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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Ny State Tax Forms 2011

Print Free 1040ez Tax FormForm1040ezTax 1040ezCan I Efile 1040nrBankruptcy Married Filing Income Taxes SeparatelyIrs Addendum FormFile State Taxes Free OnlineEfile 2009 TaxesForm 1040xFiling My 2012 TaxesFiling Late Taxes For 2011Free 2007 Tax Software DownloadNeed To Amend 2010 Tax ReturnWww Irs Gov VitaCan I Still E File My 2012 Tax ReturnHow To File An Amendment On Taxes1040ez Form2012Turbotax Free State File1040x FillableAmending Taxes OnlineIrs Form 1040ez2012 Income Tax ReturnsFree EfileHow To File Back Taxes OnlineFree Amended Tax Return OnlineIrs Form Ez 1040Unemployment Tax ReturnWww Irs Gov EfileFree Self Tax Preparation OnlineIrs FormsForm 1040nrI Need To Print A Free 1040x FormFile Taxes Online Free 2012File My 2009 Taxes Online FreeFile 2011 Taxes Online TurbotaxAmendFiling 2011 Taxes LateTax Software 2011How To File For 2010 TaxesIrs Gov 2012 Tax Return

Ny State Tax Forms 2011

Ny state tax forms 2011 4. Ny state tax forms 2011   Filing U. Ny state tax forms 2011 S. Ny state tax forms 2011 Tax Returns Table of Contents Who Must FileFiling Requirement if Possession Income Is Excluded When To FileExtension of Time To File Where To File Special Rules for Completing Your U. Ny state tax forms 2011 S. Ny state tax forms 2011 Tax ReturnU. Ny state tax forms 2011 S. Ny state tax forms 2011 Armed Forces. Ny state tax forms 2011 Deductions if Possession Income Is Excluded Foreign Tax Credit if Possession Income Is Excluded Self-Employment Tax Additional Medicare Tax Net Investment Income Tax Paying Your TaxesEstimated Tax Double TaxationCompetent Authority Assistance The information in chapter 3 will tell you if a U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return is required for your situation. Ny state tax forms 2011 If a U. Ny state tax forms 2011 S. Ny state tax forms 2011 return is required, your next step is to see if you meet the filing requirements. Ny state tax forms 2011 If you do meet the filing requirements, the information presented in this chapter will help you understand the special procedures involved. Ny state tax forms 2011 This chapter discusses: Filing requirements, When to file your return, Where to send your return, How to adjust your deductions and credits if you are excluding income from American Samoa or Puerto Rico, How to make estimated tax payments and pay self-employment tax, and How to request assistance in resolving instances of double taxation. Ny state tax forms 2011 Who Must File If you are not required to file a possession tax return that includes your worldwide income, you must generally file a U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return if your gross income is at least the amount shown in Table 4-1, later, for your filing status and age. Ny state tax forms 2011 If you were a bona fide resident of American Samoa or Puerto Rico and are able to exclude your possession income from your U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return, your filing requirement may be less than the amount in Table 4-1. Ny state tax forms 2011 For details, see the information under Filing Requirement if Possession Income Is Excluded , later. Ny state tax forms 2011 Some individuals (such as those who can be claimed as a dependent on another person's return or who owe certain taxes, such as self-employment tax) must file a tax return even though the gross income is less than the amount shown in Table 4-1 for their filing status and age. Ny state tax forms 2011 For more information, see the Form 1040 instructions. Ny state tax forms 2011 Filing Requirement if Possession Income Is Excluded If you were a bona fide resident of American Samoa or Puerto Rico and qualify to exclude possession income on your U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return, you must determine your adjusted filing requirement. Ny state tax forms 2011 Generally, your filing requirement is based on the total of your (and your spouse's if filing a joint return) personal exemption(s) plus your standard deduction. Ny state tax forms 2011 Personal exemption. Ny state tax forms 2011   When figuring your filing requirement, your personal exemption is allowed in full. Ny state tax forms 2011 Do not reduce it for this purpose. Ny state tax forms 2011 Do not include exemptions for your dependents. Ny state tax forms 2011 Allowable standard deduction. Ny state tax forms 2011   Unless your filing status is married filing separately, the minimum income level at which you must file a return is based, in part, on the standard deduction for your filing status and age. Ny state tax forms 2011 Because the standard deduction applies to all types of income, it must be divided between your excluded income and income from other sources. Ny state tax forms 2011 Multiply the regular standard deduction for your filing status and age (this is zero if you are married filing a separate return; all others, see Form 1040 instructions) by the following fraction:      Gross income subject to U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax     Gross income from all sources (including excluded possession income)   Example. Ny state tax forms 2011 Barbara Spruce, a U. Ny state tax forms 2011 S. Ny state tax forms 2011 citizen, is single, under 65, and a bona fide resident of American Samoa. Ny state tax forms 2011 During 2013, she received $20,000 of income from American Samoa sources (qualifies for exclusion) and $8,000 of income from sources outside the possession (subject to U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax). Ny state tax forms 2011 Her allowable standard deduction for 2013 is figured as follows:   $8,000 $28,000 × $6,100 (regular standard deduction) = $1,743   Adjusted filing requirement. Ny state tax forms 2011   Figure your adjusted filing requirement by adding the amount of your allowable standard deduction to the amount of your personal exemption. Ny state tax forms 2011 You must file a U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return if your gross income is at least the amount shown on line 3 of the following worksheet. Ny state tax forms 2011    1. Ny state tax forms 2011 Enter the allowable standard deduction you figured earlier under Allowable standard deduction . Ny state tax forms 2011 If your filing status is married filing separately, enter -0-   2. Ny state tax forms 2011 Personal exemption. Ny state tax forms 2011 If your filing status is married filing jointly, enter $7,800; if someone can claim you as a dependent, enter -0-; otherwise, enter $3,900   3. Ny state tax forms 2011 Add lines 1 and 2. Ny state tax forms 2011 You must file a U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return if your gross income from sources outside the relevant possession is at least this amount   Table 4-1. Ny state tax forms 2011 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. Ny state tax forms 2011 . Ny state tax forms 2011 . Ny state tax forms 2011 AND at the end of 2013 you were*. Ny state tax forms 2011 . Ny state tax forms 2011 . Ny state tax forms 2011 THEN file a return if your gross income** was at least. Ny state tax forms 2011 . Ny state tax forms 2011 . Ny state tax forms 2011 single under 65 $10,000 65 or older $11,500 married filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married filing separately any age $3,900 head of household under 65 $12,850 65 or older $14,350 qualifying widow(er)  with dependent child under 65 $16,100 65 or older $17,300 * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Ny state tax forms 2011 ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States (even if you can exclude part or all of it). Ny state tax forms 2011 Do not include social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013, or (b) one-half of your social security benefits plus your other gross income is more than $25,000 ($32,000 if married filing jointly). Ny state tax forms 2011 If (a) or (b) applies, see the instructions for Form 1040 or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the taxable part of social security benefits you must include in gross income. Ny state tax forms 2011 *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900 you must file a return regardless of your age. Ny state tax forms 2011 Example 1. Ny state tax forms 2011 James and Joan Thompson, one over 65, are U. Ny state tax forms 2011 S. Ny state tax forms 2011 citizens and bona fide residents of Puerto Rico during the entire tax year. Ny state tax forms 2011 They file a joint income tax return. Ny state tax forms 2011 During 2013, they received $35,000 of income from Puerto Rico sources (qualifies for exclusion) and $6,000 of income from sources outside Puerto Rico (subject to U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax). Ny state tax forms 2011 Their allowable standard deduction for 2013 is figured as follows:   $6,000 $41,000 × $13,400 ( standard deduction for 65 or older (one spouse) ) = $1,961   The Thompsons do not have to file a U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return because their gross income subject to U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax ($6,000) is less than their allowable standard deduction plus their personal exemptions ($1,961+ $7,800= $9,761). Ny state tax forms 2011 Example 2. Ny state tax forms 2011 Barbara Spruce (see Example under Allowable standard deduction, earlier), however, must file a U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return because her gross income subject to U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax ($8,000) is more than her allowable standard deduction plus her personal exemption ($1,743 + $3,900 = $5,643). Ny state tax forms 2011 If you must file a U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return, you may be able to file a paperless return using IRS e-file. Ny state tax forms 2011 See your form instructions or visit our website at IRS. Ny state tax forms 2011 gov. Ny state tax forms 2011 When To File If you file on a calendar year basis, the due date for filing your U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return is April 15 following the end of your tax year. Ny state tax forms 2011 If you use a fiscal year (a year ending on the last day of a month other than December), the due date is the 15th day of the 4th month after the end of your fiscal year. Ny state tax forms 2011 If any due date falls on a Saturday, Sunday, or legal holiday, your tax return is due on the next business day. Ny state tax forms 2011 For your 2013 tax return, the due date is April 15, 2014. Ny state tax forms 2011 If you mail your federal tax return, it is considered timely if it bears an official postmark dated on or before the due date, including any extensions. Ny state tax forms 2011 If you use a private delivery service designated by the IRS, generally the postmark date is the date the private delivery service records in its database or marks on the mailing label. Ny state tax forms 2011 See your form instructions for a list of designated private delivery services. Ny state tax forms 2011 Extension of Time To File You can get an extension of time to file your U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return. Ny state tax forms 2011 Special rules apply for those living outside the United States. Ny state tax forms 2011 Automatic 6-Month Extension If you cannot file your 2013 return by the due date, you can get an automatic 6-month extension of time to file. Ny state tax forms 2011 Example. Ny state tax forms 2011 If your return must be filed by April 15, 2014, you will have until October 15, 2014, to file. Ny state tax forms 2011 Although you are not required to make a payment of the tax you estimate as due, Form 4868 does not extend the time to pay taxes. Ny state tax forms 2011 If you do not pay the amount due by the regular due date (generally April 15), you will owe interest on any unpaid tax from the original due date to the date you pay the tax. Ny state tax forms 2011 You may also be charged penalties (see the Instructions for Form 4868). Ny state tax forms 2011 How to get the automatic extension. Ny state tax forms 2011   You can get the automatic 6-month extension if you do one of the following by the due date for filing your return. Ny state tax forms 2011 E-file Form 4868 using your personal computer or a tax professional. Ny state tax forms 2011 E-file and pay by credit or debit card. Ny state tax forms 2011 Your payment must be at least $1. Ny state tax forms 2011 You may pay by phone or over the Internet. Ny state tax forms 2011 Do not file Form 4868. Ny state tax forms 2011 File a paper Form 4868. Ny state tax forms 2011 If you are a fiscal year taxpayer, you must file a paper Form 4868. Ny state tax forms 2011 See Form 4868 for information on getting an extension using these options. Ny state tax forms 2011 When to file. Ny state tax forms 2011   You must request the automatic extension by the due date for your return. Ny state tax forms 2011 You can file your return any time before the 6-month extension period ends. Ny state tax forms 2011 When you file your return. Ny state tax forms 2011   Enter any payment you made related to the extension of time to file on Form 1040, line 68. Ny state tax forms 2011 If you file Form 1040A, U. Ny state tax forms 2011 S. Ny state tax forms 2011 Individual Income Tax Return, or Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents, include that payment in your total payments on Form 1040A, line 41, or Form 1040EZ, line 9. Ny state tax forms 2011 Also enter “Form 4868” and the amount paid in the space to the left of the entry space for line 41 or line 9. Ny state tax forms 2011 You cannot ask the Internal Revenue Service to figure your tax if you use the extension of time to file. Ny state tax forms 2011 Individuals Outside the United States and Puerto Rico You are allowed an automatic 2-month extension (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if: You are a U. Ny state tax forms 2011 S. Ny state tax forms 2011 citizen or resident, and On the due date of your return: You are living outside of the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. Ny state tax forms 2011 However, if you pay the tax due after the regular due date (generally April 15), interest will be charged from April 15 until the date the tax is paid. Ny state tax forms 2011 If you serve in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. Ny state tax forms 2011 For more information, see Publication 3, Armed Forces' Tax Guide. Ny state tax forms 2011 Married taxpayers. Ny state tax forms 2011   If you file a joint return, only one spouse has to qualify for this automatic extension. Ny state tax forms 2011 However, if you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies. Ny state tax forms 2011 How to get the extension. Ny state tax forms 2011   To use this special automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. Ny state tax forms 2011 (See the situations listed under (2), earlier. Ny state tax forms 2011 ) Extension beyond 2 months. Ny state tax forms 2011   If you cannot file your 2013 return within the automatic 2-month extension period, you can get an additional 4-month extension, for a total of 6 months. Ny state tax forms 2011 File Form 4868 by the end of the automatic extension period (June 16, 2014 for calendar year taxpayers). Ny state tax forms 2011 Be sure to check the box on Form 4868, line 8, if appropriate. Ny state tax forms 2011   In addition to this 6-month extension, taxpayers who are out of the country (as defined under (2) earlier) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Ny state tax forms 2011   To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Ny state tax forms 2011 Send the letter by the extended due date (October 15 for calendar year taxpayers) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   You will not receive any notification from the IRS unless your request is denied for being untimely. Ny state tax forms 2011 Where To File Use the addresses listed below if you have to file Form 1040 with the United States and you are excluding possession income from American Samoa or Puerto Rico. Ny state tax forms 2011 If you are not including a check or a money order, send your U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return and all attachments to:   Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return and all attachments to:  Internal Revenue Service P. Ny state tax forms 2011 O. Ny state tax forms 2011 Box 1303 Charlotte, NC 28201-1303 USA Also send your U. Ny state tax forms 2011 S. Ny state tax forms 2011 return to these addresses if you are attaching Form 5074 or Form 8689. Ny state tax forms 2011 If you are not in either of the above categories, send your return to the address shown in the Form 1040 instructions for the possession or state in which you reside. Ny state tax forms 2011 Special Rules for Completing Your U. Ny state tax forms 2011 S. Ny state tax forms 2011 Tax Return If you are not excluding possession income from your U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return, follow the instructions for the specific forms you file. Ny state tax forms 2011 However, you may not qualify to claim the earned income credit (EIC). Ny state tax forms 2011 Earned income credit. Ny state tax forms 2011   Even if you maintain a household in one of the possessions discussed in this publication that is your main home and the home of your qualifying child, you cannot claim the earned income credit on your U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return. Ny state tax forms 2011 This credit is available only if you maintain the household in the United States or you are serving on extended active duty in the U. Ny state tax forms 2011 S. Ny state tax forms 2011 Armed Forces. Ny state tax forms 2011 U. Ny state tax forms 2011 S. Ny state tax forms 2011 Armed Forces. Ny state tax forms 2011   U. Ny state tax forms 2011 S. Ny state tax forms 2011 military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC. Ny state tax forms 2011 Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Ny state tax forms 2011 Once you begin serving your extended active duty, you are still considered to have been on extended active duty even if you do not serve more than 90 days. Ny state tax forms 2011 Income from American Samoa or Puerto Rico excluded. Ny state tax forms 2011   You will not be allowed to take deductions and credits that apply to the excluded income. Ny state tax forms 2011 The additional information you need follows. Ny state tax forms 2011 Deductions if Possession Income Is Excluded Deductions that specifically apply to your excluded possession income, such as employee business expenses, are not allowable on your U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return. Ny state tax forms 2011 Deductions that do not specifically apply to any particular type of income must be divided between your excluded income from sources in the relevant possession and income from all other sources to find the part that you can deduct on your U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return. Ny state tax forms 2011 Examples of such deductions are alimony payments, the standard deduction, and certain itemized deductions (such as medical expenses, charitable contributions, real estate taxes, and mortgage interest on your home). Ny state tax forms 2011 Figuring the deduction. Ny state tax forms 2011   To find the part of a deduction that is allowable, multiply the deduction by the following fraction. Ny state tax forms 2011   Gross income subject to U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax     Gross income from all sources (including excluded possession income)   Adjustments to Income Your adjusted gross income equals your gross income minus certain deductions (adjustments). Ny state tax forms 2011 Moving expense deduction. Ny state tax forms 2011   Generally, expenses of a move to a possession are directly attributable to wages, salaries, and other earned income from that possession. Ny state tax forms 2011 Likewise, the expenses of a move back to the United States are generally attributable to U. Ny state tax forms 2011 S. Ny state tax forms 2011 earned income. Ny state tax forms 2011   If you are claiming expenses for a move to a relevant possession, how and where you will deduct the expenses depends on your status as a bona fide resident and if any of your possession income is excluded on your U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return. Ny state tax forms 2011 For more information, see Moving expense deduction in chapter 3 under the name of the relevant possession. Ny state tax forms 2011   If you are claiming expenses for a move from a U. Ny state tax forms 2011 S. Ny state tax forms 2011 possession to the United States, use Form 3903 to figure your deductible expenses and enter the amount on Form 1040, line 26. Ny state tax forms 2011 For purposes of deducting moving expenses, the possessions are considered part of the United States. Ny state tax forms 2011 See Publication 521, Moving Expenses, for information about what expenses are deductible. Ny state tax forms 2011 Self-employment tax deduction. Ny state tax forms 2011   Generally, if you are reporting self-employment income on your U. Ny state tax forms 2011 S. Ny state tax forms 2011 return, you can include the deductible part of your self-employment tax on Form 1040, line 27. Ny state tax forms 2011 This is an income tax deduction only; it is not a deduction in figuring net earnings from self-employment (for self-employment tax). Ny state tax forms 2011   However, if you are a bona fide resident of American Samoa or Puerto Rico and you exclude all of your self-employment income from gross income, you cannot take the deduction on Form 1040, line 27, because the deduction is related to excluded income. Ny state tax forms 2011   If only part of your self-employment income is excluded, the part of the deduction that is based on the nonexcluded income is allowed. Ny state tax forms 2011 This would happen if, for instance, you have two businesses and only the income from one of them is excludable. Ny state tax forms 2011   For purposes of the deduction only, figure the self-employment tax on the nonexcluded income by multiplying your total self-employment tax (from Schedule SE (Form 1040)), Self-Employment Tax) by the following fraction. Ny state tax forms 2011   Self-employment income subject to U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax     Total self-employment income (including excluded possession income)   The result is your self-employment tax on nonexcluded income. Ny state tax forms 2011 Include the deductible part of this amount on Form 1040, line 27. Ny state tax forms 2011 Individual retirement arrangement (IRA) deduction. Ny state tax forms 2011   Do not take excluded income into account when figuring your deductible IRA contribution. Ny state tax forms 2011 Standard Deduction The standard deduction is composed of the regular standard deduction amount and the additional standard deduction for taxpayers who are blind or age 65 or over. Ny state tax forms 2011 To find the amount you can claim on Form 1040, line 40, first figure your full standard deduction according to the Instructions for Form 1040. Ny state tax forms 2011 Then multiply your full standard deduction by the following fraction. Ny state tax forms 2011   Gross income subject to U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax     Gross income from all sources (including excluded possession income)   In the space above line 40, enter “Standard deduction modified due to income excluded under section 931 (if American Samoa) or section 933 (if Puerto Rico). Ny state tax forms 2011 ” This calculation may not be the same as the one you used to determine if you need to file a U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return. Ny state tax forms 2011 Itemized Deductions Most itemized deductions do not apply to a particular type of income. Ny state tax forms 2011 However, itemized deductions can be divided into three categories. Ny state tax forms 2011 Those that apply specifically to excluded income, such as employee business expenses, are not deductible. Ny state tax forms 2011 Those that apply specifically to income subject to U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax, which might also be employee business expenses, are fully allowable under the Instructions for Schedule A (Form 1040), Itemized Deductions. Ny state tax forms 2011 Those that do not apply to specific income must be allocated between your gross income subject to U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax and your total gross income from all sources. Ny state tax forms 2011 The example given later shows how to figure the deductible part of each type of expense that is not related to specific income. Ny state tax forms 2011 Example. Ny state tax forms 2011 In 2013, you and your spouse are both under 65 and U. Ny state tax forms 2011 S. Ny state tax forms 2011 citizens who are bona fide residents of Puerto Rico during the entire tax year. Ny state tax forms 2011 You file a joint income tax return. Ny state tax forms 2011 During 2013, you earned $20,000 from Puerto Rican sources (excluded from U. Ny state tax forms 2011 S. Ny state tax forms 2011 gross income) and your spouse earned $60,000 from the U. Ny state tax forms 2011 S. Ny state tax forms 2011 Government. Ny state tax forms 2011 You have $16,000 of itemized deductions that do not apply to any specific type of income. Ny state tax forms 2011 These are medical expenses of $4,000, real estate taxes of $5,000, home mortgage interest of $6,000, and charitable contributions of $1,000 (cash contributions). Ny state tax forms 2011 You determine the amount of each deduction that you can claim on your Schedule A (Form 1040), Itemized Deductions, by multiplying the deduction by the fraction shown under Figuring the deduction , earlier under Deductions if Possession Income is Excluded. Ny state tax forms 2011   Medical Expenses   $60,000$80,000 × $4,000 = $3,000  (enter on line 1  of Schedule A)     Real Estate Taxes   $60,000$80,000 × $5,000 = $3,750  (enter on line 6  of Schedule A)     Home Mortgage Interest   $60,000$80,000 × $6,000 = $4,500  (enter on line 10 or 11 of  Schedule A)     Charitable Contributions (cash contributions)   $60,000$80,000 × $1,000 = $750  (enter on line 16 of Schedule A)   Enter on Schedule A (Form 1040) only the allowable portion of each deduction. Ny state tax forms 2011 Overall limitation on itemized deductions. Ny state tax forms 2011   If your adjusted gross income (discussed earlier) is over $300,000 if married filing jointly or qualifying widow(er); $275,000 if head of household; $250,000 if single; or $150,000 if married filing separately; see the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040), to figure your itemized deductions. Ny state tax forms 2011 Personal Exemptions Personal exemptions are allowed in full even if excluding possession income. Ny state tax forms 2011 However, depending upon your adjusted gross income and filing status, the amount you can deduct may be reduced. Ny state tax forms 2011 See the Deduction for Exemptions Worksheet—Line 42 in the instructions for Form 1040. Ny state tax forms 2011 Foreign Tax Credit if Possession Income Is Excluded If you must report American Samoa or Puerto Rico source income on your U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return, you can claim a foreign tax credit for income taxes paid to the possession on that income. Ny state tax forms 2011 However, you cannot claim a foreign tax credit for taxes paid on possession income that is excluded on your U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax return. Ny state tax forms 2011 The foreign tax credit is generally figured on Form 1116. Ny state tax forms 2011 If you have income, such as U. Ny state tax forms 2011 S. Ny state tax forms 2011 Government wages, that is not excludable, and you also have possession source income that is excludable, you must figure the credit by reducing your foreign taxes paid or accrued by the taxes based on the excluded income. Ny state tax forms 2011 You make this reduction for each separate income category. Ny state tax forms 2011 To find the amount of this reduction, use the following formula for each income category. Ny state tax forms 2011 Excluded income from possession sources less deductible expenses based on that income x Tax paid or accrued to the possession = Reduction in foreign taxes Total income subject to possession tax less deductible expenses based on that income Enter the amount of the reduction on Form 1116, line 12. Ny state tax forms 2011 For more information on the foreign tax credit, see Publication 514. Ny state tax forms 2011 Example. Ny state tax forms 2011 Jason and Lynn Reddy are U. Ny state tax forms 2011 S. Ny state tax forms 2011 citizens who were bona fide residents of Puerto Rico during all of 2013. Ny state tax forms 2011 They file a joint tax return. Ny state tax forms 2011 The following table shows their excludable and taxable income for U. Ny state tax forms 2011 S. Ny state tax forms 2011 federal income tax purposes. Ny state tax forms 2011   Taxable   Excludable Jason's wages from  U. Ny state tax forms 2011 S. Ny state tax forms 2011 Government $25,000     Lynn's wages from Puerto Rico  corp. Ny state tax forms 2011     $15,000 Dividend from Puerto Rico corp. Ny state tax forms 2011 doing business in Puerto Rico     200 Dividend from U. Ny state tax forms 2011 S. Ny state tax forms 2011  corp. Ny state tax forms 2011 doing business  in U. Ny state tax forms 2011 S. Ny state tax forms 2011 * 1,000     Totals $26,000   $15,200 * Income from sources outside Puerto Rico is taxable. Ny state tax forms 2011   Jason and Lynn must file 2013 income tax returns with both Puerto Rico and the United States. Ny state tax forms 2011 They have gross income of $26,000 for U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax purposes. Ny state tax forms 2011 They paid taxes to Puerto Rico of $4,000 ($3,980 on their wages and $20 on the dividend from the Puerto Rico corporation). Ny state tax forms 2011 They figure their foreign tax credit on two Forms 1116, which they must attach to their U. Ny state tax forms 2011 S. Ny state tax forms 2011 return. Ny state tax forms 2011 They fill out one Form 1116 for wages and one Form 1116 for the dividend. Ny state tax forms 2011 Jason and Lynn figure the Puerto Rico taxes on excluded income as follows. Ny state tax forms 2011   Wages: ($15,000 ÷ $40,000) × $3,980 = $1,493   Dividend: ($200 ÷ $200) × $20 = $20 They enter $1,493 on Form 1116, line 12, for wages and $20 on the second Form 1116, line 12, for the dividend. Ny state tax forms 2011 Self-Employment Tax Self-employment tax includes both social security and Medicare taxes for individuals who are self-employed. Ny state tax forms 2011 A U. Ny state tax forms 2011 S. Ny state tax forms 2011 citizen or resident alien who is self-employed must pay self-employment tax on net self-employment earnings of $400 or more. Ny state tax forms 2011 This rule applies whether or not the earnings are excludable from gross income (or whether or not a U. Ny state tax forms 2011 S. Ny state tax forms 2011 income tax return must otherwise be filed). Ny state tax forms 2011 Bona fide residents of the possessions discussed in this publication are considered U. Ny state tax forms 2011 S. Ny state tax forms 2011 residents for this purpose and are subject to the self-employment tax. Ny state tax forms 2011 Forms to file. Ny state tax forms 2011   If you have net self-employment income and are subject to self-employment tax, file one of the following with the United States. Ny state tax forms 2011 If you are required to file Form 1040 with the United States, complete Schedule SE (Form 1040) and attach it to your Form 1040. Ny state tax forms 2011 If you are not required to file Form 1040 with the United States and you are a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, file Form 1040-SS. Ny state tax forms 2011 If you are a resident of Puerto Rico, you can file the Spanish-language Form 1040-PR instead. Ny state tax forms 2011 Do not file forms 1040-SS or 1040-PR with Form 1040. Ny state tax forms 2011 If you are required to pay Additional Medicare Tax (discussed later) on your self-employment income, attach Form 8959, Additional Medicare Tax to Form 1040, Form 1040-SS, or Form 1040-PR, as applicable. Ny state tax forms 2011 Chapter 11 Bankruptcy cases. Ny state tax forms 2011   While you are a debtor in a chapter 11 bankruptcy case, your net profit or loss from self-employment will be included on the income tax return (Form 1041, U. Ny state tax forms 2011 S. Ny state tax forms 2011 Income Tax Return for Estates and Trusts) of the bankruptcy estate. Ny state tax forms 2011 However, you—not the bankruptcy estate—are responsible for paying self-employment tax on your net earnings from self-employment. Ny state tax forms 2011   Use Schedule SE (Form 1040), Form 1040-SS, or Form 1040-PR, as determined above, to figure your correct amount of self-employment tax. Ny state tax forms 2011   For other reporting requirements, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040. Ny state tax forms 2011 Additional Medicare Tax Beginning in 2013, a 0. Ny state tax forms 2011 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er). Ny state tax forms 2011 Medicare wages and self-employment income are combined to determine if income exceeds the threshold. Ny state tax forms 2011 A self-employment loss should not be considered for purposes of this tax. Ny state tax forms 2011 RRTA compensation should be separately compared to the threshold. Ny state tax forms 2011 Your employer is responsible for withholding the 0. Ny state tax forms 2011 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. Ny state tax forms 2011 You should consider this withholding, if applicable, in determining whether you need to make estimated tax payments. Ny state tax forms 2011 There are no special rules for U. Ny state tax forms 2011 S. Ny state tax forms 2011 citizens and nonresident aliens living abroad for purposes of this provision. Ny state tax forms 2011 Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. Ny state tax forms 2011 For more information, see Form 8959, Additional Medicare Tax, and its instructions or visit www. Ny state tax forms 2011 irs. Ny state tax forms 2011 gov and enter the following words in the search box: Additional Medicare Tax. Ny state tax forms 2011 You cannot include the Additional Medicare Tax as a deductible part of your self-employment tax. Ny state tax forms 2011 Net Investment Income Tax Beginning in 2013, the Net Investment Income Tax (NIIT) imposes a 3. Ny state tax forms 2011 8% tax on the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. Ny state tax forms 2011 Bona fide residents of Puerto Rico and American Samoa who may have a federal income tax return filing obligation may be liable for the NIIT if the taxpayer’s modified adjusted gross income from non-territory sources exceeds a specified threshold amount. Ny state tax forms 2011 The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Ny state tax forms 2011 Bona fide residents must take into account any additional tax liability associated with the NIIT when calculating your estimated tax payments. Ny state tax forms 2011 Forms to file. Ny state tax forms 2011   If you are a bona fide resident of American Samoa and Puerto Rico and you are required to pay the NIIT, you must file Form 1040 with the United States and attach Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts. Ny state tax forms 2011 For more information, see Form 8960 and its instructions. Ny state tax forms 2011 Paying Your Taxes You may find that not all of your income tax has been paid through withholding by either the United States or the possession. Ny state tax forms 2011 This is often true if you have income that is not subject to withholding, such as self-employment, interest, or rental income. Ny state tax forms 2011 In this situation, you may need to make estimated tax payments. Ny state tax forms 2011 Estimated Tax If your estimated income tax obligation is to the United States, use the worksheet in the Form 1040-ES package to figure your estimated tax, including self-employment tax. Ny state tax forms 2011 Include the Additional Medicare Tax and Net Investment Income Tax if applicable. Ny state tax forms 2011 If you are paying by check or money order, use the payment vouchers in the Form 1040-ES package. Ny state tax forms 2011 Or, you can make your payments electronically and not have to file any paper forms. Ny state tax forms 2011 See the Form 1040-ES instructions for information on making payments. Ny state tax forms 2011 Double Taxation Mutual agreement procedures exist to settle issues where there is inconsistent tax treatment between the IRS and the taxing authorities of the following possessions. Ny state tax forms 2011 American Samoa. Ny state tax forms 2011 The Commonwealth of Puerto Rico. Ny state tax forms 2011 The Commonwealth of the Northern Mariana Islands. Ny state tax forms 2011 Guam. Ny state tax forms 2011 The U. Ny state tax forms 2011 S. Ny state tax forms 2011 Virgin Islands. Ny state tax forms 2011 These issues usually involve allocations of income, deductions, credits, or allowances between related persons; determinations of residency; and determinations of the source of income and related expenses. Ny state tax forms 2011 Competent Authority Assistance The tax coordination agreements between the United States and the possession tax departments contain provisions allowing the competent authorities of the United States and the relevant possession to resolve, by mutual agreement, inconsistent tax treatment by the two jurisdictions. Ny state tax forms 2011 How to make your request. Ny state tax forms 2011   Your request for competent authority assistance must include all the information listed in Revenue Procedure 2006-23, 2006-20 I. Ny state tax forms 2011 R. Ny state tax forms 2011 B. Ny state tax forms 2011 900 available at www. Ny state tax forms 2011 irs. Ny state tax forms 2011 gov/pub/irs-irbs/irb06-49. Ny state tax forms 2011 pdf. Ny state tax forms 2011    Also, see Notice 2013-78, which provides proposed updates to the procedures for requesting U. Ny state tax forms 2011 S. Ny state tax forms 2011 competent authority assistance under tax treaties. Ny state tax forms 2011 As noted, an update to Revenue Procedure 2006-23 will be published in the future. Ny state tax forms 2011   Your request must be in the form of a letter addressed to the Deputy Commissioner (International) LB&I. Ny state tax forms 2011 It must contain a statement that competent authority assistance is requested under the mutual agreement procedure with the possession. Ny state tax forms 2011 You (or a person having authority to sign your federal return) must sign and date the request. Ny state tax forms 2011    Send your written request for U. Ny state tax forms 2011 S. Ny state tax forms 2011 assistance under this procedure to:   Deputy Commissioner (International) Large Business and International Division Internal Revenue Service 1111 Constitution Avenue, N. Ny state tax forms 2011 W. Ny state tax forms 2011  Routing: M4-365 Washington, DC 20224 (Attention: TAIT) Nonresident aliens generally must present their initial request for assistance to the relevant possession tax agency. Ny state tax forms 2011 Credit or Refund In addition to the tax assistance request, if you seek a credit or refund of any overpayment of U. Ny state tax forms 2011 S. Ny state tax forms 2011 tax paid on the income in question, you should file a claim on Form 1040X, Amended U. Ny state tax forms 2011 S. Ny state tax forms 2011 Individual Income Tax Return. Ny state tax forms 2011 Indicate on the form that a request for assistance under the mutual agreement procedure with the possession has been filed. Ny state tax forms 2011 Attach a copy of the request to the form. Ny state tax forms 2011 Also, you should take whatever steps must be taken under the possession tax code to prevent the expiration of the statutory period for filing a claim for credit or refund of a possession tax. Ny state tax forms 2011 See Revenue Procedure 2006-54 (or its successor), section 9, for complete information. Ny state tax forms 2011 Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Tax Information for Federal, State, and Local Governments

Federal, State & Local Governments - A Closer Look
About us: our mission and how we can help you

Federal, State and Local Governments News
Recent developments affecting government entities

Issues for Government Entities
Employment tax, information reporting, filing requirements, fringe benefits and more

Educational Resources
Links to publications, recorded presentations and other tools

Federal, State & Local Governments FAQs
FAQs organized by topic

Contact FSLG
How to get help by phone or e-mail

Page Last Reviewed or Updated: 25-Mar-2014

The Ny State Tax Forms 2011

Ny state tax forms 2011 7. Ny state tax forms 2011   Coverdell Education Savings Account (ESA) Table of Contents Introduction What Is a Coverdell ESAQualified Education Expenses ContributionsContribution Limits Additional Tax on Excess Contributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Transfer Because of Divorce DistributionsTax-Free Distributions Taxable Distributions When Assets Must Be Distributed Introduction If your modified adjusted gross income (MAGI) is less than $110,000 ($220,000 if filing a joint return), you may be able to establish a Coverdell ESA to finance the qualified education expenses of a designated beneficiary. Ny state tax forms 2011 For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return. Ny state tax forms 2011 There is no limit on the number of separate Coverdell ESAs that can be established for a designated beneficiary. Ny state tax forms 2011 However, total contributions for the beneficiary in any year cannot be more than $2,000, no matter how many accounts have been established. Ny state tax forms 2011 See Contributions , later. Ny state tax forms 2011 This benefit applies not only to higher education expenses, but also to elementary and secondary education expenses. Ny state tax forms 2011 What is the tax benefit of the Coverdell ESA. Ny state tax forms 2011   Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed. Ny state tax forms 2011   If, for a year, distributions from an account are not more than a designated beneficiary's qualified education expenses at an eligible educational institution, the beneficiary will not owe tax on the distributions. Ny state tax forms 2011 See Tax-Free Distributions , later. Ny state tax forms 2011    Table 7-1 summarizes the main features of the Coverdell ESA. Ny state tax forms 2011 Table 7-1. Ny state tax forms 2011 Coverdell ESA at a Glance Do not rely on this table alone. Ny state tax forms 2011 It provides only general highlights. Ny state tax forms 2011 See the text for definitions of terms in bold type and for more complete explanations. Ny state tax forms 2011 Question Answer What is a Coverdell ESA? A savings account that is set up to pay the qualified education expenses of a designated beneficiary. Ny state tax forms 2011 Where can it be established? It can be opened in the United States at any bank or other IRS-approved entity that offers Coverdell ESAs. Ny state tax forms 2011 Who can have a Coverdell ESA? Any beneficiary who is under age 18 or is a special needs beneficiary. Ny state tax forms 2011 Who can contribute to a Coverdell ESA? Generally, any individual (including the beneficiary) whose modified adjusted gross income for the year is less than $110,000 ($220,000 in the case of a joint return). Ny state tax forms 2011 Are distributions tax free? Yes, if the distributions are not more than the beneficiary's adjusted qualified education expenses for the year. Ny state tax forms 2011 What Is a Coverdell ESA A Coverdell ESA is a trust or custodial account created or organized in the United States only for the purpose of paying the qualified education expenses of the Designated beneficiary (defined later) of the account. Ny state tax forms 2011 When the account is established, the designated beneficiary must be under age 18 or a special needs beneficiary. Ny state tax forms 2011 To be treated as a Coverdell ESA, the account must be designated as a Coverdell ESA when it is created. Ny state tax forms 2011 The document creating and governing the account must be in writing and must satisfy the following requirements. Ny state tax forms 2011 The trustee or custodian must be a bank or an entity approved by the IRS. Ny state tax forms 2011 The document must provide that the trustee or custodian can only accept a contribution that meets all of the following conditions. Ny state tax forms 2011 The contribution is in cash. Ny state tax forms 2011 The contribution is made before the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. Ny state tax forms 2011 The contribution would not result in total contributions for the year (not including rollover contributions) being more than $2,000. Ny state tax forms 2011 Money in the account cannot be invested in life insurance contracts. Ny state tax forms 2011 Money in the account cannot be combined with other property except in a common trust fund or common investment fund. Ny state tax forms 2011 The balance in the account generally must be distributed within 30 days after the earlier of the following events. Ny state tax forms 2011 The beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary. Ny state tax forms 2011 The beneficiary's death. Ny state tax forms 2011 Qualified Education Expenses Generally, these are expenses required for the enrollment or attendance of the designated beneficiary at an eligible educational institution. Ny state tax forms 2011 For purposes of Coverdell ESAs, the expenses can be either qualified higher education expenses or qualified elementary and secondary education expenses. Ny state tax forms 2011 Designated beneficiary. Ny state tax forms 2011   This is the individual named in the document creating the trust or custodial account to receive the benefit of the funds in the account. Ny state tax forms 2011 Contributions to a qualified tuition program (QTP). Ny state tax forms 2011   A contribution to a QTP is a qualified education expense if the contribution is on behalf of the designated beneficiary of the Coverdell ESA. Ny state tax forms 2011 In the case of a change in beneficiary, this is a qualified expense only if the new beneficiary is a family member of that designated beneficiary. Ny state tax forms 2011 See chapter 8, Qualified Tuition Program . Ny state tax forms 2011 Eligible Educational Institution For purposes of Coverdell ESAs, an eligible educational institution can be either an eligible postsecondary school or an eligible elementary or secondary school. Ny state tax forms 2011 Eligible postsecondary school. Ny state tax forms 2011   This is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Ny state tax forms 2011 S. Ny state tax forms 2011 Department of Education. Ny state tax forms 2011 It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Ny state tax forms 2011 The educational institution should be able to tell you if it is an eligible educational institution. Ny state tax forms 2011   Certain educational institutions located outside the United States also participate in the U. Ny state tax forms 2011 S. Ny state tax forms 2011 Department of Education's Federal Student Aid (FSA) programs. Ny state tax forms 2011 Eligible elementary or secondary school. Ny state tax forms 2011   This is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. Ny state tax forms 2011 Qualified Higher Education Expenses These are expenses related to enrollment or attendance at an eligible postsecondary school. Ny state tax forms 2011 As shown in the following list, to be qualified, some of the expenses must be required by the school and some must be incurred by students who are enrolled at least half-time. Ny state tax forms 2011 The following expenses must be required for enrollment or attendance of a designated beneficiary at an eligible postsecondary school. Ny state tax forms 2011 Tuition and fees. Ny state tax forms 2011 Books, supplies, and equipment. Ny state tax forms 2011 Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible postsecondary school. Ny state tax forms 2011 Expenses for room and board must be incurred by students who are enrolled at least half-time (defined below). Ny state tax forms 2011 The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. Ny state tax forms 2011 The allowance for room and board, as determined by the school, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Ny state tax forms 2011 The actual amount charged if the student is residing in housing owned or operated by the school. Ny state tax forms 2011 Half-time student. Ny state tax forms 2011   A student is enrolled “at least half-time” if he or she is enrolled for at least half the full-time academic work load for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. Ny state tax forms 2011 Qualified Elementary and Secondary Education Expenses These are expenses related to enrollment or attendance at an eligible elementary or secondary school. Ny state tax forms 2011 As shown in the following list, to be qualified, some of the expenses must be required or provided by the school. Ny state tax forms 2011 There are special rules for computer-related expenses. Ny state tax forms 2011 The following expenses must be incurred by a designated beneficiary in connection with enrollment or attendance at an eligible elementary or secondary school. Ny state tax forms 2011 Tuition and fees. Ny state tax forms 2011 Books, supplies, and equipment. Ny state tax forms 2011 Academic tutoring. Ny state tax forms 2011 Special needs services for a special needs beneficiary. Ny state tax forms 2011 The following expenses must be required or provided by an eligible elementary or secondary school in connection with attendance or enrollment at the school. Ny state tax forms 2011 Room and board. Ny state tax forms 2011 Uniforms. Ny state tax forms 2011 Transportation. Ny state tax forms 2011 Supplementary items and services (including extended day programs). Ny state tax forms 2011 The purchase of computer technology, equipment, or Internet access and related services is a qualified elementary and secondary education expense if it is to be used by the beneficiary and the beneficiary's family during any of the years the beneficiary is in elementary or secondary school. Ny state tax forms 2011 (This does not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature. Ny state tax forms 2011 ) Contributions Any individual (including the designated beneficiary) can contribute to a Coverdell ESA if the individual's MAGI (defined later under Contribution Limits ) for the year is less than $110,000. Ny state tax forms 2011 For individuals filing joint returns, that amount is $220,000. Ny state tax forms 2011 Organizations, such as corporations and trusts, can also contribute to Coverdell ESAs. Ny state tax forms 2011 There is no requirement that an organization's income be below a certain level. Ny state tax forms 2011 Contributions must meet all of the following requirements. Ny state tax forms 2011 They must be in cash. Ny state tax forms 2011 They cannot be made after the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. Ny state tax forms 2011 They must be made by the due date of the contributor's tax return (not including extensions). Ny state tax forms 2011 Contributions can be made to one or several Coverdell ESAs for the same designated beneficiary provided that the total contributions are not more than the contribution limits (defined later) for a year. Ny state tax forms 2011 Contributions can be made, without penalty, to both a Coverdell ESA and a QTP in the same year for the same beneficiary. Ny state tax forms 2011 Table 7-2 summarizes many of the features of contributing to a Coverdell ESA. Ny state tax forms 2011 When contributions considered made. Ny state tax forms 2011   Contributions made to a Coverdell ESA for the preceding tax year are considered to have been made on the last day of the preceding year. Ny state tax forms 2011 They must be made by the due date (not including extensions) for filing your return for the preceding year. Ny state tax forms 2011   For example, if you make a contribution to a Coverdell ESA in February 2014, and you designate it as a contribution for 2013, you are considered to have made that contribution on December 31, 2013. Ny state tax forms 2011 Contribution Limits There are two yearly limits: One on the total amount that can be contributed for each designated beneficiary in any year, and One on the amount that any individual can contribute for any one designated beneficiary for a year. Ny state tax forms 2011 Limit for each designated beneficiary. Ny state tax forms 2011   For 2013, the total of all contributions to all Coverdell ESAs set up for the benefit of any one designated beneficiary cannot be more than $2,000. Ny state tax forms 2011 This includes contributions (other than rollovers) to all the beneficiary's Coverdell ESAs from all sources. Ny state tax forms 2011 Rollovers are discussed under Rollovers and Other Transfers , later. Ny state tax forms 2011 Example. Ny state tax forms 2011 When Maria Luna was born in 2012, three separate Coverdell ESAs were set up for her, one by her parents, one by her grandfather, and one by her aunt. Ny state tax forms 2011 In 2013, the total of all contributions to Maria's three Coverdell ESAs cannot be more than $2,000. Ny state tax forms 2011 For example, if her grandfather contributed $2,000 to one of her Coverdell ESAs, no one else could contribute to any of her three accounts. Ny state tax forms 2011 Or, if her parents contributed $1,000 and her aunt $600, her grandfather or someone else could contribute no more than $400. Ny state tax forms 2011 These contributions could be put into any of Maria's Coverdell ESA accounts. Ny state tax forms 2011 Limit for each contributor. Ny state tax forms 2011   Generally, you can contribute up to $2,000 for each designated beneficiary for 2013. Ny state tax forms 2011 This is the most you can contribute for the benefit of any one beneficiary for the year, regardless of the number of Coverdell ESAs set up for the beneficiary. Ny state tax forms 2011 Example. Ny state tax forms 2011 The facts are the same as in the previous example except that Maria Luna's older brother, Edgar, also has a Coverdell ESA. Ny state tax forms 2011 If their grandfather contributed $2,000 to Maria's Coverdell ESA in 2013, he could also contribute $2,000 to Edgar's Coverdell ESA. Ny state tax forms 2011 Reduced limit. Ny state tax forms 2011   Your contribution limit may be reduced. Ny state tax forms 2011 If your MAGI (defined on this page) is between $95,000 and $110,000 (between $190,000 and $220,000 if filing a joint return), the $2,000 limit for each designated beneficiary is gradually reduced (see Figuring the limit , later). Ny state tax forms 2011 If your MAGI is $110,000 or more ($220,000 or more if filing a joint return), you cannot contribute to anyone's Coverdell ESA. Ny state tax forms 2011 Table 7-2. Ny state tax forms 2011 Coverdell ESA Contributions at a Glance Do not rely on this table alone. Ny state tax forms 2011 It provides only general highlights. Ny state tax forms 2011 See the text for more complete explanations. Ny state tax forms 2011 Question Answer Are contributions deductible? No. Ny state tax forms 2011 What is the annual contribution limit per designated beneficiary? $2,000 for each designated beneficiary. Ny state tax forms 2011 What if more than one Coverdell ESA has been opened for the same designated beneficiary? The annual contribution limit is $2,000 for each beneficiary, no matter how many Coverdell ESAs are set up for that beneficiary. Ny state tax forms 2011 What if more than one individual makes contributions for the same designated beneficiary? The annual contribution limit is $2,000 per beneficiary, no matter how many individuals contribute. Ny state tax forms 2011 Can contributions other than cash be made to a Coverdell ESA? No. Ny state tax forms 2011 When must contributions stop? No contributions can be made to a beneficiary's Coverdell ESA after he or she reaches age 18, unless the beneficiary is a special needs beneficiary. Ny state tax forms 2011 Modified adjusted gross income (MAGI). Ny state tax forms 2011   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. Ny state tax forms 2011 MAGI when using Form 1040A. Ny state tax forms 2011   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. Ny state tax forms 2011 MAGI when using Form 1040. Ny state tax forms 2011   If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Ny state tax forms 2011 MAGI when using Form 1040NR. Ny state tax forms 2011   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form. Ny state tax forms 2011 MAGI when using Form 1040NR-EZ. Ny state tax forms 2011   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form. Ny state tax forms 2011   If you have any of these adjustments, you can use Worksheet 7-1. Ny state tax forms 2011 MAGI for a Coverdell ESA , later, to figure your MAGI for Form 1040. Ny state tax forms 2011 Worksheet 7-1. Ny state tax forms 2011 MAGI for a Coverdell ESA 1. Ny state tax forms 2011 Enter your adjusted gross income  (Form 1040, line 38)   1. Ny state tax forms 2011   2. Ny state tax forms 2011 Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. Ny state tax forms 2011       3. Ny state tax forms 2011 Enter your foreign housing deduction (Form 2555, line 50)   3. Ny state tax forms 2011         4. Ny state tax forms 2011 Enter the amount of income from Puerto Rico you are excluding   4. Ny state tax forms 2011       5. Ny state tax forms 2011 Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. Ny state tax forms 2011       6. Ny state tax forms 2011 Add lines 2, 3, 4, and 5   6. Ny state tax forms 2011   7. Ny state tax forms 2011 Add lines 1 and 6. Ny state tax forms 2011 This is your  modified adjusted gross income   7. Ny state tax forms 2011   Figuring the limit. Ny state tax forms 2011    To figure the limit on the amount you can contribute for each designated beneficiary, multiply $2,000 by a fraction. Ny state tax forms 2011 The numerator (top number) is your MAGI minus $95,000 ($190,000 if filing a joint return). Ny state tax forms 2011 The denominator (bottom number) is $15,000 ($30,000 if filing a joint return). Ny state tax forms 2011 Subtract the result from $2,000. Ny state tax forms 2011 This is the amount you can contribute for each beneficiary. Ny state tax forms 2011 You can use Worksheet 7-2. Ny state tax forms 2011 Coverdell ESA Contribution Limit to figure the limit on contributions. Ny state tax forms 2011    Worksheet 7-2. Ny state tax forms 2011 Coverdell ESA Contribution Limit 1. Ny state tax forms 2011 Maximum contribution   1. Ny state tax forms 2011 $2,000 2. Ny state tax forms 2011 Enter your modified adjusted gross income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. Ny state tax forms 2011   3. Ny state tax forms 2011 Enter $190,000 if married filing jointly; $95,000 for all other filers   3. Ny state tax forms 2011   4. Ny state tax forms 2011 Subtract line 3 from line 2. Ny state tax forms 2011 If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. Ny state tax forms 2011   5. Ny state tax forms 2011 Enter $30,000 if married filing jointly; $15,000 for all other filers   5. Ny state tax forms 2011     Note. Ny state tax forms 2011 If the amount on line 4 is greater than or equal to the amount on line 5, stop here. Ny state tax forms 2011 You are not allowed to contribute to a Coverdell ESA for 2013. Ny state tax forms 2011       6. Ny state tax forms 2011 Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. Ny state tax forms 2011 . Ny state tax forms 2011 7. Ny state tax forms 2011 Multiply line 1 by line 6   7. Ny state tax forms 2011   8. Ny state tax forms 2011 Subtract line 7 from line 1   8. Ny state tax forms 2011   Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. Ny state tax forms 2011 Example. Ny state tax forms 2011 Paul, who is single, had a MAGI of $96,500 for 2013. Ny state tax forms 2011 Paul can contribute up to $1,800 in 2013 for each beneficiary, as shown in the illustrated Worksheet 7-2, Coverdell ESA Contribution Limit–Illustrated. Ny state tax forms 2011 Worksheet 7-2. Ny state tax forms 2011 Coverdell ESA Contribution Limit—Illustrated 1. Ny state tax forms 2011 Maximum contribution   1. Ny state tax forms 2011 $2,000 2. Ny state tax forms 2011 Enter your modified adjusted gross  income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. Ny state tax forms 2011 96,500 3. Ny state tax forms 2011 Enter $190,000 if married filing jointly; $95,000 for all other filers   3. Ny state tax forms 2011 95,000 4. Ny state tax forms 2011 Subtract line 3 from line 2. Ny state tax forms 2011 If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. Ny state tax forms 2011 1,500 5. Ny state tax forms 2011 Enter $30,000 if married filing jointly; $15,000 for all other filers   5. Ny state tax forms 2011 15,000   Note. Ny state tax forms 2011 If the amount on line 4 is greater than or equal to the amount on line 5,  stop here. Ny state tax forms 2011 You are not allowed to  contribute to a Coverdell ESA for 2013. Ny state tax forms 2011       6. Ny state tax forms 2011 Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. Ny state tax forms 2011 . Ny state tax forms 2011 100 7. Ny state tax forms 2011 Multiply line 1 by line 6   7. Ny state tax forms 2011 200 8. Ny state tax forms 2011 Subtract line 7 from line 1   8. Ny state tax forms 2011 1,800 Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. Ny state tax forms 2011 Additional Tax on Excess Contributions The beneficiary must pay a 6% excise tax each year on excess contributions that are in a Coverdell ESA at the end of the year. Ny state tax forms 2011 Excess contributions are the total of the following two amounts. Ny state tax forms 2011 Contributions to any designated beneficiary's Coverdell ESA for the year that are more than $2,000 (or, if less, the total of each contributor's limit for the year, as discussed earlier). Ny state tax forms 2011 Excess contributions for the preceding year, reduced by the total of the following two amounts: Distributions (other than those rolled over as discussed later) during the year, and The contribution limit for the current year minus the amount contributed for the current year. Ny state tax forms 2011 Exceptions. Ny state tax forms 2011   The excise tax does not apply if excess contributions made during 2013 (and any earnings on them) are distributed before the first day of the sixth month of the following tax year (June 1, 2014, for a calendar year taxpayer). Ny state tax forms 2011   However, you must include the distributed earnings in gross income for the year in which the excess contribution was made. Ny state tax forms 2011 You should receive Form 1099-Q, Payments From Qualified Education Programs, from each institution from which excess contributions were distributed. Ny state tax forms 2011 Box 2 of that form will show the amount of earnings on your excess contributions. Ny state tax forms 2011 Code “2” or “3” entered in the blank box below boxes 5 and 6 indicate the year in which the earnings are taxable. Ny state tax forms 2011 See Instructions for Recipient on the back of copy B of your Form 1099-Q. Ny state tax forms 2011 Enter the amount of earnings on line 21 of Form 1040 (or Form 1040NR) for the applicable tax year. Ny state tax forms 2011 For more information, see Taxable Distributions , later. Ny state tax forms 2011   The excise tax does not apply to any rollover contribution. Ny state tax forms 2011 Note. Ny state tax forms 2011 Contributions made in one year for the preceding tax year are considered to have been made on the last day of the preceding year. Ny state tax forms 2011 Example. Ny state tax forms 2011 In 2012, Greta's parents and grandparents contributed a total of $2,300 to Greta's Coverdell ESA— an excess contribution of $300. Ny state tax forms 2011 Because Greta did not withdraw the excess before June 1, 2013, she had to pay an additional tax of $18 (6% × $300) when she filed her 2012 tax return. Ny state tax forms 2011 In 2013, excess contributions of $500 were made to Greta's account, however, she withdrew $250 from that account to use for qualified education expenses. Ny state tax forms 2011 Using the steps shown earlier under Additional Tax on Excess Contributions , Greta figures the excess contribution in her account at the end of 2013 as follows. Ny state tax forms 2011 (1)   $500 excess contributions made in 2013     + (2)   $300 excess contributions in ESA at end of 2012     − (2a)   $250 distribution during 2013         $550 excess at end of 2013   × 6%=$33           If Greta limits 2014 contributions to $1,450 ($2,000 maximum allowed − $550 excess contributions from 2013), she will not owe any additional tax in 2014 for excess contributions. Ny state tax forms 2011 Figuring and reporting the additional tax. Ny state tax forms 2011   You figure this excise tax in Part V of Form 5329. Ny state tax forms 2011 Report the additional tax on Form 1040, line 58 (or Form 1040NR, line 56). Ny state tax forms 2011 Rollovers and Other Transfers Assets can be rolled over from one Coverdell ESA to another or the designated beneficiary can be changed. Ny state tax forms 2011 The beneficiary's interest can be transferred to a spouse or former spouse because of divorce. Ny state tax forms 2011 Rollovers Any amount distributed from a Coverdell ESA is not taxable if it is rolled over to another Coverdell ESA for the benefit of the same beneficiary or a member of the beneficiary's family (including the beneficiary's spouse) who is under age 30. Ny state tax forms 2011 This age limitation does not apply if the new beneficiary is a special needs beneficiary. Ny state tax forms 2011 An amount is rolled over if it is paid to another Coverdell ESA within 60 days after the date of the distribution. Ny state tax forms 2011 Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. Ny state tax forms 2011 These are not taxable distributions. Ny state tax forms 2011 Members of the beneficiary's family. Ny state tax forms 2011   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. Ny state tax forms 2011 Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. Ny state tax forms 2011 Brother, sister, stepbrother, or stepsister. Ny state tax forms 2011 Father or mother or ancestor of either. Ny state tax forms 2011 Stepfather or stepmother. Ny state tax forms 2011 Son or daughter of a brother or sister. Ny state tax forms 2011 Brother or sister of father or mother. Ny state tax forms 2011 Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Ny state tax forms 2011 The spouse of any individual listed above. Ny state tax forms 2011 First cousin. Ny state tax forms 2011 Example. Ny state tax forms 2011 When Aaron graduated from college last year he had $5,000 left in his Coverdell ESA. Ny state tax forms 2011 He wanted to give this money to his younger sister, who was still in high school. Ny state tax forms 2011 In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his sister's Coverdell ESA within 60 days of the distribution. Ny state tax forms 2011 Only one rollover per Coverdell ESA is allowed during the 12-month period ending on the date of the payment or distribution. Ny state tax forms 2011 This rule does not apply to the rollover of a military death gratuity or payment from Servicemembers' Group Life Insurance (SGLI). Ny state tax forms 2011 Military death gratuity. Ny state tax forms 2011   If you received a military death gratuity or a payment from Servicemembers' Group Life Insurance (SGLI), you may roll over all or part of the amount received to one or more Coverdell ESAs for the benefit of members of the beneficiary's family (see Members of the beneficiary's family , earlier). Ny state tax forms 2011 Such payments are made to an eligible survivor upon the death of a member of the armed forces. Ny state tax forms 2011 The contribution to a Coverdell ESA from survivor benefits received cannot be made later than 1 year after the date on which you receive the gratuity or SGLI payment. Ny state tax forms 2011   This rollover contribution is not subject to (but is in addition to) the contribution limits discussed earlier under Contribution Limits . Ny state tax forms 2011 The amount you roll over cannot exceed the total survivor benefits you received, reduced by contributions from these benefits to a Roth IRA or other Coverdell ESAs. Ny state tax forms 2011   The amount contributed from the survivor benefits is treated as part of your basis (cost) in the Coverdell ESA, and will not be taxed when distributed. Ny state tax forms 2011 See Distributions , later. Ny state tax forms 2011 The limit of one rollover per Coverdell ESA during a 12-month period does not apply to a military death gratuity or SGLI payment. Ny state tax forms 2011 Changing the Designated Beneficiary The designated beneficiary can be changed. Ny state tax forms 2011 See Members of the beneficiary's family , earlier. Ny state tax forms 2011 There are no tax consequences if, at the time of the change, the new beneficiary is under age 30 or is a special needs beneficiary. Ny state tax forms 2011 Example. Ny state tax forms 2011 Assume the same situation for Aaron as in the last example (see Rollovers , earlier). Ny state tax forms 2011 Instead of closing his Coverdell ESA and paying the distribution into his sister's Coverdell ESA, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his sister. Ny state tax forms 2011 Transfer Because of Divorce If a spouse or former spouse receives a Coverdell ESA under a divorce or separation instrument, it is not a taxable transfer. Ny state tax forms 2011 After the transfer, the spouse or former spouse treats the Coverdell ESA as his or her own. Ny state tax forms 2011 Example. Ny state tax forms 2011 In their divorce settlement, Peg received her ex-husband's Coverdell ESA. Ny state tax forms 2011 In this process, the account was transferred into her name. Ny state tax forms 2011 Peg now treats the funds in this Coverdell ESA as if she were the original owner. Ny state tax forms 2011 Distributions The designated beneficiary of a Coverdell ESA can take a distribution at any time. Ny state tax forms 2011 Whether the distributions are tax free depends, in part, on whether the distributions are equal to or less than the amount of Adjusted qualified education expenses (defined later) that the beneficiary has in the same tax year. Ny state tax forms 2011 See Table 7-3, Coverdell ESA Distributions at a Glance, for highlights. Ny state tax forms 2011 Table 7-3. Ny state tax forms 2011 Coverdell ESA Distributions at a Glance Do not rely on this table alone. Ny state tax forms 2011 It provides only general highlights. Ny state tax forms 2011 See the text for definitions of terms in bold type and for more complete explanations. Ny state tax forms 2011 Question Answer Is a distribution from a Coverdell ESA to pay for a designated beneficiary's qualified education expenses tax free? Generally, yes, to the extent the amount of the distribution is not more than the designated beneficiary's adjusted qualified education expenses. Ny state tax forms 2011 After the designated beneficiary completes his or her education at an eligible educational institution, can amounts remaining in the Coverdell ESA be distributed? Yes. Ny state tax forms 2011 Amounts must be distributed when the designated beneficiary reaches age 30, unless he or she is a special needs beneficiary. Ny state tax forms 2011 Also, certain transfers to members of the beneficiary's family are permitted. Ny state tax forms 2011 Does the designated beneficiary need to be enrolled for a minimum number of courses to take a tax-free distribution? No. Ny state tax forms 2011 Adjusted qualified education expenses. Ny state tax forms 2011   To determine if total distributions for the year are more than the amount of qualified education expenses, reduce total qualified education expenses by any tax-free educational assistance. Ny state tax forms 2011 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. Ny state tax forms 2011 The amount you get by subtracting tax-free educational assistance from your total qualified education expenses is your adjusted qualified education expenses. Ny state tax forms 2011 Tax-Free Distributions Generally, distributions are tax free if they are not more than the beneficiary's adjusted qualified education expenses for the year. Ny state tax forms 2011 Do not report tax-free distributions (including qualifying rollovers) on your tax return. Ny state tax forms 2011 Taxable Distributions A portion of the distributions is generally taxable to the beneficiary if the total distributions are more than the beneficiary's adjusted qualified education expenses for the year. Ny state tax forms 2011 Excess distribution. Ny state tax forms 2011   This is the part of the total distribution that is more than the beneficiary's adjusted qualified education expenses for the year. Ny state tax forms 2011 Earnings and basis. Ny state tax forms 2011   You will receive a Form 1099-Q for each of the Coverdell ESAs from which money was distributed in 2013. Ny state tax forms 2011 The amount of your gross distribution will be shown in box 1. Ny state tax forms 2011 For 2013, instead of dividing the gross distribution between your earnings (box 2) and your basis (already-taxed amount) (box 3), the payer or trustee may report the fair market value (account balance) of the Coverdell ESA as of December 31, 2013. Ny state tax forms 2011 This will be shown in the blank box below boxes 5 and 6. Ny state tax forms 2011   The amount contributed from survivor benefits (see Military death gratuity , earlier) is treated as part of your basis and will not be taxed when distributed. Ny state tax forms 2011 Figuring the Taxable Portion of a Distribution The taxable portion is the amount of the excess distribution that represents earnings that have accumulated tax free in the account. Ny state tax forms 2011 Figure the taxable portion for 2013 as shown in the following steps. Ny state tax forms 2011 Multiply the total amount distributed by a fraction. Ny state tax forms 2011 The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the value (balance) of the account at the end of 2013 plus the amount distributed during 2013. Ny state tax forms 2011 Subtract the amount figured in (1) from the total amount distributed during 2013. Ny state tax forms 2011 The result is the amount of earnings included in the distribution(s). Ny state tax forms 2011 Multiply the amount of earnings figured in (2) by a fraction. Ny state tax forms 2011 The numerator is the adjusted qualified education expenses paid during 2013 and the denominator is the total amount distributed during 2013. Ny state tax forms 2011 Subtract the amount figured in (3) from the amount figured in (2). Ny state tax forms 2011 The result is the amount the beneficiary must include in income. Ny state tax forms 2011 The taxable amount must be reported on Form 1040 or Form 1040NR, line 21. Ny state tax forms 2011 Example. Ny state tax forms 2011 You received an $850 distribution from your Coverdell ESA, to which $1,500 had been contributed before 2013. Ny state tax forms 2011 There were no contributions in 2013. Ny state tax forms 2011 This is your first distribution from the account, so your basis in the account on December 31, 2012, was $1,500. Ny state tax forms 2011 The value (balance) of your account on December 31, 2013, was $950. Ny state tax forms 2011 You had $700 of adjusted qualified education expenses (AQEE) for the year. Ny state tax forms 2011 Using the steps in Figuring the Taxable Portion of a Distribution , earlier, figure the taxable portion of your distribution as follows. Ny state tax forms 2011   1. Ny state tax forms 2011 $850 (distribution) × $1,500 basis + $0 contributions  $950 value + $850 distribution       =$708 (basis portion of distribution)     2. Ny state tax forms 2011 $850 (distribution)−$708 (basis portion of distribution)     =$142 (earnings included in distribution)   3. Ny state tax forms 2011 $142 (earnings) × $700 AQEE  $850 distribution           =$117 (tax-free earnings)     4. Ny state tax forms 2011 $142 (earnings)−$117 (tax-free earnings)=$25 (taxable earnings)                 You must include $25 in income as distributed earnings not used for qualified education expenses. Ny state tax forms 2011 Report this amount on Form 1040, line 21, listing the type and amount of income on the dotted line. Ny state tax forms 2011 Worksheet 7-3, Coverdell ESA–Taxable Distributions and Basis , at the end of this chapter, can help you figure your adjusted qualified education expenses, how much of your distribution must be included in income, and the remaining basis in your Coverdell ESA(s). Ny state tax forms 2011 Coordination With American Opportunity and Lifetime Learning Credits The American opportunity or lifetime learning credit can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA, as long as the same expenses are not used for both benefits. Ny state tax forms 2011 This means the beneficiary must reduce qualified higher education expenses by tax-free educational assistance, and then further reduce them by any expenses taken into account in determining an American opportunity or lifetime learning credit. Ny state tax forms 2011 Example. Ny state tax forms 2011 Derek Green had $5,800 of qualified higher education expenses for 2013, his first year in college. Ny state tax forms 2011 He paid his college expenses from the following sources. Ny state tax forms 2011     Partial tuition scholarship (tax free) $1,500     Coverdell ESA distribution 1,000     Gift from parents 2,100     Earnings from part-time job 1,200           Of his $5,800 of qualified higher education expenses, $4,000 was tuition and related expenses that also qualified for an American opportunity credit. Ny state tax forms 2011 Derek's parents claimed a $2,500 American opportunity credit (based on $4,000 expenses) on their tax return. Ny state tax forms 2011 Before Derek can determine the taxable portion of his Coverdell ESA distribution, he must reduce his total qualified higher education expenses. Ny state tax forms 2011     Total qualified higher education expenses $5,800     Minus: Tax-free educational assistance −1,500     Minus: Expenses taken into account in  figuring American opportunity credit − 4,000     Equals: Adjusted qualified higher education  expenses (AQHEE) $ 300           Since the adjusted qualified higher education expenses ($300) are less than the Coverdell ESA distribution ($1,000), part of the distribution will be taxable. Ny state tax forms 2011 The balance in Derek's account was $1,800 on December 31, 2013. Ny state tax forms 2011 Prior to 2013, $2,100 had been contributed to this account. Ny state tax forms 2011 Contributions for 2013 totaled $400. Ny state tax forms 2011 Using the four steps outlined earlier, Derek figures the taxable portion of his distribution as shown below. Ny state tax forms 2011   1. Ny state tax forms 2011 $1,000 (distribution) × $2,100 basis + $400 contributions  $1,800 value + $1,000 distribution           =$893 (basis portion of distribution)     2. Ny state tax forms 2011 $1,000 (distribution)−$893 (basis portion of distribution)     = $107 (earnings included in distribution)   3. Ny state tax forms 2011 $107 (earnings) × $300 AQHEE  $1,000 distribution       =$32 (tax-free earnings)     4. Ny state tax forms 2011 $107 (earnings)−$32 (tax-free earnings)=$75 (taxable earnings)                 Derek must include $75 in income (Form 1040, line 21). Ny state tax forms 2011 This is the amount of distributed earnings not used for adjusted qualified higher education expenses. Ny state tax forms 2011 Coordination With Qualified Tuition Program (QTP) Distributions If a designated beneficiary receives distributions from both a Coverdell ESA and a QTP in the same year, and the total distribution is more than the beneficiary's adjusted qualified higher education expenses, those expenses must be allocated between the distribution from the Coverdell ESA and the distribution from the QTP before figuring how much of each distribution is taxable. Ny state tax forms 2011 The following two examples illustrate possible allocations. Ny state tax forms 2011 Example 1. Ny state tax forms 2011 In 2013, Beatrice graduated from high school and began her first semester of college. Ny state tax forms 2011 That year, she had $1,000 of qualified elementary and secondary education expenses (QESEE) for high school and $3,000 of qualified higher education expenses (QHEE) for college. Ny state tax forms 2011 To pay these expenses, Beatrice withdrew $800 from her Coverdell ESA and $4,200 from her QTP. Ny state tax forms 2011 No one claimed Beatrice as a dependent, nor was she eligible for an education credit. Ny state tax forms 2011 She did not receive any tax-free educational assistance in 2013. Ny state tax forms 2011 Beatrice must allocate her total qualified education expenses between the two distributions. Ny state tax forms 2011 Beatrice knows that tax-free treatment will be available if she applies her $800 Coverdell ESA distribution toward her $1,000 of qualified education expenses for high school. Ny state tax forms 2011 The qualified expenses are greater than the distribution, making the $800 Coverdell ESA distribution tax free. Ny state tax forms 2011 Next, Beatrice matches her $4,200 QTP distribution to her $3,000 of QHEE, and finds she has an excess QTP distribution of $1,200 ($4,200 QTP − $3,000 QHEE). Ny state tax forms 2011 She cannot use the extra $200 of high school expenses (from (1) above) against the QTP distribution because those expenses do not qualify a QTP for tax-free treatment. Ny state tax forms 2011 Finally, Beatrice figures the taxable and tax-free portions of her QTP distribution based on her $3,000 of QHEE. Ny state tax forms 2011 (See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program for more information. Ny state tax forms 2011 ) Example 2. Ny state tax forms 2011 Assume the same facts as in Example 1 , except that Beatrice withdrew $1,800 from her Coverdell ESA and $3,200 from her QTP. Ny state tax forms 2011 In this case, she allocates her qualified education expenses as follows. Ny state tax forms 2011 Using the same reasoning as in Example 1, Beatrice matches $1,000 of her Coverdell ESA distribution to her $1,000 of QESEE—she has $800 of her distribution remaining. Ny state tax forms 2011 Because higher education expenses can also qualify a Coverdell ESA distribution for tax-free treatment, Beatrice allocates her $3,000 of QHEE between the remaining $800 Coverdell ESA and the $3,200 QTP distributions ($4,000 total). Ny state tax forms 2011   $3,000 QHEE × $800 ESA distribution  $4,000 total distribution = $600 QHEE (ESA)     $3,000 QHEE × $3,200 QTP distribution  $4,000 total distribution = $2,400 QHEE (QTP)   Beatrice then figures the taxable part of her: Coverdell ESA distribution based on qualified education expenses of $1,600 ($1,000 QESEE + $600 QHEE). Ny state tax forms 2011 See Figuring the Taxable Portion of a Distribution , earlier, in this chapter. Ny state tax forms 2011   QTP distribution based on her $2,400 of QHEE (see Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program). Ny state tax forms 2011 The above examples show two types of allocation between distributions from a Coverdell ESA and a QTP. Ny state tax forms 2011 However, you do not have to allocate your expenses in the same way. Ny state tax forms 2011 You can use any reasonable method. Ny state tax forms 2011 Losses on Coverdell ESA Investments If you have a loss on your investment in a Coverdell ESA, you may be able to deduct the loss on your income tax return. Ny state tax forms 2011 You can deduct the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. Ny state tax forms 2011 Your basis is the total amount of contributions to that Coverdell ESA. Ny state tax forms 2011 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. Ny state tax forms 2011 If you have distributions from more than one Coverdell ESA account during a year, you must combine the information (amount of distribution, basis, etc. Ny state tax forms 2011 ) from all such accounts in order to determine your taxable earnings for the year. Ny state tax forms 2011 By doing this, the loss from one ESA account reduces the distributed earnings (if any) from any other ESA account. Ny state tax forms 2011 For examples of the calculation, see Losses on QTP Investments in chapter 8, Qualified Tuition Program. Ny state tax forms 2011 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. Ny state tax forms 2011 Exceptions. Ny state tax forms 2011   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. Ny state tax forms 2011 Made because the designated beneficiary is disabled. Ny state tax forms 2011 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. Ny state tax forms 2011 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. Ny state tax forms 2011 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. Ny state tax forms 2011 Made on account of the attendance of the designated beneficiary at a U. Ny state tax forms 2011 S. Ny state tax forms 2011 military academy (such as the USMA at West Point). Ny state tax forms 2011 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. Ny state tax forms 2011 S. Ny state tax forms 2011 Code) attributable to such attendance. Ny state tax forms 2011 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). Ny state tax forms 2011 Made before June 1, 2014, of an excess 2013 contribution (and any earnings on it). Ny state tax forms 2011 The distributed earnings must be included in gross income for the year in which the excess contribution was made. Ny state tax forms 2011 Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. Ny state tax forms 2011 Figuring the additional tax. Ny state tax forms 2011    Use Part II of Form 5329, to figure any additional tax. Ny state tax forms 2011 Report the amount on Form 1040, line 58, or Form 1040NR, line 56. Ny state tax forms 2011 When Assets Must Be Distributed Any assets remaining in a Coverdell ESA must be distributed when either one of the following two events occurs. Ny state tax forms 2011 The designated beneficiary reaches age 30. Ny state tax forms 2011 In this case, the remaining assets must be distributed within 30 days after the beneficiary reaches age 30. Ny state tax forms 2011 However, this rule does not apply if the beneficiary is a special needs beneficiary. Ny state tax forms 2011 The designated beneficiary dies before reaching age 30. Ny state tax forms 2011 In this case, the remaining assets must generally be distributed within 30 days after the date of death. Ny state tax forms 2011 Exception for Transfer to Surviving Spouse or Family Member If a Coverdell ESA is transferred to a surviving spouse or other family member as the result of the death of the designated beneficiary, the Coverdell ESA retains its status. Ny state tax forms 2011 (“Family member” was defined earlier under Rollovers . Ny state tax forms 2011 ) This means the spouse or other family member can treat the Coverdell ESA as his or her own and does not need to withdraw the assets until he or she reaches age 30. Ny state tax forms 2011 This age limitation does not apply if the new beneficiary is a special needs beneficiary. Ny state tax forms 2011 There are no tax consequences as a result of the transfer. Ny state tax forms 2011 How To Figure the Taxable Earnings When a total distribution is made because the designated beneficiary either reached age 30 or died, the earnings that accumulated tax free in the account must be included in taxable income. Ny state tax forms 2011 You determine these earnings as shown in the following two steps. Ny state tax forms 2011 Multiply the amount distributed by a fraction. Ny state tax forms 2011 The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the balance in the account at the end of 2013 plus the amount distributed during 2013. Ny state tax forms 2011 Subtract the amount figured in (1) from the total amount distributed during 2013. Ny state tax forms 2011 The result is the amount of earnings included in the distribution. Ny state tax forms 2011 For an example, see steps (1) and (2) of the Example under Figuring the Taxable Portion of a Distribution, earlier. Ny state tax forms 2011 The beneficiary or other person receiving the distribution must report this amount on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line. Ny state tax forms 2011 Worksheet 7-3 Instructions. Ny state tax forms 2011 Coverdell ESA—Taxable Distributions and Basis Line G. Ny state tax forms 2011 Enter the total distributions received from all Coverdell ESAs during 2013. Ny state tax forms 2011 Do not include amounts rolled over to another ESA within 60 days (only one rollover is allowed during any 12-month period). Ny state tax forms 2011 Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year for which the contributions were made. Ny state tax forms 2011 Line 2. Ny state tax forms 2011 Your basis (amount already taxed) in this Coverdell ESA as of December 31, 2012, is the total of:   •All contributions to this Coverdell ESA before 2013 •Minus the tax-free portion of any distributions from this Coverdell ESA before 2013. Ny state tax forms 2011   If your last distribution from this Coverdell ESA was before 2013, you must start with the basis in your account as of the end of the last year in which you took a distribution. Ny state tax forms 2011 For years before 2002, you can find that amount on the last line of the worksheet in the Instructions for Form 8606, Nondeductible IRAs, that you completed for that year. Ny state tax forms 2011 For years after 2001, you can find that amount by using the ending basis from the worksheet in Publication 970 for that year. Ny state tax forms 2011 You can determine your basis in this Coverdell ESA as of December 31, 2012, by adding to the basis as of the end of that year any contributions made to that account after the year of the distribution and before 2013. Ny state tax forms 2011 Line 4. Ny state tax forms 2011 Enter the total distributions received from this Coverdell ESA in 2013. Ny state tax forms 2011 Do not include amounts rolled over to another Coverdell ESA within 60 days (only one rollover is allowed during any 12-month period). Ny state tax forms 2011   Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year of the contributions. Ny state tax forms 2011 Line 7. Ny state tax forms 2011 Enter the total value of this Coverdell ESA as of December 31, 2013, plus any outstanding rollovers contributed to the account after 2012, but before the end of the 60-day rollover period. Ny state tax forms 2011 A statement should be sent to you by January 31, 2014, for this Coverdell ESA showing the value on December 31, 2013. Ny state tax forms 2011   A rollover is a tax-free withdrawal from one Coverdell ESA that is contributed to another Coverdell ESA. Ny state tax forms 2011 An outstanding rollover is any amount withdrawn within 60 days before the end of 2013 (November 2 through December 31) that was rolled over after December 31, 2013, but within the 60-day rollover period. Ny state tax forms 2011 Worksheet 7-3. Ny state tax forms 2011 Coverdell ESA—Taxable Distributions and Basis How to complete this worksheet. Ny state tax forms 2011 • • • Complete Part I, lines A through H, on only one worksheet. Ny state tax forms 2011  Complete a separate Part II, lines 1 through 15, for each of your Coverdell ESAs. Ny state tax forms 2011  Complete Part III, the Summary (line 16), on only one worksheet. Ny state tax forms 2011 Part I. Ny state tax forms 2011 Qualified Education Expenses (Complete for total expenses)       A. Ny state tax forms 2011 Enter your total qualified education expenses for 2013   A. Ny state tax forms 2011   B. Ny state tax forms 2011 Enter those qualified education expenses paid for with tax-free educational assistance (for example, tax-free scholarships, veterans' educational benefits, Pell grants, employer-provided educational assistance)   B. Ny state tax forms 2011         C. Ny state tax forms 2011 Enter those qualified higher education expenses deducted on Schedule C or C-EZ (Form 1040). Ny state tax forms 2011 Schedule F (Form 1040), or as a miscellaneous itemized deduction on Schedule A (Form 1040 or 1040NR)   C. Ny state tax forms 2011         D. Ny state tax forms 2011 Enter those qualified higher education expenses on which  an American opportunity or lifetime learning credit was based   D. Ny state tax forms 2011         E. Ny state tax forms 2011 Add lines B, C, and D   D. Ny state tax forms 2011   F. Ny state tax forms 2011 Subtract line E from line A. Ny state tax forms 2011 This is your adjusted qualified education expense for 2013   E. Ny state tax forms 2011   G. Ny state tax forms 2011 Enter your total distributions from all Coverdell ESAs during 2013. Ny state tax forms 2011 Do not include rollovers  or the return of excess contributions (see instructions)   F. Ny state tax forms 2011   H. Ny state tax forms 2011 Divide line F by line G. Ny state tax forms 2011 Enter the result as a decimal (rounded to at least 3 places). Ny state tax forms 2011 If the  result is 1. Ny state tax forms 2011 000 or more, enter 1. Ny state tax forms 2011 000   G. Ny state tax forms 2011 . Ny state tax forms 2011 Part II. Ny state tax forms 2011 Taxable Distributions and Basis (Complete separately for each account) 1. Ny state tax forms 2011 Enter the amount contributed to this Coverdell ESA for 2013, including contributions made for 2013 from January 1, 2014, through April 15, 2014. Ny state tax forms 2011 Do not include rollovers or the return of excess contributions   1. Ny state tax forms 2011   2. Ny state tax forms 2011 Enter your basis in this Coverdell ESA as of December 31, 2012 (see instructions)   2. Ny state tax forms 2011   3. Ny state tax forms 2011 Add lines 1 and 2   3. Ny state tax forms 2011   4. Ny state tax forms 2011 Enter the total distributions from this Coverdell ESA during 2013. Ny state tax forms 2011 Do not include rollovers  or the return of excess contributions (see instructions)   4. Ny state tax forms 2011   5. Ny state tax forms 2011 Multiply line 4 by line H. Ny state tax forms 2011 This is the amount of adjusted qualified  education expense attributable to this Coverdell ESA   5. Ny state tax forms 2011         6. Ny state tax forms 2011 Subtract line 5 from line 4   6. Ny state tax forms 2011         7. Ny state tax forms 2011 Enter the total value of this Coverdell ESA as of December 31, 2013,  plus any outstanding rollovers (see instructions)   7. Ny state tax forms 2011         8. Ny state tax forms 2011 Add lines 4 and 7   8. Ny state tax forms 2011         9. Ny state tax forms 2011 Divide line 3 by line 8. Ny state tax forms 2011 Enter the result as a decimal (rounded to  at least 3 places). Ny state tax forms 2011 If the result is 1. Ny state tax forms 2011 000 or more, enter 1. Ny state tax forms 2011 000   9. Ny state tax forms 2011 . Ny state tax forms 2011       10. Ny state tax forms 2011 Multiply line 4 by line 9. Ny state tax forms 2011 This is the amount of basis allocated to your  distributions, and is tax free   10. Ny state tax forms 2011     Note. Ny state tax forms 2011 If line 6 is zero, skip lines 11 through 13, enter -0- on line 14, and go to line 15. Ny state tax forms 2011       11. Ny state tax forms 2011 Subtract line 10 from line 4   11. Ny state tax forms 2011   12. Ny state tax forms 2011 Divide line 5 by line 4. Ny state tax forms 2011 Enter the result as a decimal (rounded to  at least 3 places). Ny state tax forms 2011 If the result is 1. Ny state tax forms 2011 000 or more, enter 1. Ny state tax forms 2011 000   12. Ny state tax forms 2011 . Ny state tax forms 2011       13. Ny state tax forms 2011 Multiply line 11 by line 12. Ny state tax forms 2011 This is the amount of qualified education  expenses allocated to your distributions, and is tax free   13. Ny state tax forms 2011   14. Ny state tax forms 2011 Subtract line 13 from line 11. Ny state tax forms 2011 This is the portion of the distributions from this  Coverdell ESA in 2013 that you must include in income   14. Ny state tax forms 2011   15. Ny state tax forms 2011 Subtract line 10 from line 3. Ny state tax forms 2011 This is your basis in this Coverdell ESA as of December 31, 2013   15. Ny state tax forms 2011   Part III. Ny state tax forms 2011 Summary (Complete only once)       16. Ny state tax forms 2011 Taxable amount. Ny state tax forms 2011 Add together all amounts on line 14 for all your Coverdell ESAs. Ny state tax forms 2011 Enter here  and include on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line   16. Ny state tax forms 2011   Prev  Up  Next   Home   More Online Publications