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

2010 Tax Preparation

2011 Irs Tax Forms AvailableHow To File Amended Return2012 Federal Tax Forms2011 10402011 Tax Form 1040Free Online Tax FilingFile An Amended Tax Return Online FreeIncome Tax Return 1040ezMilitary Tax Filing1040ez Income Tax FormFederal Tax AmendmentHow Do I File A 1040xFiling A Amended Tax Return Form 1040xHow Do I Amend My 2013 Tax ReturnTurbotax 2012 Amended ReturnHrblock Login1040 Ez OnlineHow To File State Taxes OnlyEz Form 2013Filing 1040x InstructionsIncometaxTax Form 1040Amendment FormIrs Mailing Address 1040ezFree State Return TurbotaxFree Tax E File 2012File An Extension On My TaxesTax Forms For StudentsEz1040 FormIrs Free Tax Filing2010 Income Tax Table2011 Tax Forms 1040 Ez1040x Fillable FormsWww Irs Gov Efile 941Filing Income Tax ReturnHow To File 1040ezVita Tax 2014Turbotax FreeFederal Form 1040xFree 1040x Forms

2010 Tax Preparation

2010 tax preparation 7. 2010 tax preparation   Coverdell Education Savings Account (ESA) Table of Contents Introduction What Is a Coverdell ESAQualified Education Expenses ContributionsContribution Limits Additional Tax on Excess Contributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Transfer Because of Divorce DistributionsTax-Free Distributions Taxable Distributions When Assets Must Be Distributed Introduction If your modified adjusted gross income (MAGI) is less than $110,000 ($220,000 if filing a joint return), you may be able to establish a Coverdell ESA to finance the qualified education expenses of a designated beneficiary. 2010 tax preparation For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return. 2010 tax preparation There is no limit on the number of separate Coverdell ESAs that can be established for a designated beneficiary. 2010 tax preparation However, total contributions for the beneficiary in any year cannot be more than $2,000, no matter how many accounts have been established. 2010 tax preparation See Contributions , later. 2010 tax preparation This benefit applies not only to higher education expenses, but also to elementary and secondary education expenses. 2010 tax preparation What is the tax benefit of the Coverdell ESA. 2010 tax preparation   Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed. 2010 tax preparation   If, for a year, distributions from an account are not more than a designated beneficiary's qualified education expenses at an eligible educational institution, the beneficiary will not owe tax on the distributions. 2010 tax preparation See Tax-Free Distributions , later. 2010 tax preparation    Table 7-1 summarizes the main features of the Coverdell ESA. 2010 tax preparation Table 7-1. 2010 tax preparation Coverdell ESA at a Glance Do not rely on this table alone. 2010 tax preparation It provides only general highlights. 2010 tax preparation See the text for definitions of terms in bold type and for more complete explanations. 2010 tax preparation Question Answer What is a Coverdell ESA? A savings account that is set up to pay the qualified education expenses of a designated beneficiary. 2010 tax preparation Where can it be established? It can be opened in the United States at any bank or other IRS-approved entity that offers Coverdell ESAs. 2010 tax preparation Who can have a Coverdell ESA? Any beneficiary who is under age 18 or is a special needs beneficiary. 2010 tax preparation Who can contribute to a Coverdell ESA? Generally, any individual (including the beneficiary) whose modified adjusted gross income for the year is less than $110,000 ($220,000 in the case of a joint return). 2010 tax preparation Are distributions tax free? Yes, if the distributions are not more than the beneficiary's adjusted qualified education expenses for the year. 2010 tax preparation What Is a Coverdell ESA A Coverdell ESA is a trust or custodial account created or organized in the United States only for the purpose of paying the qualified education expenses of the Designated beneficiary (defined later) of the account. 2010 tax preparation When the account is established, the designated beneficiary must be under age 18 or a special needs beneficiary. 2010 tax preparation To be treated as a Coverdell ESA, the account must be designated as a Coverdell ESA when it is created. 2010 tax preparation The document creating and governing the account must be in writing and must satisfy the following requirements. 2010 tax preparation The trustee or custodian must be a bank or an entity approved by the IRS. 2010 tax preparation The document must provide that the trustee or custodian can only accept a contribution that meets all of the following conditions. 2010 tax preparation The contribution is in cash. 2010 tax preparation The contribution is made before the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. 2010 tax preparation The contribution would not result in total contributions for the year (not including rollover contributions) being more than $2,000. 2010 tax preparation Money in the account cannot be invested in life insurance contracts. 2010 tax preparation Money in the account cannot be combined with other property except in a common trust fund or common investment fund. 2010 tax preparation The balance in the account generally must be distributed within 30 days after the earlier of the following events. 2010 tax preparation The beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary. 2010 tax preparation The beneficiary's death. 2010 tax preparation Qualified Education Expenses Generally, these are expenses required for the enrollment or attendance of the designated beneficiary at an eligible educational institution. 2010 tax preparation For purposes of Coverdell ESAs, the expenses can be either qualified higher education expenses or qualified elementary and secondary education expenses. 2010 tax preparation Designated beneficiary. 2010 tax preparation   This is the individual named in the document creating the trust or custodial account to receive the benefit of the funds in the account. 2010 tax preparation Contributions to a qualified tuition program (QTP). 2010 tax preparation   A contribution to a QTP is a qualified education expense if the contribution is on behalf of the designated beneficiary of the Coverdell ESA. 2010 tax preparation In the case of a change in beneficiary, this is a qualified expense only if the new beneficiary is a family member of that designated beneficiary. 2010 tax preparation See chapter 8, Qualified Tuition Program . 2010 tax preparation Eligible Educational Institution For purposes of Coverdell ESAs, an eligible educational institution can be either an eligible postsecondary school or an eligible elementary or secondary school. 2010 tax preparation Eligible postsecondary school. 2010 tax preparation   This is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. 2010 tax preparation S. 2010 tax preparation Department of Education. 2010 tax preparation It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2010 tax preparation The educational institution should be able to tell you if it is an eligible educational institution. 2010 tax preparation   Certain educational institutions located outside the United States also participate in the U. 2010 tax preparation S. 2010 tax preparation Department of Education's Federal Student Aid (FSA) programs. 2010 tax preparation Eligible elementary or secondary school. 2010 tax preparation   This is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. 2010 tax preparation Qualified Higher Education Expenses These are expenses related to enrollment or attendance at an eligible postsecondary school. 2010 tax preparation As shown in the following list, to be qualified, some of the expenses must be required by the school and some must be incurred by students who are enrolled at least half-time. 2010 tax preparation The following expenses must be required for enrollment or attendance of a designated beneficiary at an eligible postsecondary school. 2010 tax preparation Tuition and fees. 2010 tax preparation Books, supplies, and equipment. 2010 tax preparation Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible postsecondary school. 2010 tax preparation Expenses for room and board must be incurred by students who are enrolled at least half-time (defined below). 2010 tax preparation The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. 2010 tax preparation The allowance for room and board, as determined by the school, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. 2010 tax preparation The actual amount charged if the student is residing in housing owned or operated by the school. 2010 tax preparation Half-time student. 2010 tax preparation   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic work load for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. 2010 tax preparation Qualified Elementary and Secondary Education Expenses These are expenses related to enrollment or attendance at an eligible elementary or secondary school. 2010 tax preparation As shown in the following list, to be qualified, some of the expenses must be required or provided by the school. 2010 tax preparation There are special rules for computer-related expenses. 2010 tax preparation The following expenses must be incurred by a designated beneficiary in connection with enrollment or attendance at an eligible elementary or secondary school. 2010 tax preparation Tuition and fees. 2010 tax preparation Books, supplies, and equipment. 2010 tax preparation Academic tutoring. 2010 tax preparation Special needs services for a special needs beneficiary. 2010 tax preparation The following expenses must be required or provided by an eligible elementary or secondary school in connection with attendance or enrollment at the school. 2010 tax preparation Room and board. 2010 tax preparation Uniforms. 2010 tax preparation Transportation. 2010 tax preparation Supplementary items and services (including extended day programs). 2010 tax preparation The purchase of computer technology, equipment, or Internet access and related services is a qualified elementary and secondary education expense if it is to be used by the beneficiary and the beneficiary's family during any of the years the beneficiary is in elementary or secondary school. 2010 tax preparation (This does not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature. 2010 tax preparation ) Contributions Any individual (including the designated beneficiary) can contribute to a Coverdell ESA if the individual's MAGI (defined later under Contribution Limits ) for the year is less than $110,000. 2010 tax preparation For individuals filing joint returns, that amount is $220,000. 2010 tax preparation Organizations, such as corporations and trusts, can also contribute to Coverdell ESAs. 2010 tax preparation There is no requirement that an organization's income be below a certain level. 2010 tax preparation Contributions must meet all of the following requirements. 2010 tax preparation They must be in cash. 2010 tax preparation They cannot be made after the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. 2010 tax preparation They must be made by the due date of the contributor's tax return (not including extensions). 2010 tax preparation Contributions can be made to one or several Coverdell ESAs for the same designated beneficiary provided that the total contributions are not more than the contribution limits (defined later) for a year. 2010 tax preparation Contributions can be made, without penalty, to both a Coverdell ESA and a QTP in the same year for the same beneficiary. 2010 tax preparation Table 7-2 summarizes many of the features of contributing to a Coverdell ESA. 2010 tax preparation When contributions considered made. 2010 tax preparation   Contributions made to a Coverdell ESA for the preceding tax year are considered to have been made on the last day of the preceding year. 2010 tax preparation They must be made by the due date (not including extensions) for filing your return for the preceding year. 2010 tax preparation   For example, if you make a contribution to a Coverdell ESA in February 2014, and you designate it as a contribution for 2013, you are considered to have made that contribution on December 31, 2013. 2010 tax preparation Contribution Limits There are two yearly limits: One on the total amount that can be contributed for each designated beneficiary in any year, and One on the amount that any individual can contribute for any one designated beneficiary for a year. 2010 tax preparation Limit for each designated beneficiary. 2010 tax preparation   For 2013, the total of all contributions to all Coverdell ESAs set up for the benefit of any one designated beneficiary cannot be more than $2,000. 2010 tax preparation This includes contributions (other than rollovers) to all the beneficiary's Coverdell ESAs from all sources. 2010 tax preparation Rollovers are discussed under Rollovers and Other Transfers , later. 2010 tax preparation Example. 2010 tax preparation When Maria Luna was born in 2012, three separate Coverdell ESAs were set up for her, one by her parents, one by her grandfather, and one by her aunt. 2010 tax preparation In 2013, the total of all contributions to Maria's three Coverdell ESAs cannot be more than $2,000. 2010 tax preparation For example, if her grandfather contributed $2,000 to one of her Coverdell ESAs, no one else could contribute to any of her three accounts. 2010 tax preparation Or, if her parents contributed $1,000 and her aunt $600, her grandfather or someone else could contribute no more than $400. 2010 tax preparation These contributions could be put into any of Maria's Coverdell ESA accounts. 2010 tax preparation Limit for each contributor. 2010 tax preparation   Generally, you can contribute up to $2,000 for each designated beneficiary for 2013. 2010 tax preparation This is the most you can contribute for the benefit of any one beneficiary for the year, regardless of the number of Coverdell ESAs set up for the beneficiary. 2010 tax preparation Example. 2010 tax preparation The facts are the same as in the previous example except that Maria Luna's older brother, Edgar, also has a Coverdell ESA. 2010 tax preparation If their grandfather contributed $2,000 to Maria's Coverdell ESA in 2013, he could also contribute $2,000 to Edgar's Coverdell ESA. 2010 tax preparation Reduced limit. 2010 tax preparation   Your contribution limit may be reduced. 2010 tax preparation If your MAGI (defined on this page) is between $95,000 and $110,000 (between $190,000 and $220,000 if filing a joint return), the $2,000 limit for each designated beneficiary is gradually reduced (see Figuring the limit , later). 2010 tax preparation If your MAGI is $110,000 or more ($220,000 or more if filing a joint return), you cannot contribute to anyone's Coverdell ESA. 2010 tax preparation Table 7-2. 2010 tax preparation Coverdell ESA Contributions at a Glance Do not rely on this table alone. 2010 tax preparation It provides only general highlights. 2010 tax preparation See the text for more complete explanations. 2010 tax preparation Question Answer Are contributions deductible? No. 2010 tax preparation What is the annual contribution limit per designated beneficiary? $2,000 for each designated beneficiary. 2010 tax preparation What if more than one Coverdell ESA has been opened for the same designated beneficiary? The annual contribution limit is $2,000 for each beneficiary, no matter how many Coverdell ESAs are set up for that beneficiary. 2010 tax preparation What if more than one individual makes contributions for the same designated beneficiary? The annual contribution limit is $2,000 per beneficiary, no matter how many individuals contribute. 2010 tax preparation Can contributions other than cash be made to a Coverdell ESA? No. 2010 tax preparation When must contributions stop? No contributions can be made to a beneficiary's Coverdell ESA after he or she reaches age 18, unless the beneficiary is a special needs beneficiary. 2010 tax preparation Modified adjusted gross income (MAGI). 2010 tax preparation   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. 2010 tax preparation MAGI when using Form 1040A. 2010 tax preparation   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. 2010 tax preparation MAGI when using Form 1040. 2010 tax preparation   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. 2010 tax preparation MAGI when using Form 1040NR. 2010 tax preparation   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form. 2010 tax preparation MAGI when using Form 1040NR-EZ. 2010 tax preparation   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form. 2010 tax preparation   If you have any of these adjustments, you can use Worksheet 7-1. 2010 tax preparation MAGI for a Coverdell ESA , later, to figure your MAGI for Form 1040. 2010 tax preparation Worksheet 7-1. 2010 tax preparation MAGI for a Coverdell ESA 1. 2010 tax preparation Enter your adjusted gross income  (Form 1040, line 38)   1. 2010 tax preparation   2. 2010 tax preparation Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. 2010 tax preparation       3. 2010 tax preparation Enter your foreign housing deduction (Form 2555, line 50)   3. 2010 tax preparation         4. 2010 tax preparation Enter the amount of income from Puerto Rico you are excluding   4. 2010 tax preparation       5. 2010 tax preparation Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. 2010 tax preparation       6. 2010 tax preparation Add lines 2, 3, 4, and 5   6. 2010 tax preparation   7. 2010 tax preparation Add lines 1 and 6. 2010 tax preparation This is your  modified adjusted gross income   7. 2010 tax preparation   Figuring the limit. 2010 tax preparation    To figure the limit on the amount you can contribute for each designated beneficiary, multiply $2,000 by a fraction. 2010 tax preparation The numerator (top number) is your MAGI minus $95,000 ($190,000 if filing a joint return). 2010 tax preparation The denominator (bottom number) is $15,000 ($30,000 if filing a joint return). 2010 tax preparation Subtract the result from $2,000. 2010 tax preparation This is the amount you can contribute for each beneficiary. 2010 tax preparation You can use Worksheet 7-2. 2010 tax preparation Coverdell ESA Contribution Limit to figure the limit on contributions. 2010 tax preparation    Worksheet 7-2. 2010 tax preparation Coverdell ESA Contribution Limit 1. 2010 tax preparation Maximum contribution   1. 2010 tax preparation $2,000 2. 2010 tax preparation Enter your modified adjusted gross income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. 2010 tax preparation   3. 2010 tax preparation Enter $190,000 if married filing jointly; $95,000 for all other filers   3. 2010 tax preparation   4. 2010 tax preparation Subtract line 3 from line 2. 2010 tax preparation If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. 2010 tax preparation   5. 2010 tax preparation Enter $30,000 if married filing jointly; $15,000 for all other filers   5. 2010 tax preparation     Note. 2010 tax preparation If the amount on line 4 is greater than or equal to the amount on line 5, stop here. 2010 tax preparation You are not allowed to contribute to a Coverdell ESA for 2013. 2010 tax preparation       6. 2010 tax preparation Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. 2010 tax preparation . 2010 tax preparation 7. 2010 tax preparation Multiply line 1 by line 6   7. 2010 tax preparation   8. 2010 tax preparation Subtract line 7 from line 1   8. 2010 tax preparation   Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. 2010 tax preparation Example. 2010 tax preparation Paul, who is single, had a MAGI of $96,500 for 2013. 2010 tax preparation Paul can contribute up to $1,800 in 2013 for each beneficiary, as shown in the illustrated Worksheet 7-2, Coverdell ESA Contribution Limit–Illustrated. 2010 tax preparation Worksheet 7-2. 2010 tax preparation Coverdell ESA Contribution Limit—Illustrated 1. 2010 tax preparation Maximum contribution   1. 2010 tax preparation $2,000 2. 2010 tax preparation Enter your modified adjusted gross  income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. 2010 tax preparation 96,500 3. 2010 tax preparation Enter $190,000 if married filing jointly; $95,000 for all other filers   3. 2010 tax preparation 95,000 4. 2010 tax preparation Subtract line 3 from line 2. 2010 tax preparation If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. 2010 tax preparation 1,500 5. 2010 tax preparation Enter $30,000 if married filing jointly; $15,000 for all other filers   5. 2010 tax preparation 15,000   Note. 2010 tax preparation If the amount on line 4 is greater than or equal to the amount on line 5,  stop here. 2010 tax preparation You are not allowed to  contribute to a Coverdell ESA for 2013. 2010 tax preparation       6. 2010 tax preparation Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. 2010 tax preparation . 2010 tax preparation 100 7. 2010 tax preparation Multiply line 1 by line 6   7. 2010 tax preparation 200 8. 2010 tax preparation Subtract line 7 from line 1   8. 2010 tax preparation 1,800 Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. 2010 tax preparation Additional Tax on Excess Contributions The beneficiary must pay a 6% excise tax each year on excess contributions that are in a Coverdell ESA at the end of the year. 2010 tax preparation Excess contributions are the total of the following two amounts. 2010 tax preparation Contributions to any designated beneficiary's Coverdell ESA for the year that are more than $2,000 (or, if less, the total of each contributor's limit for the year, as discussed earlier). 2010 tax preparation Excess contributions for the preceding year, reduced by the total of the following two amounts: Distributions (other than those rolled over as discussed later) during the year, and The contribution limit for the current year minus the amount contributed for the current year. 2010 tax preparation Exceptions. 2010 tax preparation   The excise tax does not apply if excess contributions made during 2013 (and any earnings on them) are distributed before the first day of the sixth month of the following tax year (June 1, 2014, for a calendar year taxpayer). 2010 tax preparation   However, you must include the distributed earnings in gross income for the year in which the excess contribution was made. 2010 tax preparation You should receive Form 1099-Q, Payments From Qualified Education Programs, from each institution from which excess contributions were distributed. 2010 tax preparation Box 2 of that form will show the amount of earnings on your excess contributions. 2010 tax preparation Code “2” or “3” entered in the blank box below boxes 5 and 6 indicate the year in which the earnings are taxable. 2010 tax preparation See Instructions for Recipient on the back of copy B of your Form 1099-Q. 2010 tax preparation Enter the amount of earnings on line 21 of Form 1040 (or Form 1040NR) for the applicable tax year. 2010 tax preparation For more information, see Taxable Distributions , later. 2010 tax preparation   The excise tax does not apply to any rollover contribution. 2010 tax preparation Note. 2010 tax preparation Contributions made in one year for the preceding tax year are considered to have been made on the last day of the preceding year. 2010 tax preparation Example. 2010 tax preparation In 2012, Greta's parents and grandparents contributed a total of $2,300 to Greta's Coverdell ESA— an excess contribution of $300. 2010 tax preparation Because Greta did not withdraw the excess before June 1, 2013, she had to pay an additional tax of $18 (6% × $300) when she filed her 2012 tax return. 2010 tax preparation In 2013, excess contributions of $500 were made to Greta's account, however, she withdrew $250 from that account to use for qualified education expenses. 2010 tax preparation Using the steps shown earlier under Additional Tax on Excess Contributions , Greta figures the excess contribution in her account at the end of 2013 as follows. 2010 tax preparation (1)   $500 excess contributions made in 2013     + (2)   $300 excess contributions in ESA at end of 2012     − (2a)   $250 distribution during 2013         $550 excess at end of 2013   × 6%=$33           If Greta limits 2014 contributions to $1,450 ($2,000 maximum allowed − $550 excess contributions from 2013), she will not owe any additional tax in 2014 for excess contributions. 2010 tax preparation Figuring and reporting the additional tax. 2010 tax preparation   You figure this excise tax in Part V of Form 5329. 2010 tax preparation Report the additional tax on Form 1040, line 58 (or Form 1040NR, line 56). 2010 tax preparation Rollovers and Other Transfers Assets can be rolled over from one Coverdell ESA to another or the designated beneficiary can be changed. 2010 tax preparation The beneficiary's interest can be transferred to a spouse or former spouse because of divorce. 2010 tax preparation Rollovers Any amount distributed from a Coverdell ESA is not taxable if it is rolled over to another Coverdell ESA for the benefit of the same beneficiary or a member of the beneficiary's family (including the beneficiary's spouse) who is under age 30. 2010 tax preparation This age limitation does not apply if the new beneficiary is a special needs beneficiary. 2010 tax preparation An amount is rolled over if it is paid to another Coverdell ESA within 60 days after the date of the distribution. 2010 tax preparation Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. 2010 tax preparation These are not taxable distributions. 2010 tax preparation Members of the beneficiary's family. 2010 tax preparation   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. 2010 tax preparation Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. 2010 tax preparation Brother, sister, stepbrother, or stepsister. 2010 tax preparation Father or mother or ancestor of either. 2010 tax preparation Stepfather or stepmother. 2010 tax preparation Son or daughter of a brother or sister. 2010 tax preparation Brother or sister of father or mother. 2010 tax preparation Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. 2010 tax preparation The spouse of any individual listed above. 2010 tax preparation First cousin. 2010 tax preparation Example. 2010 tax preparation When Aaron graduated from college last year he had $5,000 left in his Coverdell ESA. 2010 tax preparation He wanted to give this money to his younger sister, who was still in high school. 2010 tax preparation In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his sister's Coverdell ESA within 60 days of the distribution. 2010 tax preparation Only one rollover per Coverdell ESA is allowed during the 12-month period ending on the date of the payment or distribution. 2010 tax preparation This rule does not apply to the rollover of a military death gratuity or payment from Servicemembers' Group Life Insurance (SGLI). 2010 tax preparation Military death gratuity. 2010 tax preparation   If you received a military death gratuity or a payment from Servicemembers' Group Life Insurance (SGLI), you may roll over all or part of the amount received to one or more Coverdell ESAs for the benefit of members of the beneficiary's family (see Members of the beneficiary's family , earlier). 2010 tax preparation Such payments are made to an eligible survivor upon the death of a member of the armed forces. 2010 tax preparation The contribution to a Coverdell ESA from survivor benefits received cannot be made later than 1 year after the date on which you receive the gratuity or SGLI payment. 2010 tax preparation   This rollover contribution is not subject to (but is in addition to) the contribution limits discussed earlier under Contribution Limits . 2010 tax preparation The amount you roll over cannot exceed the total survivor benefits you received, reduced by contributions from these benefits to a Roth IRA or other Coverdell ESAs. 2010 tax preparation   The amount contributed from the survivor benefits is treated as part of your basis (cost) in the Coverdell ESA, and will not be taxed when distributed. 2010 tax preparation See Distributions , later. 2010 tax preparation The limit of one rollover per Coverdell ESA during a 12-month period does not apply to a military death gratuity or SGLI payment. 2010 tax preparation Changing the Designated Beneficiary The designated beneficiary can be changed. 2010 tax preparation See Members of the beneficiary's family , earlier. 2010 tax preparation There are no tax consequences if, at the time of the change, the new beneficiary is under age 30 or is a special needs beneficiary. 2010 tax preparation Example. 2010 tax preparation Assume the same situation for Aaron as in the last example (see Rollovers , earlier). 2010 tax preparation Instead of closing his Coverdell ESA and paying the distribution into his sister's Coverdell ESA, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his sister. 2010 tax preparation Transfer Because of Divorce If a spouse or former spouse receives a Coverdell ESA under a divorce or separation instrument, it is not a taxable transfer. 2010 tax preparation After the transfer, the spouse or former spouse treats the Coverdell ESA as his or her own. 2010 tax preparation Example. 2010 tax preparation In their divorce settlement, Peg received her ex-husband's Coverdell ESA. 2010 tax preparation In this process, the account was transferred into her name. 2010 tax preparation Peg now treats the funds in this Coverdell ESA as if she were the original owner. 2010 tax preparation Distributions The designated beneficiary of a Coverdell ESA can take a distribution at any time. 2010 tax preparation Whether the distributions are tax free depends, in part, on whether the distributions are equal to or less than the amount of Adjusted qualified education expenses (defined later) that the beneficiary has in the same tax year. 2010 tax preparation See Table 7-3, Coverdell ESA Distributions at a Glance, for highlights. 2010 tax preparation Table 7-3. 2010 tax preparation Coverdell ESA Distributions at a Glance Do not rely on this table alone. 2010 tax preparation It provides only general highlights. 2010 tax preparation See the text for definitions of terms in bold type and for more complete explanations. 2010 tax preparation Question Answer Is a distribution from a Coverdell ESA to pay for a designated beneficiary's qualified education expenses tax free? Generally, yes, to the extent the amount of the distribution is not more than the designated beneficiary's adjusted qualified education expenses. 2010 tax preparation After the designated beneficiary completes his or her education at an eligible educational institution, can amounts remaining in the Coverdell ESA be distributed? Yes. 2010 tax preparation Amounts must be distributed when the designated beneficiary reaches age 30, unless he or she is a special needs beneficiary. 2010 tax preparation Also, certain transfers to members of the beneficiary's family are permitted. 2010 tax preparation Does the designated beneficiary need to be enrolled for a minimum number of courses to take a tax-free distribution? No. 2010 tax preparation Adjusted qualified education expenses. 2010 tax preparation   To determine if total distributions for the year are more than the amount of qualified education expenses, reduce total qualified education expenses by any tax-free educational assistance. 2010 tax preparation Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2010 tax preparation The amount you get by subtracting tax-free educational assistance from your total qualified education expenses is your adjusted qualified education expenses. 2010 tax preparation Tax-Free Distributions Generally, distributions are tax free if they are not more than the beneficiary's adjusted qualified education expenses for the year. 2010 tax preparation Do not report tax-free distributions (including qualifying rollovers) on your tax return. 2010 tax preparation Taxable Distributions A portion of the distributions is generally taxable to the beneficiary if the total distributions are more than the beneficiary's adjusted qualified education expenses for the year. 2010 tax preparation Excess distribution. 2010 tax preparation   This is the part of the total distribution that is more than the beneficiary's adjusted qualified education expenses for the year. 2010 tax preparation Earnings and basis. 2010 tax preparation   You will receive a Form 1099-Q for each of the Coverdell ESAs from which money was distributed in 2013. 2010 tax preparation The amount of your gross distribution will be shown in box 1. 2010 tax preparation For 2013, instead of dividing the gross distribution between your earnings (box 2) and your basis (already-taxed amount) (box 3), the payer or trustee may report the fair market value (account balance) of the Coverdell ESA as of December 31, 2013. 2010 tax preparation This will be shown in the blank box below boxes 5 and 6. 2010 tax preparation   The amount contributed from survivor benefits (see Military death gratuity , earlier) is treated as part of your basis and will not be taxed when distributed. 2010 tax preparation Figuring the Taxable Portion of a Distribution The taxable portion is the amount of the excess distribution that represents earnings that have accumulated tax free in the account. 2010 tax preparation Figure the taxable portion for 2013 as shown in the following steps. 2010 tax preparation Multiply the total amount distributed by a fraction. 2010 tax preparation The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the value (balance) of the account at the end of 2013 plus the amount distributed during 2013. 2010 tax preparation Subtract the amount figured in (1) from the total amount distributed during 2013. 2010 tax preparation The result is the amount of earnings included in the distribution(s). 2010 tax preparation Multiply the amount of earnings figured in (2) by a fraction. 2010 tax preparation The numerator is the adjusted qualified education expenses paid during 2013 and the denominator is the total amount distributed during 2013. 2010 tax preparation Subtract the amount figured in (3) from the amount figured in (2). 2010 tax preparation The result is the amount the beneficiary must include in income. 2010 tax preparation The taxable amount must be reported on Form 1040 or Form 1040NR, line 21. 2010 tax preparation Example. 2010 tax preparation You received an $850 distribution from your Coverdell ESA, to which $1,500 had been contributed before 2013. 2010 tax preparation There were no contributions in 2013. 2010 tax preparation This is your first distribution from the account, so your basis in the account on December 31, 2012, was $1,500. 2010 tax preparation The value (balance) of your account on December 31, 2013, was $950. 2010 tax preparation You had $700 of adjusted qualified education expenses (AQEE) for the year. 2010 tax preparation Using the steps in Figuring the Taxable Portion of a Distribution , earlier, figure the taxable portion of your distribution as follows. 2010 tax preparation   1. 2010 tax preparation $850 (distribution) × $1,500 basis + $0 contributions  $950 value + $850 distribution       =$708 (basis portion of distribution)     2. 2010 tax preparation $850 (distribution)−$708 (basis portion of distribution)     =$142 (earnings included in distribution)   3. 2010 tax preparation $142 (earnings) × $700 AQEE  $850 distribution           =$117 (tax-free earnings)     4. 2010 tax preparation $142 (earnings)−$117 (tax-free earnings)=$25 (taxable earnings)                 You must include $25 in income as distributed earnings not used for qualified education expenses. 2010 tax preparation Report this amount on Form 1040, line 21, listing the type and amount of income on the dotted line. 2010 tax preparation Worksheet 7-3, Coverdell ESA–Taxable Distributions and Basis , at the end of this chapter, can help you figure your adjusted qualified education expenses, how much of your distribution must be included in income, and the remaining basis in your Coverdell ESA(s). 2010 tax preparation Coordination With American Opportunity and Lifetime Learning Credits The American opportunity or lifetime learning credit can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA, as long as the same expenses are not used for both benefits. 2010 tax preparation This means the beneficiary must reduce qualified higher education expenses by tax-free educational assistance, and then further reduce them by any expenses taken into account in determining an American opportunity or lifetime learning credit. 2010 tax preparation Example. 2010 tax preparation Derek Green had $5,800 of qualified higher education expenses for 2013, his first year in college. 2010 tax preparation He paid his college expenses from the following sources. 2010 tax preparation     Partial tuition scholarship (tax free) $1,500     Coverdell ESA distribution 1,000     Gift from parents 2,100     Earnings from part-time job 1,200           Of his $5,800 of qualified higher education expenses, $4,000 was tuition and related expenses that also qualified for an American opportunity credit. 2010 tax preparation Derek's parents claimed a $2,500 American opportunity credit (based on $4,000 expenses) on their tax return. 2010 tax preparation Before Derek can determine the taxable portion of his Coverdell ESA distribution, he must reduce his total qualified higher education expenses. 2010 tax preparation     Total qualified higher education expenses $5,800     Minus: Tax-free educational assistance −1,500     Minus: Expenses taken into account in  figuring American opportunity credit − 4,000     Equals: Adjusted qualified higher education  expenses (AQHEE) $ 300           Since the adjusted qualified higher education expenses ($300) are less than the Coverdell ESA distribution ($1,000), part of the distribution will be taxable. 2010 tax preparation The balance in Derek's account was $1,800 on December 31, 2013. 2010 tax preparation Prior to 2013, $2,100 had been contributed to this account. 2010 tax preparation Contributions for 2013 totaled $400. 2010 tax preparation Using the four steps outlined earlier, Derek figures the taxable portion of his distribution as shown below. 2010 tax preparation   1. 2010 tax preparation $1,000 (distribution) × $2,100 basis + $400 contributions  $1,800 value + $1,000 distribution           =$893 (basis portion of distribution)     2. 2010 tax preparation $1,000 (distribution)−$893 (basis portion of distribution)     = $107 (earnings included in distribution)   3. 2010 tax preparation $107 (earnings) × $300 AQHEE  $1,000 distribution       =$32 (tax-free earnings)     4. 2010 tax preparation $107 (earnings)−$32 (tax-free earnings)=$75 (taxable earnings)                 Derek must include $75 in income (Form 1040, line 21). 2010 tax preparation This is the amount of distributed earnings not used for adjusted qualified higher education expenses. 2010 tax preparation Coordination With Qualified Tuition Program (QTP) Distributions If a designated beneficiary receives distributions from both a Coverdell ESA and a QTP in the same year, and the total distribution is more than the beneficiary's adjusted qualified higher education expenses, those expenses must be allocated between the distribution from the Coverdell ESA and the distribution from the QTP before figuring how much of each distribution is taxable. 2010 tax preparation The following two examples illustrate possible allocations. 2010 tax preparation Example 1. 2010 tax preparation In 2013, Beatrice graduated from high school and began her first semester of college. 2010 tax preparation That year, she had $1,000 of qualified elementary and secondary education expenses (QESEE) for high school and $3,000 of qualified higher education expenses (QHEE) for college. 2010 tax preparation To pay these expenses, Beatrice withdrew $800 from her Coverdell ESA and $4,200 from her QTP. 2010 tax preparation No one claimed Beatrice as a dependent, nor was she eligible for an education credit. 2010 tax preparation She did not receive any tax-free educational assistance in 2013. 2010 tax preparation Beatrice must allocate her total qualified education expenses between the two distributions. 2010 tax preparation Beatrice knows that tax-free treatment will be available if she applies her $800 Coverdell ESA distribution toward her $1,000 of qualified education expenses for high school. 2010 tax preparation The qualified expenses are greater than the distribution, making the $800 Coverdell ESA distribution tax free. 2010 tax preparation Next, Beatrice matches her $4,200 QTP distribution to her $3,000 of QHEE, and finds she has an excess QTP distribution of $1,200 ($4,200 QTP − $3,000 QHEE). 2010 tax preparation She cannot use the extra $200 of high school expenses (from (1) above) against the QTP distribution because those expenses do not qualify a QTP for tax-free treatment. 2010 tax preparation Finally, Beatrice figures the taxable and tax-free portions of her QTP distribution based on her $3,000 of QHEE. 2010 tax preparation (See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program for more information. 2010 tax preparation ) Example 2. 2010 tax preparation Assume the same facts as in Example 1 , except that Beatrice withdrew $1,800 from her Coverdell ESA and $3,200 from her QTP. 2010 tax preparation In this case, she allocates her qualified education expenses as follows. 2010 tax preparation Using the same reasoning as in Example 1, Beatrice matches $1,000 of her Coverdell ESA distribution to her $1,000 of QESEE—she has $800 of her distribution remaining. 2010 tax preparation Because higher education expenses can also qualify a Coverdell ESA distribution for tax-free treatment, Beatrice allocates her $3,000 of QHEE between the remaining $800 Coverdell ESA and the $3,200 QTP distributions ($4,000 total). 2010 tax preparation   $3,000 QHEE × $800 ESA distribution  $4,000 total distribution = $600 QHEE (ESA)     $3,000 QHEE × $3,200 QTP distribution  $4,000 total distribution = $2,400 QHEE (QTP)   Beatrice then figures the taxable part of her: Coverdell ESA distribution based on qualified education expenses of $1,600 ($1,000 QESEE + $600 QHEE). 2010 tax preparation See Figuring the Taxable Portion of a Distribution , earlier, in this chapter. 2010 tax preparation   QTP distribution based on her $2,400 of QHEE (see Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program). 2010 tax preparation The above examples show two types of allocation between distributions from a Coverdell ESA and a QTP. 2010 tax preparation However, you do not have to allocate your expenses in the same way. 2010 tax preparation You can use any reasonable method. 2010 tax preparation Losses on Coverdell ESA Investments If you have a loss on your investment in a Coverdell ESA, you may be able to deduct the loss on your income tax return. 2010 tax preparation You can deduct the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. 2010 tax preparation Your basis is the total amount of contributions to that Coverdell ESA. 2010 tax preparation You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23 (Schedule A (Form 1040NR), line 9), subject to the 2%-of-adjusted-gross-income limit. 2010 tax preparation If you have distributions from more than one Coverdell ESA account during a year, you must combine the information (amount of distribution, basis, etc. 2010 tax preparation ) from all such accounts in order to determine your taxable earnings for the year. 2010 tax preparation By doing this, the loss from one ESA account reduces the distributed earnings (if any) from any other ESA account. 2010 tax preparation For examples of the calculation, see Losses on QTP Investments in chapter 8, Qualified Tuition Program. 2010 tax preparation Additional Tax on Taxable Distributions Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income. 2010 tax preparation Exceptions. 2010 tax preparation   The 10% additional tax does not apply to distributions: Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary. 2010 tax preparation Made because the designated beneficiary is disabled. 2010 tax preparation A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. 2010 tax preparation A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration. 2010 tax preparation Included in income because the designated beneficiary received: A tax-free scholarship or fellowship (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), or Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2010 tax preparation Made on account of the attendance of the designated beneficiary at a U. 2010 tax preparation S. 2010 tax preparation military academy (such as the USMA at West Point). 2010 tax preparation This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(d)(3) of title 10 of the U. 2010 tax preparation S. 2010 tax preparation Code) attributable to such attendance. 2010 tax preparation Included in income only because the qualified education expenses were taken into account in determining the American opportunity or lifetime learning credit (see Coordination With American Opportunity and Lifetime Learning Credits , earlier). 2010 tax preparation Made before June 1, 2014, of an excess 2013 contribution (and any earnings on it). 2010 tax preparation The distributed earnings must be included in gross income for the year in which the excess contribution was made. 2010 tax preparation Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. 2010 tax preparation Figuring the additional tax. 2010 tax preparation    Use Part II of Form 5329, to figure any additional tax. 2010 tax preparation Report the amount on Form 1040, line 58, or Form 1040NR, line 56. 2010 tax preparation When Assets Must Be Distributed Any assets remaining in a Coverdell ESA must be distributed when either one of the following two events occurs. 2010 tax preparation The designated beneficiary reaches age 30. 2010 tax preparation In this case, the remaining assets must be distributed within 30 days after the beneficiary reaches age 30. 2010 tax preparation However, this rule does not apply if the beneficiary is a special needs beneficiary. 2010 tax preparation The designated beneficiary dies before reaching age 30. 2010 tax preparation In this case, the remaining assets must generally be distributed within 30 days after the date of death. 2010 tax preparation Exception for Transfer to Surviving Spouse or Family Member If a Coverdell ESA is transferred to a surviving spouse or other family member as the result of the death of the designated beneficiary, the Coverdell ESA retains its status. 2010 tax preparation (“Family member” was defined earlier under Rollovers . 2010 tax preparation ) This means the spouse or other family member can treat the Coverdell ESA as his or her own and does not need to withdraw the assets until he or she reaches age 30. 2010 tax preparation This age limitation does not apply if the new beneficiary is a special needs beneficiary. 2010 tax preparation There are no tax consequences as a result of the transfer. 2010 tax preparation How To Figure the Taxable Earnings When a total distribution is made because the designated beneficiary either reached age 30 or died, the earnings that accumulated tax free in the account must be included in taxable income. 2010 tax preparation You determine these earnings as shown in the following two steps. 2010 tax preparation Multiply the amount distributed by a fraction. 2010 tax preparation The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the balance in the account at the end of 2013 plus the amount distributed during 2013. 2010 tax preparation Subtract the amount figured in (1) from the total amount distributed during 2013. 2010 tax preparation The result is the amount of earnings included in the distribution. 2010 tax preparation For an example, see steps (1) and (2) of the Example under Figuring the Taxable Portion of a Distribution, earlier. 2010 tax preparation The beneficiary or other person receiving the distribution must report this amount on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line. 2010 tax preparation Worksheet 7-3 Instructions. 2010 tax preparation Coverdell ESA—Taxable Distributions and Basis Line G. 2010 tax preparation Enter the total distributions received from all Coverdell ESAs during 2013. 2010 tax preparation Do not include amounts rolled over to another ESA within 60 days (only one rollover is allowed during any 12-month period). 2010 tax preparation Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year for which the contributions were made. 2010 tax preparation Line 2. 2010 tax preparation Your basis (amount already taxed) in this Coverdell ESA as of December 31, 2012, is the total of:   •All contributions to this Coverdell ESA before 2013 •Minus the tax-free portion of any distributions from this Coverdell ESA before 2013. 2010 tax preparation   If your last distribution from this Coverdell ESA was before 2013, you must start with the basis in your account as of the end of the last year in which you took a distribution. 2010 tax preparation For years before 2002, you can find that amount on the last line of the worksheet in the Instructions for Form 8606, Nondeductible IRAs, that you completed for that year. 2010 tax preparation For years after 2001, you can find that amount by using the ending basis from the worksheet in Publication 970 for that year. 2010 tax preparation You can determine your basis in this Coverdell ESA as of December 31, 2012, by adding to the basis as of the end of that year any contributions made to that account after the year of the distribution and before 2013. 2010 tax preparation Line 4. 2010 tax preparation Enter the total distributions received from this Coverdell ESA in 2013. 2010 tax preparation Do not include amounts rolled over to another Coverdell ESA within 60 days (only one rollover is allowed during any 12-month period). 2010 tax preparation   Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year of the contributions. 2010 tax preparation Line 7. 2010 tax preparation Enter the total value of this Coverdell ESA as of December 31, 2013, plus any outstanding rollovers contributed to the account after 2012, but before the end of the 60-day rollover period. 2010 tax preparation A statement should be sent to you by January 31, 2014, for this Coverdell ESA showing the value on December 31, 2013. 2010 tax preparation   A rollover is a tax-free withdrawal from one Coverdell ESA that is contributed to another Coverdell ESA. 2010 tax preparation An outstanding rollover is any amount withdrawn within 60 days before the end of 2013 (November 2 through December 31) that was rolled over after December 31, 2013, but within the 60-day rollover period. 2010 tax preparation Worksheet 7-3. 2010 tax preparation Coverdell ESA—Taxable Distributions and Basis How to complete this worksheet. 2010 tax preparation • • • Complete Part I, lines A through H, on only one worksheet. 2010 tax preparation  Complete a separate Part II, lines 1 through 15, for each of your Coverdell ESAs. 2010 tax preparation  Complete Part III, the Summary (line 16), on only one worksheet. 2010 tax preparation Part I. 2010 tax preparation Qualified Education Expenses (Complete for total expenses)       A. 2010 tax preparation Enter your total qualified education expenses for 2013   A. 2010 tax preparation   B. 2010 tax preparation Enter those qualified education expenses paid for with tax-free educational assistance (for example, tax-free scholarships, veterans' educational benefits, Pell grants, employer-provided educational assistance)   B. 2010 tax preparation         C. 2010 tax preparation Enter those qualified higher education expenses deducted on Schedule C or C-EZ (Form 1040). 2010 tax preparation Schedule F (Form 1040), or as a miscellaneous itemized deduction on Schedule A (Form 1040 or 1040NR)   C. 2010 tax preparation         D. 2010 tax preparation Enter those qualified higher education expenses on which  an American opportunity or lifetime learning credit was based   D. 2010 tax preparation         E. 2010 tax preparation Add lines B, C, and D   D. 2010 tax preparation   F. 2010 tax preparation Subtract line E from line A. 2010 tax preparation This is your adjusted qualified education expense for 2013   E. 2010 tax preparation   G. 2010 tax preparation Enter your total distributions from all Coverdell ESAs during 2013. 2010 tax preparation Do not include rollovers  or the return of excess contributions (see instructions)   F. 2010 tax preparation   H. 2010 tax preparation Divide line F by line G. 2010 tax preparation Enter the result as a decimal (rounded to at least 3 places). 2010 tax preparation If the  result is 1. 2010 tax preparation 000 or more, enter 1. 2010 tax preparation 000   G. 2010 tax preparation . 2010 tax preparation Part II. 2010 tax preparation Taxable Distributions and Basis (Complete separately for each account) 1. 2010 tax preparation Enter the amount contributed to this Coverdell ESA for 2013, including contributions made for 2013 from January 1, 2014, through April 15, 2014. 2010 tax preparation Do not include rollovers or the return of excess contributions   1. 2010 tax preparation   2. 2010 tax preparation Enter your basis in this Coverdell ESA as of December 31, 2012 (see instructions)   2. 2010 tax preparation   3. 2010 tax preparation Add lines 1 and 2   3. 2010 tax preparation   4. 2010 tax preparation Enter the total distributions from this Coverdell ESA during 2013. 2010 tax preparation Do not include rollovers  or the return of excess contributions (see instructions)   4. 2010 tax preparation   5. 2010 tax preparation Multiply line 4 by line H. 2010 tax preparation This is the amount of adjusted qualified  education expense attributable to this Coverdell ESA   5. 2010 tax preparation         6. 2010 tax preparation Subtract line 5 from line 4   6. 2010 tax preparation         7. 2010 tax preparation Enter the total value of this Coverdell ESA as of December 31, 2013,  plus any outstanding rollovers (see instructions)   7. 2010 tax preparation         8. 2010 tax preparation Add lines 4 and 7   8. 2010 tax preparation         9. 2010 tax preparation Divide line 3 by line 8. 2010 tax preparation Enter the result as a decimal (rounded to  at least 3 places). 2010 tax preparation If the result is 1. 2010 tax preparation 000 or more, enter 1. 2010 tax preparation 000   9. 2010 tax preparation . 2010 tax preparation       10. 2010 tax preparation Multiply line 4 by line 9. 2010 tax preparation This is the amount of basis allocated to your  distributions, and is tax free   10. 2010 tax preparation     Note. 2010 tax preparation If line 6 is zero, skip lines 11 through 13, enter -0- on line 14, and go to line 15. 2010 tax preparation       11. 2010 tax preparation Subtract line 10 from line 4   11. 2010 tax preparation   12. 2010 tax preparation Divide line 5 by line 4. 2010 tax preparation Enter the result as a decimal (rounded to  at least 3 places). 2010 tax preparation If the result is 1. 2010 tax preparation 000 or more, enter 1. 2010 tax preparation 000   12. 2010 tax preparation . 2010 tax preparation       13. 2010 tax preparation Multiply line 11 by line 12. 2010 tax preparation This is the amount of qualified education  expenses allocated to your distributions, and is tax free   13. 2010 tax preparation   14. 2010 tax preparation Subtract line 13 from line 11. 2010 tax preparation This is the portion of the distributions from this  Coverdell ESA in 2013 that you must include in income   14. 2010 tax preparation   15. 2010 tax preparation Subtract line 10 from line 3. 2010 tax preparation This is your basis in this Coverdell ESA as of December 31, 2013   15. 2010 tax preparation   Part III. 2010 tax preparation Summary (Complete only once)       16. 2010 tax preparation Taxable amount. 2010 tax preparation Add together all amounts on line 14 for all your Coverdell ESAs. 2010 tax preparation Enter here  and include on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line   16. 2010 tax preparation   Prev  Up  Next   Home   More Online Publications
Español

Lottery Results

In the United States, 43 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands have lotteries. Lotteries are a form of gambling run by the state including instant-win scratch-off games, Lotto and daily games.

The 2010 Tax Preparation

2010 tax preparation Publication 521 - Main Content Table of Contents Who Can Deduct Moving ExpensesMove Related to Start of Work Distance Test Time Test Retirees or Survivors Who Move to the United States Deductible Moving ExpensesMoves to Locations in the United States Moves to Locations Outside the United States Nondeductible Expenses ReimbursementsTypes of Reimbursement Plans Tax Withholding and Estimated Tax How and When To ReportForm 3903 When To Deduct Expenses Illustrated Example Members of the Armed Forces How To Get Tax Help Who Can Deduct Moving Expenses You can deduct your moving expenses if you meet all three of the following requirements. 2010 tax preparation Your move is closely related to the start of work. 2010 tax preparation You meet the distance test. 2010 tax preparation You meet the time test. 2010 tax preparation After you have read these rules, you may want to use Figure B to help you decide if you can deduct your moving expenses. 2010 tax preparation Retirees, survivors, and Armed Forces members. 2010 tax preparation   Different rules may apply if you are a member of the Armed Forces or a retiree or survivor moving to the United States. 2010 tax preparation These rules are discussed later in this publication. 2010 tax preparation Move Related to Start of Work Your move must be closely related, both in time and in place, to the start of work at your new job location. 2010 tax preparation Closely related in time. 2010 tax preparation   In most cases, you can consider moving expenses incurred within 1 year from the date you first reported to work at the new location as closely related in time to the start of work. 2010 tax preparation It is not necessary that you arrange to work before moving to a new location, as long as you actually go to work in that location. 2010 tax preparation    Figure A. 2010 tax preparation Illustration of Distance Test Please click here for the text description of the image. 2010 tax preparation Figure A   If you do not move within 1 year of the date you begin work, you ordinarily cannot deduct the expenses unless you can show that circumstances existed that prevented the move within that time. 2010 tax preparation Example. 2010 tax preparation Your family moved more than a year after you started work at a new location. 2010 tax preparation You delayed the move for 18 months to allow your child to complete high school. 2010 tax preparation You can deduct your moving expenses. 2010 tax preparation Closely related in place. 2010 tax preparation   You can generally consider your move closely related in place to the start of work if the distance from your new home to the new job location is not more than the distance from your former home to the new job location. 2010 tax preparation If your move does not meet this requirement, you may still be able to deduct moving expenses if you can show that: You are required to live at your new home as a condition of your employment, or You will spend less time or money commuting from your new home to your new job location. 2010 tax preparation Home defined. 2010 tax preparation   Your home means your main home (residence). 2010 tax preparation It can be a house, apartment, condominium, houseboat, house trailer, or similar dwelling. 2010 tax preparation It does not include other homes owned or kept up by you or members of your family. 2010 tax preparation It also does not include a seasonal home, such as a summer beach cottage. 2010 tax preparation Your former home means your home before you left for your new job location. 2010 tax preparation Your new home means your home within the area of your new job location. 2010 tax preparation Retirees or survivors. 2010 tax preparation   You may be able to deduct the expenses of moving to the United States or its possessions even though the move is not related to the start of work at a new job location. 2010 tax preparation You must have worked outside the United States or be a survivor of someone who did. 2010 tax preparation See Retirees or Survivors Who Move to the United States, later. 2010 tax preparation Distance Test Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home. 2010 tax preparation For example, if your old main job location was 3 miles from your former home, your new main job location must be at least 53 miles from that former home. 2010 tax preparation You can use Worksheet 1 to see if you meet this test. 2010 tax preparation Worksheet 1. 2010 tax preparation Distance Test   Note. 2010 tax preparation Members of the Armed Forces may not have to meet this test. 2010 tax preparation See Members of the Armed Forces. 2010 tax preparation     1. 2010 tax preparation Enter the number of miles from your old home to your new workplace 1. 2010 tax preparation miles 2. 2010 tax preparation Enter the number of miles from your old home to your old workplace 2. 2010 tax preparation miles 3. 2010 tax preparation Subtract line 2 from line 1. 2010 tax preparation If zero or less, enter -0- 3. 2010 tax preparation miles 4. 2010 tax preparation Is line 3 at least 50 miles? □ Yes. 2010 tax preparation You meet this test. 2010 tax preparation  □ No. 2010 tax preparation You do not meet this test. 2010 tax preparation You cannot deduct your moving expenses. 2010 tax preparation The distance between a job location and your home is the shortest of the more commonly traveled routes between them. 2010 tax preparation The distance test considers only the location of your former home. 2010 tax preparation It does not take into account the location of your new home. 2010 tax preparation See Figure A, earlier. 2010 tax preparation Example. 2010 tax preparation You moved to a new home less than 50 miles from your former home because you changed main job locations. 2010 tax preparation Your old main job location was 3 miles from your former home. 2010 tax preparation Your new main job location is 60 miles from that home. 2010 tax preparation Because your new main job location is 57 miles farther from your former home than the distance from your former home to your old main job location, you meet the distance test. 2010 tax preparation First job or return to full-time work. 2010 tax preparation   If you go to work full time for the first time, your place of work must be at least 50 miles from your former home to meet the distance test. 2010 tax preparation   If you go back to full-time work after a substantial period of part-time work or unemployment, your place of work also must be at least 50 miles from your former home. 2010 tax preparation Armed Forces. 2010 tax preparation   If you are in the Armed Forces and you moved because of a permanent change of station, you do not have to meet the distance test. 2010 tax preparation See Members of the Armed Forces, later. 2010 tax preparation Main job location. 2010 tax preparation   Your main job location is usually the place where you spend most of your working time. 2010 tax preparation This could be your office, plant, store, shop, or other location. 2010 tax preparation If there is no one place where you spend most of your working time, your main job location is the place where your work is centered, such as where you report for work or are otherwise required to “base” your work. 2010 tax preparation Union members. 2010 tax preparation   If you work for several employers on a short-term basis and you get work under a union hall system (such as a construction or building trades worker), your main job location is the union hall. 2010 tax preparation More than one job. 2010 tax preparation   If you have more than one job at any time, your main job location depends on the facts in each case. 2010 tax preparation The more important factors to be considered are: The total time you spend at each place, The amount of work you do at each place, and How much money you earn at each place. 2010 tax preparation    Table 1. 2010 tax preparation Satisfying the Time Test for Employees and Self-Employed Persons IF you are. 2010 tax preparation . 2010 tax preparation . 2010 tax preparation THEN you satisfy the time test by meeting the. 2010 tax preparation . 2010 tax preparation . 2010 tax preparation an employee 39-week test for employees. 2010 tax preparation self-employed 78-week test for self-employed persons. 2010 tax preparation both self-employed and an employee at the same time 78-week test for a self-employed person or the 39-week  test for an employee. 2010 tax preparation Your principal place of work  determines which test applies. 2010 tax preparation both self-employed and an employee, but unable to satisfy the 39-week test for employees 78-week test for self-employed persons. 2010 tax preparation Time Test To deduct your moving expenses, you also must meet one of the following two time tests. 2010 tax preparation The time test for employees. 2010 tax preparation The time test for self-employed persons. 2010 tax preparation Both of these tests are explained below. 2010 tax preparation See Table 1, below, for a summary of these tests. 2010 tax preparation You can deduct your moving expenses before you meet either of the time tests. 2010 tax preparation See Time Test Not Yet Met, later. 2010 tax preparation Time Test for Employees If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location (39-week test). 2010 tax preparation Full-time employment depends on what is usual for your type of work in your area. 2010 tax preparation For purposes of this test, the following four rules apply. 2010 tax preparation You count only your full-time work as an employee, not any work you do as a self-employed person. 2010 tax preparation You do not have to work for the same employer for all 39 weeks. 2010 tax preparation You do not have to work 39 weeks in a row. 2010 tax preparation You must work full time within the same general commuting area for all 39 weeks. 2010 tax preparation Temporary absence from work. 2010 tax preparation   You are considered to have worked full time during any week you are temporarily absent from work because of illness, strikes, lockouts, layoffs, natural disasters, or similar causes. 2010 tax preparation You are also considered to have worked full time during any week you are absent from work for leave or vacation provided for in your work contract or agreement. 2010 tax preparation Seasonal work. 2010 tax preparation   If your work is seasonal, you are considered to be working full time during the off-season only if your work contract or agreement covers an off-season period of less than 6 months. 2010 tax preparation For example, a school teacher on a 12-month contract who teaches on a full-time basis for more than 6 months is considered to have worked full time for the entire 12 months. 2010 tax preparation    Figure B. 2010 tax preparation Can You Deduct Expenses for a Non-Military Move Within the United States? Please click here for the text description of the image. 2010 tax preparation Figure B Time Test for Self-Employed Persons If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you arrive in the general area of your new job location (78-week test). 2010 tax preparation For purposes of the time test for self-employed persons, the following three rules apply. 2010 tax preparation You count any full-time work you do either as an employee or as a self-employed person. 2010 tax preparation You do not have to work for the same employer or be self-employed in the same trade or business for the 78 weeks. 2010 tax preparation You must work within the same general commuting area for all 78 weeks. 2010 tax preparation Example. 2010 tax preparation You are a self-employed accountant who moves from Atlanta to New York City, and begin to work there on December 1, 2013. 2010 tax preparation You pay moving expenses in 2013 and 2014 in connection with this move. 2010 tax preparation On April 15, 2014, when you file your income tax return for the year 2013, you have been performing services as a self-employed individual on a full-time basis in New York City for approximately 20 weeks. 2010 tax preparation Although you have not satisfied the 78-week employment condition at this time, you can deduct your 2013 moving expenses on your 2013 income tax return as there is still sufficient time remaining before December 1, 2015, to satisfy such condition. 2010 tax preparation You can deduct any moving expenses you pay in 2014 on your 2014 income tax return even if you have not met the 78-week test. 2010 tax preparation You have until December 1, 2015, to satisfy this requirement. 2010 tax preparation Self-employment. 2010 tax preparation   You are self-employed if you work as the sole owner of an unincorporated business or as a partner in a partnership carrying on a business. 2010 tax preparation You are not considered self-employed if you are semi-retired, are a part-time student, or work only a few hours each week. 2010 tax preparation Full-time work. 2010 tax preparation   You can count only those weeks during which you work full time as a week of work. 2010 tax preparation Whether you work full time during any week depends on what is usual for your type of work in your area. 2010 tax preparation For example, you are a self-employed dentist and maintain office hours 4 days a week. 2010 tax preparation You are considered to perform services full time if maintaining office hours 4 days a week is not unusual for other self-employed dentists in your area. 2010 tax preparation Temporary absence from work. 2010 tax preparation   You are considered to be self-employed on a full-time basis during any week you are temporarily absent from work because of illness, strikes, natural disasters, or similar causes. 2010 tax preparation Seasonal trade or business. 2010 tax preparation   If your trade or business is seasonal, the off-season weeks when no work is required or available may be counted as weeks during which you worked full time. 2010 tax preparation The off-season must be less than 6 months and you must work full time before and after the off-season. 2010 tax preparation Example. 2010 tax preparation You own and operate a motel at a beach resort. 2010 tax preparation The motel is closed for 5 months during the off-season. 2010 tax preparation You work full time as the operator of the motel before and after the off-season. 2010 tax preparation You are considered self-employed on a full-time basis during the weeks of the off-season. 2010 tax preparation   If you were both an employee and self-employed, see Table 1 earlier, for the requirements. 2010 tax preparation Example. 2010 tax preparation Justin quit his job and moved from the east coast to the west coast to begin a full-time job as a cabinet-maker for C and L Cabinet Shop. 2010 tax preparation He generally worked at the shop about 40 hours each week. 2010 tax preparation Shortly after the move, Justin also began operating a cabinet-installation business from his home for several hours each afternoon and all day on weekends. 2010 tax preparation Because Justin's principal place of business is the cabinet shop, he can satisfy the time test by meeting the 39-week test. 2010 tax preparation    If Justin is unable to satisfy the requirements of the 39-week test during the 12-month period immediately following his arrival in the general location of his new principal place of work, he can satisfy the 78-week test. 2010 tax preparation Joint Return If you are married, file a joint return, and both you and your spouse work full-time, either of you can satisfy the full-time work test. 2010 tax preparation However, you cannot add the weeks your spouse worked to the weeks you worked to satisfy that test. 2010 tax preparation Time Test Not Yet Met You can deduct your moving expenses on your 2013 tax return even though you have not met the time test by the date your 2013 return is due. 2010 tax preparation You can do this if you expect to meet the 39-week test in 2014 or the 78-week test in 2014 or 2015. 2010 tax preparation If you do not deduct your moving expenses on your 2013 return, and you later meet the time test, you can file an amended return for 2013 to take the deduction. 2010 tax preparation See When To Deduct Expenses later, for more details. 2010 tax preparation Failure to meet the time test. 2010 tax preparation    If you deduct moving expenses but do not meet the time test in 2014 or 2015, you must either: Report your moving expense deduction as other income on your Form 1040 for the year you cannot meet the test, or Use Form 1040X to amend your 2013 return, figuring your tax without the moving expense deduction. 2010 tax preparation Example. 2010 tax preparation You arrive in the general area of your new job location, as an employee, on September 15, 2013. 2010 tax preparation You deduct your moving expenses on your 2013 return, the year of the move, even though you have not yet met the time test by the date your return is due. 2010 tax preparation If you do not meet the 39-week test during the 12-month period following your arrival in the general area of your new job location, you must either: Report your moving expense deduction as other income on your Form 1040 for 2014, or Use Form 1040X to amend your 2013 return, figuring your tax without the moving expense deduction. 2010 tax preparation Exceptions to the Time Test You do not have to meet the time test if one of the following applies. 2010 tax preparation You are in the Armed Forces and you moved because of a permanent change of station. 2010 tax preparation See Members of the Armed Forces , later. 2010 tax preparation Your main job location was outside the United States and you moved to the United States because you retired. 2010 tax preparation See Retirees or Survivors Who Move to the United States, later. 2010 tax preparation You are the survivor of a person whose main job location at the time of death was outside the United States. 2010 tax preparation See Retirees or Survivors Who Move to the United States, later. 2010 tax preparation Your job at the new location ends because of death or disability. 2010 tax preparation You are transferred for your employer's benefit or laid off for a reason other than willful misconduct. 2010 tax preparation For this exception, you must have obtained full-time employment and you must have expected to meet the test at the time you started the job. 2010 tax preparation Retirees or Survivors Who Move to the United States If you are a retiree who was working abroad or a survivor of a decedent who was working abroad and you move to the United States or one of its possessions, you do not have to meet the time test, discussed earlier. 2010 tax preparation However, you must meet the requirements discussed below under Retirees who were working abroad or Survivors of decedents who were working abroad. 2010 tax preparation If you are living in the United States, retire, and then move and remain retired, you cannot claim a moving expense deduction for that move. 2010 tax preparation United States defined. 2010 tax preparation   For this section of this publication, the term “United States” includes the possessions of the United States. 2010 tax preparation Retirees who were working abroad. 2010 tax preparation   You can deduct moving expenses for a move to a new home in the United States when you permanently retire. 2010 tax preparation However, both your former main job location and your former home must have been outside the United States. 2010 tax preparation Permanently retired. 2010 tax preparation   You are considered permanently retired when you cease gainful full-time employment or self-employment. 2010 tax preparation If, at the time you retire, you intend your retirement to be permanent, you will be considered retired even though you later return to work. 2010 tax preparation Your intention to retire permanently may be determined by: Your age and health, The customary retirement age for people who do similar work, Whether you receive retirement payments from a pension or retirement fund, and The length of time before you return to full-time work. 2010 tax preparation Decedents. 2010 tax preparation   Qualified deductible moving expenses are allowed on a final return (Form 1040 or 1040NR) when a taxpayer has moved and dies within the same calendar year. 2010 tax preparation The personal representative filing on behalf of that taxpayer should complete and attach Form 3903 to the final return. 2010 tax preparation   A personal representative can be an executor, administrator, or anyone who is in charge of the deceased person's property. 2010 tax preparation For more information, see Publication 559, Survivors, Executors, and Administrators. 2010 tax preparation Survivors of decedents who were working abroad. 2010 tax preparation   If you are the spouse or the dependent of a person whose main job location at the time of death was outside the United States, you can deduct moving expenses if the following five requirements are met. 2010 tax preparation The move is to a home in the United States. 2010 tax preparation The move begins within 6 months after the decedent's death. 2010 tax preparation (When a move begins is described below. 2010 tax preparation ) The move is from the decedent's former home. 2010 tax preparation The decedent's former home was outside the United States. 2010 tax preparation The decedent's former home was also your home. 2010 tax preparation When a move begins. 2010 tax preparation   A move begins when one of the following events occurs. 2010 tax preparation You contract for your household goods and personal effects to be moved to your home in the United States, but only if the move is completed within a reasonable time. 2010 tax preparation Your household goods and personal effects are packed and on the way to your home in the United States. 2010 tax preparation You leave your former home to travel to your new home in the United States. 2010 tax preparation Deductible Moving Expenses If you meet the requirements discussed earlier under Who Can Deduct Moving Expenses, you can deduct the reasonable expenses of: Moving your household goods and personal effects (including in-transit or foreign-move storage expenses), and Traveling (including lodging but not meals) to your new home. 2010 tax preparation You cannot deduct any expenses for meals. 2010 tax preparation Reasonable expenses. 2010 tax preparation   You can deduct only those expenses that are reasonable for the circumstances of your move. 2010 tax preparation For example, the cost of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. 2010 tax preparation If during your trip to your new home, you stop over, or make side trips for sightseeing, the additional expenses for your stopover or side trips are not deductible as moving expenses. 2010 tax preparation Example. 2010 tax preparation Beth's employer transferred her from Boston, Massachusetts, to Buffalo, New York. 2010 tax preparation On her way to Buffalo, Beth drove into Canada to visit the Toronto Zoo. 2010 tax preparation Since Beth's excursion into Canada was away from the usual Boston-Buffalo route, the expenses paid or incurred for the excursion are not deductible. 2010 tax preparation Beth can only deduct what it would have cost to drive directly from Boston to Buffalo. 2010 tax preparation Likewise, Beth cannot deduct any expenses, such as the cost of a hotel room, caused by the delay for sightseeing. 2010 tax preparation Travel by car. 2010 tax preparation   If you use your car to take yourself, members of your household, or your personal effects to your new home, you can figure your expenses by deducting either: Your actual expenses, such as the amount you pay for gas and oil for your car, if you keep an accurate record of each expense, or The standard mileage rate of 24 cents per mile. 2010 tax preparation Whether you use actual expenses or the standard mileage rate to figure your expenses, you can deduct the parking fees and tolls you pay to move. 2010 tax preparation You cannot deduct any part of general repairs, general maintenance, insurance, or depreciation for your car. 2010 tax preparation Member of your household. 2010 tax preparation   You can deduct moving expenses you pay for yourself and members of your household. 2010 tax preparation A member of your household is anyone who has both your former and new home as his or her home. 2010 tax preparation It does not include a tenant or employee, unless that person is your dependent. 2010 tax preparation Moves to Locations in the United States If you meet the requirements under Who Can Deduct Moving Expenses, earlier, you can deduct expenses for a move to the area of a new main job location within the United States or its possessions. 2010 tax preparation Your move may be from one U. 2010 tax preparation S. 2010 tax preparation location to another or from a foreign country to the United States. 2010 tax preparation Household goods and personal effects. 2010 tax preparation   You can deduct the cost of packing, crating, and transporting your household goods and personal effects and those of the members of your household from your former home to your new home. 2010 tax preparation For purposes of moving expenses, the term “personal effects” includes, but is not limited to, movable personal property that the taxpayer owns and frequently uses. 2010 tax preparation   If you use your own car to move your things, see Travel by car, earlier. 2010 tax preparation   You can deduct any costs of connecting or disconnecting utilities required because you are moving your household goods, appliances, or personal effects. 2010 tax preparation   You can deduct the cost of shipping your car and your household pets to your new home. 2010 tax preparation   You can deduct the cost of moving your household goods and personal effects from a place other than your former home. 2010 tax preparation Your deduction is limited to the amount it would have cost to move them from your former home. 2010 tax preparation Example. 2010 tax preparation Paul Brown has been living and working in North Carolina for the last 4 years. 2010 tax preparation Because he has been renting a small apartment, he stored some furniture at his parents' home in Georgia. 2010 tax preparation Paul got a job in Washington, DC. 2010 tax preparation It cost him $900 to move the furniture from his North Carolina apartment to Washington and $3,000 to move the stored furniture from Georgia to Washington. 2010 tax preparation It would have cost $1,800 to ship the stored furniture from North Carolina to Washington. 2010 tax preparation He can deduct only $1,800 of the $3,000 he paid. 2010 tax preparation The amount he can deduct for moving his furniture is $2,700 ($900 + $1,800). 2010 tax preparation You cannot deduct the cost of moving furniture you buy on the way to your new home. 2010 tax preparation   Storage expenses. 2010 tax preparation   You can include the cost of storing and insuring household goods and personal effects within any period of 30 consecutive days after the day your things are moved from your former home and before they are delivered to your new home. 2010 tax preparation Travel expenses. 2010 tax preparation   You can deduct the cost of transportation and lodging for yourself and members of your household while traveling from your former home to your new home. 2010 tax preparation This includes expenses for the day you arrive. 2010 tax preparation    The day of arrival is the day you secure lodging at the new place of residence, even if the lodging is on a temporary basis. 2010 tax preparation   You can include any lodging expenses you had in the area of your former home within one day after you could no longer live in your former home because your furniture had been moved. 2010 tax preparation   The members of your household do not have to travel together or at the same time. 2010 tax preparation However, you can only deduct expenses for one trip per person. 2010 tax preparation If you use your own car, see Travel by car, earlier. 2010 tax preparation Example. 2010 tax preparation   In February 2013, Josh and Robyn Black moved from Minneapolis to Washington, DC, where Josh was starting a new job. 2010 tax preparation Josh drove the family car to Washington, DC, a trip of 1,100 miles. 2010 tax preparation His expenses were $264. 2010 tax preparation 00 for mileage (1,100 miles x 24 cents per mile) plus $40 for tolls and $150 for lodging, for a total of $454. 2010 tax preparation 00. 2010 tax preparation One week later, Robyn flew from Minneapolis to Washington, DC. 2010 tax preparation Her only expense was her $400 plane ticket. 2010 tax preparation The Blacks' deduction is $854. 2010 tax preparation 00 (Josh's $454. 2010 tax preparation 00 + Robyn's $400). 2010 tax preparation Moves to Locations Outside the United States To deduct expenses for a move outside the United States, you must move to the area of a new place of work outside the United States and its possessions. 2010 tax preparation You must meet the requirements under Who Can Deduct Moving Expenses , earlier. 2010 tax preparation Deductible expenses. 2010 tax preparation   If your move is to a location outside the United States and its possessions, you can deduct the following expenses. 2010 tax preparation The cost of moving household goods and personal effects from your former home to your new home. 2010 tax preparation The cost of traveling (including lodging) from your former home to your new home. 2010 tax preparation The cost of moving household goods and personal effects to and from storage. 2010 tax preparation The cost of storing household goods and personal effects while you are at the new job location. 2010 tax preparation The first two items were explained earlier under Moves to Locations in the United States . 2010 tax preparation The last two items are discussed, later. 2010 tax preparation Moving goods and effects to and from storage. 2010 tax preparation   You can deduct the reasonable expenses of moving your personal effects to and from storage. 2010 tax preparation Storage expenses. 2010 tax preparation   You can deduct the reasonable expenses of storing your household goods and personal effects for all or part of the time the new job location remains your main job location. 2010 tax preparation Moving expenses allocable to excluded foreign income. 2010 tax preparation   If you live and work outside the United States, you may be able to exclude from income part or all of the income you earn in the foreign country. 2010 tax preparation You may also be able to claim a foreign housing exclusion or deduction. 2010 tax preparation If you claim the foreign earned income or foreign housing exclusion, you cannot deduct the part of your moving expenses that relates to the excluded income. 2010 tax preparation    Publication 54, Tax Guide for U. 2010 tax preparation S. 2010 tax preparation Citizens and Resident Aliens Abroad, explains how to figure the part of your moving expenses that relates to excluded income. 2010 tax preparation You can get the publication from most U. 2010 tax preparation S. 2010 tax preparation embassies and consulates, or see How To Get Tax Help at the end of this publication. 2010 tax preparation Nondeductible Expenses You cannot deduct the following items as moving expenses. 2010 tax preparation Any part of the purchase price of your new home. 2010 tax preparation Car tags. 2010 tax preparation Driver's license. 2010 tax preparation Expenses of buying or selling a home (including closing costs, mortgage fees, and points). 2010 tax preparation Expenses of entering into or breaking a lease. 2010 tax preparation Home improvements to help sell your home. 2010 tax preparation Loss on the sale of your home. 2010 tax preparation Losses from disposing of memberships in clubs. 2010 tax preparation Mortgage penalties. 2010 tax preparation Pre-move househunting expenses. 2010 tax preparation Real estate taxes. 2010 tax preparation Refitting of carpet and draperies. 2010 tax preparation Return trips to your former residence. 2010 tax preparation Security deposits (including any given up due to the move). 2010 tax preparation Storage charges except those incurred in transit and for foreign moves. 2010 tax preparation No double deduction. 2010 tax preparation   You cannot take a moving expense deduction and a business expense deduction for the same expenses. 2010 tax preparation You must decide if your expenses are deductible as moving expenses or as business expenses. 2010 tax preparation For example, expenses you have for travel, meals, and lodging while temporarily working at a place away from your regular place of work may be deductible as business expenses if you are considered away from home on business. 2010 tax preparation In most cases, your work at a single location is considered temporary if it is realistically expected to last (and does in fact last) for one year or less. 2010 tax preparation   See Publication 463, Travel, Entertainment, Gift, and Car Expenses, for information on deducting your business expenses. 2010 tax preparation Reimbursements This section explains how to report a reimbursement (including advances and allowances) on your tax return. 2010 tax preparation It covers reimbursements for any of your moving expenses discussed in this publication. 2010 tax preparation It also explains the types of reimbursements on which your employer must withhold income, social security, and Medicare taxes. 2010 tax preparation Types of Reimbursement Plans If you receive a reimbursement for your moving expenses, how you report this amount and your expenses depends on whether the reimbursement is paid to you under an accountable plan or a nonaccountable plan. 2010 tax preparation For a quick overview of how to report your reimbursement and moving expenses, see Table 2 in the section on How and When To Report, later. 2010 tax preparation Your employer should tell you what method of reimbursement is used and what records are required. 2010 tax preparation Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. 2010 tax preparation Your expenses must have a business connection – that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. 2010 tax preparation Two examples of this are the reasonable expenses of moving your possessions from your former home to your new home, and traveling from your former home to your new home. 2010 tax preparation You must adequately account to your employer for these expenses within a reasonable period of time. 2010 tax preparation You must return any excess reimbursement or allowance within a reasonable period of time. 2010 tax preparation Adequate accounting. 2010 tax preparation   You adequately account for your moving expenses by giving your employer documentation of those expenses, such as a statement of expense, an account book, a diary, or a similar record in which you entered each expense at or near the time you had it. 2010 tax preparation Documentation includes receipts, canceled checks, and bills. 2010 tax preparation Reasonable period of time. 2010 tax preparation   What constitutes a “reasonable period of time” depends on the facts and circumstances of your situation. 2010 tax preparation However, regardless of the facts and circumstances, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. 2010 tax preparation You receive an advance within 30 days of the time you have an expense. 2010 tax preparation You adequately account for your expenses within 60 days after they were paid or incurred. 2010 tax preparation You return any excess reimbursement within 120 days after the expense was paid or incurred. 2010 tax preparation You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. 2010 tax preparation Excess reimbursement. 2010 tax preparation   This includes any amount you are paid (including advances and allowances) that is more than the moving expenses that you adequately accounted for to your employer within a reasonable period of time. 2010 tax preparation Returning excess reimbursements. 2010 tax preparation   You must be required to return any excess reimbursement for your moving expenses to the person paying the reimbursement. 2010 tax preparation Excess reimbursement includes any amount for which you did not adequately account within a reasonable period of time. 2010 tax preparation For example, if you received an advance and you did not spend all the money on deductible moving expenses, or you do not have proof of all your expenses, you have an excess reimbursement. 2010 tax preparation You meet accountable plan rules. 2010 tax preparation   If for all reimbursements you meet the three rules for an accountable plan (listed earlier), your employer should not include any reimbursements of expenses in your income in box 1 of your Form W-2, Wage and Tax Statement. 2010 tax preparation Instead, your employer should include the reimbursements in box 12 of your Form W-2. 2010 tax preparation Example. 2010 tax preparation You lived in Boston and accepted a job in Atlanta. 2010 tax preparation Under an accountable plan, your employer reimbursed you for your actual traveling expenses from Boston to Atlanta and the cost of moving your furniture to Atlanta. 2010 tax preparation Your employer will include the reimbursement on your Form W-2, box 12, with Code P. 2010 tax preparation If your moving expenses are more than your reimbursement, you may be able to deduct your additional expenses (see How and When To Report, later). 2010 tax preparation You do not meet accountable plan rules. 2010 tax preparation   You may be reimbursed by your employer, but you may not meet all three rules for part of your expenses. 2010 tax preparation   If your deductible expenses are reimbursed under an otherwise accountable plan but you do not return, within a reasonable period, any reimbursement of expenses for which you did not adequately account, then only the amount for which you did adequately account is considered as paid under an accountable plan. 2010 tax preparation The remaining expenses are treated as having been reimbursed under a nonaccountable plan (discussed below). 2010 tax preparation Reimbursement of nondeductible expenses. 2010 tax preparation   You may be reimbursed by your employer for moving expenses, some of which are deductible expenses and some of which are not deductible. 2010 tax preparation The reimbursements you receive for the nondeductible expenses and any allowances for miscellaneous or unspecified expenses are treated as paid under a nonaccountable plan (see below) and are included in your income. 2010 tax preparation If you are reimbursed by your employer for the taxes you must pay (including social security and Medicare taxes) because you have received taxable moving expense reimbursements, you must pay tax on this reimbursement as well, and it is treated as paid under a nonaccountable plan. 2010 tax preparation Nonaccountable Plans A nonaccountable plan is a reimbursement arrangement that does not meet the three rules listed earlier under Accountable Plans. 2010 tax preparation In addition, the following payments will be treated as paid under a nonaccountable plan. 2010 tax preparation Excess reimbursements you fail to return to your employer. 2010 tax preparation Reimbursements of nondeductible expenses. 2010 tax preparation See Reimbursement of nondeductible expenses, earlier. 2010 tax preparation If an arrangement pays for your moving expenses by reducing your wages, salary, or other pay, the amount of the reduction will be treated as a payment made under a nonaccountable plan. 2010 tax preparation This is because you are entitled to receive the full amount of your pay regardless of whether you had any moving expenses. 2010 tax preparation If you are not sure if the moving expense reimbursement arrangement is an accountable or nonaccountable plan, ask your employer. 2010 tax preparation Your employer will add the amount of any reimbursement paid to you under a nonaccountable plan to your wages, salary, or other pay. 2010 tax preparation Your employer will report the total in box 1 of your Form W-2. 2010 tax preparation Example. 2010 tax preparation To get you to work in another city, your new employer reimburses you under an accountable plan for the $7,500 loss on the sale of your home. 2010 tax preparation Because this is a reimbursement of a nondeductible expense, it is treated as paid under a nonaccountable plan and must be included as income in box 1 of your Form W-2. 2010 tax preparation Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Do not include in income any moving expense payment you received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. 2010 tax preparation These payments are made to persons displaced from their homes, businesses, or farms by federal projects. 2010 tax preparation Tax Withholding and Estimated Tax Your employer must withhold income, social security, and Medicare taxes from reimbursements and allowances paid to you that are included in your income. 2010 tax preparation See Reimbursements included in income, later. 2010 tax preparation Reimbursements excluded from income. 2010 tax preparation   Your employer should not include in your wages reimbursements paid under an accountable plan (explained earlier) for moving expenses that you: Could deduct if you had paid or incurred them, and Did not deduct in an earlier year. 2010 tax preparation These reimbursements are fringe benefits excludable from your income as qualified moving expense reimbursements. 2010 tax preparation Your employer should report these reimbursements on your Form W-2, box 12, with Code P. 2010 tax preparation    You cannot claim a moving expense deduction for expenses covered by reimbursements excluded from income (see Accountable Plans under Types of Reimbursement Plans, earlier). 2010 tax preparation Expenses deducted in earlier year. 2010 tax preparation   If you receive a reimbursement this year for moving expenses deducted in an earlier year, and the reimbursement is not included as wages in box 1 of your Form W-2, you must include the reimbursement in income on Form 1040, line 21. 2010 tax preparation Your employer should show the amount of your reimbursement in box 12 of your Form W-2. 2010 tax preparation Reimbursements included in income. 2010 tax preparation   Your employer must include in your income any reimbursements made (or treated as made) under a nonaccountable plan, even though they are for deductible moving expenses. 2010 tax preparation See Nonaccountable Plans under Types of Reimbursement Plans, earlier. 2010 tax preparation Your employer also must include in your gross income as wages any reimbursements of, or payments for, nondeductible moving expenses. 2010 tax preparation This includes amounts your employer reimbursed you under an accountable plan (explained earlier) for meals, househunting trips, and real estate expenses. 2010 tax preparation It also includes reimbursements that exceed your deductible expenses and that you do not return to your employer. 2010 tax preparation Reimbursement for deductible and nondeductible expenses. 2010 tax preparation    If your employer reimburses you for both deductible and nondeductible moving expenses, your employer must determine the amount of the reimbursement that is not taxable and not subject to withholding. 2010 tax preparation Your employer must treat any remaining amount as taxable wages and withhold income, social security, and Medicare taxes. 2010 tax preparation Amount of income tax withheld. 2010 tax preparation   If the reimbursements or allowances you receive are taxable, the amount of income tax your employer will withhold depends on several factors. 2010 tax preparation It depends in part on whether income tax is withheld from your regular wages, on whether the reimbursements and allowances are added to your regular wages, and on any information you have given to your employer on Form W-4, Employee's Withholding Allowance Certificate. 2010 tax preparation   Your employer can treat your reimbursements as supplemental wages and not include the reimbursements and allowances in your regular wages. 2010 tax preparation The employer can withhold income tax on supplemental wages at a flat rate which may be different from your regular tax rate. 2010 tax preparation Estimated tax. 2010 tax preparation    If you must make estimated tax payments, you need to take into account any taxable reimbursements and deductible moving expenses in figuring your estimated tax. 2010 tax preparation For details about estimated taxes, see Publication 505, Tax Withholding and Estimated Tax. 2010 tax preparation How and When To Report This section explains how and when to report your moving expenses and any reimbursements or allowances you received for your move. 2010 tax preparation For a quick overview, see Table 2, later. 2010 tax preparation Form 3903 Use Form 3903 to figure your moving expense deduction. 2010 tax preparation Use a separate Form 3903 for each move for which you are deducting expenses. 2010 tax preparation Do not file Form 3903 if all of the following apply. 2010 tax preparation You moved to a location outside the United States in an earlier year. 2010 tax preparation You are claiming only storage fees while you were away from the United States. 2010 tax preparation Any amount your employer paid for the storage fees is included as wages in box 1 of your Form W-2. 2010 tax preparation Instead, enter the storage fees (after the reduction for the part that is allocable to excluded income) on Form 1040, line 26, and enter “Storage” on the dotted line next to the amount. 2010 tax preparation If you meet the special rules for members of the Armed Forces, see How to complete Form 3903 for members of the Armed Forces under Members of the Armed Forces, later. 2010 tax preparation Completing Form 3903. 2010 tax preparation   Complete Worksheet 1, earlier, or the Distance Test Worksheet in the instructions for Form 3903 to see whether you meet the distance test. 2010 tax preparation If so, complete lines 1 through 3 of the form using your actual expenses (except, if you use your own car, you can figure expenses based on the standard mileage rate, instead of actual amounts for gas and oil). 2010 tax preparation Enter on line 4 the total amount of your moving expense reimbursement that was excluded from your wages. 2010 tax preparation This excluded amount should be identified on Form W-2, box 12, with code P. 2010 tax preparation Expenses greater than reimbursement. 2010 tax preparation   If line 3 is more than line 4, subtract line 4 from line 3 and enter the result on line 5 and on Form 1040, line 26. 2010 tax preparation This is your moving expense deduction. 2010 tax preparation Expenses equal to or less than reimbursement. 2010 tax preparation    If line 3 is equal to or less than line 4, you have no moving expense deduction. 2010 tax preparation Subtract line 3 from line 4 and, if the result is more than zero, include it as income on Form 1040, line 7. 2010 tax preparation Table 2. 2010 tax preparation Reporting Your Moving Expenses and Reimbursements IF your Form W-2 shows. 2010 tax preparation . 2010 tax preparation . 2010 tax preparation AND you have. 2010 tax preparation . 2010 tax preparation . 2010 tax preparation THEN. 2010 tax preparation . 2010 tax preparation . 2010 tax preparation your reimbursement reported only  in box 12 with code P moving expenses greater than the  amount in box 12 file Form 3903 showing all allowable  expenses* and reimbursements. 2010 tax preparation your reimbursement reported only  in box 12 with code P moving expenses equal to the amount  in box 12 do not file Form 3903. 2010 tax preparation your reimbursement divided  between box 12 and box 1 moving expenses greater than the  amount in box 12 file Form 3903 showing all allowable  expenses,* but only the  reimbursements reported in box 12 of  Form W-2. 2010 tax preparation your entire reimbursement reported  as wages in box 1 moving expenses file Form 3903 showing all allowable  expenses,* but do not show any  reimbursements. 2010 tax preparation no reimbursement moving expenses file Form 3903 showing all allowable  expenses. 2010 tax preparation * * See Deductible Moving Expenses, earlier, for allowable expenses. 2010 tax preparation    Where to deduct. 2010 tax preparation   Deduct your moving expenses on Form 1040, line 26. 2010 tax preparation The amount of moving expenses you can deduct is shown on Form 3903, line 5. 2010 tax preparation    You cannot deduct moving expenses on Form 1040EZ or Form 1040A. 2010 tax preparation   When To Deduct Expenses You may have a choice of when to deduct your moving expenses. 2010 tax preparation Expenses not reimbursed. 2010 tax preparation   If you were not reimbursed, deduct your moving expenses in the year you paid or incurred the expenses. 2010 tax preparation Example. 2010 tax preparation In December 2012, your employer transferred you to another city in the United States, where you still work. 2010 tax preparation You are single and were not reimbursed for your moving expenses. 2010 tax preparation In 2012, you paid for moving your furniture and deducted these expenses on your 2012 tax return. 2010 tax preparation In January 2013, you paid for travel to the new city. 2010 tax preparation You can deduct these additional expenses on your 2013 tax return. 2010 tax preparation Expenses reimbursed. 2010 tax preparation   If you are reimbursed for your expenses and you use the cash method of accounting, you can deduct your expenses either in the year you paid them or in the year you received the reimbursement. 2010 tax preparation If you use the cash method of accounting, you can choose to deduct the expenses in the year you are reimbursed even though you paid the expenses in a different year. 2010 tax preparation See Choosing when to deduct, next. 2010 tax preparation   If you deduct your expenses and you receive the reimbursement in a later year, you must include the reimbursement in your income on Form 1040, line 21. 2010 tax preparation Choosing when to deduct. 2010 tax preparation   If you use the cash method of accounting, which is used by most individuals, you can choose to deduct moving expenses in the year your employer reimburses you if: You paid the expenses in a year before the year of reimbursement, or You paid the expenses in the year immediately after the year of reimbursement but by the due date, including extensions, for filing your return for the reimbursement year. 2010 tax preparation How to make the choice. 2010 tax preparation   You choose to deduct moving expenses in the year you received reimbursement by taking the deduction on your return, or amended return, for that year. 2010 tax preparation    You cannot deduct any moving expenses for which you received a reimbursement that was not included in your income. 2010 tax preparation Illustrated Example Tom and Peggy Smith are married and have two children. 2010 tax preparation They owned a home in Detroit where Tom worked. 2010 tax preparation On February 8, 2013, Tom's employer told him that he would be transferred to San Diego as of April 10 that year. 2010 tax preparation Peggy flew to San Diego on March 1 to look for a new home. 2010 tax preparation She put a down payment of $25,000 on a house being built and returned to Detroit on March 4. 2010 tax preparation The Smiths sold their Detroit home for $1,500 less than they paid for it. 2010 tax preparation They contracted to have their personal effects moved to San Diego on April 3. 2010 tax preparation The family drove to San Diego where they found that their new home was not finished. 2010 tax preparation They stayed in a nearby motel until the house was ready on May 1. 2010 tax preparation On April 10, Tom went to work in the San Diego plant where he still works. 2010 tax preparation Their records for the move show: 1) Peggy's pre-move househunting  trip:       Travel and lodging   $ 449       Meals   75   $ 524 2) Down payment on San Diego  home 25,000 3) Real estate commission paid on  sale of Detroit home 3,500 4) Loss on sale of Detroit home (not  including real estate commission) 1,500 5) Amount paid for moving personal  effects (furniture, other household  goods, etc. 2010 tax preparation ) 8,000 6) Expenses of driving to San Diego:       Mileage (Start 14,278;  End 16,478) 2,200 miles at 24 cents a mile   $ 528       Lodging   180       Meals   320   1,028 7) Cost of temporary living  expenses in San Diego:       Motel rooms   $1,450       Meals   2,280   3,730 Total $43,282   Tom was reimbursed $10,907 under an accountable plan. 2010 tax preparation His employer gave him the following breakdown of the reimbursement that was allowed under the employer's plan. 2010 tax preparation Moving personal effects   $6,800 Travel (and lodging) to San Diego   708 Travel (and lodging) for househunting trip   449 Lodging for temporary quarters   1,450 Loss on sale of home   1,500 Total reimbursement   $10,907 The employer included this reimbursement on Tom's Form W-2 for the year. 2010 tax preparation The reimbursement of allowable expenses, $7,508 for moving household goods and travel to San Diego, was included in box 12 of Form W-2. 2010 tax preparation His employer identified this amount with code P. 2010 tax preparation The employer included the balance, $3,399 reimbursement of nonallowable expenses, in box 1 of Form W-2 with Tom's other wages. 2010 tax preparation Tom must include this amount on Form 1040, line 7. 2010 tax preparation The employer withholds taxes from the $3,399, as discussed under Reimbursement for deductible and nondeductible expenses under Tax Withholding and Estimated Tax, earlier. 2010 tax preparation Also, Tom's employer could have given him a separate Form W-2 for his moving expense reimbursement. 2010 tax preparation To figure his tax deduction for moving expenses, Tom enters the following amounts on Form 3903. 2010 tax preparation Item 5 — moving personal effects (line 1)   $8,000 Item 6 — driving to San Diego ($528 + $180)  (line 2)   708 Total tax deductible moving expenses (line 3)   $8,708 Minus: Reimbursement included in box 12  of Form W-2 (line 4)   7,508 Tax deduction for moving expenses (line 5)   $1,200   Tom's Form 3903 is shown, later. 2010 tax preparation He also enters his deduction, $1,200, on Form 1040, line 26. 2010 tax preparation Nondeductible expenses. 2010 tax preparation   Of the $43,282 expenses that Tom and Peggy incurred, the following items totaling $34,574 ($43,282 – $8,708) cannot be deducted. 2010 tax preparation Item 1 — pre-move househunting expenses of $524. 2010 tax preparation Item 2 — the $25,000 down payment on the San Diego home. 2010 tax preparation If any part of it were for payment of deductible taxes or interest on the mortgage on the house, that part would be deductible as an itemized deduction. 2010 tax preparation Item 3 — the $3,500 real estate commission paid on the sale of the Detroit home. 2010 tax preparation The commission is used to figure the gain or loss on the sale. 2010 tax preparation Item 4 — the $1,500 loss on the sale of the Detroit home. 2010 tax preparation Item 6 — the $320 expense for meals while driving to San Diego. 2010 tax preparation (However, the lodging and car expenses are deductible. 2010 tax preparation ) Item 7 — temporary living expenses of $3,730. 2010 tax preparation    This image is too large to be displayed in the current screen. 2010 tax preparation Please click the link to view the image. 2010 tax preparation 2012 Form 3903 Moving Expenses Members of the Armed Forces If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you do not have to meet the distance and time tests, discussed earlier. 2010 tax preparation You can deduct your unreimbursed moving expenses. 2010 tax preparation A permanent change of station includes: A move from your home to your first post of active duty, A move from one permanent post of duty to another, and A move from your last post of duty to your home or to a nearer point in the United States. 2010 tax preparation The move must occur within one year of ending your active duty or within the period allowed under the Joint Travel Regulations. 2010 tax preparation Spouse and dependents. 2010 tax preparation   If a member of the Armed Forces dies, is imprisoned, or deserts, a permanent change of station for the spouse or dependent includes a move to: The place of enlistment, The member's, spouse's, or dependent's home of record, or A nearer point in the United States. 2010 tax preparation   If the military moves you, your spouse, and dependents, to or from separate locations, the moves are treated as a single move to your new main job location. 2010 tax preparation Services or reimbursements provided by government. 2010 tax preparation   Do not include in income the value of moving and storage services provided by the government because of a permanent change of station. 2010 tax preparation In general, if the total reimbursements or allowances you receive from the government because of the move are more than your actual moving expenses, the government must include the excess in your wages on Form W-2. 2010 tax preparation However, the excess portion of a dislocation allowance, a temporary lodging allowance, a temporary lodging expense, or a move-in housing allowance is not included in income and should not be included in box 1 of Form W-2. 2010 tax preparation   If your reimbursements or allowances are less than your actual moving expenses, do not include the reimbursements or allowances in income. 2010 tax preparation You can deduct the expenses that are more than your reimbursements. 2010 tax preparation See Deductible Moving Expenses, earlier. 2010 tax preparation How to complete Form 3903 for members of the Armed Forces. 2010 tax preparation    Take the following steps. 2010 tax preparation Complete lines 1 through 3 of the form, using your actual expenses. 2010 tax preparation Do not include any expenses for moving services provided by the government. 2010 tax preparation Also, do not include any expenses that were reimbursed by an allowance you do not have to include in your income. 2010 tax preparation Enter on line 4 the total reimbursements and allowances you received from the government for the expenses claimed on lines 1 and 2. 2010 tax preparation Do not include the value of moving or storage services provided by the government. 2010 tax preparation Also, do not include any part of a dislocation allowance, a temporary lodging allowance, a temporary lodging expense, or a move-in housing allowance. 2010 tax preparation Complete line 5. 2010 tax preparation If line 3 is more than line 4, subtract line 4 from line 3 and enter the result on line 5 and on Form 1040, line 26. 2010 tax preparation This is your moving expense deduction. 2010 tax preparation If line 3 is equal to or less than line 4, you do not have a moving expense deduction. 2010 tax preparation Subtract line 3 from line 4 and, if the result is more than zero, enter it on Form 1040, line 7. 2010 tax preparation If the military moves you, your spouse and dependents, to or from different locations, treat these moves as a single move. 2010 tax preparation    Do not deduct any expenses for moving or storage services provided by the government. 2010 tax preparation How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. 2010 tax preparation Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. 2010 tax preparation Free help with your tax return. 2010 tax preparation   Free help in preparing your return is available nationwide from IRS-certified volunteers. 2010 tax preparation The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. 2010 tax preparation The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. 2010 tax preparation Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 2010 tax preparation Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. 2010 tax preparation To find the nearest VITA or TCE site, visit IRS. 2010 tax preparation gov or call 1-800-906-9887. 2010 tax preparation   As part of the TCE program, AARP offers the Tax-Aide counseling program. 2010 tax preparation To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2010 tax preparation aarp. 2010 tax preparation org/money/taxaide or call 1-888-227-7669. 2010 tax preparation   For more information on these programs, go to IRS. 2010 tax preparation gov and enter “VITA” in the search box. 2010 tax preparation Internet. 2010 tax preparation IRS. 2010 tax preparation gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. 2010 tax preparation Apply for an Employer Identification Number (EIN). 2010 tax preparation Go to IRS. 2010 tax preparation gov and enter Apply for an EIN in the search box. 2010 tax preparation Request an Electronic Filing PIN by going to IRS. 2010 tax preparation gov and entering Electronic Filing PIN in the search box. 2010 tax preparation Check the status of your 2013 refund with Where's My Refund? Go to IRS. 2010 tax preparation gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2010 tax preparation If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 2010 tax preparation Check the status of your amended return. 2010 tax preparation Go to IRS. 2010 tax preparation gov and enter Where's My Amended Return in the search box. 2010 tax preparation Download forms, instructions, and publications, including some accessible versions. 2010 tax preparation Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. 2010 tax preparation gov or IRS2Go. 2010 tax preparation Tax return and tax account transcripts are generally available for the current year and past three years. 2010 tax preparation Figure your income tax withholding with the IRS Withholding Calculator on IRS. 2010 tax preparation gov. 2010 tax preparation Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 2010 tax preparation Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 2010 tax preparation gov. 2010 tax preparation Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. 2010 tax preparation gov or IRS2Go. 2010 tax preparation Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. 2010 tax preparation An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. 2010 tax preparation Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. 2010 tax preparation If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. 2010 tax preparation Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 2010 tax preparation Locate the nearest volunteer help site with the VITA Locator Tool on IRS. 2010 tax preparation gov. 2010 tax preparation Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 2010 tax preparation The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. 2010 tax preparation Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. 2010 tax preparation AARP offers the Tax-Aide counseling program as part of the TCE program. 2010 tax preparation Visit AARP's website to find the nearest Tax-Aide location. 2010 tax preparation Research your tax questions. 2010 tax preparation Search publications and instructions by topic or keyword. 2010 tax preparation Read the Internal Revenue Code, regulations, or other official guidance. 2010 tax preparation Read Internal Revenue Bulletins. 2010 tax preparation Sign up to receive local and national tax news by email. 2010 tax preparation Phone. 2010 tax preparation You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 2010 tax preparation Download the free IRS2Go mobile app from the iTunes app store or from Google Play. 2010 tax preparation Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 2010 tax preparation Call to locate the nearest volunteer help site, 1-800-906-9887. 2010 tax preparation Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 2010 tax preparation The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. 2010 tax preparation Most VITA and TCE sites offer free electronic filing. 2010 tax preparation Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 2010 tax preparation Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 2010 tax preparation Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. 2010 tax preparation The automated Where's My Refund? information is available 24 hours a day, 7 days a week. 2010 tax preparation If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 2010 tax preparation Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. 2010 tax preparation Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2010 tax preparation Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. 2010 tax preparation Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 2010 tax preparation Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). 2010 tax preparation You should receive your order within 10 business days. 2010 tax preparation Call to order transcripts of your tax returns or tax account, 1-800-908-9946. 2010 tax preparation Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. 2010 tax preparation Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. 2010 tax preparation Call to ask tax questions, 1-800-829-1040. 2010 tax preparation Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 2010 tax preparation The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 2010 tax preparation These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. 2010 tax preparation gsa. 2010 tax preparation gov/fedrelay. 2010 tax preparation Walk-in. 2010 tax preparation You can find a selection of forms, publications and services — in-person, face-to-face. 2010 tax preparation Products. 2010 tax preparation You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2010 tax preparation Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2010 tax preparation Services. 2010 tax preparation You can walk in to your local TAC most business days for personal, face-to-face tax help. 2010 tax preparation An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. 2010 tax preparation If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. 2010 tax preparation No appointment is necessary—just walk in. 2010 tax preparation Before visiting, check www. 2010 tax preparation irs. 2010 tax preparation gov/localcontacts for hours of operation and services provided. 2010 tax preparation Mail. 2010 tax preparation You can send your order for forms, instructions, and publications to the address below. 2010 tax preparation You should receive a response within 10 business days after your request is received. 2010 tax preparation  Internal Revenue Service 1201 N. 2010 tax preparation Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. 2010 tax preparation   The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2010 tax preparation Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 2010 tax preparation What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. 2010 tax preparation We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 2010 tax preparation You face (or your business is facing) an immediate threat of adverse action. 2010 tax preparation You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 2010 tax preparation   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 2010 tax preparation Here's why we can help: TAS is an independent organization within the IRS. 2010 tax preparation Our advocates know how to work with the IRS. 2010 tax preparation Our services are free and tailored to meet your needs. 2010 tax preparation We have offices in every state, the District of Columbia, and Puerto Rico. 2010 tax preparation How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. 2010 tax preparation irs. 2010 tax preparation gov/advocate, or call us toll-free at 1-877-777-4778. 2010 tax preparation How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 2010 tax preparation If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. 2010 tax preparation irs. 2010 tax preparation gov/sams. 2010 tax preparation Low Income Taxpayer Clinics. 2010 tax preparation   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. 2010 tax preparation Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 2010 tax preparation Visit www. 2010 tax preparation TaxpayerAdvocate. 2010 tax preparation irs. 2010 tax preparation gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. 2010 tax preparation Prev  Up  Next   Home   More Online Publications