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Military Tax Returns

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Military Tax Returns

Military tax returns 6. Military tax returns   Tuition and Fees Deduction Table of Contents IntroductionWhat is the tax benefit of the tuition and fees deduction. Military tax returns Can You Claim the DeductionWho Can Claim the Deduction Who Cannot Claim the Deduction What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses Figuring the DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Claiming the Deduction Illustrated Example Introduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). Military tax returns You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. Military tax returns The qualified expenses must be for higher education, as explained later under Qualified Education Expenses . Military tax returns What is the tax benefit of the tuition and fees deduction. Military tax returns   The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Military tax returns   This deduction is taken as an adjustment to income. Military tax returns This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). Military tax returns This deduction may be beneficial to you if you do not qualify for the American opportunity or lifetime learning credits. Military tax returns You can choose the education benefit that will give you the lowest tax. Military tax returns You may want to compare the tuition and fees deduction to the education credits. Military tax returns See chapter 2, American Opportunity Credit and chapter 3, Lifetime Learning Credit for more information on the education credits. Military tax returns Table 6-1. Military tax returns Tuition and Fees Deduction at a Glance summarizes the features of the tuition and fees deduction. Military tax returns Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Military tax returns Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Military tax returns You pay qualified education expenses of higher education. Military tax returns You pay the education expenses for an eligible student. Military tax returns The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return. Military tax returns The term “qualified education expenses” is defined later under Qualified Education Expenses . Military tax returns “Eligible student” is defined later under Who Is an Eligible Student . Military tax returns For more information on claiming the deduction for a dependent, see Who Can Claim a Dependent's Expenses , later. Military tax returns Table 6-1. Military tax returns Tuition and Fees Deduction at a Glance Do not rely on this table alone. Military tax returns Refer to the text for complete details. Military tax returns Question Answer What is the maximum benefit? You can reduce your income subject to tax by up to $4,000. Military tax returns What is the limit on modified adjusted gross income (MAGI)? $160,000 if married filing a joint return; $80,000 if single, head of household, or qualifying widow(er). Military tax returns Where is the deduction taken? As an adjustment to income on  Form 1040 or Form 1040A. Military tax returns For whom must the expenses be paid? A student enrolled in an eligible educational institution who is either: •you,  •your spouse, or  •your dependent for whom you claim an exemption. Military tax returns What tuition and fees are deductible? Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. Military tax returns Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Military tax returns Your filing status is married filing separately. Military tax returns Another person can claim an exemption for you as a dependent on his or her tax return. Military tax returns You cannot take the deduction even if the other person does not actually claim that exemption. Military tax returns Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Military tax returns You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. Military tax returns More information on nonresident aliens can be found in Publication 519. Military tax returns What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Military tax returns Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period beginning in 2013 or in the first 3 months of 2014. Military tax returns For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 deduction. Military tax returns Academic period. Military tax returns   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. Military tax returns 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. Military tax returns Paid with borrowed funds. Military tax returns   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Military tax returns Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Military tax returns Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. Military tax returns Student withdraws from class(es). Military tax returns   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Military tax returns Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Military tax returns Eligible educational institution. Military tax returns   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. Military tax returns S. Military tax returns Department of Education. Military tax returns It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Military tax returns The educational institution should be able to tell you if it is an eligible educational institution. Military tax returns   Certain educational institutions located outside the United States also participate in the U. Military tax returns S. Military tax returns Department of Education's Federal Student Aid (FSA) programs. Military tax returns Related expenses. Military tax returns   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Military tax returns Prepaid expenses. Military tax returns   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. Military tax returns See Academic period , earlier. Military tax returns For example, you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). Military tax returns You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). Military tax returns In the following examples, assume that each student is an eligible student and each college or university an eligible educational institution. Military tax returns Example 1. Military tax returns Jackson is a sophomore in University V's degree program in dentistry. Military tax returns This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. Military tax returns Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified education expense. Military tax returns Example 2. Military tax returns Donna and Charles, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. Military tax returns The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. Military tax returns Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Military tax returns Donna bought hers at College W's bookstore. Military tax returns Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified education expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. Military tax returns Example 3. Military tax returns When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Military tax returns This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and the student government. Military tax returns No portion of the fee covers personal expenses. Military tax returns Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. Military tax returns Therefore, it is a qualified expense. Military tax returns No Double Benefit Allowed You cannot do any of the following. Military tax returns Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Military tax returns Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. Military tax returns Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Military tax returns For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Military tax returns See Coordination With Tuition and Fees Deduction in chapter 8, Qualified Tuition Program, later. Military tax returns Deduct qualified education expenses that have been paid with tax-free interest on U. Military tax returns S. Military tax returns savings bonds (Form 8815). Military tax returns See Figuring the Tax-Free Amount in chapter 10, Education Savings Bond Program, later. Military tax returns Deduct qualified education expenses that have been paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Military tax returns See the following section on Adjustments to Qualified Education Expenses. Military tax returns Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Military tax returns The result is the amount of adjusted qualified education expenses for each student. Military tax returns You must also reduce qualified education expenses by the other amounts referred to in No Double Benefit Allowed , earlier. Military tax returns Tax-free educational assistance. Military tax returns   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. Military tax returns See Academic period , earlier. Military tax returns   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Military tax returns This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). Military tax returns   If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed , later. Military tax returns If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed , later. Military tax returns   This tax-free education 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), 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 ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Military tax returns Generally, any scholarship or fellowship is treated as tax free. Military tax returns However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. Military tax returns The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Military tax returns The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Military tax returns You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. Military tax returns For details, see Adjustments to Qualified Education Expenses in chapters 2 and 3. Military tax returns Refunds. Military tax returns   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. Military tax returns Some tax-free educational assistance received after 2013 may be treated as a refund. Military tax returns See Tax-free educational assistance , earlier. Military tax returns Refunds received in 2013. Military tax returns   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Military tax returns Refunds received after 2013 but before your income tax return is filed. Military tax returns   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. Military tax returns Refunds received after 2013 and after your income tax return is filed. Military tax returns   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. Military tax returns See Credit recapture , later. Military tax returns Coordination with Coverdell education savings accounts and qualified tuition programs. Military tax returns   Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). Military tax returns For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Military tax returns Credit recapture. Military tax returns    If any tax-free educational assistance for the qualified education expenses paid in 2013 or any refund of your qualified education expenses paid in 2013 is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. Military tax returns You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing that amount by the amount of the refund or tax-free educational assistance. Military tax returns You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you had claimed the refigured credit(s). Military tax returns Include that amount as an additional tax for the year the refund or tax-free assistance was received. Military tax returns Example. Military tax returns   You paid $3,500 of qualified education expenses in December 2013, and your child began college in January 2014. Military tax returns You claimed $3,500 as the tuition and fees deduction on your 2013 income tax return. Military tax returns The reduction reduced your taxable income by $3,500. Military tax returns Also, you claimed no tax credits in 2013. Military tax returns Your child withdrew from two classes and you received a refund of $2,000 in 2014 after you filed your 2013 tax return. Military tax returns Refigure your 2013 tuition and fees deduction using $1,500 of qualified education expense instead of the $3,500. Military tax returns The refigured tuition and fees deduction is $1,500. Military tax returns Do not file an amended 2013 tax return to account for this adjustment. Military tax returns Instead, include the difference of $2,000 (but only to the extent this difference would have increased your 2013 tax) on the “Other income” line of your 2014 Form 1040. Military tax returns You cannot file Form 1040A for 2014. Military tax returns Amounts that do not reduce qualified education expenses. Military tax returns   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Military tax returns   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. Military tax returns The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Restrictions. Military tax returns The use of the money is not restricted. Military tax returns Example 1. Military tax returns In 2013, Jackie paid $3,000 for tuition and $5,000 for room and board at University X. Military tax returns The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. Military tax returns To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. Military tax returns The terms of the scholarship state that it can be used to pay any of Jackie's college expenses. Military tax returns University X applies the $2,000 scholarship against Jackie's $8,000 total bill, and Jackie pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. Military tax returns Jackie does not report any portion of the scholarship as income on her tax return. Military tax returns In figuring the tuition and fees deduction, Jackie must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. Military tax returns The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. Military tax returns Jackie is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship) in 2013. Military tax returns Example 2. Military tax returns The facts are the same as in Example 1, except that Jackie reports her entire scholarship as income on her tax return. Military tax returns Because Jackie reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. Military tax returns Jackie is treated as having paid $3,000 in qualified education expenses. Military tax returns Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. Military tax returns This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Military tax returns Sports, games, hobbies, and noncredit courses. Military tax returns   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. Military tax returns However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Military tax returns Comprehensive or bundled fees. Military tax returns   Some eligible educational institutions combine all of their fees for an academic period into one amount. Military tax returns If you do not receive, or do not have access to, an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. Military tax returns The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T. Military tax returns See Figuring the Deduction , later, for more information about Form 1098-T. Military tax returns Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). Military tax returns Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. Military tax returns For you to be able to deduct qualified education expenses for your dependent, you must claim an exemption for that individual. Military tax returns You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Military tax returns IF your dependent is an eligible student and you. Military tax returns . Military tax returns . Military tax returns AND. Military tax returns . Military tax returns . Military tax returns THEN. Military tax returns . Military tax returns . Military tax returns claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. Military tax returns Your dependent cannot take a deduction. Military tax returns claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Military tax returns do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Military tax returns do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Military tax returns Expenses paid by dependent. Military tax returns   If your dependent pays qualified education expenses, no one can take a tuition and fees deduction for those expenses. Military tax returns Neither you nor your dependent can deduct the expenses. Military tax returns For purposes of the tuition and fees deduction, you are not treated as paying any expenses actually paid by a dependent for whom you or anyone other than the dependent can claim an exemption. Military tax returns This rule applies even if you do not claim an exemption for your dependent on your tax return. Military tax returns Expenses paid by you. Military tax returns   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring your tuition and fees deduction. Military tax returns Expenses paid under divorce decree. Military tax returns   Qualified education expenses paid directly to an eligible educational institution for a student under a court-approved divorce decree are treated as paid by the student. Military tax returns Only the student would be eligible to take a tuition and fees deduction for that payment, and then only if no one else could claim an exemption for the student. Military tax returns Expenses paid by others. Military tax returns   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. Military tax returns In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Military tax returns If you claim, or can claim, an exemption on your tax return for the student, you are not considered to have paid the expenses and you cannot deduct them. Military tax returns If the student is not a dependent, only the student can deduct payments made directly to the institution for his or her expenses. Military tax returns If the student is your dependent, no one can deduct the payments. Military tax returns Example. Military tax returns In 2013, Ms. Military tax returns Baker makes a payment directly to an eligible educational institution for her grandson Dan's qualified education expenses. Military tax returns For purposes of deducting tuition and fees, Dan is treated as receiving the money from his grandmother and, in turn, paying his own qualified education expenses. Military tax returns If an exemption cannot be claimed for Dan on anyone else's tax return, only Dan can claim a tuition and fees deduction for his grandmother's payment. Military tax returns If someone else can claim an exemption for Dan, no one will be allowed a deduction for Ms. Military tax returns Baker's payment. Military tax returns Tuition reduction. Military tax returns   When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. Military tax returns If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. Military tax returns For more information on tuition reductions, see Qualified Tuition Reduction , in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Military tax returns Figuring the Deduction The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. Military tax returns See Effect of the Amount of Your Income on the Amount of Your Deduction , later. Military tax returns Form 1098-T. Military tax returns   To help you figure your tuition and fees deduction, the student should receive Form 1098-T (see Appendix A for a completed example of Form 1098-T). Military tax returns Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. Military tax returns An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Military tax returns However, the amount in boxes 1 and 2 of Form 1098-T might be different than what you paid. Military tax returns When figuring the deduction, use only the amounts you paid in 2013 for qualified education expenses. Military tax returns   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. Military tax returns    The eligible educational institution may ask for a completed Form W-9S or similar statement to obtain the student's name, address, and taxpayer identification number. Military tax returns Effect of the Amount of Your Income on the Amount of Your Deduction If your MAGI is not more than $65,000 ($130,000 if you are married filing jointly), your maximum tuition and fees deduction is $4,000. Military tax returns If your MAGI is larger than $65,000 ($130,000 if you are married filing jointly), but is not more than $80,000 ($160,000 if you are married filing jointly), your maximum deduction is $2,000. Military tax returns No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000 if you are married filing jointly). Military tax returns Modified adjusted gross income (MAGI). Military tax returns   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for tuition and fees. Military tax returns However, as discussed below, there may be other modifications. Military tax returns MAGI when using Form 1040A. Military tax returns   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 19 (tuition and fees deduction). Military tax returns MAGI when using Form 1040. Military tax returns   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 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. Military tax returns   Table 6-2 shows how the amount of your MAGI can affect your tuition and fees deduction. Military tax returns   You can use Worksheet 6-1. Military tax returns MAGI for the Tuition and Fees Deduction , later, to figure your MAGI. Military tax returns Table 6-2. Military tax returns Effect of MAGI on Maximum Tuition and Fees Deduction IF your filing status is. Military tax returns . Military tax returns . Military tax returns AND your MAGI is. Military tax returns . Military tax returns . Military tax returns THEN your maximum tuition and fees deduction is. Military tax returns . Military tax returns . Military tax returns single,  head of household, or qualifying widow(er) not more than $65,000 $4,000. Military tax returns more than $65,000  but not more than $80,000 $2,000. Military tax returns more than $80,000 $0. Military tax returns married filing joint return not more than $130,000 $4,000. Military tax returns more than $130,000 but not more than $160,000 $2,000. Military tax returns more than $160,000 $0. Military tax returns Claiming the Deduction You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A. Military tax returns Enter the deduction on Form 1040, line 34, or Form 1040A, line 19. Military tax returns A filled-in Form 8917 is shown at the end of this chapter. Military tax returns Illustrated Example Tim Pfister, a single taxpayer, enrolled full-time at a local college to earn a degree in engineering. Military tax returns This is the first year of his postsecondary education. Military tax returns During 2013, he paid $3,600 for his qualified 2013 tuition expense. Military tax returns Both he and the college meet all of the requirements for the tuition and fees deduction. Military tax returns Tim's total income (Form 1040, line 22) and MAGI are $26,000. Military tax returns He figures his deduction of $3,600 as shown on Form 8917, later. Military tax returns Worksheet 6-1. Military tax returns MAGI for the Tuition and Fees Deduction Use this worksheet if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. Military tax returns Before using this worksheet, you must complete Form 1040, lines 7 through 33, and figure any amount to be entered on the dotted line next to line 36. Military tax returns 1. Military tax returns Enter the amount from Form 1040, line 22   1. Military tax returns         2. Military tax returns Enter the total from Form 1040, lines 23 through 33   2. Military tax returns               3. Military tax returns Enter the total of any amounts entered on the dotted line next to Form 1040, line 36   3. Military tax returns               4. Military tax returns Add lines 2 and 3   4. Military tax returns         5. Military tax returns Subtract line 4 from line 1   5. Military tax returns         6. Military tax returns Enter your foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   6. Military tax returns         7. Military tax returns Enter your foreign housing deduction (Form 2555, line 50)   7. Military tax returns         8. Military tax returns Enter the amount of income from Puerto Rico you are excluding   8. Military tax returns         9. Military tax returns Enter the amount of income from American Samoa you are  excluding (Form 4563, line 15)   9. Military tax returns         10. Military tax returns Add lines 5 through 9. Military tax returns This is your modified adjusted gross income   10. Military tax returns     Note. Military tax returns If the amount on line 10 is more than $80,000 ($160,000 if married filing jointly),  you cannot take the deduction for tuition and fees. Military tax returns       This image is too large to be displayed in the current screen. Military tax returns Please click the link to view the image. Military tax returns Form 8917 for Tim Pfister Prev  Up  Next   Home   More Online Publications
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The Military Tax Returns

Military tax returns 2. Military tax returns   Entertainment Table of Contents Directly-Related Test Associated TestMeetings at conventions. Military tax returns 50% LimitExceptions to the 50% Limit What Entertainment Expenses Are Deductible?A meal as a form of entertainment. Military tax returns Deduction may depend on your type of business. Military tax returns Exception for events that benefit charitable organizations. Military tax returns Food and beverages in skybox seats. Military tax returns What Entertainment Expenses Are Not Deductible?Out-of-pocket expenses. Military tax returns You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. Military tax returns The rules and definitions are summarized in Table 2-1 . Military tax returns You can deduct entertainment expenses only if they are both ordinary and necessary and meet one of the following tests. Military tax returns Directly-related test. Military tax returns Associated test. Military tax returns Both of these tests are explained later. Military tax returns An ordinary expense is one that is common and accepted in your trade or business. Military tax returns A necessary expense is one that is helpful and appropriate for your business. Military tax returns An expense does not have to be required to be considered necessary. Military tax returns The amount you can deduct for entertainment expenses may be limited. Military tax returns Generally, you can deduct only 50% of your unreimbursed entertainment expenses. Military tax returns This limit is discussed later under 50% Limit. Military tax returns Directly-Related Test To meet the directly-related test for entertainment expenses (including entertainment-related meals), you must show that: The main purpose of the combined business and entertainment was the active conduct of business, You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit at some future time. Military tax returns Business is generally not considered to be the main purpose when business and entertainment are combined on hunting or fishing trips, or on yachts or other pleasure boats. Military tax returns Even if you show that business was the main purpose, you generally cannot deduct the expenses for the use of an entertainment facility. Military tax returns See Entertainment facilities under What Entertainment Expenses Are Not Deductible? later in this chapter. Military tax returns You must consider all the facts, including the nature of the business transacted and the reasons for conducting business during the entertainment. Military tax returns It is not necessary to devote more time to business than to entertainment. Military tax returns However, if the business discussion is only incidental to the entertainment, the entertainment expenses do not meet the directly-related test. Military tax returns Table 2-1. Military tax returns When Are Entertainment Expenses Deductible? General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Military tax returns Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. Military tax returns An ordinary expense is one that is common and accepted in your trade or business. Military tax returns A necessary expense is one that is helpful and appropriate. Military tax returns Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. Military tax returns   Associated test Entertainment is associated with your trade or business, and Entertainment is directly before or after a substantial business discussion. Military tax returns Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. Military tax returns You cannot deduct expenses that are lavish or extravagant under the circumstances. Military tax returns You generally can deduct only 50% of your unreimbursed entertainment expenses (see 50% Limit ). Military tax returns You do not have to show that business income or other business benefit actually resulted from each entertainment expense. Military tax returns Clear business setting. Military tax returns   If the entertainment takes place in a clear business setting and is for your business or work, the expenses are considered directly related to your business or work. Military tax returns The following situations are examples of entertainment in a clear business setting. Military tax returns Entertainment in a hospitality room at a convention where business goodwill is created through the display or discussion of business products. Military tax returns Entertainment that is mainly a price rebate on the sale of your products (such as a restaurant owner providing an occasional free meal to a loyal customer). Military tax returns Entertainment of a clear business nature occurring under circumstances where there is no meaningful personal or social relationship between you and the persons entertained. Military tax returns An example is entertainment of business and civic leaders at the opening of a new hotel or play when the purpose is to get business publicity rather than to create or maintain the goodwill of the persons entertained. Military tax returns Expenses not considered directly related. Military tax returns   Entertainment expenses generally are not considered directly related if you are not there or in situations where there are substantial distractions that generally prevent you from actively conducting business. Military tax returns The following are examples of situations where there are substantial distractions. Military tax returns A meeting or discussion at a nightclub, theater, or sporting event. Military tax returns A meeting or discussion during what is essentially a social gathering, such as a cocktail party. Military tax returns A meeting with a group that includes persons who are not business associates at places such as cocktail lounges, country clubs, golf clubs, athletic clubs, or vacation resorts. Military tax returns Associated Test Even if your expenses do not meet the directly-related test, they may meet the associated test. Military tax returns To meet the associated test for entertainment expenses (including entertainment-related meals), you must show that the entertainment is: Associated with the active conduct of your trade or business, and Directly before or after a substantial business discussion (defined later). Military tax returns Associated with trade or business. Military tax returns   Generally, an expense is associated with the active conduct of your trade or business if you can show that you had a clear business purpose for having the expense. Military tax returns The purpose may be to get new business or to encourage the continuation of an existing business relationship. Military tax returns Substantial business discussion. Military tax returns   Whether a business discussion is substantial depends on the facts of each case. Military tax returns A business discussion will not be considered substantial unless you can show that you actively engaged in the discussion, meeting, negotiation, or other business transaction to get income or some other specific business benefit. Military tax returns   The meeting does not have to be for any specified length of time, but you must show that the business discussion was substantial in relation to the meal or entertainment. Military tax returns It is not necessary that you devote more time to business than to entertainment. Military tax returns You do not have to discuss business during the meal or entertainment. Military tax returns Meetings at conventions. Military tax returns   You are considered to have a substantial business discussion if you attend meetings at a convention or similar event, or at a trade or business meeting sponsored and conducted by a business or professional organization. Military tax returns However, your reason for attending the convention or meeting must be to further your trade or business. Military tax returns The organization that sponsors the convention or meeting must schedule a program of business activities that is the main activity of the convention or meeting. Military tax returns Directly before or after business discussion. Military tax returns   If the entertainment is held on the same day as the business discussion, it is considered to be held directly before or after the business discussion. Military tax returns   If the entertainment and the business discussion are not held on the same day, you must consider the facts of each case to see if the associated test is met. Military tax returns Among the facts to consider are the place, date, and duration of the business discussion. Military tax returns If you or your business associates are from out of town, you must also consider the dates of arrival and departure, and the reasons the entertainment and the discussion did not take place on the same day. Military tax returns Example. Military tax returns A group of business associates comes from out of town to your place of business to hold a substantial business discussion. Military tax returns If you entertain those business guests on the evening before the business discussion, or on the evening of the day following the business discussion, the entertainment generally is considered to be held directly before or after the discussion. Military tax returns The expense meets the associated test. Military tax returns 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. Military tax returns (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. Military tax returns See Individuals subject to “hours of service” limits , later. Military tax returns ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. Military tax returns Figure A summarizes the general rules explained in this section. Military tax returns The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. Military tax returns Included expenses. Military tax returns   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. Military tax returns However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. Military tax returns Figure A. Military tax returns Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. Military tax returns See Exceptions to the 50% Limit . Military tax returns Please click here for the text description of the image. Military tax returns Figure A. Military tax returns Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions Application of 50% limit. Military tax returns   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later. Military tax returns   The 50% limit also applies to certain meal and entertainment expenses that are not business related. Military tax returns It applies to meal and entertainment expenses you have for the production of income, including rental or royalty income. Military tax returns It also applies to the cost of meals included in deductible educational expenses. Military tax returns When to apply the 50% limit. Military tax returns   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. Military tax returns You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this publication. Military tax returns Example 1. Military tax returns You spend $200 for a business-related meal. Military tax returns If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Military tax returns Your deduction cannot be more than $45 (50% × $90). Military tax returns Example 2. Military tax returns You purchase two tickets to a concert and give them to a client. Military tax returns You purchased the tickets through a ticket agent. Military tax returns You paid $200 for the two tickets, which had a face value of $80 each ($160 total). Military tax returns Your deduction cannot be more than $80 (50% × $160). Military tax returns Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. Military tax returns Figure A can help you determine if the 50% limit applies to you. Military tax returns Expenses not subject to 50% limit. Military tax returns   Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. Military tax returns 1 - Employee's reimbursed expenses. Military tax returns   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. Military tax returns Accountable plans are discussed in chapter 6. Military tax returns 2 - Self-employed. Military tax returns   If you are self-employed, your deductible meal and entertainment expenses are not subject to the 50% limit if all of the following requirements are met. Military tax returns You have these expenses as an independent contractor. Military tax returns Your customer or client reimburses you or gives you an allowance for these expenses in connection with services you perform. Military tax returns You provide adequate records of these expenses to your customer or client. Military tax returns (See chapter 5 . Military tax returns )   In this case, your client or customer is subject to the 50% limit on the expenses. Military tax returns Example. Military tax returns You are a self-employed attorney who adequately accounts for meal and entertainment expenses to a client who reimburses you for these expenses. Military tax returns You are not subject to the directly-related or associated test, nor are you subject to the 50% limit. Military tax returns If the client can deduct the expenses, the client is subject to the 50% limit. Military tax returns If you (as an independent contractor) have expenses for meals and entertainment related to providing services for a client but do not adequately account for and seek reimbursement from the client for those expenses, you are subject to the directly-related or associated test and to the 50% limit. Military tax returns 3 - Advertising expenses. Military tax returns   You are not subject to the 50% limit if you provide meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. Military tax returns For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit. Military tax returns 4 - Sale of meals or entertainment. Military tax returns   You are not subject to the 50% limit if you actually sell meals, entertainment, goods and services, or use of facilities to the public. Military tax returns For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is not subject to the 50% limit. Military tax returns 5 - Charitable sports event. Military tax returns   You are not subject to the 50% limit if you pay for a package deal that includes a ticket to a qualified charitable sports event. Military tax returns For the conditions the sports event must meet, see Exception for events that benefit charitable organizations under What Entertainment Expenses Are Deductible?, later. Military tax returns Individuals subject to “hours of service” limits. Military tax returns   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. Military tax returns The percentage is 80%. Military tax returns   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. Military tax returns Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Military tax returns Interstate truck operators and bus drivers who are under Department of Transportation regulations. Military tax returns Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Military tax returns Certain merchant mariners who are under Coast Guard regulations. Military tax returns What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. Military tax returns Entertainment. Military tax returns   Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Military tax returns Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips. Military tax returns   Entertainment also may include meeting personal, living, or family needs of individuals, such as providing meals, a hotel suite, or a car to customers or their families. Military tax returns A meal as a form of entertainment. Military tax returns   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. Military tax returns A meal expense includes the cost of food, beverages, taxes, and tips for the meal. Military tax returns To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. Military tax returns    You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. Military tax returns    Meals sold in the normal course of your business are not considered entertainment. Military tax returns Deduction may depend on your type of business. Military tax returns   Your kind of business may determine if a particular activity is considered entertainment. Military tax returns For example, if you are a dress designer and have a fashion show to introduce your new designs to store buyers, the show generally is not considered entertainment. Military tax returns This is because fashion shows are typical in your business. Military tax returns But, if you are an appliance distributor and hold a fashion show for the spouses of your retailers, the show generally is considered entertainment. Military tax returns Separating costs. Military tax returns   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. Military tax returns You must have a reasonable basis for making this allocation. Military tax returns For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. Military tax returns Taking turns paying for meals or entertainment. Military tax returns   If a group of business acquaintances takes turns picking up each others' meal or entertainment checks primarily for personal reasons, without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. Military tax returns Lavish or extravagant expenses. Military tax returns   You cannot deduct expenses for entertainment that are lavish or extravagant. Military tax returns An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. Military tax returns Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Military tax returns Allocating between business and nonbusiness. Military tax returns   If you entertain business and nonbusiness individuals at the same event, you must divide your entertainment expenses between business and nonbusiness. Military tax returns You can deduct only the business part. Military tax returns If you cannot establish the part of the expense for each person participating, allocate the expense to each participant on a pro rata basis. Military tax returns Example. Military tax returns You entertain a group of individuals that includes yourself, three business prospects, and seven social guests. Military tax returns Only 4/11 of the expense qualifies as a business entertainment expense. Military tax returns You cannot deduct the expenses for the seven social guests because those costs are nonbusiness expenses. Military tax returns Trade association meetings. Military tax returns   You can deduct entertainment expenses that are directly related to and necessary for attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. Military tax returns These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Military tax returns Entertainment tickets. Military tax returns   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. Military tax returns For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. Military tax returns Exception for events that benefit charitable organizations. Military tax returns   Different rules apply when the cost of a ticket to a sports event benefits a charitable organization. Military tax returns You can take into account the full cost you pay for the ticket, even if it is more than the face value, if all of the following conditions apply. Military tax returns The event's main purpose is to benefit a qualified charitable organization. Military tax returns The entire net proceeds go to the charity. Military tax returns The event uses volunteers to perform substantially all the event's work. Military tax returns    The 50% limit on entertainment does not apply to any expense for a package deal that includes a ticket to such a charitable sports event. Military tax returns Example 1. Military tax returns You purchase tickets to a golf tournament organized by the local volunteer fire company. Military tax returns All net proceeds will be used to buy new fire equipment. Military tax returns The volunteers will run the tournament. Military tax returns You can deduct the entire cost of the tickets as a business expense if they otherwise qualify as an entertainment expense. Military tax returns Example 2. Military tax returns You purchase tickets to a college football game through a ticket broker. Military tax returns After having a business discussion, you take a client to the game. Military tax returns Net proceeds from the game go to colleges that qualify as charitable organizations. Military tax returns However, since the colleges also pay individuals to perform services, such as coaching and recruiting, you can only use the face value of the tickets in determining your business deduction. Military tax returns Skyboxes and other private luxury boxes. Military tax returns   If you rent a skybox or other private luxury box for more than one event at the same sports arena, you generally cannot deduct more than the price of a nonluxury box seat ticket. Military tax returns   To determine whether a skybox has been rented for more than one event, count each game or other performance as one event. Military tax returns For example, renting a skybox for a series of playoff games is considered renting it for more than one event. Military tax returns All skyboxes you rent in the same arena, along with any rentals by related parties, are considered in making this determination. Military tax returns   Related parties include: Family members (spouses, ancestors, and lineal descendants), Parties who have made a reciprocal arrangement involving the sharing of skyboxes, Related corporations, A partnership and its principal partners, and A corporation and a partnership with common ownership. Military tax returns Example. Military tax returns You pay $3,000 to rent a 10-seat skybox at Team Stadium for three baseball games. Military tax returns The cost of regular nonluxury box seats at each event is $30 a seat. Military tax returns You can deduct (subject to the 50% limit) $900 ((10 seats × $30 each) × 3 events). Military tax returns Food and beverages in skybox seats. Military tax returns   If expenses for food and beverages are separately stated, you can deduct these expenses in addition to the amounts allowable for the skybox, subject to the requirements and limits that apply. Military tax returns The amounts separately stated for food and beverages must be reasonable. Military tax returns You cannot inflate the charges for food and beverages to avoid the limited deduction for skybox rentals. Military tax returns What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. Military tax returns Club dues and membership fees. Military tax returns   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. Military tax returns This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities, discussed later. Military tax returns   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. Military tax returns You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Military tax returns Entertainment facilities. Military tax returns   Generally, you cannot deduct any expense for the use of an entertainment facility. Military tax returns This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. Military tax returns   An entertainment facility is any property you own, rent, or use for entertainment. Military tax returns Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. Military tax returns Out-of-pocket expenses. Military tax returns   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. Military tax returns These are not expenses for the use of an entertainment facility. Military tax returns However, these expenses are subject to the directly-related and associated tests and to the 50% limit , all discussed earlier. Military tax returns Expenses for spouses. Military tax returns   You generally cannot deduct the cost of entertainment for your spouse or for the spouse of a customer. Military tax returns However, you can deduct these costs if you can show you had a clear business purpose, rather than a personal or social purpose, for providing the entertainment. Military tax returns Example. Military tax returns You entertain a customer. Military tax returns The cost is an ordinary and necessary business expense and is allowed under the entertainment rules. Military tax returns The customer's spouse joins you because it is impractical to entertain the customer without the spouse. Military tax returns You can deduct the cost of entertaining the customer's spouse. Military tax returns If your spouse joins the party because the customer's spouse is present, the cost of the entertainment for your spouse is also deductible. Military tax returns Gift or entertainment. Military tax returns   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Military tax returns However, if you give a customer packaged food or beverages that you intend the customer to use at a later date, treat it as a gift. Military tax returns   If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. Military tax returns You can treat the tickets as either a gift or entertainment, whichever is to your advantage. Military tax returns   You can change your treatment of the tickets at a later date by filing an amended return. Military tax returns Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. Military tax returns   If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Military tax returns You cannot choose, in this case, to treat the tickets as a gift. Military tax returns Prev  Up  Next   Home   More Online Publications