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2006 Taxes Online

Irs Free EfileTaxact 2011Amend Tax FormsAmend 2009 Tax Return OnlineFile My 2011 Taxes Free1040x Form InstructionsFile State Return FreeCompleted 1040x Example2007 Tax SoftwareTax Ammendment2011 Tax Forms 1040ezForm 1040 Ez2011 TaxesExpress 10401040ez Income Tax FormFile 1040ez For FreeWhen Can I File An Amended Tax Return For 2012Free Tax Filing 2013 Low IncomeForm 1040a1040 Nr Tax FormIrs Free Tax Filing 20122012income TaxH And R Block Free File2011 Free Tax Software2012 Form 1040ezFile 2012 Taxes For Free OnlineBankruptcy Back TaxesFree Fillable FormsHow Do I Do An Amended Tax ReturnAmmend 2010 Taxes2011 Amended Tax Return FormAmended Federal Income Tax ReturnIncome Tax Software 2012Form 1040 V Payment VoucherCan I File 2012 Taxes Without Filing 2011How To Amend State Tax ReturnFederal Tax Return 1040ezFree Efile Tax ReturnOhio 1040xFree State Tax Fileing

2006 Taxes Online

2006 taxes online Publication 525 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionAssignment of income. 2006 taxes online Ordering forms and publications. 2006 taxes online Tax questions. 2006 taxes online Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 525, such as legislation enacted after it was published, go to www. 2006 taxes online irs. 2006 taxes online gov/pub525. 2006 taxes online What's New Health flexible spending arrangements (health FSAs) under cafeteria plans. 2006 taxes online  For plan years beginning after 2012, health FSAs are subject to a $2,500 limit on salary reduction contributions. 2006 taxes online For plan years beginning after 2013, the $2,500 limit is subject to an inflation adjustment. 2006 taxes online Itemized deduction for medical expenses. 2006 taxes online  Beginning in 2013, an itemized deduction is generally allowed for uncompensated medical expenses that exceed 10% of adjusted gross income (AGI). 2006 taxes online If an individual or an individual’s spouse was born before January 2, 1949, the deduction is allowed for expenses that exceed 7. 2006 taxes online 5% of AGI. 2006 taxes online Additional Medicare Tax. 2006 taxes online  Beginning in 2013, a 0. 2006 taxes online 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). 2006 taxes online For more information, see Form 8959 and its instructions. 2006 taxes online Net Investment Income Tax (NIIT). 2006 taxes online  Beginning in 2013, the NIIT applies at a rate of 3. 2006 taxes online 8% to certain net investment income of individuals, estates and trusts that have income above the threshold amounts. 2006 taxes online Individuals will owe the tax if they have net investment income and also have modified adjusted gross income over the following thresholds for their filing status: Married filing jointly, $250,000; Married filing separately, $125,000; Single, $200,000; Head of household (with qualifying person), $200,000; Qualifying widow(er) with dependent child, $250,000. 2006 taxes online For more information, see Form 8960 and its instructions. 2006 taxes online Reminders Terrorist attacks. 2006 taxes online  You can exclude from income certain disaster assistance, disability, and death payments received as a result of a terrorist or military action. 2006 taxes online For more information, see Publication 3920, Tax Relief for Victims of Terrorist Attacks. 2006 taxes online Gulf oil spill. 2006 taxes online  You are required to include in your gross income payments you received for lost wages, lost business income, or lost profits. 2006 taxes online See Gulf oil spill under Other Income, later. 2006 taxes online Qualified settlement income. 2006 taxes online . 2006 taxes online  If you are a qualified taxpayer, you can contribute all or part of your qualified settlement income, up to $100,000, to an eligible retirement plan, including an IRA. 2006 taxes online Contributions to eligible retirement plans, other than a Roth IRA or a designated Roth contribution, reduce the qualified settlement income that you must include in income. 2006 taxes online See Exxon Valdez settlement income under Other Income, later. 2006 taxes online Foreign income. 2006 taxes online  If you are a U. 2006 taxes online S. 2006 taxes online citizen or resident alien, you must report income from sources outside the United States (foreign income) on your tax return unless it is exempt by U. 2006 taxes online S. 2006 taxes online law. 2006 taxes online This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2, Wage and Tax Statement, or Form 1099 from the foreign payer. 2006 taxes online This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties). 2006 taxes online If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. 2006 taxes online For details, see Publication 54, Tax Guide for U. 2006 taxes online S. 2006 taxes online Citizens and Resident Aliens Abroad. 2006 taxes online Disaster mitigation payments. 2006 taxes online . 2006 taxes online  You can exclude from income grants you use to mitigate (reduce the severity of) potential damage from future natural disasters that are paid to you through state and local governments. 2006 taxes online For more information, see Disaster mitigation payments under Welfare and Other Public Assistance Benefits, later. 2006 taxes online Qualified joint venture. 2006 taxes online  A qualified joint venture conducted by you and your spouse may not be treated as a partnership if you file a joint return for the tax year. 2006 taxes online See Partnership Income under Business and Investment Income, later. 2006 taxes online Photographs of missing children. 2006 taxes online  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 2006 taxes online Photographs of missing children selected by the Center may appear in this publication on pages that otherwise would be blank. 2006 taxes online You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 2006 taxes online Introduction You can receive income in the form of money, property, or services. 2006 taxes online This publication discusses many kinds of income and explains whether they are taxable or nontaxable. 2006 taxes online It includes discussions on employee wages and fringe benefits, and income from bartering, partnerships, S corporations, and royalties. 2006 taxes online It also includes information on disability pensions, life insurance proceeds, and welfare and other public assistance benefits. 2006 taxes online Check the index for the location of a specific subject. 2006 taxes online In most cases, an amount included in your income is taxable unless it is specifically exempted by law. 2006 taxes online Income that is taxable must be reported on your return and is subject to tax. 2006 taxes online Income that is nontaxable may have to be shown on your tax return but is not taxable. 2006 taxes online Constructively received income. 2006 taxes online   You are generally taxed on income that is available to you, regardless of whether it is actually in your possession. 2006 taxes online    A valid check that you received or that was made available to you before the end of the tax year is considered income constructively received in that year, even if you do not cash the check or deposit it to your account until the next year. 2006 taxes online For example, if the postal service tries to deliver a check to you on the last day of the tax year but you are not at home to receive it, you must include the amount in your income for that tax year. 2006 taxes online If the check was mailed so that it could not possibly reach you until after the end of the tax year, and you otherwise could not get the funds before the end of the year, you include the amount in your income for the next tax year. 2006 taxes online Assignment of income. 2006 taxes online   Income received by an agent for you is income you constructively received in the year the agent received it. 2006 taxes online If you agree by contract that a third party is to receive income for you, you must include the amount in your income when the third party receives it. 2006 taxes online Example. 2006 taxes online You and your employer agree that part of your salary is to be paid directly to one of your creditors. 2006 taxes online You must include that amount in your income when your creditor receives it. 2006 taxes online Prepaid income. 2006 taxes online   In most cases, prepaid income, such as compensation for future services, is included in your income in the year you receive it. 2006 taxes online However, if you use an accrual method of accounting, you can defer prepaid income you receive for services to be performed before the end of the next tax year. 2006 taxes online In this case, you include the payment in your income as you earn it by performing the services. 2006 taxes online Comments and suggestions. 2006 taxes online   We welcome your comments about this publication and your suggestions for future editions. 2006 taxes online   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 2006 taxes online NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2006 taxes online Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2006 taxes online   You can send your comments from www. 2006 taxes online irs. 2006 taxes online gov/formspubs/. 2006 taxes online Click on “More Information” and then on “Comment on Tax Forms and Publications. 2006 taxes online ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 2006 taxes online Ordering forms and publications. 2006 taxes online   Visit www. 2006 taxes online irs. 2006 taxes online gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 2006 taxes online Internal Revenue Service 1201 N. 2006 taxes online Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 2006 taxes online   If you have a tax question, check the information available on IRS. 2006 taxes online gov or call 1-800-829-1040. 2006 taxes online We cannot answer tax questions sent to either of the above addresses. 2006 taxes online Useful Items - You may want to see: Publication 334 Tax Guide for Small Business 523 Selling Your Home 527 Residential Rental Property 541 Partnerships 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 559 Survivors, Executors, and Administrators 575 Pension and Annuity Income 915 Social Security and Equivalent Railroad Retirement Benefits 970 Tax Benefits for Education 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Form (and Instructions) 1040 U. 2006 taxes online S. 2006 taxes online Individual Income Tax Return 1040A U. 2006 taxes online S. 2006 taxes online Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. 2006 taxes online S. 2006 taxes online Nonresident Alien Income Tax Return 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 2006 taxes online W-2 Wage and Tax Statement  See How To Get Tax Help , near the end of this publication, for information about getting these publications. 2006 taxes online Prev  Up  Next   Home   More Online Publications
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How Do You Report Suspected Tax Fraud Activity?

If You…

Then

And

… suspect or know of an individual or a business that is not complying with the tax laws on issues such as

  • False Exemptions or Deductions
  • Kickbacks
  • False/Altered Document
  • Failure to Pay Tax
  • Unreported Income
  • Organized Crime
  • Failure to Withhold
Use Form 3949-A,
Information Referral

CAUTION: Do NOT use Form 3949-A to report the  issues below

Print the form and mail to:

  • Internal Revenue Service
  • Fresno, CA 93888

 

or, order the form by mail or by calling the Tax Fraud Hotline recording at 1-800-829-0433. Note: we don't accept alleged tax law violation referrals over the phone.

 

You may also send a letter to the address above instead of using Form 3949-A. Please include as much information as possible, such as these important points: 

  1. Name and Address of person or business you are reporting
  2. The individual’s social security number or the business’ employer identification number
  3. A brief description of the alleged violation(s), including how you became aware or obtained information about  the violation(s)
  4. The years involved
  5. The estimated dollar amount of any unreported income
  6. Your name, address and telephone number*

 

*Although you are not required to identify yourself, it is helpful to do so. Your identity will be kept confidential.

…suspect someone stole your identity and used your SSN for employment purposes or could use your SSN to file a tax return

Use Form 14039*

 

*Spanish version: Form 14039SP

Complete the form online, print it and mail or fax to the appropriate office using the options listed on page 2 of the form. Include photocopies of at least one of the documents listed on the form to verify your identity.  For additional information, refer to the Taxpayer Guide to Identity Theft

…suspect fraudulent activity or an abusive tax scheme by a tax return preparer or tax preparation company

Use Form 14157**

 

**Form 14157-A (see below) may also be required

You may complete the form online, print it and mail it to the IRS address on the form.

 

…suspect  a tax return preparer filed a return or altered your return without your consent and you are seeking a change to your account

Use  Form 14157

AND

Form 14157-A

Send BOTH forms (Form 14157 and Form 14157-A) to the address shown in the Instructions for Form 14157-A.

…suspect an abusive tax promotion or promoter

Use Form 14242

The form can be mailed or faxed to the IRS address or fax number on the form.

…suspect misconduct or wrongdoing by an exempt organization or employee plan

Use Form 13909

Mail it to the address provided on the form.

…have information and want to claim a reward

Use Form 211

Mail it to the address in the Instructions for the form.

…suspect you received or are aware of fraudulent IRS

e-mails and websites

Please let us know! See our Phishing web page.

Page Last Reviewed or Updated: 20-Nov-2013

The 2006 Taxes Online

2006 taxes online 19. 2006 taxes online   Education- Related Adjustments Table of Contents Introduction Useful Items - You may want to see: Student Loan Interest DeductionStudent Loan Interest Defined Can You Claim the Deduction How Much Can You Deduct How Do You Figure the Deduction Tuition and Fees DeductionCan You Claim the Deduction What Expenses Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses How Much Can You Deduct Educator Expenses Introduction This chapter discusses the education-related adjustment you can deduct in figuring your adjusted gross income. 2006 taxes online This chapter covers the student loan interest deduction, tuition and fees deduction, and the deduction for educator expenses. 2006 taxes online Useful Items - You may want to see: Publication 970 Tax Benefits for Education Student Loan Interest Deduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. 2006 taxes online However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. 2006 taxes online For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. 2006 taxes online This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. 2006 taxes online Table 19-1 summarizes the features of the student loan interest deduction. 2006 taxes online Table 19-1. 2006 taxes online Student Loan Interest Deduction at a Glance Do not rely on this table alone. 2006 taxes online Refer to the text for more details. 2006 taxes online Feature Description Maximum benefit You can reduce your income subject to tax by up to $2,500. 2006 taxes online Loan qualifications Your student loan: •  must have been taken out solely to pay qualified education expenses, and   • cannot be from a related person or made under a qualified employer plan. 2006 taxes online Student qualifications The student must be: • you, your spouse, or your dependent, and   • enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. 2006 taxes online Time limit on deduction You can deduct interest paid during the remaining period of your student loan. 2006 taxes online Phaseout The amount of your deduction depends on your income level. 2006 taxes online Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. 2006 taxes online It includes both required and voluntary interest payments. 2006 taxes online Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent (defined in chapter 3) when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period when the student is an eligible student. 2006 taxes online Loans from the following sources are not qualified student loans. 2006 taxes online A related person. 2006 taxes online A qualified employer plan. 2006 taxes online Exceptions. 2006 taxes online   For purposes of the student loan interest deduction, the following are exceptions to the general rules for dependents. 2006 taxes online An individual can be your dependent even if you are the dependent of another taxpayer. 2006 taxes online An individual can be your dependent even if the individual files a joint return with a spouse. 2006 taxes online An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). 2006 taxes online    Reasonable period of time. 2006 taxes online   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. 2006 taxes online   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. 2006 taxes online The expenses relate to a specific academic period. 2006 taxes online The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. 2006 taxes online   If neither of the above situations applies, the reasonable period of time is determined based on all the relevant facts and circumstances. 2006 taxes online Academic period. 2006 taxes online   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. 2006 taxes online In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. 2006 taxes online Eligible student. 2006 taxes online   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. 2006 taxes online Enrolled at least half-time. 2006 taxes online   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. 2006 taxes online   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. 2006 taxes online However, the standard may not be lower than any of those established by the U. 2006 taxes online S. 2006 taxes online Department of Education under the Higher Education Act of 1965. 2006 taxes online Related person. 2006 taxes online   You cannot deduct interest on a loan you get from a related person. 2006 taxes online Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. 2006 taxes online ), Your lineal descendants (children, grandchildren, etc. 2006 taxes online ), and Certain corporations, partnerships, trusts, and exempt organizations. 2006 taxes online Qualified employer plan. 2006 taxes online   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. 2006 taxes online Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. 2006 taxes online They include amounts paid for the following items. 2006 taxes online Tuition and fees. 2006 taxes online Room and board. 2006 taxes online Books, supplies, and equipment. 2006 taxes online Other necessary expenses (such as transportation). 2006 taxes online The cost of room and board qualifies only to the extent that it is not more than: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or If greater, the actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. 2006 taxes online Eligible educational institution. 2006 taxes online   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. 2006 taxes online S. 2006 taxes online Department of Education. 2006 taxes online It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2006 taxes online   Certain educational institutions located outside the United States also participate in the U. 2006 taxes online S. 2006 taxes online Department of Education's Federal Student Aid (FSA) programs. 2006 taxes online   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. 2006 taxes online   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. 2006 taxes online The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. 2006 taxes online    The educational institution should be able to tell you if it is an eligible educational institution. 2006 taxes online Adjustments to qualified education expenses. 2006 taxes online   You must reduce your qualified education expenses by certain tax-free items (such as the tax-free part of scholarships and fellowships). 2006 taxes online See chapter 4 of Publication 970 for details. 2006 taxes online Include as Interest In addition to simple interest on the loan, certain loan origination fees, capitalized interest, interest on revolving lines of credit, and interest on refinanced student loans can be student loan interest if all other requirements are met. 2006 taxes online Loan origination fee. 2006 taxes online   In general, this is a one-time fee charged by the lender when a loan is made. 2006 taxes online To be deductible as interest, the fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. 2006 taxes online A loan origination fee treated as interest accrues over the life of the loan. 2006 taxes online Capitalized interest. 2006 taxes online    This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. 2006 taxes online Interest on revolving lines of credit. 2006 taxes online   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. 2006 taxes online See Qualified Education Expenses , earlier. 2006 taxes online Interest on refinanced student loans. 2006 taxes online   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. 2006 taxes online If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. 2006 taxes online Voluntary interest payments. 2006 taxes online   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. 2006 taxes online Do Not Include as Interest You cannot claim a student loan interest deduction for any of the following items. 2006 taxes online Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. 2006 taxes online Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. 2006 taxes online Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. 2006 taxes online For more information, see Student Loan Repayment Assistance in chapter 5 of Publication 970. 2006 taxes online Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. 2006 taxes online Your filing status is any filing status except married filing separately. 2006 taxes online No one else is claiming an exemption for you on his or her tax return. 2006 taxes online You are legally obligated to pay interest on a qualified student loan. 2006 taxes online You paid interest on a qualified student loan. 2006 taxes online Interest paid by others. 2006 taxes online   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. 2006 taxes online See chapter 4 of Publication 970 for more information. 2006 taxes online No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, home mortgage interest). 2006 taxes online How Much Can You Deduct Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. 2006 taxes online However, the amount determined above is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). 2006 taxes online You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). 2006 taxes online For details on figuring your MAGI, see chapter 4 of Publication 970. 2006 taxes online How Do You Figure the Deduction Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the Form 1040 or Form 1040A instructions. 2006 taxes online However, if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1 in chapter 4 of Publication 970. 2006 taxes online To help you figure your student loan interest deduction, you should receive Form 1098-E, Student Loan Interest Statement. 2006 taxes online Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. 2006 taxes online For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. 2006 taxes online Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. 2006 taxes online However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. 2006 taxes online For information on allocating payments between interest and principal, see chapter 4 of Publication 970. 2006 taxes online To claim the deduction, enter the allowable amount on Form 1040, line 33, or Form 1040A, line 18. 2006 taxes online Tuition and Fees Deduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). 2006 taxes online You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. 2006 taxes online The qualified expenses must be for higher education, as explained later under What Expenses Qualify . 2006 taxes online The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. 2006 taxes online Table 19-2 summarizes the features of the tuition and fees deduction. 2006 taxes online You may be able to take a credit for your education expenses instead of a deduction. 2006 taxes online You can choose the one that will give you the lower tax. 2006 taxes online See chapter 35, Education Credits, for details about the credits. 2006 taxes online Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. 2006 taxes online Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. 2006 taxes online You paid qualified education expenses of higher education in 2013 for academic periods beginning in 2013 and those beginning in the first three months of 2014. 2006 taxes online You paid the education expenses for an eligible student. 2006 taxes online The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption (defined in chapter 3) on your tax return. 2006 taxes online Qualified education expenses are defined under What Expenses Qualify . 2006 taxes online Eligible students are defined later under Who Is an Eligible Student . 2006 taxes online Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. 2006 taxes online Your filing status is married filing separately. 2006 taxes online Another person can claim an exemption for you as a dependent on his or her tax return. 2006 taxes online You cannot take the deduction even if the other person does not actually claim that exemption. 2006 taxes online Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). 2006 taxes online You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. 2006 taxes online More information on nonresident aliens can be found in Publication 519, U. 2006 taxes online S. 2006 taxes online Tax Guide for Aliens. 2006 taxes online You or anyone else claims an American opportunity or lifetime learning credit in 2013 with respect to expenses of the student for whom the qualified education expenses were paid. 2006 taxes online However, a state tax credit will not disqualify you from claiming a tuition and fees deduction. 2006 taxes online Table 19-2. 2006 taxes online Tuition and Fees Deduction at a Glance Do not rely on this table alone. 2006 taxes online Refer to the text for more details. 2006 taxes online Question   Answer What is the maximum benefit?   You can reduce your income subject to tax by up to $4,000. 2006 taxes online Where is the deduction taken?   As an adjustment to income on Form 1040, line 34, or Form 1040A, line 19. 2006 taxes online For whom must the expenses be paid?   A student enrolled in an eligible educational institution who is either: you, your spouse, or your dependent for whom you claim an exemption. 2006 taxes online What tuition and fees are deductible?   Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. 2006 taxes online What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. 2006 taxes online Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period (defined earlier under Student Loan Interest Deduction ) beginning in 2013 or in the first 3 months of 2014. 2006 taxes online Payments with borrowed funds. 2006 taxes online   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. 2006 taxes online Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. 2006 taxes online Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. 2006 taxes online Student withdraws from class(es). 2006 taxes online   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. 2006 taxes online Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. 2006 taxes online Eligible educational institution. 2006 taxes online   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. 2006 taxes online S. 2006 taxes online Department of Education. 2006 taxes online It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 2006 taxes online The educational institution should be able to tell you if it is an eligible educational institution. 2006 taxes online   Certain educational institutions located outside the United States also participate in the U. 2006 taxes online S. 2006 taxes online Department of Education's Federal Student Aid (FSA) programs. 2006 taxes online Academic period. 2006 taxes online    An academic period is any quarter, semester, trimester, or any other period of study as reasonably determined by an eligible educational institution. 2006 taxes online If an eligible educational institution uses credit hours and does not have academic terms, each payment period may be treated as an academic period. 2006 taxes online Related expenses. 2006 taxes online   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses for the tuition and fees deduction only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. 2006 taxes online Prepaid expenses. 2006 taxes online   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring the tuition and fees deduction. 2006 taxes online See Academic period, earlier. 2006 taxes online For example, if you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring the tuition and fees deduction for 2013 only if you meet all the other requirements. 2006 taxes online    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 tuition and fees deduction. 2006 taxes online No Double Benefit Allowed You cannot do any of the following. 2006 taxes online Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. 2006 taxes online Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. 2006 taxes online Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). 2006 taxes online For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. 2006 taxes online See Figuring the Taxable Portion of a Distribution in chapter 7 (Coverdell ESA) and chapter 8 (QTP) of Publication 970. 2006 taxes online Deduct qualified education expenses that have been paid with tax-free interest on U. 2006 taxes online S. 2006 taxes online savings bonds (Form 8815). 2006 taxes online See Figuring the Tax-Free Amount in chapter 10 of Publication 970. 2006 taxes online Deduct qualified education expenses that have been paid with tax-free educational assistance such as a scholarship, grant, or employer-provided educational assistance. 2006 taxes online See Adjustments to qualified education expenses, later. 2006 taxes online Adjustments to qualified education expenses. 2006 taxes online   For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. 2006 taxes online The result is the amount of adjusted qualified education expenses for each student. 2006 taxes online Tax-free educational assistance. 2006 taxes online   For tax-free educational assistance you received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance to that academic period. 2006 taxes online See Academic period, earlier. 2006 taxes online   This includes: The tax-free part of scholarships and fellowships, including Pell grants (see chapter 1 of Publication 970), The tax-free part of any employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 2006 taxes online Generally, any scholarship or fellowship you receive is treated as tax-free educational assistance. 2006 taxes online However, a scholarship or fellowship is not treated as tax-free educational assistance to the extent you include it in gross income (if you are required to file a tax return) for the year the scholarship or fellowship is received and either: The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. 2006 taxes online 970, chapter 1. 2006 taxes online The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. 2006 taxes online 970, chapter 1. 2006 taxes online You may be able to increase the combined value of your tuition and fees deduction and certain educational assistance if you include some or all of the educational assistance in income in the year it is received. 2006 taxes online For details, see Adjustments to Qualified Education Expenses in chapter 6 of Pub. 2006 taxes online 970. 2006 taxes online Some tax-free educational assistance received in 2013 may be treated as a refund of qualified education expenses paid in 2013. 2006 taxes online This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). 2006 taxes online If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed, later. 2006 taxes online If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed, later. 2006 taxes online Refunds. 2006 taxes online   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or may require you to include some or all of the refund in your gross income for the year the refund is received. 2006 taxes online See chapter 6 of Pub. 2006 taxes online 970 for more information. 2006 taxes online Some tax-free educational assistance received after 2013 may be treated as a refund. 2006 taxes online See Tax-free educational assistance, earlier. 2006 taxes online Refunds received in 2013. 2006 taxes online    For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses paid in 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. 2006 taxes online Refunds received after 2013 but before your income tax return is filed. 2006 taxes online   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received before you file your 2013 income tax return, reduce the amount of qualified education expenses for 2013 by the amount of the refund. 2006 taxes online Refunds received after 2013 and after your income tax return is filed. 2006 taxes online   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received after you file your 2013 income tax return, you may need to include some or all of the refund in your gross income for the year the refund is received. 2006 taxes online See chapter 6 of Pub. 2006 taxes online 970 for more information. 2006 taxes online Coordination with Coverdell education savings accounts and qualified tuition programs. 2006 taxes online    Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). 2006 taxes online For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. 2006 taxes online Amounts that do not reduce qualified education expenses. 2006 taxes online   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. 2006 taxes online   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. 2006 taxes online The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses. 2006 taxes online The use of the money is not restricted. 2006 taxes online Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. 2006 taxes online This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. 2006 taxes online Sports, games, hobbies, and noncredit courses. 2006 taxes online   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. 2006 taxes online However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. 2006 taxes online Comprehensive or bundled fees. 2006 taxes online   Some eligible educational institutions combine all of their fees for an academic period into one amount. 2006 taxes online If you do not receive, or do not have access to, an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. 2006 taxes online The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T, Tuition Statement. 2006 taxes online See How Do You Figure the Deduction , later, for more information about Form 1098-T. 2006 taxes online Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (defined earlier). 2006 taxes online Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. 2006 taxes online Table 19-3 summarizes who can claim the deduction. 2006 taxes online How Much Can You Deduct The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. 2006 taxes online For details on figuring your MAGI, see chapter 6 of Publication 970. 2006 taxes online How Do You Figure the Deduction Figure the deduction using Form 8917. 2006 taxes online To help you figure your tuition and fees deduction, you should receive Form 1098-T, Tuition Statement. 2006 taxes online Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. 2006 taxes online To claim the deduction, enter the allowable amount on Form 1040, line 34, or Form 1040A, line 19, and attach your completed Form 8917. 2006 taxes online Table 19-3. 2006 taxes online Who Can Claim a Dependent's Expenses Do not rely on this table alone. 2006 taxes online See Who Can Claim a Dependent's Expenses in chapter 6 of Publication 970. 2006 taxes online IF your dependent is an eligible student and you. 2006 taxes online . 2006 taxes online . 2006 taxes online AND. 2006 taxes online . 2006 taxes online . 2006 taxes online THEN. 2006 taxes online . 2006 taxes online . 2006 taxes online claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. 2006 taxes online Your dependent cannot take a deduction. 2006 taxes online claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 2006 taxes online do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. 2006 taxes online do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. 2006 taxes online Educator Expenses If you were an eligible educator in 2013, you can deduct on Form 1040, line 23, or Form 1040A, line 16, up to $250 of qualified expenses you paid in 2013. 2006 taxes online If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. 2006 taxes online However, neither spouse can deduct more than $250 of his or her qualified expenses on Form 1040, line 23, or Form 1040A, line 16. 2006 taxes online You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A (Form 1040), line 21. 2006 taxes online Eligible educator. 2006 taxes online   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year. 2006 taxes online Qualified expenses. 2006 taxes online   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. 2006 taxes online An ordinary expense is one that is common and accepted in your educational field. 2006 taxes online A necessary expense is one that is helpful and appropriate for your profession as an educator. 2006 taxes online An expense does not have to be required to be considered necessary. 2006 taxes online   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. 2006 taxes online   You must reduce your qualified expenses by the following amounts. 2006 taxes online Excludable U. 2006 taxes online S. 2006 taxes online series EE and I savings bond interest from Form 8815. 2006 taxes online See Figuring the Tax-Free Amount in chapter 10 of Publication 970. 2006 taxes online Nontaxable qualified tuition program earnings or distributions. 2006 taxes online See Figuring the Taxable Portion of a Distribution in chapter 8 of Publication 970. 2006 taxes online Nontaxable distribution of earnings from a Coverdell education savings account. 2006 taxes online See Figuring the Taxable Portion of a Distribution in chapter 7 of Publication 970. 2006 taxes online Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2. 2006 taxes online Prev  Up  Next   Home   More Online Publications