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Federal Tax Amendment

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Federal Tax Amendment

Federal tax amendment 16. Federal tax amendment   Rulings Program The IRS has a program for assisting taxpayers who have technical problems with tax laws and regulations. Federal tax amendment The IRS will answer inquiries from individuals and organizations about the tax effect of their acts or transactions. Federal tax amendment The National Office of the IRS issues rulings on those matters. Federal tax amendment A ruling is a written statement to a taxpayer that interprets and applies tax laws to the taxpayer's specific set of facts. Federal tax amendment There are also determination letters issued by IRS directors and information letters issued by IRS directors or the National Office. Federal tax amendment There is a fee for most types of determination letters and rulings. Federal tax amendment For complete information on the rulings program, see the first Internal Revenue Bulletin published each year. Federal tax amendment Prev  Up  Next   Home   More Online Publications
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The Federal Tax Amendment

Federal tax amendment 6. Federal tax amendment   Tuition and Fees Deduction Table of Contents IntroductionWhat is the tax benefit of the tuition and fees deduction. Federal tax amendment Can You Claim the DeductionWho Can Claim the Deduction Who Cannot Claim the Deduction 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 DeductionEffect of the Amount of Your Income on the Amount of Your Deduction Claiming the Deduction Illustrated Example Introduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). Federal tax amendment You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. Federal tax amendment The qualified expenses must be for higher education, as explained later under Qualified Education Expenses . Federal tax amendment What is the tax benefit of the tuition and fees deduction. Federal tax amendment   The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Federal tax amendment   This deduction is taken as an adjustment to income. Federal tax amendment This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). Federal tax amendment This deduction may be beneficial to you if you do not qualify for the American opportunity or lifetime learning credits. Federal tax amendment You can choose the education benefit that will give you the lowest tax. Federal tax amendment You may want to compare the tuition and fees deduction to the education credits. Federal tax amendment See chapter 2, American Opportunity Credit and chapter 3, Lifetime Learning Credit for more information on the education credits. Federal tax amendment Table 6-1. Federal tax amendment Tuition and Fees Deduction at a Glance summarizes the features of the tuition and fees deduction. Federal tax amendment Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Federal tax amendment Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Federal tax amendment You pay qualified education expenses of higher education. Federal tax amendment You pay the education expenses for an eligible student. Federal tax amendment The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return. Federal tax amendment The term “qualified education expenses” is defined later under Qualified Education Expenses . Federal tax amendment “Eligible student” is defined later under Who Is an Eligible Student . Federal tax amendment For more information on claiming the deduction for a dependent, see Who Can Claim a Dependent's Expenses , later. Federal tax amendment Table 6-1. Federal tax amendment Tuition and Fees Deduction at a Glance Do not rely on this table alone. Federal tax amendment Refer to the text for complete details. Federal tax amendment Question Answer What is the maximum benefit? You can reduce your income subject to tax by up to $4,000. Federal tax amendment What is the limit on modified adjusted gross income (MAGI)? $160,000 if married filing a joint return; $80,000 if single, head of household, or qualifying widow(er). Federal tax amendment Where is the deduction taken? As an adjustment to income on  Form 1040 or Form 1040A. Federal tax amendment For whom must the expenses be paid? A student enrolled in an eligible educational institution who is either: •you,  •your spouse, or  •your dependent for whom you claim an exemption. Federal tax amendment What tuition and fees are deductible? Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. Federal tax amendment Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Federal tax amendment Your filing status is married filing separately. Federal tax amendment Another person can claim an exemption for you as a dependent on his or her tax return. Federal tax amendment You cannot take the deduction even if the other person does not actually claim that exemption. Federal tax amendment Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Federal tax amendment 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. Federal tax amendment More information on nonresident aliens can be found in Publication 519. Federal tax amendment What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Federal tax amendment Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period beginning in 2013 or in the first 3 months of 2014. Federal tax amendment 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 deduction. Federal tax amendment Academic period. Federal tax amendment   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. Federal tax amendment 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. Federal tax amendment Paid with borrowed funds. Federal tax amendment   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Federal tax amendment Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Federal tax amendment Treat loan disbursements sent directly to the educational institution as paid on the date the institution credits the student's account. Federal tax amendment Student withdraws from class(es). Federal tax amendment   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Federal tax amendment Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Federal tax amendment Eligible educational institution. Federal tax amendment   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. Federal tax amendment S. Federal tax amendment Department of Education. Federal tax amendment It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Federal tax amendment The educational institution should be able to tell you if it is an eligible educational institution. Federal tax amendment   Certain educational institutions located outside the United States also participate in the U. Federal tax amendment S. Federal tax amendment Department of Education's Federal Student Aid (FSA) programs. Federal tax amendment Related expenses. Federal tax amendment   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 as a condition of enrollment or attendance. Federal tax amendment Prepaid expenses. Federal tax amendment   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. Federal tax amendment See Academic period , earlier. Federal tax amendment 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). Federal tax amendment 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). Federal tax amendment In the following examples, assume that each student is an eligible student and each college or university an eligible educational institution. Federal tax amendment Example 1. Federal tax amendment Jackson is a sophomore in University V's degree program in dentistry. Federal tax amendment 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. Federal tax amendment Because the equipment rental fee must be paid to University V for enrollment and attendance, Jackson's equipment rental fee is a qualified education expense. Federal tax amendment Example 2. Federal tax amendment 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. Federal tax amendment 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. Federal tax amendment Charles bought his books from a friend, so what he paid for them is not a qualified education expense. Federal tax amendment Donna bought hers at College W's bookstore. Federal tax amendment Although Donna paid College W directly for her first-year books and materials, her payment is not a qualified education expense because the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. Federal tax amendment Example 3. Federal tax amendment When Marci enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Federal tax amendment 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 the student government. Federal tax amendment No portion of the fee covers personal expenses. Federal tax amendment Although labeled as a student activity fee, the fee is required for Marci's enrollment and attendance at College X. Federal tax amendment Therefore, it is a qualified expense. Federal tax amendment No Double Benefit Allowed You cannot do any of the following. Federal tax amendment Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Federal tax amendment Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. Federal tax amendment Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Federal tax amendment For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Federal tax amendment See Coordination With Tuition and Fees Deduction in chapter 8, Qualified Tuition Program, later. Federal tax amendment Deduct qualified education expenses that have been paid with tax-free interest on U. Federal tax amendment S. Federal tax amendment savings bonds (Form 8815). Federal tax amendment See Figuring the Tax-Free Amount in chapter 10, Education Savings Bond Program, later. Federal tax amendment Deduct qualified education expenses that have been paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Federal tax amendment See the following section on Adjustments to Qualified Education Expenses. Federal tax amendment 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. Federal tax amendment The result is the amount of adjusted qualified education expenses for each student. Federal tax amendment You must also reduce qualified education expenses by the other amounts referred to in No Double Benefit Allowed , earlier. Federal tax amendment Tax-free educational assistance. Federal tax amendment   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. Federal tax amendment See Academic period , earlier. Federal tax amendment   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Federal tax amendment 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). Federal tax amendment   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. Federal tax amendment 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. Federal tax amendment   This tax-free education 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. Federal tax amendment Generally, any scholarship or fellowship is treated as tax free. Federal tax amendment 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. Federal tax amendment 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. Federal tax amendment 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. Federal tax amendment 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. Federal tax amendment For details, see Adjustments to Qualified Education Expenses in chapters 2 and 3. Federal tax amendment Refunds. Federal tax amendment   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. Federal tax amendment Some tax-free educational assistance received after 2013 may be treated as a refund. Federal tax amendment See Tax-free educational assistance , earlier. Federal tax amendment Refunds received in 2013. Federal tax amendment   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. Federal tax amendment Refunds received after 2013 but before your income tax return is filed. Federal tax amendment   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. Federal tax amendment Refunds received after 2013 and after your income tax return is filed. Federal tax amendment   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. Federal tax amendment See Credit recapture , later. Federal tax amendment Coordination with Coverdell education savings accounts and qualified tuition programs. Federal tax amendment   Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). Federal tax amendment For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Federal tax amendment Credit recapture. Federal tax amendment    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. Federal tax amendment You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing that amount by the amount of the refund or tax-free educational assistance. Federal tax amendment 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). Federal tax amendment Include that amount as an additional tax for the year the refund or tax-free assistance was received. Federal tax amendment Example. Federal tax amendment   You paid $3,500 of qualified education expenses in December 2013, and your child began college in January 2014. Federal tax amendment You claimed $3,500 as the tuition and fees deduction on your 2013 income tax return. Federal tax amendment The reduction reduced your taxable income by $3,500. Federal tax amendment Also, you claimed no tax credits in 2013. Federal tax amendment Your child withdrew from two classes and you received a refund of $2,000 in 2014 after you filed your 2013 tax return. Federal tax amendment Refigure your 2013 tuition and fees deduction using $1,500 of qualified education expense instead of the $3,500. Federal tax amendment The refigured tuition and fees deduction is $1,500. Federal tax amendment Do not file an amended 2013 tax return to account for this adjustment. Federal tax amendment Instead, include the difference of $2,000 (but only to the extent this difference would have increased your 2013 tax) on the “Other income” line of your 2014 Form 1040. Federal tax amendment You cannot file Form 1040A for 2014. Federal tax amendment Amounts that do not reduce qualified education expenses. Federal tax amendment   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. Federal tax amendment   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. Federal tax amendment 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 Restrictions. Federal tax amendment The use of the money is not restricted. Federal tax amendment Example 1. Federal tax amendment In 2013, Jackie paid $3,000 for tuition and $5,000 for room and board at University X. Federal tax amendment The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. Federal tax amendment To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. Federal tax amendment The terms of the scholarship state that it can be used to pay any of Jackie's college expenses. Federal tax amendment University X applies the $2,000 scholarship against Jackie's $8,000 total bill, and Jackie pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. Federal tax amendment Jackie does not report any portion of the scholarship as income on her tax return. Federal tax amendment In figuring the tuition and fees deduction, Jackie must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. Federal tax amendment The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. Federal tax amendment Jackie is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship) in 2013. Federal tax amendment Example 2. Federal tax amendment The facts are the same as in Example 1, except that Jackie reports her entire scholarship as income on her tax return. Federal tax amendment Because Jackie reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. Federal tax amendment Jackie is treated as having paid $3,000 in qualified education expenses. Federal tax amendment 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. Federal tax amendment This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Federal tax amendment Sports, games, hobbies, and noncredit courses. Federal tax amendment   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. Federal tax amendment However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Federal tax amendment Comprehensive or bundled fees. Federal tax amendment   Some eligible educational institutions combine all of their fees for an academic period into one amount. Federal tax amendment 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. Federal tax amendment 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. Federal tax amendment See Figuring the Deduction , later, for more information about Form 1098-T. Federal tax amendment Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (as defined under Qualified Education Expenses , earlier). Federal tax amendment Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. Federal tax amendment For you to be able to deduct qualified education expenses for your dependent, you must claim an exemption for that individual. Federal tax amendment You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Federal tax amendment IF your dependent is an eligible student and you. Federal tax amendment . Federal tax amendment . Federal tax amendment AND. Federal tax amendment . Federal tax amendment . Federal tax amendment THEN. Federal tax amendment . Federal tax amendment . Federal tax amendment claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. Federal tax amendment Your dependent cannot take a deduction. Federal tax amendment claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Federal tax amendment do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Federal tax amendment do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Federal tax amendment Expenses paid by dependent. Federal tax amendment   If your dependent pays qualified education expenses, no one can take a tuition and fees deduction for those expenses. Federal tax amendment Neither you nor your dependent can deduct the expenses. Federal tax amendment For purposes of the tuition and fees deduction, you are not treated as paying any expenses actually paid by a dependent for whom you or anyone other than the dependent can claim an exemption. Federal tax amendment This rule applies even if you do not claim an exemption for your dependent on your tax return. Federal tax amendment Expenses paid by you. Federal tax amendment   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring your tuition and fees deduction. Federal tax amendment Expenses paid under divorce decree. Federal tax amendment   Qualified education expenses paid directly to an eligible educational institution for a student under a court-approved divorce decree are treated as paid by the student. Federal tax amendment Only the student would be eligible to take a tuition and fees deduction for that payment, and then only if no one else could claim an exemption for the student. Federal tax amendment Expenses paid by others. Federal tax amendment   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. Federal tax amendment In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Federal tax amendment If you claim, or can claim, an exemption on your tax return for the student, you are not considered to have paid the expenses and you cannot deduct them. Federal tax amendment If the student is not a dependent, only the student can deduct payments made directly to the institution for his or her expenses. Federal tax amendment If the student is your dependent, no one can deduct the payments. Federal tax amendment Example. Federal tax amendment In 2013, Ms. Federal tax amendment Baker makes a payment directly to an eligible educational institution for her grandson Dan's qualified education expenses. Federal tax amendment For purposes of deducting tuition and fees, Dan is treated as receiving the money from his grandmother and, in turn, paying his own qualified education expenses. Federal tax amendment If an exemption cannot be claimed for Dan on anyone else's tax return, only Dan can claim a tuition and fees deduction for his grandmother's payment. Federal tax amendment If someone else can claim an exemption for Dan, no one will be allowed a deduction for Ms. Federal tax amendment Baker's payment. Federal tax amendment Tuition reduction. Federal tax amendment   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. Federal tax amendment 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. Federal tax amendment For more information on tuition reductions, see Qualified Tuition Reduction , in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Federal tax amendment Figuring the Deduction The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. Federal tax amendment See Effect of the Amount of Your Income on the Amount of Your Deduction , later. Federal tax amendment Form 1098-T. Federal tax amendment   To help you figure your tuition and fees deduction, the student should receive Form 1098-T (see Appendix A for a completed example of Form 1098-T). Federal tax amendment 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. Federal tax amendment An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Federal tax amendment However, the amount in boxes 1 and 2 of Form 1098-T might be different than what you paid. Federal tax amendment When figuring the deduction, use only the amounts you paid in 2013 for qualified education expenses. Federal tax amendment   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. Federal tax amendment    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. Federal tax amendment Effect of the Amount of Your Income on the Amount of Your Deduction If your MAGI is not more than $65,000 ($130,000 if you are married filing jointly), your maximum tuition and fees deduction is $4,000. Federal tax amendment If your MAGI is larger than $65,000 ($130,000 if you are married filing jointly), but is not more than $80,000 ($160,000 if you are married filing jointly), your maximum deduction is $2,000. Federal tax amendment No tuition and fees deduction is allowed if your MAGI is larger than $80,000 ($160,000 if you are married filing jointly). Federal tax amendment Modified adjusted gross income (MAGI). Federal tax amendment   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for tuition and fees. Federal tax amendment However, as discussed below, there may be other modifications. Federal tax amendment MAGI when using Form 1040A. Federal tax amendment   If you file Form 1040A, your MAGI is the AGI on line 22 of that form, figured without taking into account any amount on line 19 (tuition and fees deduction). Federal tax amendment MAGI when using Form 1040. Federal tax amendment   If you file Form 1040, your MAGI is the AGI on line 38 of that form, figured without taking into account any amount on line 34 (tuition and fees deduction) or line 35 (domestic production activities deduction), and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Federal tax amendment   Table 6-2 shows how the amount of your MAGI can affect your tuition and fees deduction. Federal tax amendment   You can use Worksheet 6-1. Federal tax amendment MAGI for the Tuition and Fees Deduction , later, to figure your MAGI. Federal tax amendment Table 6-2. Federal tax amendment Effect of MAGI on Maximum Tuition and Fees Deduction IF your filing status is. Federal tax amendment . Federal tax amendment . Federal tax amendment AND your MAGI is. Federal tax amendment . Federal tax amendment . Federal tax amendment THEN your maximum tuition and fees deduction is. Federal tax amendment . Federal tax amendment . Federal tax amendment single,  head of household, or qualifying widow(er) not more than $65,000 $4,000. Federal tax amendment more than $65,000  but not more than $80,000 $2,000. Federal tax amendment more than $80,000 $0. Federal tax amendment married filing joint return not more than $130,000 $4,000. Federal tax amendment more than $130,000 but not more than $160,000 $2,000. Federal tax amendment more than $160,000 $0. Federal tax amendment Claiming the Deduction You claim a tuition and fees deduction by completing Form 8917 and submitting it with your Form 1040 or Form 1040A. Federal tax amendment Enter the deduction on Form 1040, line 34, or Form 1040A, line 19. Federal tax amendment A filled-in Form 8917 is shown at the end of this chapter. Federal tax amendment Illustrated Example Tim Pfister, a single taxpayer, enrolled full-time at a local college to earn a degree in engineering. Federal tax amendment This is the first year of his postsecondary education. Federal tax amendment During 2013, he paid $3,600 for his qualified 2013 tuition expense. Federal tax amendment Both he and the college meet all of the requirements for the tuition and fees deduction. Federal tax amendment Tim's total income (Form 1040, line 22) and MAGI are $26,000. Federal tax amendment He figures his deduction of $3,600 as shown on Form 8917, later. Federal tax amendment Worksheet 6-1. Federal tax amendment MAGI for the Tuition and Fees Deduction Use this worksheet if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico. Federal tax amendment Before using this worksheet, you must complete Form 1040, lines 7 through 33, and figure any amount to be entered on the dotted line next to line 36. Federal tax amendment 1. Federal tax amendment Enter the amount from Form 1040, line 22   1. Federal tax amendment         2. Federal tax amendment Enter the total from Form 1040, lines 23 through 33   2. Federal tax amendment               3. Federal tax amendment Enter the total of any amounts entered on the dotted line next to Form 1040, line 36   3. Federal tax amendment               4. Federal tax amendment Add lines 2 and 3   4. Federal tax amendment         5. Federal tax amendment Subtract line 4 from line 1   5. Federal tax amendment         6. Federal tax amendment Enter your foreign earned income exclusion and/or housing  exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   6. Federal tax amendment         7. Federal tax amendment Enter your foreign housing deduction (Form 2555, line 50)   7. Federal tax amendment         8. Federal tax amendment Enter the amount of income from Puerto Rico you are excluding   8. Federal tax amendment         9. Federal tax amendment Enter the amount of income from American Samoa you are  excluding (Form 4563, line 15)   9. Federal tax amendment         10. Federal tax amendment Add lines 5 through 9. Federal tax amendment This is your modified adjusted gross income   10. Federal tax amendment     Note. Federal tax amendment If the amount on line 10 is more than $80,000 ($160,000 if married filing jointly),  you cannot take the deduction for tuition and fees. Federal tax amendment       This image is too large to be displayed in the current screen. Federal tax amendment Please click the link to view the image. Federal tax amendment Form 8917 for Tim Pfister Prev  Up  Next   Home   More Online Publications