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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Free Federal & State E-file

Free State Tax FormElectronic State Tax Filing2012 1040x Tax FormOhio 1040ez InstructionsRevised Tax ReturnFree Tax AmendmentFree Amended Tax ReturnIrs 1040ez FormIrs 2011 Tax Return FormsTax Form 1040x1040ez Fill In FormMy1040ezHow To Amend Tax Return TurbotaxHow To Refile Your TaxesHow To Amend 2011 Tax Return TurbotaxFile 1040ez FormAmended Federal Tax FormLiberty TaxH&r Block Free 1040ez2011 Tax Forms 1040ezHow Do You Amend Your Tax ReturnOnline Tax FilingTax Form 1040ez 2013I Want To File My State Taxes Online For Free2011 1040 Ez2013 State Tax FormAmended 1040 EzFiling Amended Tax Return OnlineHow To File School TaxesFile 2009 Taxes Online For FreeHow Do I File 2011 Taxes NowFile 2012 Taxes For Free OnlineCan I Still File 2012 Taxes OnlineFiling A Tax Return OnlineHow To Amend Previous Tax ReturnsFiling State ReturnsFile 2011 Tax Return Online For Free2009 Form 1040 Ez2011 Tax AmendmentFile State Taxes Free 2013

Free Federal & State E-file

Free federal & state e-file 4. Free federal & state e-file   Student Loan Interest Deduction Table of Contents Introduction Student Loan Interest DefinedQualified Student Loan Qualified Education Expenses Include As Interest Do Not Include As Interest When Must Interest Be Paid Can You Claim the DeductionNo Double Benefit Allowed Figuring the DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Which Worksheet To Use Claiming the Deduction Introduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. Free federal & state e-file However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. Free federal & state e-file For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. Free federal & state e-file This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. Free federal & state e-file The student loan interest deduction is taken as an adjustment to income. Free federal & state e-file This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). Free federal & state e-file This chapter explains: What type of loan interest you can deduct, Whether you can claim the deduction, What expenses you must have paid with the student loan, Who is an eligible student, How to figure the deduction, and How to claim the deduction. Free federal & state e-file Table 4-1. Free federal & state e-file Student Loan Interest Deduction at a Glance This table summarizes the features of the student loan interest deduction. Free federal & state e-file Do not rely on this table alone. Free federal & state e-file Refer to the text for complete details. Free federal & state e-file Feature   Description Maximum benefit   You can reduce your income subject to tax by up to $2,500. Free federal & state e-file Loan qualifications   Your student loan: •must have been taken out solely to pay qualified education expenses, and •cannot be from a related person or made under a qualified employer plan. Free federal & state e-file Student qualifications   The student must be: •you, your spouse, or your dependent, and  •enrolled at least half-time in a degree program. Free federal & state e-file Time limit on deduction   You can deduct interest paid during the remaining period of your student loan. Free federal & state e-file Limit on modified adjusted gross income (MAGI)   $155,000 if married filing a joint return; $75,000 if single, head of household, or qualifying widow(er). Free federal & state e-file Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. Free federal & state e-file It includes both required and voluntary interest payments. Free federal & state e-file Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period for an eligible student. Free federal & state e-file Loans from the following sources are not qualified student loans. Free federal & state e-file A related person. Free federal & state e-file A qualified employer plan. Free federal & state e-file Your dependent. Free federal & state e-file   Generally, your dependent is someone who is either a: Qualifying child, or Qualifying relative. Free federal & state e-file You can find more information about dependents in Publication 501. Free federal & state e-file Exceptions. Free federal & state e-file   For purposes of the student loan interest deduction, there are the following exceptions to the general rules for dependents. Free federal & state e-file An individual can be your dependent even if you are the dependent of another taxpayer. Free federal & state e-file An individual can be your dependent even if the individual files a joint return with a spouse. Free federal & state e-file An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). Free federal & state e-file Reasonable period of time. Free federal & state e-file   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. Free federal & state e-file   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. Free federal & state e-file The expenses relate to a specific academic period, and The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. Free federal & state e-file   If neither of the above situations applies, the reasonable period of time usually is determined based on all the relevant facts and circumstances. Free federal & state e-file Academic period. Free federal & state e-file   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. Free federal & state e-file 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. Free federal & state e-file Eligible student. Free federal & state e-file   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Free federal & state e-file Enrolled at least half-time. Free federal & state e-file   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. Free federal & state e-file   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Free federal & state e-file However, the standard may not be lower than any of those established by the U. Free federal & state e-file S. Free federal & state e-file Department of Education under the Higher Education Act of 1965. Free federal & state e-file Related person. Free federal & state e-file   You cannot deduct interest on a loan you get from a related person. Free federal & state e-file Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. Free federal & state e-file ), Your lineal descendants (children, grandchildren, etc. Free federal & state e-file ), and Certain corporations, partnerships, trusts, and exempt organizations. Free federal & state e-file Qualified employer plan. Free federal & state e-file   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. Free federal & state e-file Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. Free federal & state e-file They include amounts paid for the following items. Free federal & state e-file Tuition and fees. Free federal & state e-file Room and board. Free federal & state e-file Books, supplies, and equipment. Free federal & state e-file Other necessary expenses (such as transportation). Free federal & state e-file The cost of room and board qualifies only to the extent that it is not more than the greater of: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Free federal & state e-file Eligible educational institution. Free federal & state e-file   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. Free federal & state e-file S. Free federal & state e-file Department of Education. Free federal & state e-file It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Free federal & state e-file   Certain educational institutions located outside the United States also participate in the U. Free federal & state e-file S. Free federal & state e-file Department of Education's Federal Student Aid (FSA) programs. Free federal & state e-file   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. Free federal & state e-file   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. Free federal & state e-file The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. Free federal & state e-file    The educational institution should be able to tell you if it is an eligible educational institution. Free federal & state e-file Adjustments to Qualified Education Expenses You must reduce your qualified education expenses by the total amount paid for them with the following tax-free items. Free federal & state e-file Employer-provided educational assistance. Free federal & state e-file See chapter 11, Employer-Provided Educational Assistance . Free federal & state e-file Tax-free distribution of earnings from a Coverdell education savings account (ESA). Free federal & state e-file See Tax-Free Distributions in chapter 7, Coverdell Education Savings Account. Free federal & state e-file Tax-free distribution of earnings from a qualified tuition program (QTP). Free federal & state e-file See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program. Free federal & state e-file U. Free federal & state e-file S. Free federal & state e-file savings bond interest that you exclude from income because it is used to pay qualified education expenses. Free federal & state e-file See chapter 10, Education Savings Bond Program . Free federal & state e-file The tax-free part of scholarships and fellowships. Free federal & state e-file See Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Free federal & state e-file Veterans' educational assistance. Free federal & state e-file See Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Free federal & state e-file Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Free federal & state e-file Include As Interest In addition to simple interest on the loan, if all other requirements are met, the items discussed below can be student loan interest. Free federal & state e-file Loan origination fee. Free federal & state e-file   In general, this is a one-time fee charged by the lender when a loan is made. Free federal & state e-file To be deductible as interest, a loan origination fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. Free federal & state e-file A loan origination fee treated as interest accrues over the term of the loan. Free federal & state e-file   Loan origination fees were not required to be reported on Form 1098-E, Student Loan Interest Statement, for loans made before September 1, 2004. Free federal & state e-file If loan origination fees are not included in the amount reported on your Form 1098-E, you can use any reasonable method to allocate the loan origination fees over the term of the loan. Free federal & state e-file The method shown in the example below allocates equal portions of the loan origination fee to each payment required under the terms of the loan. Free federal & state e-file A method that results in the double deduction of the same portion of a loan origination fee would not be reasonable. Free federal & state e-file Example. Free federal & state e-file In August 2004, Bill took out a student loan for $16,000 to pay the tuition for his senior year of college. Free federal & state e-file The lender charged a 3% loan origination fee ($480) that was withheld from the funds Bill received. Free federal & state e-file Bill began making payments on his student loan in 2013. Free federal & state e-file Because the loan origination fee was not included in his 2013 Form 1098-E, Bill can use any reasonable method to allocate that fee over the term of the loan. Free federal & state e-file Bill's loan is payable in 120 equal monthly payments. Free federal & state e-file He allocates the $480 fee equally over the total number of payments ($480 ÷ 120 months = $4 per month). Free federal & state e-file Bill made 7 payments in 2013, so he paid $28 ($4 × 7) of interest attributable to the loan origination fee. Free federal & state e-file To determine his student loan interest deduction, he will add the $28 to the amount of other interest reported to him on Form 1098-E. Free federal & state e-file Capitalized interest. Free federal & state e-file   This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. Free federal & state e-file Capitalized interest is treated as interest for tax purposes and is deductible as payments of principal are made on the loan. Free federal & state e-file No deduction for capitalized interest is allowed in a year in which no loan payments were made. Free federal & state e-file Interest on revolving lines of credit. Free federal & state e-file   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. Free federal & state e-file See Qualified Education Expenses , earlier. Free federal & state e-file Interest on refinanced student loans. Free federal & state e-file   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. Free federal & state e-file    If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. Free federal & state e-file Voluntary interest payments. Free federal & state e-file   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. Free federal & state e-file Example. Free federal & state e-file The payments on Roger's student loan were scheduled to begin in June 2012, 6 months after he graduated from college. Free federal & state e-file He began making payments as required. Free federal & state e-file In September 2013, Roger enrolled in graduate school on a full-time basis. Free federal & state e-file He applied for and was granted deferment of his loan payments while in graduate school. Free federal & state e-file Wanting to pay down his student loan as much as possible, he made loan payments in October and November 2013. Free federal & state e-file Even though these were voluntary (not required) payments, Roger can deduct the interest paid in October and November. Free federal & state e-file Allocating Payments Between Interest and Principal The allocation of payments between interest and principal for tax purposes might not be the same as the allocation shown on the Form 1098-E or other statement you receive from the lender or loan servicer. Free federal & state e-file To make the allocation for tax purposes, a payment generally applies first to stated interest that remains unpaid as of the date the payment is due, second to any loan origination fees allocable to the payment, third to any capitalized interest that remains unpaid as of the date the payment is due, and fourth to the outstanding principal. Free federal & state e-file Example. Free federal & state e-file In August 2012, Peg took out a $10,000 student loan to pay the tuition for her senior year of college. Free federal & state e-file The lender charged a 3% loan origination fee ($300) that was withheld from the funds Peg received. Free federal & state e-file The interest (5% simple) on this loan accrued while she completed her senior year and for 6 months after she graduated. Free federal & state e-file At the end of that period, the lender determined the amount to be repaid by capitalizing all accrued but unpaid interest ($625 interest accrued from August 2012 through October 2013) and adding it to the outstanding principal balance of the loan. Free federal & state e-file The loan is payable over 60 months, with a payment of $200. Free federal & state e-file 51 due on the first of each month, beginning November 2013. Free federal & state e-file Peg did not receive a Form 1098-E for 2013 from her lender because the amount of interest she paid did not require the lender to issue an information return. Free federal & state e-file However, she did receive an account statement from the lender that showed the following 2013 payments on her outstanding loan of $10,625 ($10,000 principal + $625 accrued but unpaid interest). Free federal & state e-file Payment Date   Payment   Stated Interest   Principal November 2013   $200. Free federal & state e-file 51   $44. Free federal & state e-file 27   $156. Free federal & state e-file 24 December 2013   $200. Free federal & state e-file 51   $43. Free federal & state e-file 62   $156. Free federal & state e-file 89 Totals   $401. Free federal & state e-file 02   $87. Free federal & state e-file 89   $313. Free federal & state e-file 13 To determine the amount of interest that could be deducted on the loan for 2013, Peg starts with the total amount of stated interest she paid, $87. Free federal & state e-file 89. Free federal & state e-file Next, she allocates the loan origination fee over the term of the loan ($300 ÷ 60 months = $5 per month). Free federal & state e-file A total of $10 ($5 of each of the two principal payments) should be treated as interest for tax purposes. Free federal & state e-file Peg then applies the unpaid capitalized interest ($625) to the two principal payments in the order in which they were made, and determines that the remaining amount of principal of both payments is treated as interest for tax purposes. Free federal & state e-file Assuming that Peg qualifies to take the student loan interest deduction, she can deduct $401. Free federal & state e-file 02 ($87. Free federal & state e-file 89 + $10 + $303. Free federal & state e-file 13). Free federal & state e-file For 2014, Peg will continue to allocate $5 of the loan origination fee to the principal portion of each monthly payment she makes and treat that amount as interest for tax purposes. Free federal & state e-file She also will apply the remaining amount of capitalized interest ($625 − $303. Free federal & state e-file 13 = $321. Free federal & state e-file 87) to the principal payments in the order in which they are made until the balance is zero, and treat those amounts as interest for tax purposes. Free federal & state e-file Do Not Include As Interest You cannot claim a student loan interest deduction for any of the following items. Free federal & state e-file Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. Free federal & state e-file Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. Free federal & state e-file Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. Free federal & state e-file For more information, see Student Loan Repayment Assistance in chapter 5, Student Loan Cancellations and Repayment Assistance. Free federal & state e-file When Must Interest Be Paid You can deduct all interest you paid during the year on your student loan, including voluntary payments, until the loan is paid off. Free federal & state e-file Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. Free federal & state e-file Your filing status is any filing status except married filing separately. Free federal & state e-file No one else is claiming an exemption for you on his or her tax return. Free federal & state e-file You are legally obligated to pay interest on a qualified student loan. Free federal & state e-file You paid interest on a qualified student loan. Free federal & state e-file Claiming an exemption for you. Free federal & state e-file   Another taxpayer is claiming an exemption for you if he or she lists your name and other required information on his or her Form 1040 (or Form 1040A), line 6c, or Form 1040NR, line 7c. Free federal & state e-file Example 1. Free federal & state e-file During 2013, Josh paid $600 interest on his qualified student loan. Free federal & state e-file Only he is legally obligated to make the payments. Free federal & state e-file No one claimed an exemption for Josh for 2013. Free federal & state e-file Assuming all other requirements are met, Josh can deduct the $600 of interest he paid on his 2013 Form 1040 or 1040A. Free federal & state e-file Example 2. Free federal & state e-file During 2013, Jo paid $1,100 interest on her qualified student loan. Free federal & state e-file Only she is legally obligated to make the payments. Free federal & state e-file Jo's parents claimed an exemption for her on their 2013 tax return. Free federal & state e-file In this case, neither Jo nor her parents may deduct the student loan interest Jo paid in 2013. Free federal & state e-file Interest paid by others. Free federal & state e-file   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. Free federal & state e-file Example 1. Free federal & state e-file Darla obtained a qualified student loan to attend college. Free federal & state e-file After Darla's graduation from college, she worked as an intern for a nonprofit organization. Free federal & state e-file As part of the internship program, the nonprofit organization made an interest payment on behalf of Darla. Free federal & state e-file This payment was treated as additional compensation and reported in box 1 of her Form W-2. Free federal & state e-file Assuming all other qualifications are met, Darla can deduct this payment of interest on her tax return. Free federal & state e-file Example 2. Free federal & state e-file Ethan obtained a qualified student loan to attend college. Free federal & state e-file After graduating from college, the first monthly payment on his loan was due in December. Free federal & state e-file As a gift, Ethan's mother made this payment for him. Free federal & state e-file No one is claiming a dependency exemption for Ethan on his or her tax return. Free federal & state e-file Assuming all other qualifications are met, Ethan can deduct this payment of interest on his tax return. Free federal & state e-file No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, as home mortgage interest). Free federal & state e-file Figuring the Deduction Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. Free federal & state e-file However, the amount determined above may be gradually reduced (phased out) or eliminated based on your filing status and MAGI as explained below. Free federal & state e-file You can use Worksheet 4-1. Free federal & state e-file Student Loan Interest Deduction Worksheet (at the end of this chapter) to figure both your MAGI and your deduction. Free federal & state e-file Form 1098-E. Free federal & state e-file   To help you figure your student loan interest deduction, you should receive Form 1098-E. Free federal & state e-file Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. Free federal & state e-file   For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. Free federal & state e-file Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. Free federal & state e-file However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. Free federal & state e-file See Allocating Payments Between Interest and Principal , earlier. Free federal & state e-file    The lender may ask for a completed Form W-9S, or similar statement to obtain the borrower's name, address, and taxpayer identification number. Free federal & state e-file The form may also be used by the borrower to certify that the student loan was incurred solely to pay for qualified education expenses. Free federal & state e-file Effect of the Amount of Your Income on the Amount of Your Deduction The amount of your student loan interest deduction is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). Free federal & state e-file You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). Free federal & state e-file Modified adjusted gross income (MAGI). Free federal & state e-file   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for student loan interest. Free federal & state e-file However, as discussed below, there may be other modifications. Free federal & state e-file Table 4-2 shows how the amount of your MAGI can affect your student loan interest deduction. Free federal & state e-file Table 4-2. Free federal & state e-file Effect of MAGI on Student Loan Interest Deduction IF your filing status is. Free federal & state e-file . Free federal & state e-file . Free federal & state e-file AND your MAGI is. Free federal & state e-file . Free federal & state e-file . Free federal & state e-file THEN your student loan interest deduction is. Free federal & state e-file . Free federal & state e-file . Free federal & state e-file single,  head of household, or qualifying widow(er) not more than $60,000 not affected by the phaseout. Free federal & state e-file more than $60,000  but less than $75,000 reduced because of the phaseout. Free federal & state e-file $75,000 or more eliminated by the phaseout. Free federal & state e-file married filing joint return not more than $125,000 not affected by the phaseout. Free federal & state e-file more than $125,000 but less than $155,000 reduced because of the phaseout. Free federal & state e-file $155,000 or more eliminated by the phaseout. Free federal & state e-file MAGI when using Form 1040A. Free federal & state e-file   If you file Form 1040A, your MAGI is the AGI on line 22 of that form figured without taking into account any amount on line 18 (student loan interest deduction) and line 19 (tuition and fees deduction). Free federal & state e-file MAGI when using Form 1040. Free federal & state e-file   If you file Form 1040, your MAGI is the AGI on line 38 of that form figured without taking into account any amount on line 33 (student loan interest deduction), line 34 (tuition and fees deduction), or line 35 (domestic production activities deduction), and 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. Free federal & state e-file MAGI when using Form 1040NR. Free federal & state e-file   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form figured without taking into account any amount on line 33 (student loan interest deduction) and line 34 (domestic production activities deduction). Free federal & state e-file MAGI when using Form 1040NR-EZ. Free federal & state e-file   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form figured without taking into account any amount on line 9 (student loan interest deduction). Free federal & state e-file Phaseout. Free federal & state e-file   If your MAGI is within the range of incomes where the credit must be reduced, you must figure your reduced deduction. Free federal & state e-file To figure the phaseout, multiply your interest deduction (before the phaseout) by a fraction. Free federal & state e-file The numerator is your MAGI minus $60,000 ($125,000 in the case of a joint return). Free federal & state e-file The denominator is $15,000 ($30,000 in the case of a joint return). Free federal & state e-file Subtract the result from your deduction (before the phaseout) to give you the amount you can deduct. Free federal & state e-file Example 1. Free federal & state e-file During 2013 you paid $800 interest on a qualified student loan. Free federal & state e-file Your 2013 MAGI is $145,000 and you are filing a joint return. Free federal & state e-file You must reduce your deduction by $533, figured as follows. Free federal & state e-file   $800 × $145,000 − $125,000  $30,000 = $533   Your reduced student loan interest deduction is $267 ($800 − $533). Free federal & state e-file Example 2. Free federal & state e-file The facts are the same as in Example 1 except that you paid $2,750 interest. Free federal & state e-file Your maximum deduction for 2013 is $2,500. Free federal & state e-file You must reduce your maximum deduction by $1,667, figured as follows. Free federal & state e-file   $2,500 × $145,000 − $125,000  $30,000 = $1,667   In this example, your reduced student loan interest deduction is $833 ($2,500 − $1,667). Free federal & state e-file Which Worksheet To Use Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the instructions for Form 1040, Form 1040A, or Form 1040NR. Free federal & state e-file However, if you are filing Form 2555, Foreign Earned Income, Form 2555-EZ, Foreign Earned Income Exclusion, or Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1. Free federal & state e-file Student Loan Interest Deduction Worksheet at the end of this chapter. Free federal & state e-file Claiming the Deduction The student loan interest deduction is an adjustment to income. Free federal & state e-file To claim the deduction, enter the allowable amount on line 33 (Form 1040), line 18 (Form 1040A), line 33 (Form 1040NR), or line 9 (Form 1040NR-EZ). Free federal & state e-file Worksheet 4-1. Free federal & state e-file Student Loan Interest Deduction Worksheet Use this worksheet instead of the worksheet in the Form 1040 instructions if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. Free federal & state e-file Before using this worksheet, you must complete Form 1040, lines 7 through 32, plus any amount to be entered on the dotted line next to line 36. Free federal & state e-file 1. Free federal & state e-file Enter the total interest you paid in 2013 on qualified student loans. Free federal & state e-file Do not enter  more than $2,500 1. Free federal & state e-file   2. Free federal & state e-file Enter the amount from Form 1040, line 22 2. Free federal & state e-file       3. Free federal & state e-file Enter the total of the amounts from Form 1040,  lines 23 through 32 3. Free federal & state e-file           4. Free federal & state e-file Enter the total of any amounts entered on the dotted line next to Form 1040, line 36 4. Free federal & state e-file           5. Free federal & state e-file Add lines 3 and 4 5. Free federal & state e-file       6. Free federal & state e-file Subtract line 5 from line 2 6. Free federal & state e-file       7. Free federal & state e-file Enter any foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18) 7. Free federal & state e-file       8. Free federal & state e-file Enter any foreign housing deduction (Form 2555, line 50) 8. Free federal & state e-file       9. Free federal & state e-file Enter the amount of income from Puerto Rico you are excluding 9. Free federal & state e-file       10. Free federal & state e-file Enter the amount of income from American Samoa  you are excluding (Form 4563, line 15) 10. Free federal & state e-file       11. Free federal & state e-file Add lines 6 through 10. Free federal & state e-file This is your modified adjusted gross income 11. Free federal & state e-file   12. Free federal & state e-file Enter the amount shown below for your filing status 12. Free federal & state e-file     •Single, head of household, or qualifying widow(er)—$60,000       •Married filing jointly—$125,000     13. Free federal & state e-file Is the amount on line 11 more than the amount on line 12?       □ No. Free federal & state e-file Skip lines 13 and 14, enter -0- on line 15, and go to line 16. Free federal & state e-file       □ Yes. Free federal & state e-file Subtract line 12 from line 11 13. Free federal & state e-file   14. Free federal & state e-file Divide line 13 by $15,000 ($30,000 if married filing jointly). Free federal & state e-file Enter the result as a decimal  (rounded to at least three places). Free federal & state e-file If the result is 1. Free federal & state e-file 000 or more, enter 1. Free federal & state e-file 000 14. Free federal & state e-file . Free federal & state e-file 15. Free federal & state e-file Multiply line 1 by line 14 15. Free federal & state e-file   16. Free federal & state e-file Student loan interest deduction. Free federal & state e-file Subtract line 15 from line 1. Free federal & state e-file Enter the result here  and on Form 1040, line 33. Free federal & state e-file Do not include this amount in figuring any other  deduction on your return (such as on Schedule A, C, E, etc. Free federal & state e-file ) 16. Free federal & state e-file   Prev  Up  Next   Home   More Online Publications
Español

Teen Resources

Find resources on driving, managing money, recycling, working, protecting your identity, and more.

The Free Federal & State E-file

Free federal & state e-file 20. Free federal & state e-file   Standard Deduction Table of Contents What's New Introduction Standard Deduction Amount Standard Deduction for Dependents Who Should ItemizeWhen to itemize. Free federal & state e-file Married persons who filed separate returns. Free federal & state e-file What's New Standard deduction increased. Free federal & state e-file  The standard deduction for some taxpayers who do not itemize their deductions on Schedule A (Form 1040) is higher for 2013 than it was for 2012. Free federal & state e-file The amount depends on your filing status. Free federal & state e-file You can use the 2013 Standard Deduction Tables in this chapter to figure your standard deduction. Free federal & state e-file Introduction This chapter discusses the following topics. Free federal & state e-file How to figure the amount of your standard deduction. Free federal & state e-file The standard deduction for dependents. Free federal & state e-file Who should itemize deductions. Free federal & state e-file Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. Free federal & state e-file If you have a choice, you can use the method that gives you the lower tax. Free federal & state e-file The standard deduction is a dollar amount that reduces your taxable income. Free federal & state e-file It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on Schedule A (Form 1040). Free federal & state e-file The standard deduction is higher for taxpayers who: Are 65 or older, or Are blind. Free federal & state e-file You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. Free federal & state e-file Persons not eligible for the standard deduction. Free federal & state e-file   Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or her return, You are filing a tax return for a short tax year because of a change in your annual accounting period, or You are a nonresident or dual-status alien during the year. Free federal & state e-file You are considered a dual-status alien if you were both a nonresident and resident alien during the year. Free federal & state e-file Note. Free federal & state e-file If you are a nonresident alien who is married to a U. Free federal & state e-file S. Free federal & state e-file citizen or resident alien at the end of the year, you can choose to be treated as a U. Free federal & state e-file S. Free federal & state e-file resident. Free federal & state e-file (See Publication 519, U. Free federal & state e-file S. Free federal & state e-file Tax Guide for Aliens. Free federal & state e-file ) If you make this choice, you can take the standard deduction. Free federal & state e-file If an exemption for you can be claimed on another person's return (such as your parents' return), your standard deduction may be limited. Free federal & state e-file See Standard Deduction for Dependents, later. Free federal & state e-file Standard Deduction Amount The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. Free federal & state e-file Generally, the standard deduction amounts are adjusted each year for inflation. Free federal & state e-file The standard deduction amounts for most people are shown in Table 20-1. Free federal & state e-file Decedent's final return. Free federal & state e-file   The standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. Free federal & state e-file However, if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed. Free federal & state e-file Higher Standard Deduction for Age (65 or Older) If you are age 65 or older on the last day of the year and do not itemize deductions, you are entitled to a higher standard deduction. Free federal & state e-file You are considered 65 on the day before your 65th birthday. Free federal & state e-file Therefore, you can take a higher standard deduction for 2013 if you were born before January 2, 1949. Free federal & state e-file Use Table 20-2 to figure the standard deduction amount. Free federal & state e-file Higher Standard Deduction for Blindness If you are blind on the last day of the year and you do not itemize deductions, you are entitled to a higher standard deduction. Free federal & state e-file Not totally blind. Free federal & state e-file   If you are not totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that: You cannot see better than 20/200 in the better eye with glasses or contact lenses, or Your field of vision is 20 degrees or less. Free federal & state e-file   If your eye condition is not likely to improve beyond these limits, the statement should include this fact. Free federal & state e-file You must keep the statement in your records. Free federal & state e-file   If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify. Free federal & state e-file Spouse 65 or Older or Blind You can take the higher standard deduction if your spouse is age 65 or older or blind and: You file a joint return, or You file a separate return and can claim an exemption for your spouse because your spouse had no gross income and cannot be claimed as a dependent by another taxpayer. Free federal & state e-file You cannot claim the higher standard deduction for an individual other than yourself and your spouse. Free federal & state e-file Examples The following examples illustrate how to determine your standard deduction using Tables 20-1 and 20-2. Free federal & state e-file Example 1. Free federal & state e-file Larry, 46, and Donna, 33, are filing a joint return for 2013. Free federal & state e-file Neither is blind, and neither can be claimed as a dependent. Free federal & state e-file They decide not to itemize their deductions. Free federal & state e-file They use Table 20-1. Free federal & state e-file Their standard deduction is $12,200. Free federal & state e-file Example 2. Free federal & state e-file The facts are the same as in Example 1 except that Larry is blind at the end of 2013. Free federal & state e-file Larry and Donna use Table 20-2. Free federal & state e-file Their standard deduction is $13,400. Free federal & state e-file Example 3. Free federal & state e-file Bill and Lisa are filing a joint return for 2013. Free federal & state e-file Both are over age 65. Free federal & state e-file Neither is blind, and neither can be claimed as a dependent. Free federal & state e-file If they do not itemize deductions, they use Table 20-2. Free federal & state e-file Their standard deduction is $14,600. Free federal & state e-file Standard Deduction for Dependents The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the greater of: $1,000, or The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $6,100). Free federal & state e-file However, if the individual is 65 or older or blind, the standard deduction may be higher. Free federal & state e-file If you (or your spouse, if filing jointly) can be claimed as a dependent on someone else's return, use Table 20-3 to determine your standard deduction. Free federal & state e-file Earned income defined. Free federal & state e-file   Earned income is salaries, wages, tips, professional fees, and other amounts received as pay for work you actually perform. Free federal & state e-file    For purposes of the standard deduction, earned income also includes any part of a scholarship or fellowship grant that you must include in your gross income. Free federal & state e-file See Scholarships and fellowships in chapter 12 for more information on what qualifies as a scholarship or fellowship grant. Free federal & state e-file Example 1. Free federal & state e-file Michael is single. Free federal & state e-file His parents can claim an exemption for him on their 2013 tax return. Free federal & state e-file He has interest income of $780 and wages of $150. Free federal & state e-file He has no itemized deductions. Free federal & state e-file Michael uses Table 20-3 to find his standard deduction. Free federal & state e-file He enters $150 (his earned income) on line 1, $500 ($150 + $350) on line 3, $1,000 (the larger of $500 and $1,000) on line 5, and $6,100 on line 6. Free federal & state e-file His standard deduction, on line 7a, is $1,000 (the smaller of $1,000 and $6,100). Free federal & state e-file Example 2. Free federal & state e-file Joe, a 22-year-old full-time college student, can be claimed as a dependent on his parents' 2013 tax return. Free federal & state e-file Joe is married and files a separate return. Free federal & state e-file His wife does not itemize deductions on her separate return. Free federal & state e-file Joe has $1,500 in interest income and wages of $3,800. Free federal & state e-file He has no itemized deductions. Free federal & state e-file Joe finds his standard deduction by using Table 20-3. Free federal & state e-file He enters his earned income, $3,800 on line 1. Free federal & state e-file He adds lines 1 and 2 and enters $4,150 on line 3. Free federal & state e-file On line 5, he enters $4,150, the larger of lines 3 and 4. Free federal & state e-file Because Joe is married filing a separate return, he enters $6,100 on line 6. Free federal & state e-file On line 7a he enters $4,150 as his standard deduction because it is smaller than $6,100, the amount on line 6. Free federal & state e-file Example 3. Free federal & state e-file Amy, who is single, can be claimed as a dependent on her parents' 2013 tax return. Free federal & state e-file She is 18 years old and blind. Free federal & state e-file She has interest income of $1,300 and wages of $2,900. Free federal & state e-file She has no itemized deductions. Free federal & state e-file Amy uses Table 20-3 to find her standard deduction. Free federal & state e-file She enters her wages of $2,900 on line 1. Free federal & state e-file She adds lines 1 and 2 and enters $3,250 on line 3. Free federal & state e-file On line 5, she enters $3,250, the larger of lines 3 and 4. Free federal & state e-file Because she is single, Amy enters $6,100 on line 6. Free federal & state e-file She enters $3,250 on line 7a. Free federal & state e-file This is the smaller of the amounts on lines 5 and 6. Free federal & state e-file Because she checked one box in the top part of the worksheet, she enters $1,500 on line 7b. Free federal & state e-file She then adds the amounts on lines 7a and 7b and enters her standard deduction of $4,750 on line 7c. Free federal & state e-file Example 4. Free federal & state e-file Ed is single. Free federal & state e-file His parents can claim an exemption for him on their 2013 tax return. Free federal & state e-file He has wages of $7,000, interest income of $500, and a business loss of $3,000. Free federal & state e-file He has no itemized deductions. Free federal & state e-file Ed uses Table 20-3 to figure his standard deduction. Free federal & state e-file He enters $4,000 ($7,000 - $3,000) on line 1. Free federal & state e-file He adds lines 1 and 2 and enters $4,350 on line 3. Free federal & state e-file On line 5 he enters $4,350, the larger of lines 3 and 4. Free federal & state e-file Because he is single, Ed enters $6,100 on line 6. Free federal & state e-file On line 7a he enters $4,350 as his standard deduction because it is smaller than $6,100, the amount on line 6. Free federal & state e-file Who Should Itemize You should itemize deductions if your total deductions are more than the standard deduction amount. Free federal & state e-file Also, you should itemize if you do not qualify for the standard deduction, as discussed earlier under Persons not eligible for the standard deduction . Free federal & state e-file You should first figure your itemized deductions and compare that amount to your standard deduction to make sure you are using the method that gives you the greater benefit. Free federal & state e-file You may be subject to a limit on some of your itemized deductions if your adjusted gross income is more than: $250,000 if single ($275,000 if head of household, $300,000 if married filing jointly or qualifying widow(er); or $150,000 if married filing separately). Free federal & state e-file See chapter 29 or the instructions for Schedule A (Form 1040) for more information on figuring the correct amount of your itemized deductions. Free federal & state e-file When to itemize. Free federal & state e-file   You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Do not qualify for the standard deduction, or the amount you can claim is limited, Had large uninsured medical and dental expenses during the year, Paid interest and taxes on your home, Had large unreimbursed employee business expenses or other miscellaneous deductions, Had large uninsured casualty or theft losses, Made large contributions to qualified charities, or Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled. Free federal & state e-file These deductions are explained in chapters 21–28. Free federal & state e-file    If you decide to itemize your deductions, complete Schedule A and attach it to your Form 1040. Free federal & state e-file Enter the amount from Schedule A, line 29, on Form 1040, line 40. Free federal & state e-file Electing to itemize for state tax or other purposes. Free federal & state e-file   Even if your itemized deductions are less than your standard deduction, you can elect to itemize deductions on your federal return rather than take the standard deduction. Free federal & state e-file You may want to do this if, for example, the tax benefit of itemizing your deductions on your state tax return is greater than the tax benefit you lose on your federal return by not taking the standard deduction. Free federal & state e-file To make this election, you must check the box on line 30 of Schedule A. Free federal & state e-file Changing your mind. Free federal & state e-file   If you do not itemize your deductions and later find that you should have itemized — or if you itemize your deductions and later find you should not have — you can change your return by filing Form 1040X, Amended U. Free federal & state e-file S. Free federal & state e-file Individual Income Tax Return. Free federal & state e-file See Amended Returns and Claims for Refund in chapter 1 for more information on amended returns. Free federal & state e-file Married persons who filed separate returns. Free federal & state e-file   You can change methods of taking deductions only if you and your spouse both make the same changes. Free federal & state e-file Both of you must file a consent to assessment for any additional tax either one may owe as a result of the change. Free federal & state e-file    You and your spouse can use the method that gives you the lower total tax, even though one of you may pay more tax than you would have paid by using the other method. Free federal & state e-file You both must use the same method of claiming deductions. Free federal & state e-file If one itemizes deductions, the other should itemize because he or she will not qualify for the standard deduction. Free federal & state e-file See Persons not eligible for the standard deduction , earlier. Free federal & state e-file 2013 Standard Deduction Tables If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you cannot take the standard deduction even if you were born before January 2, 1949, or are blind. Free federal & state e-file Table 20-1. Free federal & state e-file Standard Deduction Chart for Most People* If your filing status is. Free federal & state e-file . Free federal & state e-file . Free federal & state e-file Your standard deduction is: Single or Married filing separately $6,100 Married filing jointly or Qualifying widow(er) with dependent child 12,200 Head of household 8,950 *Do not use this chart if you were born before January 2, 1949, are blind, or if someone else can claim you (or your spouse if filing jointly) as a dependent. Free federal & state e-file Use Table 20-2 or 20-3 instead. Free federal & state e-file Table 20-2. Free federal & state e-file Standard Deduction Chart for People Born Before January 2, 1949, or Who are Blind Check the correct number of boxes below. Free federal & state e-file Then go to the chart. Free federal & state e-file You: Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked   IF  your filing status is. Free federal & state e-file . Free federal & state e-file . Free federal & state e-file AND the number in the box above is. Free federal & state e-file . Free federal & state e-file . Free federal & state e-file THEN your standard deduction is. Free federal & state e-file . Free federal & state e-file . Free federal & state e-file Single 1 $7,600   2 9,100 Married filing jointly 1 $13,400 or Qualifying 2 14,600 widow(er) with 3 15,800 dependent child 4 17,000 Married filing 1 $7,300 separately 2 8,500   3 9,700   4 10,900 Head of household 1 $10,450   2 11,950 *If someone else can claim you (or your spouse if filing jointly) as a dependent, use Table 20-3 instead. Free federal & state e-file Table 20-3. Free federal & state e-file Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse if filing jointly) as a dependent. Free federal & state e-file Check the correct number of boxes below. Free federal & state e-file Then go to the worksheet. Free federal & state e-file You:   Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked 1. Free federal & state e-file Enter your earned income (defined below). Free federal & state e-file If none, enter -0-. Free federal & state e-file 1. Free federal & state e-file   2. Free federal & state e-file Additional amount. Free federal & state e-file 2. Free federal & state e-file $350 3. Free federal & state e-file Add lines 1 and 2. Free federal & state e-file 3. Free federal & state e-file   4. Free federal & state e-file Minimum standard deduction. Free federal & state e-file 4. Free federal & state e-file $1,000 5. Free federal & state e-file Enter the larger of line 3 or line 4. Free federal & state e-file 5. Free federal & state e-file   6. Free federal & state e-file Enter the amount shown below for your filing status. Free federal & state e-file Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 6. Free federal & state e-file   7. Free federal & state e-file Standard deduction. Free federal & state e-file         a. Free federal & state e-file Enter the smaller of line 5 or line 6. Free federal & state e-file If born after January 1, 1949, and not blind, stop here. Free federal & state e-file This is your standard deduction. Free federal & state e-file Otherwise, go on to line 7b. Free federal & state e-file 7a. Free federal & state e-file     b. Free federal & state e-file If born before January 2, 1949, or blind, multiply $1,500 ($1,200 if married) by the number in the box above. Free federal & state e-file 7b. Free federal & state e-file     c. Free federal & state e-file Add lines 7a and 7b. Free federal & state e-file This is your standard deduction for 2013. Free federal & state e-file 7c. Free federal & state e-file   Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Free federal & state e-file It also includes any amount received as a scholarship that you must include in your income. Free federal & state e-file Prev  Up  Next   Home   More Online Publications