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2013 1040ez Instructions

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2013 1040ez Instructions

2013 1040ez instructions 7. 2013 1040ez instructions   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. 2013 1040ez instructions For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return. 2013 1040ez instructions There is no limit on the number of separate Coverdell ESAs that can be established for a designated beneficiary. 2013 1040ez instructions However, total contributions for the beneficiary in any year cannot be more than $2,000, no matter how many accounts have been established. 2013 1040ez instructions See Contributions , later. 2013 1040ez instructions This benefit applies not only to higher education expenses, but also to elementary and secondary education expenses. 2013 1040ez instructions What is the tax benefit of the Coverdell ESA. 2013 1040ez instructions   Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed. 2013 1040ez instructions   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. 2013 1040ez instructions See Tax-Free Distributions , later. 2013 1040ez instructions    Table 7-1 summarizes the main features of the Coverdell ESA. 2013 1040ez instructions Table 7-1. 2013 1040ez instructions Coverdell ESA at a Glance Do not rely on this table alone. 2013 1040ez instructions It provides only general highlights. 2013 1040ez instructions See the text for definitions of terms in bold type and for more complete explanations. 2013 1040ez instructions Question Answer What is a Coverdell ESA? A savings account that is set up to pay the qualified education expenses of a designated beneficiary. 2013 1040ez instructions 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. 2013 1040ez instructions Who can have a Coverdell ESA? Any beneficiary who is under age 18 or is a special needs beneficiary. 2013 1040ez instructions 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). 2013 1040ez instructions Are distributions tax free? Yes, if the distributions are not more than the beneficiary's adjusted qualified education expenses for the year. 2013 1040ez instructions 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. 2013 1040ez instructions When the account is established, the designated beneficiary must be under age 18 or a special needs beneficiary. 2013 1040ez instructions To be treated as a Coverdell ESA, the account must be designated as a Coverdell ESA when it is created. 2013 1040ez instructions The document creating and governing the account must be in writing and must satisfy the following requirements. 2013 1040ez instructions The trustee or custodian must be a bank or an entity approved by the IRS. 2013 1040ez instructions The document must provide that the trustee or custodian can only accept a contribution that meets all of the following conditions. 2013 1040ez instructions The contribution is in cash. 2013 1040ez instructions The contribution is made before the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. 2013 1040ez instructions The contribution would not result in total contributions for the year (not including rollover contributions) being more than $2,000. 2013 1040ez instructions Money in the account cannot be invested in life insurance contracts. 2013 1040ez instructions Money in the account cannot be combined with other property except in a common trust fund or common investment fund. 2013 1040ez instructions The balance in the account generally must be distributed within 30 days after the earlier of the following events. 2013 1040ez instructions The beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary. 2013 1040ez instructions The beneficiary's death. 2013 1040ez instructions Qualified Education Expenses Generally, these are expenses required for the enrollment or attendance of the designated beneficiary at an eligible educational institution. 2013 1040ez instructions For purposes of Coverdell ESAs, the expenses can be either qualified higher education expenses or qualified elementary and secondary education expenses. 2013 1040ez instructions Designated beneficiary. 2013 1040ez instructions   This is the individual named in the document creating the trust or custodial account to receive the benefit of the funds in the account. 2013 1040ez instructions Contributions to a qualified tuition program (QTP). 2013 1040ez instructions   A contribution to a QTP is a qualified education expense if the contribution is on behalf of the designated beneficiary of the Coverdell ESA. 2013 1040ez instructions 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. 2013 1040ez instructions See chapter 8, Qualified Tuition Program . 2013 1040ez instructions 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. 2013 1040ez instructions Eligible postsecondary school. 2013 1040ez instructions   This is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. 2013 1040ez instructions S. 2013 1040ez instructions Department of Education. 2013 1040ez instructions It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2013 1040ez instructions The educational institution should be able to tell you if it is an eligible educational institution. 2013 1040ez instructions   Certain educational institutions located outside the United States also participate in the U. 2013 1040ez instructions S. 2013 1040ez instructions Department of Education's Federal Student Aid (FSA) programs. 2013 1040ez instructions Eligible elementary or secondary school. 2013 1040ez instructions   This is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. 2013 1040ez instructions Qualified Higher Education Expenses These are expenses related to enrollment or attendance at an eligible postsecondary school. 2013 1040ez instructions 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. 2013 1040ez instructions The following expenses must be required for enrollment or attendance of a designated beneficiary at an eligible postsecondary school. 2013 1040ez instructions Tuition and fees. 2013 1040ez instructions Books, supplies, and equipment. 2013 1040ez instructions 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. 2013 1040ez instructions Expenses for room and board must be incurred by students who are enrolled at least half-time (defined below). 2013 1040ez instructions The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. 2013 1040ez instructions 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. 2013 1040ez instructions The actual amount charged if the student is residing in housing owned or operated by the school. 2013 1040ez instructions Half-time student. 2013 1040ez instructions   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. 2013 1040ez instructions Qualified Elementary and Secondary Education Expenses These are expenses related to enrollment or attendance at an eligible elementary or secondary school. 2013 1040ez instructions As shown in the following list, to be qualified, some of the expenses must be required or provided by the school. 2013 1040ez instructions There are special rules for computer-related expenses. 2013 1040ez instructions The following expenses must be incurred by a designated beneficiary in connection with enrollment or attendance at an eligible elementary or secondary school. 2013 1040ez instructions Tuition and fees. 2013 1040ez instructions Books, supplies, and equipment. 2013 1040ez instructions Academic tutoring. 2013 1040ez instructions Special needs services for a special needs beneficiary. 2013 1040ez instructions The following expenses must be required or provided by an eligible elementary or secondary school in connection with attendance or enrollment at the school. 2013 1040ez instructions Room and board. 2013 1040ez instructions Uniforms. 2013 1040ez instructions Transportation. 2013 1040ez instructions Supplementary items and services (including extended day programs). 2013 1040ez instructions 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. 2013 1040ez instructions (This does not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature. 2013 1040ez instructions ) 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. 2013 1040ez instructions For individuals filing joint returns, that amount is $220,000. 2013 1040ez instructions Organizations, such as corporations and trusts, can also contribute to Coverdell ESAs. 2013 1040ez instructions There is no requirement that an organization's income be below a certain level. 2013 1040ez instructions Contributions must meet all of the following requirements. 2013 1040ez instructions They must be in cash. 2013 1040ez instructions They cannot be made after the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. 2013 1040ez instructions They must be made by the due date of the contributor's tax return (not including extensions). 2013 1040ez instructions 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. 2013 1040ez instructions Contributions can be made, without penalty, to both a Coverdell ESA and a QTP in the same year for the same beneficiary. 2013 1040ez instructions Table 7-2 summarizes many of the features of contributing to a Coverdell ESA. 2013 1040ez instructions When contributions considered made. 2013 1040ez instructions   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. 2013 1040ez instructions They must be made by the due date (not including extensions) for filing your return for the preceding year. 2013 1040ez instructions   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. 2013 1040ez instructions 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. 2013 1040ez instructions Limit for each designated beneficiary. 2013 1040ez instructions   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. 2013 1040ez instructions This includes contributions (other than rollovers) to all the beneficiary's Coverdell ESAs from all sources. 2013 1040ez instructions Rollovers are discussed under Rollovers and Other Transfers , later. 2013 1040ez instructions Example. 2013 1040ez instructions 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. 2013 1040ez instructions In 2013, the total of all contributions to Maria's three Coverdell ESAs cannot be more than $2,000. 2013 1040ez instructions 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. 2013 1040ez instructions Or, if her parents contributed $1,000 and her aunt $600, her grandfather or someone else could contribute no more than $400. 2013 1040ez instructions These contributions could be put into any of Maria's Coverdell ESA accounts. 2013 1040ez instructions Limit for each contributor. 2013 1040ez instructions   Generally, you can contribute up to $2,000 for each designated beneficiary for 2013. 2013 1040ez instructions 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. 2013 1040ez instructions Example. 2013 1040ez instructions The facts are the same as in the previous example except that Maria Luna's older brother, Edgar, also has a Coverdell ESA. 2013 1040ez instructions If their grandfather contributed $2,000 to Maria's Coverdell ESA in 2013, he could also contribute $2,000 to Edgar's Coverdell ESA. 2013 1040ez instructions Reduced limit. 2013 1040ez instructions   Your contribution limit may be reduced. 2013 1040ez instructions 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). 2013 1040ez instructions 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. 2013 1040ez instructions Table 7-2. 2013 1040ez instructions Coverdell ESA Contributions at a Glance Do not rely on this table alone. 2013 1040ez instructions It provides only general highlights. 2013 1040ez instructions See the text for more complete explanations. 2013 1040ez instructions Question Answer Are contributions deductible? No. 2013 1040ez instructions What is the annual contribution limit per designated beneficiary? $2,000 for each designated beneficiary. 2013 1040ez instructions 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. 2013 1040ez instructions 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. 2013 1040ez instructions Can contributions other than cash be made to a Coverdell ESA? No. 2013 1040ez instructions 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. 2013 1040ez instructions Modified adjusted gross income (MAGI). 2013 1040ez instructions   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. 2013 1040ez instructions MAGI when using Form 1040A. 2013 1040ez instructions   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. 2013 1040ez instructions MAGI when using Form 1040. 2013 1040ez instructions   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. 2013 1040ez instructions MAGI when using Form 1040NR. 2013 1040ez instructions   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form. 2013 1040ez instructions MAGI when using Form 1040NR-EZ. 2013 1040ez instructions   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form. 2013 1040ez instructions   If you have any of these adjustments, you can use Worksheet 7-1. 2013 1040ez instructions MAGI for a Coverdell ESA , later, to figure your MAGI for Form 1040. 2013 1040ez instructions Worksheet 7-1. 2013 1040ez instructions MAGI for a Coverdell ESA 1. 2013 1040ez instructions Enter your adjusted gross income  (Form 1040, line 38)   1. 2013 1040ez instructions   2. 2013 1040ez instructions Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. 2013 1040ez instructions       3. 2013 1040ez instructions Enter your foreign housing deduction (Form 2555, line 50)   3. 2013 1040ez instructions         4. 2013 1040ez instructions Enter the amount of income from Puerto Rico you are excluding   4. 2013 1040ez instructions       5. 2013 1040ez instructions Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. 2013 1040ez instructions       6. 2013 1040ez instructions Add lines 2, 3, 4, and 5   6. 2013 1040ez instructions   7. 2013 1040ez instructions Add lines 1 and 6. 2013 1040ez instructions This is your  modified adjusted gross income   7. 2013 1040ez instructions   Figuring the limit. 2013 1040ez instructions    To figure the limit on the amount you can contribute for each designated beneficiary, multiply $2,000 by a fraction. 2013 1040ez instructions The numerator (top number) is your MAGI minus $95,000 ($190,000 if filing a joint return). 2013 1040ez instructions The denominator (bottom number) is $15,000 ($30,000 if filing a joint return). 2013 1040ez instructions Subtract the result from $2,000. 2013 1040ez instructions This is the amount you can contribute for each beneficiary. 2013 1040ez instructions You can use Worksheet 7-2. 2013 1040ez instructions Coverdell ESA Contribution Limit to figure the limit on contributions. 2013 1040ez instructions    Worksheet 7-2. 2013 1040ez instructions Coverdell ESA Contribution Limit 1. 2013 1040ez instructions Maximum contribution   1. 2013 1040ez instructions $2,000 2. 2013 1040ez instructions 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. 2013 1040ez instructions   3. 2013 1040ez instructions Enter $190,000 if married filing jointly; $95,000 for all other filers   3. 2013 1040ez instructions   4. 2013 1040ez instructions Subtract line 3 from line 2. 2013 1040ez instructions If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. 2013 1040ez instructions   5. 2013 1040ez instructions Enter $30,000 if married filing jointly; $15,000 for all other filers   5. 2013 1040ez instructions     Note. 2013 1040ez instructions If the amount on line 4 is greater than or equal to the amount on line 5, stop here. 2013 1040ez instructions You are not allowed to contribute to a Coverdell ESA for 2013. 2013 1040ez instructions       6. 2013 1040ez instructions Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. 2013 1040ez instructions . 2013 1040ez instructions 7. 2013 1040ez instructions Multiply line 1 by line 6   7. 2013 1040ez instructions   8. 2013 1040ez instructions Subtract line 7 from line 1   8. 2013 1040ez instructions   Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. 2013 1040ez instructions Example. 2013 1040ez instructions Paul, who is single, had a MAGI of $96,500 for 2013. 2013 1040ez instructions 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. 2013 1040ez instructions Worksheet 7-2. 2013 1040ez instructions Coverdell ESA Contribution Limit—Illustrated 1. 2013 1040ez instructions Maximum contribution   1. 2013 1040ez instructions $2,000 2. 2013 1040ez instructions 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. 2013 1040ez instructions 96,500 3. 2013 1040ez instructions Enter $190,000 if married filing jointly; $95,000 for all other filers   3. 2013 1040ez instructions 95,000 4. 2013 1040ez instructions Subtract line 3 from line 2. 2013 1040ez instructions If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. 2013 1040ez instructions 1,500 5. 2013 1040ez instructions Enter $30,000 if married filing jointly; $15,000 for all other filers   5. 2013 1040ez instructions 15,000   Note. 2013 1040ez instructions If the amount on line 4 is greater than or equal to the amount on line 5,  stop here. 2013 1040ez instructions You are not allowed to  contribute to a Coverdell ESA for 2013. 2013 1040ez instructions       6. 2013 1040ez instructions Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. 2013 1040ez instructions . 2013 1040ez instructions 100 7. 2013 1040ez instructions Multiply line 1 by line 6   7. 2013 1040ez instructions 200 8. 2013 1040ez instructions Subtract line 7 from line 1   8. 2013 1040ez instructions 1,800 Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. 2013 1040ez instructions 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. 2013 1040ez instructions Excess contributions are the total of the following two amounts. 2013 1040ez instructions 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). 2013 1040ez instructions 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. 2013 1040ez instructions Exceptions. 2013 1040ez instructions   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). 2013 1040ez instructions   However, you must include the distributed earnings in gross income for the year in which the excess contribution was made. 2013 1040ez instructions You should receive Form 1099-Q, Payments From Qualified Education Programs, from each institution from which excess contributions were distributed. 2013 1040ez instructions Box 2 of that form will show the amount of earnings on your excess contributions. 2013 1040ez instructions Code “2” or “3” entered in the blank box below boxes 5 and 6 indicate the year in which the earnings are taxable. 2013 1040ez instructions See Instructions for Recipient on the back of copy B of your Form 1099-Q. 2013 1040ez instructions Enter the amount of earnings on line 21 of Form 1040 (or Form 1040NR) for the applicable tax year. 2013 1040ez instructions For more information, see Taxable Distributions , later. 2013 1040ez instructions   The excise tax does not apply to any rollover contribution. 2013 1040ez instructions Note. 2013 1040ez instructions Contributions made in one year for the preceding tax year are considered to have been made on the last day of the preceding year. 2013 1040ez instructions Example. 2013 1040ez instructions In 2012, Greta's parents and grandparents contributed a total of $2,300 to Greta's Coverdell ESA— an excess contribution of $300. 2013 1040ez instructions 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. 2013 1040ez instructions 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. 2013 1040ez instructions 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. 2013 1040ez instructions (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. 2013 1040ez instructions Figuring and reporting the additional tax. 2013 1040ez instructions   You figure this excise tax in Part V of Form 5329. 2013 1040ez instructions Report the additional tax on Form 1040, line 58 (or Form 1040NR, line 56). 2013 1040ez instructions Rollovers and Other Transfers Assets can be rolled over from one Coverdell ESA to another or the designated beneficiary can be changed. 2013 1040ez instructions The beneficiary's interest can be transferred to a spouse or former spouse because of divorce. 2013 1040ez instructions 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. 2013 1040ez instructions This age limitation does not apply if the new beneficiary is a special needs beneficiary. 2013 1040ez instructions An amount is rolled over if it is paid to another Coverdell ESA within 60 days after the date of the distribution. 2013 1040ez instructions Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. 2013 1040ez instructions These are not taxable distributions. 2013 1040ez instructions Members of the beneficiary's family. 2013 1040ez instructions   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. 2013 1040ez instructions Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. 2013 1040ez instructions Brother, sister, stepbrother, or stepsister. 2013 1040ez instructions Father or mother or ancestor of either. 2013 1040ez instructions Stepfather or stepmother. 2013 1040ez instructions Son or daughter of a brother or sister. 2013 1040ez instructions Brother or sister of father or mother. 2013 1040ez instructions Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. 2013 1040ez instructions The spouse of any individual listed above. 2013 1040ez instructions First cousin. 2013 1040ez instructions Example. 2013 1040ez instructions When Aaron graduated from college last year he had $5,000 left in his Coverdell ESA. 2013 1040ez instructions He wanted to give this money to his younger sister, who was still in high school. 2013 1040ez instructions 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. 2013 1040ez instructions Only one rollover per Coverdell ESA is allowed during the 12-month period ending on the date of the payment or distribution. 2013 1040ez instructions This rule does not apply to the rollover of a military death gratuity or payment from Servicemembers' Group Life Insurance (SGLI). 2013 1040ez instructions Military death gratuity. 2013 1040ez instructions   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). 2013 1040ez instructions Such payments are made to an eligible survivor upon the death of a member of the armed forces. 2013 1040ez instructions 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. 2013 1040ez instructions   This rollover contribution is not subject to (but is in addition to) the contribution limits discussed earlier under Contribution Limits . 2013 1040ez instructions 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. 2013 1040ez instructions   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. 2013 1040ez instructions See Distributions , later. 2013 1040ez instructions The limit of one rollover per Coverdell ESA during a 12-month period does not apply to a military death gratuity or SGLI payment. 2013 1040ez instructions Changing the Designated Beneficiary The designated beneficiary can be changed. 2013 1040ez instructions See Members of the beneficiary's family , earlier. 2013 1040ez instructions 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. 2013 1040ez instructions Example. 2013 1040ez instructions Assume the same situation for Aaron as in the last example (see Rollovers , earlier). 2013 1040ez instructions 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. 2013 1040ez instructions 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. 2013 1040ez instructions After the transfer, the spouse or former spouse treats the Coverdell ESA as his or her own. 2013 1040ez instructions Example. 2013 1040ez instructions In their divorce settlement, Peg received her ex-husband's Coverdell ESA. 2013 1040ez instructions In this process, the account was transferred into her name. 2013 1040ez instructions Peg now treats the funds in this Coverdell ESA as if she were the original owner. 2013 1040ez instructions Distributions The designated beneficiary of a Coverdell ESA can take a distribution at any time. 2013 1040ez instructions 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. 2013 1040ez instructions See Table 7-3, Coverdell ESA Distributions at a Glance, for highlights. 2013 1040ez instructions Table 7-3. 2013 1040ez instructions Coverdell ESA Distributions at a Glance Do not rely on this table alone. 2013 1040ez instructions It provides only general highlights. 2013 1040ez instructions See the text for definitions of terms in bold type and for more complete explanations. 2013 1040ez instructions 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. 2013 1040ez instructions After the designated beneficiary completes his or her education at an eligible educational institution, can amounts remaining in the Coverdell ESA be distributed? Yes. 2013 1040ez instructions Amounts must be distributed when the designated beneficiary reaches age 30, unless he or she is a special needs beneficiary. 2013 1040ez instructions Also, certain transfers to members of the beneficiary's family are permitted. 2013 1040ez instructions Does the designated beneficiary need to be enrolled for a minimum number of courses to take a tax-free distribution? No. 2013 1040ez instructions Adjusted qualified education expenses. 2013 1040ez instructions   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. 2013 1040ez instructions 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. 2013 1040ez instructions The amount you get by subtracting tax-free educational assistance from your total qualified education expenses is your adjusted qualified education expenses. 2013 1040ez instructions Tax-Free Distributions Generally, distributions are tax free if they are not more than the beneficiary's adjusted qualified education expenses for the year. 2013 1040ez instructions Do not report tax-free distributions (including qualifying rollovers) on your tax return. 2013 1040ez instructions 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. 2013 1040ez instructions Excess distribution. 2013 1040ez instructions   This is the part of the total distribution that is more than the beneficiary's adjusted qualified education expenses for the year. 2013 1040ez instructions Earnings and basis. 2013 1040ez instructions   You will receive a Form 1099-Q for each of the Coverdell ESAs from which money was distributed in 2013. 2013 1040ez instructions The amount of your gross distribution will be shown in box 1. 2013 1040ez instructions 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. 2013 1040ez instructions This will be shown in the blank box below boxes 5 and 6. 2013 1040ez instructions   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. 2013 1040ez instructions 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. 2013 1040ez instructions Figure the taxable portion for 2013 as shown in the following steps. 2013 1040ez instructions Multiply the total amount distributed by a fraction. 2013 1040ez instructions 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. 2013 1040ez instructions Subtract the amount figured in (1) from the total amount distributed during 2013. 2013 1040ez instructions The result is the amount of earnings included in the distribution(s). 2013 1040ez instructions Multiply the amount of earnings figured in (2) by a fraction. 2013 1040ez instructions The numerator is the adjusted qualified education expenses paid during 2013 and the denominator is the total amount distributed during 2013. 2013 1040ez instructions Subtract the amount figured in (3) from the amount figured in (2). 2013 1040ez instructions The result is the amount the beneficiary must include in income. 2013 1040ez instructions The taxable amount must be reported on Form 1040 or Form 1040NR, line 21. 2013 1040ez instructions Example. 2013 1040ez instructions You received an $850 distribution from your Coverdell ESA, to which $1,500 had been contributed before 2013. 2013 1040ez instructions There were no contributions in 2013. 2013 1040ez instructions This is your first distribution from the account, so your basis in the account on December 31, 2012, was $1,500. 2013 1040ez instructions The value (balance) of your account on December 31, 2013, was $950. 2013 1040ez instructions You had $700 of adjusted qualified education expenses (AQEE) for the year. 2013 1040ez instructions Using the steps in Figuring the Taxable Portion of a Distribution , earlier, figure the taxable portion of your distribution as follows. 2013 1040ez instructions   1. 2013 1040ez instructions $850 (distribution) × $1,500 basis + $0 contributions  $950 value + $850 distribution       =$708 (basis portion of distribution)     2. 2013 1040ez instructions $850 (distribution)−$708 (basis portion of distribution)     =$142 (earnings included in distribution)   3. 2013 1040ez instructions $142 (earnings) × $700 AQEE  $850 distribution           =$117 (tax-free earnings)     4. 2013 1040ez instructions $142 (earnings)−$117 (tax-free earnings)=$25 (taxable earnings)                 You must include $25 in income as distributed earnings not used for qualified education expenses. 2013 1040ez instructions Report this amount on Form 1040, line 21, listing the type and amount of income on the dotted line. 2013 1040ez instructions 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). 2013 1040ez instructions 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. 2013 1040ez instructions 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. 2013 1040ez instructions Example. 2013 1040ez instructions Derek Green had $5,800 of qualified higher education expenses for 2013, his first year in college. 2013 1040ez instructions He paid his college expenses from the following sources. 2013 1040ez instructions     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. 2013 1040ez instructions Derek's parents claimed a $2,500 American opportunity credit (based on $4,000 expenses) on their tax return. 2013 1040ez instructions Before Derek can determine the taxable portion of his Coverdell ESA distribution, he must reduce his total qualified higher education expenses. 2013 1040ez instructions     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. 2013 1040ez instructions The balance in Derek's account was $1,800 on December 31, 2013. 2013 1040ez instructions Prior to 2013, $2,100 had been contributed to this account. 2013 1040ez instructions Contributions for 2013 totaled $400. 2013 1040ez instructions Using the four steps outlined earlier, Derek figures the taxable portion of his distribution as shown below. 2013 1040ez instructions   1. 2013 1040ez instructions $1,000 (distribution) × $2,100 basis + $400 contributions  $1,800 value + $1,000 distribution           =$893 (basis portion of distribution)     2. 2013 1040ez instructions $1,000 (distribution)−$893 (basis portion of distribution)     = $107 (earnings included in distribution)   3. 2013 1040ez instructions $107 (earnings) × $300 AQHEE  $1,000 distribution       =$32 (tax-free earnings)     4. 2013 1040ez instructions $107 (earnings)−$32 (tax-free earnings)=$75 (taxable earnings)                 Derek must include $75 in income (Form 1040, line 21). 2013 1040ez instructions This is the amount of distributed earnings not used for adjusted qualified higher education expenses. 2013 1040ez instructions 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. 2013 1040ez instructions The following two examples illustrate possible allocations. 2013 1040ez instructions Example 1. 2013 1040ez instructions In 2013, Beatrice graduated from high school and began her first semester of college. 2013 1040ez instructions 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. 2013 1040ez instructions To pay these expenses, Beatrice withdrew $800 from her Coverdell ESA and $4,200 from her QTP. 2013 1040ez instructions No one claimed Beatrice as a dependent, nor was she eligible for an education credit. 2013 1040ez instructions She did not receive any tax-free educational assistance in 2013. 2013 1040ez instructions Beatrice must allocate her total qualified education expenses between the two distributions. 2013 1040ez instructions 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. 2013 1040ez instructions The qualified expenses are greater than the distribution, making the $800 Coverdell ESA distribution tax free. 2013 1040ez instructions 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). 2013 1040ez instructions 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. 2013 1040ez instructions Finally, Beatrice figures the taxable and tax-free portions of her QTP distribution based on her $3,000 of QHEE. 2013 1040ez instructions (See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program for more information. 2013 1040ez instructions ) Example 2. 2013 1040ez instructions Assume the same facts as in Example 1 , except that Beatrice withdrew $1,800 from her Coverdell ESA and $3,200 from her QTP. 2013 1040ez instructions In this case, she allocates her qualified education expenses as follows. 2013 1040ez instructions 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. 2013 1040ez instructions 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). 2013 1040ez instructions   $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). 2013 1040ez instructions See Figuring the Taxable Portion of a Distribution , earlier, in this chapter. 2013 1040ez instructions   QTP distribution based on her $2,400 of QHEE (see Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program). 2013 1040ez instructions The above examples show two types of allocation between distributions from a Coverdell ESA and a QTP. 2013 1040ez instructions However, you do not have to allocate your expenses in the same way. 2013 1040ez instructions You can use any reasonable method. 2013 1040ez instructions 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. 2013 1040ez instructions 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. 2013 1040ez instructions Your basis is the total amount of contributions to that Coverdell ESA. 2013 1040ez instructions 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. 2013 1040ez instructions If you have distributions from more than one Coverdell ESA account during a year, you must combine the information (amount of distribution, basis, etc. 2013 1040ez instructions ) from all such accounts in order to determine your taxable earnings for the year. 2013 1040ez instructions By doing this, the loss from one ESA account reduces the distributed earnings (if any) from any other ESA account. 2013 1040ez instructions For examples of the calculation, see Losses on QTP Investments in chapter 8, Qualified Tuition Program. 2013 1040ez instructions 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. 2013 1040ez instructions Exceptions. 2013 1040ez instructions   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. 2013 1040ez instructions Made because the designated beneficiary is disabled. 2013 1040ez instructions 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. 2013 1040ez instructions 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. 2013 1040ez instructions 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. 2013 1040ez instructions Made on account of the attendance of the designated beneficiary at a U. 2013 1040ez instructions S. 2013 1040ez instructions military academy (such as the USMA at West Point). 2013 1040ez instructions 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. 2013 1040ez instructions S. 2013 1040ez instructions Code) attributable to such attendance. 2013 1040ez instructions 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). 2013 1040ez instructions Made before June 1, 2014, of an excess 2013 contribution (and any earnings on it). 2013 1040ez instructions The distributed earnings must be included in gross income for the year in which the excess contribution was made. 2013 1040ez instructions Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. 2013 1040ez instructions Figuring the additional tax. 2013 1040ez instructions    Use Part II of Form 5329, to figure any additional tax. 2013 1040ez instructions Report the amount on Form 1040, line 58, or Form 1040NR, line 56. 2013 1040ez instructions When Assets Must Be Distributed Any assets remaining in a Coverdell ESA must be distributed when either one of the following two events occurs. 2013 1040ez instructions The designated beneficiary reaches age 30. 2013 1040ez instructions In this case, the remaining assets must be distributed within 30 days after the beneficiary reaches age 30. 2013 1040ez instructions However, this rule does not apply if the beneficiary is a special needs beneficiary. 2013 1040ez instructions The designated beneficiary dies before reaching age 30. 2013 1040ez instructions In this case, the remaining assets must generally be distributed within 30 days after the date of death. 2013 1040ez instructions 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. 2013 1040ez instructions (“Family member” was defined earlier under Rollovers . 2013 1040ez instructions ) 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. 2013 1040ez instructions This age limitation does not apply if the new beneficiary is a special needs beneficiary. 2013 1040ez instructions There are no tax consequences as a result of the transfer. 2013 1040ez instructions 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. 2013 1040ez instructions You determine these earnings as shown in the following two steps. 2013 1040ez instructions Multiply the amount distributed by a fraction. 2013 1040ez instructions 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. 2013 1040ez instructions Subtract the amount figured in (1) from the total amount distributed during 2013. 2013 1040ez instructions The result is the amount of earnings included in the distribution. 2013 1040ez instructions For an example, see steps (1) and (2) of the Example under Figuring the Taxable Portion of a Distribution, earlier. 2013 1040ez instructions 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. 2013 1040ez instructions Worksheet 7-3 Instructions. 2013 1040ez instructions Coverdell ESA—Taxable Distributions and Basis Line G. 2013 1040ez instructions Enter the total distributions received from all Coverdell ESAs during 2013. 2013 1040ez instructions Do not include amounts rolled over to another ESA within 60 days (only one rollover is allowed during any 12-month period). 2013 1040ez instructions 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. 2013 1040ez instructions Line 2. 2013 1040ez instructions 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. 2013 1040ez instructions   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. 2013 1040ez instructions 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. 2013 1040ez instructions For years after 2001, you can find that amount by using the ending basis from the worksheet in Publication 970 for that year. 2013 1040ez instructions 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. 2013 1040ez instructions Line 4. 2013 1040ez instructions Enter the total distributions received from this Coverdell ESA in 2013. 2013 1040ez instructions Do not include amounts rolled over to another Coverdell ESA within 60 days (only one rollover is allowed during any 12-month period). 2013 1040ez instructions   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. 2013 1040ez instructions Line 7. 2013 1040ez instructions 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. 2013 1040ez instructions A statement should be sent to you by January 31, 2014, for this Coverdell ESA showing the value on December 31, 2013. 2013 1040ez instructions   A rollover is a tax-free withdrawal from one Coverdell ESA that is contributed to another Coverdell ESA. 2013 1040ez instructions 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. 2013 1040ez instructions Worksheet 7-3. 2013 1040ez instructions Coverdell ESA—Taxable Distributions and Basis How to complete this worksheet. 2013 1040ez instructions • • • Complete Part I, lines A through H, on only one worksheet. 2013 1040ez instructions  Complete a separate Part II, lines 1 through 15, for each of your Coverdell ESAs. 2013 1040ez instructions  Complete Part III, the Summary (line 16), on only one worksheet. 2013 1040ez instructions Part I. 2013 1040ez instructions Qualified Education Expenses (Complete for total expenses)       A. 2013 1040ez instructions Enter your total qualified education expenses for 2013   A. 2013 1040ez instructions   B. 2013 1040ez instructions 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. 2013 1040ez instructions         C. 2013 1040ez instructions Enter those qualified higher education expenses deducted on Schedule C or C-EZ (Form 1040). 2013 1040ez instructions Schedule F (Form 1040), or as a miscellaneous itemized deduction on Schedule A (Form 1040 or 1040NR)   C. 2013 1040ez instructions         D. 2013 1040ez instructions Enter those qualified higher education expenses on which  an American opportunity or lifetime learning credit was based   D. 2013 1040ez instructions         E. 2013 1040ez instructions Add lines B, C, and D   D. 2013 1040ez instructions   F. 2013 1040ez instructions Subtract line E from line A. 2013 1040ez instructions This is your adjusted qualified education expense for 2013   E. 2013 1040ez instructions   G. 2013 1040ez instructions Enter your total distributions from all Coverdell ESAs during 2013. 2013 1040ez instructions Do not include rollovers  or the return of excess contributions (see instructions)   F. 2013 1040ez instructions   H. 2013 1040ez instructions Divide line F by line G. 2013 1040ez instructions Enter the result as a decimal (rounded to at least 3 places). 2013 1040ez instructions If the  result is 1. 2013 1040ez instructions 000 or more, enter 1. 2013 1040ez instructions 000   G. 2013 1040ez instructions . 2013 1040ez instructions Part II. 2013 1040ez instructions Taxable Distributions and Basis (Complete separately for each account) 1. 2013 1040ez instructions Enter the amount contributed to this Coverdell ESA for 2013, including contributions made for 2013 from January 1, 2014, through April 15, 2014. 2013 1040ez instructions Do not include rollovers or the return of excess contributions   1. 2013 1040ez instructions   2. 2013 1040ez instructions Enter your basis in this Coverdell ESA as of December 31, 2012 (see instructions)   2. 2013 1040ez instructions   3. 2013 1040ez instructions Add lines 1 and 2   3. 2013 1040ez instructions   4. 2013 1040ez instructions Enter the total distributions from this Coverdell ESA during 2013. 2013 1040ez instructions Do not include rollovers  or the return of excess contributions (see instructions)   4. 2013 1040ez instructions   5. 2013 1040ez instructions Multiply line 4 by line H. 2013 1040ez instructions This is the amount of adjusted qualified  education expense attributable to this Coverdell ESA   5. 2013 1040ez instructions         6. 2013 1040ez instructions Subtract line 5 from line 4   6. 2013 1040ez instructions         7. 2013 1040ez instructions Enter the total value of this Coverdell ESA as of December 31, 2013,  plus any outstanding rollovers (see instructions)   7. 2013 1040ez instructions         8. 2013 1040ez instructions Add lines 4 and 7   8. 2013 1040ez instructions         9. 2013 1040ez instructions Divide line 3 by line 8. 2013 1040ez instructions Enter the result as a decimal (rounded to  at least 3 places). 2013 1040ez instructions If the result is 1. 2013 1040ez instructions 000 or more, enter 1. 2013 1040ez instructions 000   9. 2013 1040ez instructions . 2013 1040ez instructions       10. 2013 1040ez instructions Multiply line 4 by line 9. 2013 1040ez instructions This is the amount of basis allocated to your  distributions, and is tax free   10. 2013 1040ez instructions     Note. 2013 1040ez instructions If line 6 is zero, skip lines 11 through 13, enter -0- on line 14, and go to line 15. 2013 1040ez instructions       11. 2013 1040ez instructions Subtract line 10 from line 4   11. 2013 1040ez instructions   12. 2013 1040ez instructions Divide line 5 by line 4. 2013 1040ez instructions Enter the result as a decimal (rounded to  at least 3 places). 2013 1040ez instructions If the result is 1. 2013 1040ez instructions 000 or more, enter 1. 2013 1040ez instructions 000   12. 2013 1040ez instructions . 2013 1040ez instructions       13. 2013 1040ez instructions Multiply line 11 by line 12. 2013 1040ez instructions This is the amount of qualified education  expenses allocated to your distributions, and is tax free   13. 2013 1040ez instructions   14. 2013 1040ez instructions Subtract line 13 from line 11. 2013 1040ez instructions This is the portion of the distributions from this  Coverdell ESA in 2013 that you must include in income   14. 2013 1040ez instructions   15. 2013 1040ez instructions Subtract line 10 from line 3. 2013 1040ez instructions This is your basis in this Coverdell ESA as of December 31, 2013   15. 2013 1040ez instructions   Part III. 2013 1040ez instructions Summary (Complete only once)       16. 2013 1040ez instructions Taxable amount. 2013 1040ez instructions Add together all amounts on line 14 for all your Coverdell ESAs. 2013 1040ez instructions 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. 2013 1040ez instructions   Prev  Up  Next   Home   More Online Publications
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The 2013 1040ez Instructions

2013 1040ez instructions 6. 2013 1040ez instructions   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 2013 1040ez instructions Free help with your tax return. 2013 1040ez instructions   You can get free help preparing your return nationwide from IRS-certified volunteers. 2013 1040ez instructions The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 2013 1040ez instructions The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2013 1040ez instructions 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. 2013 1040ez instructions In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 2013 1040ez instructions To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 2013 1040ez instructions gov, download the IRS2Go app, or call 1-800-906-9887. 2013 1040ez instructions   As part of the TCE program, AARP offers the Tax-Aide counseling program. 2013 1040ez instructions To find the nearest AARP Tax-Aide site, visit AARP's website at www. 2013 1040ez instructions aarp. 2013 1040ez instructions org/money/taxaide or call 1-888-227-7669. 2013 1040ez instructions For more information on these programs, go to IRS. 2013 1040ez instructions gov and enter “VITA” in the search box. 2013 1040ez instructions Internet. 2013 1040ez instructions    IRS. 2013 1040ez instructions gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 2013 1040ez instructions Download the free IRS2Go app from the iTunes app store or from Google Play. 2013 1040ez instructions Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, 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. 2013 1040ez instructions Check the status of your 2013 refund with the Where's My Refund? application on IRS. 2013 1040ez instructions gov or download the IRS2Go app and select the Refund Status option. 2013 1040ez instructions The IRS issues more than 9 out of 10 refunds in less than 21 days. 2013 1040ez instructions Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 2013 1040ez instructions You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2013 1040ez instructions The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2013 1040ez instructions Use the Interactive Tax Assistant (ITA) to research your tax questions. 2013 1040ez instructions No need to wait on the phone or stand in line. 2013 1040ez instructions The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 2013 1040ez instructions When you reach the response screen, you can print the entire interview and the final response for your records. 2013 1040ez instructions New subject areas are added on a regular basis. 2013 1040ez instructions  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 2013 1040ez instructions gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 2013 1040ez instructions You can use the IRS Tax Map, to search publications and instructions by topic or keyword. 2013 1040ez instructions The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 2013 1040ez instructions When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 2013 1040ez instructions Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 2013 1040ez instructions You can also ask the IRS to mail a return or an account transcript to you. 2013 1040ez instructions Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 2013 1040ez instructions gov or by calling 1-800-908-9946. 2013 1040ez instructions Tax return and tax account transcripts are generally available for the current year and the past three years. 2013 1040ez instructions Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 2013 1040ez instructions Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 2013 1040ez instructions If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 2013 1040ez instructions Check the status of your amended return using Where's My Amended Return? Go to IRS. 2013 1040ez instructions gov and enter Where's My Amended Return? in the search box. 2013 1040ez instructions You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2013 1040ez instructions It can take up to 3 weeks from the date you mailed it to show up in our system. 2013 1040ez instructions Make a payment using one of several safe and convenient electronic payment options available on IRS. 2013 1040ez instructions gov. 2013 1040ez instructions Select the Payment tab on the front page of IRS. 2013 1040ez instructions gov for more information. 2013 1040ez instructions Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 2013 1040ez instructions Figure your income tax withholding with the IRS Withholding Calculator on IRS. 2013 1040ez instructions gov. 2013 1040ez instructions 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. 2013 1040ez instructions Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 2013 1040ez instructions gov. 2013 1040ez instructions Request an Electronic Filing PIN by going to IRS. 2013 1040ez instructions gov and entering Electronic Filing PIN in the search box. 2013 1040ez instructions Download forms, instructions and publications, including accessible versions for people with disabilities. 2013 1040ez instructions Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 2013 1040ez instructions gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 2013 1040ez instructions An employee can answer questions about your tax account or help you set up a payment plan. 2013 1040ez instructions Before you visit, check the Office Locator on IRS. 2013 1040ez instructions gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 2013 1040ez instructions If you have a special need, such as a disability, you can request an appointment. 2013 1040ez instructions Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 2013 1040ez instructions Apply for an Employer Identification Number (EIN). 2013 1040ez instructions Go to IRS. 2013 1040ez instructions gov and enter Apply for an EIN in the search box. 2013 1040ez instructions Read the Internal Revenue Code, regulations, or other official guidance. 2013 1040ez instructions Read Internal Revenue Bulletins. 2013 1040ez instructions Sign up to receive local and national tax news and more by email. 2013 1040ez instructions Just click on “subscriptions” above the search box on IRS. 2013 1040ez instructions gov and choose from a variety of options. 2013 1040ez instructions Phone. 2013 1040ez instructions    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 2013 1040ez instructions Download the free IRS2Go app from the iTunes app store or from Google Play. 2013 1040ez instructions Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 2013 1040ez instructions gov, or download the IRS2Go app. 2013 1040ez instructions Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 2013 1040ez instructions The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 2013 1040ez instructions Most VITA and TCE sites offer free electronic filing. 2013 1040ez instructions Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 2013 1040ez instructions Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 2013 1040ez instructions Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 2013 1040ez instructions If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 2013 1040ez instructions The IRS issues more than 9 out of 10 refunds in less than 21 days. 2013 1040ez instructions Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 2013 1040ez instructions Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 2013 1040ez instructions The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 2013 1040ez instructions Note, the above information is for our automated hotline. 2013 1040ez instructions Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 2013 1040ez instructions Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 2013 1040ez instructions You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 2013 1040ez instructions It can take up to 3 weeks from the date you mailed it to show up in our system. 2013 1040ez instructions Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 2013 1040ez instructions You should receive your order within 10 business days. 2013 1040ez instructions Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 2013 1040ez instructions If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 2013 1040ez instructions Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 2013 1040ez instructions The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 2013 1040ez instructions These individuals can also contact the IRS through relay services such as the Federal Relay Service. 2013 1040ez instructions Walk-in. 2013 1040ez instructions   You can find a selection of forms, publications and services — in-person. 2013 1040ez instructions Products. 2013 1040ez instructions You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 2013 1040ez instructions Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 2013 1040ez instructions Services. 2013 1040ez instructions You can walk in to your local TAC for face-to-face tax help. 2013 1040ez instructions An employee can answer questions about your tax account or help you set up a payment plan. 2013 1040ez instructions Before visiting, use the Office Locator tool on IRS. 2013 1040ez instructions gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 2013 1040ez instructions Mail. 2013 1040ez instructions   You can send your order for forms, instructions, and publications to the address below. 2013 1040ez instructions You should receive a response within 10 business days after your request is received. 2013 1040ez instructions Internal Revenue Service 1201 N. 2013 1040ez instructions Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. 2013 1040ez instructions The Taxpayer Advocate Service (TAS) is your voice at the IRS. 2013 1040ez instructions Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 2013 1040ez instructions   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 2013 1040ez instructions 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. 2013 1040ez instructions You face (or your business is facing) an immediate threat of adverse action. 2013 1040ez instructions You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 2013 1040ez instructions   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. 2013 1040ez instructions Here's why we can help: TAS is an independent organization within the IRS. 2013 1040ez instructions Our advocates know how to work with the IRS. 2013 1040ez instructions Our services are free and tailored to meet your needs. 2013 1040ez instructions We have offices in every state, the District of Columbia, and Puerto Rico. 2013 1040ez instructions   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 Taxpayer Advocate, or call us toll-free at 1-877-777-4778. 2013 1040ez instructions   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 2013 1040ez instructions If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. 2013 1040ez instructions Low Income Taxpayer Clinics (LITCs). 2013 1040ez instructions   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. 2013 1040ez instructions Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 2013 1040ez instructions Visit www. 2013 1040ez instructions TaxpayerAdvocate. 2013 1040ez instructions irs. 2013 1040ez instructions gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. 2013 1040ez instructions Prev  Up  Next   Home   More Online Publications