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Free 2007 tax software download 3. Free 2007 tax software download   Farm Income Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Schedule F (Form 1040) Sales of Farm ProductsSchedule F. Free 2007 tax software download Form 4797. Free 2007 tax software download Sales Caused by Weather-Related Conditions Rents (Including Crop Shares)Crop Shares Agricultural Program PaymentsCommodity Credit Corporation (CCC) Loans Conservation Reserve Program (CRP) Crop Insurance and Crop Disaster Payments Feed Assistance and Payments Cost-Sharing Exclusion (Improvements) Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Tobacco Quota Buyout Program Payments Other Payments Payment to More Than One Person Income From CooperativesPatronage Dividends Per-Unit Retain Certificates Cancellation of DebtGeneral Rule Exceptions Exclusions Income From Other SourcesSod. Free 2007 tax software download Granting the right to remove deposits. Free 2007 tax software download Income Averaging for FarmersElected Farm Income (EFI) How To Figure the Tax Effect on Other Tax Determinations Tax for Certain Children Who Have Unearned Income Alternative Minimum Tax (AMT) Schedule J Introduction You may receive income from many sources. Free 2007 tax software download You must report the income from all the different sources on your tax return, unless it is excluded by law. Free 2007 tax software download Where you report the income on your tax return depends on its source. Free 2007 tax software download This chapter discusses farm income you report on Schedule F (Form 1040), Profit or Loss From Farming. Free 2007 tax software download For information on where to report other income, see the Instructions for Form 1040, U. Free 2007 tax software download S. Free 2007 tax software download Individual Income Tax Return. Free 2007 tax software download Accounting method. Free 2007 tax software download   The rules discussed in this chapter assume you use the cash method of accounting. Free 2007 tax software download Under the cash method, you generally include an item of income in gross income in the year you receive it. Free 2007 tax software download See Cash Method in chapter 2. Free 2007 tax software download   If you use an accrual method of accounting, different rules may apply to your situation. Free 2007 tax software download See Accrual Method in chapter 2. Free 2007 tax software download Topics - This chapter discusses: Schedule F Sales of farm products Rents (including crop shares) Agricultural program payments Income from cooperatives Cancellation of debt Income from other sources Income averaging for farmers Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 550 Investment Income and Expenses 908 Bankruptcy Tax Guide 925 Passive Activity and At-Risk Rules 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Form (and Instructions) 982 Reduction of Tax Attributes Due to Discharge of Indebtedness Sch E (Form 1040) Supplemental Income and Loss Sch J (Form 1040) Income Averaging for Farmers and Fishermen 1099-G Certain Government Payments 1099-PATR Taxable Distributions Received From Cooperatives 4797 Sales of Business Property 4835 Farm Rental Income and Expenses See chapter 16 for information about getting publications and forms. Free 2007 tax software download Schedule F (Form 1040) Individuals, trusts, and partnerships report farm income on Schedule F (Form 1040), Profit or Loss From Farming. Free 2007 tax software download Use this schedule to figure the net profit or loss from regular farming operations. Free 2007 tax software download Income from farming reported on Schedule F includes amounts you receive from cultivating, operating, or managing a farm for gain or profit, either as owner or tenant. Free 2007 tax software download This includes income from operating a stock, dairy, poultry, fish, fruit, or truck farm and income from operating a plantation, ranch, range, or orchard. Free 2007 tax software download It also includes income from the sale of crop shares if you materially participate in producing the crop. Free 2007 tax software download See Rents (Including Crop Shares) , later. Free 2007 tax software download Income received from operating a nursery, which specializes in growing ornamental plants, is considered to be income from farming. Free 2007 tax software download Income reported on Schedule F does not include gains or losses from sales or other dispositions of the following farm assets. Free 2007 tax software download Land. Free 2007 tax software download Depreciable farm equipment. Free 2007 tax software download Buildings and structures. Free 2007 tax software download Livestock held for draft, breeding, sport, or dairy purposes. Free 2007 tax software download Gains and losses from most dispositions of farm assets are discussed in chapters 8 and 9. Free 2007 tax software download Gains and losses from casualties, thefts, and condemnations are discussed in chapter 11. Free 2007 tax software download Sales of Farm Products Where to report. Free 2007 tax software download    Table 3-1 shows where to report the sale of farm products on your tax return. Free 2007 tax software download Schedule F. Free 2007 tax software download   Amounts received from the sales of products you raised on your farm for sale (or bought for resale), such as livestock, produce, or grains, are reported on Schedule F. Free 2007 tax software download This includes money and the fair market value of any property or services you receive. Free 2007 tax software download When you sell farm products bought for resale, your profit or loss is the difference between your selling price (money plus the fair market value of any property) and your basis in the item (usually the cost). Free 2007 tax software download See chapter 6 for information on the basis of assets. Free 2007 tax software download You generally report these amounts on Schedule F for the year you receive payment. Free 2007 tax software download Example. Free 2007 tax software download In 2012, you bought 20 feeder calves for $11,000 for resale. Free 2007 tax software download You sold them in 2013 for $21,000. Free 2007 tax software download You report the $21,000 sales price on Schedule F, line 1b, subtract your $11,000 basis on line 1d, and report the resulting $10,000 profit on line 1e. Free 2007 tax software download Form 4797. Free 2007 tax software download   Sales of livestock held for draft, breeding, sport, or dairy purposes may result in ordinary or capital gains or losses, depending on the circumstances. Free 2007 tax software download In either case, you should always report these sales on Form 4797 instead of Schedule F. Free 2007 tax software download See Livestock under Ordinary or Capital Gain or Loss in chapter 8. Free 2007 tax software download Animals you do not hold primarily for sale are considered business assets of your farm. Free 2007 tax software download Table 3-1. Free 2007 tax software download Where To Report Sales of Farm Products Item Sold Schedule F Form 4797 Farm products raised for sale X   Farm products bought for resale X   Farm assets not held primarily for sale, such as livestock held for draft, breeding, sport, or dairy purposes (bought or raised)   X Sale by agent. Free 2007 tax software download   If your agent sells your farm products, you have constructive receipt of the income when your agent receives payment and you must include the net proceeds from the sale in gross income for the year the agent receives payment. Free 2007 tax software download This applies even if your agent pays you in a later year. Free 2007 tax software download For a discussion on constructive receipt of income, see Cash Method under Accounting Methods in chapter 2. Free 2007 tax software download Sales Caused by Weather-Related Conditions If you sell or exchange more livestock, including poultry, than you normally would in a year because of a drought, flood, or other weather-related condition, you may be able to postpone reporting the gain from the additional animals until the next year. Free 2007 tax software download You must meet all the following conditions to qualify. Free 2007 tax software download Your principal trade or business is farming. Free 2007 tax software download You use the cash method of accounting. Free 2007 tax software download You can show that, under your usual business practices, you would not have sold or exchanged the additional animals this year except for the weather-related condition. Free 2007 tax software download The weather-related condition caused an area to be designated as eligible for assistance by the federal government. Free 2007 tax software download Sales or exchanges made before an area became eligible for federal assistance qualify if the weather-related condition that caused the sale or exchange also caused the area to be designated as eligible for federal assistance. Free 2007 tax software download The designation can be made by the President, the Department of Agriculture (or any of its agencies), or by other federal departments or agencies. Free 2007 tax software download A weather-related sale or exchange of livestock (other than poultry) held for draft, breeding, or dairy purposes may be an involuntary conversion. Free 2007 tax software download See Other Involuntary Conversions in chapter 11. Free 2007 tax software download Usual business practice. Free 2007 tax software download   You must determine the number of animals you would have sold had you followed your usual business practice in the absence of the weather-related condition. Free 2007 tax software download Do this by considering all the facts and circumstances, but do not take into account your sales in any earlier year for which you postponed the gain. Free 2007 tax software download If you have not yet established a usual business practice, rely on the usual business practices of similarly situated farmers in your general region. Free 2007 tax software download Connection with affected area. Free 2007 tax software download   The livestock does not have to be raised or sold in an area affected by a weather-related condition for the postponement to apply. Free 2007 tax software download However, the sale must occur solely because of a weather-related condition that affected the water, grazing, or other requirements of the livestock. Free 2007 tax software download This requirement generally will not be met if the costs of feed, water, or other requirements of the livestock affected by the weather-related condition are not substantial in relation to the total costs of holding the livestock. Free 2007 tax software download Classes of livestock. Free 2007 tax software download   You must figure the amount to be postponed separately for each generic class of animals—for example, hogs, sheep, and cattle. Free 2007 tax software download Do not separate animals into classes based on age, sex, or breed. Free 2007 tax software download Amount to be postponed. Free 2007 tax software download   Follow these steps to figure the amount of gain to be postponed for each class of animals. Free 2007 tax software download Divide the total income realized from the sale of all livestock in the class during the tax year by the total number of such livestock sold. Free 2007 tax software download For this purpose, do not treat any postponed gain from the previous year as income received from the sale of livestock. Free 2007 tax software download Multiply the result in (1) by the excess number of such livestock sold solely because of weather-related conditions. Free 2007 tax software download Example. Free 2007 tax software download You are a calendar year taxpayer and you normally sell 100 head of beef cattle a year. Free 2007 tax software download As a result of drought, you sold 135 head during 2012. Free 2007 tax software download You realized $70,200 from the sale. Free 2007 tax software download On August 9, 2012, as a result of drought, the affected area was declared a disaster area eligible for federal assistance. Free 2007 tax software download The income you can postpone until 2013 is $18,200 [($70,200 ÷ 135) × 35]. Free 2007 tax software download How to postpone gain. Free 2007 tax software download   To postpone gain, attach a statement to your tax return for the year of the sale. Free 2007 tax software download The statement must include your name and address and give the following information for each class of livestock for which you are postponing gain. Free 2007 tax software download A statement that you are postponing gain under Internal Revenue Code (IRC) section 451(e). Free 2007 tax software download Evidence of the weather-related conditions that forced the early sale or exchange of the livestock and the date, if known, on which an area was designated as eligible for assistance by the federal government because of weather-related conditions. Free 2007 tax software download A statement explaining the relationship of the area affected by the weather-related condition to your early sale or exchange of the livestock. Free 2007 tax software download The number of animals sold in each of the 3 preceding years. Free 2007 tax software download The number of animals you would have sold in the tax year had you followed your normal business practice in the absence of weather-related conditions. Free 2007 tax software download The total number of animals sold and the number sold because of weather-related conditions during the tax year. Free 2007 tax software download A computation, as described above, of the income to be postponed for each class of livestock. Free 2007 tax software download   Generally, you must file the statement and the return by the due date of the return, including extensions. Free 2007 tax software download However, for sales or exchanges treated as an involuntary conversion from weather-related sales of livestock in an area eligible for federal assistance (discussed in chapter 11), you can file this statement at any time during the replacement period. Free 2007 tax software download For other sales or exchanges, if you timely filed your return for the year without postponing gain, you can still postpone gain by filing an amended return within 6 months of the due date of the return (excluding extensions). Free 2007 tax software download Attach the statement to the amended return and write “Filed pursuant to section 301. Free 2007 tax software download 9100-2” at the top of the amended return. Free 2007 tax software download File the amended return at the same address you filed the original return. Free 2007 tax software download Once you have filed the statement, you can cancel your postponement of gain only with the approval of the IRS. Free 2007 tax software download Rents (Including Crop Shares) The rent you receive for the use of your farmland is generally rental income, not farm income. Free 2007 tax software download However, if you materially participate in farming operations on the land, the rent is farm income. Free 2007 tax software download See Landlord Participation in Farming in chapter 12. Free 2007 tax software download Pasture income and rental. Free 2007 tax software download   If you pasture someone else's livestock and take care of them for a fee, the income is from your farming business. Free 2007 tax software download You must enter it as Other income on Schedule F. Free 2007 tax software download If you simply rent your pasture for a flat cash amount without providing services, report the income as rent on Part I of Schedule E (Form 1040), Supplemental Income and Loss. Free 2007 tax software download Crop Shares You must include rent you receive in the form of crop shares in income in the year you convert the shares to money or the equivalent of money. Free 2007 tax software download It does not matter whether you use the cash method of accounting or an accrual method of accounting. Free 2007 tax software download If you materially participate in operating a farm from which you receive rent in the form of crop shares or livestock, the rental income is included in self-employment income. Free 2007 tax software download See Landlord Participation in Farming in chapter 12. Free 2007 tax software download Report the rental income on Schedule F. Free 2007 tax software download If you do not materially participate in operating the farm, report this income on Form 4835 and carry the net income or loss to Schedule E (Form 1040). Free 2007 tax software download The income is not included in self-employment income. Free 2007 tax software download Crop shares you use to feed livestock. Free 2007 tax software download   Crop shares you receive as a landlord and feed to your livestock are considered converted to money when fed to the livestock. Free 2007 tax software download You must include the fair market value of the crop shares in income at that time. Free 2007 tax software download You are entitled to a business expense deduction for the livestock feed in the same amount and at the same time you include the fair market value of the crop share as rental income. Free 2007 tax software download Although these two transactions cancel each other for figuring adjusted gross income on Form 1040, they may be necessary to figure your self-employment tax. Free 2007 tax software download See  chapter 12. Free 2007 tax software download Crop shares you give to others (gift). Free 2007 tax software download   Crop shares you receive as a landlord and give to others are considered converted to money when you make the gift. Free 2007 tax software download You must report the fair market value of the crop share as income, even though someone else receives payment for the crop share. Free 2007 tax software download Example. Free 2007 tax software download A tenant farmed part of your land under a crop-share arrangement. Free 2007 tax software download The tenant harvested and delivered the crop in your name to an elevator company. Free 2007 tax software download Before selling any of the crop, you instructed the elevator company to cancel your warehouse receipt and make out new warehouse receipts in equal amounts of the crop in the names of your children. Free 2007 tax software download They sell their crop shares in the following year and the elevator company makes payments directly to your children. Free 2007 tax software download In this situation, you are considered to have received rental income and then made a gift of that income. Free 2007 tax software download You must include the fair market value of the crop shares in your income for the tax year you gave the crop shares to your children. Free 2007 tax software download Crop share loss. Free 2007 tax software download   If you are involved in a rental or crop-share lease arrangement, any loss from these activities may be subject to the limits under the passive loss rules. Free 2007 tax software download See Publication 925 for information on these rules. Free 2007 tax software download Agricultural Program Payments You must include in income most government payments, such as those for approved conservation practices, direct payments, and counter-cyclical payments, whether you receive them in cash, materials, services, or commodity certificates. Free 2007 tax software download However, you can exclude from income some payments you receive under certain cost-sharing conservation programs. Free 2007 tax software download See Cost-Sharing Exclusion (Improvements) , later. Free 2007 tax software download Report the agricultural program payment on the appropriate line of Schedule F, Part I. Free 2007 tax software download Report the full amount even if you return a government check for cancellation, refund any of the payment you receive, or the government collects all or part of the payment from you by reducing the amount of some other payment or Commodity Credit Corporation (CCC) loan. Free 2007 tax software download However, you can deduct the amount you refund or return or that reduces some other payment or loan to you. Free 2007 tax software download Claim the deduction on Schedule F for the year of repayment or reduction. Free 2007 tax software download Commodity Credit Corporation (CCC) Loans Generally, you do not report loans you receive as income. Free 2007 tax software download However, if you pledge part or all of your production to secure a CCC loan, you can treat the loan as if it were a sale of the crop and report the loan proceeds as income in the year you receive them. Free 2007 tax software download You do not need approval from the IRS to adopt this method of reporting CCC loans. Free 2007 tax software download Once you report a CCC loan as income for the year received, you generally must report all CCC loans in that year and later years in the same way. Free 2007 tax software download However, you can obtain for your tax year an automatic consent to change your method of accounting for loans received from the CCC, from including the loan amount in gross income for the tax year in which the loan is received to treating the loan amount as a loan. Free 2007 tax software download For more information, see Part I of the Instructions for Form 3115 and Revenue Procedure 2008-52. Free 2007 tax software download Revenue Procedure 2008-52, 2008-36 I. Free 2007 tax software download R. Free 2007 tax software download B. Free 2007 tax software download 587, is available at  www. Free 2007 tax software download irs. Free 2007 tax software download gov/irb/2008-36_IRB/ar09. Free 2007 tax software download html. Free 2007 tax software download You can request income tax withholding from CCC loan payments you receive. Free 2007 tax software download Use Form W-4V, Voluntary Withholding Request. Free 2007 tax software download See chapter 16 for information about ordering the form. Free 2007 tax software download To elect to report a CCC loan as income, include the loan proceeds as income on Schedule F, line 7a, for the year you receive it. Free 2007 tax software download Attach a statement to your return showing the details of the loan. Free 2007 tax software download You must file the statement and the return by the due date of the return, including extensions. Free 2007 tax software download If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Free 2007 tax software download Attach the statement to the amended return and write “Filed pursuant to section 301. Free 2007 tax software download 9100-2” at the top of the return. Free 2007 tax software download File the amended return at the same address you filed the original return. Free 2007 tax software download When you make this election, the amount you report as income becomes your basis in the commodity. Free 2007 tax software download See chapter 6 for information on the basis of assets. Free 2007 tax software download If you later repay the loan, redeem the pledged commodity, and sell it, you report as income at the time of sale the sale proceeds minus your basis in the commodity. Free 2007 tax software download If the sale proceeds are less than your basis in the commodity, you can report the difference as a loss on Schedule F. Free 2007 tax software download If you forfeit the pledged crops to the CCC in full payment of the loan, the forfeiture is treated for tax purposes as a sale of the crops. Free 2007 tax software download If you did not report the loan proceeds as income for the year you received them, you must include them in your income for the year of the forfeiture. Free 2007 tax software download Form 1099-A. Free 2007 tax software download   If you forfeit pledged crops to the CCC in full payment of a loan, you may receive a Form 1099-A, Acquisition or Abandonment of Secured Property. Free 2007 tax software download “CCC” should be shown in box 6. Free 2007 tax software download The amount of any CCC loan outstanding when you forfeited your commodity should also be indicated on the form. Free 2007 tax software download Market Gain Under the CCC nonrecourse marketing assistance loan program, your repayment amount for a loan secured by your pledge of an eligible commodity is generally based on the lower of the loan rate or the prevailing world market price for the commodity on the date of repayment. Free 2007 tax software download If you repay the loan when the world price is lower, the difference between that repayment amount and the original loan amount is market gain. Free 2007 tax software download Whether you use cash or CCC certificates to repay the loan, you will receive a Form 1099-G showing the market gain you realized. Free 2007 tax software download Market gain should be reported as follows. Free 2007 tax software download If you elected to include the CCC loan in income in the year you received it, do not include the market gain in income. Free 2007 tax software download However, adjust the basis of the commodity for the amount of the market gain. Free 2007 tax software download If you did not include the CCC loan in income in the year received, include the market gain in your income. Free 2007 tax software download The following examples show how to report market gain. Free 2007 tax software download Example 1. Free 2007 tax software download Mike Green is a cotton farmer. Free 2007 tax software download He uses the cash method of accounting and files his tax return on a calendar year basis. Free 2007 tax software download He has deducted all expenses incurred in producing the cotton and has a zero basis in the commodity. Free 2007 tax software download In 2012, Mike pledged 1,000 pounds of cotton as collateral for a CCC loan of $2,000 (a loan rate of $2. Free 2007 tax software download 00 per pound). Free 2007 tax software download In 2013, he repaid the loan and redeemed the cotton for $1,500 when the world price was $1. Free 2007 tax software download 50 per pound (lower than the loan amount). Free 2007 tax software download Later in 2013, he sold the cotton for $2,500. Free 2007 tax software download The market gain on the redemption was $. Free 2007 tax software download 50 ($2. Free 2007 tax software download 00 – $1. Free 2007 tax software download 50) per pound. Free 2007 tax software download Mike realized total market gain of $500 ($. Free 2007 tax software download 50 x 1,000 pounds). Free 2007 tax software download How he reports this market gain and figures his gain or loss from the sale of the cotton depends on whether he included CCC loans in income in 2012. Free 2007 tax software download Included CCC loan. Free 2007 tax software download   Mike reported the $2,000 CCC loan as income for 2012 on Schedule F, line 1b, so he is treated as if he sold the cotton for $2,000 when he pledged it and repurchased the cotton for $1,500 when he redeemed it. Free 2007 tax software download The $500 market gain is not recognized on the redemption. Free 2007 tax software download He reports it for 2013 as an agricultural program payment on Schedule F, line 4a, but does not include it as a taxable amount on line 4b. Free 2007 tax software download   Mike's basis in the cotton after he redeemed it was $1,500, which is the redemption (repurchase) price paid for the cotton. Free 2007 tax software download His gain from the sale is $1,000 ($2,500 – $1,500). Free 2007 tax software download He reports the $1,000 gain as income for 2013 on Schedule F, line 1b. Free 2007 tax software download Excluded CCC loan. Free 2007 tax software download   Mike has income of $500 from market gain in 2013. Free 2007 tax software download He reports it on Schedule F, lines 4a and 4b. Free 2007 tax software download His basis in the cotton is zero, so his gain from its sale is $2,500. Free 2007 tax software download He reports the $2,500 gain as income for 2013 on Schedule F, line 1b. Free 2007 tax software download Example 2. Free 2007 tax software download The facts are the same as in Example 1 except that, instead of selling the cotton for $2,500 after redeeming it, Mike entered into an option-to-purchase contract with a cotton buyer before redeeming the cotton. Free 2007 tax software download Under that contract, Mike authorized the cotton buyer to pay the CCC loan on Mike's behalf. Free 2007 tax software download In 2013, the cotton buyer repaid the loan for $1,500 and immediately exercised his option, buying the cotton for $1,500. Free 2007 tax software download How Mike reports the $500 market gain on the redemption of the cotton and figures his gain or loss from its sale depends on whether he included CCC loans in income in 2012. Free 2007 tax software download Included CCC loan. Free 2007 tax software download   As in Example 1, Mike is treated as though he sold the cotton for $2,000 when he pledged it and repurchased the cotton for $1,500 when the cotton buyer redeemed it for him. Free 2007 tax software download The $500 market gain is not recognized on the redemption. Free 2007 tax software download Mike reports it for 2013 as an agricultural program payment on Schedule F, line 4a, but does not include it as a taxable amount on line 4b. Free 2007 tax software download   Also, as in Example 1, Mike's basis in the cotton when the cotton buyer redeemed it for him was $1,500. Free 2007 tax software download Mike has no gain or loss on its sale to the cotton buyer for that amount. Free 2007 tax software download Excluded CCC loan. Free 2007 tax software download   As in Example 1, Mike has income of $500 from market gain in 2013. Free 2007 tax software download He reports it on Schedule F, lines 4a and 4b. Free 2007 tax software download His basis in the cotton is zero, so his gain from its sale is $1,500. Free 2007 tax software download He reports the $1,500 gain as income for 2013 on Schedule F, line 1b. Free 2007 tax software download Conservation Reserve Program (CRP) Under the Conservation Reserve Program (CRP), if you own or operate highly erodible or other specified cropland, you may enter into a long-term contract with the USDA, agreeing to convert to a less intensive use of that cropland. Free 2007 tax software download You must include the annual rental payments and any one-time incentive payment you receive under the program on Schedule F, lines 4a and 4b. Free 2007 tax software download Cost-share payments you receive may qualify for the cost-sharing exclusion. Free 2007 tax software download See Cost-Sharing Exclusion (Improvements) , later. Free 2007 tax software download CRP payments are reported to you on Form 1099-G. Free 2007 tax software download Individuals who are receiving Social Security retirement or disability benefits may exclude CRP payments when calculating self-employment tax. Free 2007 tax software download See the instructions for Schedule SE (Form 1040). Free 2007 tax software download Crop Insurance and Crop Disaster Payments You must include in income any crop insurance proceeds you receive as the result of physical crop damage or reduction of crop revenue, or both. Free 2007 tax software download You generally include them in the year you receive them. Free 2007 tax software download Treat as crop insurance proceeds the crop disaster payments you receive from the federal government as the result of destruction or damage to crops, or the inability to plant crops, because of drought, flood, or any other natural disaster. Free 2007 tax software download You can request income tax withholding from crop disaster payments you receive from the federal government. Free 2007 tax software download Use Form W-4V, Voluntary Withholding Request. Free 2007 tax software download See chapter 16 for information about ordering the form. Free 2007 tax software download Election to postpone reporting until the following year. Free 2007 tax software download   You can postpone reporting some or all crop insurance proceeds as income until the year following the year the physical damage occurred if you meet all the following conditions. Free 2007 tax software download You use the cash method of accounting. Free 2007 tax software download You receive the crop insurance proceeds in the same tax year the crops are damaged. Free 2007 tax software download You can show that under your normal business practice you would have included income from the damaged crops in any tax year following the year the damage occurred. Free 2007 tax software download   Deferral is not permitted for proceeds received from revenue insurance policies. Free 2007 tax software download   To postpone reporting some or all crop insurance proceeds received in 2013, report the amount you received on Schedule F, line 6a, but do not include it as a taxable amount on line 6b. Free 2007 tax software download Check the box on line 8c and attach a statement to your tax return. Free 2007 tax software download The statement must include your name and address and contain the following information. Free 2007 tax software download A statement that you are making an election under IRC section 451(d) and Regulations section 1. Free 2007 tax software download 451-6. Free 2007 tax software download The specific crop or crops physically destroyed or damaged. Free 2007 tax software download A statement that under your normal business practice you would have included income from some or all of the destroyed or damaged crops in gross income for a tax year following the year the crops were destroyed or damaged. Free 2007 tax software download The cause of the physical destruction or damage and the date or dates it occurred. Free 2007 tax software download The total payments you received from insurance carriers, itemized for each specific crop, and the date you received each payment. Free 2007 tax software download The name of each insurance carrier from whom you received payments. Free 2007 tax software download   One election covers all crops representing a single trade or business. Free 2007 tax software download If you have more than one farming business, make a separate election for each one. Free 2007 tax software download For example, if you operate two separate farms on which you grow different crops and you keep separate books for each farm, you should make two separate elections to postpone reporting insurance proceeds you receive for crops grown on each of your farms. Free 2007 tax software download   An election is binding for the year unless the IRS approves your request to change it. Free 2007 tax software download To request IRS approval to change your election, write to the IRS at the following address giving your name, address, identification number, the year you made the election, and your reasons for wanting to change it. Free 2007 tax software download Ogden Submission Processing Center P. Free 2007 tax software download O. Free 2007 tax software download Box 9941 Ogden, UT 84409 Feed Assistance and Payments The Disaster Assistance Act of 1988 authorizes programs to provide feed assistance, reimbursement payments, and other benefits to qualifying livestock producers if the Secretary of Agriculture determines that, because of a natural disaster, a livestock emergency exists. Free 2007 tax software download These programs include partial reimbursement for the cost of purchased feed and for certain transportation expenses. Free 2007 tax software download They also include the donation or sale at a below-market price of feed owned by the Commodity Credit Corporation. Free 2007 tax software download Include in income: The market value of donated feed, The difference between the market value and the price you paid for feed you buy at below-market prices, and Any cost reimbursement you receive. Free 2007 tax software download You must include these benefits in income in the year you receive them. Free 2007 tax software download You cannot postpone reporting them under the rules explained earlier for weather-related sales of livestock or crop insurance proceeds. Free 2007 tax software download Report the benefits on Schedule F, Part I, as agricultural program payments. Free 2007 tax software download You can usually take a current deduction for the same amount as a feed expense. Free 2007 tax software download Cost-Sharing Exclusion (Improvements) You can exclude from your income part or all of a payment you receive under certain federal or state cost-sharing conservation, reclamation, and restoration programs. Free 2007 tax software download A payment is any economic benefit you get as a result of an improvement. Free 2007 tax software download However, this exclusion applies only to that part of a payment that meets all three of the following tests. Free 2007 tax software download It was for a capital expense. Free 2007 tax software download You cannot exclude any part of a payment for an expense you can deduct in the year you pay or incur it. Free 2007 tax software download You must include the payment for a deductible expense in income, and you can take any offsetting deduction. Free 2007 tax software download See chapter 5 for information on deducting soil and water conservation expenses. Free 2007 tax software download It does not substantially increase your annual income from the property for which it is made. Free 2007 tax software download An increase in annual income is substantial if it is more than the greater of the following amounts. Free 2007 tax software download 10% of the average annual income derived from the affected property before receiving the improvement. Free 2007 tax software download $2. Free 2007 tax software download 50 times the number of affected acres. Free 2007 tax software download The Secretary of Agriculture certified that the payment was primarily made for conserving soil and water resources, protecting or restoring the environment, improving forests, or providing a habitat for wildlife. Free 2007 tax software download Qualifying programs. Free 2007 tax software download   If the three tests listed above are met, you can exclude part or all of the payments from the following programs. Free 2007 tax software download The rural clean water program authorized by the Federal Water Pollution Control Act. Free 2007 tax software download The rural abandoned mine program authorized by the Surface Mining Control and Reclamation Act of 1977. Free 2007 tax software download The water bank program authorized by the Water Bank Act. Free 2007 tax software download The emergency conservation measures program authorized by title IV of the Agricultural Credit Act of 1978. Free 2007 tax software download The agricultural conservation program authorized by the Soil Conservation and Domestic Allotment Act. Free 2007 tax software download The great plains conservation program authorized by the Soil Conservation and Domestic Policy Act. Free 2007 tax software download The resource conservation and development program authorized by the Bankhead-Jones Farm Tenant Act and by the Soil Conservation and Domestic Allotment Act. Free 2007 tax software download Certain small watershed programs, listed later. Free 2007 tax software download Any program of a state, possession of the United States, a political subdivision of any of these, or of the District of Columbia under which payments are made to individuals primarily for conserving soil, protecting or restoring the environment, improving forests, or providing a habitat for wildlife. Free 2007 tax software download Several state programs have been approved. Free 2007 tax software download For information about the status of those programs, contact the state offices of the Farm Service Agency (FSA) and the Natural Resources and Conservation Service (NRCS). Free 2007 tax software download Small watershed programs. Free 2007 tax software download   If the three tests listed earlier are met, you can exclude part or all of the payments you receive under the following programs for improvements made in connection with a watershed. Free 2007 tax software download The programs under the Watershed Protection and Flood Prevention Act. Free 2007 tax software download The flood prevention projects under the Flood Control Act of 1944. Free 2007 tax software download The Emergency Watershed Protection Program under the Flood Control Act of 1950. Free 2007 tax software download Certain programs under the Colorado River Basin Salinity Control Act. Free 2007 tax software download The Wetlands Reserve Program authorized by the Food Security Act of 1985, the Federal Agriculture Improvement and Reform Act of 1996 and the Farm Security and Rural Investment Act of 2002. Free 2007 tax software download The Environmental Quality Incentives Program (EQIP) authorized by the Federal Agriculture Improvement and Reform Act of 1996. Free 2007 tax software download The Wildlife Habitat Incentives Program (WHIP) authorized by the Federal Agriculture Improvement and Reform Act of 1996. Free 2007 tax software download The Soil and Water Conservation Assistance Program authorized by the Agricultural Risk Protection Act of 2000. Free 2007 tax software download The Agricultural Management Assistance Program authorized by the Agricultural Risk Protection Act of 2000. Free 2007 tax software download The Conservation Reserve Program authorized by the Food Security Act of 1985 and the Federal Agriculture Improvement and Reform Act of 1996. Free 2007 tax software download The Forest Land Enhancement Program authorized under the Farm Security and Rural Investment Act of 2002. Free 2007 tax software download The Conservation Security Program authorized by the Food Security Act of 1985. Free 2007 tax software download The Forest Health Protection Program (FHPP) authorized by the Cooperative Forestry Assistance Act of 1978. Free 2007 tax software download Income realized. Free 2007 tax software download   The gross income you realize upon getting an improvement under these cost-sharing programs is the value of the improvement reduced by the sum of the excludable portion and your share of the cost of the improvement (if any). Free 2007 tax software download Value of the improvement. Free 2007 tax software download   You determine the value of the improvement by multiplying its fair market value (defined in chapter 6) by a fraction. Free 2007 tax software download The numerator of the fraction is the total cost of the improvement (all amounts paid either by you or by the government for the improvement) reduced by the sum of the following items. Free 2007 tax software download Any government payments under a program not listed earlier. Free 2007 tax software download Any part of a government payment under a program listed earlier that the Secretary of Agriculture has not certified as primarily for conservation. Free 2007 tax software download Any government payment to you for rent or for your services. Free 2007 tax software download The denominator of the fraction is the total cost of the improvement. Free 2007 tax software download Excludable portion. Free 2007 tax software download   The excludable portion is the present fair market value of the right to receive annual income from the affected acreage of the greater of the following amounts. Free 2007 tax software download 10% of the prior average annual income from the affected acreage. Free 2007 tax software download The prior average annual income is the average of the gross receipts from the affected acreage for the last 3 tax years before the tax year in which you started to install the improvement. Free 2007 tax software download $2. Free 2007 tax software download 50 times the number of affected acres. Free 2007 tax software download The calculation of present fair market value of the right to receive annual income is too complex to discuss in this publication. Free 2007 tax software download You may need to consult your tax advisor for assistance. Free 2007 tax software download Example. Free 2007 tax software download One hundred acres of your land was reclaimed under a rural abandoned mine program contract with the Natural Resources Conservation Service of the USDA. Free 2007 tax software download The total cost of the improvement was $500,000. Free 2007 tax software download The USDA paid $490,000. Free 2007 tax software download You paid $10,000. Free 2007 tax software download The value of the cost-sharing improvement is $15,000. Free 2007 tax software download The present fair market value of the right to receive the annual income described in (1) above is $1,380, and the present fair market value of the right to receive the annual income described in (2) is $1,550. Free 2007 tax software download The excludable portion is the greater amount, $1,550. Free 2007 tax software download You figure the amount to include in gross income as follows: Value of cost-sharing improvement $15,000 Minus: Your share $10,000     Excludable portion 1,550 11,550 Amount included in income $ 3,450 Effects of the exclusion. Free 2007 tax software download   When you figure the basis of property you acquire or improve using cost-sharing payments excluded from income, subtract the excluded payments from your capital costs. Free 2007 tax software download Any payment excluded from income is not part of your basis. Free 2007 tax software download In the example above, the increase in basis is $500,000 – $490,000 + $3,450 = $13,450. Free 2007 tax software download   In addition, you cannot take depreciation, amortization, or depletion deductions for the part of the cost of the property for which you receive cost-sharing payments you exclude from income. Free 2007 tax software download How to report the exclusion. Free 2007 tax software download   Attach a statement to your tax return (or amended return) for the tax year you receive the last government payment for the improvement. Free 2007 tax software download The statement must include the following information. Free 2007 tax software download The dollar amount of the cost funded by the government payment. Free 2007 tax software download The value of the improvement. Free 2007 tax software download The amount you are excluding. Free 2007 tax software download   Report the total cost-sharing payments you receive on Schedule F, line 4a, and the taxable amount on line 4b. Free 2007 tax software download Recapture. Free 2007 tax software download   If you dispose of the property within 20 years after you received the excluded payments, you must treat as ordinary income part or all of the cost-sharing payments you excluded. Free 2007 tax software download In the above example, if the 100 acres were sold within 20 years of the exclusion for a gain of $2,000, $1,550 of that amount would be included in ordinary income. Free 2007 tax software download You must report the recapture on Form 4797. Free 2007 tax software download See Section 1255 property under Other Gains in chapter 9. Free 2007 tax software download Electing not to exclude payments. Free 2007 tax software download   You can elect not to exclude all or part of any payments you receive under these programs. Free 2007 tax software download If you make this election for all of these payments, none of the above restrictions and rules apply. Free 2007 tax software download You must make this election by the due date, including extensions, for filing your return. Free 2007 tax software download In the example above, an election not to exclude payments results in $5,000 included in income and a $15,000 increase in basis. Free 2007 tax software download If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Free 2007 tax software download Write “Filed pursuant to section 301. Free 2007 tax software download 9100-2” at the top of the amended return and file it at the same address you filed the original return. Free 2007 tax software download Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 The Farm Security and Rural Investment Act of 2002 created two new types of payments—direct and counter-cyclical payments. Free 2007 tax software download You must include these payments on Schedule F, lines 4a and 4b. Free 2007 tax software download The Food, Conservation, and Energy Act of 2008 provides for direct and counter-cyclical payments (DCP) as well as Average Crop Revenue Election (ACRE) payments. Free 2007 tax software download You must include these payments on Schedule F, lines 6a and 6b. Free 2007 tax software download The American Taxpayer Relief Act of 2012, enacted on January 2, 2013, amends the Food, Conservation, and Energy Act of 2008 and provided a one-year extension for these payments. Free 2007 tax software download Tobacco Quota Buyout Program Payments The Fair and Equitable Tobacco Reform Act of 2004, title VI of the American Jobs Creation Act of 2004, terminated the tobacco marketing quota program and the tobacco price support program. Free 2007 tax software download As a result, the USDA offered to enter into contracts with eligible tobacco quota holders and growers to provide compensation for the lost value of the quotas and related price support. Free 2007 tax software download If you are an eligible tobacco quota holder, your contract entitles you to receive total payments of $7 per pound of quota in 10 equal annual payments in fiscal years 2005 through 2014. Free 2007 tax software download If you are an eligible tobacco grower, your contract entitles you to receive total payments of up to $3 per pound of quota in 10 equal annual payments in fiscal years 2005 through 2014. Free 2007 tax software download Tobacco Quota Holders Contract payments you receive are considered proceeds from a sale of your tobacco quota as of the date on which you and the USDA enter into the contract. Free 2007 tax software download Your taxable gain or loss is the total amount received for your quota reduced by any amount treated as interest (discussed below), over your adjusted basis. Free 2007 tax software download The gain or loss is capital or ordinary depending on how you used the quota. Free 2007 tax software download See Capital or ordinary gain or loss , later. Free 2007 tax software download Report the entire gain on your income tax return for the tax year that includes the date you entered into the contract if you elect not to use the installment method. Free 2007 tax software download Adjusted basis. Free 2007 tax software download   The adjusted basis of your quota is determined differently depending on how you obtained the quota. Free 2007 tax software download The basis of a quota derived from an original grant by the federal government is zero. Free 2007 tax software download The basis of a purchased quota is the purchase price. Free 2007 tax software download The basis of a quota received as a gift is generally the same as the donor's basis. Free 2007 tax software download However, under certain circumstances, the basis is increased by the amount of gift taxes paid. Free 2007 tax software download If the basis is greater than the fair market value of the quota at the time of the gift, the basis for determining loss is the fair market value. Free 2007 tax software download The basis of an inherited quota is generally the fair market value of the quota at the time of the decedent's death. Free 2007 tax software download Reduction of basis. Free 2007 tax software download   You are required to reduce the basis of your tobacco quota by the following amounts. Free 2007 tax software download Deductions you took for amortization, depletion, or depreciation. Free 2007 tax software download Amounts you previously deducted as a loss because of a reduction in the number of pounds of tobacco allowable under the quota. Free 2007 tax software download The entire cost of a purchased quota you deducted in an earlier year (which reduces your basis to zero). Free 2007 tax software download Amount treated as interest. Free 2007 tax software download   You must reduce your tobacco quota buyout program payment by the amount treated as interest. Free 2007 tax software download The interest is reportable as ordinary income. Free 2007 tax software download If payments total $3,000 or less, your total quota buyout program payment does not include any amount treated as interest and you are not required to reduce the total payment you receive. Free 2007 tax software download   In all other cases, a portion of each payment may be treated as interest for federal tax purposes. Free 2007 tax software download You may be required to reduce your total quota buyout program payment before you calculate your gain or loss. Free 2007 tax software download For more information, see Notice 2005-57, 2005-32 I. Free 2007 tax software download R. Free 2007 tax software download B. Free 2007 tax software download 267, available at www. Free 2007 tax software download irs. Free 2007 tax software download gov/irb/2005-32_IRB/ar13. Free 2007 tax software download html. Free 2007 tax software download Installment method. Free 2007 tax software download   You may use the installment method to report a gain if you receive at least one payment after the close of your tax year. Free 2007 tax software download Under the installment method, a portion of the gain is taken into account in each year in which a payment is received. Free 2007 tax software download See chapter 10 for more information. Free 2007 tax software download Capital or ordinary gain or loss. Free 2007 tax software download   Whether your gain or loss is ordinary or capital depends on how you used the quota. Free 2007 tax software download Quota used in the trade or business of farming. Free 2007 tax software download   If you used the quota in the trade or business of farming and you held it for more than one year, you report the transaction as a section 1231 transaction on Form 4797. Free 2007 tax software download See Section 1231 transactions in the Instructions for Form 4797 for detailed information on reporting section 1231 transactions. Free 2007 tax software download Quota held for investment. Free 2007 tax software download   If you held the quota for investment purposes, any gain or loss is capital gain or loss. Free 2007 tax software download The same result also applies if you held the quota for the production of income, though not connected with a trade or business. Free 2007 tax software download Gain treated as ordinary income. Free 2007 tax software download   If you previously deducted any of the following items, some or all of the capital gain must be recharacterized and reported as ordinary income. Free 2007 tax software download Any resulting capital gain is taxed as ordinary income up to the amount previously deducted. Free 2007 tax software download The cost of acquiring a quota. Free 2007 tax software download Amounts for amortization, depletion, or depreciation. Free 2007 tax software download Amounts to reflect a reduction in the quota pounds. Free 2007 tax software download   You should include the ordinary income on your return for the tax year even if you use the installment method to report the remainder of the gain. Free 2007 tax software download Self-employment income. Free 2007 tax software download   The tobacco quota buyout payments are not self-employment income. Free 2007 tax software download Income averaging for farmers. Free 2007 tax software download   The gain or loss resulting from the quota payments does not qualify for income averaging. Free 2007 tax software download A tobacco quota is considered an interest in land. Free 2007 tax software download Income averaging is not available for gain or loss arising from the sale or other disposition of land. Free 2007 tax software download Involuntary conversion. Free 2007 tax software download   The buyout of the tobacco quota is not an involuntary conversion. Free 2007 tax software download Form 1099-S. Free 2007 tax software download   A tobacco quota is considered an interest in land, so the USDA will generally report the total amount you receive under a contract on Form 1099-S, Proceeds From Real Estate Transactions, if the amount is $600 or more. Free 2007 tax software download The USDA will generally report any portion of a payment treated as interest of $600 or more to you on Form 1099-INT, Interest Income, for the year in which the payment is made. Free 2007 tax software download Like-kind exchange of quota. Free 2007 tax software download   You may postpone reporting the gain or loss from tobacco quota buyout payments by entering into a like-kind exchange if you comply with the requirements of section 1031 and the regulations thereunder. Free 2007 tax software download See Notice 2005-57 for more information. Free 2007 tax software download Tobacco Growers Contract payments you receive are determined by reference to the amount of quota under which you produced (or planted) quota tobacco during the 2002, 2003, and 2004 tobacco marketing years and are prorated based on the number of years that you produced (or planted) quota tobacco during those years. Free 2007 tax software download Taxation of payments to tobacco growers. Free 2007 tax software download   Payments to growers replace ordinary income that would have been earned had the tobacco marketing quota and price support programs continued. Free 2007 tax software download Individuals will generally report the payments as an Agricultural program payment on Schedule F. Free 2007 tax software download If you are a landowner who does not materially participate in the operation or management of the farm and are receiving the grower payment because your farm rental income is based on the tobacco grown by a tenant, the grower payment should be reported on Form 4835. Free 2007 tax software download Self-employment income. Free 2007 tax software download   Payments to growers generally represent self-employment income. Free 2007 tax software download If the grower is an individual carrying on a trade or business and deriving income (other than farm rental income properly reported on Form 4835) from that trade or business, the payments are net earnings from self-employment. Free 2007 tax software download Income averaging for farmers. Free 2007 tax software download   Payments to growers who are individuals qualify for farm income averaging. Free 2007 tax software download Form 1099-G. Free 2007 tax software download   If the amount received in a taxable year is $600 or more, the amount will generally be reported by the USDA on a Form 1099-G. Free 2007 tax software download Other Payments You must include most other government program payments in income. Free 2007 tax software download Fertilizer and Lime Include in income the value of fertilizer or lime you receive under a government program. Free 2007 tax software download How to claim the offsetting deduction is explained under Fertilizer and Lime in chapter 4. Free 2007 tax software download Improvements If government payments are based on improvements, such as a pollution control facility, you must include them in income. Free 2007 tax software download You must also capitalize the full cost of the improvement. Free 2007 tax software download Since you have included the payments in income, they do not reduce your basis. Free 2007 tax software download However, see Cost-Sharing Exclusion (Improvements) , earlier, for additional information. Free 2007 tax software download National Tobacco Growers' Settlement Trust Fund Payments If you are a producer, landowner, or tobacco quota owner who receives money from the National Tobacco Growers' Settlement Trust Fund, you must report those payments as income. Free 2007 tax software download You should receive a Form 1099-MISC, Miscellaneous Income, that shows the payment amount. Free 2007 tax software download If you produce a tobacco crop, report the payments as income from farming on your Schedule F. Free 2007 tax software download If you are a landowner or tobacco quota owner who leases tobacco-related property but you do not produce the crop, report the payments as farm rental income on Form 4835. Free 2007 tax software download Payment to More Than One Person The USDA reports program payments to the IRS. Free 2007 tax software download It reports a program payment intended for more than one person as having been paid to the person whose identification number is on record for that payment (payee of record). Free 2007 tax software download If you, as the payee of record, receive a program payment belonging to someone else, such as your landlord, the amount belonging to the other person is a nominee distribution. Free 2007 tax software download You should file Form 1099-G to report the identity of the actual recipient to the IRS. Free 2007 tax software download You should also give this information to the recipient. Free 2007 tax software download You can avoid the inconvenience of unnecessary inquiries about the identity of the recipient if you file this form. Free 2007 tax software download Report the total amount reported to you as the payee of record on Schedule F, line 4a or 6a. Free 2007 tax software download However, do not report as a taxable amount on line 4b or 6b any amount belonging to someone else. Free 2007 tax software download See chapter 16 for information about ordering Form 1099-G. Free 2007 tax software download Income From Cooperatives If you buy farm supplies through a cooperative, you may receive income from the cooperative in the form of patronage dividends (refunds). Free 2007 tax software download If you sell your farm products through a cooperative, you may receive either patronage dividends or a per-unit retain certificate, explained later, from the cooperative. Free 2007 tax software download Form 1099-PATR. Free 2007 tax software download   The cooperative will report the income to you on Form 1099-PATR or a similar form and send a copy to the IRS. Free 2007 tax software download Form 1099-PATR may also show an alternative minimum tax adjustment that you must include on Form 6251, Alternative Minimum Tax—Individuals, if you are required to file the form. Free 2007 tax software download For information on the alternative minimum tax, see the Instructions for Form 6251. Free 2007 tax software download Patronage Dividends You generally report patronage dividends as income on Schedule F, lines 3a and 3b, for the tax year you receive them. Free 2007 tax software download They include the following items. Free 2007 tax software download Money paid as a patronage dividend, including cash advances received (for example, from a marketing cooperative). Free 2007 tax software download The stated dollar value of qualified written notices of allocation. Free 2007 tax software download The fair market value of other property. Free 2007 tax software download Do not report as income on line 3b any patronage dividends you receive from expenditures that were not deductible, such as buying personal or family items, capital assets, or depreciable property. Free 2007 tax software download You must reduce the cost or other basis of these items by the amount of such patronage dividends received. Free 2007 tax software download Personal items include fuel purchased for personal use, basic local telephone service, and personal long distance calls. Free 2007 tax software download If you cannot determine what the dividend is for, report it as income on lines 3a and 3b. Free 2007 tax software download Qualified written notice of allocation. Free 2007 tax software download   If you receive a qualified written notice of allocation as part of a patronage dividend, you must generally include its stated dollar value in your income on Schedule F, lines 3a and 3b, in the year you receive it. Free 2007 tax software download A written notice of allocation is qualified if at least 20% of the patronage dividend is paid in money or by qualified check and either of the following conditions is met. Free 2007 tax software download The notice must be redeemable in cash for at least 90 days after it is issued, and you must have received a written notice of your right of redemption at the same time as the written notice of allocation. Free 2007 tax software download You must have agreed to include the stated dollar value in income in the year you receive the notice by doing one of the following. Free 2007 tax software download Signing and giving a written agreement to the cooperative. Free 2007 tax software download Getting or keeping membership in the cooperative after it adopted a bylaw providing that membership constitutes agreement. Free 2007 tax software download The cooperative must notify you in writing of this bylaw and give you a copy. Free 2007 tax software download Endorsing and cashing a qualified check paid as part of the same patronage dividend. Free 2007 tax software download You must cash the check by the 90th day after the close of the payment period for the cooperative's tax year for which the patronage dividend was paid. Free 2007 tax software download Qualified check. Free 2007 tax software download   A qualified check is any instrument that is redeemable in money and meets both of the following requirements. Free 2007 tax software download It is part of a patronage dividend that also includes a qualified written notice of allocation for which you met condition 2(c), above. Free 2007 tax software download It is imprinted with a statement that endorsing and cashing it constitutes the payee's consent to include in income the stated dollar value of any written notices of allocation paid as part of the same patronage dividend. Free 2007 tax software download Loss on redemption. Free 2007 tax software download   You can deduct on Schedule F, Part II, any loss incurred on the redemption of a qualified written notice of allocation you received in the ordinary course of your farming business. Free 2007 tax software download The loss is the difference between the stated dollar amount of the qualified written notice you included in income and the amount you received when you redeemed it. Free 2007 tax software download Nonqualified notice of allocation. Free 2007 tax software download   Do not include the stated dollar value of any nonqualified notice of allocation in income when you receive it. Free 2007 tax software download Your basis in the notice is zero. Free 2007 tax software download You must include in income for the tax year of disposition any amount you receive from its sale, redemption, or other disposition. Free 2007 tax software download Report that amount, up to the stated dollar value of the notice, on Schedule F, lines 3a and 3b. Free 2007 tax software download However, do not include that amount in your income if the notice resulted from buying or selling capital assets or depreciable property or from buying personal items, as explained in the following discussions. Free 2007 tax software download   If the amount you receive is more than the stated dollar value of the notice, report the excess as the type of income it represents. Free 2007 tax software download For example, if it represents interest income, report it on your return as interest. Free 2007 tax software download Buying or selling capital assets or depreciable property. Free 2007 tax software download   Do not include in income patronage dividends from buying capital assets or depreciable property used in your business. Free 2007 tax software download You must, however, reduce the basis of these assets by the dividends. Free 2007 tax software download This reduction is taken into account as of the first day of the tax year in which the dividends are received. Free 2007 tax software download If the dividends are more than your unrecovered basis, reduce the unrecovered basis to zero and include the difference on Schedule F, line 3a, for the tax year you receive them. Free 2007 tax software download   This rule and the exceptions explained below also apply to amounts you receive from the sale, redemption, or other disposition of a nonqualified notice of allocation that resulted from buying or selling capital assets or depreciable property. Free 2007 tax software download Example. Free 2007 tax software download On July 1, 2012, Mr. Free 2007 tax software download Brown, a patron of a cooperative association, bought a machine for his dairy farm business from the association for $2,900. Free 2007 tax software download The machine has a life of 7 years under MACRS (as provided in the Table of Class Lives and Recovery Periods in Appendix B of Publication 946, Depreciation and Amortization). Free 2007 tax software download Mr. Free 2007 tax software download Brown files his return on a calendar year basis. Free 2007 tax software download For 2012, he claimed a depreciation deduction of $311, using the 10. Free 2007 tax software download 71% depreciation rate from the 150% declining balance, half-year convention table (shown in Table A-14 in Appendix A of Publication 946). Free 2007 tax software download On July 2, 2013, the cooperative association paid Mr. Free 2007 tax software download Brown a $300 cash patronage dividend for buying the machine. Free 2007 tax software download Mr. Free 2007 tax software download Brown adjusts the basis of the machine and figures his depreciation deduction for 2013 (and later years) as follows. Free 2007 tax software download Cost of machine on July 1, 2012 $2,900 Minus: 2012 depreciation $311     2013 cash dividend 300 611 Adjusted basis for  depreciation for 2013: $2,289 Depreciation rate: 1 ÷ 6½ (remaining recovery period as of 1/1/2012) = 15. Free 2007 tax software download 38% × 1. Free 2007 tax software download 5 = 23. Free 2007 tax software download 07% Depreciation deduction for 2013 ($2,289 × 23. Free 2007 tax software download 07%) $528 Exceptions. Free 2007 tax software download   If the dividends are for buying or selling capital assets or depreciable property you did not own at any time during the year you received the dividends, you must include them on Schedule F, lines 3a and 3b, unless one of the following rules applies. Free 2007 tax software download If the dividends relate to a capital asset you held for more than 1 year for which a loss was or would have been deductible, treat them as gain from the sale or exchange of a capital asset held for more than 1 year. Free 2007 tax software download If the dividends relate to a capital asset for which a loss was not or would not have been deductible, do not report them as income (ordinary or capital gain). Free 2007 tax software download   If the dividends are for selling capital assets or depreciable property during the year you received the dividends, treat them as an additional amount received on the sale. Free 2007 tax software download Personal purchases. Free 2007 tax software download   Because you cannot deduct the cost of personal, living, or family items, such as supplies, equipment, or services not related to the production of farm income, you can omit from the taxable amount of patronage dividends on Schedule F, line 3b, any dividends from buying those items (and you must reduce the cost or other basis of those items by the amount of the dividends). Free 2007 tax software download This rule also applies to amounts you receive from the sale, redemption, or other disposition of a nonqualified written notice of allocation resulting from these purchases. Free 2007 tax software download Per-Unit Retain Certificates A per-unit retain certificate is any written notice that shows the stated dollar amount of a per-unit retain allocation made to you by the cooperative. Free 2007 tax software download A per-unit retain allocation is an amount paid to patrons for products sold for them that is fixed without regard to the net earnings of the cooperative. Free 2007 tax software download These allocations can be paid in money, other property, or qualified certificates. Free 2007 tax software download Per-unit retain certificates issued by a cooperative generally receive the same tax treatment as patronage dividends, discussed earlier. Free 2007 tax software download Qualified certificates. Free 2007 tax software download   Qualified per-unit retain certificates are those issued to patrons who have agreed to include the stated dollar amount of these certificates in income in the year of receipt. Free 2007 tax software download The agreement may be made in writing or by getting or keeping membership in a cooperative whose bylaws or charter states that membership constitutes agreement. Free 2007 tax software download If you receive qualified per-unit retain certificates, include the stated dollar amount of the certificates in income on Schedule F, lines 3a and 3b, for the tax year you receive them. Free 2007 tax software download Nonqualified certificates. Free 2007 tax software download   Do not include the stated dollar value of a nonqualified per-unit retain certificate in income when you receive it. Free 2007 tax software download Your basis in the certificate is zero. Free 2007 tax software download You must include in income any amount you receive from its sale, redemption, or other disposition. Free 2007 tax software download Report the amount you receive from the disposition as ordinary income on Schedule F, lines 3a and 3b, for the tax year of disposition. Free 2007 tax software download Cancellation of Debt This section explains the general rule for including canceled debt in income and the exceptions to the general rule. Free 2007 tax software download For more information on canceled debt, see Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. Free 2007 tax software download General Rule Generally, if your debt is canceled or forgiven, other than as a gift or bequest to you, you must include the canceled amount in gross income for tax purposes. Free 2007 tax software download Discharge of qualified farm indebtedness (defined below) is one of the exceptions to the general rule. Free 2007 tax software download It is excluded from taxable income (see Exclusions , later). Free 2007 tax software download Report the canceled amount on Schedule F, line 8, if you incurred the debt in your farming business. Free 2007 tax software download If the debt is a nonbusiness debt, report the canceled amount as other income on Form 1040, line 21. Free 2007 tax software download Election to defer income from discharge of indebtedness. Free 2007 tax software download   You can elect to defer income from a discharge of business indebtedness that occurred after 2008 and before 2011. Free 2007 tax software download Generally, if the election is made, the deferred income is included in gross income ratably over a 5-year period beginning in 2014 (for calendar year taxpayers) and the exclusions listed below do not apply. Free 2007 tax software download See IRC section 108(i) and Publication 4681 for details. Free 2007 tax software download Form 1099-C. Free 2007 tax software download   If a federal agency, financial institution, credit union, finance company, or credit card company cancels or forgives your debt of $600 or more, you will receive a Form 1099-C, Cancellation of Debt. Free 2007 tax software download The amount of debt canceled is shown in box 2. Free 2007 tax software download Exceptions The following discussion covers some exceptions to the general rule for canceled debt. Free 2007 tax software download These exceptions apply before the exclusions discussed below. Free 2007 tax software download Price reduced after purchase. Free 2007 tax software download   If your purchase of property was financed by the seller and the seller reduces the amount of the debt at a time when you are not insolvent and the reduction does not occur in a chapter 11 bankruptcy case, the amount of the debt reduction will be treated as a reduction in the purchase price of the property. Free 2007 tax software download Reduce your basis in the property by the amount of the reduction in the debt. Free 2007 tax software download The rules that apply to bankruptcy and insolvency are explained below under Exclusions . Free 2007 tax software download Deductible debt. Free 2007 tax software download   You do not realize income from a canceled debt to the extent the payment of the debt would have been a deductible expense. Free 2007 tax software download This exception applies before the price reduction exception discussed above and the bankruptcy and insolvency exclusions discussed next. Free 2007 tax software download Example. Free 2007 tax software download You get accounting services for your farm on credit. Free 2007 tax software download Later, you have trouble paying your farm debts, but you are not bankrupt or insolvent. Free 2007 tax software download Your accountant forgives part of the amount you owe for the accounting services. Free 2007 tax software download How you treat the canceled debt depends on your method of accounting. Free 2007 tax software download Cash method — You do not include the canceled debt in income because payment of the debt would have been deductible as a business expense. Free 2007 tax software download Accrual method — You include the canceled debt in income because the expense was deductible when you incurred the debt. Free 2007 tax software download Exclusions Do not include canceled debt in income in the following situations. Free 2007 tax software download The cancellation takes place in a bankruptcy case under title 11 of the U. Free 2007 tax software download S. Free 2007 tax software download Code. Free 2007 tax software download The cancellation takes place when you are insolvent. Free 2007 tax software download The canceled debt is a qualified farm debt. Free 2007 tax software download The canceled debt is a qualified real property business debt (in the case of a taxpayer other than a C corporation). Free 2007 tax software download See Publication 334, Tax Guide for Small Business, chapter 5. Free 2007 tax software download The canceled debt is qualified principal residence indebtedness which is discharged after 2006 and before 2014. Free 2007 tax software download The exclusions do not apply in the following situations: If a canceled debt is excluded from income because it takes place in a bankruptcy case, the exclusions in situations (2), (3), (4), and (5) do not apply. Free 2007 tax software download If a canceled debt is excluded from income because it takes place when you are insolvent, the exclusions in situations (3) and (4) do not apply to the extent you are insolvent. Free 2007 tax software download If a canceled debt is excluded from income because it is qualified principal residence indebtedness, the exclusion in situation (2) does not apply unless you elect to apply situation (2) instead of the exclusion for qualified principal residence indebtedness. Free 2007 tax software download See Form 982 , later, for information on how to claim an exclusion for a canceled debt. Free 2007 tax software download Debt. Free 2007 tax software download   For this discussion, debt includes any debt for which you are liable or that attaches to property you hold. Free 2007 tax software download Bankruptcy and Insolvency You can exclude a canceled debt from income if you are bankrupt or to the extent you are insolvent. Free 2007 tax software download Bankruptcy. Free 2007 tax software download   A bankruptcy case is a case under title 11 of the U. Free 2007 tax software download S. Free 2007 tax software download Code if you are under the jurisdiction of the court and the cancellation of the debt is granted by the court or is the result of a plan approved by the court. Free 2007 tax software download   Do not include debt canceled in a bankruptcy case in your income in the year it is canceled. Free 2007 tax software download Instead, you must use the amount canceled to reduce your tax attributes, explained below under Reduction of tax attributes . Free 2007 tax software download Insolvency. Free 2007 tax software download   You are insolvent to the extent your liabilities are more than the fair market value of your assets immediately before the cancellation of debt. Free 2007 tax software download   You can exclude canceled debt from gross income up to the amount by which you are insolvent. Free 2007 tax software download If the canceled debt is more than this amount and the debt qualifies, you can apply the rules for qualified farm debt or qualified real property business debt to the difference. Free 2007 tax software download Otherwise, you include the difference in gross income. Free 2007 tax software download Use the amount excluded because of insolvency to reduce any tax attributes, as explained below under Reduction of tax attributes . Free 2007 tax software download You must reduce the tax attributes under the insolvency rules before applying the rules for qualified farm debt or for qualified real property business debt. Free 2007 tax software download Example. Free 2007 tax software download You had a $15,000 debt that was not qualified principal residence debt canceled outside of bankruptcy. Free 2007 tax software download Immediately before the cancellation, your liabilities totaled $80,000 and your assets totaled $75,000. Free 2007 tax software download Since your liabilities were more than your assets, you were insolvent to the extent of $5,000 ($80,000 − $75,000). Free 2007 tax software download You can exclude this amount from income. Free 2007 tax software download The remaining canceled debt ($10,000) may be subject to the qualified farm debt or qualified real property business debt rules. Free 2007 tax software download If not, you must include it in income. Free 2007 tax software download Reduction of tax attributes. Free 2007 tax software download   If you exclude canceled debt from income in a bankruptcy case or during insolvency, you must use the excluded debt to reduce certain tax attributes. Free 2007 tax software download Order of reduction. Free 2007 tax software download   You must use the excluded canceled debt to reduce the following tax attributes in the order listed unless you elect to reduce the basis of depreciable property first, as explained later. Free 2007 tax software download Net operating loss (NOL). Free 2007 tax software download Reduce any NOL for the tax year of the debt cancellation, and then any NOL carryover to that year. Free 2007 tax software download Reduce the NOL or NOL carryover one dollar for each dollar of excluded canceled debt. Free 2007 tax software download General business credit carryover. Free 2007 tax software download Reduce the credit carryover to or from the tax year of the debt cancellation. Free 2007 tax software download Reduce the carryover 331/3 cents for each dollar of excluded canceled debt. Free 2007 tax software download Minimum tax credit. Free 2007 tax software download Reduce the minimum tax credit available at the beginning of the tax year following the tax year of the debt cancellation. Free 2007 tax software download Reduce the credit 331/3 cents for each dollar of excluded canceled debt. Free 2007 tax software download Capital loss. Free 2007 tax software download Reduce any net capital loss for the tax year of the debt cancellation, and then any capital loss carryover to that year. Free 2007 tax software download Reduce the capital loss or loss carryover one dollar for each dollar of excluded canceled debt. Free 2007 tax software download Basis. Free 2007 tax software download Reduce the basis of the property you hold at the beginning of the tax year following the tax year of the debt cancellation in the following order. Free 2007 tax software download Real property (except inventory) used in your trade or business or held for investment that secured the canceled debt. Free 2007 tax software download Personal property (except inventory and accounts and notes receivable) used in your trade or business or held for investment that secured the canceled debt. Free 2007 tax software download Other property (except inventory and accounts and notes receivable) used in your trade or business or held for investment. Free 2007 tax software download Inventory and accounts and notes receivable. Free 2007 tax software download Other property. Free 2007 tax software download Reduce the basis one dollar for each dollar of excluded canceled debt. Free 2007 tax software download However, the reduction cannot be more than the total basis of property and the amount of money you hold immediately after the debt cancellation minus your total liabilities immediately after the cancellation. Free 2007 tax software download For allocation rules that apply to basis reductions for multiple canceled debts, see Regulations section 1. Free 2007 tax software download 1017-1(b)(2). Free 2007 tax software download Also see Electing to reduce the basis of depreciable property
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Free 2007 tax software download 19. Free 2007 tax software download   Ajustes Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: Deducción por Intereses sobre Préstamos de EstudiosDefinición de los Intereses sobre Préstamos de Estudios ¿Puede Reclamar la Deducción? ¿Cuánto Puede Deducir? ¿Cómo Calcular la Deducción? Deducción por Matrícula y Cuotas Escolares¿Puede Reclamar la Deducción? Gastos que Califican Estudiante que Reúne los Requisitos Quién Puede Reclamar los Gastos de un Dependiente Cuánto se Puede Deducir Gastos del Educador Introduction Este capítulo trata de ajustes relacionados con la educación que puede deducir al calcular el ingreso bruto ajustado. Free 2007 tax software download Este capítulo incluye información sobre la deducción por intereses sobre préstamos de estudios, la deducción de matrículas y cuotas escolares y la deducción por gastos del educador. Free 2007 tax software download Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Deducción por Intereses sobre Préstamos de Estudios Por lo general, los intereses personales que pague, salvo ciertos intereses hipotecarios, no son deducibles en la declaración de impuestos. Free 2007 tax software download No obstante, si su ingreso bruto ajustado modificado (MAGI, por sus siglas en inglés) es menos de $75,000 ($155,000 si presenta una declaración conjunta), se permite una deducción especial por los intereses pagados sobre préstamos de estudios (también conocidos como préstamos educativos) utilizados para enseñanza superior. Free 2007 tax software download Para la mayoría de los contribuyentes, el MAGI es el ingreso bruto ajustado en la declaración de impuestos federales sobre el ingreso antes de restar deducción alguna por intereses sobre préstamos de estudios. Free 2007 tax software download Esta deducción puede reducir la cantidad de su ingreso sujeto a impuestos hasta un máximo de $2,500 en el año 2013. Free 2007 tax software download La Tabla 19-1 resume características de la deducción por intereses sobre préstamos de estudios. Free 2007 tax software download Tabla 19-1. Free 2007 tax software download Resumen de la Deducción por Intereses sobre Préstamos de Estudios No se base únicamente en esta tabla. Free 2007 tax software download Consulte el texto para más detalles. Free 2007 tax software download Característica Descripción Beneficio máximo Puede reducir su ingreso tributable hasta un máximo de $2,500. Free 2007 tax software download Requisitos para obtener un préstamo Su préstamo de estudios: •  tiene que haber sido obtenido sólo para pagar gastos de estudios calificados y   • no puede ser de un pariente ni puede haberse hecho conforme a un plan calificado provisto por su empleador. Free 2007 tax software download Requisitos para estudiantes El estudiante tiene que: • ser usted, su cónyuge o su dependiente y   • estar matriculado por lo menos a tiempo parcial en un programa que lleve a obtener un título, certificación o cualquier otra credencial educacional en una institución educativa que reúne los requisitos. Free 2007 tax software download Plazo de la deducción Puede deducir intereses pagados durante el período que quede del préstamo de estudios. Free 2007 tax software download Eliminación gradual por fases La cantidad a deducir depende del nivel de ingresos. Free 2007 tax software download Definición de los Intereses sobre Préstamos de Estudios Los “intereses sobre préstamos de estudios” son intereses que usted pagó durante el año sobre un préstamo de estudios calificado. Free 2007 tax software download Incluyen tanto pagos de intereses obligatorios como pagos de intereses voluntarios. Free 2007 tax software download Préstamo de estudios calificado Éste es un préstamo que se obtuvo únicamente para pagar gastos de estudios calificados (definidos más adelante) que fueran: Para usted, su cónyuge o una persona que fue dependiente de usted (según se define en el capítulo 3) cuando obtuvo el préstamo; Pagados o incurridos dentro de un plazo razonable antes o después de que obtuviera el préstamo y Para estudios provistos durante un período académico cuando un estudiante reúne los requisitos. Free 2007 tax software download Los préstamos de las siguientes fuentes no son préstamos de estudios calificados: Un pariente. Free 2007 tax software download Un plan calificado proporcionado por un empleador. Free 2007 tax software download Excepciones. Free 2007 tax software download   Para propósitos de la deducción de intereses sobre un préstamo de estudios, las siguientes excepciones corresponden a las reglas generales para dependientes: Una persona puede ser su dependiente aunque usted mismo sea el dependiente de otro contribuyente. Free 2007 tax software download Una persona puede ser su dependiente aunque dicha persona presente una declaración conjunta con un cónyuge. Free 2007 tax software download Una persona puede ser su dependiente aunque dicha persona tuviera un ingreso bruto ese año que fuera igual o superior a la cantidad de exención para el año ($3,900 para el año 2013). Free 2007 tax software download Plazo razonable. Free 2007 tax software download   Los gastos de estudios calificados se consideran pagados u ocasionados dentro de un plazo razonable, antes o después de obtener el préstamo, si se pagan con fondos de préstamos de estudios que son parte de un programa federal de préstamos de estudios postsecundarios. Free 2007 tax software download   Aun si no se pagan con fondos de dicho tipo de préstamo, los gastos se consideran pagados u ocasionados dentro de un plazo razonable si se reúnen los dos siguientes requisitos: Los gastos se relacionan con un período académico específico. Free 2007 tax software download Los fondos del préstamo se desembolsan dentro de un período que comience 90 días antes del período académico y termine 90 días después del fin de dicho período. Free 2007 tax software download   Si ninguna de las situaciones indicadas anteriormente le corresponde, el plazo razonable se determina basándose en todos los hechos y circunstancias pertinentes. Free 2007 tax software download Período académico. Free 2007 tax software download   Un período académico incluye un semestre, trimestre, un cuatrimestre del año escolar u otro período de estudios (tal como un curso escolar de verano) según lo determine de manera razonable una institución de enseñanza superior. Free 2007 tax software download En el caso de una institución de enseñanza superior que no tenga períodos académicos, sino horas de crédito u horas de reloj, cada período de pago se puede considerar un período académico. Free 2007 tax software download Estudiante que reúne los requisitos. Free 2007 tax software download   Es un estudiante que estaba matriculado por lo menos a medio tiempo en un programa para obtener una licenciatura, un certificado u otro título educativo reconocido. Free 2007 tax software download Matriculado por lo menos a medio tiempo. Free 2007 tax software download   Un estudiante se considera que estaba matriculado por lo menos a medio tiempo si estaba tomando al menos la mitad de los cursos normales a tiempo completo de su programa de estudios. Free 2007 tax software download   Cada institución de enseñanza superior que reúna los requisitos establece lo que se considera la mitad de la carga académica habitual para ser estudiante a tiempo completo. Free 2007 tax software download No obstante, este estándar establecido no puede ser inferior a cualquiera que haya establecido el Departamento de Educación de los Estados Unidos conforme a la Higher Education Act (Ley de Enseñanza Superior) de 1965. Free 2007 tax software download Pariente. Free 2007 tax software download   No puede deducir intereses sobre un préstamo que obtenga de un pariente. Free 2007 tax software download Los parientes incluyen: Su cónyuge; Sus hermanos y hermanas; Sus medios hermanos y medias hermanas; Sus antecesores (padres, abuelos, etc. Free 2007 tax software download ); Sus descendientes en línea directa (hijos, nietos, etc. Free 2007 tax software download ) y Ciertas sociedades anónimas, sociedades colectivas, fideicomisos y organizaciones exentas de impuestos. Free 2007 tax software download Plan calificado proporcionado por un empleador. Free 2007 tax software download   No puede deducir intereses sobre un préstamo conforme a un plan calificado proporcionado por un empleador o bajo un contrato comprado conforme a tal plan. Free 2007 tax software download Gastos de Estudios Calificados Para propósitos de la deducción por intereses sobre préstamos de estudios, estos gastos son el total del costo de asistir a una institución de enseñanza superior que reúna los requisitos, incluyendo instituciones para estudios de posgrado. Free 2007 tax software download Incluyen cantidades pagadas por los siguientes conceptos: Matrícula y cuotas escolares. Free 2007 tax software download Alojamiento y comida. Free 2007 tax software download Libros, materiales y equipo. Free 2007 tax software download Otros gastos necesarios (tales como los de transporte). Free 2007 tax software download Los gastos de alojamiento y comida reúnen los requisitos sólo en la medida en que no sobrepasen las siguientes cantidades: La asignación para alojamiento y comida, según lo determine la institución de enseñanza superior correspondiente, que se incluyó en los gastos de asistencia a dicha institución (para propósitos de ayuda financiera federal) durante un período académico específico y alojamiento del estudiante, o Si es mayor, la cantidad exacta cobrada si el estudiante vive en alojamiento que sea propiedad de la institución de enseñanza superior que reúna los requisitos o sea operado por la misma. Free 2007 tax software download Institución de enseñanza superior que reúne los requisitos. Free 2007 tax software download   Una institución de enseñanza superior que reúne los requisitos es todo colegio universitario, universidad, escuelas de enseñanza técnica u otra institución de enseñanza superior todas con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. Free 2007 tax software download Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. Free 2007 tax software download   Determinadas instituciones de enseñanza superior ubicadas fuera de los Estados Unidos participan también en los programas de asistencia financiera al estudiante (Federal Student Aid (FSA, por sus siglas en inglés)) del Departamento de Educación de los Estados Unidos. Free 2007 tax software download   Para propósitos de la deducción por intereses sobre préstamos de estudios, una institución de enseñanza superior que reúne los requisitos incluye también una institución que administre un programa de estudiantes practicantes o de residencia para recibir un título universitario o un certificado de una institución de enseñanza superior, un hospital o un centro de atención médica que ofrezca capacitación de posgrado. Free 2007 tax software download   Una institución de enseñanza superior tiene que reunir los criterios establecidos en el párrafo anterior solamente durante el (los) período(s) académico(s) para el (los) cual(es) se incurrió el préstamo de estudios. Free 2007 tax software download La posibilidad de deducir los intereses sobre el préstamo no se ve afectada si la institución deja de reunir los requisitos más tarde. Free 2007 tax software download    La institución de enseñanza superior debe poder indicarle si la misma reúne los requisitos. Free 2007 tax software download Ajustes tributarios a gastos de estudios calificados. Free 2007 tax software download   Tiene que reducir sus gastos de estudios calificados por ciertos artículos exentos de impuestos (tales como la parte exenta de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional)). Free 2007 tax software download Vea el capítulo 4 de la Publicación 970, en inglés, para más detalles. Free 2007 tax software download Incluya estas Partidas como Intereses Además de los intereses simples sobre el préstamo, ciertos costos originarios del préstamo, intereses capitalizados, intereses sobre líneas de crédito rotativas e intereses sobre préstamos de estudios refinanciados pueden ser intereses sobre préstamos de estudios si se reúnen todos los demás requisitos. Free 2007 tax software download Costo originario del préstamo. Free 2007 tax software download   Normalmente, esto es un cargo que el prestamista cobra solamente una vez, al hacer un préstamo. Free 2007 tax software download Para ser deducible como intereses, dicho cargo tiene que ser por el uso de dinero en vez de bienes o servicios (como cargos por compromisos o costos de tramitación) proporcionados por el prestamista. Free 2007 tax software download Un costo originario del préstamo tratado como intereses se acumula a lo largo del plazo del préstamo. Free 2007 tax software download Intereses capitalizados. Free 2007 tax software download    Son intereses por pagar sobre un préstamo de estudios que el prestamista añade al saldo pendiente del capital del préstamo. Free 2007 tax software download Intereses sobre líneas de crédito rotativas. Free 2007 tax software download   Estos intereses, los cuales incluyen interés sobre deudas de tarjetas de crédito, es interés sobre préstamos de estudios si el prestatario usa la línea de crédito (tarjeta de crédito) sólo para pagar gastos de estudios calificados. Free 2007 tax software download Vea Gastos de Estudios Calificados , anteriormente. Free 2007 tax software download Intereses sobre préstamos de estudios refinanciados. Free 2007 tax software download   Incluyen intereses sobre lo siguiente: Préstamos consolidados —préstamos que se usan para refinanciar más de un préstamo de estudios del mismo prestatario y Préstamos conjuntos —dos o más préstamos del mismo prestatario que son tratados como un solo préstamo tanto por el prestamista como por el prestatario. Free 2007 tax software download Si refinancia un préstamo de estudios calificado por más del préstamo original y usa la cantidad adicional para algún propósito que no sea gastos de estudios calificados, no puede deducir los intereses pagados sobre el préstamo refinanciado. Free 2007 tax software download Pagos de intereses voluntarios. Free 2007 tax software download   Son pagos hechos sobre un préstamo de estudios calificado durante un período en el que los pagos de intereses no son obligatorios, por ejemplo, si al prestatario se le ha concedido un aplazamiento o si todavía no han empezado los reintegros del préstamo. Free 2007 tax software download No Incluya estas Partidas como Intereses No puede reclamar una deducción de intereses sobre préstamos de estudios por: Intereses que pagó sobre un préstamo si, según las condiciones del mismo, usted no está obligado legalmente a hacer pagos de intereses. Free 2007 tax software download Costos originarios del préstamo pagados por propiedad o servicios proporcionados por el prestamista, tales como cargos por compromiso o costos de tramitación. Free 2007 tax software download Intereses que pagó sobre un préstamo en la medida en que los pagos hayan sido hechos a través de su participación en el National Health Service Corps Loan Repayment Program (Programa para Reintegros de Préstamos del Cuerpo Nacional de Servicios de Salud), conocido también como el “ NHSC Loan Repayment Program ” (Programa para Reintegros de Préstamos del NHSC) o a través de otros programas de asistencia para el reintegro de préstamos. Free 2007 tax software download Para más información, vea Student Loan Repayment Assistance (Asistencia para el reintegro de préstamos de estudios) en el capítulo 5 de la Publicación 970, en inglés. Free 2007 tax software download ¿Puede Reclamar la Deducción? Normalmente, puede reclamar la deducción si se cumplen todos los requisitos siguientes: Su estado civil para efectos de la declaración es cualquier estado civil excepto casado que presenta su declaración por separado. Free 2007 tax software download Nadie más reclama una exención por usted en su declaración de impuestos. Free 2007 tax software download Está obligado por ley a pagar intereses sobre un préstamo de estudios calificado. Free 2007 tax software download Usted pagó intereses sobre un préstamo de estudios calificado. Free 2007 tax software download Intereses pagados por otros. Free 2007 tax software download   Si usted es la persona legalmente obligada a pagar intereses y otra persona los paga por usted, a usted se le trata como si hubiese recibido el pago de la otra persona y, a su vez, hubiese pagado los intereses. Free 2007 tax software download Vea el capítulo 4 de la Publicación 970, en inglés, para más información. Free 2007 tax software download No se Permite Beneficio Doble No puede deducir como intereses sobre un préstamo de estudios una cantidad que sea deducible conforme a alguna otra disposición de la ley tributaria (por ejemplo, intereses hipotecarios). Free 2007 tax software download ¿Cuánto Puede Deducir? Su deducción por intereses sobre préstamos de estudios para el año 2013 es normalmente la cantidad que sea menor entre: $2,500 o Los intereses que usted pagó en el año 2013. Free 2007 tax software download Sin embargo, la cantidad determinada anteriormente se reduce paulatinamente si su MAGI está entre $60,000 y $75,000 ($125,000 y $155,000 si presenta una declaración conjunta). Free 2007 tax software download No puede tomar una deducción por intereses sobre préstamos de estudios si su MAGI es $75,000 o más ($155,000 o más si presenta una declaración conjunta). Free 2007 tax software download Para más detalles sobre cómo calcular su MAGI, vea el capítulo 4 de la Publicación 970, en inglés. Free 2007 tax software download ¿Cómo Calcular la Deducción? Para calcular la deducción, se suele usar la Student Loan Interest Deduction Worksheet (Hoja de trabajo de la deducción de intereses sobre préstamos de estudios), de las instrucciones del Formulario 1040 o del Formulario 1040A. Free 2007 tax software download No obstante, si presenta el Formulario 2555, 2555-EZ o 4563, o si excluye ingresos de fuentes dentro de Puerto Rico, tiene que llenar la Hoja de Trabajo 4-1 del capítulo 4 de la Publicación 970, en inglés. Free 2007 tax software download Para ayudarle a calcular la deducción por intereses sobre préstamos de estudios, debe recibir el Formulario 1098-E, Student Loan Interest Statement (Declaración de intereses sobre préstamos de estudios), en inglés. Free 2007 tax software download Generalmente, una institución (como un banco o una agencia gubernamental) que recibió pagos de intereses de $600 o más durante el año 2013 sobre uno o más préstamos de estudios calificados tiene que enviarle el Formulario 1098-E (o documento sustitutivo aceptable) a cada prestatario a más tardar el 31 de enero del año 2014. Free 2007 tax software download Para los préstamos de estudios calificados que se obtuvieron antes del 1 de septiembre de 2004, la institución está obligada a anotar en el Formulario 1098-E solamente los pagos de intereses establecidos. Free 2007 tax software download Puede ser que otros pagos de intereses, tales como ciertos costos originarios del préstamo e intereses capitalizados, no aparezcan en el formulario que usted reciba. Free 2007 tax software download No obstante, si paga intereses calificados que no se incluyen en el Formulario 1098-E, también puede deducir esas cantidades. Free 2007 tax software download Para información sobre cómo dividir pagos de intereses y pagos de capital, vea el capítulo 4 de la Publicación 970, en inglés. Free 2007 tax software download Para reclamar la deducción, anote la cantidad permisible en la línea 33 del Formulario 1040 o la línea 18 del Formulario 1040A. Free 2007 tax software download Deducción por Matrícula y Cuotas Escolares Quizás pueda deducir los gastos de estudios calificados que haya pagado durante el año para usted, su cónyuge o dependiente(s). Free 2007 tax software download No puede reclamar esta deducción si su estado civil para efectos de la declaración es casado que presenta la declaración por separado o si otra persona puede reclamar una exención por usted como dependiente en la declaración de impuestos de él o ella. Free 2007 tax software download Los gastos calificados tienen que ser por educación superior, tal como se explica más adelante en Gastos que Califican . Free 2007 tax software download La deducción por matrícula y cuotas escolares puede reducir la cantidad de sus ingresos sujetos a impuesto por hasta $4,000. Free 2007 tax software download La Tabla 19-2 resume las características de la deducción por matrícula y cuotas escolares. Free 2007 tax software download Quizás pueda tomar un crédito por sus gastos de estudios en lugar de una deducción. Free 2007 tax software download Puede escoger la opción que le proporcione una cantidad de impuesto menor. Free 2007 tax software download Vea el capítulo 35, Créditos Tributarios por Estudios , para saber detalles sobre los créditos. Free 2007 tax software download ¿Puede Reclamar la Deducción? Las siguientes reglas le pueden ayudar a determinar si puede reclamar la deducción por matrícula y cuotas escolares. Free 2007 tax software download Quién Puede Reclamar la Deducción La deducción por matrícula y gastos de estudios normalmente se puede reclamar si usted cumple los tres siguientes requisitos: Pagó gastos de educación superior calificados en 2013 para los períodos académicos que comienzan en 2013 y los que comienzan en los primeros tres meses de 2014. Free 2007 tax software download Pagó los gastos de estudios de un estudiante que reúne los requisitos. Free 2007 tax software download El estudiante que cumple los requisitos es usted mismo, su cónyuge o dependiente por el cual reclama una exención (que se define en el capítulo 3) en su declaración de impuestos. Free 2007 tax software download Los gastos de estudios calificados se definen bajo Gastos que Califican . Free 2007 tax software download La definición de “estudiantes que reúnen los requisitos” se puede ver más adelante bajo Estudiante que Reúne los Requisitos . Free 2007 tax software download Quién No Puede Reclamar la Deducción No puede reclamar la deducción por matrícula y cuotas escolares si le corresponde cualquiera de las siguientes situaciones: Su estado civil para efectos de la declaración de impuestos es casado que presenta por separado. Free 2007 tax software download Otra persona puede reclamar una exención por usted en la declaración de impuestos de él o ella. Free 2007 tax software download Usted no puede tomar la deducción aun si la otra persona de hecho no reclama la exención. Free 2007 tax software download Su MAGI es mayor que $80,000 ($160,000 si presenta una declaración conjunta). Free 2007 tax software download Usted (o su cónyuge) era un extranjero no residente en cualquier momento durante el año 2013 y dicho extranjero no residente no optó por ser tratado como extranjero residente para propósitos tributarios. Free 2007 tax software download Puede leer más información sobre extranjeros no residentes en la Publicación 519, U. Free 2007 tax software download S. Free 2007 tax software download Tax Guide for Aliens (Guía tributaria para extranjeros), en inglés. Free 2007 tax software download Usted o cualquier otra persona puede reclamar un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje en el año 2013 en lo que concierne a los gastos del estudiante por el cual se pagaron gastos de estudios calificados. Free 2007 tax software download No obstante, el recibir un crédito por parte de su estado no lo descalifica de reclamar una deducción por matrícula y cuotas. Free 2007 tax software download Tabla 19-2. Free 2007 tax software download Resumen de las Características de la Deducción por Matrícula y Cuotas Escolares No se base únicamente en lo que aparece en esta tabla. Free 2007 tax software download Consulte el texto de este capítulo para más detalles. Free 2007 tax software download Pregunta Respuesta ¿Cuál es la cantidad máxima del beneficio? Usted puede reducir la cantidad de sus ingresos sujetos a impuestos por hasta $4,000. Free 2007 tax software download ¿Dónde se toma la deducción? Se toma como ajuste a los ingresos en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A. Free 2007 tax software download ¿Para quién tienen que ser pagados los gastos? Un estudiante que está matriculado en una institución de enseñanza superior que reúne los requisitos quien es: usted, su cónyuge o su dependiente por el cual reclama una exención. Free 2007 tax software download ¿Qué matrícula y cuotas escolares son deducibles? La matrícula y cuotas escolares requeridas para matricularse o para asistir a una institución de enseñanza superior que reúne los requisitos, pero que no incluyen gastos personales, de manutención ni gastos de familia, tales como alojamiento y comida. Free 2007 tax software download Gastos que Califican La deducción por matrícula y cuotas escolares se basa en los gastos de estudios calificados que paga por usted mismo, su cónyuge o por un dependiente por el cual usted reclama una exención en su declaración de impuestos. Free 2007 tax software download La deducción normalmente se permite por gastos de estudios calificados que fueron pagados en el año 2013 relacionados con la matriculación en una institución de educación superior durante el año 2013 o por un período académico (que se definió anteriormente bajo Deducción por Intereses sobre Préstamos de Estudios ) comenzando en 2013 o en los primeros 3 meses de 2014. Free 2007 tax software download Pagos hechos con fondos de un préstamo. Free 2007 tax software download   Puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que pagó con los fondos de un préstamo. Free 2007 tax software download Utilice los gastos para calcular la deducción para el año en que se pagaron los gastos, no para el año en que se liquidó el préstamo. Free 2007 tax software download Trate los pagos del préstamo que fueron enviados directamente a la institución de educación como si hubieran sido pagados en la fecha en que dicha institución abona la cuenta del estudiante. Free 2007 tax software download Estudiante que se da de baja de su(s) clase(s). Free 2007 tax software download   Usted puede reclamar una deducción por matrícula y cuotas escolares en base de gastos de estudios calificados que no se reembolsan cuando un estudiante se da de baja (retira) de su(s) clase(s). Free 2007 tax software download Gastos de Estudios Calificados Para propósitos de la deducción por matrícula y cuotas escolares, los gastos de estudios calificados son la matrícula y ciertos gastos relacionados que son requisitos para la matriculación o asistencia en una institución de educación superior que reúne los requisitos. Free 2007 tax software download Institución de educación que reúne los requisitos. Free 2007 tax software download   Una “institución de educación superior que reúne los requisitos” es cualquier colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante, administrado por el Departamento de Educación de los Estados Unidos. Free 2007 tax software download Incluye prácticamente a casi todas las instituciones acreditadas de enseñanza superior públicas y sin fines de lucro así como las privadas con fines de lucro. Free 2007 tax software download La institución de educación superior deberá poder indicarle si la misma reúne los requisitos. Free 2007 tax software download   Ciertas instituciones de educación ubicadas fuera de los Estados Unidos participan también en los programas de FSA del Departamento de Educación de los Estados Unidos. Free 2007 tax software download Período académico. Free 2007 tax software download   Un período académico abarca un semestre, trimestre, un cuatrimestre o cualquier otro período de estudios según lo determine de manera razonable una institución de educación que reúne los requisitos. Free 2007 tax software download Si una institución de educación que reúne los requisitos no tiene períodos académicos sino horas de crédito, cada período de pago se puede considerar como un período académico. Free 2007 tax software download Gastos relacionados. Free 2007 tax software download   Las cuotas correspondientes a las actividades escolares y los gastos incurridos por los textos, útiles y equipo escolares se incluyen en los gastos de estudios calificados únicamente si las cuotas y gastos tienen que ser pagados a la institución como requisito de la matriculación o asistencia en dicha institución. Free 2007 tax software download Gastos pagados por adelantado. Free 2007 tax software download   Gastos de estudios calificados pagados en el año 2013 para un período académico que comienza en los primeros tres meses de 2014, sólo se pueden utilizar para calcular la deducción por matrícula y cuotas escolares de 2013. Free 2007 tax software download Vea Período académico, anteriormente. Free 2007 tax software download Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo de la deducción por matrícula y cuotas escolares sólo para 2013, únicamente si reúne todos los otros requisitos. Free 2007 tax software download No puede utilizar cantidad alguna que pagó en 2012 ó 2014 para calcular los gastos de estudios calificados que utiliza para el cálculo de su deducción por matrícula y cuotas escolares de 2013. Free 2007 tax software download No Se Permite Beneficio Doble No se le permite deducir lo siguiente: Los gastos de estudios calificados que usted deduce conforme a cualquier otra disposición de la ley, como, por ejemplo, un gasto de negocios. Free 2007 tax software download Los gastos de estudios calificados de un estudiante en su declaración de impuestos si usted o cualquier otra persona reclama un crédito tributario de oportunidad para los estadounidenses o un crédito vitalicio por aprendizaje por el mismo estudiante en el mismo año. Free 2007 tax software download Los gastos de estudios calificados que se utilizaron para calcular la parte libre de impuestos de una distribución proveniente de una cuenta Coverdell de ahorros para la educación (ESA, por sus siglas en inglés) o de un programa de matrículas calificado (QTP, por sus siglas en inglés). Free 2007 tax software download En el caso de un QTP, esto corresponde sólo a la cantidad de ganancias exentas de impuesto que fueron distribuidas, no a la recuperación de las contribuciones hechas al programa. Free 2007 tax software download Vea los temas titulados Figuring the Taxable Portion of a Distribution (Cálculo de la parte sujeta a impuesto de una distribución) del capítulo 7 (Coverdell Education Savings Account (ESA) (Cuenta Coverdell de ahorros para la educación (ESA)) y del capítulo 8 (Qualified Tuition Progam (QTP)) (Programa de matrícula calificado (QTP)), de la Publicación 970, en inglés. Free 2007 tax software download Los gastos de estudios calificados que han sido pagados con intereses exentos de impuestos provenientes de un bono de ahorros de los Estados Unidos (Formulario 8815, en inglés). Free 2007 tax software download Vea Figuring the Tax-Free Amount (Cálculo de la cantidad libre de impuestos), en el capítulo 10 de la Publicación 970, en inglés. Free 2007 tax software download Los gastos de estudios calificados que han sido pagados con ayuda económica para los estudios que estén exentos de impuestos, tales como becas de estudios, subvenciones o ayuda económica para los estudios provista por el empleador. Free 2007 tax software download Vea a continuación el tema titulado Ajustes a los gastos de estudios calificados. Free 2007 tax software download Ajustes a los gastos de estudios calificados. Free 2007 tax software download   Para cada estudiante, se tienen que reducir los gastos de estudios calificados pagados por o en nombre de dicho estudiante bajo las siguientes reglas. Free 2007 tax software download El resultado es el ajuste a los gastos de estudios calificados por cada estudiante. Free 2007 tax software download Ayuda económica para los estudios exenta de impuestos. Free 2007 tax software download   Por la ayuda económica para los estudios exenta de impuestos que recibió en 2013, tiene que reducir los gastos de estudios calificados para cada período académico por la cantidad de la ayuda económica para los estudios exenta de impuestos de dicho período. Free 2007 tax software download Vea Período académico, anteriormente. Free 2007 tax software download   Dicha asistencia incluye: La parte libre de impuestos de becas de estudios y becas de investigación (becas de desarrollo profesional), incluidas las subvenciones federales Pell (vea el capítulo 1 de la Publicación 970); La parte libre de impuestos de toda ayuda económica para estudios provista por el empleador (vea el capítulo 11 de la Publicación 970); Ayuda económica para estudios ofrecida a veteranos (vea el capítulo 1 de la Publicación 970) y Todo otro pago exento de impuestos (que no sean regalos o herencias) que se recibe en concepto de ayuda para estudios. Free 2007 tax software download   Por lo general, todas las becas de estudios o becas de investigación (becas de desarrollo profesional) son tratadas como una ayuda económica para los estudios exenta de impuestos. Free 2007 tax software download Sin embargo, una beca de estudios o beca de investigación (becas de desarrollo profesional) no será tratada como asistencia exenta de impuestos al punto de que es incluida como ingreso bruto (si tiene que presentar una declaración de impuestos) para el año que reciba la beca de estudios o para investigación (becas de desarrollo profesional) si uno de estos dos puntos aplica: La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de educación calificados), de la Publicación 970, en inglés. Free 2007 tax software download La beca de estudios o beca de investigación (becas de desarrollo profesional) (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. Free 2007 tax software download    Podría aumentar el valor combinado de la deducción por matrícula y cuotas escolares y cierta ayuda económica para los estudios si incluye alguna parte o toda la ayuda económica para los estudios en sus ingresos en el año en que recibió dicha ayuda. Free 2007 tax software download Para detalles, vea Adjustments to Qualified Education Expenses (Ajustes a los gastos de estudios calificados), en el capítulo 6 de la Publicación 970, en inglés. Free 2007 tax software download   Cierta ayuda económica para los estudios exenta de impuestos recibida después de 2013 podría ser considerada como un reembolso de gastos de estudios calificados que se pagó en 2013. Free 2007 tax software download La ayuda económica para los estudios exenta de impuestos incluye toda ayuda económica para los estudios exenta de impuestos que usted o cualquier otra persona ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matriculación en una institución educativa calificada durante 2013). Free 2007 tax software download   Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. Free 2007 tax software download Si la ayuda económica para los estudios exenta de impuestos se recibe después de 2013 y después de que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos, más adelante. Free 2007 tax software download Reembolsos. Free 2007 tax software download   Un reembolso de gastos de estudios calificados puede reducir los ajustes a los gastos de estudios calificados por el año tributable o puede requerir que reintegre parte o el total del reembolso en su ingreso bruto para el año en que recibe el reembolso. Free 2007 tax software download Vea el capítulo 6 de la Publicación 970 para obtener más información. Free 2007 tax software download Alguna ayuda económica para los estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Free 2007 tax software download Vea Ayuda económica para los estudios exenta de impuestos, anteriormente. Free 2007 tax software download Reembolsos recibidos en 2013. Free 2007 tax software download   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y restando todos los reembolsos de esos gastos recibidos de la institución educativa que reúne los requisitos durante 2013. Free 2007 tax software download Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Free 2007 tax software download   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido antes de presentar su declaración de impuestos sobre los ingresos de 2013, reduzca la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Free 2007 tax software download Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Free 2007 tax software download   Si recibe un reembolso después de 2013 por gastos de estudios calificados pagados en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, puede ser que tenga que incluir parte o todo el reembolso en su ingreso bruto del año en que recibió el reembolso. Free 2007 tax software download Vea el capítulo 6 de la Publicación 970, en inglés, para más información. Free 2007 tax software download Coordinación con cuentas Coverdell de ahorros para la educación y programas calificados de matrícula. Free 2007 tax software download   Debe reducir sus gastos de estudios calificados por los gastos de estudios calificados utilizados para calcular la exclusión del ingreso bruto de (a) los intereses recibidos bajo un programa de bonos de ahorro educativos o (b) cualquier distribución desde una cuenta Coverdell de ahorros para la educación o programa calificado de matrícula (QTP, por sus siglas en inglés). Free 2007 tax software download Para un programa QTP, esto se aplica solamente a la cantidad exenta de impuestos que fueron distribuidos, no a la recuperación de contribuciones al programa. Free 2007 tax software download Cantidades que no reducen los gastos de estudios calificados. Free 2007 tax software download   No reduzca los gastos de estudios calificados por las cantidades pagadas con fondos que el estudiante ha recibido por concepto de: Pagos por prestar servicios, como salarios, Un préstamo, Un regalo, Una herencia o Un retiro de fondos de una cuenta de ahorros personal del estudiante. Free 2007 tax software download   No reduzca los gastos de estudios calificados por cantidades de becas de estudios o becas de investigación (becas de desarrollo profesional) que se declaran como ingresos en la declaración de impuestos del estudiante en las siguientes circunstancias: El uso de dinero se restringe, por los términos de la beca de estudios o beca de investigación (becas de desarrollo profesional), a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados. Free 2007 tax software download El uso de dinero no se restringe. Free 2007 tax software download Gastos que no Califican Los gastos de estudios calificados no incluyen cantidades pagadas en concepto de: Seguros; Gastos médicos (incluidas las cuotas del seguro médico escolar ofrecido por la institución); Alojamiento y comida; Transporte o Gastos personales, de manutención o relacionados a la familia que sean semejantes. Free 2007 tax software download Esto corresponde aun si se tienen que pagar dichas cantidades a la institución como requisito de matriculación o asistencia. Free 2007 tax software download Deportes, juegos, pasatiempos y cursos que no ofrecen créditos académicos. Free 2007 tax software download   Normalmente, los gastos de estudios calificados no incluyen gastos que corresponden a un curso de enseñanza u otro curso educativo en que se desempeñen deportes, juegos, pasatiempos o un curso que no ofrece créditos académicos. Free 2007 tax software download No obstante, si el curso de enseñanza u otro curso educativo es parte del programa de estudios del estudiante para obtener una licenciatura u otro título educativo reconocido, los gastos entonces sí pueden calificar. Free 2007 tax software download Cuotas íntegras o en conjunto. Free 2007 tax software download   Algunas instituciones de educación superior que reúnen los requisitos combinan o consolidan todas sus cuotas para un período académico en una sola cantidad. Free 2007 tax software download Si no recibe, o no tiene acceso a un estado de cuentas o asignación que muestra cuánto pagó usted en concepto de gastos de estudios calificados y cuánto pagó en concepto de gastos personales, como los que se mencionaron anteriormente, comuníquese con la institución. Free 2007 tax software download La institución tiene la obligación de redactar ese estado de cuentas o asignación y de proveerle a usted información sobre la cantidad que usted pagó (o que se le facturó) por los gastos de estudios calificados en el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. Free 2007 tax software download Vea el tema Cómo se Calcula la Deducción , más adelante, para mayor información sobre el Formulario 1098-T. Free 2007 tax software download Estudiante que Reúne los Requisitos Para propósitos de la deducción por matrícula y cuotas escolares, un “estudiante que reúne los requisitos” es aquél que está matriculado en uno o más cursos en una institución de educación superior que reúne los requisitos (que se definió anteriormente). Free 2007 tax software download Quién Puede Reclamar los Gastos de un Dependiente Para poder reclamar la deducción por matrícula y cuotas escolares de un dependiente, usted tiene, normalmente, que: Haber pagado los gastos y Reclamar una exención de dependiente por el estudiante. Free 2007 tax software download La Tabla 19-3 resume quién puede reclamar la deducción. Free 2007 tax software download Cuánto se Puede Deducir La cantidad máxima por concepto de matrícula y cuotas escolares para 2013 es $4,000, $2,000 o $0, dependiendo de la cantidad de su MAGI. Free 2007 tax software download Para detalles sobre el cálculo de su MAGI, vea el capítulo 6 de la Publicación 970. Free 2007 tax software download Cómo se Calcula la Deducción Calcule la deducción utilizando el Formulario 8917, Tuition and Fees Deduction (Deducción por matrícula y cuotas), en inglés. Free 2007 tax software download Para ayudarle a calcular su deducción por matrícula y cuotas escolares, debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés. Free 2007 tax software download Por lo general, una institución de educación superior que reúne los requisitos (como un colegio universitario o universidad) tiene que enviarle el Formulario 1098-T (o una declaración sustitutiva similar y aceptable) a cada estudiante matriculado para el 31 de enero de 2014. Free 2007 tax software download Para reclamar la deducción, anote la cantidad permitida en la línea 34 del Formulario 1040 o en la línea 19 del Formulario 1040A, y adjunte el Formulario 8917 que ha completado debidamente. Free 2007 tax software download Tabla 19-3. Free 2007 tax software download Quién Puede Reclamar los Gastos de un Dependiente No se base únicamente en lo que aparece en esta tabla. Free 2007 tax software download Consulte Who can claim a Dependent's Expenses (Quién puede reclamar los gastos de un dependiente), en el capítulo 6 de la Publicación 970, en inglés. Free 2007 tax software download SI su dependiente es un estudiante que reúne los requisitos y usted . Free 2007 tax software download . Free 2007 tax software download . Free 2007 tax software download Y. Free 2007 tax software download . Free 2007 tax software download . Free 2007 tax software download ENTONCES. Free 2007 tax software download . Free 2007 tax software download . Free 2007 tax software download reclama una exención por su dependiente usted paga todos los gastos de estudios calificados de su dependiente sólo usted puede deducir los gastos de estudios calificados que usted pagó. Free 2007 tax software download Su dependiente no puede tomar la deducción. Free 2007 tax software download reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Free 2007 tax software download no reclama una exención por su dependiente usted pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Free 2007 tax software download no reclama una exención por su dependiente su dependiente pagó todos los gastos de estudios calificados a nadie se le permite tomar la deducción. Free 2007 tax software download Gastos del Educador Si usted fue un educador que reúne los requisitos en el año 2013, puede deducir en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A, hasta $250 por concepto de gastos calificados que usted pagó en 2013. Free 2007 tax software download Si usted y su cónyuge están presentando una declaración de impuestos conjunta y si ambos de ustedes son educadores que reúnen los requisitos, la cantidad máxima que pueden deducir es $500. Free 2007 tax software download No obstante eso, ningún cónyuge puede deducir más de $250 en gastos calificados que él o ella ha pagado en la línea 23 del Formulario 1040 o en la línea 16 del Formulario 1040A. Free 2007 tax software download Usted quizás pueda deducir gastos que son mayores del límite de $250 (o $500) en la línea 21 del Anexo A (Formulario 1040). Free 2007 tax software download Educador que reúne los requisitos. Free 2007 tax software download   Un “educador que reúne los requisitos” es un maestro de primaria, instructor, consejero, director o ayudante, de kínder (jardín de infancia) hasta doceavo grado, que ha trabajado por lo menos 900 horas durante el año escolar. Free 2007 tax software download Gastos calificados. Free 2007 tax software download   En los gastos calificados se incluyen los gastos ordinarios (normales) y necesarios que se han pagado por libros, útiles, equipo (incluyendo equipo, programas y servicios para la computadora) y otros suministros y materiales que se utilizan en el aula. Free 2007 tax software download Un “gasto ordinario” es aquél que es común y aceptado en el campo educativo. Free 2007 tax software download Un “gasto necesario” es uno que es útil y apropiado en el desempeño de su profesión de educador. Free 2007 tax software download Un gasto no tiene que ser obligatorio para considerarse necesario. Free 2007 tax software download   Los gastos calificados no incluyen los gastos por enseñanza impartida en el hogar ni por artículos para cursos de salud o de educación física que no se usan en el desempeño del deporte. Free 2007 tax software download   Usted tiene que restar de sus gastos calificados las siguientes cantidades: Intereses de bonos de ahorros de los Estados Unidos de la serie EE y de la serie I que pueden excluirse de los ingresos y que provienen del Formulario 8815, Exclusion of Interest From Series EE and I U. Free 2007 tax software download S. Free 2007 tax software download Savings Bonds Issued After 1989 (Exclusión de los intereses provenientes de bonos de ahorros estadounidenses de las series EE e I emitidos después de 1989), en inglés. Free 2007 tax software download Vea el tema titulado Figuring the Tax-Free Amount (Cálculo de la cantidad exenta de impuestos), en el capítulo 10 de la Publicación 970, en inglés. Free 2007 tax software download Distribuciones o ganancias provenientes de un programa de matrícula calificado que no están sujetas a impuestos. Free 2007 tax software download Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 8 de la Publicación 970. Free 2007 tax software download Una distribución de ganancias no sujeta a impuestos proveniente de una cuenta Coverdell de ahorros para la educación. Free 2007 tax software download Vea el tema titulado Figuring the Taxable Portion of a Distribution (Cálculo de la parte de una distribución sujeta a impuestos), en el capítulo 7 de la Publicación 970. Free 2007 tax software download Todo reembolso de dichos gastos que haya recibido y del cual no se le haya informado en el recuadro 1 del Formulario W-2. Free 2007 tax software download Prev  Up  Next   Home   More Online Publications