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

1040ez Printable Tax Forms

Free Federal And State Tax Filing 2012 Online2010 Form 1040Www.irs Tax Form 1040ez For 2012File 2011 TaxesTax Form 1040ez Year 2013Fillable 1040ezIncome Tax PreparationsHow Can I Amend My Tax ReturnWhen To File 1040xFree File2010 New Car Tax Credit1040 Ez Tax FormsHow Do I File My State Taxes For FreeDo My 2012 Taxes Online For FreeIrs Gov FormsAmend Federal Tax Return 2012H R Block Tax ServiceE File 2011 Federal TaxesIrs Form Ez 1040Free Federal Tax Filing 2011Filing Taxes As Unemployed1040ez File OnlineFree State Filing Income TaxIrs Amended Tax Return FormFiling Self Employment TaxesAmend 2011 TaxesIrs Gov Vita1040ezH R BlockFederal Tax Amendment FormTax Planning Us 2007 TaxesFree Income Tax Preparation1040ez Tax FormsFree State Tax Filing 2014Can You E File 2010 TaxesWww.state Tax FormsH And R Block Online FilingTax Forms For 2011 Tax YearReal Life Tax Filing Block Military Nonmilitary2011 Form 1040 Ez

1040ez Printable Tax Forms

1040ez printable tax forms 15. 1040ez printable tax forms   Selling Your Home Table of Contents Reminder Introduction Useful Items - You may want to see: Main Home Figuring Gain or LossSelling Price Amount Realized Adjusted Basis Amount of Gain or Loss Dispositions Other Than Sales Determining Basis Excluding the GainMaximum Exclusion Ownership and Use Tests Reduced Maximum Exclusion Business Use or Rental of Home Reporting the SaleSeller-financed mortgage. 1040ez printable tax forms More information. 1040ez printable tax forms Special SituationsException for sales to related persons. 1040ez printable tax forms Recapturing (Paying Back) a Federal Mortgage Subsidy Reminder Home sold with undeducted points. 1040ez printable tax forms  If you have not deducted all the points you paid to secure a mortgage on your old home, you may be able to deduct the remaining points in the year of the sale. 1040ez printable tax forms See Mortgage ending early under Points in chapter 23. 1040ez printable tax forms Introduction This chapter explains the tax rules that apply when you sell your main home. 1040ez printable tax forms In most cases, your main home is the one in which you live most of the time. 1040ez printable tax forms If you sold your main home in 2013, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases). 1040ez printable tax forms See Excluding the Gain , later. 1040ez printable tax forms Generally, if you can exclude all the gain, you do not need to report the sale on your tax return. 1040ez printable tax forms If you have gain that cannot be excluded, it is taxable. 1040ez printable tax forms Report it on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040). 1040ez printable tax forms You may also have to complete Form 4797, Sales of Business Property. 1040ez printable tax forms See Reporting the Sale , later. 1040ez printable tax forms If you have a loss on the sale, you generally cannot deduct it on your return. 1040ez printable tax forms However, you may need to report it. 1040ez printable tax forms See Reporting the Sale , later. 1040ez printable tax forms The following are main topics in this chapter. 1040ez printable tax forms Figuring gain or loss. 1040ez printable tax forms Basis. 1040ez printable tax forms Excluding the gain. 1040ez printable tax forms Ownership and use tests. 1040ez printable tax forms Reporting the sale. 1040ez printable tax forms Other topics include the following. 1040ez printable tax forms Business use or rental of home. 1040ez printable tax forms Recapturing a federal mortgage subsidy. 1040ez printable tax forms Useful Items - You may want to see: Publication 523 Selling Your Home 530 Tax Information for Homeowners 547 Casualties, Disasters, and Thefts Form (and Instructions) Schedule D (Form 1040) Capital Gains and Losses 982 Reduction of Tax Attributes Due to Discharge of Indebtedness 8828 Recapture of Federal Mortgage Subsidy 8949 Sales and Other Dispositions of Capital Assets Main Home This section explains the term “main home. 1040ez printable tax forms ” Usually, the home you live in most of the time is your main home and can be a: House, Houseboat, Mobile home, Cooperative apartment, or Condominium. 1040ez printable tax forms To exclude gain under the rules of this chapter, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale. 1040ez printable tax forms Land. 1040ez printable tax forms   If you sell the land on which your main home is located, but not the house itself, you cannot exclude any gain you have from the sale of the land. 1040ez printable tax forms However, if you sell vacant land used as part of your main home and that is adjacent to it, you may be able to exclude the gain from the sale under certain circumstances. 1040ez printable tax forms See Vacant land under Main Home in Publication 523 for more information. 1040ez printable tax forms Example. 1040ez printable tax forms You buy a piece of land and move your main home to it. 1040ez printable tax forms Then you sell the land on which your main home was located. 1040ez printable tax forms This sale is not considered a sale of your main home, and you cannot exclude any gain on the sale of the land. 1040ez printable tax forms More than one home. 1040ez printable tax forms   If you have more than one home, you can exclude gain only from the sale of your main home. 1040ez printable tax forms You must include in income gain from the sale of any other home. 1040ez printable tax forms If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time during the year. 1040ez printable tax forms Example 1. 1040ez printable tax forms You own two homes, one in New York and one in Florida. 1040ez printable tax forms From 2009 through 2013, you live in the New York home for 7 months and in the Florida residence for 5 months of each year. 1040ez printable tax forms In the absence of facts and circumstances indicating otherwise, the New York home is your main home. 1040ez printable tax forms You would be eligible to exclude the gain from the sale of the New York home but not of the Florida home in 2013. 1040ez printable tax forms Example 2. 1040ez printable tax forms You own a house, but you live in another house that you rent. 1040ez printable tax forms The rented house is your main home. 1040ez printable tax forms Example 3. 1040ez printable tax forms You own two homes, one in Virginia and one in New Hampshire. 1040ez printable tax forms In 2009 and 2010, you lived in the Virginia home. 1040ez printable tax forms In 2011 and 2012, you lived in the New Hampshire home. 1040ez printable tax forms In 2013, you lived again in the Virginia home. 1040ez printable tax forms Your main home in 2009, 2010, and 2013 is the Virginia home. 1040ez printable tax forms Your main home in 2011 and 2012 is the New Hampshire home. 1040ez printable tax forms You would be eligible to exclude gain from the sale of either home (but not both) in 2013. 1040ez printable tax forms Property used partly as your main home. 1040ez printable tax forms   If you use only part of the property as your main home, the rules discussed in this publication apply only to the gain or loss on the sale of that part of the property. 1040ez printable tax forms For details, see Business Use or Rental of Home , later. 1040ez printable tax forms Figuring Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price, the amount realized, and the adjusted basis. 1040ez printable tax forms Subtract the adjusted basis from the amount realized to get your gain or loss. 1040ez printable tax forms     Selling price     − Selling expenses       Amount realized       Amount realized     − Adjusted basis       Gain or loss   Selling Price The selling price is the total amount you receive for your home. 1040ez printable tax forms It includes money and the fair market value of any other property or any other services you receive and all notes, mortgages or other debts assumed by the buyer as part of the sale. 1040ez printable tax forms Payment by employer. 1040ez printable tax forms   You may have to sell your home because of a job transfer. 1040ez printable tax forms If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. 1040ez printable tax forms Your employer will include it as wages in box 1 of your Form W-2, and you will include it in your income on Form 1040, line 7. 1040ez printable tax forms Option to buy. 1040ez printable tax forms   If you grant an option to buy your home and the option is exercised, add the amount you receive for the option to the selling price of your home. 1040ez printable tax forms If the option is not exercised, you must report the amount as ordinary income in the year the option expires. 1040ez printable tax forms Report this amount on Form 1040, line 21. 1040ez printable tax forms Form 1099-S. 1040ez printable tax forms   If you received Form 1099-S, Proceeds From Real Estate Transactions, box 2 (Gross proceeds) should show the total amount you received for your home. 1040ez printable tax forms   However, box 2 will not include the fair market value of any services or property other than cash or notes you received or will receive. 1040ez printable tax forms Instead, box 4 will be checked to indicate your receipt or expected receipt of these items. 1040ez printable tax forms Amount Realized The amount realized is the selling price minus selling expenses. 1040ez printable tax forms Selling expenses. 1040ez printable tax forms   Selling expenses include: Commissions, Advertising fees, Legal fees, and Loan charges paid by the seller, such as loan placement fees or “points. 1040ez printable tax forms ” Adjusted Basis While you owned your home, you may have made adjustments (increases or decreases) to the basis. 1040ez printable tax forms This adjusted basis must be determined before you can figure gain or loss on the sale of your home. 1040ez printable tax forms For information on how to figure your home's adjusted basis, see Determining Basis , later. 1040ez printable tax forms Amount of Gain or Loss To figure the amount of gain or loss, compare the amount realized to the adjusted basis. 1040ez printable tax forms Gain on sale. 1040ez printable tax forms   If the amount realized is more than the adjusted basis, the difference is a gain and, except for any part you can exclude, in most cases is taxable. 1040ez printable tax forms Loss on sale. 1040ez printable tax forms   If the amount realized is less than the adjusted basis, the difference is a loss. 1040ez printable tax forms A loss on the sale of your main home cannot be deducted. 1040ez printable tax forms Jointly owned home. 1040ez printable tax forms   If you and your spouse sell your jointly owned home and file a joint return, you figure your gain or loss as one taxpayer. 1040ez printable tax forms Separate returns. 1040ez printable tax forms   If you file separate returns, each of you must figure your own gain or loss according to your ownership interest in the home. 1040ez printable tax forms Your ownership interest is generally determined by state law. 1040ez printable tax forms Joint owners not married. 1040ez printable tax forms   If you and a joint owner other than your spouse sell your jointly owned home, each of you must figure your own gain or loss according to your ownership interest in the home. 1040ez printable tax forms Each of you applies the rules discussed in this chapter on an individual basis. 1040ez printable tax forms Dispositions Other Than Sales Some special rules apply to other dispositions of your main home. 1040ez printable tax forms Foreclosure or repossession. 1040ez printable tax forms   If your home was foreclosed on or repossessed, you have a disposition. 1040ez printable tax forms See Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, to determine if you have ordinary income, gain, or loss. 1040ez printable tax forms Abandonment. 1040ez printable tax forms   If you abandon your home, see Publication 4681 to determine if you have ordinary income, gain, or loss. 1040ez printable tax forms Trading (exchanging) homes. 1040ez printable tax forms   If you trade your old home for another home, treat the trade as a sale and a purchase. 1040ez printable tax forms Example. 1040ez printable tax forms You owned and lived in a home with an adjusted basis of $41,000. 1040ez printable tax forms A real estate dealer accepted your old home as a trade-in and allowed you $50,000 toward a new home priced at $80,000. 1040ez printable tax forms This is treated as a sale of your old home for $50,000 with a gain of $9,000 ($50,000 – $41,000). 1040ez printable tax forms If the dealer had allowed you $27,000 and assumed your unpaid mortgage of $23,000 on your old home, your sales price would still be $50,000 (the $27,000 trade-in allowed plus the $23,000 mortgage assumed). 1040ez printable tax forms Transfer to spouse. 1040ez printable tax forms   If you transfer your home to your spouse or you transfer it to your former spouse incident to your divorce, you in most cases have no gain or loss. 1040ez printable tax forms This is true even if you receive cash or other consideration for the home. 1040ez printable tax forms As a result, the rules in this chapter do not apply. 1040ez printable tax forms More information. 1040ez printable tax forms   If you need more information, see Transfer to spouse in Publication 523 and Property Settlements in Publication 504, Divorced or Separated Individuals. 1040ez printable tax forms Involuntary conversion. 1040ez printable tax forms   You have a disposition when your home is destroyed or condemned and you receive other property or money in payment, such as insurance or a condemnation award. 1040ez printable tax forms This is treated as a sale and you may be able to exclude all or part of any gain from the destruction or condemnation of your home, as explained later under Special Situations . 1040ez printable tax forms Determining Basis You need to know your basis in your home to figure any gain or loss when you sell it. 1040ez printable tax forms Your basis in your home is determined by how you got the home. 1040ez printable tax forms Generally, your basis is its cost if you bought it or built it. 1040ez printable tax forms If you got it in some other way (inheritance, gift, etc. 1040ez printable tax forms ), your basis is generally either its fair market value when you received it or the adjusted basis of the previous owner. 1040ez printable tax forms While you owned your home, you may have made adjustments (increases or decreases) to your home's basis. 1040ez printable tax forms The result of these adjustments is your home's adjusted basis, which is used to figure gain or loss on the sale of your home. 1040ez printable tax forms See Adjusted Basis , later. 1040ez printable tax forms You can find more information on basis and adjusted basis in chapter 13 of this publication and in Publication 523. 1040ez printable tax forms Cost As Basis The cost of property is the amount you paid for it in cash, debt obligations, other property, or services. 1040ez printable tax forms Purchase. 1040ez printable tax forms   If you bought your home, your basis is its cost to you. 1040ez printable tax forms This includes the purchase price and certain settlement or closing costs. 1040ez printable tax forms In most cases, your purchase price includes your down payment and any debt, such as a first or second mortgage or notes you gave the seller in payment for the home. 1040ez printable tax forms If you build, or contract to build, a new home, your purchase price can include costs of construction, as discussed in Publication 523. 1040ez printable tax forms Settlement fees or closing costs. 1040ez printable tax forms   When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. 1040ez printable tax forms You can include in your basis some of the settlement fees and closing costs you paid for buying the home, but not the fees and costs for getting a mortgage loan. 1040ez printable tax forms A fee paid for buying the home is any fee you would have had to pay even if you paid cash for the home (that is, without the need for financing). 1040ez printable tax forms    Chapter 13 lists some of the settlement fees and closing costs that you can include in the basis of property, including your home. 1040ez printable tax forms It also lists some settlement costs that cannot be included in basis. 1040ez printable tax forms   Also see Publication 523 for additional items and a discussion of basis other than cost. 1040ez printable tax forms Adjusted Basis Adjusted basis is your cost or other basis increased or decreased by certain amounts. 1040ez printable tax forms To figure your adjusted basis, you can use Worksheet 1 in Publication 523. 1040ez printable tax forms Do not use Worksheet 1 if you acquired an interest in your home from a decedent who died in 2010 and whose executor filed Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent. 1040ez printable tax forms Increases to basis. 1040ez printable tax forms   These include the following. 1040ez printable tax forms Additions and other improvements that have a useful life of more than 1 year. 1040ez printable tax forms Special assessments for local improvements. 1040ez printable tax forms Amounts you spent after a casualty to restore damaged property. 1040ez printable tax forms Improvements. 1040ez printable tax forms   These add to the value of your home, prolong its useful life, or adapt it to new uses. 1040ez printable tax forms You add the cost of additions and other improvements to the basis of your property. 1040ez printable tax forms   For example, putting a recreation room or another bathroom in your unfinished basement, putting up a new fence, putting in new plumbing or wiring, putting on a new roof, or paving your unpaved driveway are improvements. 1040ez printable tax forms An addition to your house, such as a new deck, a sunroom, or a new garage, is also an improvement. 1040ez printable tax forms Repairs. 1040ez printable tax forms   These maintain your home in good condition but do not add to its value or prolong its life. 1040ez printable tax forms You do not add their cost to the basis of your property. 1040ez printable tax forms   Examples of repairs include repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes. 1040ez printable tax forms Decreases to basis. 1040ez printable tax forms   These include the following. 1040ez printable tax forms Discharge of qualified principal residence indebtedness that was excluded from income. 1040ez printable tax forms Some or all of the cancellation of debt income that was excluded due to your bankruptcy or insolvency. 1040ez printable tax forms For details, see Publication 4681. 1040ez printable tax forms Gain you postponed from the sale of a previous home before May 7, 1997. 1040ez printable tax forms Deductible casualty losses. 1040ez printable tax forms Insurance payments you received or expect to receive for casualty losses. 1040ez printable tax forms Payments you received for granting an easement or right-of-way. 1040ez printable tax forms Depreciation allowed or allowable if you used your home for business or rental purposes. 1040ez printable tax forms Energy-related credits allowed for expenditures made on the residence. 1040ez printable tax forms (Reduce the increase in basis otherwise allowable for expenditures on the residence by the amount of credit allowed for those expenditures. 1040ez printable tax forms ) Adoption credit you claimed for improvements added to the basis of your home. 1040ez printable tax forms Nontaxable payments from an adoption assistance program of your employer you used for improvements you added to the basis of your home. 1040ez printable tax forms Energy conservation subsidy excluded from your gross income because you received it (directly or indirectly) from a public utility after 1992 to buy or install any energy conservation measure. 1040ez printable tax forms An energy conservation measure is an installation or modification primarily designed either to reduce consumption of electricity or natural gas or to improve the management of energy demand for a home. 1040ez printable tax forms District of Columbia first-time homebuyer credit (allowed on the purchase of a principal residence in the District of Columbia beginning on August 5, 1997 and before January 1, 2012). 1040ez printable tax forms General sales taxes (allowed beginning 2004 and ending before 2014) claimed as an itemized deduction on Schedule A (Form 1040) that were imposed on the purchase of personal property, such as a houseboat used as your home or a mobile home. 1040ez printable tax forms Discharges of qualified principal residence indebtedness. 1040ez printable tax forms   You may be able to exclude from gross income a discharge of qualified principal residence indebtedness. 1040ez printable tax forms This exclusion applies to discharges made after 2006 and before 2014. 1040ez printable tax forms If you choose to exclude this income, you must reduce (but not below zero) the basis of the principal residence by the amount excluded from your gross income. 1040ez printable tax forms   File Form 982 with your tax return. 1040ez printable tax forms See the form's instructions for detailed information. 1040ez printable tax forms Recordkeeping. 1040ez printable tax forms You should keep records to prove your home's adjusted basis. 1040ez printable tax forms Ordinarily, you must keep records for 3 years after the due date for filing your return for the tax year in which you sold your home. 1040ez printable tax forms But if you sold a home before May 7, 1997, and postponed tax on any gain, the basis of that home affects the basis of the new home you bought. 1040ez printable tax forms Keep records proving the basis of both homes as long as they are needed for tax purposes. 1040ez printable tax forms The records you should keep include: Proof of the home's purchase price and purchase expenses, Receipts and other records for all improvements, additions, and other items that affect the home's adjusted basis, Any worksheets or other computations you used to figure the adjusted basis of the home you sold, the gain or loss on the sale, the exclusion, and the taxable gain, Any Form 982 you filed to report any discharge of qualified principal residence indebtedness, Any Form 2119, Sale of Your Home, you filed to postpone gain from the sale of a previous home before May 7, 1997, and Any worksheets you used to prepare Form 2119, such as the Adjusted Basis of Home Sold Worksheet or the Capital Improvements Worksheet from the Form 2119 instructions, or other source of computations. 1040ez printable tax forms Excluding the Gain You may qualify to exclude from your income all or part of any gain from the sale of your main home. 1040ez printable tax forms This means that, if you qualify, you will not have to pay tax on the gain up to the limit described under Maximum Exclusion , next. 1040ez printable tax forms To qualify, you must meet the ownership and use tests described later. 1040ez printable tax forms You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale. 1040ez printable tax forms You can use Worksheet 2 in Publication 523 to figure the amount of your exclusion and your taxable gain, if any. 1040ez printable tax forms If you have any taxable gain from the sale of your home, you may have to increase your withholding or make estimated tax payments. 1040ez printable tax forms See Publication 505, Tax Withholding and Estimated Tax. 1040ez printable tax forms Maximum Exclusion You can exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true. 1040ez printable tax forms You meet the ownership test. 1040ez printable tax forms You meet the use test. 1040ez printable tax forms During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home. 1040ez printable tax forms For details on gain allocated to periods of nonqualified use, see Periods of nonqualified use , later. 1040ez printable tax forms You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons . 1040ez printable tax forms Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. 1040ez printable tax forms This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least 2 years (the ownership test), and Lived in the home as your main home for at least 2 years (the use test). 1040ez printable tax forms Exception. 1040ez printable tax forms   If you owned and lived in the property as your main home for less than 2 years, you can still claim an exclusion in some cases. 1040ez printable tax forms However, the maximum amount you may be able to exclude will be reduced. 1040ez printable tax forms See Reduced Maximum Exclusion , later. 1040ez printable tax forms Example 1—home owned and occupied for at least 2 years. 1040ez printable tax forms Mya bought and moved into her main home in September 2011. 1040ez printable tax forms She sold the home at a gain in October 2013. 1040ez printable tax forms During the 5-year period ending on the date of sale in October 2013, she owned and lived in the home for more than 2 years. 1040ez printable tax forms She meets the ownership and use tests. 1040ez printable tax forms Example 2—ownership test met but use test not met. 1040ez printable tax forms Ayden bought a home, lived in it for 6 months, moved out, and never occupied the home again. 1040ez printable tax forms He later sold the home for a gain. 1040ez printable tax forms He owned the home during the entire 5-year period ending on the date of sale. 1040ez printable tax forms He meets the ownership test but not the use test. 1040ez printable tax forms He cannot exclude any part of his gain on the sale unless he qualified for a reduced maximum exclusion (explained later). 1040ez printable tax forms Period of Ownership and Use The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous nor do they both have to occur at the same time. 1040ez printable tax forms You meet the tests if you can show that you owned and lived in the property as your main home for either 24 full months or 730 days (365 × 2) during the 5-year period ending on the date of sale. 1040ez printable tax forms Temporary absence. 1040ez printable tax forms   Short temporary absences for vacations or other seasonal absences, even if you rent out the property during the absences, are counted as periods of use. 1040ez printable tax forms The following examples assume that the reduced maximum exclusion (discussed later) does not apply to the sales. 1040ez printable tax forms Example 1. 1040ez printable tax forms David Johnson, who is single, bought and moved into his home on February 1, 2011. 1040ez printable tax forms Each year during 2011 and 2012, David left his home for a 2-month summer vacation. 1040ez printable tax forms David sold the house on March 1, 2013. 1040ez printable tax forms Although the total time David used his home is less than 2 years (21 months), he meets the requirement and may exclude gain. 1040ez printable tax forms The 2-month vacations are short temporary absences and are counted as periods of use in determining whether David used the home for the required 2 years. 1040ez printable tax forms Example 2. 1040ez printable tax forms Professor Paul Beard, who is single, bought and moved into a house on August 18, 2010. 1040ez printable tax forms He lived in it as his main home continuously until January 5, 2012, when he went abroad for a 1-year sabbatical leave. 1040ez printable tax forms On February 6, 2013, 1 month after returning from the leave, Paul sold the house at a gain. 1040ez printable tax forms Because his leave was not a short temporary absence, he cannot include the period of leave to meet the 2-year use test. 1040ez printable tax forms He cannot exclude any part of his gain, because he did not use the residence for the required 2 years. 1040ez printable tax forms Ownership and use tests met at different times. 1040ez printable tax forms   You can meet the ownership and use tests during different 2-year periods. 1040ez printable tax forms However, you must meet both tests during the 5-year period ending on the date of the sale. 1040ez printable tax forms Example. 1040ez printable tax forms Beginning in 2002, Helen Jones lived in a rented apartment. 1040ez printable tax forms The apartment building was later converted to condominiums, and she bought her same apartment on December 3, 2010. 1040ez printable tax forms In 2011, Helen became ill and on April 14 of that year she moved to her daughter's home. 1040ez printable tax forms On July 12, 2013, while still living in her daughter's home, she sold her condominium. 1040ez printable tax forms Helen can exclude gain on the sale of her condominium because she met the ownership and use tests during the 5-year period from July 13, 2008, to July 12, 2013, the date she sold the condominium. 1040ez printable tax forms She owned her condominium from December 3, 2010, to July 12, 2013 (more than 2 years). 1040ez printable tax forms She lived in the property from July 13, 2008 (the beginning of the 5-year period), to April 14, 2011 (more than 2 years). 1040ez printable tax forms The time Helen lived in her daughter's home during the 5-year period can be counted toward her period of ownership, and the time she lived in her rented apartment during the 5-year period can be counted toward her period of use. 1040ez printable tax forms Cooperative apartment. 1040ez printable tax forms   If you sold stock as a tenant-stockholder in a cooperative housing corporation, the ownership and use tests are met if, during the 5-year period ending on the date of sale, you: Owned the stock for at least 2 years, and Lived in the house or apartment that the stock entitles you to occupy as your main home for at least 2 years. 1040ez printable tax forms Exceptions to Ownership and Use Tests The following sections contain exceptions to the ownership and use tests for certain taxpayers. 1040ez printable tax forms Exception for individuals with a disability. 1040ez printable tax forms   There is an exception to the use test if: You become physically or mentally unable to care for yourself, and You owned and lived in your home as your main home for a total of at least 1 year during the 5-year period before the sale of your home. 1040ez printable tax forms Under this exception, you are considered to live in your home during any time within the 5-year period that you own the home and live in a facility (including a nursing home) licensed by a state or political subdivision to care for persons in your condition. 1040ez printable tax forms If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion. 1040ez printable tax forms Previous home destroyed or condemned. 1040ez printable tax forms   For the ownership and use tests, you add the time you owned and lived in a previous home that was destroyed or condemned to the time you owned and lived in the replacement home on whose sale you wish to exclude gain. 1040ez printable tax forms This rule applies if any part of the basis of the home you sold depended on the basis of the destroyed or condemned home. 1040ez printable tax forms Otherwise, you must have owned and lived in the same home for 2 of the 5 years before the sale to qualify for the exclusion. 1040ez printable tax forms Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps. 1040ez printable tax forms   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve on “qualified official extended duty” as a member of the uniformed services or Foreign Service of the United States, or as an employee of the intelligence community. 1040ez printable tax forms You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse serve outside the United States either as an employee of the Peace Corps on "qualified official extended duty" or as an enrolled volunteer or volunteer leader of the Peace Corps. 1040ez printable tax forms This means that you may be able to meet the 2-year use test even if, because of your service, you did not actually live in your home for at least the required 2 years during the 5-year period ending on the date of sale. 1040ez printable tax forms   If this helps you qualify to exclude gain, you can choose to have the 5-year test period suspended by filing a return for the year of sale that does not include the gain. 1040ez printable tax forms For more information about the suspension of the 5-year test period, see Members of the uniformed services or Foreign Service, employees of the intelligence community, or employees or volunteers of the Peace Corps in Publication 523. 1040ez printable tax forms Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the gain. 1040ez printable tax forms (But see Special rules for joint returns , next. 1040ez printable tax forms ) Special rules for joint returns. 1040ez printable tax forms   You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. 1040ez printable tax forms You are married and file a joint return for the year. 1040ez printable tax forms Either you or your spouse meets the ownership test. 1040ez printable tax forms Both you and your spouse meet the use test. 1040ez printable tax forms During the 2-year period ending on the date of the sale, neither you nor your spouse excluded gain from the sale of another home. 1040ez printable tax forms If either spouse does not satisfy all these requirements, the maximum exclusion that can be claimed by the couple is the total of the maximum exclusions that each spouse would qualify for if not married and the amounts were figured separately. 1040ez printable tax forms For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. 1040ez printable tax forms Example 1—one spouse sells a home. 1040ez printable tax forms Emily sells her home in June 2013 for a gain of $300,000. 1040ez printable tax forms She marries Jamie later in the year. 1040ez printable tax forms She meets the ownership and use tests, but Jamie does not. 1040ez printable tax forms Emily can exclude up to $250,000 of gain on a separate or joint return for 2013. 1040ez printable tax forms The $500,000 maximum exclusion for certain joint returns does not apply because Jamie does not meet the use test. 1040ez printable tax forms Example 2—each spouse sells a home. 1040ez printable tax forms The facts are the same as in Example 1 except that Jamie also sells a home in 2013 for a gain of $200,000 before he marries Emily. 1040ez printable tax forms He meets the ownership and use tests on his home, but Emily does not. 1040ez printable tax forms Emily can exclude $250,000 of gain and Jamie can exclude $200,000 of gain on the respective sales of their individual homes. 1040ez printable tax forms However, Emily cannot use Jamie's unused exclusion to exclude more than $250,000 of gain. 1040ez printable tax forms Therefore, Emily and Jamie must recognize $50,000 of gain on the sale of Emily's home. 1040ez printable tax forms The $500,000 maximum exclusion for certain joint returns does not apply because Emily and Jamie do not both meet the use test for the same home. 1040ez printable tax forms Sale of main home by surviving spouse. 1040ez printable tax forms   If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home. 1040ez printable tax forms   If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. 1040ez printable tax forms The sale or exchange took place after 2008. 1040ez printable tax forms The sale or exchange took place no more than 2 years after the date of death of your spouse. 1040ez printable tax forms You have not remarried. 1040ez printable tax forms You and your spouse met the use test at the time of your spouse's death. 1040ez printable tax forms You or your spouse met the ownership test at the time of your spouse's death. 1040ez printable tax forms Neither you nor your spouse excluded gain from the sale of another home during the last 2 years. 1040ez printable tax forms Example. 1040ez printable tax forms   Harry owned and used a house as his main home since 2009. 1040ez printable tax forms Harry and Wilma married on July 1, 2013, and from that date they use Harry's house as their main home. 1040ez printable tax forms Harry died on August 15, 2013, and Wilma inherited the property. 1040ez printable tax forms Wilma sold the property on September 3, 2013, at which time she had not remarried. 1040ez printable tax forms Although Wilma owned and used the house for less than 2 years, Wilma is considered to have satisfied the ownership and use tests because her period of ownership and use includes the period that Harry owned and used the property before death. 1040ez printable tax forms Home transferred from spouse. 1040ez printable tax forms   If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it. 1040ez printable tax forms Use of home after divorce. 1040ez printable tax forms   You are considered to have used property as your main home during any period when: You owned it, and Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as his or her main home. 1040ez printable tax forms Reduced Maximum Exclusion If you fail to meet the requirements to qualify for the $250,000 or $500,000 exclusion, you may still qualify for a reduced exclusion. 1040ez printable tax forms This applies to those who: Fail to meet the ownership and use tests, or Have used the exclusion within 2 years of selling their current home. 1040ez printable tax forms In both cases, to qualify for a reduced exclusion, the sale of your main home must be due to one of the following reasons. 1040ez printable tax forms A change in place of employment. 1040ez printable tax forms Health. 1040ez printable tax forms Unforeseen circumstances. 1040ez printable tax forms Unforeseen circumstances. 1040ez printable tax forms   The sale of your main home is because of an unforeseen circumstance if your primary reason for the sale is the occurrence of an event that you could not reasonably have anticipated before buying and occupying your main home. 1040ez printable tax forms   See Publication 523 for more information and to use Worksheet 3 to figure your reduced maximum exclusion. 1040ez printable tax forms Business Use or Rental of Home You may be able to exclude gain from the sale of a home you have used for business or to produce rental income. 1040ez printable tax forms But you must meet the ownership and use tests. 1040ez printable tax forms Periods of nonqualified use. 1040ez printable tax forms   In most cases, gain from the sale or exchange of your main home will not qualify for the exclusion to the extent that the gains are allocated to periods of nonqualified use. 1040ez printable tax forms Nonqualified use is any period after 2008 during which neither you nor your spouse (or your former spouse) used the property as a main home with the following exceptions. 1040ez printable tax forms Exceptions. 1040ez printable tax forms   A period of nonqualified use does not include: Any portion of the 5-year period ending on the date of the sale or exchange after the last date you (or your spouse) use the property as a main home; Any period (not to exceed an aggregate period of 10 years) during which you (or your spouse) are serving on qualified official extended duty: As a member of the uniformed services; As a member of the Foreign Service of the United States; or As an employee of the intelligence community; and Any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the IRS. 1040ez printable tax forms The gain resulting from the sale of the property is allocated between qualified and nonqualified use periods based on the amount of time the property was held for qualified and nonqualified use. 1040ez printable tax forms Gain from the sale or exchange of a main home allocable to periods of qualified use will continue to qualify for the exclusion for the sale of your main home. 1040ez printable tax forms Gain from the sale or exchange of property allocable to nonqualified use will not qualify for the exclusion. 1040ez printable tax forms Calculation. 1040ez printable tax forms   To figure the portion of the gain allocated to the period of nonqualified use, multiply the gain by the following fraction:   Total nonqualified use during the period of ownership after 2008      Total period of ownership     This calculation can be found in Worksheet 2, line 10, in Publication 523. 1040ez printable tax forms Example 1. 1040ez printable tax forms On May 23, 2007, Amy, who is unmarried for all years in this example, bought a house. 1040ez printable tax forms She moved in on that date and lived in it until May 31, 2009, when she moved out of the house and put it up for rent. 1040ez printable tax forms The house was rented from June 1, 2009, to March 31, 2011. 1040ez printable tax forms Amy claimed depreciation deductions in 2009 through 2011 totaling $10,000. 1040ez printable tax forms Amy moved back into the house on April 1, 2011, and lived there until she sold it on January 31, 2013, for a gain of $200,000. 1040ez printable tax forms During the 5-year period ending on the date of the sale (January 31, 2008-January 31, 2013), Amy owned and lived in the house for more than 2 years as shown in the following table. 1040ez printable tax forms Five Year Period Used as  Home Used as  Rental 1/31/08 – 5/31/09 16 months       6/1/09 – 3/31/11   22 months 4/1/11 – 1/31/13 22 months         38 months 22 months During the period Amy owned the house (2,080 days), her period of nonqualified use was 668 days. 1040ez printable tax forms Amy divides 668 by 2,080 and obtains a decimal (rounded to at least three decimal places) of 0. 1040ez printable tax forms 321. 1040ez printable tax forms To figure her gain attributable to the period of nonqualified use, she multiplies $190,000 (the gain not attributable to the $10,000 depreciation deduction) by 0. 1040ez printable tax forms 321. 1040ez printable tax forms Because the gain attributable to periods of nonqualified use is $60,990, Amy can exclude $129,010 of her gain. 1040ez printable tax forms Example 2. 1040ez printable tax forms William owned and used a house as his main home from 2007 through 2010. 1040ez printable tax forms On January 1, 2011, he moved to another state. 1040ez printable tax forms He rented his house from that date until April 30, 2013, when he sold it. 1040ez printable tax forms During the 5-year period ending on the date of sale (May 1, 2008-April 30, 2013), William owned and lived in the house for more than 2 years. 1040ez printable tax forms He must report the sale on Form 4797 because it was rental property at the time of sale. 1040ez printable tax forms Because the period of nonqualified use does not include any part of the 5-year period after the last date William lived in the house, he has no period of nonqualified use. 1040ez printable tax forms Because he met the ownership and use tests, he can exclude gain up to $250,000. 1040ez printable tax forms However, he cannot exclude the part of the gain equal to the depreciation he claimed or could have claimed for renting the house, as explained next. 1040ez printable tax forms Depreciation after May 6, 1997. 1040ez printable tax forms   If you were entitled to take depreciation deductions because you used your home for business purposes or as rental property, you cannot exclude the part of your gain equal to any depreciation allowed or allowable as a deduction for periods after May 6, 1997. 1040ez printable tax forms If you can show by adequate records or other evidence that the depreciation allowed was less than the amount allowable, then you may limit the amount of gain recognized to the depreciation allowed. 1040ez printable tax forms See Publication 544 for more information. 1040ez printable tax forms Property used partly for business or rental. 1040ez printable tax forms   If you used property partly as a home and partly for business or to produce rental income, see Publication 523. 1040ez printable tax forms Reporting the Sale Do not report the 2013 sale of your main home on your tax return unless: You have a gain and do not qualify to exclude all of it, You have a gain and choose not to exclude it, or You received Form 1099-S. 1040ez printable tax forms If any of these conditions apply, report the entire gain or loss. 1040ez printable tax forms For details on how to report the gain or loss, see the Instructions for Schedule D (Form 1040) and the Instructions for Form 8949. 1040ez printable tax forms If you used the home for business or to produce rental income, you may have to use Form 4797 to report the sale of the business or rental part (or the sale of the entire property if used entirely for business or rental). 1040ez printable tax forms See Business Use or Rental of Home in Publication 523 and the Instructions for Form 4797. 1040ez printable tax forms Installment sale. 1040ez printable tax forms    Some sales are made under arrangements that provide for part or all of the selling price to be paid in a later year. 1040ez printable tax forms These sales are called “installment sales. 1040ez printable tax forms ” If you finance the buyer's purchase of your home yourself instead of having the buyer get a loan or mortgage from a bank, you probably have an installment sale. 1040ez printable tax forms You may be able to report the part of the gain you cannot exclude on the installment basis. 1040ez printable tax forms    Use Form 6252, Installment Sale Income, to report the sale. 1040ez printable tax forms Enter your exclusion on line 15 of Form 6252. 1040ez printable tax forms Seller-financed mortgage. 1040ez printable tax forms   If you sell your home and hold a note, mortgage, or other financial agreement, the payments you receive in most cases consist of both interest and principal. 1040ez printable tax forms You must separately report as interest income the interest you receive as part of each payment. 1040ez printable tax forms If the buyer of your home uses the property as a main or second home, you must also report the name, address, and social security number (SSN) of the buyer on line 1 of Schedule B (Form 1040A or 1040). 1040ez printable tax forms The buyer must give you his or her SSN, and you must give the buyer your SSN. 1040ez printable tax forms Failure to meet these requirements may result in a $50 penalty for each failure. 1040ez printable tax forms If either you or the buyer does not have and is not eligible to get an SSN, see Social Security Number in chapter 1. 1040ez printable tax forms More information. 1040ez printable tax forms   For more information on installment sales, see Publication 537, Installment Sales. 1040ez printable tax forms Special Situations The situations that follow may affect your exclusion. 1040ez printable tax forms Sale of home acquired in a like-kind exchange. 1040ez printable tax forms   You cannot claim the exclusion if: You acquired your home in a like-kind exchange (also known as a section 1031 exchange), or your basis in your home is determined by reference to the basis of the home in the hands of the person who acquired the property in a like-kind exchange (for example, you received the home from that person as a gift), and You sold the home during the 5-year period beginning with the date your home was acquired in the like-kind exchange. 1040ez printable tax forms Gain from a like-kind exchange is not taxable at the time of the exchange. 1040ez printable tax forms This means that gain will not be taxed until you sell or otherwise dispose of the property you receive. 1040ez printable tax forms To defer gain from a like-kind exchange, you must have exchanged business or investment property for business or investment property of a like kind. 1040ez printable tax forms For more information about like-kind exchanges, see Publication 544, Sales and Other Dispositions of Assets. 1040ez printable tax forms Home relinquished in a like-kind exchange. 1040ez printable tax forms   If you use your main home partly for business or rental purposes and then exchange the home for another property, see Publication 523. 1040ez printable tax forms Expatriates. 1040ez printable tax forms   You cannot claim the exclusion if the expatriation tax applies to you. 1040ez printable tax forms The expatriation tax applies to certain U. 1040ez printable tax forms S. 1040ez printable tax forms citizens who have renounced their citizenship (and to certain long-term residents who have ended their residency). 1040ez printable tax forms For more information about the expatriation tax, see Expatriation Tax in chapter 4 of Publication 519, U. 1040ez printable tax forms S. 1040ez printable tax forms Tax Guide for Aliens. 1040ez printable tax forms Home destroyed or condemned. 1040ez printable tax forms   If your home was destroyed or condemned, any gain (for example, because of insurance proceeds you received) qualifies for the exclusion. 1040ez printable tax forms   Any part of the gain that cannot be excluded (because it is more than the maximum exclusion) can be postponed under the rules explained in: Publication 547, in the case of a home that was destroyed, or Publication 544, chapter 1, in the case of a home that was condemned. 1040ez printable tax forms Sale of remainder interest. 1040ez printable tax forms   Subject to the other rules in this chapter, you can choose to exclude gain from the sale of a remainder interest in your home. 1040ez printable tax forms If you make this choice, you cannot choose to exclude gain from your sale of any other interest in the home that you sell separately. 1040ez printable tax forms Exception for sales to related persons. 1040ez printable tax forms   You cannot exclude gain from the sale of a remainder interest in your home to a related person. 1040ez printable tax forms Related persons include your brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. 1040ez printable tax forms ), and lineal descendants (children, grandchildren, etc. 1040ez printable tax forms ). 1040ez printable tax forms Related persons also include certain corporations, partnerships, trusts, and exempt organizations. 1040ez printable tax forms Recapturing (Paying Back) a Federal Mortgage Subsidy If you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. 1040ez printable tax forms You recapture the benefit by increasing your federal income tax for the year of the sale. 1040ez printable tax forms You may have to pay this recapture tax even if you can exclude your gain from income under the rules discussed earlier; that exclusion does not affect the recapture tax. 1040ez printable tax forms Loans subject to recapture rules. 1040ez printable tax forms   The recapture applies to loans that: Came from the proceeds of qualified mortgage bonds, or Were based on mortgage credit certificates. 1040ez printable tax forms The recapture also applies to assumptions of these loans. 1040ez printable tax forms When recapture applies. 1040ez printable tax forms   Recapture of the federal mortgage subsidy applies only if you meet both of the following conditions. 1040ez printable tax forms You sell or otherwise dispose of your home at a gain within the first 9 years after the date you close your mortgage loan. 1040ez printable tax forms Your income for the year of disposition is more than that year's adjusted qualifying income for your family size for that year (related to the income requirements a person must meet to qualify for the federally subsidized program). 1040ez printable tax forms When recapture does not apply. 1040ez printable tax forms   Recapture does not apply in any of the following situations. 1040ez printable tax forms Your mortgage loan was a qualified home improvement loan (QHIL) of not more than $15,000 used for alterations, repairs, and improvements that protect or improve the basic livability or energy efficiency of your home. 1040ez printable tax forms Your mortgage loan was a QHIL of not more than $150,000 in the case of a QHIL used to repair damage from Hurricane Katrina to homes in the hurricane disaster area; a QHIL funded by a qualified mortgage bond that is a qualified Gulf Opportunity Zone Bond; or a QHIL for an owner-occupied home in the Gulf Opportunity Zone (GO Zone), Rita GO Zone, or Wilma GO Zone. 1040ez printable tax forms For more information, see Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma. 1040ez printable tax forms Also see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. 1040ez printable tax forms The home is disposed of as a result of your death. 1040ez printable tax forms You dispose of the home more than 9 years after the date you closed your mortgage loan. 1040ez printable tax forms You transfer the home to your spouse, or to your former spouse incident to a divorce, where no gain is included in your income. 1040ez printable tax forms You dispose of the home at a loss. 1040ez printable tax forms Your home is destroyed by a casualty, and you replace it on its original site within 2 years after the end of the tax year when the destruction happened. 1040ez printable tax forms The replacement period is extended for main homes destroyed in a federally declared disaster area, a Midwestern disaster area, the Kansas disaster area, and the Hurricane Katrina disaster area. 1040ez printable tax forms For more information, see Replacement Period in Publication 547. 1040ez printable tax forms You refinance your mortgage loan (unless you later meet the conditions listed previously under When recapture applies ). 1040ez printable tax forms Notice of amounts. 1040ez printable tax forms   At or near the time of settlement of your mortgage loan, you should receive a notice that provides the federally subsidized amount and other information you will need to figure your recapture tax. 1040ez printable tax forms How to figure and report the recapture. 1040ez printable tax forms    The recapture tax is figured on Form 8828. 1040ez printable tax forms If you sell your home and your mortgage is subject to recapture rules, you must file Form 8828 even if you do not owe a recapture tax. 1040ez printable tax forms Attach Form 8828 to your Form 1040. 1040ez printable tax forms For more information, see Form 8828 and its instructions. 1040ez printable tax forms Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

U.S. Citizens and Resident Aliens Abroad

If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.

When to File

If you are a U.S. citizen or resident alien residing overseas, or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return and pay any amount due without requesting an extension. For a calendar year return, the automatic 2-month extension is to June 15.

If you are unable to file your return by the automatic 2-month extension date, you can request an additional extension to October 15 by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, before the automatic 2-month extension date. However, any tax due payments made after June 15 will be subject to both interest charges and failure to pay penalties.

Where to File

If you are a U.S. citizen or resident alien (Green Card Holder) and you live in a foreign country, mail your U.S. tax return to:

Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
USA

Estimated tax payments should be mailed with form 1040-ES to:

Internal Revenue Service
P.O. Box 1300
Charlotte, NC 28201-1300
USA

Taxpayers with an AGI (Adjusted Gross Income) of $58,000 or less can electronically file their tax return for free using freefile. Taxpayers with an AGI greater than $58,000 can either use the Free File Fillable Forms or efile by purchasing commercial software. A limited number of companies provide software that can accommodate foreign addresses. To determine which will work best for you, view the complete Free File Software list and the services provided.

Taxpayer Identification Number

Each taxpayer who files, or is claimed as a dependent on, a U.S. tax return will need a social security number (SSN) or individual taxpayer identification number (ITIN). To obtain a SSN, use form SS-5, Application for a Social Security Card. To get form SS-5, or to find out if you are eligible for a social security card, contact a Social Security Office or visit Social Security International Operations. If you, or your spouse, are not eligible for a SSN, you can obtain an ITIN by filing form W-7 along with appropriate documentation.

Exchange Rates

You must express the amounts you report on your U.S. tax return in U.S. dollars. If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U.S. dollars. Taxpayers generally use the yearly average exchange rate to report foreign-earned income that was received regularly throughout the year. However, if you had foreign transactions on specific days, you may also use the exchange rates for those days. Exchange rates can be found at Foreign Currency and Currency Exchange Rates. Yearly average currency exchange rates for most countries can be found at Yearly Average Currency Exchange Rates.

How to Get Tax Help

The IRS Office in Philadelphia provides international tax assistance. This office is open Monday through Friday from 6:00 a.m. to 11:00 p.m. EST and can be contacted by:

  • Phone: 1 (267) 941-1000 (not toll-free)
  • FAX:1 (267) 941-1055
  • Email: Email the IRS
    (e-mail is for general tax questions; NOT questions regarding your tax account)
  • Mail: Internal Revenue Service
    Philadelphia, Pa 19255-0725

The IRS has customer service personnel available to provide tax assistance in the following Embassies and Consulates abroad:

 

Permanent IRS Offices Outside the United States
Office Address Office Phone Numbers and Email

U.S. Consulate
Internal Revenue Service
Frankfurt
Giessener Str.
30
60435 Frankfurt am Main
Germany

Walk-in assistance by appointment only
Tuesdays 9:00 a.m.-12:30 p.m.
Call (49) (69) 7535-3811 to request an appointment.

Phone Service
Tel: [49] (69) 7535-3823
9:00 a.m.-12:30 p.m. and 1:30 p.m.-3:30 p.m.
Monday through Thursday
U.S. Embassy
Internal Revenue Service
London
24/31 Grosvenor Square
London W1A 1 AE
England
Walk-in assistance
Tuesday through Thursday
9:00 a.m. - 1:00 p.m. and 2:00 p.m. - 4:00 p.m.

Phone Service
Tel: [44] (207) 894-0477
Monday 9 a.m. to 4 p.m.
Tuesday through Thursday 9 a.m. to 12:00 noon.
Fax: [44] (207) 495-4224
U.S. Embassy
Internal Revenue Service
2 Avenue Gabriel
75382 Paris Cedex 08
France
Walk-in assistance
Monday through Friday
9:00 a.m.- 12:00 noon

Phone Service
Tel. [33] (1) 4312-2555
Monday - Friday 9:00 a.m. - 12:00 noon and 1:30 p.m. - 3:30 p.m.
Fax: +33-1-4312-2303
Email: irs.paris@irs.gov
U.S. Embassy Beijing
Internal Revenue Service
No. 55 An Jia Lou Lu
Beijing 100600
Peoples Republic of China
Walk-in assistance by appointment only.
Wednesdays 1:00 p.m. – 4:00 p.m.
Call or email to request an appointment.

Phone Service
Tel: [86] (10) 8531-3983
Fax: [86] (10) 8531-4287
Email: irs.beijing@irs.gov (for all inquiries)

 

Help with Unresolved Tax Problems

If you are experiencing a tax problem that is causing you economic harm or has not been resolved through normal channels, you can contact the Taxpayer Advocate.

References/Related Topics

Page Last Reviewed or Updated: 31-Jan-2014

The 1040ez Printable Tax Forms

1040ez printable tax forms 3. 1040ez printable tax forms   Lifetime Learning Credit Table of Contents Introduction Can You Claim the CreditWho Can Claim the Credit Who Cannot Claim the Credit What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses Figuring the CreditEffect of the Amount of Your Income on the Amount of Your Credit Claiming the Credit Introduction For 2013, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. 1040ez printable tax forms They are the American opportunity credit and the lifetime learning credit. 1040ez printable tax forms This chapter discusses the lifetime learning credit. 1040ez printable tax forms The American opportunity credit is discussed in chapter 2, The American Opportunity Credit . 1040ez printable tax forms This chapter explains: Who can claim the lifetime learning credit, What expenses qualify for the credit, Who is an eligible student, Who can claim a dependent's expenses, How to figure the credit, How to claim the credit, and When the credit must be repaid. 1040ez printable tax forms What is the tax benefit of the lifetime learning credit. 1040ez printable tax forms   For the tax year, you may be able to claim a lifetime learning credit of up to $2,000 for qualified education expenses paid for all eligible students. 1040ez printable tax forms There is no limit on the number of years the lifetime learning credit can be claimed for each student. 1040ez printable tax forms   A tax credit reduces the amount of income tax you may have to pay. 1040ez printable tax forms Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. 1040ez printable tax forms The lifetime learning credit is a nonrefundable credit. 1040ez printable tax forms This means that it can reduce your tax to zero, but if the credit is more than your tax the excess will not be refunded to you. 1040ez printable tax forms   Your allowable lifetime learning credit may be limited by the amount of your income and the amount of your tax. 1040ez printable tax forms Can you claim more than one education credit this year. 1040ez printable tax forms   For each student, you can elect for any year only one of the credits. 1040ez printable tax forms For example, if you elect to take the lifetime learning credit for a child on your 2013 tax return, you cannot, for that same child, also claim the American opportunity credit for 2013. 1040ez printable tax forms   If you are eligible to claim the lifetime learning credit and you are also eligible to claim the American opportunity credit for the same student in the same year, you can choose to claim either credit, but not both. 1040ez printable tax forms   If you pay qualified education expenses for more than one student in the same year, you can choose to take certain credits on a per-student, per-year basis. 1040ez printable tax forms This means that, for example, you can claim the American opportunity credit for one student and the lifetime learning credit for another student in the same year. 1040ez printable tax forms Differences between the American opportunity and lifetime learning credits. 1040ez printable tax forms   There are several differences between these two credits. 1040ez printable tax forms For example, you can claim the American opportunity credit for the same student for no more than 4 tax years, but any year in which the Hope Scholarship Credit was claimed counts toward the 4 years. 1040ez printable tax forms However, there is no limit on the number of years for which you can claim a lifetime learning credit based on the same student's expenses. 1040ez printable tax forms The differences between these credits are shown in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 near the end of this publication. 1040ez printable tax forms Overview of the lifetime learning credit. 1040ez printable tax forms   See Table 3-1, Overview of the Lifetime Learning Credit for the basics of the lifetime learning credit. 1040ez printable tax forms The details are discussed in this chapter. 1040ez printable tax forms Can You Claim the Credit The following rules will help you determine if you are eligible to claim the lifetime learning credit on your tax return. 1040ez printable tax forms Who Can Claim the Credit Generally, you can claim the lifetime learning credit if all three of the following requirements are met. 1040ez printable tax forms You pay qualified education expenses of higher education. 1040ez printable tax forms You pay the education expenses for an eligible student. 1040ez printable tax forms The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. 1040ez printable tax forms Table 3-1. 1040ez printable tax forms Overview of the Lifetime Learning Credit Maximum credit Up to $2,000 credit per return Limit on modified adjusted gross income (MAGI) $127,000 if married filling jointly;  $63,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable Nonrefundable—credit limited to the amount of tax you must pay on your taxable income Number of years of postsecondary education Available for all years of postsecondary education and for courses to acquire or improve job skills Number of tax years credit available Available for an unlimited number of years Type of program required Student does not need to be pursuing a program leading to a degree or other recognized education credential Number of courses Available for one or more courses Felony drug conviction Felony drug convictions do not make the student ineligible Qualified expenses Tuition and fees required for enrollment or attendance (including amounts required to be paid to the institution for course-related books, supplies, and equipment) Payments for academic periods Payments made in 2013 for academic periods beginning in 2013 or beginning in the first 3 months of 2014 Note. 1040ez printable tax forms Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. 1040ez printable tax forms “Qualified education expenses” are defined later under Qualified Education Expenses . 1040ez printable tax forms “Eligible students” are defined later under Who Is an Eligible Student . 1040ez printable tax forms A dependent for whom you claim an exemption is defined later under Who Can Claim a Dependent's Expenses . 1040ez printable tax forms You may find Figure 3-1, Can You Claim the Lifetime Learning Credit for 2013 , later, helpful in determining if you can claim a lifetime learning credit on your tax return. 1040ez printable tax forms Who Cannot Claim the Credit You cannot claim the lifetime learning credit for 2013 if any of the following apply. 1040ez printable tax forms Your filing status is married filing separately. 1040ez printable tax forms You are listed as a dependent on another person's tax return (such as your parents'). 1040ez printable tax forms See Who Can Claim a Dependent's Expenses , later. 1040ez printable tax forms Your modified adjusted gross income (MAGI) is $63,000 or more ($127,000 or more in the case of a joint return). 1040ez printable tax forms MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit . 1040ez printable tax forms 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. 1040ez printable tax forms More information on nonresident aliens can be found in Publication 519. 1040ez printable tax forms You claim the American Opportunity Credit (see chapter 2) or a Tuition and Fees Deduction (see chapter 6) for the same student in 2013. 1040ez printable tax forms What Expenses Qualify The lifetime learning credit 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. 1040ez printable tax forms Generally, the credit is allowed for qualified education expenses paid in 2013 for an academic period beginning in 2013 or in the first 3 months of 2014. 1040ez printable tax forms For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 credit. 1040ez printable tax forms Academic period. 1040ez printable tax forms   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. 1040ez printable tax forms 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. 1040ez printable tax forms Paid with borrowed funds. 1040ez printable tax forms   You can claim a lifetime learning credit for qualified education expenses paid with the proceeds of a loan. 1040ez printable tax forms You use the expenses to figure the lifetime learning credit for the year in which the expenses are paid, not the year in which the loan is repaid. 1040ez printable tax forms Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. 1040ez printable tax forms Student withdraws from class(es). 1040ez printable tax forms   You can claim a lifetime learning credit for qualified education expenses not refunded when a student withdraws. 1040ez printable tax forms Qualified Education Expenses For purposes of the lifetime learning credit, qualified education expenses are tuition and certain related expenses required for enrollment in a course at an eligible educational institution. 1040ez printable tax forms The course must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills. 1040ez printable tax forms Eligible educational institution. 1040ez printable tax forms   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. 1040ez printable tax forms S. 1040ez printable tax forms Department of Education. 1040ez printable tax forms It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. 1040ez printable tax forms The educational institution should be able to tell you if it is an eligible educational institution. 1040ez printable tax forms   Certain educational institutions located outside the United States also participate in the U. 1040ez printable tax forms S. 1040ez printable tax forms Department of Education's Federal Student Aid (FSA) programs. 1040ez printable tax forms Related expenses. 1040ez printable tax forms   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution for enrollment or attendance. 1040ez printable tax forms Prepaid expenses. 1040ez printable tax forms   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. 1040ez printable tax forms See Academic period , earlier. 1040ez printable tax forms For example, you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). 1040ez printable tax forms You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). 1040ez printable tax forms In the following examples, assume that each student is an eligible student at an eligible educational institution. 1040ez printable tax forms Example 1. 1040ez printable tax forms   Jackson is a sophomore in University V's degree program in dentistry. 1040ez printable tax forms This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. 1040ez printable tax forms Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified expense. 1040ez printable tax forms Example 2. 1040ez printable tax forms   Donna and Charles, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. 1040ez printable tax forms The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. 1040ez printable tax forms Charles bought his books from a friend, so what he paid for them is not a qualified education expense. 1040ez printable tax forms Donna bought hers at College W's bookstore. 1040ez printable tax forms Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. 1040ez printable tax forms Example 3. 1040ez printable tax forms   When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. 1040ez printable tax forms This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and student government. 1040ez printable tax forms No portion of the fee covers personal expenses. 1040ez printable tax forms Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. 1040ez printable tax forms Therefore, it is a qualified expense. 1040ez printable tax forms No Double Benefit Allowed You cannot do any of the following: Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim a lifetime learning credit based on those same expenses. 1040ez printable tax forms Claim a lifetime learning credit in the same year that you are claiming a tuition and fees deduction for the same student. 1040ez printable tax forms Claim a lifetime learning credit and an American opportunity credit based on the same qualified education expenses. 1040ez printable tax forms Claim a lifetime learning credit based on the same expenses used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or qualified tuition program (QTP). 1040ez printable tax forms See Coordination With American Opportunity and Lifetime Learning Credits in chapter 7, Coverdell Education Savings Account, and Coordination With American Opportunity and Lifetime Learning Credits in chapter 8, Qualified Tuition Program. 1040ez printable tax forms Claim a credit based on qualified education expenses paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. 1040ez printable tax forms See Adjustments to Qualified Education Expenses, next. 1040ez printable tax forms This image is too large to be displayed in the current screen. 1040ez printable tax forms Please click the link to view the image. 1040ez printable tax forms Figure 3-1 Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. 1040ez printable tax forms The result is the amount of adjusted qualified education expenses for each student. 1040ez printable tax forms Tax-free educational assistance. 1040ez printable tax forms   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. 1040ez printable tax forms See Academic period , earlier. 1040ez printable tax forms   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. 1040ez printable tax forms 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). 1040ez printable tax forms   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. 1040ez printable tax forms 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. 1040ez printable tax forms   Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 1040ez printable tax forms Generally, any scholarship or fellowship is treated as tax free. 1040ez printable tax forms However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. 1040ez printable tax forms The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 1040ez printable tax forms The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 1040ez printable tax forms You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. 1040ez printable tax forms For examples, see Coordination with Pell grants and other scholarships, later. 1040ez printable tax forms Refunds. 1040ez printable tax forms   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. 1040ez printable tax forms Some tax-free educational assistance received after 2013 may be treated as a refund. 1040ez printable tax forms See Tax-free educational assistance , earlier. 1040ez printable tax forms Refunds received in 2013. 1040ez printable tax forms   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. 1040ez printable tax forms Refunds received after 2013 but before your income tax return is filed. 1040ez printable tax forms   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. 1040ez printable tax forms Refunds received after 2013 and after your income tax return is filed. 1040ez printable tax forms   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. 1040ez printable tax forms See Credit recapture, next. 1040ez printable tax forms Credit recapture. 1040ez printable tax forms    If any tax-free educational assistance for the qualified education expenses paid in 2013 or any refund of your qualified education expenses paid in 2013 is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. 1040ez printable tax forms You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing the expenses by the amount of the refund or tax-free educational assistance. 1040ez printable tax forms You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you had claimed the refigured credit(s). 1040ez printable tax forms Include that amount as an additional tax for the year the refund or tax-free assistance was received. 1040ez printable tax forms Example. 1040ez printable tax forms   You pay $9,300 in tuition and fees in December 2013, and your child began college in January 2014. 1040ez printable tax forms You filed your 2013 tax return on February 14, 2014, and claimed a lifetime learning credit of $1,860. 1040ez printable tax forms You claimed no other tax credits. 1040ez printable tax forms After you filed your return, your child withdrew from two courses and you received a refund of $2,900. 1040ez printable tax forms You must refigure your 2013 lifetime learning credit using $6,400 of qualified education expenses instead of $9,300. 1040ez printable tax forms The refigured credit is $1,280 and your tax liability increased by $580. 1040ez printable tax forms See instructions for your 2014 income tax return to determine where to include this tax. 1040ez printable tax forms If you pay qualified education expenses in 2014 for an academic period that begins in the first 3 months of 2014 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2014 instead of reducing your expenses for 2013. 1040ez printable tax forms Amounts that do not reduce qualified education expenses. 1040ez printable tax forms   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. 1040ez printable tax forms   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. 1040ez printable tax forms The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses, as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 1040ez printable tax forms The use of the money is not restricted. 1040ez printable tax forms For examples, see Adjustments to Qualified Education Expenses in chapter 2, American Opportunity Credit. 1040ez printable tax forms Coordination with Pell grants and other scholarships. 1040ez printable tax forms   In some cases, you may be able to reduce your tax liability by including scholarships in income. 1040ez printable tax forms If you are claiming an education credit for a claimed dependent who received a scholarship, you may be able to reduce your tax liability if the student includes the scholarship in income. 1040ez printable tax forms The scholarship must be one that may (by its terms) be applied to expenses (such as room and board) other than qualified education expenses. 1040ez printable tax forms Example 1—No scholarship. 1040ez printable tax forms Judy Green, who is unmarried, is taking courses at a public community college to be recertified to teach in public schools. 1040ez printable tax forms Her AGI and her MAGI, for purposes of the credit, are $27,000. 1040ez printable tax forms Judy takes the standard deduction of $5,950 and personal exemption of $3,800, reducing her AGI to taxable income of $17,250 and her tax before credits is $2,156. 1040ez printable tax forms She claims no credits other than the lifetime learning credit. 1040ez printable tax forms In July 2013 she paid $700 for the summer 2013 semester; in August 2013 she paid $1,900 for the fall 2013 semester; and in December 2013 she paid another $1,900 for the spring semester beginning in January 2014. 1040ez printable tax forms Judy and the college meet all requirements for the lifetime learning tax credit. 1040ez printable tax forms She can use all of the $4,500 tuition she paid in 2013 when figuring her 2013 lifetime learning credit. 1040ez printable tax forms She claims a $900 lifetime learning credit and her tax after credits is $1,256. 1040ez printable tax forms Example 2—Scholarship excluded from income. 1040ez printable tax forms The facts are the same as in Example 1—No scholarship, except that Judy was awarded a $1,500 scholarship. 1040ez printable tax forms Under the terms of her scholarship, it may be used to pay any educational expenses, including room and board. 1040ez printable tax forms If Judy excludes the scholarship from income, she will be deemed (for purposes of computing her education credit) as having used the scholarship to pay for tuition, required fees, and course materials. 1040ez printable tax forms Only $3,000 of the $4,500 tuition she paid in 2013 could be used when figuring her 2013 lifetime learning credit. 1040ez printable tax forms Her lifetime learning credit would be reduced to $600 and her tax after credits would be $1,556. 1040ez printable tax forms Example 3—Scholarship included in income. 1040ez printable tax forms The facts are the same as in Example 2—Scholarship excluded from income. 1040ez printable tax forms If, unlike Example 2, Judy includes the $1,500 scholarship in income, she will be deemed to have used the entire scholarship to pay for room and board. 1040ez printable tax forms Judy's AGI will increase to $28,500, her taxable income would be $18,750, and her tax before credits would be $2,381. 1040ez printable tax forms She would be able to use the $4,500 of adjusted qualified education expenses to figure her credit. 1040ez printable tax forms Judy could claim a $900 lifetime learning credit and her tax after credits would be $1,481. 1040ez printable tax forms 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. 1040ez printable tax forms This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. 1040ez printable tax forms Sports, games, hobbies, and noncredit courses. 1040ez printable tax forms   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. 1040ez printable tax forms However, if the course of instruction or other education is part of the student's degree program or is taken by the student to acquire or improve job skills, these expenses can qualify. 1040ez printable tax forms Comprehensive or bundled fees. 1040ez printable tax forms   Some eligible educational institutions combine all of their fees for an academic period into one amount. 1040ez printable tax forms 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. 1040ez printable tax forms 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. 1040ez printable tax forms See Figuring the Credit , later, for more information about Form 1098-T. 1040ez printable tax forms Who Is an Eligible Student For purposes of the lifetime learning credit, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). 1040ez printable tax forms Who Can Claim a Dependent's Expenses If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both of you, can claim a lifetime learning credit for your dependent's expenses for that year. 1040ez printable tax forms For you to claim a lifetime learning credit for your dependent's expenses, you must also claim an exemption for your dependent. 1040ez printable tax forms You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. 1040ez printable tax forms IF you. 1040ez printable tax forms . 1040ez printable tax forms . 1040ez printable tax forms THEN only. 1040ez printable tax forms . 1040ez printable tax forms . 1040ez printable tax forms claim an exemption on your tax return for a dependent who is an eligible student you can claim the lifetime learning credit based on that dependent's expenses. 1040ez printable tax forms The dependent cannot claim the credit. 1040ez printable tax forms do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled to the exemption) the dependent can claim the lifetime learning credit. 1040ez printable tax forms You cannot claim the credit based on this dependent's expenses. 1040ez printable tax forms Expenses paid by dependent. 1040ez printable tax forms   If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. 1040ez printable tax forms Include these expenses when figuring the amount of your lifetime learning credit. 1040ez printable tax forms    Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent. 1040ez printable tax forms Expenses paid by you. 1040ez printable tax forms   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the lifetime learning credit. 1040ez printable tax forms If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the lifetime learning credit. 1040ez printable tax forms Expenses paid by others. 1040ez printable tax forms   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. 1040ez printable tax forms In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. 1040ez printable tax forms If you claim an exemption on your tax return for the student, you are considered to have paid the expenses. 1040ez printable tax forms Example. 1040ez printable tax forms In 2013, Ms. 1040ez printable tax forms Allen makes a payment directly to an eligible educational institution for her grandson Todd's qualified education expenses. 1040ez printable tax forms For purposes of claiming a lifetime learning credit, Todd is treated as receiving the money from his grandmother and, in turn, paying his qualified education expenses himself. 1040ez printable tax forms Unless an exemption for Todd is claimed on someone else's 2013 tax return, only Todd can use the payment to claim a lifetime learning credit. 1040ez printable tax forms If anyone, such as Todd's parents, claims an exemption for Todd on his or her 2013 tax return, whoever claims the exemption may be able to use the expenses to claim a lifetime learning credit. 1040ez printable tax forms If anyone else claims an exemption for Todd, Todd cannot claim a lifetime learning credit. 1040ez printable tax forms Tuition reduction. 1040ez printable tax forms   When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. 1040ez printable tax forms If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. 1040ez printable tax forms For more information on tuition reductions, see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. 1040ez printable tax forms Figuring the Credit The amount of the lifetime learning credit is 20% of the first $10,000 of qualified education expenses you paid for all eligible students. 1040ez printable tax forms The maximum amount of lifetime learning credit you can claim for 2013 is $2,000 (20% × $10,000). 1040ez printable tax forms However, that amount may be reduced based on your MAGI. 1040ez printable tax forms See Effect of the Amount of Your Income on the Amount of Your Credit , later. 1040ez printable tax forms Example. 1040ez printable tax forms Bruce and Toni Harper are married and file a joint tax return. 1040ez printable tax forms For 2013, their MAGI is $75,000. 1040ez printable tax forms Toni is attending a local college (an eligible educational institution) to earn credits toward a degree in nursing. 1040ez printable tax forms She already has a bachelor's degree in history and wants to become a nurse. 1040ez printable tax forms In August 2013, Toni paid $5,000 of qualified education expenses for her fall 2013 semester. 1040ez printable tax forms Bruce and Toni can claim a $1,000 (20% × $5,000) lifetime learning credit on their 2013 joint tax return. 1040ez printable tax forms Form 1098-T. 1040ez printable tax forms   To help you figure your lifetime learning credit, the student should receive Form 1098-T. 1040ez printable tax forms 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. 1040ez printable tax forms An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. 1040ez printable tax forms However, the amounts in boxes 1 and 2 of Form 1098-T might be different from what you paid. 1040ez printable tax forms When figuring the credit, use only the amounts you paid or are deemed to have paid in 2013 for qualified education expenses. 1040ez printable tax forms   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. 1040ez printable tax forms    The eligible educational institution may ask for a completed Form W-9S, or similar statement to obtain the student's name, address, and taxpayer identification number. 1040ez printable tax forms Effect of the Amount of Your Income on the Amount of Your Credit The amount of your lifetime learning credit is phased out (gradually reduced) if your MAGI is between $53,000 and $63,000 ($107,000 and $127,000 if you file a joint return). 1040ez printable tax forms You cannot claim a lifetime learning credit if your MAGI is $63,000 or more ($127,000 or more if you file a joint return). 1040ez printable tax forms Modified adjusted gross income (MAGI). 1040ez printable tax forms   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. 1040ez printable tax forms MAGI when using Form 1040A. 1040ez printable tax forms   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. 1040ez printable tax forms MAGI when using Form 1040. 1040ez printable tax forms   If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. 1040ez printable tax forms You can use Worksheet 3-1 to figure your MAGI. 1040ez printable tax forms Worksheet 3-1. 1040ez printable tax forms MAGI for the Lifetime Learning Credit 1. 1040ez printable tax forms Enter your adjusted gross income  (Form 1040, line 38)   1. 1040ez printable tax forms   2. 1040ez printable tax forms Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. 1040ez printable tax forms       3. 1040ez printable tax forms Enter your foreign housing deduction (Form 2555, line 50)   3. 1040ez printable tax forms       4. 1040ez printable tax forms Enter the amount of income from Puerto Rico you are excluding   4. 1040ez printable tax forms       5. 1040ez printable tax forms Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. 1040ez printable tax forms       6. 1040ez printable tax forms Add the amounts on lines 2, 3, 4, and 5   6. 1040ez printable tax forms   7. 1040ez printable tax forms Add the amounts on lines 1 and 6. 1040ez printable tax forms  This is your modified adjusted  gross income. 1040ez printable tax forms Enter this amount  on Form 8863, line 14   7. 1040ez printable tax forms   Phaseout. 1040ez printable tax forms   If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit using lines 10-18 of Form 8863. 1040ez printable tax forms The same method is shown in the following example. 1040ez printable tax forms Example. 1040ez printable tax forms You are filing a joint return with a MAGI of $112,000. 1040ez printable tax forms In 2013, you paid $6,600 of qualified education expenses. 1040ez printable tax forms You figure the tentative lifetime learning credit (20% of the first $10,000 of qualified education expenses you paid for all eligible students). 1040ez printable tax forms The result is a $1,320 (20% x $6,600) tentative credit. 1040ez printable tax forms Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($1,320) by a fraction. 1040ez printable tax forms The numerator of the fraction is $127,000 (the upper limit for those filing a joint return) minus your MAGI. 1040ez printable tax forms The denominator is $20,000, the range of incomes for the phaseout ($107,000 to $127,000). 1040ez printable tax forms The result is the amount of your phased out (reduced) lifetime learning credit ($990). 1040ez printable tax forms   $1,320 × $127,000 − $112,000  $20,000 = $990   Claiming the Credit You claim the lifetime learning credit by completing Form 8863 and submitting it with your Form 1040 or 1040A. 1040ez printable tax forms Enter the credit on Form 1040, line 49, or Form 1040A, line 31. 1040ez printable tax forms Note. 1040ez printable tax forms In Appendix A, Illustrated Example of Education Credits at the end of this publication, there is an example illustrating the use of Form 8863 when both the American opportunity credit and the lifetime learning credit are claimed on the same tax return. 1040ez printable tax forms Prev  Up  Next   Home   More Online Publications