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1040ez Form Booklet

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1040ez Form Booklet

1040ez form booklet Publication 587 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. 1040ez form booklet Tax questions. 1040ez form booklet Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 587, such as legislation enacted after it was published, go to www. 1040ez form booklet irs. 1040ez form booklet gov/pub587. 1040ez form booklet What's New The IRS now provides a simplified method to determine your expenses for business use of your home. 1040ez form booklet The simplified method is an alternative to calculating and substantiating actual expenses. 1040ez form booklet For more information, see Using the Simplified Method under Figuring the Deduction, later. 1040ez form booklet Reminders Photographs of missing children. 1040ez form booklet  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 1040ez form booklet Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 1040ez form booklet 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. 1040ez form booklet Introduction The purpose of this publication is to provide information on figuring and claiming the deduction for business use of your home. 1040ez form booklet The term “home” includes a house, apartment, condominium, mobile home, boat, or similar property which provides basic living accommodations. 1040ez form booklet It also includes structures on the property, such as an unattached garage, studio, barn, or greenhouse. 1040ez form booklet However, it does not include any part of your property used exclusively as a hotel, motel, inn, or similar establishment. 1040ez form booklet Qualifying for a Deduction gives the requirements for qualifying to deduct expenses for the business use of your home (including special rules for employees and special rules for storing inventory or product samples). 1040ez form booklet For special rules that apply to daycare providers, see Daycare Facility . 1040ez form booklet After you determine that you qualify for the deduction, Figuring the Deduction explains the expenses you can deduct using either your actual expenses or the simplified method. 1040ez form booklet The simplified method is an alternative to calculating and substantiating actual expenses. 1040ez form booklet Where To Deduct explains where a self-employed person, employee, or partner will report the deduction. 1040ez form booklet This publication also includes information on the following. 1040ez form booklet Selling a home that was used partly for business. 1040ez form booklet Deducting expenses for furniture and equipment used in your business. 1040ez form booklet Records you should keep. 1040ez form booklet Finally, this publication contains worksheets to help you figure the amount of your deduction if you use your home in your farming business and you are filing Schedule F (Form 1040), you use your home for work as an employee, or you are a partner and the use of your home resulted in unreimbursed ordinary and necessary expenses that you are required to pay under the partnership agreement. 1040ez form booklet If you used your home for business and you are filing Schedule C (Form 1040), you will use either Form 8829 or the Simplified Method Worksheet in your Instructions for Schedule C. 1040ez form booklet The rules in this publication apply to individuals. 1040ez form booklet If you need information on deductions for renting out your property, see Publication 527, Residential Rental Property. 1040ez form booklet Comments and suggestions. 1040ez form booklet   We welcome your comments about this publication and your suggestions for future editions. 1040ez form booklet   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 1040ez form booklet NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040ez form booklet Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040ez form booklet   You can send your comments from www. 1040ez form booklet irs. 1040ez form booklet gov/formspubs/. 1040ez form booklet Click on “More Information” and then on “Comment on Tax Forms and Publications. 1040ez form booklet ”   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. 1040ez form booklet Ordering forms and publications. 1040ez form booklet   Visit www. 1040ez form booklet irs. 1040ez form booklet 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. 1040ez form booklet Internal Revenue Service 1201 N. 1040ez form booklet Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040ez form booklet   If you have a tax question, check the information available on IRS. 1040ez form booklet gov or call 1-800-829-1040. 1040ez form booklet We cannot answer tax questions sent to either of the above addresses. 1040ez form booklet Useful Items - You may want to see: Publications 523 Selling Your Home 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Forms (and Instructions) Schedule C (Form 1040) Profit or Loss from Business 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 4562 Depreciation and Amortization 8829 Expenses for Business Use of Your Home  See How To Get Tax Help , near the end of this publication for information about getting publications and forms. 1040ez form booklet Prev  Up 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SOI Tax Stats - Historical Data Tables

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All Historical tables are available in Microsoft Excel file format. 

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Tables by Number:

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 (expanded version), 13 (expanded version), 14a, 14b, 15, 16 (expanded version), 17, 18, 19 , 20, 21, 22a, 22b, 23, 24.

 


Table Descriptions

Table 1.  Individual Income Tax Returns: Selected Income and Tax Items.

Table 2.  Individual Income and Tax Data, by State and Size of Adjusted Gross Income.

Table 3.  Number of Individual Income Tax Returns, Income, Exemptions and Deductions, Tax, and Average Tax, by Size of Adjusted Gross Income.

Table 4.  Comparison of Personal Income in the National Income and Product Accounts (NIPA) with Adjusted Gross Income (AGI).  (Discontinued)

Table 5.  Personal Income and Total Adjusted Gross Income Based on Individual Income Tax Returns per National Income and Product Accounts (NIPA).  (Discontinued)

Table 6.  Total Adjusted Gross Income Estimated from National Income and Product Accounts (NIPA) and as Reported on Individual Income Tax Returns per SOI.  (Discontinued)

Table 7.  Standard, Itemized, and Total Deductions Reported on Individual Income Tax Returns.

Table 8.  Personal Income per National Income and Product Accounts (NIPA), and Taxable Income and Individual Income Tax per SOI.

Table 9.  Number of Individual Income Tax Returns, by Type of Tax Settlement.

Table 10.  Nonfarm Sole Proprietorship Returns: Selected Income Statement Items for Specified Income.

Table 11.  Partnership Returns: Selected Balance Sheet and Income Statement Items for Specified Income Years.

Table 12.  Number of Business Income Tax Returns, by Size of Business for Income Years, 1990–2009. Expanded Version.

Table 13.  Corporation Income Tax Returns: Balance Sheet, Income Statement, and Tax Items for Income Years, 1990–2009. Expanded Version.

Table 14a.  Corporation Income Tax Returns: Selected Balance Sheet, Income Statement, and Tax Items, by Standard Industrial Classification (SIC) Industrial Division.

Table 14b.  Corporation Income Tax Returns: Selected Balance Sheet, Income Statement, and Tax Items, by North American Industry Classification System (NAICS) Industrial Sector.

Table 15.  Corporation Profits Before Tax per National Income and Product Accounts (NIPA) and per SOI, and Income Subject to Tax per SOI, Income Years 1960–2007.

Table 16.  Nonprofit Charitable Organization and Domestic Private Foundation Information Returns, and Exempt Organization Business Income Tax Returns: Selected Financial Data. Expanded Version.

Table 17.  Taxable Estate Tax Returns as a Percentage of Adult Deaths, Selected Years of Death, 1934–2008.

Table 18.  Treasury Department Gross Tax Collections: Amount Collected by Quarter and Fiscal Year. (Discontinued)

Table 19.  Internal Revenue Tax Refunds: Amount Refunded by Quarter and Fiscal Year. (Discontinued)

Table 20.  Federal Excise Taxes Reported to or Collected by the Internal Revenue Service, Alcohol and Tobacco Tax and Trade Bureau, and Customs Service, by Type of Excise Tax.

Table 21.  Selected Returns and Forms Filed or To Be Filed by Type During Specified Calendar Years.

Table 22a.  Taxpayers Receiving Assistance.

Table 22b.  IRS Assistance for Individual Taxpayers.

Appendix to Selected Historical and Other Data Tables

Table 23.  U.S. Individual Income Tax: Personal Exemptions and Lowest and Highest Bracket Tax Rates, and Tax Base for Regular Tax.

Table 24.  U.S. Corporation Income Tax: Tax Brackets and Rates.

 


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Page Last Reviewed or Updated: 19-Jun-2013

The 1040ez Form Booklet

1040ez form booklet 1. 1040ez form booklet   Scholarships, Fellowships, Grants, and Tuition Reductions Table of Contents Reminder Introduction Scholarships and FellowshipsTax-Free Scholarships and Fellowships Taxable Scholarships and Fellowships Reporting Scholarships and Fellowships Other Types of Educational AssistanceFulbright Grants Pell Grants and Other Title IV Need-Based Education Grants Payment to Service Academy Cadets Veterans' Benefits Qualified Tuition Reduction Reminder Individual retirement arrangements (IRAs). 1040ez form booklet  You can set up and make contributions to an IRA if you receive taxable compensation. 1040ez form booklet Under this rule, a taxable scholarship or fellowship is compensation only if it is shown in box 1 of your Form W-2, Wage and Tax Statement. 1040ez form booklet For more information about IRAs, see Publication 590. 1040ez form booklet Introduction This chapter discusses the income tax treatment of various types of educational assistance you may receive if you are studying, teaching, or researching in the United States. 1040ez form booklet The educational assistance can be for a primary or secondary school, a college or university, or a vocational school. 1040ez form booklet Included are discussions of: Scholarships, Fellowships, Need-based education grants, such as a Pell Grant, and Qualified tuition reductions. 1040ez form booklet Many types of educational assistance are tax free if they meet the requirements discussed here. 1040ez form booklet Special rules apply to U. 1040ez form booklet S. 1040ez form booklet citizens and resident aliens who have received scholarships or fellowships for studying, teaching, or researching abroad. 1040ez form booklet For information about these rules, see Publication 54, Tax Guide for U. 1040ez form booklet S. 1040ez form booklet Citizens and Resident Aliens Abroad. 1040ez form booklet Scholarships and Fellowships A scholarship is generally an amount paid or allowed to, or for the benefit of, a student (whether an undergraduate or a graduate) at an educational institution to aid in the pursuit of his or her studies. 1040ez form booklet A fellowship is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research. 1040ez form booklet Amount of scholarship or fellowship. 1040ez form booklet   The amount of a scholarship or fellowship includes the following: The value of contributed services and accommodations. 1040ez form booklet This includes such services and accommodations as room (lodging), board (meals), laundry service, and similar services or accommodations that are received by an individual as a part of a scholarship or fellowship. 1040ez form booklet The amount of tuition, matriculation, and other fees that are paid or remitted to the student to aid the student in pursuing study or research. 1040ez form booklet Any amount received in the nature of a family allowance as a part of a scholarship or fellowship. 1040ez form booklet Tax-Free Scholarships and Fellowships A scholarship or fellowship is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution. 1040ez form booklet A scholarship or fellowship is tax free only to the extent: It does not exceed your expenses; It is not designated or earmarked for other purposes (such as room and board), and does not require (by its terms) that it cannot be used for qualified education expenses; and It does not represent payment for teaching, research, or other services required as a condition for receiving the scholarship. 1040ez form booklet (But for exceptions, see Payment for services,later. 1040ez form booklet Use Worksheet 1–1 to figure the amount of a scholarship or fellowship you can exclude from gross income. 1040ez form booklet Candidate for a degree. 1040ez form booklet   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an educational institution that: Provides a program that is acceptable for full credit toward a bachelor's or higher degree, or offers a program of training to prepare students for gainful employment in a recognized occupation; and Is authorized under federal or state law to provide such a program and is accredited by a nationally recognized accreditation agency. 1040ez form booklet Eligible educational institution. 1040ez form booklet   An eligible educational institution is one whose primary function is the presentation of formal instruction and that normally 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. 1040ez form booklet Qualified education expenses. 1040ez form booklet   For purposes of tax-free scholarships and fellowships, these are 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. 1040ez form booklet These items must be required of all students in your course of instruction. 1040ez form booklet Expenses that do not qualify. 1040ez form booklet   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. 1040ez form booklet Payment for services. 1040ez form booklet   Generally, you cannot exclude from your gross income the part of any scholarship or fellowship that represents payment for teaching, research, or other services required as a condition for receiving the scholarship. 1040ez form booklet This applies even if all candidates for a degree must perform the services to receive the degree. 1040ez form booklet (See exceptions next. 1040ez form booklet ) Exceptions. 1040ez form booklet   You do not have to treat as payment for services the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. 1040ez form booklet Example 1. 1040ez form booklet You received a scholarship of $2,500. 1040ez form booklet The scholarship was not received under either of the exceptions mentioned above. 1040ez form booklet As a condition for receiving the scholarship, you must serve as a part-time teaching assistant. 1040ez form booklet Of the $2,500 scholarship, $1,000 represents payment for teaching. 1040ez form booklet The provider of your scholarship gives you a Form W-2 showing $1,000 as income. 1040ez form booklet Your qualified education expenses were at least $1,500. 1040ez form booklet Assuming that all other conditions are met, $1,500 of your scholarship is tax free. 1040ez form booklet The $1,000 you received for teaching is taxable. 1040ez form booklet Example 2. 1040ez form booklet You are a candidate for a degree at a medical school. 1040ez form booklet You receive a scholarship (not under either of the exceptions mentioned above) for your medical education and training. 1040ez form booklet The terms of your scholarship require you to perform future services. 1040ez form booklet A substantial penalty applies if you do not comply. 1040ez form booklet The entire amount of your grant is taxable as payment for services in the year it is received. 1040ez form booklet Athletic Scholarships An athletic scholarship is tax free only if and to the extent it meets the requirements discussed later. 1040ez form booklet Worksheet 1-1. 1040ez form booklet    You can use Worksheet 1-1, Taxable Scholarship and Fellowship Income , later, to figure the tax-free and taxable parts of your athletic scholarship. 1040ez form booklet    Worksheet 1-1. 1040ez form booklet Taxable Scholarship and Fellowship Income 1. 1040ez form booklet Enter the total amount of any scholarship or fellowship for 2013. 1040ez form booklet See Amount of scholarship or fellowship, earlier. 1040ez form booklet 1. 1040ez form booklet       If you are a degree candidate at an eligible educational institution, go to line 2. 1040ez form booklet If you are not a degree candidate at an eligible educational institution, stop here. 1040ez form booklet The entire amount is taxable. 1040ez form booklet For information on how to report this amount on your tax return, see Reporting Scholarships and Fellowships , earlier, in this chapter. 1040ez form booklet       2. 1040ez form booklet Enter the amount from line 1 that was for teaching, research, or any other services required as a condition for receiving the scholarship. 1040ez form booklet (Do not include amounts received for these items under the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program. 1040ez form booklet ) 2. 1040ez form booklet     3. 1040ez form booklet Subtract line 2 from line 1 3. 1040ez form booklet     4. 1040ez form booklet Enter the amount from line 3 that your scholarship or fellowship required you to use for other than qualified education expenses 4. 1040ez form booklet     5. 1040ez form booklet Subtract line 4 from line 3 5. 1040ez form booklet     6. 1040ez form booklet Enter the amount of your qualified education expenses 6. 1040ez form booklet     7. 1040ez form booklet Enter the smaller of line 5 or line 6. 1040ez form booklet This amount is the most you can exclude from your gross income (the tax-free part of the scholarship or fellowship) 7. 1040ez form booklet     8. 1040ez form booklet Subtract line 7 from line 5 8. 1040ez form booklet     9. 1040ez form booklet Taxable part. 1040ez form booklet Add lines 2, 4, and 8. 1040ez form booklet See Reporting Scholarships and Fellowships , earlier, for how to report this amount on your tax return 9. 1040ez form booklet     Taxable Scholarships and Fellowships If and to the extent your scholarship or fellowship does not meet the requirements described earlier, it is taxable and must be included in gross income. 1040ez form booklet You can use Worksheet 1–1, Taxable Scholarship and Fellowship Income, later, to figure the tax-free and taxable parts of your scholarship or fellowship. 1040ez form booklet Reporting Scholarships and Fellowships Whether you must report your scholarship or fellowship depends on whether you must file a return and whether any part of your scholarship or fellowship is taxable. 1040ez form booklet If your only income is a completely tax-free scholarship or fellowship, you do not have to file a tax return and no reporting is necessary. 1040ez form booklet If all or part of your scholarship or fellowship is taxable and you are required to file a tax return, report the taxable amount as explained below. 1040ez form booklet You must report the taxable amount whether or not you received a Form W-2. 1040ez form booklet If you receive an incorrect Form W-2, ask the payer for a corrected one. 1040ez form booklet For information on whether you must file a return, see Publication 501, Exemptions, Standard Deduction, and Filing Information, or your income tax form instructions. 1040ez form booklet How To Report How you report any taxable scholarship or fellowship income depends on which return you file. 1040ez form booklet Form 1040EZ. 1040ez form booklet   If you file Form 1040EZ, include the taxable amount in the total on line 1. 1040ez form booklet If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 1. 1040ez form booklet Form 1040A. 1040ez form booklet   If you file Form 1040A, include the taxable amount in the total on line 7. 1040ez form booklet If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 7. 1040ez form booklet Form 1040. 1040ez form booklet   If you file Form 1040, include the taxable amount in the total on line 7. 1040ez form booklet If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 7. 1040ez form booklet Schedule SE (Form 1040). 1040ez form booklet   To determine your net earnings from self-employment, include amounts you receive under a scholarship as pay for your services that are reported to you on Form 1099-MISC, Miscellaneous Income. 1040ez form booklet If your net earnings are $400 or more, you must pay self-employment tax. 1040ez form booklet Use Schedule SE, Self-Employment Tax, to figure this tax. 1040ez form booklet Form 1040NR. 1040ez form booklet   If you file Form 1040NR, report the taxable amount on line 12. 1040ez form booklet Generally, you must report the amount shown in box 2 of Form(s) 1042-S, Foreign Person's U. 1040ez form booklet S. 1040ez form booklet Source Income Subject to Withholding. 1040ez form booklet See the Instructions for Form 1040NR for more information. 1040ez form booklet Form 1040NR-EZ. 1040ez form booklet   If you file Form 1040NR-EZ, report the taxable amount on line 5. 1040ez form booklet Generally, you must report the amount shown in box 2 of Form(s) 1042-S. 1040ez form booklet See the Instructions for Form 1040NR-EZ for more information. 1040ez form booklet Other Types of Educational Assistance The following discussions deal with other common types of educational assistance. 1040ez form booklet Fulbright Grants A Fulbright grant is generally treated as a scholarship or fellowship in figuring how much of the grant is tax free. 1040ez form booklet Pell Grants and Other Title IV Need-Based Education Grants These need-based grants are treated as scholarships for purposes of determining their tax treatment. 1040ez form booklet They are tax free to the extent used for qualified education expenses during the period for which a grant is awarded. 1040ez form booklet Payment to Service Academy Cadets An appointment to a United States military academy is not a scholarship or fellowship. 1040ez form booklet Payment you receive as a cadet or midshipman at an armed services academy is pay for personal services and will be reported to you in box 1 of Form W-2. 1040ez form booklet Include this pay in your income in the year you receive it unless one of the exceptions, discussed earlier under Payment for services , applies. 1040ez form booklet Veterans' Benefits Payments you receive for education, training, or subsistence under any law administered by the Department of Veterans Affairs (VA) are tax free. 1040ez form booklet Do not include these payments as income on your federal tax return. 1040ez form booklet If you qualify for one or more of the education benefits discussed in chapters 2 through 12, you may have to reduce the amount of education expenses qualifying for a specific benefit by part or all of your VA payments. 1040ez form booklet This applies only to the part of your VA payments that is required to be used for education expenses. 1040ez form booklet You may want to visit the Veteran's Administration website at www. 1040ez form booklet gibill. 1040ez form booklet va. 1040ez form booklet gov for specific information about the various VA benefits for education. 1040ez form booklet Example. 1040ez form booklet You have returned to college and are receiving two education benefits under the latest GI Bill: (1) a $1,534 monthly basic housing allowance (BHA) that is directly deposited to your checking account, and (2) $3,840 paid directly to your college for tuition. 1040ez form booklet Neither of these benefits is taxable and you do not report them on your tax return. 1040ez form booklet You also want to claim an American opportunity credit on your return. 1040ez form booklet You paid $5,000 in qualified education expenses (see chapter 2, American Opportunity Credit , later). 1040ez form booklet To figure the amount of credit, you must first subtract the $3,840 from your qualified education expenses because this payment under the GI Bill was required to be used for education expenses. 1040ez form booklet You do not subtract any amount of the BHA because it was paid to you and its use was not restricted. 1040ez form booklet Qualified Tuition Reduction If you are allowed to study tuition free or for a reduced rate of tuition, you may not have to pay tax on this benefit. 1040ez form booklet This is called a “tuition reduction. 1040ez form booklet ” You do not have to include a qualified tuition reduction in your income. 1040ez form booklet A tuition reduction is qualified only if you receive it from, and use it at, an eligible educational institution. 1040ez form booklet You do not have to use the tuition reduction at the eligible educational institution from which you received it. 1040ez form booklet In other words, if you work for an eligible educational institution and the institution arranges for you to take courses at another eligible educational institution without paying any tuition, you may not have to include the value of the free courses in your income. 1040ez form booklet The rules for determining if a tuition reduction is qualified, and therefore tax free, are different if the education provided is below the graduate level or is graduate education. 1040ez form booklet You must include in your income any tuition reduction you receive that is payment for your services. 1040ez form booklet Eligible educational institution. 1040ez form booklet   An eligible educational institution is one 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. 1040ez form booklet Officers, owners, and highly compensated employees. 1040ez form booklet   Qualified tuition reductions apply to officers, owners, or highly compensated employees only if benefits are available to employees on a nondiscriminatory basis. 1040ez form booklet This means that the tuition reduction benefits must be available on substantially the same basis to each member of a group of employees. 1040ez form booklet The group must be defined under a reasonable classification set up by the employer. 1040ez form booklet The classification must not discriminate in favor of owners, officers, or highly compensated employees. 1040ez form booklet Payment for services. 1040ez form booklet   Generally, you must include in income the part of any qualified tuition reduction that represents payment for teaching, research, or other services by the student required as a condition of receiving the qualified tuition reduction. 1040ez form booklet This applies even if all candidates for a degree must perform the services to receive the degree. 1040ez form booklet (See below for exceptions. 1040ez form booklet ) Exceptions. 1040ez form booklet   You do not have to include in income the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under: The National Health Service Corps Scholarship Program, or The Armed Forces Health Professions Scholarship and Financial Assistance Program. 1040ez form booklet Education Below the Graduate Level If you receive a tuition reduction for education below the graduate level (including primary, secondary, or high school), it is a qualified tuition reduction, and therefore tax free, only if your relationship to the educational institution providing the benefit is described below. 1040ez form booklet You are an employee of the eligible educational institution. 1040ez form booklet You were an employee of the eligible educational institution, but you retired or left on disability. 1040ez form booklet You are a widow or widower of an individual who died while an employee of the eligible educational institution or who retired or left on disability. 1040ez form booklet You are the dependent child or spouse of an individual described in (1) through (3), above. 1040ez form booklet Child of deceased parents. 1040ez form booklet   For purposes of the qualified tuition reduction, a child is a dependent child if the child is under age 25 and both parents have died. 1040ez form booklet Child of divorced parents. 1040ez form booklet   For purposes of the qualified tuition reduction, a dependent child of divorced parents is treated as the dependent of both parents. 1040ez form booklet Graduate Education A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met. 1040ez form booklet It is provided by an eligible educational institution. 1040ez form booklet You are a graduate student who performs teaching or research activities for the educational institution. 1040ez form booklet You must include in income any other tuition reductions for graduate education that you receive. 1040ez form booklet How To Report Any tuition reduction that is taxable should be included as wages in box 1 of your Form W-2. 1040ez form booklet Report the amount from Form W-2, box 1, on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). 1040ez form booklet Prev  Up  Next   Home   More Online Publications