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Filing A Tax Ammendment

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Filing A Tax Ammendment

Filing a tax ammendment 5. Filing a tax ammendment   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. Filing a tax ammendment Free help with your tax return. Filing a tax ammendment   You can get free help preparing your return nationwide from IRS-certified volunteers. Filing a tax ammendment The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Filing a tax ammendment The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Filing a tax ammendment 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. Filing a tax ammendment In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Filing a tax ammendment To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Filing a tax ammendment gov, download the IRS2Go app, or call 1-800-906-9887. Filing a tax ammendment   As part of the TCE program, AARP offers the Tax-Aide counseling program. Filing a tax ammendment To find the nearest AARP Tax-Aide site, visit AARP's website at www. Filing a tax ammendment aarp. Filing a tax ammendment org/money/taxaide or call 1-888-227-7669. Filing a tax ammendment For more information on these programs, go to IRS. Filing a tax ammendment gov and enter “VITA” in the search box. Filing a tax ammendment Internet. Filing a tax ammendment    IRS. Filing a tax ammendment gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Filing a tax ammendment Download the free IRS2Go app from the iTunes app store or from Google Play. Filing a tax ammendment 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. Filing a tax ammendment Check the status of your 2013 refund with the Where's My Refund? application on IRS. Filing a tax ammendment gov or download the IRS2Go app and select the Refund Status option. Filing a tax ammendment The IRS issues more than 9 out of 10 refunds in less than 21 days. Filing a tax ammendment 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. Filing a tax ammendment You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Filing a tax ammendment The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Filing a tax ammendment Use the Interactive Tax Assistant (ITA) to research your tax questions. Filing a tax ammendment No need to wait on the phone or stand in line. Filing a tax ammendment 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. Filing a tax ammendment When you reach the response screen, you can print the entire interview and the final response for your records. Filing a tax ammendment New subject areas are added on a regular basis. Filing a tax ammendment  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Filing a tax ammendment gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Filing a tax ammendment You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Filing a tax ammendment The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Filing a tax ammendment 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. Filing a tax ammendment 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. Filing a tax ammendment You can also ask the IRS to mail a return or an account transcript to you. Filing a tax ammendment Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Filing a tax ammendment gov or by calling 1-800-908-9946. Filing a tax ammendment Tax return and tax account transcripts are generally available for the current year and the past three years. Filing a tax ammendment Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Filing a tax ammendment Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Filing a tax ammendment 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. Filing a tax ammendment Check the status of your amended return using Where's My Amended Return? Go to IRS. Filing a tax ammendment gov and enter Where's My Amended Return? in the search box. Filing a tax ammendment You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Filing a tax ammendment It can take up to 3 weeks from the date you mailed it to show up in our system. Filing a tax ammendment Make a payment using one of several safe and convenient electronic payment options available on IRS. Filing a tax ammendment gov. Filing a tax ammendment Select the Payment tab on the front page of IRS. Filing a tax ammendment gov for more information. Filing a tax ammendment Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Filing a tax ammendment Figure your income tax withholding with the IRS Withholding Calculator on IRS. Filing a tax ammendment gov. Filing a tax ammendment 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. Filing a tax ammendment Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Filing a tax ammendment gov. Filing a tax ammendment Request an Electronic Filing PIN by going to IRS. Filing a tax ammendment gov and entering Electronic Filing PIN in the search box. Filing a tax ammendment Download forms, instructions and publications, including accessible versions for people with disabilities. Filing a tax ammendment Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Filing a tax ammendment gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Filing a tax ammendment An employee can answer questions about your tax account or help you set up a payment plan. Filing a tax ammendment Before you visit, check the Office Locator on IRS. Filing a tax ammendment gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Filing a tax ammendment If you have a special need, such as a disability, you can request an appointment. Filing a tax ammendment Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Filing a tax ammendment Apply for an Employer Identification Number (EIN). Filing a tax ammendment Go to IRS. Filing a tax ammendment gov and enter Apply for an EIN in the search box. Filing a tax ammendment Read the Internal Revenue Code, regulations, or other official guidance. Filing a tax ammendment Read Internal Revenue Bulletins. Filing a tax ammendment Sign up to receive local and national tax news and more by email. Filing a tax ammendment Just click on “subscriptions” above the search box on IRS. Filing a tax ammendment gov and choose from a variety of options. Filing a tax ammendment Phone. Filing a tax ammendment   You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Filing a tax ammendment Download the free IRS2Go app from the iTunes app store or from Google Play. Filing a tax ammendment Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Filing a tax ammendment gov, or download the IRS2Go app. Filing a tax ammendment 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. Filing a tax ammendment The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Filing a tax ammendment Most VITA and TCE sites offer free electronic filing. Filing a tax ammendment Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Filing a tax ammendment Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Filing a tax ammendment 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. Filing a tax ammendment 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. Filing a tax ammendment The IRS issues more than 9 out of 10 refunds in less than 21 days. Filing a tax ammendment Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Filing a tax ammendment 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. Filing a tax ammendment The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Filing a tax ammendment Note, the above information is for our automated hotline. Filing a tax ammendment 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. Filing a tax ammendment Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Filing a tax ammendment You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Filing a tax ammendment It can take up to 3 weeks from the date you mailed it to show up in our system. Filing a tax ammendment 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). Filing a tax ammendment You should receive your order within 10 business days. Filing a tax ammendment Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Filing a tax ammendment 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. Filing a tax ammendment Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Filing a tax ammendment The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Filing a tax ammendment These individuals can also contact the IRS through relay services such as the Federal Relay Service. Filing a tax ammendment Walk-in. Filing a tax ammendment   You can find a selection of forms, publications and services — in-person. Filing a tax ammendment Products. Filing a tax ammendment You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Filing a tax ammendment Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Filing a tax ammendment Services. Filing a tax ammendment You can walk in to your local TAC for face-to-face tax help. Filing a tax ammendment An employee can answer questions about your tax account or help you set up a payment plan. Filing a tax ammendment Before visiting, use the Office Locator tool on IRS. Filing a tax ammendment gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Filing a tax ammendment Mail. Filing a tax ammendment   You can send your order for forms, instructions, and publications to the address below. Filing a tax ammendment You should receive a response within 10 business days after your request is received. Filing a tax ammendment Internal Revenue Service 1201 N. Filing a tax ammendment Mitsubishi Motorway Bloomington, IL 61705-6613   The Taxpayer Advocate Service Is Here to Help You. Filing a tax ammendment The Taxpayer Advocate Service (TAS) is your voice at the IRS. Filing a tax ammendment Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Filing a tax ammendment   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Filing a tax ammendment 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. Filing a tax ammendment You face (or your business is facing) an immediate threat of adverse action. Filing a tax ammendment You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Filing a tax ammendment   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. Filing a tax ammendment Here's why we can help: TAS is an independent organization within the IRS. Filing a tax ammendment Our advocates know how to work with the IRS. Filing a tax ammendment Our services are free and tailored to meet your needs. Filing a tax ammendment We have offices in every state, the District of Columbia, and Puerto Rico. Filing a tax ammendment   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. Filing a tax ammendment   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Filing a tax ammendment If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Filing a tax ammendment Prev  Up  Next   Home   More Online Publications
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IRS Offers New Streamlined Option to Certain 501(c)(4) Groups Caught in Application Backlog

FS-2013-8, June 2013

Following a review of internal procedures to reduce the backlog of tax-exempt applications, the IRS is offering certain organizations that have applied for 501(c)(4) status a faster, optional method to gain tax-exempt status.

The IRS will start mailing about 80 letters this week offering the expedited option to groups that have had their applications pending for more than 120 days and involve possible political campaign intervention or issue advocacy. This effort is part of an internal review of IRS operations, processes and practices at the IRS announced today.

“The IRS is committed to improving our tax-exempt review process,” said IRS Principal Deputy Commissioner Danny Werfel. “This new streamlined option gives certain groups that have waited far too long a quick and clear path to get their status resolved.”

This “safe-harbor” option will provide certain groups an approved determination letter granting them 501(c)(4) status within two weeks if they certify they devote 60 percent or more of both their spending and time on activities that promote social welfare as defined by Section 501(c)(4). At the same time, they must certify that political campaign intervention involves less than 40 percent of both their spending and time. These thresholds apply for past, current and future years of operation. Solely for the purpose of determining eligibility for the expedited procedure, an organization must count, among other things, any public communication identifying a candidate that occurred within 60 days prior to a general election or 30 days prior to a primary as political campaign intervention.

 “The IRS will treat these groups fairly and review applications promptly, a step that will immediately reduce the backlog of these cases,” Werfel said. “At the same time, the IRS will work to ensure 501(c)(4) groups follow the law set by Congress. As part of our efforts, the IRS will continue to look for ways to improve its processes going forward.”

The IRS also emphasized that any eligible organizations that do not choose the expedited option will be treated fairly and expeditiously through the regular review process.

Full details of the expedited process and specific instructions for the groups qualifying for the option can be found in IRS Letter 5228.

Related Item: New Review Process and Expedited Self-Certification Option

 

Page Last Reviewed or Updated: 19-Dec-2013

The Filing A Tax Ammendment

Filing a tax ammendment 1. Filing a tax ammendment   Scholarships, Fellowships, Grants, and Tuition Reductions Table of Contents Reminder Introduction Scholarships and FellowshipsTax-Free Scholarships and Fellowships Taxable Scholarships and Fellowships Reporting Scholarships and Fellowships Other Types of Educational AssistanceFulbright Grants Pell Grants and Other Title IV Need-Based Education Grants Payment to Service Academy Cadets Veterans' Benefits Qualified Tuition Reduction Reminder Individual retirement arrangements (IRAs). Filing a tax ammendment  You can set up and make contributions to an IRA if you receive taxable compensation. Filing a tax ammendment Under this rule, a taxable scholarship or fellowship is compensation only if it is shown in box 1 of your Form W-2, Wage and Tax Statement. Filing a tax ammendment For more information about IRAs, see Publication 590. Filing a tax ammendment Introduction This chapter discusses the income tax treatment of various types of educational assistance you may receive if you are studying, teaching, or researching in the United States. Filing a tax ammendment The educational assistance can be for a primary or secondary school, a college or university, or a vocational school. Filing a tax ammendment Included are discussions of: Scholarships, Fellowships, Need-based education grants, such as a Pell Grant, and Qualified tuition reductions. Filing a tax ammendment Many types of educational assistance are tax free if they meet the requirements discussed here. Filing a tax ammendment Special rules apply to U. Filing a tax ammendment S. Filing a tax ammendment citizens and resident aliens who have received scholarships or fellowships for studying, teaching, or researching abroad. Filing a tax ammendment For information about these rules, see Publication 54, Tax Guide for U. Filing a tax ammendment S. Filing a tax ammendment Citizens and Resident Aliens Abroad. Filing a tax ammendment Scholarships and Fellowships A scholarship is generally an amount paid or allowed to, or for the benefit of, a student (whether an undergraduate or a graduate) at an educational institution to aid in the pursuit of his or her studies. Filing a tax ammendment A fellowship is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research. Filing a tax ammendment Amount of scholarship or fellowship. Filing a tax ammendment   The amount of a scholarship or fellowship includes the following: The value of contributed services and accommodations. Filing a tax ammendment This includes such services and accommodations as room (lodging), board (meals), laundry service, and similar services or accommodations that are received by an individual as a part of a scholarship or fellowship. Filing a tax ammendment The amount of tuition, matriculation, and other fees that are paid or remitted to the student to aid the student in pursuing study or research. Filing a tax ammendment Any amount received in the nature of a family allowance as a part of a scholarship or fellowship. Filing a tax ammendment Tax-Free Scholarships and Fellowships A scholarship or fellowship is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution. Filing a tax ammendment A scholarship or fellowship is tax free only to the extent: It does not exceed your expenses; It is not designated or earmarked for other purposes (such as room and board), and does not require (by its terms) that it cannot be used for qualified education expenses; and It does not represent payment for teaching, research, or other services required as a condition for receiving the scholarship. Filing a tax ammendment (But for exceptions, see Payment for services,later. Filing a tax ammendment Use Worksheet 1–1 to figure the amount of a scholarship or fellowship you can exclude from gross income. Filing a tax ammendment Candidate for a degree. Filing a tax ammendment   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an educational institution that: Provides a program that is acceptable for full credit toward a bachelor's or higher degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and Is authorized under federal or state law to provide such a program and is accredited by a nationally recognized accreditation agency. Filing a tax ammendment Eligible educational institution. Filing a tax ammendment   An eligible educational institution is one whose primary function is the presentation of formal instruction and that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Filing a tax ammendment Qualified education expenses. Filing a tax ammendment   For purposes of tax-free scholarships and fellowships, these are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Filing a tax ammendment These items must be required of all students in your course of instruction. Filing a tax ammendment Expenses that do not qualify. Filing a tax ammendment   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. Filing a tax ammendment Payment for services. Filing a tax ammendment   Generally, you cannot exclude from your gross income the part of any scholarship or fellowship that represents payment for teaching, research, or other services required as a condition for receiving the scholarship. Filing a tax ammendment This applies even if all candidates for a degree must perform the services to receive the degree. Filing a tax ammendment (See exceptions next. Filing a tax ammendment ) Exceptions. Filing a tax ammendment   You do not have to treat as payment for services the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. Filing a tax ammendment Example 1. Filing a tax ammendment You received a scholarship of $2,500. Filing a tax ammendment The scholarship was not received under either of the exceptions mentioned above. Filing a tax ammendment As a condition for receiving the scholarship, you must serve as a part-time teaching assistant. Filing a tax ammendment Of the $2,500 scholarship, $1,000 represents payment for teaching. Filing a tax ammendment The provider of your scholarship gives you a Form W-2 showing $1,000 as income. Filing a tax ammendment Your qualified education expenses were at least $1,500. Filing a tax ammendment Assuming that all other conditions are met, $1,500 of your scholarship is tax free. Filing a tax ammendment The $1,000 you received for teaching is taxable. Filing a tax ammendment Example 2. Filing a tax ammendment You are a candidate for a degree at a medical school. Filing a tax ammendment You receive a scholarship (not under either of the exceptions mentioned above) for your medical education and training. Filing a tax ammendment The terms of your scholarship require you to perform future services. Filing a tax ammendment A substantial penalty applies if you do not comply. Filing a tax ammendment The entire amount of your grant is taxable as payment for services in the year it is received. Filing a tax ammendment Athletic Scholarships An athletic scholarship is tax free only if and to the extent it meets the requirements discussed later. Filing a tax ammendment Worksheet 1-1. Filing a tax ammendment    You can use Worksheet 1-1, Taxable Scholarship and Fellowship Income , later, to figure the tax-free and taxable parts of your athletic scholarship. Filing a tax ammendment    Worksheet 1-1. Filing a tax ammendment Taxable Scholarship and Fellowship Income 1. Filing a tax ammendment Enter the total amount of any scholarship or fellowship for 2013. Filing a tax ammendment See Amount of scholarship or fellowship, earlier. Filing a tax ammendment 1. Filing a tax ammendment       If you are a degree candidate at an eligible educational institution, go to line 2. Filing a tax ammendment If you are not a degree candidate at an eligible educational institution, stop here. Filing a tax ammendment The entire amount is taxable. Filing a tax ammendment For information on how to report this amount on your tax return, see Reporting Scholarships and Fellowships , earlier, in this chapter. Filing a tax ammendment       2. Filing a tax ammendment Enter the amount from line 1 that was for teaching, research, or any other services required as a condition for receiving the scholarship. Filing a tax ammendment (Do not include amounts received for these items under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program. Filing a tax ammendment ) 2. Filing a tax ammendment     3. Filing a tax ammendment Subtract line 2 from line 1 3. Filing a tax ammendment     4. Filing a tax ammendment Enter the amount from line 3 that your scholarship or fellowship required you to use for other than qualified education expenses 4. Filing a tax ammendment     5. Filing a tax ammendment Subtract line 4 from line 3 5. Filing a tax ammendment     6. Filing a tax ammendment Enter the amount of your qualified education expenses 6. Filing a tax ammendment     7. Filing a tax ammendment Enter the smaller of line 5 or line 6. Filing a tax ammendment This amount is the most you can exclude from your gross income (the tax-free part of the scholarship or fellowship) 7. Filing a tax ammendment     8. Filing a tax ammendment Subtract line 7 from line 5 8. Filing a tax ammendment     9. Filing a tax ammendment Taxable part. Filing a tax ammendment Add lines 2, 4, and 8. Filing a tax ammendment See Reporting Scholarships and Fellowships , earlier, for how to report this amount on your tax return 9. Filing a tax ammendment     Taxable Scholarships and Fellowships If and to the extent your scholarship or fellowship does not meet the requirements described earlier, it is taxable and must be included in gross income. Filing a tax ammendment You can use Worksheet 1–1, Taxable Scholarship and Fellowship Income, later, to figure the tax-free and taxable parts of your scholarship or fellowship. Filing a tax ammendment Reporting Scholarships and Fellowships Whether you must report your scholarship or fellowship depends on whether you must file a return and whether any part of your scholarship or fellowship is taxable. Filing a tax ammendment If your only income is a completely tax-free scholarship or fellowship, you do not have to file a tax return and no reporting is necessary. Filing a tax ammendment If all or part of your scholarship or fellowship is taxable and you are required to file a tax return, report the taxable amount as explained below. Filing a tax ammendment You must report the taxable amount whether or not you received a Form W-2. Filing a tax ammendment If you receive an incorrect Form W-2, ask the payer for a corrected one. Filing a tax ammendment For information on whether you must file a return, see Publication 501, Exemptions, Standard Deduction, and Filing Information, or your income tax form instructions. Filing a tax ammendment How To Report How you report any taxable scholarship or fellowship income depends on which return you file. Filing a tax ammendment Form 1040EZ. Filing a tax ammendment   If you file Form 1040EZ, include the taxable amount in the total on line 1. Filing a tax ammendment If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 1. Filing a tax ammendment Form 1040A. Filing a tax ammendment   If you file Form 1040A, include the taxable amount in the total on line 7. Filing a tax ammendment If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 7. Filing a tax ammendment Form 1040. Filing a tax ammendment   If you file Form 1040, include the taxable amount in the total on line 7. Filing a tax ammendment If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 7. Filing a tax ammendment Schedule SE (Form 1040). Filing a tax ammendment   To determine your net earnings from self-employment, include amounts you receive under a scholarship as pay for your services that are reported to you on Form 1099-MISC, Miscellaneous Income. Filing a tax ammendment If your net earnings are $400 or more, you must pay self-employment tax. Filing a tax ammendment Use Schedule SE, Self-Employment Tax, to figure this tax. Filing a tax ammendment Form 1040NR. Filing a tax ammendment   If you file Form 1040NR, report the taxable amount on line 12. Filing a tax ammendment Generally, you must report the amount shown in box 2 of Form(s) 1042-S, Foreign Person's U. Filing a tax ammendment S. Filing a tax ammendment Source Income Subject to Withholding. Filing a tax ammendment See the Instructions for Form 1040NR for more information. Filing a tax ammendment Form 1040NR-EZ. Filing a tax ammendment   If you file Form 1040NR-EZ, report the taxable amount on line 5. Filing a tax ammendment Generally, you must report the amount shown in box 2 of Form(s) 1042-S. Filing a tax ammendment See the Instructions for Form 1040NR-EZ for more information. Filing a tax ammendment Other Types of Educational Assistance The following discussions deal with other common types of educational assistance. Filing a tax ammendment Fulbright Grants A Fulbright grant is generally treated as a scholarship or fellowship in figuring how much of the grant is tax free. Filing a tax ammendment Pell Grants and Other Title IV Need-Based Education Grants These need-based grants are treated as scholarships for purposes of determining their tax treatment. Filing a tax ammendment They are tax free to the extent used for qualified education expenses during the period for which a grant is awarded. Filing a tax ammendment Payment to Service Academy Cadets An appointment to a United States military academy is not a scholarship or fellowship. Filing a tax ammendment Payment you receive as a cadet or midshipman at an armed services academy is pay for personal services and will be reported to you in box 1 of Form W-2. Filing a tax ammendment Include this pay in your income in the year you receive it unless one of the exceptions, discussed earlier under Payment for services , applies. Filing a tax ammendment Veterans' Benefits Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax free. Filing a tax ammendment Do not include these payments as income on your federal tax return. Filing a tax ammendment If you qualify for one or more of the education benefits discussed in chapters 2 through 12, you may have to reduce the amount of education expenses qualifying for a specific benefit by part or all of your VA payments. Filing a tax ammendment This applies only to the part of your VA payments that is required to be used for education expenses. Filing a tax ammendment You may want to visit the Veteran's Administration website at www. Filing a tax ammendment gibill. Filing a tax ammendment va. Filing a tax ammendment gov for specific information about the various VA benefits for education. Filing a tax ammendment Example. Filing a tax ammendment You have returned to college and are receiving two education benefits under the latest GI Bill: (1) a $1,534 monthly basic housing allowance (BHA) that is directly deposited to your checking account, and (2) $3,840 paid directly to your college for tuition. Filing a tax ammendment Neither of these benefits is taxable and you do not report them on your tax return. Filing a tax ammendment You also want to claim an American opportunity credit on your return. Filing a tax ammendment You paid $5,000 in qualified education expenses (see chapter 2, American Opportunity Credit , later). Filing a tax ammendment To figure the amount of credit, you must first subtract the $3,840 from your qualified education expenses because this payment under the GI Bill was required to be used for education expenses. Filing a tax ammendment You do not subtract any amount of the BHA because it was paid to you and its use was not restricted. Filing a tax ammendment Qualified Tuition Reduction If you are allowed to study tuition free or for a reduced rate of tuition, you may not have to pay tax on this benefit. Filing a tax ammendment This is called a “tuition reduction. Filing a tax ammendment ” You do not have to include a qualified tuition reduction in your income. Filing a tax ammendment A tuition reduction is qualified only if you receive it from, and use it at, an eligible educational institution. Filing a tax ammendment You do not have to use the tuition reduction at the eligible educational institution from which you received it. Filing a tax ammendment In other words, if you work for an eligible educational institution and the institution arranges for you to take courses at another eligible educational institution without paying any tuition, you may not have to include the value of the free courses in your income. Filing a tax ammendment The rules for determining if a tuition reduction is qualified, and therefore tax free, are different if the education provided is below the graduate level or is graduate education. Filing a tax ammendment You must include in your income any tuition reduction you receive that is payment for your services. Filing a tax ammendment Eligible educational institution. Filing a tax ammendment   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Filing a tax ammendment Officers, owners, and highly compensated employees. Filing a tax ammendment   Qualified tuition reductions apply to officers, owners, or highly compensated employees only if benefits are available to employees on a nondiscriminatory basis. Filing a tax ammendment This means that the tuition reduction benefits must be available on substantially the same basis to each member of a group of employees. Filing a tax ammendment The group must be defined under a reasonable classification set up by the employer. Filing a tax ammendment The classification must not discriminate in favor of owners, officers, or highly compensated employees. Filing a tax ammendment Payment for services. Filing a tax ammendment   Generally, you must include in income the part of any qualified tuition reduction that represents payment for teaching, research, or other services by the student required as a condition of receiving the qualified tuition reduction. Filing a tax ammendment This applies even if all candidates for a degree must perform the services to receive the degree. Filing a tax ammendment (See below for exceptions. Filing a tax ammendment ) Exceptions. Filing a tax ammendment   You do not have to include in income the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. Filing a tax ammendment Education Below the Graduate Level If you receive a tuition reduction for education below the graduate level (including primary, secondary, or high school), it is a qualified tuition reduction, and therefore tax free, only if your relationship to the educational institution providing the benefit is described below. Filing a tax ammendment You are an employee of the eligible educational institution. Filing a tax ammendment You were an employee of the eligible educational institution, but you retired or left on disability. Filing a tax ammendment You are a widow or widower of an individual who died while an employee of the eligible educational institution or who retired or left on disability. Filing a tax ammendment You are the dependent child or spouse of an individual described in (1) through (3), above. Filing a tax ammendment Child of deceased parents. Filing a tax ammendment   For purposes of the qualified tuition reduction, a child is a dependent child if the child is under age 25 and both parents have died. Filing a tax ammendment Child of divorced parents. Filing a tax ammendment   For purposes of the qualified tuition reduction, a dependent child of divorced parents is treated as the dependent of both parents. Filing a tax ammendment Graduate Education A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met. Filing a tax ammendment It is provided by an eligible educational institution. Filing a tax ammendment You are a graduate student who performs teaching or research activities for the educational institution. Filing a tax ammendment You must include in income any other tuition reductions for graduate education that you receive. Filing a tax ammendment How To Report Any tuition reduction that is taxable should be included as wages in box 1 of your Form W-2. Filing a tax ammendment Report the amount from Form W-2, box 1, on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). Filing a tax ammendment Prev  Up  Next   Home   More Online Publications