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Free State And Federal E File

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Free State And Federal E File

Free state and federal e file 10. Free state and federal e file   Employees of Foreign Governments and International Organizations Table of Contents Exemption Under Tax Treaty Exemption Under U. Free state and federal e file S. Free state and federal e file Tax LawCertification. Free state and federal e file Employees of foreign governments (including foreign municipalities) have two ways to get exemption of their governmental wages from U. Free state and federal e file S. Free state and federal e file income tax: By a provision in a tax treaty or consular convention between the United States and their country, or By meeting the requirements of U. Free state and federal e file S. Free state and federal e file tax law. Free state and federal e file Employees of international organizations can exempt their wages either by a provision, if one exists, in the international agreement creating the international organization, or by meeting the requirements of U. Free state and federal e file S. Free state and federal e file tax law. Free state and federal e file The exemption discussed in this chapter applies only to pay received for services performed for a foreign government or international organization. Free state and federal e file Other U. Free state and federal e file S. Free state and federal e file income received by persons who qualify for this exemption may be fully taxable or given favorable treatment under an applicable tax treaty provision. Free state and federal e file The proper treatment of this kind of income (interest, dividends, etc. Free state and federal e file ) is discussed earlier in this publication. Free state and federal e file Exemption Under Tax Treaty If you are from a country that has a tax treaty with the United States, you should first look at the treaty to see if there is a provision that exempts your income. Free state and federal e file The income of U. Free state and federal e file S. Free state and federal e file citizens and resident aliens working for foreign governments usually is not exempt. Free state and federal e file However, in a few instances, the income of a U. Free state and federal e file S. Free state and federal e file citizen with dual citizenship may qualify. Free state and federal e file Often the exemption is limited to the income of persons who also are nationals of the foreign country involved. Free state and federal e file Exemption Under U. Free state and federal e file S. Free state and federal e file Tax Law Employees of foreign governments who do not qualify under a tax treaty provision and employees of international organizations may qualify for exemption by meeting the following requirements of U. Free state and federal e file S. Free state and federal e file tax law. Free state and federal e file The exemption under U. Free state and federal e file S. Free state and federal e file tax law applies only to current employees and not to former employees. Free state and federal e file Pensions received by former employees living in the United States do not qualify for the exemption discussed here. Free state and federal e file Employees of foreign governments. Free state and federal e file   If you are not a U. Free state and federal e file S. Free state and federal e file citizen, or if you are a U. Free state and federal e file S. Free state and federal e file citizen but also a citizen of the Philippines, and you work for a foreign government in the United States, your foreign government salary is exempt from U. Free state and federal e file S. Free state and federal e file tax if you perform services similar to those performed by U. Free state and federal e file S. Free state and federal e file government employees in that foreign country and that foreign government grants an equivalent exemption to U. Free state and federal e file S. Free state and federal e file government employees. Free state and federal e file Certification. Free state and federal e file   To qualify for the exemption under U. Free state and federal e file S. Free state and federal e file tax law, either the Department of State must certify that you perform services similar to those performed by employees of the government of the United States in foreign countries and that your foreign government employer grants an equivalent exemption to U. Free state and federal e file S. Free state and federal e file government employees performing similar services in its country or you must establish those facts. Free state and federal e file However, see Aliens who keep immigrant status , later, for a special rule that may affect your qualifying for this exemption. Free state and federal e file Employees of international organizations. Free state and federal e file   If you work for an international organization in the United States and you are not a U. Free state and federal e file S. Free state and federal e file citizen (or you are a U. Free state and federal e file S. Free state and federal e file citizen but are also a citizen of the Philippines), your salary from that organization is exempt from U. Free state and federal e file S. Free state and federal e file tax. Free state and federal e file However, see Aliens who keep immigrant status , later, for a special rule that may affect your qualifying for this exemption. Free state and federal e file   An international organization is an organization designated by the President of the United States through Executive Order to qualify for the privileges, exemptions, and immunities provided in the International Organizations Immunities Act. Free state and federal e file   You should find out if you have been made known to, and have been accepted by, the Secretary of State as an officer or an employee of that organization, or if you have been designated by the Secretary of State, before formal notification and acceptance, as a prospective officer or employee. Free state and federal e file   If you are claiming exemption, you should know the number of the Executive Order covering the international organization and should have some written evidence of your acceptance or designation by the Secretary of State. Free state and federal e file   The exemption is denied when, because the Secretary of State determines your presence in the United States is no longer desirable, you leave the United States (or after a reasonable time allowed for leaving the United States). Free state and federal e file The exemption is also denied when a foreign country does not allow similar exemptions to U. Free state and federal e file S. Free state and federal e file citizens. Free state and federal e file Then the Secretary of State can withdraw the privileges, exemptions, and immunities from the nationals of that foreign country. Free state and federal e file Aliens who keep immigrant status. Free state and federal e file   If you file the waiver provided by section 247(b) of the Immigration and Nationality Act (USCIS Form I-508) to keep your immigrant status (green card), you no longer qualify for the exemption from U. Free state and federal e file S. Free state and federal e file tax under U. Free state and federal e file S. Free state and federal e file tax law from the date of filing the waiver with the Attorney General. Free state and federal e file   However, you do not lose the exemption if you file the waiver, and meet either of the following conditions. Free state and federal e file You are exempt from U. Free state and federal e file S. Free state and federal e file tax under an income tax treaty, consular agreement, or international agreement between the United States and your foreign government employer. Free state and federal e file You work for an international organization and the international organization agreement creating the international organization provides that alien employees are exempt from U. Free state and federal e file S. Free state and federal e file income tax. Free state and federal e file Two international organizations that have such a provision are the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank). Free state and federal e file . Free state and federal e file   For more information about a specific foreign country or international organization, send an email to embassy@irs. Free state and federal e file gov. Free state and federal e file Prev  Up  Next   Home   More Online Publications
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The Free State And Federal E File

Free state and federal e file 3. Free state and federal e file   Exclusions From Gross Income Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Resident AliensForeign Earned Income and Housing Amount Nonresident AliensInterest Income Dividend Income Services Performed for Foreign Employer Gambling Winnings From Dog or Horse Racing Gain From the Sale of Your Main Home Scholarships and Fellowship GrantsExpenses that do not qualify. Free state and federal e file Introduction Resident and nonresident aliens are allowed exclusions from gross income if they meet certain conditions. Free state and federal e file An exclusion from gross income is generally income you receive that is not included in your U. Free state and federal e file S. Free state and federal e file income and is not subject to U. Free state and federal e file S. Free state and federal e file tax. Free state and federal e file This chapter covers some of the more common exclusions allowed to resident and nonresident aliens. Free state and federal e file Topics - This chapter discusses: Nontaxable interest, Nontaxable dividends, Certain compensation paid by a foreign employer, Gain from sale of home, and Scholarships and fellowship grants. Free state and federal e file Useful Items - You may want to see: Publication 54 Tax Guide for U. Free state and federal e file S. Free state and federal e file Citizens and Resident Aliens Abroad 523 Selling Your Home See chapter 12 for information about getting these publications. Free state and federal e file Resident Aliens Resident aliens may be able to exclude the following items from their gross income. Free state and federal e file Foreign Earned Income and Housing Amount If you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, you may qualify for the foreign earned income exclusion. Free state and federal e file The exclusion is $97,600 in 2013. Free state and federal e file In addition, you may be able to exclude or deduct certain foreign housing amounts. Free state and federal e file You may also qualify if you are a bona fide resident of a foreign country and you are a citizen or national of a country with which the United States has an income tax treaty. Free state and federal e file For more information, see Publication 54. Free state and federal e file Foreign country. Free state and federal e file    A foreign country is any territory under the sovereignty of a government other than that of the United States. Free state and federal e file   The term “foreign country” includes the country's territorial waters and airspace, but not international waters and the airspace above them. Free state and federal e file It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources. Free state and federal e file   The term “foreign country” does not include U. Free state and federal e file S. Free state and federal e file possessions or territories. Free state and federal e file It does not include the Antarctic region. Free state and federal e file Nonresident Aliens Nonresident aliens can exclude the following items from their gross income. Free state and federal e file Interest Income Interest income that is not connected with a U. Free state and federal e file S. Free state and federal e file trade or business is excluded from income if it is from: Deposits (including certificates of deposit) with persons in the banking business, Deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as savings and loan or similar associations under federal or state law (if the interest paid or credited can be deducted by the association), and Amounts held by an insurance company under an agreement to pay interest on them. Free state and federal e file State and local government obligations. Free state and federal e file   Interest on obligations of a state or political subdivision, the District of Columbia, or a U. Free state and federal e file S. Free state and federal e file possession, generally is not included in income. Free state and federal e file However, interest on certain private activity bonds, arbitrage bonds, and certain bonds not in registered form is included in income. Free state and federal e file Portfolio interest. Free state and federal e file   Interest and original issue discount that qualifies as portfolio interest is not subject to NRA withholding. Free state and federal e file To qualify as portfolio interest, the interest must be paid on obligations issued after July 18, 1984, and otherwise subject to NRA withholding. Free state and federal e file Note. Free state and federal e file For obligations issued after March 18, 2012, portfolio interest does not include interest paid on debt that is not in registered form. Free state and federal e file Before March 19, 2012, portfolio interest included interest on certain registered and nonregistered (bearer) bonds if the obligations meet the requirements described below. Free state and federal e file Obligations in registered form. Free state and federal e file   Portfolio interest includes interest paid on an obligation that is in registered form, and for which you have received documentation that the beneficial owner of the obligation is not a United States person. Free state and federal e file   Generally, an obligation is in registered form if: (i) the obligation is registered as to both principal and any stated interest with the issuer (or its agent) and any transfer of the obligation may be effected only by surrender of the old obligation and reissuance to the new holder; (ii) the right to principal and stated interest with respect to the obligation may be transferred only through a book entry system maintained by the issuer or its agent; or (iii) the obligation is registered as to both principal and stated interest with the issuer or its agent and can be transferred both by surrender and reissuance and through a book entry system. Free state and federal e file   An obligation that would otherwise be considered to be in registered form is not considered to be in registered form as of a particular time if it can be converted at any time in the future into an obligation that is not in registered form. Free state and federal e file For more information on whether obligations are considered to be in registered form, see Portfolio interest in Publication 515. Free state and federal e file Obligations not in registered form. Free state and federal e file    For obligations issued before March 19, 2012, interest on an obligation that is not in registered form (bearer obligation) is portfolio interest if the obligation is foreign-targeted. Free state and federal e file A bearer obligation is foreign-targeted if: There are arrangements to ensure that the obligation will be sold, or resold in connection with the original issue, only to a person who is not a United States person, Interest on the obligation is payable only outside the United States and its possessions, and The face of the obligation contains a statement that any United States person who holds the obligation will be subject to limits under the United States income tax laws. Free state and federal e file   Documentation is not required for interest on bearer obligations to qualify as portfolio interest. Free state and federal e file In some cases, however, you may need documentation for purposes of Form 1099 reporting and backup withholding. Free state and federal e file Interest that does not qualify as portfolio interest. Free state and federal e file   Payments to certain persons and payments of contingent interest do not qualify as portfolio interest. Free state and federal e file You must withhold at the statutory rate on such payments unless some other exception, such as a treaty provision, applies. Free state and federal e file Contingent interest. Free state and federal e file   Portfolio interest does not include contingent interest. Free state and federal e file Contingent interest is either of the following: Interest that is determined by reference to: Any receipts, sales, or other cash flow of the debtor or related person, Income or profits of the debtor or related person, Any change in value of any property of the debtor or a related person, or Any dividend, partnership distributions, or similar payments made by the debtor or a related person. Free state and federal e file For exceptions, see Internal Revenue Code section 871(h)(4)(C). Free state and federal e file Any other type of contingent interest that is identified by the Secretary of the Treasury in regulations. Free state and federal e file Related persons. Free state and federal e file   Related persons include the following. Free state and federal e file Members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. Free state and federal e file ), and lineal descendants (children, grandchildren, etc. Free state and federal e file ). Free state and federal e file Any person who is a party to any arrangement undertaken for the purpose of avoiding the contingent interest rules. Free state and federal e file Certain corporations, partnerships, and other entities. Free state and federal e file For details, see Nondeductible Loss in chapter 2 of Publication 544. Free state and federal e file Exception for existing debt. Free state and federal e file   Contingent interest does not include interest paid or accrued on any debt with a fixed term that was issued: On or before April 7, 1993, or After April 7, 1993, pursuant to a written binding contract in effect on that date and at all times thereafter before that debt was issued. Free state and federal e file Dividend Income The following dividend income is exempt from the 30% tax. Free state and federal e file Certain dividends paid by foreign corporations. Free state and federal e file   There is no 30% tax on U. Free state and federal e file S. Free state and federal e file source dividends you receive from a foreign corporation. Free state and federal e file See Second exception under Dividends in chapter 2 for how to figure the amount of U. Free state and federal e file S. Free state and federal e file source dividends. Free state and federal e file Certain interest-related dividends. Free state and federal e file   There is no 30% tax on interest-related dividends from sources within the United States that you receive from a mutual fund or other regulated investment company in 2013. Free state and federal e file The mutual fund will designate in writing which dividends are interest-related dividends. Free state and federal e file Certain short-term capital gain dividends. Free state and federal e file   There may not be any 30% tax on certain short-term capital gain dividends from sources within the United States that you receive from a mutual fund or other regulated investment company. Free state and federal e file The mutual fund will designate in writing which dividends are short-term capital gain dividends. Free state and federal e file This tax relief will not apply to you if you are present in the United States for 183 days or more during your tax year. Free state and federal e file Services Performed for Foreign Employer If you were paid by a foreign employer, your U. Free state and federal e file S. Free state and federal e file source income may be exempt from U. Free state and federal e file S. Free state and federal e file tax, but only if you meet one of the situations discussed next. Free state and federal e file Employees of foreign persons, organizations, or offices. Free state and federal e file   Income for personal services performed in the United States as a nonresident alien is not considered to be from U. Free state and federal e file S. Free state and federal e file sources and is tax exempt if you meet all three of the following conditions. Free state and federal e file You perform personal services as an employee of or under a contract with a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in a trade or business in the United States; or you work for an office or place of business maintained in a foreign country or possession of the United States by a U. Free state and federal e file S. Free state and federal e file corporation, a U. Free state and federal e file S. Free state and federal e file partnership, or a U. Free state and federal e file S. Free state and federal e file citizen or resident. Free state and federal e file You perform these services while you are a nonresident alien temporarily present in the United States for a period or periods of not more than a total of 90 days during the tax year. Free state and federal e file Your pay for these services is not more than $3,000. Free state and federal e file If you do not meet all three conditions, your income from personal services performed in the United States is U. Free state and federal e file S. Free state and federal e file source income and is taxed according to the rules in chapter 4. Free state and federal e file   If your pay for these services is more than $3,000, the entire amount is income from a trade or business within the United States. Free state and federal e file To find if your pay is more than $3,000, do not include any amounts you get from your employer for advances or reimbursements of business travel expenses, if you were required to and did account to your employer for those expenses. Free state and federal e file If the advances or reimbursements are more than your expenses, include the excess in your pay for these services. Free state and federal e file   A day means a calendar day during any part of which you are physically present in the United States. Free state and federal e file Example 1. Free state and federal e file During 2013, Henry Smythe, a nonresident alien from a nontreaty country, worked for an overseas office of a U. Free state and federal e file S. Free state and federal e file partnership. Free state and federal e file Henry, who uses the calendar year as his tax year, was temporarily present in the United States for 60 days during 2013 performing personal services for the overseas office of the partnership. Free state and federal e file That office paid him a total gross salary of $2,800 for those services. Free state and federal e file During 2013, he was not engaged in a trade or business in the United States. Free state and federal e file The salary is not considered U. Free state and federal e file S. Free state and federal e file source income and is exempt from U. Free state and federal e file S. Free state and federal e file tax. Free state and federal e file Example 2. Free state and federal e file The facts are the same as in Example 1, except that Henry's total gross salary for the services performed in the United States during 2013 was $4,500. Free state and federal e file He received $2,875 in 2013, and $1,625 in 2014. Free state and federal e file During 2013, he was engaged in a trade or business in the United States because the compensation for his personal services in the United States was more than $3,000. Free state and federal e file Henry's salary is U. Free state and federal e file S. Free state and federal e file source income and is taxed under the rules in chapter 4. Free state and federal e file Crew members. Free state and federal e file   Compensation for services performed by a nonresident alien in connection with the individual's temporary presence in the United States as a regular crew member of a foreign vessel (for example, a boat or ship) engaged in transportation between the United States and a foreign country or U. Free state and federal e file S. Free state and federal e file possession is not U. Free state and federal e file S. Free state and federal e file source income and is exempt from U. Free state and federal e file S. Free state and federal e file tax. Free state and federal e file This exemption does not apply to compensation for services performed on foreign aircraft. Free state and federal e file Students and exchange visitors. Free state and federal e file   Nonresident alien students and exchange visitors present in the United States under “F,” “J,” or “Q” visas can exclude from gross income pay received from a foreign employer. Free state and federal e file   This group includes bona fide students, scholars, trainees, teachers, professors, research assistants, specialists, or leaders in a field of specialized knowledge or skill, or persons of similar description. Free state and federal e file It also includes the alien's spouse and minor children if they come with the alien or come later to join the alien. Free state and federal e file   A nonresident alien temporarily present in the United States under a “J” visa includes an alien individual entering the United States as an exchange visitor under the Mutual Educational and Cultural Exchange Act of 1961. Free state and federal e file Foreign employer. Free state and federal e file   A foreign employer is: A nonresident alien individual, foreign partnership, or foreign corporation, or An office or place of business maintained in a foreign country or in a U. Free state and federal e file S. Free state and federal e file possession by a U. Free state and federal e file S. Free state and federal e file corporation, a U. Free state and federal e file S. Free state and federal e file partnership, or an individual who is a U. Free state and federal e file S. Free state and federal e file citizen or resident. Free state and federal e file   The term “foreign employer” does not include a foreign government. Free state and federal e file Pay from a foreign government that is exempt from U. Free state and federal e file S. Free state and federal e file income tax is discussed in chapter 10. Free state and federal e file Income from certain annuities. Free state and federal e file   Do not include in income any annuity received under a qualified annuity plan or from a qualified trust exempt from U. Free state and federal e file S. Free state and federal e file income tax if you meet both of the following conditions. Free state and federal e file You receive the annuity only because: You performed personal services outside the United States while you were a nonresident alien, or You performed personal services inside the United States while you were a nonresident alien and you met the three conditions, described earlier, under Employees of foreign persons, organizations, or offices . Free state and federal e file At the time the first amount is paid as an annuity under the plan (or by the trust), 90% or more of the employees for whom contributions or benefits are provided under the annuity plan (or under the plan of which the trust is a part) are U. Free state and federal e file S. Free state and federal e file citizens or residents. Free state and federal e file   If the annuity qualifies under condition (1) but not condition (2) above, you do not have to include the amount in income if: You are a resident of a country that gives a substantially equal exclusion to U. Free state and federal e file S. Free state and federal e file citizens and residents, or You are a resident of a beneficiary developing country under Title V of the Trade Act of 1974. Free state and federal e file   If you are not sure whether the annuity is from a qualified annuity plan or qualified trust, ask the person who made the payment. Free state and federal e file Income affected by treaties. Free state and federal e file   Income of any kind that is exempt from U. Free state and federal e file S. Free state and federal e file tax under a treaty to which the United States is a party is excluded from your gross income. Free state and federal e file Income on which the tax is only limited by treaty, however, is included in gross income. Free state and federal e file See chapter 9. Free state and federal e file Gambling Winnings From Dog or Horse Racing You can exclude from your gross income winnings from legal wagers initiated outside the United States in a parimutuel pool with respect to a live horse or dog race in the United States. Free state and federal e file Gain From the Sale of Your Main Home If you sold your main home, you may be able to exclude up to $250,000 of the gain on the sale of your home. Free state and federal e file If you are married and file a joint return, you may be able to exclude up to $500,000. Free state and federal e file For information on the requirements for this exclusion, see Publication 523. Free state and federal e file This exclusion does not apply to nonresident aliens who are subject to the expatriation tax rules discussed in chapter 4. Free state and federal e file Scholarships and Fellowship Grants If you are a candidate for a degree, you may be able to exclude from your income part or all of the amounts you receive as a qualified scholarship. Free state and federal e file The rules discussed here apply to both resident and nonresident aliens. Free state and federal e file If a nonresident alien receives a grant that is not from U. Free state and federal e file S. Free state and federal e file sources, it is not subject to U. Free state and federal e file S. Free state and federal e file tax. Free state and federal e file See Scholarships, Grants, Prizes, and Awards in chapter 2 to determine whether your grant is from U. Free state and federal e file S. Free state and federal e file sources. Free state and federal e file A scholarship or fellowship is excludable from income only if: You are a candidate for a degree at an eligible educational institution, and You use the scholarship or fellowship to pay qualified education expenses. Free state and federal e file Candidate for a degree. Free state and federal e file   You are a candidate for a degree if you: Attend a primary or secondary school or are pursuing a degree at a college or university, or Attend an accredited educational institution that is authorized to provide: A program that is acceptable for full credit toward a bachelor's or higher degree, or A program of training to prepare students for gainful employment in a recognized occupation. Free state and federal e file Eligible educational institution. Free state and federal e file   An eligible educational institution is one that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. Free state and federal e file Qualified education expenses. Free state and federal e file   These are expenses for: Tuition and fees required to enroll at or attend an eligible educational institution, and Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Free state and federal e file These items must be required of all students in your course of instruction. Free state and federal e file However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses. Free state and federal e file Expenses that do not qualify. Free state and federal e file   Qualified education expenses do not include the cost of: Room and board, Travel, Research, Clerical help, or Equipment and other expenses that are not required for enrollment in or attendance at an eligible educational institution. Free state and federal e file This is true even if the fee must be paid to the institution as a condition of enrollment or attendance. Free state and federal e file Scholarship or fellowship amounts used to pay these costs are taxable. Free state and federal e file Amounts used to pay expenses that do not qualify. Free state and federal e file   A scholarship amount used to pay any expense that does not qualify is taxable, even if the expense is a fee that must be paid to the institution as a condition of enrollment or attendance. Free state and federal e file Payment for services. Free state and federal e file   You cannot exclude from income the portion of any scholarship, fellowship, or tuition reduction that represents payment for past, present, or future teaching, research, or other services. Free state and federal e file This is true even if all candidates for a degree are required to perform the services as a condition for receiving the degree. Free state and federal e file Example. Free state and federal e file On January 7, Maria Gomez is notified of a scholarship of $2,500 for the spring semester. Free state and federal e file As a condition for receiving the scholarship, Maria must serve as a part-time teaching assistant. Free state and federal e file Of the $2,500 scholarship, $1,000 represents payment for her services. Free state and federal e file Assuming that Maria meets all other conditions, she can exclude no more than $1,500 from income as a qualified scholarship. Free state and federal e file Prev  Up  Next   Home   More Online Publications