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

Student Tax Form

Hr Block Free Tax File1040 Ez Form 2011Income Tax Amendment FormE File 2010 Tax ReturnIrs Gov Amended Return2012 Turbotax Free1040x Tax ReturnIrs Forms For 2011Free Filing Of State Taxes OnlineAmended Tax Returns More:label_amended_20tax_20returns More:taxesFederal Ez Tax Form 2011E Filing Income TaxFree File 2012 Taxes Online2012 1040aPrintable 1040ez Federal Tax FormFree State And Federal Tax Filing For Low IncomeFiling Back Taxes Online Free1040ez Online Free1040ez Form Online2010 Form 1040Free Tax Filing Online For MilitaryWhere Can I File Back Taxes OnlineFile Federal State Taxes FreeTurbo Tax Filing 2012Free Tax Preparation Online1040 Ez 2013Filing Back Taxes OnlineFree E-file State Taxes OnlyFree Tax Filing For State And FederalHow To File A 2011 Tax Return For FreeH And R Block OnlineFile Taxes FreeE File Income Tax ReturnAmending A 2010 Tax Return2011 Irs Forms PublicationsH&r Block E FileForgot To File Taxes 2012Https Www Freefilefillableforms ComTax Act 2012 Free DownloadFree 2011 Tax Filing

Student Tax Form

Student tax form 5. Student tax form   Illustrated Examples Table of Contents Illustrated Example of Form 4563Line 1. Student tax form Line 2. Student tax form Lines 3a and 3b. Student tax form Lines 4a and 4b. Student tax form Line 5. Student tax form Line 6. Student tax form Line 7. Student tax form Line 9. Student tax form Line 15. Student tax form Illustrated Example of Form 5074Part I. Student tax form Part II. Student tax form Part III. Student tax form Illustrated Example of Form 8689Part I. Student tax form Part II. Student tax form Part III. Student tax form Part IV. Student tax form Use the following examples to help you complete the correct attachment to your Form 1040. Student tax form The completed form for each example is shown on the pages that follow. Student tax form Illustrated Example of Form 4563 John Black is a U. Student tax form S. Student tax form citizen, single, and under 65. Student tax form He was a bona fide resident of American Samoa during all of 2013. Student tax form John must file Form 1040 because his gross income from sources outside the possessions ($10,000 of dividends from U. Student tax form S. Student tax form corporations) is more than his adjusted filing requirement for single filers under 65. Student tax form (See Filing Requirement if Possession Income Is Excluded in chapter 4. Student tax form ) Because he must file Form 1040 (not illustrated), he fills out Form 4563 to determine the amount of income from American Samoa he can exclude. Student tax form See Bona Fide Resident of American Samoa in chapter 3. Student tax form Completing Form 4563. Student tax form   John enters his name and social security number at the top of the form. Student tax form Line 1. Student tax form   On Form 4563 (see later), John enters the date his bona fide residence began in American Samoa, June 2, 2012. Student tax form Because he is still a bona fide resident, he enters “not ended” in the second blank space. Student tax form Line 2. Student tax form   He checks the box labeled “Rented house or apartment” to describe his type of living quarters in American Samoa. Student tax form Lines 3a and 3b. Student tax form   He checks “No” on line 3a because no family members lived with him. Student tax form He leaves line 3b blank. Student tax form Lines 4a and 4b. Student tax form   He checks “No” on line 4a because he did not maintain a home outside American Samoa. Student tax form He leaves line 4b blank. Student tax form Line 5. Student tax form   He enters the name and address of his employer, Samoa Products Co. Student tax form It is a private American Samoa corporation. Student tax form Line 6. Student tax form   He enters the dates of his 2-week vacation to New Zealand from November 11 to November 25. Student tax form That was his only trip outside American Samoa during the year. Student tax form Line 7. Student tax form   He enters the $24,000 in wages he received from Samoa Products Co. Student tax form Line 9. Student tax form   He received $220 in dividends from an American Samoa corporation, which he enters here. Student tax form He also received $10,000 of dividends from a U. Student tax form S. Student tax form corporation, but he will enter that amount only on his Form 1040 because the U. Student tax form S. Student tax form dividends do not qualify for the possession exclusion. Student tax form Line 15. Student tax form   John totals the amounts on lines 7 and 9 to get the amount he can exclude from his gross income in 2013. Student tax form He will not enter his excluded income on Form 1040. Student tax form However, he will attach his completed Form 4563 to his Form 1040. Student tax form Illustrated Example of Form 5074 Tracy Grey is a U. Student tax form S. Student tax form citizen who is a self-employed fisheries consultant with a tax home in New York. Student tax form Her only income for 2013 was net self-employment income of $80,000. Student tax form Of the $80,000, $20,000 was from consulting work in Guam and the rest was earned in the United States. Student tax form Thinking she would owe tax to Guam on the $20,000, Tracy made estimated tax payments of $1,409 to Guam. Student tax form She was not a bona fide resident of Guam during 2013. Student tax form Tracy completes Form 1040 (not illustrated), reporting her worldwide income. Student tax form Because the adjusted gross income on her Form 1040 was $50,000 or more and at least $5,000 of her gross income is from Guam, Tracy must file Form 5074 with her Form 1040. Student tax form All amounts reported on Form 5074 are also reported on her Form 1040. Student tax form See U. Student tax form S. Student tax form Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) in chapter 3. Student tax form Completing Form 5074. Student tax form   Tracy enters her name and social security number at the top of the form. Student tax form Part I. Student tax form   On Form 5074 (see later), Tracy enters her self-employment income from Guam ($20,000) on line 6. Student tax form She has no other income from Guam, so the total on line 16 is $20,000. Student tax form Part II. Student tax form   Tracy's only adjustment in Part II is the deductible part of the self-employment tax on her net income earned in Guam. Student tax form She enters $1,413 on line 21 and line 28. Student tax form Her adjusted gross income on line 29 is $18,587. Student tax form Part III. Student tax form   Tracy made estimated tax payments of $1,409. Student tax form She enters this amount on line 30, and again on line 34 as the total payments. Student tax form Illustrated Example of Form 8689 Juan and Carla Moreno live and work in the United States. Student tax form In 2013, they received $14,400 in income from the rental of a condominium they own in the U. Student tax form S. Student tax form Virgin Islands (USVI). Student tax form The rental income was deposited in a bank in the USVI and they received $500 of interest on this income. Student tax form They were not bona fide residents of the USVI during the entire tax year. Student tax form The Morenos complete Form 1040 (not illustrated), reporting their income from all sources, including their interest income and the income and expenses from their USVI rental property (reported on Schedule E (Form 1040)). Student tax form The Morenos take the standard deduction for married filing jointly, both are under 65, and they have no dependents. Student tax form The Morenos also complete Form 8689 to determine how much of their U. Student tax form S. Student tax form tax shown on Form 1040, line 61 (with certain adjustments), must be paid to the U. Student tax form S. Student tax form Virgin Islands. Student tax form See U. Student tax form S. Student tax form Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) in chapter 3. Student tax form The Morenos file their Form 1040, attaching Form 8689 and all other schedules, with the Internal Revenue Service. Student tax form At the same time, they send a copy of their Form 1040 with all attachments, including Form 8689, to the Virgin Islands Bureau of Internal Revenue. Student tax form The Virgin Islands Bureau of Internal Revenue will process this copy. Student tax form Completing Form 8689. Student tax form   Juan and Carla enter their names and Juan's social security number at the top of the form. Student tax form Part I. Student tax form   The Morenos enter their income from the USVI in Part I (see later). Student tax form The interest income is entered on line 2 and the net rental income of $6,200 ($14,400 of rental income minus $8,200 of rental expenses) is entered on line 11. Student tax form The Morenos' total USVI income of $6,700 is entered on line 16. Student tax form Part II. Student tax form   The Morenos have no adjustments to their USVI income, so they enter zero (-0-) on line 28, and $6,700 on line 29. Student tax form Their USVI adjusted gross income (AGI) is $6,700. Student tax form Part III. Student tax form   On line 30, the Morenos enter the amount from Form 1040, line 61 ($4,539). Student tax form Their Form 1040 does not show any entries required on line 31, so they leave that line blank and enter $4,539 on line 32. Student tax form   The Morenos enter their worldwide AGI, $54,901 (Form 1040, line 38), on line 33. Student tax form Next, they find what percentage of their AGI is from USVI sources ($6,700 ÷ $54,901 = 0. Student tax form 122) and enter that as a decimal on line 34. Student tax form They then apply that percentage to the U. Student tax form S. Student tax form tax entered on line 32 to find the amount of U. Student tax form S. Student tax form tax allocated to USVI income ($4,539 x 0. Student tax form 122 = $554), and enter that amount on line 35. Student tax form Part IV. Student tax form   Part IV is used to show payments of income tax to the USVI only. Student tax form The Morenos had no tax withheld by the U. Student tax form S. Student tax form Virgin Islands, but made estimated tax payments to the USVI of $400, which they entered on lines 37 and 39. Student tax form They include this amount ($400) in the total payments on Form 1040, line 72. Student tax form On the dotted line next to the entry space for line 72, they enter “Form 8689” and show the amount. Student tax form The Morenos do not complete Form 1116 because they receive credit on Form 1040, line 72, for the tax paid to the USVI. Student tax form   The income tax they owe to the USVI ($154) is shown on Form 8689, line 44. Student tax form They enter this amount on line 45. Student tax form They also include this additional amount ($154) on the dotted line next to the entry space and in the total on Form 1040, line 72. Student tax form The Morenos will pay their USVI tax at the same time they file the copy of their U. Student tax form S. Student tax form income tax return with the U. Student tax form S. Student tax form Virgin Islands. Student tax form This image is too large to be displayed in the current screen. Student tax form Please click the link to view the image. Student tax form Form 4563, page 1 for John Black This image is too large to be displayed in the current screen. Student tax form Please click the link to view the image. Student tax form Form 5074, for Tracy Grey This image is too large to be displayed in the current screen. Student tax form Please click the link to view the image. Student tax form Form 8689, page 1 for Juan and Carla Moreno Prev  Up  Next   Home   More Online Publications

Compliance & Enforcement Topics

 

Print - Click this link to Print this page

Whistleblower - Informant Award

The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects.

 


Fiscal 2014 Sequester Notice from Whistleblower Office dated October 1, 2013:  Impact on whistleblower payments.

Fiscal 2013 Sequester Notice from Whistleblower Office dated March 1, 2013: Impact on whistleblower payments.

Treasury proposed regulations to implement 26 USC 7623, as amended, on December 18, 2012. The public comment period has officially closed and the comments received are under evaluation. The IRS often receives comments on proposed regulations after the official comment period has closed and may consider late submissions in preparing final regulations. 

 


The Whistleblower Office has developed new rules that became effective August 1, 2012. We are providing the three Interim Guidance memoranda below. 


Deputy Commissioner for Services and Enforcement Memorandum dated June 20, 2012

 


Who can get an award?

The IRS may pay awards to people who provide specific and credible information to the IRS if the information results in the collection of taxes, penalties, interest or other amounts from the noncompliant taxpayer.

The IRS is looking for solid information, not an “educated guess” or unsupported speculation. We are also looking for a significant Federal tax issue - this is not a program for resolving personal problems or disputes about a business relationship.

What are the rules for getting an award?

The law provides for two types of awards. If the taxes, penalties, interest and other amounts in dispute exceed $2 million, and a few other qualifications are met, the IRS will pay 15 percent to 30 percent of the amount collected. If the case deals with an individual, his or her annual gross income must be more than $200,000. If the whistleblower disagrees with the outcome of the claim, he or she can appeal to the Tax Court. These rules are found at Internal Revenue Code IRC Section 7623(b) - Whistleblower Rules.

The IRS also has an award program for other whistleblowers - generally those who do not meet the dollar thresholds of $2 million in dispute or cases involving individual taxpayers with gross income of less that $200,000. The awards through this program are less, with a maximum award of 15 percent up to $10 million. In addition, the awards are discretionary and the informant cannot dispute the outcome of the claim in Tax Court. The rules for these cases are found at Internal Revenue Code IRC Section 7623(a) - Informant Claims Program, and some of the rules are different from those that apply to cases involving more than $2 million.

If you decide to submit information and seek an award for doing so, use IRS Form 211. The same form is used for both award programs.

More Information

What Happens to a Claim for an Informant Award (Whistleblower)
Procedures used and the criteria followed to identify and process informant cases

Whistleblower Law
A brief synopsis of what the new whistleblower law entails. This is the most significant change to the Services’ approach to informant awards in 140 years

How Do You File a Whistleblower Award Claim
Step by step procedures to follow to file an informant claim for award

Confidentiality and Disclosure for Whistleblowers
The rules governing confidentiality of informant information

IRC Section 7623(b) - Whistleblower Rules
The requirements of the new rules enacted in IRC Section 7623(b), the Whistleblower Program

IRC Section 7623(a) - Informant Claims Program
The requirement of the rules governing claims that do not meet the requirements of the provisions in the whistleblower program under IRC Section 7623(b). These claims are part of the Informant Claims Program

IRS Form 211
Application for Award for Original Information

News Release IR-2007-201
Procedure Unveiled for Reporting Violations of the Tax Law, Making Reward Claims

Notice 2008-4 Guidance to the public on how to file claims
Claims Submitted to the IRS Whistleblower Office under Section 7623

History of the Whistleblower/Informant Program
Historical information on the evolution of the concept of paying for leads from its inception up to the current law followed today

Realignment of Informant Claims Examination Unit into Whistleblower Office
The Informant Claims Examination Unit in Ogden, Utah has been realigned with the Whistleblower Office. Their new name is Whistleblower Office - Ogden.

Information and Whistleblower Awards

  • IRM 25.2.1, Receiving Information — This chapter provides procedures and guidance for all Service personnel to follow when receiving information dealing with whistleblowers’ claims for award.
  • IRM 25.2.2, Whistleblower Awards — This chapter provides procedures and guidance for all Service personnel to follow when dealing with payment of whistleblowers’ claims for award.

Whistleblower Office At-a-Glance
 

Annual Reports

Reporting other information to the IRS

If you have information about tax noncompliance but are not interested in an award, or you have other information you believe may be of interest to the IRS:

  • For information on how to Report Suspected Tax Fraud Activity, if you have information about an individual or company you suspect is not complying with the tax law, and you do not want to seek an award . You can remain anonymous
Page Last Reviewed or Updated: 30-Sep-2013

The Student Tax Form

Student tax form Publication 970 - Additional Material Table of Contents AppendicesAppendix A. Student tax form Illustrated Example of Education Credits Glossary Appendices The following appendices are provided to help you claim the education benefits that will give you the lowest tax. Student tax form Appendix A—An illustrated example of education credits, including a filled-in Form 8863 showing how to claim both the American opportunity credit and lifetime learning credit for 2013. Student tax form Appendix B—A chart summarizing some of the major differences between the education tax benefits discussed in this publication. Student tax form It is intended only as a guide. Student tax form Look in this publication for more complete information. Student tax form   Appendix A. Student tax form Illustrated Example of Education Credits Dave and Valerie Jones are married and on their 2013 joint tax return they claim exemptions for their two dependent children, Sean (age 21, social security number: 000-00-0001) and Carey (age 18, social security number: 000–00–0002). Student tax form Their modified adjusted gross income (MAGI) on Form 1040, line 38 is $110,000. Student tax form Because Dave and Valerie have unusually high itemized deductions, their taxable income is $10,000 and their tax before credits is $1,000. Student tax form Sean enrolled as a full-time graduate student in August 2013 at California State College. Student tax form He graduated with his bachelor's degree in 2012 and did not attend school from January 2013 through July 2013. Student tax form His parents claimed the Hope Scholarship Credit for Sean for 2008 and the American opportunity credit for Sean for 2010, 2011, and 2012. Student tax form Carey enrolled full time as a freshman at the same college in January 2013 to begin working on her bachelor's degree. Student tax form In 2013, Dave and Valerie paid $7,000 in tuition for Sean and $8,500 in tuition for Carey. Student tax form California State College issued two Forms 1098-T, one for Sean and one for Carey, and sent them to the Joneses' residence. Student tax form California State College reports amounts billed in 2013 instead of amounts paid during 2013. Student tax form In completing Form 8863, the Joneses use the amounts they paid. Student tax form Neither Sean nor Carey has been convicted of a felony for possession or distribution of a controlled substance before the end of 2013. Student tax form Dave and Valerie figure their education credits by completing Form 8863. Student tax form They begin Form 8863 on page 2 before completing Part I on page 1. Student tax form Because the Joneses have two eligible students, they will complete page 2 twice, once for their son, Sean, and once for their daughter, Carey. Student tax form The Joneses decide to complete Part III for Carey first, as shown later. Student tax form They carry over the amount of $2,500 entered on Part III, line 30, to Part I, line 1. Student tax form The Joneses complete a separate Part III for their son Sean. Student tax form They check the “Yes” box on line 23, determine that Sean is not eligible for the American opportunity credit, and go to line 31 as instructed. Student tax form They figure their line 31 adjusted qualified education expenses for Sean to be $7,000. Student tax form Once they have completed Part III for each student, they figure their credits. Student tax form The Joneses figure their refundable American opportunity credit of $1,000 by completing Form 8863, Part I, lines 1 through 8. Student tax form They enter the amount from line 8, $1,000, on line 66 of their Form 1040. Student tax form The Joneses enter $7,000 on Part II, line 10, of Form 8863 and figure their tentative lifetime learning credit for 2013 to be $1,400 (line 12). Student tax form They cannot claim the full amount because their MAGI of $110,000 is greater than $107,000. Student tax form They enter the reduced amount of $1,190 (figured on Part II, line 18) on the Credit Limit Worksheet, line 1. Student tax form The $1,190 is added to their nonrefundable American opportunity credit ($1,500 on line 2 of the Credit Limit Worksheet) for a total nonrefundable credit of $2,690. Student tax form The Joneses enter $1,000 on line 7 of the Credit Limit Worksheet, which is the smaller of their tax from line 46 of their Form 1040 (which is $1,000) or the $2,690 on line 3 of the Credit Limit Worksheet. Student tax form They enter $1,000 on line 19, Part II of Form 8863 and on line 49 of Form 1040. Student tax form This image is too large to be displayed in the current screen. Student tax form Please click the link to view the image. Student tax form Form 1098-T Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions) 1. Student tax form Total qualified education expenses paid for or on behalf of the student in 2013 for the academic period 8,500 2. Student tax form Less adjustments:     a. Student tax form Tax-free educational assistance received in 2013 allocable to the academic period   0     b. Student tax form Tax-free educational assistance received in 2014 (and before you file your 2013 tax return) allocable to the academic period   0     c. Student tax form Refunds of qualified education expenses paid in 2013 if the refund is received in 2013 or in 2014 before you file your 2013 tax return   0   3. Student tax form Total adjustments (add lines 2a, 2b, and 2c) 0 4. Student tax form Adjusted qualified education expenses. Student tax form Subtract line 3 from line 1. Student tax form If zero or less, enter -0- 8,500 This image is too large to be displayed in the current screen. Student tax form Please click the link to view the image. Student tax form Form 1098-T Adjusted Qualified Education Expenses Worksheet (Form 8863 instructions) 1. Student tax form Total qualified education expenses paid for or on behalf of the student in 2013 for the academic period 7,000 2. Student tax form Less adjustments:     a. Student tax form Tax-free educational assistance received in 2013 allocable to the academic period   0     b. Student tax form Tax-free educational assistance received in 2014 (and before you file your 2013 tax return) allocable to the academic period   0     c. Student tax form Refunds of qualified education expenses paid in 2013 if the refund is received in 2013 or in 2014 before you file your 2013 tax return   0   3. Student tax form Total adjustments (add lines 2a, 2b, and 2c) 0 4. Student tax form Adjusted qualified education expenses. Student tax form Subtract line 3 from line 1. Student tax form If zero or less, enter -0- 7,000 Credit Limit Worksheet (Form 8863 instructions) Nonrefundable Credit Worksheet 1. Student tax form Enter the amount from Form 8863, line 18 1. Student tax form 1,190 2. Student tax form Enter the amount from Form 8863, line 9 2. Student tax form 1,500 3. Student tax form Add lines 1 and 2 3. Student tax form 2,690 4. Student tax form Enter the amount from: Form 1040, line 46; or Form 1040A, line 28 4. Student tax form 1,000 5. Student tax form Enter the amount from either: Form 1040, lines 47 and 48, and the amount from Schedule R included on Form 1040, line 53; or Form 1040A, lines 29 and 30 5. Student tax form 0 6. Student tax form Subtract line 5 from line 4 6. Student tax form 1,000 7. Student tax form   Enter the smaller of line 3 or line 6 here and on Form 8863, line 19 7. Student tax form 1,000 This image is too large to be displayed in the current screen. Student tax form Please click the link to view the image. Student tax form Form 8863 for Dave and Valerie Jones This image is too large to be displayed in the current screen. Student tax form Please click the link to view the image. Student tax form Carey Jones page 2 This image is too large to be displayed in the current screen. Student tax form Please click the link to view the image. Student tax form Filled-in Form 8863 Jones page 2 Appendix B. Student tax form Highlights of Education Tax Benefits for Tax Year 2013 This chart highlights some differences among the benefits discussed in this publication. Student tax form See the text for definitions and details. Student tax form Do not rely on this chart alone. Student tax form    Caution:You generally cannot claim more than one benefit for the same education expense. Student tax form   Scholarships,  Fellowships, Grants, and  Tuition  Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Tuition and Fees Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distributions† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What is your  benefit? Amounts received may not be taxable   Credits can reduce the amount of tax you have to pay. Student tax form    40% of the credit may be refundable (limited to $1,000 per student). Student tax form Credits can reduce amount of tax you must pay Can deduct interest paid Can deduct expenses Earnings not  taxed Earnings not taxed No 10%  additional tax on early distribution Interest not taxed Employer benefits not taxed Can deduct expenses What is the annual limit? None $2,500 credit per student $2,000 credit per tax return     $2,500 deduction $4,000 deduction $2,000 contribution per beneficiary None Amount of qualified  education expenses Amount of qualified  education expenses $5,250 exclusion Amount of qualifying work-related education expenses What expenses  qualify besides  tuition and required enrollment fees? Course-related expenses such as fees, books, supplies, and equipment Course-related books, supplies, and equipment Amounts paid for required books, etc. Student tax form , that must be paid to the educational institution, etc. Student tax form , are required fees Books Supplies Equipment  Room & board  Transportation  Other necessary expenses  None Books Supplies Equipment  Expenses for special needs services  Payments to QTP  Higher education: Room & board if  at least half-time  student  Elem/sec (K–12) education: Tutoring Room & board Uniforms Transportation Computer  access Supplementary expenses Books Supplies Equipment  Room & board if  at least half-time student  Expenses for special needs services Books Supplies Equipment  Room & board if  at least half-time student  Expenses for special needs services Payments to Coverdell ESA  Payments to QTP Books Supplies Equipment Transportation  Travel  Other necessary expenses   Scholarships,  Fellowships, Grants, and  Tuition  Reductions American Opportunity Credit Lifetime Learning Credit Student Loan Interest Deduction Tuition and Fees Deduction Coverdell ESA† Qualified Tuition Program (QTP)† Education Exception to Additional Tax on Early IRA Distributions† Education Savings Bond Program† Employer- Provided Educational Assistance† Business Deduction for Work-Related Education What education qualifies? Undergraduate & graduate  K–12 Undergraduate & graduate Undergraduate & graduate  Courses to acquire or improve job skills    Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate  K–12 Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate Undergraduate & graduate Required by employer or law to keep present job, salary, status  Maintain or improve job skills What are some of the other  conditions that  apply? Must be in degree or vocational program  Payment of tuition and required fees must be allowed under the grant Can be claimed for only 4 tax years (which includes years Hope Scholarship Credit claimed)  Must be enrolled at least half-time in degree program  No felony drug conviction(s)  Must not have completed first 4 years of postsecondary education before end of preceding tax year. Student tax form   No other conditions Must have been at least half-time  student in degree program Cannot claim both deduction & education credit for same student in same year Assets must be distributed at age 30 unless special  needs beneficiary No other conditions No other conditions Applies only to qualified series  EE bonds issued after 1989 or series I bonds No other conditions Cannot be to  meet minimum educational requirements of present trade/business  Cannot qualify  you for new trade/business   In what income  range do benefits  phase out? No phaseout $80,000 – $90,000  $160,000 – $180,000 for joint returns $53,000 – $63,000  $107,000 – $127,000 for joint returns $60,000 – $75,000  $125,000 –  $155,000 for  joint returns  $60,000 – $80,000  $130,000 –  $160,000 for  joint returns  $95,000 – $110,000  $190,000 – $220,000 for  joint returns No phaseout No phaseout   No phaseout No phaseout † Any nontaxable distribution is limited to the amount that does not exceed qualified education expenses. Student tax form Glossary The education benefits included in this publication were enacted over many years, leading to a number of common terms being defined differently from one benefit to the next. Student tax form For example, an eligible educational institution means one thing when determining if earnings from a Coverdell education savings account are not taxable and something else when determining if a scholarship or fellowship is not taxable. Student tax form For each term listed below that has more than one definition, the definition for each education benefit is listed. Student tax form Academic period:   A semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Student tax form If an educational institution uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Student tax form Adjusted qualified education expenses (AQEE):    Qualified education expenses (defined later) reduced by any tax-free educational assistance, such as a tax-free scholarship or employer-provided educational assistance. Student tax form They must also be reduced by any qualified education expenses deducted elsewhere on your return, used to determine an education credit or other benefit, or used to determine a tax-free distribution. Student tax form For information on a specific benefit, see the appropriate chapter in this publication. Student tax form Candidate for a degree:   A student who meets either of the following requirements. Student tax form Attends a primary or secondary school or pursues a degree at a college or university, or Attends an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. Student tax form Designated beneficiary:   The individual named in the document creating the account/plan who is to receive the benefit of the funds in the account/plan. Student tax form Eligible educational institution:    American opportunity credit. Student tax form Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Student tax form It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Student tax form Coverdell education savings account (ESA). Student tax form Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Student tax form It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Student tax form Also included is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. Student tax form Education savings bond program. Student tax form Same as American opportunity credit in this category. Student tax form IRA, early distributions from. Student tax form Same as American opportunity credit in this category. Student tax form Lifetime learning credit. Student tax form Same as American opportunity credit in this category. Student tax form Qualified tuition program (QTP). Student tax form Same as American opportunity credit in this category. Student tax form Scholarships and fellowships. Student tax form An institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Student tax form Student loan, cancellation of. Student tax form Same as Scholarships and fellowships in this category. Student tax form Student loan interest deduction. Student tax form Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. Student tax form It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Student tax form Also included is an institution that conducts an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. Student tax form Tuition and fees deduction. Student tax form Same as American opportunity credit in this category. Student tax form Eligible student:    American opportunity credit. Student tax form A student who meets all of the following requirements for the tax year for which the credit is being determined. Student tax form Did not have expenses that were used to figure an American opportunity or Hope Scholarship Credit in any 4 earlier tax years. Student tax form Had not completed the first 4 years of postsecondary education (generally the freshman through senior years). Student tax form For at least one academic period beginning in the tax year, was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. Student tax form Was free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year. Student tax form Lifetime learning credit. Student tax form A student who is enrolled in one or more courses at an eligible educational institution. Student tax form Student loan interest deduction. Student tax form A student who was enrolled at least half-time in a program leading to a postsecondary degree, certificate, or other recognized educational credential at an eligible educational institution. Student tax form Tuition and fees deduction. Student tax form A student who is enrolled in one or more courses at an eligible educational institution. Student tax form Half-time student:   A student who 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. Student tax form Modified adjusted gross income (MAGI):    American opportunity credit. Student tax form Adjusted gross income (AGI) as figured on the federal income tax return, 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. Student tax form Coverdell education savings account (ESA). Student tax form Same as American opportunity credit in this category. Student tax form Education savings bond program. Student tax form Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any savings bond interest exclusion and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, Exclusion of income by bona fide residents of Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for student loan interest, Deduction for tuition and fees, and Deduction for domestic production activities. Student tax form Lifetime learning credit. Student tax form Same as American opportunity credit in this category. Student tax form Student loan interest deduction. Student tax form Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any student loan interest deduction, tuition and fees deduction, or domestic production activities deduction, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Student tax form Tuition and fees deduction. Student tax form Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any tuition and fees deduction, or domestic production activities deduction, and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Student tax form Phaseout:   The amount of credit or deduction allowed is reduced when modified adjusted gross income (MAGI) is greater than a specified amount of income. Student tax form Qualified education expenses:   See pertinent chapter for specific items. Student tax form    American opportunity credit. Student tax form Tuition and certain related expenses (including student activity fees) required for enrollment or attendance at an eligible educational institution. Student tax form Books, supplies, and equipment needed for a course of study are included even if not purchased from the educational institution. Student tax form Does not include expenses for room and board. Student tax form Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program. Student tax form Coverdell education savings account (ESA). Student tax form Expenses related to or required for enrollment or attendance of the designated beneficiary at an eligible elementary, secondary, or postsecondary school. Student tax form Many specialized expenses included for K–12. Student tax form Also includes expenses for special needs services and contribution to qualified tuition program (QTP). Student tax form Education savings bond program. Student tax form Tuition and fees required to enroll at or attend an eligible educational institution. Student tax form Also includes contributions to a qualified tuition program (QTP) or Coverdell education savings account (ESA). Student tax form Does not include expenses for room and board. Student tax form Does not include expenses for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. Student tax form IRA, early distributions from. Student tax form Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half-time. Student tax form Also includes expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance. Student tax form Lifetime learning credit. Student tax form Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Student tax form Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Student tax form Does not include expenses for room and board. Student tax form Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program, unless taken by the student to acquire or improve job skills. Student tax form Qualified tuition program (QTP). Student tax form Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half-time. Student tax form Includes expenses for special needs services and computer access. Student tax form Scholarships and fellowships. Student tax form Expenses for tuition and fees required to enroll at or attend an eligible educational institution, and course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Student tax form Course-related items must be required of all students in the course of instruction. Student tax form Student loan interest deduction. Student tax form Total costs of attending an eligible educational institution, including graduate school (however, limitations may apply to the cost of room and board allowed). Student tax form Tuition and fees deduction. Student tax form Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Student tax form Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Student tax form Recapture:   To include as income on your current year's return an amount allowed as a deduction in a prior year. Student tax form To include as tax on your current year's return an amount allowed as a credit in a prior year. Student tax form Rollover:   A tax-free distribution to you of cash or other assets from a tax-favored plan that you contribute to another tax-favored plan. Student tax form Transfer:   A movement of funds in a tax-favored plan from one trustee directly to another, either at your request or at the trustee's request. Student tax form Prev  Up  Next   Home   More Online Publications