissuance to the new holder; (ii) the right to principal and stated interest with respect to the obligation may be transferred only through a book entry system maintained by the issuer or its agent; or (iii) the obligation is registered as to both principal and stated interest with the issuer or its agent and can be transferred both by surrender and reissuance and through a book entry system. 2005 tax return online   An obligation that would otherwise be considered to be in registered form is not considered to be in registered form as of a particular time if it can be converted at any time in the future into an obligation that is not in registered form. 2005 tax return online For more information on whether obligations are considered to be in registered form, see Portfolio interest in Publication 515. 2005 tax return online Obligations not in registered form. 2005 tax return online    For obligations issued before March 19, 2012, interest on an obligation that is not in registered form (bearer obligation) is portfolio interest if the obligation is foreign-targeted. 2005 tax return online A bearer obligation is foreign-targeted if: There are arrangements to ensure that the obligation will be sold, or resold in connection with the original issue, only to a person who is not a United States person, Interest on the obligation is payable only outside the United States and its possessions, and The face of the obligation contains a statement that any United States person who holds the obligation will be subject to limits under the United States income tax laws. 2005 tax return online   Documentation is not required for interest on bearer obligations to qualify as portfolio interest. 2005 tax return online In some cases, however, you may need documentation for purposes of Form 1099 reporting and backup withholding. 2005 tax return online Interest that does not qualify as portfolio interest. 2005 tax return online   Payments to certain persons and payments of contingent interest do not qualify as portfolio interest. 2005 tax return online You must withhold at the statutory rate on such payments unless some other exception, such as a treaty provision, applies. 2005 tax return online Contingent interest. 2005 tax return online   Portfolio interest does not include contingent interest. 2005 tax return online Contingent interest is either of the following: Interest that is determined by reference to: Any receipts, sales, or other cash flow of the debtor or related person, Income or profits of the debtor or related person, Any change in value of any property of the debtor or a related person, or Any dividend, partnership distributions, or similar payments made by the debtor or a related person. 2005 tax return online For exceptions, see Internal Revenue Code section 871(h)(4)(C). 2005 tax return online Any other type of contingent interest that is identified by the Secretary of the Treasury in regulations. 2005 tax return online Related persons. 2005 tax return online   Related persons include the following. 2005 tax return online Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. 2005 tax return online ), and lineal descendants (children, grandchildren, etc. 2005 tax return online ). 2005 tax return online Any person who is a party to any arrangement undertaken for the purpose of avoiding the contingent interest rules. 2005 tax return online Certain corporations, partnerships, and other entities. 2005 tax return online For details, see Nondeductible Loss in chapter 2 of Publication 544. 2005 tax return online Exception for existing debt. 2005 tax return online   Contingent interest does not include interest paid or accrued on any debt with a fixed term that was issued: On or before April 7, 1993, or After April 7, 1993, pursuant to a written binding contract in effect on that date and at all times thereafter before that debt was issued. 2005 tax return online Dividend Income The following dividend income is exempt from the 30% tax. 2005 tax return online Certain dividends paid by foreign corporations. 2005 tax return online   There is no 30% tax on U. 2005 tax return online S. 2005 tax return online source dividends you receive from a foreign corporation. 2005 tax return online See Second exception under Dividends in chapter 2 for how to figure the amount of U. 2005 tax return online S. 2005 tax return online source dividends. 2005 tax return online Certain interest-related dividends. 2005 tax return online   There is no 30% tax on interest-related dividends from sources within the United States that you receive from a mutual fund or other regulated investment company in 2013. 2005 tax return online The mutual fund will designate in writing which dividends are interest-related dividends. 2005 tax return online Certain short-term capital gain dividends. 2005 tax return online   There may not be any 30% tax on certain short-term capital gain dividends from sources within the United States that you receive from a mutual fund or other regulated investment company. 2005 tax return online The mutual fund will designate in writing which dividends are short-term capital gain dividends. 2005 tax return online This tax relief will not apply to you if you are present in the United States for 183 days or more during your tax year. 2005 tax return online Services Performed for Foreign Employer If you were paid by a foreign employer, your U. 2005 tax return online S. 2005 tax return online source income may be exempt from U. 2005 tax return online S. 2005 tax return online tax, but only if you meet one of the situations discussed next. 2005 tax return online Employees of foreign persons, organizations, or offices. 2005 tax return online   Income for personal services performed in the United States as a nonresident alien is not considered to be from U. 2005 tax return online S. 2005 tax return online sources and is tax exempt if you meet all three of the following conditions. 2005 tax return online You perform personal services as an employee of or under a contract with a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in a trade or business in the United States; or you work for an office or place of business maintained in a foreign country or possession of the United States by a U. 2005 tax return online S. 2005 tax return online corporation, a U. 2005 tax return online S. 2005 tax return online partnership, or a U. 2005 tax return online S. 2005 tax return online citizen or resident. 2005 tax return online You perform these services while you are a nonresident alien temporarily present in the United States for a period or periods of not more than a total of 90 days during the tax year. 2005 tax return online Your pay for these services is not more than $3,000. 2005 tax return online If you do not meet all three conditions, your income from personal services performed in the United States is U. 2005 tax return online S. 2005 tax return online source income and is taxed according to the rules in chapter 4. 2005 tax return online   If your pay for these services is more than $3,000, the entire amount is income from a trade or business within the United States. 2005 tax return online To find if your pay is more than $3,000, do not include any amounts you get from your employer for advances or reimbursements of business travel expenses, if you were required to and did account to your employer for those expenses. 2005 tax return online If the advances or reimbursements are more than your expenses, include the excess in your pay for these services. 2005 tax return online   A day means a calendar day during any part of which you are physically present in the United States. 2005 tax return online Example 1. 2005 tax return online During 2013, Henry Smythe, a nonresident alien from a nontreaty country, worked for an overseas office of a U. 2005 tax return online S. 2005 tax return online partnership. 2005 tax return online Henry, who uses the calendar year as his tax year, was temporarily present in the United States for 60 days during 2013 performing personal services for the overseas office of the partnership. 2005 tax return online That office paid him a total gross salary of $2,800 for those services. 2005 tax return online During 2013, he was not engaged in a trade or business in the United States. 2005 tax return online The salary is not considered U. 2005 tax return online S. 2005 tax return online source income and is exempt from U. 2005 tax return online S. 2005 tax return online tax. 2005 tax return online Example 2. 2005 tax return online The facts are the same as in Example 1, except that Henry's total gross salary for the services performed in the United States during 2013 was $4,500. 2005 tax return online He received $2,875 in 2013, and $1,625 in 2014. 2005 tax return online During 2013, he was engaged in a trade or business in the United States because the compensation for his personal services in the United States was more than $3,000. 2005 tax return online Henry's salary is U. 2005 tax return online S. 2005 tax return online source income and is taxed under the rules in chapter 4. 2005 tax return online Crew members. 2005 tax return online   Compensation for services performed by a nonresident alien in connection with the individual's temporary presence in the United States as a regular crew member of a foreign vessel (for example, a boat or ship) engaged in transportation between the United States and a foreign country or U. 2005 tax return online S. 2005 tax return online possession is not U. 2005 tax return online S. 2005 tax return online source income and is exempt from U. 2005 tax return online S. 2005 tax return online tax. 2005 tax return online This exemption does not apply to compensation for services performed on foreign aircraft. 2005 tax return online Students and exchange visitors. 2005 tax return online   Nonresident alien students and exchange visitors present in the United States under “F,” “J,” or “Q” visas can exclude from gross income pay received from a foreign employer. 2005 tax return online   This group includes bona fide students, scholars, trainees, teachers, professors, research assistants, specialists, or leaders in a field of specialized knowledge or skill, or persons of similar description. 2005 tax return online It also includes the alien's spouse and minor children if they come with the alien or come later to join the alien. 2005 tax return online   A nonresident alien temporarily present in the United States under a “J” visa includes an alien individual entering the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. 2005 tax return online Foreign employer. 2005 tax return online   A foreign employer is: A nonresident alien individual, foreign partnership, or foreign corporation, or An office or place of business maintained in a foreign country or in a U. 2005 tax return online S. 2005 tax return online possession by a U. 2005 tax return online S. 2005 tax return online corporation, a U. 2005 tax return online S. 2005 tax return online partnership, or an individual who is a U. 2005 tax return online S. 2005 tax return online citizen or resident. 2005 tax return online   The term “foreign employer” does not include a foreign government. 2005 tax return online Pay from a foreign government that is exempt from U. 2005 tax return online S. 2005 tax return online income tax is discussed in chapter 10. 2005 tax return online Income from certain annuities. 2005 tax return online   Do not include in income any annuity received under a qualified annuity plan or from a qualified trust exempt from U. 2005 tax return online S. 2005 tax return online income tax if you meet both of the following conditions. 2005 tax return online You receive the annuity only because: You performed personal services outside the United States while you were a nonresident alien, or You performed personal services inside the United States while you were a nonresident alien and you met the three conditions, described earlier, under Employees of foreign persons, organizations, or offices . 2005 tax return online At the time the first amount is paid as an annuity under the plan (or by the trust), 90% or more of the employees for whom contributions or benefits are provided under the annuity plan (or under the plan of which the trust is a part) are U. 2005 tax return online S. 2005 tax return online citizens or residents. 2005 tax return online   If the annuity qualifies under condition (1) but not condition (2) above, you do not have to include the amount in income if: You are a resident of a country that gives a substantially equal exclusion to U. 2005 tax return online S. 2005 tax return online citizens and residents, or You are a resident of a beneficiary developing country under Title V of the Trade Act of 1974. 2005 tax return online   If you are not sure whether the annuity is from a qualified annuity plan or qualified trust, ask the person who made the payment. 2005 tax return online Income affected by treaties. 2005 tax return online   Income of any kind that is exempt from U. 2005 tax return online S. 2005 tax return online tax under a treaty to which the United States is a party is excluded from your gross income. 2005 tax return online Income on which the tax is only limited by treaty, however, is included in gross income. 2005 tax return online See chapter 9. 2005 tax return online Gambling Winnings From Dog or Horse Racing You can exclude from your gross income winnings from legal wagers initiated outside the United States in a parimutuel pool with respect to a live horse or dog race in the United States. 2005 tax return online Gain From the Sale of Your Main Home If you sold your main home, you may be able to exclude up to $250,000 of the gain on the sale of your home. 2005 tax return online If you are married and file a joint return, you may be able to exclude up to $500,000. 2005 tax return online For information on the requirements for this exclusion, see Publication 523. 2005 tax return online This exclusion does not apply to nonresident aliens who are subject to the expatriation tax rules discussed in chapter 4. 2005 tax return online Scholarships and Fellowship Grants If you are a candidate for a degree, you may be able to exclude from your income part or all of the amounts you receive as a qualified scholarship. 2005 tax return online The rules discussed here apply to both resident and nonresident aliens. 2005 tax return online If a nonresident alien receives a grant that is not from U. 2005 tax return online S. 2005 tax return online sources, it is not subject to U. 2005 tax return online S. 2005 tax return online tax. 2005 tax return online See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your grant is from U. 2005 tax return online S. 2005 tax return online sources. 2005 tax return online A scholarship or fellowship is excludable from income only if: You are a candidate for a degree at an eligible educational institution, and You use the scholarship or fellowship to pay qualified education expenses. 2005 tax return online Candidate for a degree. 2005 tax return online   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. 2005 tax return online Eligible educational institution. 2005 tax return online   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. 2005 tax return online Qualified education expenses. 2005 tax return online   These are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. 2005 tax return online These items must be required of all students in your course of instruction. 2005 tax return online However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses. 2005 tax return online Expenses that do not qualify. 2005 tax return online   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. 2005 tax return online This is true even if the fee must be paid to the institution as a condition of enrollment or attendance. 2005 tax return online Scholarship or fellowship amounts used to pay these costs are taxable. 2005 tax return online Amounts used to pay expenses that do not qualify. 2005 tax return online   A scholarship amount used to pay any expense that does not qualify is taxable, even if the expense is a fee that must be paid to the institution as a condition of enrollment or attendance. 2005 tax return online Payment for services. 2005 tax return online   You cannot exclude from income the portion of any scholarship, fellowship, or tuition reduction that represents payment for past, present, or future teaching, research, or other services. 2005 tax return online This is true even if all candidates for a degree are required to perform the services as a condition for receiving the degree. 2005 tax return online Example. 2005 tax return online On January 7, Maria Gomez is notified of a scholarship of $2,500 for the spring semester. 2005 tax return online As a condition for receiving the scholarship, Maria must serve as a part-time teaching assistant. 2005 tax return online Of the $2,500 scholarship, $1,000 represents payment for her services. 2005 tax return online Assuming that Maria meets all other conditions, she can exclude no more than $1,500 from income as a qualified scholarship. 2005 tax return online Prev  Up  Next   Home   More Online Publications