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Amend My Taxes

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Amend My Taxes

Amend my taxes 2. Amend my taxes   American Opportunity Credit Table of Contents Introduction Can You Claim the CreditWho Can Claim the Credit Who Cannot Claim the Credit What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible StudentException. Amend my taxes Who Can Claim a Dependent's Expenses Figuring the CreditEffect of the Amount of Your Income on the Amount of Your Credit Refundable Part of Credit Claiming the Credit Introduction For 2013, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. Amend my taxes They are the American opportunity credit (this chapter) and the lifetime learning credit ( chapter 3 ). Amend my taxes This chapter explains: Who can claim the American opportunity credit, What expenses qualify for the credit, Who is an eligible student, Who can claim a dependent's expenses, How to figure the credit, How to claim the credit, and When the credit must be repaid. Amend my taxes What is the tax benefit of the American opportunity credit. Amend my taxes   For the tax year, you may be able to claim an American opportunity credit of up to $2,500 for qualified education expenses paid for each eligible student. Amend my taxes   A tax credit reduces the amount of income tax you may have to pay. Amend my taxes Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. Amend my taxes Forty percent of the American opportunity credit may be refundable. Amend my taxes This means that if the refundable portion of your credit is more than your tax, the excess will be refunded to you. Amend my taxes   Your allowable American opportunity credit may be limited by the amount of your income. Amend my taxes Also, the nonrefundable part of the credit may be limited by the amount of your tax. Amend my taxes Overview of the American opportunity credit. Amend my taxes   See Table 2-1, Overview of the American Opportunity Credit , for the basics of this credit. Amend my taxes The details are discussed in this chapter. Amend my taxes Can you claim more than one education credit this year. Amend my taxes   For each student, you can elect for any year only one of the credits. Amend my taxes For example, if you elect to take the American opportunity credit for a child on your 2013 tax return, you cannot use that same child's qualified education expenses to figure the lifetime learning credit for 2013. Amend my taxes   If you pay qualified education expenses for more than one student in the same year, you can choose to take the American opportunity credit on a per-student, per-year basis. Amend my taxes If you pay qualified education expenses for a student (or students) for whom you do not claim the American opportunity credit, you can use the adjusted qualified education expenses of that student (or those students) in figuring your lifetime learning credit. Amend my taxes This means that, for example, you can claim the American opportunity credit for one student and the lifetime learning credit for another student in the same year. Amend my taxes Differences between the American opportunity and lifetime learning credits. Amend my taxes   There are several differences between these two credits. Amend my taxes For example, you can claim the American opportunity credit based on the same student's expenses for no more than 4 tax years, which includes any tax years you claimed the Hope Scholarship Credit for that student. Amend my taxes However, there is no limit on the number of years for which you can claim a lifetime learning credit based on the same student's expenses. Amend my taxes The differences between these credits are shown in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 near the end of this publication. Amend my taxes If you claim the American opportunity credit for any student, you can choose between using that student's adjusted qualified education expenses for the American opportunity credit or the lifetime learning credit. Amend my taxes If you have the choice, the American opportunity credit will always be greater than the lifetime learning credit. Amend my taxes Table 2-1. Amend my taxes Overview of the American Opportunity Credit Maximum credit Up to $2,500 credit per eligible student Limit on modified adjusted gross income (MAGI) $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable 40% of credit may be refundable; the rest is nonrefundable Number of years of postsecondary education Available ONLY if the student had not completed the first 4 years of postsecondary education before 2013 Number of tax years credit available Available ONLY for 4 tax years per eligible student (including any year(s) Hope Scholarship Credit was claimed) Type of program required Student must be pursuing a program leading to a degree or other recognized education credential Number of courses Student must be enrolled at least half time for at least one academic period that begins during the tax year Felony drug conviction As of the end of 2013, the student had not been convicted of a felony for possessing or distributing a controlled substance Qualified expenses Tuition, required enrollment fees, and course materials that the student needs for a course of study whether or not the materials are bought at the educational institution as a condition of enrollment or attendance Payments for academic periods Payments made in 2013 for academic periods beginning in 2013 or beginning in the first 3 months of 2014 Can You Claim the Credit The following rules will help you determine if you are eligible to claim the American opportunity credit on your tax return. Amend my taxes Who Can Claim the Credit Generally, you can claim the American opportunity credit if all three of the following requirements are met. Amend my taxes You pay qualified education expenses of higher education. Amend my taxes You pay the education expenses for an eligible student. Amend my taxes The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Amend my taxes Student qualifications. Amend my taxes   Generally, you can take the American opportunity credit for a student only if all of the following four requirements are met. Amend my taxes As of the beginning of 2013, the student had not completed the first four years of postsecondary education (generally, the freshman through senior years of college), as determined by the eligible educational institution. Amend my taxes For this purpose, do not include academic credit awarded solely because of the student's performance on proficiency examinations. Amend my taxes Neither the American opportunity credit nor the Hope Scholarship Credit has been claimed (by you or anyone else) for this student for any four tax years before 2013. Amend my taxes If the American opportunity credit (and Hope Scholarship Credit) has been claimed for this student for any three or fewer tax years before 2013, this requirement is met. Amend my taxes For at least one academic period beginning (or treated as beginning) in 2013, the student both: Was enrolled in a program that leads to a degree, certificate, or other recognized educational credential; and Carried at least one-half the normal full-time workload for his or her course of study. Amend my taxes The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Amend my taxes However, the standard may not be lower than any of those established by the U. Amend my taxes S. Amend my taxes Department of Education under the Higher Education Act of 1965. Amend my taxes For purposes of whether the student satisfies this third requirement for 2013, treat an academic period beginning in the first three months of 2014 as if it began in 2013 if qualified education expenses for the student were paid in 2013 for that academic period. Amend my taxes See Prepaid expenses, later. Amend my taxes As of the end of 2013, the student had not been convicted of a federal or state felony for possessing or distributing a controlled substance. Amend my taxes Example 1. Amend my taxes Sharon was eligible for the Hope Scholarship Credit for 2007 and 2008 and for the American opportunity credit for 2010 and 2012. Amend my taxes Her parents claimed the Hope Scholarship Credit for Sharon on their tax returns for 2007 and 2008 and claimed the American opportunity credit for Sharon on their 2010 tax return. Amend my taxes Sharon claimed the American opportunity credit on her 2012 tax return. Amend my taxes The American opportunity credit and Hope Scholarship Credit have been claimed for Sharon for four tax years before 2013. Amend my taxes Therefore, the American opportunity credit cannot be claimed by Sharon for 2013. Amend my taxes If Sharon were to file Form 8863 for 2013, she would check “Yes” for Part III, line 23, and would be eligible to claim only the lifetime learning credit. Amend my taxes Example 2. Amend my taxes Wilbert was eligible for the American opportunity credit for 2009, 2010, 2011, and 2013. Amend my taxes His parents claimed the American opportunity credit for Wilbert on their tax returns for 2009, 2010, and 2011. Amend my taxes No one claimed an American opportunity credit or Hope Scholarship Credit for Wilbert for any other tax year. Amend my taxes The American opportunity credit and Hope Scholarship Credit have been claimed for Wilbert for only three tax years before 2013. Amend my taxes Therefore, Wilbert meets the second requirement to be eligible for the American opportunity credit. Amend my taxes If Wilbert were to file Form 8863 for 2013, he would check “No” for Part III, line 23. Amend my taxes If Wilbert meets all of the other requirements, he is eligible for the American opportunity credit. Amend my taxes Example 3. Amend my taxes Glenda enrolls on a full-time basis in a degree program for the 2014 Spring semester, which begins in January 2014. Amend my taxes Glenda pays her tuition for the 2014 Spring semester in December 2013. Amend my taxes Because the tuition Glenda paid in 2013 relates to an academic period that begins in the first 3 months of 2014, her eligibility to claim an American opportunity credit in 2013 is determined as if the 2014 Spring semester began in 2013. Amend my taxes If the requirements above are not met for any student, you cannot take the American opportunity credit for that student. Amend my taxes You may be able to take the lifetime learning credit for part or all of that student's qualified education expenses instead. Amend my taxes Note. Amend my taxes Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. Amend my taxes “Qualified education expenses” are defined later under Qualified Education Expenses . Amend my taxes “Eligible students” are defined later under Who Is an Eligible Student . Amend my taxes A dependent for whom you claim an exemption is defined later under Who Can Claim a Dependent's Expenses . Amend my taxes You may find Figure 2-1, Can You Claim the American Opportunity Credit for 2013 , later, helpful in determining if you can claim an American opportunity credit on your tax return. Amend my taxes This image is too large to be displayed in the current screen. Amend my taxes Please click the link to view the image. Amend my taxes Figure 2-1 Can you claim the American opportunity credit for 2012? Who Cannot Claim the Credit You cannot claim the American opportunity credit for 2013 if any of the following apply. Amend my taxes Your filing status is married filing separately. Amend my taxes You are listed as a dependent on another person's tax return (such as your parents'). Amend my taxes See Who Can Claim a Dependent's Expenses , later. Amend my taxes Your modified adjusted gross income (MAGI) is $90,000 or more ($180,000 or more in the case of a joint return). Amend my taxes MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit . Amend my taxes You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. Amend my taxes More information on nonresident aliens can be found in Publication 519, U. Amend my taxes S. Amend my taxes Tax Guide for Aliens. Amend my taxes What Expenses Qualify The American opportunity credit is based on adjusted qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Amend my taxes Generally, the credit is allowed for adjusted qualified education expenses paid in 2013 for an academic period beginning in 2013 or beginning in the first three months of 2014. Amend my taxes For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning January 2014, you can use that $1,500 in figuring your 2013 credit. Amend my taxes Academic period. Amend my taxes   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Amend my taxes In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Amend my taxes Paid with borrowed funds. Amend my taxes   You can claim an American opportunity credit for qualified education expenses paid with the proceeds of a loan. Amend my taxes Use the expenses to figure the American opportunity credit for the year in which the expenses are paid, not the year in which the loan is repaid. Amend my taxes Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. Amend my taxes Student withdraws from class(es). Amend my taxes   You can claim an American opportunity credit for qualified education expenses not refunded when a student withdraws. Amend my taxes Qualified Education Expenses For purposes of the American opportunity credit, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Amend my taxes Eligible educational institution. Amend my taxes   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Amend my taxes S. Amend my taxes Department of Education. Amend my taxes It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Amend my taxes The educational institution should be able to tell you if it is an eligible educational institution. Amend my taxes   Certain educational institutions located outside the United States also participate in the U. Amend my taxes S. Amend my taxes Department of Education's Federal Student Aid (FSA) programs. Amend my taxes Related expenses. Amend my taxes   Student-activity fees are included in qualified education expenses only if the fees must be paid to the institution as a condition of enrollment or attendance. Amend my taxes   However, expenses for books, supplies, and equipment needed for a course of study are included in qualified education expenses whether or not the materials are purchased from the educational institution. Amend my taxes Prepaid expenses. Amend my taxes   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. Amend my taxes See Academic period, earlier. Amend my taxes For example, if you pay $2,000 in December 2013, for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). Amend my taxes    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). Amend my taxes   In the following examples, assume that each student is an eligible student at an eligible educational institution. Amend my taxes Example 1. Amend my taxes Jefferson is a sophomore in University V's degree program in dentistry. Amend my taxes This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. Amend my taxes Because the equipment rental is needed for his course of study, Jefferson's equipment rental fee is a qualified expense. Amend my taxes Example 2. Amend my taxes Grace and William, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. Amend my taxes The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. Amend my taxes William bought his books from a friend; Grace bought hers at College W's bookstore. Amend my taxes Both are qualified education expenses for the American opportunity credit. Amend my taxes Example 3. Amend my taxes When Kelly enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Amend my taxes This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and the student government. Amend my taxes No portion of the fee covers personal expenses. Amend my taxes Although labeled as a student activity fee, the fee is required for Kelly's enrollment and attendance at College X and is a qualified expense. Amend my taxes No Double Benefit Allowed You cannot do any of the following. Amend my taxes Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim an American opportunity credit based on those same expenses. Amend my taxes Claim an American opportunity credit in the same year that you are claiming a tuition and fees deduction for the same student. Amend my taxes Claim an American opportunity credit for any student and use any of that student's expenses in figuring your lifetime learning credit. Amend my taxes Figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or qualified tuition program (QTP) using the same expenses you used to figure the American opportunity credit. Amend my taxes See Coordination With American Opportunity and Lifetime Learning Credits in chapter 7, Coverdell Education Savings Account, and Coordination With American Opportunity and Lifetime Learning Credits in chapter 8, Qualified Tuition Program. Amend my taxes Claim a credit based on qualified education expenses paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Amend my taxes See Adjustments to Qualified Education Expenses, next. Amend my taxes Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Amend my taxes The result is the amount of adjusted qualified education expenses for each student. Amend my taxes Tax-free educational assistance. Amend my taxes   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. Amend my taxes See Academic period, earlier. Amend my taxes   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Amend my taxes This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). Amend my taxes   If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed, later. Amend my taxes If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed, later. Amend my taxes   Tax-free educational assistance includes: The tax-free parts of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Amend my taxes Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Amend my taxes Generally, any scholarship or fellowship is treated as tax free. Amend my taxes However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. Amend my taxes The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Amend my taxes The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Amend my taxes You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. Amend my taxes For examples, see Coordination with Pell grants and other scholarships, later. Amend my taxes Refunds. Amend my taxes   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. Amend my taxes Some tax-free educational assistance received after 2013 may be treated as a refund. Amend my taxes See Tax-free educational assistance, earlier. Amend my taxes Refunds received in 2013. Amend my taxes   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Amend my taxes Refunds received after 2013 but before your income tax return is filed. Amend my taxes   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. Amend my taxes Refunds received after 2013 and after your income tax return is filed. Amend my taxes   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. Amend my taxes See Credit recapture, next. Amend my taxes Credit recapture. Amend my taxes    If any tax-free educational assistance for the qualified education expenses paid in 2013, or any refund of your qualified education expenses paid in 2013, is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. Amend my taxes You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing the expenses by the amount of the refund or tax-free educational assistance. Amend my taxes You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you claimed the refigured credit(s). Amend my taxes Include that amount as an additional tax for the year the refund or tax-free assistance was received. Amend my taxes Example. Amend my taxes   You paid $7,000 tuition and fees in August 2013, and your child began college in September 2013. Amend my taxes You filed your 2013 tax return on February 17, 2014, and claimed an American opportunity credit of $2,500. Amend my taxes After you filed your return, you received a refund of $4,000. Amend my taxes You must refigure your 2013 American opportunity credit using $3,000 of qualified education expenses instead of $7,000. Amend my taxes The refigured credit is $2,250. Amend my taxes The increase to your tax liability is also $250. Amend my taxes Include the difference of $250 as additional tax on your 2014 tax return. Amend my taxes See the instructions for your 2014 income tax return to determine where to include this tax. Amend my taxes If you pay qualified education expenses in 2014 for an academic period that begins in the first 3 months of 2014 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2014 instead of reducing your expenses for 2013. Amend my taxes Amounts that do not reduce qualified education expenses. Amend my taxes   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Amend my taxes   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. Amend my taxes The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Amend my taxes The use of the money is not restricted. Amend my taxes Example 1. Amend my taxes Joan paid $3,000 for tuition and $5,000 for room and board at University X. Amend my taxes The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. Amend my taxes To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. Amend my taxes The terms of the scholarship state that it can be used to pay any of Joan's college expenses. Amend my taxes University X applies the $2,000 scholarship against Joan's $8,000 total bill, and Joan pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. Amend my taxes Joan does not report any portion of the scholarship as income on her tax return. Amend my taxes In figuring the amount of either education credit (American opportunity or lifetime learning), Joan must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. Amend my taxes The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. Amend my taxes Joan is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship). Amend my taxes Example 2. Amend my taxes The facts are the same as in Example 1, except that Joan reports her entire scholarship as income on her tax return. Amend my taxes Because Joan reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. Amend my taxes Joan is treated as having paid $3,000 in qualified education expenses. Amend my taxes Coordination with Pell grants and other scholarships. Amend my taxes   In some cases, you may be able to reduce your tax liability by including scholarships in income. Amend my taxes If you are claiming an education credit for a claimed dependent who received a scholarship, you may be able to reduce your tax liability if the student includes the scholarship in income. Amend my taxes The scholarship must be one that may (by its terms) be applied to expenses (such as room and board) other than qualified education expenses. Amend my taxes Example 1—No scholarship. Amend my taxes Bill Pass, age 28 and unmarried, enrolled full-time in 2013 as a first-year student at a local college to earn a degree in law enforcement. Amend my taxes This was his first year of postsecondary education. Amend my taxes During 2013, he paid $5,600 for his qualified education expenses and $4,400 for his room and board for the fall 2013 semester. Amend my taxes He and the college meet all the requirements for the American opportunity credit. Amend my taxes Bill's AGI and his MAGI, for purposes of figuring his credit, are $30,000. Amend my taxes Bill takes the standard deduction of $5,950 and personal exemption of $3,800, reducing his AGI to taxable income of $20,250. Amend my taxes His income tax liability, before credits, is $2,599 and Bill claims no credits other than the American opportunity credit. Amend my taxes He figures his American opportunity credit based on qualified education expenses of $4,000, which results in a credit of $2,500 and tax after credits of $99. Amend my taxes Example 2—Scholarship excluded from income. Amend my taxes The facts are the same as in Example 1—No scholarship, except that Bill was awarded a $5,600 scholarship. Amend my taxes Under the terms of his scholarship, it may be used to pay any educational expenses, including room and board. Amend my taxes If Bill excludes the scholarship from income, he will be deemed (for purposes of computing his education credit) to have used the scholarship to pay for tuition, required fees, and course materials. Amend my taxes His adjusted qualified education expenses will be zero and he will not have an education credit. Amend my taxes Therefore, Bill's tax after credits would be $2,599. Amend my taxes Example 3—Scholarship partially included in income. Amend my taxes The facts are the same as in Example 2—Scholarship excluded from income. Amend my taxes If, unlike Example 2, Bill includes $4,000 of the scholarship in income, he will be deemed to have used that amount to pay for room and board. Amend my taxes The remaining $1,600 of the $5,600 scholarship will reduce his qualified education expenses and his adjusted qualified education expenses will be $4,000. Amend my taxes Bill's AGI will increase to $34,000, his taxable income will increase to $24,250, and his tax before credits will increase to $3,199. Amend my taxes Based on his adjusted qualified education expenses of $4,000, Bill would be able to claim an American opportunity tax credit of $2,500 and his tax after credits would be $699. Amend my taxes Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. Amend my taxes This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Amend my taxes Sports, games, hobbies, and noncredit courses. Amend my taxes   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. Amend my taxes However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Amend my taxes Comprehensive or bundled fees. Amend my taxes   Some eligible educational institutions combine all of their fees for an academic period into one amount. Amend my taxes If you do not receive or do not have access to an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed earlier, contact the institution. Amend my taxes The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T, Tuition Statement. Amend my taxes See Figuring the Credit , later, for more information about Form 1098-T. Amend my taxes Who Is an Eligible Student To claim the American opportunity credit, the student for whom you pay qualified education expenses must be an eligible student. Amend my taxes This is a student who meets all of the following requirements. Amend my taxes The student did not have expenses that were used to figure an American opportunity credit in any 4 earlier tax years. Amend my taxes This includes any tax year(s) in which you claimed the Hope Scholarship Credit for the same student. Amend my taxes The student had not completed the first 4 years of postsecondary education (generally, the freshman, sophomore, junior, and senior years of college) before 2013. Amend my taxes For at least one academic period beginning in 2013, the student was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Amend my taxes The student has not been convicted of any federal or state felony for possessing or distributing a controlled substance as of the end of 2013. Amend my taxes These requirements are also shown in Figure 2-2, Who is an Eligible Student for the American Opportunity Credit , later. Amend my taxes Completion of first 4 years. Amend my taxes   A student has completed the first 4 years of postsecondary education if the institution at which the student is enrolled awards the student 4 years of academic credit at that institution for coursework completed by the student before 2013. Amend my taxes This student generally would not be an eligible student for purposes of the American opportunity credit. Amend my taxes Exception. Amend my taxes   Any academic credit awarded solely on the basis of the student's performance on proficiency examinations is disregarded in determining whether the student has completed 4 years of postsecondary education. Amend my taxes Enrolled at least half-time. Amend my taxes   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. Amend my taxes   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Amend my taxes However, the standard may not be lower than any of those established by the U. Amend my taxes S. Amend my taxes Department of Education under the Higher Education Act of 1965. Amend my taxes Please click here for the text description of the image. Amend my taxes Figure 2-2 Example 1. Amend my taxes Mack graduated from high school in June 2012. Amend my taxes In September, he enrolled in an undergraduate degree program at College U, and attended full-time for both the 2012 fall and 2013 spring semesters. Amend my taxes For the 2013 fall semester, Mack was enrolled less than half-time. Amend my taxes Because Mack was enrolled in an undergraduate degree program on at least a half-time basis for at least one academic period that began during 2012 and at least one academic period that began during 2013, he is an eligible student for tax years 2012 and 2013 (including the 2013 fall semester when he enrolled at College U on less than a half-time basis). Amend my taxes Example 2. Amend my taxes After taking classes at College V on a part-time basis for a few years, Shelly became a full-time student for the 2013 spring semester. Amend my taxes College V classified Shelly as a second-semester senior (fourth year) for the 2013 spring semester and as a first-semester graduate student (fifth year) for the 2013 fall semester. Amend my taxes Because College V did not classify Shelly as having completed the first 4 years of postsecondary education as of the beginning of 2013, Shelly is an eligible student for tax year 2013. Amend my taxes Therefore, the qualified education expenses paid for the 2013 spring semester and the 2013 fall semester are taken into account in calculating the American opportunity credit for 2013. Amend my taxes Example 3. Amend my taxes During the 2012 fall semester, Larry was a high school student who took classes on a half-time basis at College X. Amend my taxes Larry was not enrolled as part of a degree program at College X because College X only admits students to a degree program if they have a high school diploma or equivalent. Amend my taxes Because Larry was not enrolled in a degree program at College X during 2012, Larry was not an eligible student for tax year 2012. Amend my taxes Example 4. Amend my taxes The facts are the same as in Example 3. Amend my taxes During the 2013 spring semester, Larry again attended College X but not as part of a degree program. Amend my taxes Larry graduated from high school in June 2013. Amend my taxes For the 2013 fall semester, Larry enrolled as a full-time student in College X as part of a degree program, and College X awarded Larry credit for his prior coursework at College X. Amend my taxes Because Larry was enrolled in a degree program at College X for the 2013 fall term on at least a half-time basis, Larry is an eligible student for all of tax year 2013. Amend my taxes Therefore, the qualified education expenses paid for classes taken at College X during both the 2013 spring semester (during which Larry was not enrolled in a degree program) and the 2013 fall semester are taken into account in computing any American opportunity credit. Amend my taxes Example 5. Amend my taxes Dee graduated from high school in June 2012. Amend my taxes In January 2013, Dee enrolled in a 1-year postsecondary certificate program on a full-time basis to obtain a certificate as a travel agent. Amend my taxes Dee completed the program in December 2013, and was awarded a certificate. Amend my taxes In January 2014, she enrolled in a 1-year postsecondary certificate program on a full-time basis to obtain a certificate as a computer programmer. Amend my taxes Dee is an eligible student for both tax years 2013 and 2014 because she meets the degree requirement, the work load requirement, and the year of study requirement for those years. Amend my taxes Who Can Claim a Dependent's Expenses If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both of you, can claim an American opportunity credit for your dependent's expenses for that year. Amend my taxes For you to claim an American opportunity credit for your dependent's expenses, you must also claim an exemption for your dependent. Amend my taxes You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Amend my taxes IF you. Amend my taxes . Amend my taxes . Amend my taxes THEN only. Amend my taxes . Amend my taxes . Amend my taxes claim an exemption on  your tax return for a  dependent who is an  eligible student you can claim the American opportunity credit based on that dependent's expenses. Amend my taxes The dependent cannot claim the credit. Amend my taxes do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled to the exemption) the dependent can claim the American opportunity credit. Amend my taxes You cannot claim the credit based on this dependent's expenses. Amend my taxes Expenses paid by dependent. Amend my taxes   If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Amend my taxes Include these expenses when figuring the amount of your American opportunity credit. Amend my taxes    Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent. Amend my taxes Expenses paid by you. Amend my taxes   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the American opportunity credit. Amend my taxes If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the American opportunity credit. Amend my taxes Expenses paid by others. Amend my taxes   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. Amend my taxes In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Amend my taxes If you claim an exemption on your tax return for the student, you are considered to have paid the expenses. Amend my taxes Example. Amend my taxes In 2013, Ms. Amend my taxes Allen makes a payment directly to an eligible educational institution for her grandson Todd's qualified education expenses. Amend my taxes For purposes of claiming an American opportunity credit, Todd is treated as receiving the money from his grandmother and, in turn, paying his qualified education expenses himself. Amend my taxes Unless an exemption for Todd is claimed on someone else's 2013 tax return, only Todd can use the payment to claim an American opportunity credit. Amend my taxes If anyone, such as Todd's parents, claims an exemption for Todd on his or her 2013 tax return, whoever claims the exemption may be able to use the expenses to claim an American opportunity credit. Amend my taxes If anyone else claims an exemption for Todd, Todd cannot claim an American opportunity credit. Amend my taxes Tuition reduction. Amend my taxes    When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. Amend my taxes If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. Amend my taxes For more information on tuition reductions, see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Amend my taxes Figuring the Credit The amount of the American opportunity credit (per eligible student) is the sum of: 100% of the first $2,000 of qualified education expenses you paid for the eligible student, and 25% of the next $2,000 of qualified education expenses you paid for that student. Amend my taxes The maximum amount of American opportunity credit you can claim in 2013 is $2,500 multiplied by the number of eligible students. Amend my taxes You can claim the full $2,500 for each eligible student for whom you paid at least $4,000 of adjusted qualified education expenses. Amend my taxes However, the credit may be reduced based on your MAGI. Amend my taxes See Effect of the Amount of Your Income on the Amount of Your Credit , later. Amend my taxes Example. Amend my taxes Jack and Kay Ford are married and file a joint tax return. Amend my taxes For 2013, they claim an exemption for their dependent daughter on their tax return. Amend my taxes Their MAGI is $70,000. Amend my taxes Their daughter is in her junior (third) year of studies at the local university. Amend my taxes Jack and Kay paid qualified education expenses of $4,300 in 2013. Amend my taxes Jack and Kay, their daughter, and the local university meet all of the requirements for the American opportunity credit. Amend my taxes Jack and Kay can claim a $2,500 American opportunity credit in 2013. Amend my taxes This is 100% of the first $2,000 of qualified education expenses, plus 25% of the next $2,000. Amend my taxes Form 1098-T. Amend my taxes   To help you figure your American opportunity credit, the student should receive Form 1098-T, Tuition Statement. Amend my taxes Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. Amend my taxes An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Amend my taxes However, the amounts in boxes 1 and 2 of Form 1098-T might be different than what you paid. Amend my taxes When figuring the credit, use only the amounts you paid or are deemed to have paid in 2013 for qualified education expenses. Amend my taxes   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. Amend my taxes    The eligible educational institution may ask for a completed Form W-9S, Request for Student's or Borrower's Taxpayer Identification Number and Certification, or similar statement to obtain the student's name, address, and taxpayer identification number. Amend my taxes Effect of the Amount of Your Income on the Amount of Your Credit The amount of your American opportunity credit is phased out (gradually reduced) if your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). Amend my taxes You cannot claim an American opportunity credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint return). Amend my taxes Modified adjusted gross income (MAGI). Amend my taxes   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. Amend my taxes MAGI when using Form 1040A. Amend my taxes   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. Amend my taxes MAGI when using Form 1040. Amend my taxes   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. Amend my taxes You can use Worksheet 2-1, next, to figure your MAGI. Amend my taxes    Worksheet 2-1. Amend my taxes MAGI for the American Opportunity Credit 1. Amend my taxes Enter your adjusted gross income  (Form 1040, line 38)   1. Amend my taxes   2. Amend my taxes Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. Amend my taxes       3. Amend my taxes Enter your foreign housing deduction (Form 2555, line 50)   3. Amend my taxes       4. Amend my taxes Enter the amount of income from Puerto Rico you are excluding   4. Amend my taxes       5. Amend my taxes Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. Amend my taxes       6. Amend my taxes Add the amounts on lines 2, 3, 4, and 5   6. Amend my taxes   7. Amend my taxes Add the amounts on lines 1 and 6. Amend my taxes  This is your modified adjusted  gross income. Amend my taxes Enter here and  on Form 8863, line 3   7. Amend my taxes   Phaseout. Amend my taxes   If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit using lines 2-7, of Form 8863, Part I. Amend my taxes The same method is shown in the following example. Amend my taxes Example. Amend my taxes You are filing a joint return and your MAGI is $165,000. Amend my taxes In 2013, you paid $5,000 of qualified education expenses. Amend my taxes You figure a tentative American opportunity credit of $2,500 (100% of the first $2,000 of qualified education expenses, plus 25% of the next $2,000 of qualified education expenses). Amend my taxes Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($2,500) by a fraction. Amend my taxes The numerator of the fraction is $180,000 (the upper limit for those filing a joint return) minus your MAGI. Amend my taxes The denominator is $20,000, the range of incomes for the phaseout ($160,000 to $180,000). Amend my taxes The result is the amount of your phased out (reduced) American opportunity credit ($1,875). Amend my taxes      $2,500 × $180,000 − $165,000  $20,000 = $1,875   Refundable Part of Credit Forty percent of the American opportunity credit is refundable for most taxpayers. Amend my taxes However, if you were under age 24 at the end of 2013 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Amend my taxes Instead, your allowed credit (figured on Form 8863, Part II) will be used to reduce your tax as a nonrefundable credit only. Amend my taxes You do not qualify for a refund if items 1 (a, b, or c), 2, and 3 below apply to you. Amend my taxes You were: Under age 18 at the end of 2013, or Age 18 at the end of 2013 and your earned income (defined below) was less than one-half of your support (defined below), or Over age 18 and under age 24 at the end of 2013 and a full-time student (defined below) and your earned income (defined below) was less than one-half of your support (defined below). Amend my taxes At least one of your parents was alive at the end of 2013. Amend my taxes You are filing a return as single, head of household, qualifying widow(er), or married filing separately for 2013. Amend my taxes Earned income. Amend my taxes   Earned income includes wages, salaries, professional fees, and other payments received for personal services actually performed. Amend my taxes Earned income includes the part of any scholarship or fellowship that represents payment for teaching, research, or other services performed by the student that are required as a condition for receiving the scholarship or fellowship. Amend my taxes Earned income does not include that part of the compensation for personal services rendered to a corporation which represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered. Amend my taxes   If you are a sole proprietor or a partner in a trade or business in which both personal services and capital are material income-producing factors, earned income also includes a reasonable allowance for compensation for personal services, but not more than 30% of your share of the net profits from that trade or business (after subtracting the deduction for one-half of self-employment tax). Amend my taxes However, if capital is not an income-producing factor and your personal services produced the business income, the 30% limit does not apply. Amend my taxes Support. Amend my taxes   Your support includes food, shelter, clothing, medical and dental care, education, and the like. Amend my taxes Generally, the amount of the item of support will be the amount of expenses incurred by the one furnishing such item. Amend my taxes If the item of support is in the form of property or lodging, measure the amount of such item of support by its fair market value. Amend my taxes However, a scholarship received by you is not considered support if you are a full-time student. Amend my taxes See Publication 501 for details. Amend my taxes Full-time student. Amend my taxes   You are a full-time student for 2013 if during any part of any 5 calendar months during the year you were enrolled as a full-time student at an eligible educational institution (defined earlier), or took a full-time, on-farm training course given by such an institution or by a state, county, or local government agency. Amend my taxes Claiming the Credit You claim the American opportunity credit by completing Form 8863 and submitting it with your Form 1040 or 1040A. Amend my taxes Enter the nonrefundable part of the credit on Form 1040, line 49, or on Form 1040A, line 31. Amend my taxes Enter the refundable part of the credit on Form 1040, line 66, or on Form 1040A, line 40. Amend my taxes A filled-in Form 8863 is shown at the end of this publication. Amend my taxes Note. Amend my taxes In Appendix A. Amend my taxes at the end of this publication, there is an example illustrating the use of Form 8863 when both the American opportunity credit and the lifetime learning credit are claimed on the same tax return. Amend my taxes Prev  Up  Next   Home   More Online Publications
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Contact My Local Office in Maryland

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City Street Address Days/Hours of Service Telephone*
Annapolis 190 Admiral Cochrane Dr.
Annapolis, MD 21401

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon - 1:00 p.m.)

 

**This office will be open until 6:00 p.m. on 4/14 & 4/15**

 

Services Provided

(301) 695-7615
Baltimore 31 Hopkins Plaza
Baltimore, MD 21201

Monday-Friday - 8:30 a.m.- 4:30 p.m.


Services Provided

(410) 962-7969 
Frederick  201 Thomas- Johnson Dr.
Frederick, MD 21702 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.) 

 

Services Provided

(301) 695-7615 
Hagerstown  1260 Maryland Ave.
Hagerstown, MD 21740 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.) 

 

Services Provided

(301) 797-6624 
Landover  8401 Corporate Dr.
Landover, MD 20785 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 12:30 p.m. - 1:30 p.m.)


Services Provided

(240) 613-7952 
LaVale  14701 National Highway 
LaVale, MD 21502 

Monday-Friday - 8:30 a.m.- 2:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)
 

Services Provided

(301) 729-6397 
Salisbury  212 West Main St.
Salisbury, MD 21801 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 


Services Provided

(410) 677-6718
Wheaton  11510 Georgia Ave.
Wheaton, MD 20902 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 

 

Services Provided

(240) 613-8976 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (443) 853-6000 in Baltimore or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
Fallon Federal Building
31 Hopkins Plaza, Room 1432
Baltimore, MD 21201

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Amend My Taxes

Amend my taxes Publication 544 - Introductory Material Table of Contents Future Developments What's New Important Reminders IntroductionOrdering forms and publications. Amend my taxes Tax questions. Amend my taxes Future Developments For the latest information about developments related to Publication 544, such as legislation enacted after it was published, go to www. Amend my taxes irs. Amend my taxes gov/pub544. Amend my taxes What's New Direct reporting on Schedule D. Amend my taxes   For 2013, certain transactions may be combined and the totals reported directly on Schedule D. Amend my taxes If you choose to do that, you do not need to include these transactions on Form 8949, Sales and Other Dispositions of Capital Assets. Amend my taxes For additional information, see Schedule D and Form 8949 in chapter 4. Amend my taxes Tax rate on net capital gain and qualified dividends. Amend my taxes   The maximum tax rate of 15% on net capital gain and qualified dividends has increased to 20% for some taxpayers. Amend my taxes See Capital Gains Tax Rates in chapter 4. Amend my taxes Important Reminders Dispositions of U. Amend my taxes S. Amend my taxes real property interests by foreign persons. Amend my taxes  If you are a foreign person or firm and you sell or otherwise dispose of a U. Amend my taxes S. Amend my taxes real property interest, the buyer (or other transferee) may have to withhold income tax on the amount you receive for the property (including cash, the fair market value of other property, and any assumed liability). Amend my taxes Corporations, partnerships, trusts, and estates also may have to withhold on certain U. Amend my taxes S. Amend my taxes real property interests they distribute to you. Amend my taxes You must report these dispositions and distributions and any income tax withheld on your U. Amend my taxes S. Amend my taxes income tax return. Amend my taxes For more information on dispositions of U. Amend my taxes S. Amend my taxes real property interests, see Publication 519, U. Amend my taxes S. Amend my taxes Tax Guide for Aliens. Amend my taxes Also see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. Amend my taxes Foreign source income. Amend my taxes  If you are a U. Amend my taxes S. Amend my taxes citizen with income from dispositions of property outside the United States (foreign income), you must report all such income on your tax return unless it is exempt from U. Amend my taxes S. Amend my taxes law. Amend my taxes This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payor. Amend my taxes Photographs of missing children. Amend my taxes  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Amend my taxes Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Amend my taxes You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Amend my taxes Introduction You dispose of property when any of the following occurs. Amend my taxes You sell property. Amend my taxes You exchange property for other property. Amend my taxes Your property is condemned or disposed of under threat of condemnation. Amend my taxes Your property is repossessed. Amend my taxes You abandon property. Amend my taxes You give property away. Amend my taxes This publication explains the tax rules that apply when you dispose of property. Amend my taxes It discusses the following topics. Amend my taxes How to figure a gain or loss. Amend my taxes Whether your gain or loss is ordinary or capital. Amend my taxes How to treat your gain or loss when you dispose of business property. Amend my taxes How to report a gain or loss. Amend my taxes This publication also explains whether your gain is taxable or your loss is deductible. Amend my taxes This publication does not discuss certain transactions covered in other IRS publications. Amend my taxes These include the following. Amend my taxes Most transactions involving stocks, bonds, options, forward and futures contracts, and similar investments. Amend my taxes See chapter 4 of Publication 550, Investment Income and Expenses. Amend my taxes Sale of your main home. Amend my taxes See Publication 523, Selling Your Home. Amend my taxes Installment sales. Amend my taxes See Publication 537, Installment Sales. Amend my taxes Transfers of property at death. Amend my taxes See Publication 559, Survivors, Executors, and Administrators. Amend my taxes Forms to file. Amend my taxes   When you dispose of property, you usually will have to file one or more of the following forms. Amend my taxes Schedule D, Capital Gains and Losses. Amend my taxes Form 4797, Sales of Business Property. Amend my taxes Form 8824, Like-Kind Exchanges. Amend my taxes Form 8949, Sales and Other Dispositions of Capital Assets. Amend my taxes    Although the discussions in this publication may at times refer mainly to individuals, many of the rules discussed also apply to taxpayers other than individuals. Amend my taxes However, the rules for property held for personal use usually will not apply to taxpayers other than individuals. Amend my taxes Comments and suggestions. Amend my taxes   We welcome your comments about this publication and your suggestions for future editions. Amend my taxes   You can send your comments to the following address. Amend my taxes Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Amend my taxes NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Amend my taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Amend my taxes You can also send us comments from www. Amend my taxes irs. Amend my taxes gov/formspubs/. Amend my taxes Click on “More Information ” and then on “Give us feedback. Amend my taxes ” Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products. Amend my taxes Ordering forms and publications. Amend my taxes   Visit www. Amend my taxes irs. Amend my taxes gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Amend my taxes Internal Revenue Service 1201 N. Amend my taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Amend my taxes   If you have a tax question, check the information available on IRS. Amend my taxes gov or call 1-800-829-1040. Amend my taxes We cannot answer tax questions sent to either of the above addresses. Amend my taxes Prev  Up  Next   Home   More Online Publications