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Irs Form 1040nr

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Irs Form 1040nr

Irs form 1040nr Publication 527 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSale of main home used as rental property. Irs form 1040nr Tax-free exchange of rental property occasionally used for personal purposes. Irs form 1040nr Ordering forms and publications. Irs form 1040nr Tax questions. Irs form 1040nr Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 527, such as legislation enacted after it was published, go to www. Irs form 1040nr irs. Irs form 1040nr gov/pub527. Irs form 1040nr What's New Net Investment Income Tax (NIIT). Irs form 1040nr  Beginning in 2013, you may be subject to the Net Investment Income Tax (NIIT). Irs form 1040nr NIIT is a 3. Irs form 1040nr 8% tax on the lesser of net investment income or the excess of modified adjusted gross income (MAGI) over the threshold amount. Irs form 1040nr Net investment income may include rental income and other income from passive activities. Irs form 1040nr Use Form 8960, Net Investment Income Tax, to figure this tax. Irs form 1040nr For more information on NIIT, go to IRS. Irs form 1040nr gov and enter “Net Investment Income Tax” in the search box. Irs form 1040nr Reminders Photographs of missing children. Irs form 1040nr  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Irs form 1040nr Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Irs form 1040nr You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Irs form 1040nr Introduction Do you own a second house that you rent out all the time? Do you own a vacation home that you rent out when you or your family isn't using it? These are two common types of residential rental activities discussed in this publication. Irs form 1040nr In most cases, all rental income must be reported on your tax return, but there are differences in the expenses you are allowed to deduct and in the way the rental activity is reported on your return. Irs form 1040nr First, this publication will look at the rental-for-profit activity in which there is no personal use of the property. Irs form 1040nr We will look at types of income and when each is reported, and at types of expenses and which are deductible. Irs form 1040nr Chapter 2 discusses depreciation as it applies to your rental real estate activity—what property can be depreciated and how to figure it. Irs form 1040nr Chapter 3 covers the actual reporting of your rental income and deductions, including casualties and thefts, limitations on losses, and claiming the correct amount of depreciation. Irs form 1040nr Special rental situations are grouped together in chapter 4. Irs form 1040nr These include condominiums, cooperatives, property changed to rental use, renting only part of your property, and a not-for-profit rental activity. Irs form 1040nr Finally, in chapter 5, we will look at the rules for rental income and expenses when there is also personal use of the dwelling unit, such as a vacation home. Irs form 1040nr Sale or exchange of rental property. Irs form 1040nr   For information on how to figure and report any gain or loss from the sale, exchange or other disposition of your rental property, see Publication 544, Sales and Other Dispositions of Assets. Irs form 1040nr Sale of main home used as rental property. Irs form 1040nr   For information on how to figure and report any gain or loss from the sale or other disposition of your main home that you also used as rental property, see Publication 523, Selling Your Home. Irs form 1040nr Tax-free exchange of rental property occasionally used for personal purposes. Irs form 1040nr   If you meet certain qualifying use standards, you may qualify for a tax-free exchange (a like-kind or section 1031 exchange) of one piece of rental property you own for a similar piece of rental property, even if you have used the rental property for personal purposes. Irs form 1040nr   For information on the qualifying use standards, see Rev. Irs form 1040nr Proc. Irs form 1040nr 2008–16, 2008 IRB 547, at http://www. Irs form 1040nr irs. Irs form 1040nr gov/irb/2008-10_IRB/ar12. Irs form 1040nr html . Irs form 1040nr For more information on like-kind exchanges, see chapter 1 of Publication 544. Irs form 1040nr Comments and suggestions. Irs form 1040nr   We welcome your comments about this publication and your suggestions for future editions. Irs form 1040nr   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Irs form 1040nr NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Irs form 1040nr Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs form 1040nr   You can send your comments from www. Irs form 1040nr irs. Irs form 1040nr gov/formspubs/. Irs form 1040nr Click on “More Information” and then on “Comment on Tax Forms and Publications”. Irs form 1040nr   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Irs form 1040nr Ordering forms and publications. Irs form 1040nr   Visit www. Irs form 1040nr irs. Irs form 1040nr gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Irs form 1040nr Internal Revenue Service 1201 N. Irs form 1040nr Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Irs form 1040nr   If you have a tax question, check the information available on IRS. Irs form 1040nr gov or call 1-800-829-1040. Irs form 1040nr We cannot answer tax questions sent to either of the above addresses. Irs form 1040nr Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 523 Selling Your Home 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 551 Basis of Assets 925 Passive Activity and At-Risk Rules 946 How To Depreciate Property Form (and Instructions) 4562 Depreciation and Amortization 5213 Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit 8582 Passive Activity Loss Limitations Schedule E (Form 1040) Supplemental Income and Loss   See chapter 6, How To Get Tax Help for information about getting these publications and forms. Irs form 1040nr Prev  Up  Next   Home   More Online Publications
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Qualifying Advanced Energy Project Credit (section 48C)

What's New

Notice 2013-12 Announces New Allocation Round; $150,228,397 Available

Notice 2013-12, issued February 7, 2013, announced the availability of $150,228,397 in section 48C tax credits in the Phase II allocation round in 2013.  Application procedures are different than in the first allocation round.  The first deadline to be met is April 9, 2013.  See Notice 2013-12 and the updated Frequently Asked Questions, available through the links below.  The Frequently Asked Questions are updated every Monday.

Overview

The Qualifying Advanced Energy Project tax credit is a credit for businesses which establish, expand or re-equip a manufacturing facility for the production of —

  • property designed to be used to produce energy from the sun, wind, geothermal deposits or other renewable resources,
  • fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric motor vehicles,
  • electric grids to support the transmission of intermittent sources of renewable energy, including storage of such energy,
  • property designed to capture and sequester carbon dioxide emissions,
  • property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies),
  • new qualified plug-in electric drive motor vehicles, qualified plug-in electric vehicles, or components which are designed specifically for use with such vehicles, including electric motors, generators, and power control units, or
  • other advanced energy property designed to reduce greenhouse gas emissions.

An example is building a factory to manufacture solar panels.

Because the credit was enacted as section 48C of the Internal Revenue Code (Title 26 of the U.S. Code), it is sometimes referred to as the section 48C (§ 48C) credit.

The credit amount is 30% of qualified investment in selected manufacturing facilities. Taxpayers must apply in advance and have their facilities selected to be eligible for the credit.  The process for applying and being allocated a credit is summarized as follows (details are in Notice 2013-12):

  • The taxpayer applies for the credit.
  • If approved, the IRS sends the taxpayer a letter allocating a credit to the taxpayer’s project.
  • The taxpayer sends the IRS two signed copies of the required agreement (Appendix A of Notice 2013-12).
  • The IRS signs the two copies of the agreement and returns one to the taxpayer.
  • Within 1 year of the date of the allocation letter, the taxpayer sends the IRS a request for certification of its project documenting its progress implementing the project.
  • If the IRS approves it sends the taxpayer a certification letter.
  • Within 3 years of the date of the certification letter, the taxpayer completes its project and notifies the IRS.

General 48C Resources

Section 48C of the Internal Revenue Code 

Phase II Program (2013) Resources

Notice 2013-12 -- how the Phase II program in 2013 works

Frequently Asked Questions – updated every Monday

Webinar on how to apply – an informational webinar on the 48C Phase II Program hosted by the Department of Energy on February 19, 2013.  Scroll down to the 48C section and select the “48C_Webinar” link. 

Phase II Application Portal -- all 2013 applications must be submitted through this site. Select FOA number 48C-0002013 then read the instructions on the next screen.  Click on the “EERE_eXCHANGE_48C_Applicant_User_Guide” link to view or download the user guide.  Click on the “Apply” button to register and begin the application process.”

Fillable template of the agreement required in the Phase II program in 2013

Phase I Program (2009) Resources

Notice 2009-72 – how the Phase I program in 2009 works

Fillable template of the agreement required in the Phase I program in 2009

Contact Us

Please send questions about the program to the IRS by fax at 713-209-3964 or by telephone at 713-209-3669.  Please include both your telephone number and fax number in your message.  Tell us whether you prefer a response by fax or telephone.  We will ensure that we respond to every question we receive by March 26, 2013, in time for you to meet the first deadline on April 9, 2013.  For questions we receive after March 26, 2013, we will do our best to answer as quickly as possible, but we cannot ensure that we will answer them in time for you to meet the April 9 deadline.

Page Last Reviewed or Updated: 21-Feb-2014

The Irs Form 1040nr

Irs form 1040nr 8. Irs form 1040nr   Qualified Tuition Program (QTP) Table of Contents Introduction What Is a Qualified Tuition ProgramDesignated beneficiary. Irs form 1040nr Half-time student. Irs form 1040nr How Much Can You Contribute Are Distributions TaxableFiguring the Taxable Portion of a Distribution Additional Tax on Taxable Distributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Introduction Qualified tuition programs (QTPs) are also called “529 plans. Irs form 1040nr ” States may establish and maintain programs that allow you to either prepay or contribute to an account for paying a student's qualified education expenses at a postsecondary institution. Irs form 1040nr Eligible educational institutions may establish and maintain programs that allow you to prepay a student's qualified education expenses. Irs form 1040nr If you prepay tuition, the student (designated beneficiary) will be entitled to a waiver or a payment of qualified education expenses. Irs form 1040nr You cannot deduct either payments or contributions to a QTP. Irs form 1040nr For information on a specific QTP, you will need to contact the state agency or eligible educational institution that established and maintains it. Irs form 1040nr What is the tax benefit of a QTP. Irs form 1040nr   No tax is due on a distribution from a QTP unless the amount distributed is greater than the beneficiary's adjusted qualified education expenses. Irs form 1040nr See Are Distributions Taxable , later, for more information. Irs form 1040nr    Even if a QTP is used to finance a student's education, the student or the student's parents still may be eligible to claim the American opportunity credit or the lifetime learning credit. Irs form 1040nr See Coordination With American Opportunity and Lifetime Learning Credits, later. Irs form 1040nr What Is a Qualified Tuition Program A qualified tuition program is a program set up to allow you to either prepay, or contribute to an account established for paying, a student's qualified education expenses at an eligible educational institution. Irs form 1040nr QTPs can be established and maintained by states (or agencies or instrumentalities of a state) and eligible educational institutions. Irs form 1040nr The program must meet certain requirements. Irs form 1040nr Your state government or the eligible educational institution in which you are interested can tell you whether or not they participate in a QTP. Irs form 1040nr Qualified education expenses. Irs form 1040nr   These are expenses related to enrollment or attendance at an Eligible educational institution (defined later). Irs form 1040nr As shown in the following list, to be qualified, some of the expenses must be required by the institution and some must be incurred by students who are enrolled at least half-time. Irs form 1040nr See Half-time student , later. Irs form 1040nr The following expenses must be required for enrollment or attendance of a Designated beneficiary (defined later) at an eligible educational institution. Irs form 1040nr Tuition and fees. Irs form 1040nr Books, supplies, and equipment. Irs form 1040nr Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible educational institution. Irs form 1040nr Expenses for room and board must be incurred by students who are enrolled at least half-time. Irs form 1040nr The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. Irs form 1040nr 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. Irs form 1040nr The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Irs form 1040nr You will need to contact the eligible educational institution for qualified room and board costs. Irs form 1040nr    For tax years after 2010, the purchase of computer technology or equipment is only a qualified education expense if the computer technology or equipment is required for enrollment or attendance at an eligible institution. Irs form 1040nr Designated beneficiary. Irs form 1040nr   The designated beneficiary is generally the student (or future student) for whom the QTP is intended to provide benefits. Irs form 1040nr The designated beneficiary can be changed after participation in the QTP begins. Irs form 1040nr If a state or local government or certain tax-exempt organizations purchase an interest in a QTP as part of a scholarship program, the designated beneficiary is the person who receives the interest as a scholarship. Irs form 1040nr Half-time student. Irs form 1040nr   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic workload for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. Irs form 1040nr Eligible educational institution. Irs form 1040nr   For purposes of a QTP, this is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Irs form 1040nr S. Irs form 1040nr Department of Education. Irs form 1040nr It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Irs form 1040nr The educational institution should be able to tell you if it is an eligible educational institution. Irs form 1040nr   Certain educational institutions located outside the United States also participate in the U. Irs form 1040nr S. Irs form 1040nr Department of Education's Federal Student Aid (FSA) programs. Irs form 1040nr   How Much Can You Contribute Contributions to a QTP on behalf of any beneficiary cannot be more than the amount necessary to provide for the qualified education expenses of the beneficiary. Irs form 1040nr There are no income restrictions on the individual contributors. Irs form 1040nr You can contribute to both a QTP and a Coverdell ESA in the same year for the same designated beneficiary. Irs form 1040nr   Are Distributions Taxable The part of a distribution representing the amount paid or contributed to a QTP does not have to be included in income. Irs form 1040nr This is a return of the investment in the plan. Irs form 1040nr The designated beneficiary generally does not have to include in income any earnings distributed from a QTP if the total distribution is less than or equal to adjusted qualified education expenses (defined under Figuring the Taxable Portion of a Distribution , later). Irs form 1040nr Earnings and return of investment. Irs form 1040nr    You will receive a Form 1099-Q, from each of the programs from which you received a QTP distribution in 2013. Irs form 1040nr The amount of your gross distribution (box 1) shown on each form will be divided between your earnings (box 2) and your basis, or return of investment (box 3). Irs form 1040nr Form 1099-Q should be sent to you by January 31, 2014. Irs form 1040nr Figuring the Taxable Portion of a Distribution To determine if total distributions for the year are more or less than the amount of qualified education expenses, you must compare the total of all QTP distributions for the tax year to the adjusted qualified education expenses. Irs form 1040nr Adjusted qualified education expenses. Irs form 1040nr   This amount is the total qualified education expenses reduced by any tax-free educational assistance. Irs form 1040nr Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Irs form 1040nr Taxable earnings. Irs form 1040nr   Use the following steps to figure the taxable part. Irs form 1040nr Multiply the total distributed earnings shown in box 2 of Form 1099-Q by a fraction. Irs form 1040nr The numerator is the adjusted qualified education expenses paid during the year and the denominator is the total amount distributed during the year. Irs form 1040nr Subtract the amount figured in (1) from the total distributed earnings. Irs form 1040nr The result is the amount the beneficiary must include in income. Irs form 1040nr Report it on Form 1040 or Form 1040NR, line 21. Irs form 1040nr Example 1. Irs form 1040nr In 2007, Sara Clarke's parents opened a savings account for her with a QTP maintained by their state government. Irs form 1040nr Over the years they contributed $18,000 to the account. Irs form 1040nr The total balance in the account was $27,000 on the date the distribution was made. Irs form 1040nr In the summer of 2013, Sara enrolled in college and had $8,300 of qualified education expenses for the rest of the year. Irs form 1040nr She paid her college expenses from the following sources. Irs form 1040nr   Gift from parents $1,600     Partial tuition scholarship (tax-free) 3,100     QTP distribution 5,300           Before Sara can determine the taxable part of her QTP distribution, she must reduce her total qualified education expenses by any tax-free educational assistance. Irs form 1040nr   Total qualified education expenses $8,300     Minus: Tax-free educational assistance −3,100     Equals: Adjusted qualified  education expenses (AQEE) $5,200   Since the remaining expenses ($5,200) are less than the QTP distribution, part of the earnings will be taxable. Irs form 1040nr Sara's Form 1099-Q shows that $950 of the QTP distribution is earnings. Irs form 1040nr Sara figures the taxable part of the distributed earnings as follows. Irs form 1040nr   1. Irs form 1040nr $950 (earnings) × $5,200 AQEE  $5,300 distribution           =$932 (tax-free earnings)     2. Irs form 1040nr $950 (earnings)−$932 (tax-free earnings)     =$18 (taxable earnings)  Sara must include $18 in income (Form 1040, line 21) as distributed QTP earnings not used for adjusted qualified education expenses. Irs form 1040nr Coordination With American Opportunity and Lifetime Learning Credits An American opportunity or lifetime learning credit (education credit) can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. Irs form 1040nr This means that after the beneficiary reduces qualified education expenses by tax-free educational assistance, he or she must further reduce them by the expenses taken into account in determining the credit. Irs form 1040nr Example 2. Irs form 1040nr Assume the same facts as in Example 1 , except that Sara's parents claimed an American opportunity credit of $2,500 (based on $4,000 expenses). Irs form 1040nr   Total qualified education expenses $8,300     Minus: Tax-free educational assistance −3,100     Minus: Expenses taken into account  in figuring American opportunity credit −4,000     Equals: Adjusted qualified  education expenses (AQEE) $1,200           The taxable part of the distribution is figured as follows. Irs form 1040nr   1. Irs form 1040nr $950 (earnings) × $1,200 AQEE  $5,300 distribution           =$215 (tax-free earnings)     2. Irs form 1040nr $950 (earnings)−$215 (tax-free earnings)     =$735 (taxable earnings)       Sara must include $735 in income (Form 1040, line 21). Irs form 1040nr This represents distributed earnings not used for adjusted qualified education expenses. Irs form 1040nr Coordination With Coverdell ESA Distributions If a designated beneficiary receives distributions from both a QTP and a Coverdell ESA in the same year, and the total of these distributions is more than the beneficiary's adjusted qualified higher education expenses, the expenses must be allocated between the distributions. Irs form 1040nr For purposes of this allocation, disregard any qualified elementary and secondary education expenses. Irs form 1040nr Example 3. Irs form 1040nr Assume the same facts as in Example 2 , except that instead of receiving a $5,300 distribution from her QTP, Sara received $4,600 from that account and $700 from her Coverdell ESA. Irs form 1040nr In this case, Sara must allocate her $1,200 of adjusted qualified higher education expenses (AQHEE) between the two distributions. Irs form 1040nr   $1,200 AQHEE × $700 ESA distribution  $5,300 total distribution = $158 AQHEE (ESA)     $1,200 AQHEE × $4,600 QTP distribution  $5,300 total distribution = $1,042 AQHEE (QTP)   Sara then figures the taxable portion of her Coverdell ESA distribution based on qualified higher education expenses of $158, and the taxable portion of her QTP distribution based on the other $1,042. Irs form 1040nr Note. Irs form 1040nr If you are required to allocate your expenses between Coverdell ESA and QTP distributions, and you have adjusted qualified elementary and secondary education expenses, see the examples in chapter 7, Coverdell Education Savings Account under Coordination With Qualified Tuition Program (QTP) Distributions . Irs form 1040nr Coordination With Tuition and Fees Deduction. Irs form 1040nr   A tuition and fees deduction can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as the same expenses are not used for both benefits. Irs form 1040nr Losses on QTP Investments If you have a loss on your investment in a QTP account, you may be able to take the loss on your income tax return. Irs form 1040nr You can take the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. Irs form 1040nr Your basis is the total amount of contributions to that QTP account. Irs form 1040nr You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23 (Schedule A (Form 1040NR), line 9), subject to the 2%-of-adjusted-gross-income limit. Irs form 1040nr If you have distributions from more than one QTP account during a year, you must combine the information (amount of distribution, basis, etc. Irs form 1040nr ) from all such accounts in order to determine your taxable earnings for the year. Irs form 1040nr By doing this, the loss from one QTP account reduces the distributed earnings (if any) from any other QTP accounts. Irs form 1040nr Example 1. Irs form 1040nr In 2013, Taylor received a final distribution of $1,000 from QTP #1. Irs form 1040nr His unrecovered basis in that account before the distribution was $3,000. Irs form 1040nr If Taylor itemizes his deductions, he can claim the $2,000 loss on Schedule A (Form 1040). Irs form 1040nr Example 2. Irs form 1040nr Assume the same facts as in Example 1 , except that Taylor also had a distribution of $9,000 from QTP #2, giving him total distributions for 2013 of $10,000. Irs form 1040nr His total basis in these distributions was $4,500 ($3,000 for QTP #1 and $1,500 for QTP #2). Irs form 1040nr Taylor's adjusted qualified education expenses for 2013 totaled $6,000. Irs form 1040nr In order to figure his taxable earnings, Taylor combines the two accounts and determines his taxable earnings as follows. Irs form 1040nr   1. Irs form 1040nr $10,000 (total distribution)−$4,500 (basis portion of distribution)     = $5,500 (earnings included in distribution)   2. Irs form 1040nr $5,500 (earnings) x $6,000 AQEE  $10,000 distribution           =$3,300 (tax-free earnings)     3. Irs form 1040nr $5,500 (earnings)−$3,300 (tax-free earnings)     =$2,200 (taxable earnings)                 Taylor must include $2,200 in income on Form 1040, line 21. Irs form 1040nr Because Taylor's accounts must be combined, he cannot deduct his $2,000 loss (QTP #1) on Schedule A (Form 1040). Irs form 1040nr Instead, the $2,000 loss reduces the total earnings that were distributed, thereby reducing his taxable earnings. Irs form 1040nr Additional Tax on Taxable Distributions Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income. Irs form 1040nr Exceptions. Irs form 1040nr   The 10% additional tax does not apply to distributions: Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary. Irs form 1040nr Made because the designated beneficiary is disabled. Irs form 1040nr A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. Irs form 1040nr A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration. Irs form 1040nr Included in income because the designated beneficiary received: A tax-free scholarship or fellowship (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), or Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Irs form 1040nr Made on account of the attendance of the designated beneficiary at a U. Irs form 1040nr S. Irs form 1040nr military academy (such as the USNA at Annapolis). Irs form 1040nr This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(d)(3) of title 10 of the U. Irs form 1040nr S. Irs form 1040nr Code) attributable to such attendance. Irs form 1040nr Included in income only because the qualified education expenses were taken into account in determining the American opportunity or lifetime learning credit (see Coordination With American Opportunity and Lifetime Learning Credits , earlier. Irs form 1040nr ) Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. Irs form 1040nr Figuring the additional tax. Irs form 1040nr    Use Part II of Form 5329, to figure any additional tax. Irs form 1040nr Report the amount on Form 1040, line 58, or Form 1040NR, line 56. Irs form 1040nr Rollovers and Other Transfers Assets can be rolled over or transferred from one QTP to another. Irs form 1040nr In addition, the designated beneficiary can be changed without transferring accounts. Irs form 1040nr Rollovers Any amount distributed from a QTP is not taxable if it is rolled over to another QTP for the benefit of the same beneficiary or for the benefit of a member of the beneficiary's family (including the beneficiary's spouse). Irs form 1040nr An amount is rolled over if it is paid to another QTP within 60 days after the date of the distribution. Irs form 1040nr Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. Irs form 1040nr These are not taxable distributions. Irs form 1040nr Members of the beneficiary's family. Irs form 1040nr   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. Irs form 1040nr Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. Irs form 1040nr Brother, sister, stepbrother, or stepsister. Irs form 1040nr Father or mother or ancestor of either. Irs form 1040nr Stepfather or stepmother. Irs form 1040nr Son or daughter of a brother or sister. Irs form 1040nr Brother or sister of father or mother. Irs form 1040nr Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Irs form 1040nr The spouse of any individual listed above. Irs form 1040nr First cousin. Irs form 1040nr Example. Irs form 1040nr When Aaron graduated from college last year he had $5,000 left in his QTP. Irs form 1040nr He wanted to give this money to his younger brother, who was in junior high school. Irs form 1040nr In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his brother's QTP within 60 days of the distribution. Irs form 1040nr If the rollover is to another QTP for the same beneficiary, only one rollover is allowed within 12 months of a previous transfer to any QTP for that designated beneficiary. Irs form 1040nr Changing the Designated Beneficiary There are no income tax consequences if the designated beneficiary of an account is changed to a member of the beneficiary's family. Irs form 1040nr See Members of the beneficiary's family , earlier. Irs form 1040nr Example. Irs form 1040nr Assume the same situation as in the last example. Irs form 1040nr Instead of closing his QTP and paying the distribution into his brother's QTP, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his brother. Irs form 1040nr Prev  Up  Next   Home   More Online Publications