File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Hr Block Free Tax File

Irs.gov Form 1040xIrs 1040ez 2012 Instructions1040ez Free Online Filing2011 Tax ReturnIrs Gov Amended ReturnState Income Tax FormsE File Tax Returns2011 Tax Tables1040ex Form 2014Free Federal Tax Filing 2011Free Tax Preparation For Low IncomeHow To Ammend A Tax ReturnFile Amended Tax ReturnTax Returns For StudentsTax Form For StudentsCan You File 1040x OnlineState Income Tax NumberHow To Amend TaxesFederal 1040ez FormEz Federal Tax Form1040 Ez Tax FormsEfile 2011 TaxPrintable 1040ez Form 20112012 Federal Tax Forms 1040ezState Taxes Online Free2012 Irs Tax Forms 1040aFree State Tax Return EfileH&r Block TaxesFile Form 1040ez1040ez 2011 Instructions2011 1040ez FormFile 2005 Taxes2011 Federal Tax Forms 1040ezIrs Income Tax Forms 2010Amended Tax1040x FillableIrs 1040ez 2010Amended Tax Return 2012Turbotax 1040ezCorporate Tax Software

Hr Block Free Tax File

Hr block free tax file 4. Hr block free tax file   Transportation Table of Contents Parking fees. Hr block free tax file Advertising display on car. Hr block free tax file Car pools. Hr block free tax file Hauling tools or instruments. Hr block free tax file Union members' trips from a union hall. Hr block free tax file Car ExpensesStandard Mileage Rate Actual Car Expenses Leasing a Car Disposition of a Car This chapter discusses expenses you can deduct for business transportation when you are not traveling away from home as defined in chapter 1. Hr block free tax file These expenses include the cost of transportation by air, rail, bus, taxi, etc. Hr block free tax file , and the cost of driving and maintaining your car. Hr block free tax file Transportation expenses include the ordinary and necessary costs of all of the following. Hr block free tax file Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Hr block free tax file Tax home is defined in chapter 1. Hr block free tax file Visiting clients or customers. Hr block free tax file Going to a business meeting away from your regular workplace. Hr block free tax file Getting from your home to a temporary workplace when you have one or more regular places of work. Hr block free tax file These temporary workplaces can be either within the area of your tax home or outside that area. Hr block free tax file Transportation expenses do not include expenses you have while traveling away from home overnight. Hr block free tax file Those expenses are travel expenses discussed in chapter 1 . Hr block free tax file However, if you use your car while traveling away from home overnight, use the rules in this chapter to figure your car expense deduction. Hr block free tax file See Car Expenses , later. Hr block free tax file Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. Hr block free tax file However, there may be exceptions to this general rule. Hr block free tax file You can deduct daily transportation expenses incurred going between your residence and a temporary work station outside the metropolitan area where you live. Hr block free tax file Also, daily transportation expenses can be deducted if: (1) you have one or more regular work locations away from your residence or (2) your residence is your principal place of business and you incur expenses going between the residence and another work location in the same trade or business, regardless of whether the work is temporary or permanent and regardless of the distance. Hr block free tax file Illustration of transportation expenses. Hr block free tax file    Figure B , earlier, illustrates the rules that apply for deducting transportation expenses when you have a regular or main job away from your home. Hr block free tax file You may want to refer to it when deciding whether you can deduct your transportation expenses. Hr block free tax file Temporary work location. Hr block free tax file   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. Hr block free tax file   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. Hr block free tax file   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. Hr block free tax file   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. Hr block free tax file It will not be treated as temporary after the date you determine it will last more than 1 year. Hr block free tax file   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. Hr block free tax file You may have deductible travel expenses as discussed in chapter 1 . Hr block free tax file No regular place of work. Hr block free tax file   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. Hr block free tax file   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. Hr block free tax file   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Hr block free tax file These are nondeductible commuting expenses. Hr block free tax file Two places of work. Hr block free tax file   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. Hr block free tax file However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. Hr block free tax file   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. Hr block free tax file You cannot deduct them. Hr block free tax file Armed Forces reservists. Hr block free tax file   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. Hr block free tax file You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work . Hr block free tax file   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. Hr block free tax file In this case, your transportation generally is a nondeductible commuting expense. Hr block free tax file However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. Hr block free tax file   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. Hr block free tax file   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Hr block free tax file These expenses are discussed in chapter 1 . Hr block free tax file   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to gross income rather than as an itemized deduction. Hr block free tax file For more information, see Armed Forces Reservists Traveling More Than 100 Miles From Home under Special Rules, in chapter 6. Hr block free tax file Commuting expenses. Hr block free tax file   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. Hr block free tax file These costs are personal commuting expenses. Hr block free tax file You cannot deduct commuting expenses no matter how far your home is from your regular place of work. Hr block free tax file You cannot deduct commuting expenses even if you work during the commuting trip. Hr block free tax file Example. Hr block free tax file You sometimes use your cell phone to make business calls while commuting to and from work. Hr block free tax file Sometimes business associates ride with you to and from work, and you have a business discussion in the car. Hr block free tax file These activities do not change the trip from personal to business. Hr block free tax file You cannot deduct your commuting expenses. Hr block free tax file Parking fees. Hr block free tax file    Fees you pay to park your car at your place of business are nondeductible commuting expenses. Hr block free tax file You can, however, deduct business-related parking fees when visiting a customer or client. Hr block free tax file Advertising display on car. Hr block free tax file   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. Hr block free tax file If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. Hr block free tax file Car pools. Hr block free tax file   You cannot deduct the cost of using your car in a nonprofit car pool. Hr block free tax file Do not include payments you receive from the passengers in your income. Hr block free tax file These payments are considered reimbursements of your expenses. Hr block free tax file However, if you operate a car pool for a profit, you must include payments from passengers in your income. Hr block free tax file You can then deduct your car expenses (using the rules in this publication). Hr block free tax file Hauling tools or instruments. Hr block free tax file   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. Hr block free tax file However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). Hr block free tax file Union members' trips from a union hall. Hr block free tax file   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. Hr block free tax file Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. Hr block free tax file Office in the home. Hr block free tax file   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. Hr block free tax file (See Publication 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business. Hr block free tax file ) Examples of deductible transportation. Hr block free tax file   The following examples show when you can deduct transportation expenses based on the location of your work and your home. Hr block free tax file Example 1. Hr block free tax file You regularly work in an office in the city where you live. Hr block free tax file Your employer sends you to a 1-week training session at a different office in the same city. Hr block free tax file You travel directly from your home to the training location and return each day. Hr block free tax file You can deduct the cost of your daily round-trip transportation between your home and the training location. Hr block free tax file Example 2. Hr block free tax file Your principal place of business is in your home. Hr block free tax file You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. Hr block free tax file Example 3. Hr block free tax file You have no regular office, and you do not have an office in your home. Hr block free tax file In this case, the location of your first business contact inside the metropolitan area is considered your office. Hr block free tax file Transportation expenses between your home and this first contact are nondeductible commuting expenses. Hr block free tax file Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. Hr block free tax file While you cannot deduct the costs of these trips, you can deduct the costs of going from one client or customer to another. Hr block free tax file Car Expenses If you use your car for business purposes, you ordinarily can deduct car expenses. Hr block free tax file You generally can use one of the two following methods to figure your deductible expenses. Hr block free tax file Standard mileage rate. Hr block free tax file Actual car expenses. Hr block free tax file If you use actual expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. Hr block free tax file See Leasing a Car , later. Hr block free tax file In this publication, “car” includes a van, pickup, or panel truck. Hr block free tax file For the definition of “car” for depreciation purposes, see Car defined under Actual Car Expenses, later. Hr block free tax file Rural mail carriers. Hr block free tax file   If you are a rural mail carrier, you may be able to treat the qualified reimbursement you received as your allowable expense. Hr block free tax file Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the reimbursement in your income. Hr block free tax file   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). Hr block free tax file You must complete Form 2106 and attach it to your Form 1040, U. Hr block free tax file S. Hr block free tax file Individual Income Tax Return. Hr block free tax file   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. Hr block free tax file It is given as an equipment maintenance allowance (EMA) to employees of the U. Hr block free tax file S. Hr block free tax file Postal Service. Hr block free tax file It is at the rate contained in the 1991 collective bargaining agreement. Hr block free tax file Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. Hr block free tax file See your employer for information on your reimbursement. Hr block free tax file    If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. Hr block free tax file Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. Hr block free tax file For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Hr block free tax file If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year. Hr block free tax file You cannot deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees. Hr block free tax file See Choosing the standard mileage rate and Standard mileage rate not allowed, later. Hr block free tax file You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. Hr block free tax file See chapter 6 for more information on reimbursements . Hr block free tax file Choosing the standard mileage rate. Hr block free tax file   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Hr block free tax file Then, in later years, you can choose to use either the standard mileage rate or actual expenses. Hr block free tax file   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. Hr block free tax file For leases that began on or before December 31, 1997, the standard mileage rate must be used for the entire portion of the lease period (including renewals) that is after 1997. Hr block free tax file   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. Hr block free tax file You cannot revoke the choice. Hr block free tax file However, in later years, you can switch from the standard mileage rate to the actual expenses method. Hr block free tax file If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. Hr block free tax file Example. Hr block free tax file Larry is an employee who occasionally uses his own car for business purposes. Hr block free tax file He purchased the car in 2011, but he did not claim any unreimbursed employee expenses on his 2011 tax return. Hr block free tax file Because Larry did not use the standard mileage rate the first year the car was available for business use, he cannot use the standard mileage rate in 2013 to claim unreimbursed employee business expenses. Hr block free tax file   For more information about depreciation included in the standard mileage rate, see Exception under Methods of depreciation, later. Hr block free tax file Standard mileage rate not allowed. Hr block free tax file   You cannot use the standard mileage rate if you: Use five or more cars at the same time (such as in fleet operations), Claimed a depreciation deduction for the car using any method other than straight line, for example, MACRS (as discussed later under Depreciation Deduction), Claimed a section 179 deduction (discussed later) on the car, Claimed the special depreciation allowance on the car, Claimed actual car expenses after 1997 for a car you leased, or Are a rural mail carrier who received a qualified reimbursement. Hr block free tax file (See Rural mail carriers , earlier. Hr block free tax file ) Note. Hr block free tax file You can elect to use the standard mileage rate if you used a car for hire (such as a taxi) unless the standard mileage rate is otherwise not allowed, as discussed above. Hr block free tax file Five or more cars. Hr block free tax file   If you own or lease five or more cars that are used for business at the same time, you cannot use the standard mileage rate for the business use of any car. Hr block free tax file However, you may be able to deduct your actual expenses for operating each of the cars in your business. Hr block free tax file See Actual Car Expenses , later, for information on how to figure your deduction. Hr block free tax file   You are not using five or more cars for business at the same time if you alternate using (use at different times) the cars for business. Hr block free tax file   The following examples illustrate the rules for when you can and cannot use the standard mileage rate for five or more cars. Hr block free tax file Example 1. Hr block free tax file Marcia, a salesperson, owns three cars and two vans that she alternates using for calling on her customers. Hr block free tax file She can use the standard mileage rate for the business mileage of the three cars and the two vans because she does not use them at the same time. Hr block free tax file Example 2. Hr block free tax file Tony and his employees use his four pickup trucks in his landscaping business. Hr block free tax file During the year, he traded in two of his old trucks for two newer ones. Hr block free tax file Tony can use the standard mileage rate for the business mileage of all six of the trucks he owned during the year. Hr block free tax file Example 3. Hr block free tax file Chris owns a repair shop and an insurance business. Hr block free tax file He and his employees use his two pickup trucks and van for the repair shop. Hr block free tax file Chris alternates using his two cars for the insurance business. Hr block free tax file No one else uses the cars for business purposes. Hr block free tax file Chris can use the standard mileage rate for the business use of the pickup trucks, van, and the cars because he never has more than four vehicles used for business at the same time. Hr block free tax file Example 4. Hr block free tax file Maureen owns a car and four vans that are used in her housecleaning business. Hr block free tax file Her employees use the vans, and she uses the car to travel to various customers. Hr block free tax file Maureen cannot use the standard mileage rate for the car or the vans. Hr block free tax file This is because all five vehicles are used in Maureen's business at the same time. Hr block free tax file She must use actual expenses for all vehicles. Hr block free tax file Interest. Hr block free tax file   If you are an employee, you cannot deduct any interest paid on a car loan. Hr block free tax file This applies even if you use the car 100% for business as an employee. Hr block free tax file   However, if you are self-employed and use your car in your business, you can deduct that part of the interest expense that represents your business use of the car. Hr block free tax file For example, if you use your car 60% for business, you can deduct 60% of the interest on Schedule C (Form 1040). Hr block free tax file You cannot deduct the part of the interest expense that represents your personal use of the car. Hr block free tax file    If you use a home equity loan to purchase your car, you may be able to deduct the interest. Hr block free tax file See Publication 936, Home Mortgage Interest Deduction, for more information. Hr block free tax file Personal property taxes. Hr block free tax file   If you itemize your deductions on Schedule A (Form 1040), you can deduct on line 7 state and local personal property taxes on motor vehicles. Hr block free tax file You can take this deduction even if you use the standard mileage rate or if you do not use the car for business. Hr block free tax file   If you are self-employed and use your car in your business, you can deduct the business part of state and local personal property taxes on motor vehicles on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040). Hr block free tax file If you itemize your deductions, you can include the remainder of your state and local personal property taxes on the car on Schedule A (Form 1040). Hr block free tax file Parking fees and tolls. Hr block free tax file   In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. Hr block free tax file (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses. Hr block free tax file ) Sale, trade-in, or other disposition. Hr block free tax file   If you sell, trade in, or otherwise dispose of your car, you may have a gain or loss on the transaction or an adjustment to the basis of your new car. Hr block free tax file See Disposition of a Car , later. Hr block free tax file Actual Car Expenses If you do not use the standard mileage rate, you may be able to deduct your actual car expenses. Hr block free tax file If you qualify to use both methods, you may want to figure your deduction both ways to see which gives you a larger deduction. Hr block free tax file Actual car expenses include: Depreciation Licenses Lease  payments Registration  fees Gas Insurance Repairs Oil Garage rent Tires Tolls Parking fees   If you have fully depreciated a car that you still use in your business, you can continue to claim your other actual car expenses. Hr block free tax file Continue to keep records, as explained later in chapter 5 . Hr block free tax file Business and personal use. Hr block free tax file   If you use your car for both business and personal purposes, you must divide your expenses between business and personal use. Hr block free tax file You can divide your expense based on the miles driven for each purpose. Hr block free tax file Example. Hr block free tax file You are a sales representative for a clothing firm and drive your car 20,000 miles during the year: 12,000 miles for business and 8,000 miles for personal use. Hr block free tax file You can claim only 60% (12,000 ÷ 20,000) of the cost of operating your car as a business expense. Hr block free tax file Employer-provided vehicle. Hr block free tax file   If you use a vehicle provided by your employer for business purposes, you can deduct your actual unreimbursed car expenses. Hr block free tax file You cannot use the standard mileage rate. Hr block free tax file See Vehicle Provided by Your Employer in chapter 6. Hr block free tax file Interest on car loans. Hr block free tax file   If you are an employee, you cannot deduct any interest paid on a car loan. Hr block free tax file This interest is treated as personal interest and is not deductible. Hr block free tax file If you are self-employed and use your car in that business, see Interest , earlier, under Standard Mileage Rate. Hr block free tax file Taxes paid on your car. Hr block free tax file   If you are an employee, you can deduct personal property taxes paid on your car if you itemize deductions. Hr block free tax file Enter the amount paid on line 7 of Schedule A (Form 1040). Hr block free tax file Sales taxes. Hr block free tax file   Generally, sales taxes on your car are part of your car's basis and are recovered through depreciation, discussed later. Hr block free tax file Fines and collateral. Hr block free tax file   You cannot deduct fines you pay or collateral you forfeit for traffic violations. Hr block free tax file Casualty and theft losses. Hr block free tax file   If your car is damaged, destroyed, or stolen, you may be able to deduct part of the loss not covered by insurance. Hr block free tax file See Publication 547, Casualties, Disasters, and Thefts, for information on deducting a loss on your car. Hr block free tax file Depreciation and section 179 deductions. Hr block free tax file   Generally, the cost of a car, plus sales tax and improvements, is a capital expense. Hr block free tax file Because the benefits last longer than 1 year, you generally cannot deduct a capital expense. Hr block free tax file However, you can recover this cost through the section 179 deduction (the deduction allowed by section 179 of the Internal Revenue Code), special depreciation allowance, and depreciation deductions. Hr block free tax file Depreciation allows you to recover the cost over more than 1 year by deducting part of it each year. Hr block free tax file The section 179 deduction , special depreciation allowance , and depreciation deductions are discussed later. Hr block free tax file   Generally, there are limits on these deductions. Hr block free tax file Special rules apply if you use your car 50% or less in your work or business. Hr block free tax file   You can claim a section 179 deduction and use a depreciation method other than straight line only if you do not use the standard mileage rate to figure your business-related car expenses in the year you first place a car in service. Hr block free tax file   If, in the year you first place a car in service, you claim either a section 179 deduction or use a depreciation method other than straight line for its estimated useful life, you cannot use the standard mileage rate on that car in any future year. Hr block free tax file Car defined. Hr block free tax file   For depreciation purposes, a car is any four-wheeled vehicle (including a truck or van) made primarily for use on public streets, roads, and highways. Hr block free tax file Its unloaded gross vehicle weight must not be more than 6,000 pounds. Hr block free tax file A car includes any part, component, or other item physically attached to it or usually included in the purchase price. Hr block free tax file   A car does not include: An ambulance, hearse, or combination ambulance-hearse used directly in a business, A vehicle used directly in the business of transporting persons or property for pay or hire, or A truck or van that is a qualified nonpersonal use vehicle. Hr block free tax file Qualified nonpersonal use vehicles. Hr block free tax file   These are vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes. Hr block free tax file They include trucks and vans that have been specially modified so that they are not likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. Hr block free tax file Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat, are qualified nonpersonal use vehicles. Hr block free tax file More information. Hr block free tax file   See Depreciation Deduction , later, for more information on how to depreciate your vehicle. Hr block free tax file Section 179 Deduction The section 179 deduction allows you to treat a portion or all of the cost of a car as a current expense. Hr block free tax file If you choose to deduct all or part of the cost as a current expense, you must reduce your depreciable basis in the car by the amount of the section 179 deduction. Hr block free tax file There is a limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars, trucks, and vans that may reduce or eliminate any benefit from claiming the section 179 deduction. Hr block free tax file See Depreciation Limits, later. Hr block free tax file You can claim the section 179 deduction only in the year you place the car in service. Hr block free tax file For this purpose, a car is placed in service when it is ready and available for a specifically assigned use, whether in a trade or business, a tax-exempt activity, a personal activity, or for the production of income. Hr block free tax file Even if you are not using the property, it is in service when it is ready and available for its specifically assigned use. Hr block free tax file A car first used for personal purposes cannot qualify for the deduction in a later year when its use changes to business. Hr block free tax file Example. Hr block free tax file In 2012, you bought a new car and used it for personal purposes. Hr block free tax file In 2013, you began to use it for business. Hr block free tax file Changing its use to business use does not qualify the cost of your car for a section 179 deduction in 2013. Hr block free tax file However, you can claim a depreciation deduction for the business use of the car starting in 2013. Hr block free tax file See Depreciation Deduction , later. Hr block free tax file More than 50% business use requirement. Hr block free tax file   You must use the property more than 50% for business to claim any section 179 deduction. Hr block free tax file If you used the property more than 50% for business, multiply the cost of the property by the percentage of business use. Hr block free tax file The result is the cost of the property that can qualify for the section 179 deduction. Hr block free tax file Example. Hr block free tax file Peter purchased a car in April 2013 for $24,500 and used it 60% for business. Hr block free tax file Based on his business usage, the total cost of Peter's car that qualifies for the section 179 deduction is $14,700 ($24,500 cost × 60% business use). Hr block free tax file But see Limit on total section 179, special depreciation allowance, and depreciation deduction , discussed later. Hr block free tax file Limits. Hr block free tax file   There are limits on: The amount of the section 179 deduction, The section 179 deduction for sport utility and certain other vehicles, and The total amount of the section 179 deduction, special depreciation allowance, and depreciation deduction (discussed later ) you can claim for a qualified property. Hr block free tax file Limit on the amount of the section 179 deduction. Hr block free tax file   For 2013, the total amount you can choose to deduct under section 179 generally cannot be more than $500,000. Hr block free tax file   If the cost of your section 179 property placed in service in 2013 is over $2,000,000, you must reduce the $500,000 dollar limit (but not below zero) by the amount of cost over $2,000,000. Hr block free tax file If the cost of your section 179 property placed in service during 2013 is $2,500,000 or more, you cannot take a section 179 deduction. Hr block free tax file   The total amount you can deduct under section 179 each year after you apply the limits listed above cannot be more than the taxable income from the active conduct of any trade or business during the year. Hr block free tax file   If you are married and file a joint return, you and your spouse are treated as one taxpayer in determining any reduction to the dollar limit, regardless of which of you purchased the property or placed it in service. Hr block free tax file   If you and your spouse file separate returns, you are treated as one taxpayer for the dollar limit. Hr block free tax file You must allocate the dollar limit (after any reduction) between you. Hr block free tax file   For more information on the above section 179 deduction limits, see Publication 946. Hr block free tax file Limit for sport utility and certain other vehicles. Hr block free tax file   For sport utility and certain other vehicles placed in service in 2013, the portion of the vehicle's cost taken into account in figuring your section 179 deduction is limited to $25,000. Hr block free tax file This rule applies to any four-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways, that is not subject to any of the passenger automobile limits explained under Depreciation Limits , later, and that is rated at no more than 14,000 pounds gross vehicle weight. Hr block free tax file However, the $25,000 limit does not apply to any vehicle: Designed to have a seating capacity of more than nine persons behind the driver's seat, Equipped with a cargo area of at least 6 feet in interior length that is an open area or is designed for use as an open area but is enclosed by a cap and is not readily accessible directly from the passenger compartment, or That has an integral enclosure, fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield. Hr block free tax file    Limit on total section 179, special depreciation allowance, and depreciation deduction. Hr block free tax file   Generally, the total amount of section 179, special depreciation allowance, and depreciation deduction you can claim for a car that is qualified property and that you placed in service in 2013 is $11,160. Hr block free tax file The limit is reduced if your business use of the car is less than 100%. Hr block free tax file See Depreciation Limits , later, for more information. Hr block free tax file Example. Hr block free tax file In the earlier example under More than 50% business use requirement, Peter had a car with a cost (for purposes of the section 179 deduction) of $14,700. Hr block free tax file However, based on Peter's business usage of his car, the total of his section 179, special depreciation allowance, and depreciation deductions is limited to $6,696 ($11,160 limit x 60% business use). Hr block free tax file Cost of car. Hr block free tax file   For purposes of the section 179 deduction, the cost of the car does not include any amount figured by reference to any other property held by you at any time. Hr block free tax file For example, if you buy (for cash and a trade-in) a new car to use in your business, your cost for purposes of the section 179 deduction does not include your adjusted basis in the car you trade in for the new car. Hr block free tax file Your cost includes only the cash you paid. Hr block free tax file Basis of car for depreciation. Hr block free tax file   The amount of the section 179 deduction reduces your basis in your car. Hr block free tax file If you choose the section 179 deduction, you must subtract the amount of the deduction from the cost of your car. Hr block free tax file The resulting amount is the basis in your car you use to figure your depreciation deduction. Hr block free tax file When to choose. Hr block free tax file   If you want to take the section 179 deduction, you must make the choice in the tax year you place the car in service for business or work. Hr block free tax file How to choose. Hr block free tax file    Employees use Form 2106 to make this choice and report the section 179 deduction. Hr block free tax file All others use Form 4562. Hr block free tax file   File the appropriate form with either of the following. Hr block free tax file Your original tax return filed for the year the property was placed in service (whether or not you file it timely). Hr block free tax file An amended return filed within the time prescribed by law. Hr block free tax file An election made on an amended return must specify the item of section 179 property to which the election applies and the part of the cost of each such item to be taken into account. Hr block free tax file The amended return must also include any resulting adjustments to taxable income. Hr block free tax file    You must keep records that show the specific identification of each piece of qualifying section 179 property. Hr block free tax file These records must show how you acquired the property, the person you acquired it from, and when you placed it in service. Hr block free tax file Revoking an election. Hr block free tax file   An election (or any specification made in the election) to take a section 179 deduction for 2013 can only be revoked with the Commissioner's approval. Hr block free tax file Recapture of section 179 deduction. Hr block free tax file   To be eligible to claim the section 179 deduction, you must use your car more than 50% for business or work in the year you acquired it. Hr block free tax file If your business use of the car is 50% or less in a later tax year during the recovery period, you have to recapture (include in income) in that later year any excess depreciation. Hr block free tax file Any section 179 deduction claimed on the car is included in calculating the excess depreciation. Hr block free tax file For information on this calculation, see Excess depreciation , later in this chapter under Car Used 50% or Less for Business. Hr block free tax file Dispositions. Hr block free tax file   If you dispose of a car on which you had claimed the section 179 deduction, the amount of that deduction is treated as a depreciation deduction for recapture purposes. Hr block free tax file You treat any gain on the disposition of the property as ordinary income up to the amount of the section 179 deduction and any allowable depreciation (unless you establish the amount actually allowed). Hr block free tax file For information on the disposition of a car, see Disposition of a Car , later. Hr block free tax file Special Depreciation Allowance You may be able to claim the special depreciation allowance for your car, truck, or van, if it is qualified property and was placed in service in 2013. Hr block free tax file The allowance is an additional depreciation deduction of 50% of the car's depreciable basis (after any section 179 deduction, but before figuring your regular depreciation deduction under MACRS). Hr block free tax file The special depreciation allowance applies only for the first year the car is placed in service. Hr block free tax file To qualify for the allowance more than 50% of the use of the car must be in a qualified business use (as defined under Depreciation Deduction, later). Hr block free tax file Combined depreciation. Hr block free tax file   Your combined section 179 deduction, special depreciation allowance, and regular MACRS depreciation deduction is limited to the maximum allowable depreciation deduction for cars of $11,160 ($3,160 if you elect not to claim the special depreciation allowance). Hr block free tax file For trucks and vans, the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). Hr block free tax file See Depreciation Limits , later in this chapter. Hr block free tax file Qualified car. Hr block free tax file   To be a qualified car (including trucks and vans), the car must meet all of the following tests. Hr block free tax file You purchased the car new on or after January 1, 2008, but only if no binding written contract to acquire the car existed before January 1, 2008, You placed the car in service in your trade or business before January 1, 2014, You used the car more than 50% in a qualified business use. Hr block free tax file Election not to claim the special depreciation allowance. Hr block free tax file   You can elect not to claim the special depreciation allowance for your car, truck, or van, that is qualified property. Hr block free tax file If you make this election, it applies to all 5-year property placed in service during the year. Hr block free tax file   To make the election, attach a statement to your timely filed return (including extensions) indicating the class of property (5-year for cars) for which you are making the election and that you are electing not to claim the special depreciation allowance for qualified property acquired on or after January 1, 2008. Hr block free tax file    Unless you elect not to claim the special depreciation allowance, you must reduce the car's adjusted basis by the amount of the allowance, even if the allowance was not claimed. Hr block free tax file Depreciation Deduction If you use actual car expenses to figure your deduction for a car you own and use in your business, you can claim a depreciation deduction. Hr block free tax file This means you can deduct a certain amount each year as a recovery of your cost or other basis in your car. Hr block free tax file You generally need to know the following things about the car you intend to depreciate. Hr block free tax file Your basis in the car. Hr block free tax file The date you place the car in service. Hr block free tax file The method of depreciation and recovery period you will use. Hr block free tax file Basis. Hr block free tax file   Your basis in a car for figuring depreciation is generally its cost. Hr block free tax file This includes any amount you borrow or pay in cash, other property, or services. Hr block free tax file   Generally, you figure depreciation on your car, truck, or van using your unadjusted basis (see Unadjusted basis , later). Hr block free tax file However, in some situations you will use your adjusted basis (your basis reduced by depreciation allowed or allowable in earlier years). Hr block free tax file For one of these situations see Exception under Methods of depreciation, later. Hr block free tax file   If you change the use of a car from personal to business, your basis for depreciation is the lesser of the fair market value or your adjusted basis in the car on the date of conversion. Hr block free tax file Additional rules concerning basis are discussed later in this chapter under Unadjusted basis . Hr block free tax file Placed in service. Hr block free tax file   You generally place a car in service when it is available for use in your work or business, in an income-producing activity, or in a personal activity. Hr block free tax file Depreciation begins when the car is placed in service for use in your work or business or for the production of income. Hr block free tax file   For purposes of computing depreciation, if you first start using the car only for personal use and later convert it to business use, you place the car in service on the date of conversion. Hr block free tax file Car placed in service and disposed of in the same year. Hr block free tax file   If you place a car in service and dispose of it in the same tax year, you cannot claim any depreciation deduction for that car. Hr block free tax file Methods of depreciation. Hr block free tax file   Generally, you figure depreciation on cars using the Modified Accelerated Cost Recovery System (MACRS). Hr block free tax file MACRS is discussed later in this chapter. Hr block free tax file Exception. Hr block free tax file   If you used the standard mileage rate in the first year of business use and change to the actual expenses method in a later year, you cannot depreciate your car under the MACRS rules. Hr block free tax file You must use straight line depreciation over the estimated remaining useful life of the car. Hr block free tax file   To figure depreciation under the straight line method, you must reduce your basis in the car (but not below zero) by a set rate per mile for all miles for which you used the standard mileage rate. Hr block free tax file The rate per mile varies depending on the year(s) you used the standard mileage rate. Hr block free tax file For the rate(s) to use, see Depreciation adjustment when you used the standard mileage rate under Disposition of a Car, later. Hr block free tax file   This reduction of basis is in addition to those basis adjustments described later under Unadjusted basis . Hr block free tax file You must use your adjusted basis in your car to figure your depreciation deduction. Hr block free tax file For additional information on the straight line method of depreciation, see Publication 946. Hr block free tax file More-than-50%-use test. Hr block free tax file   Generally, you must use your car more than 50% for qualified business use (defined next) during the year to use MACRS. Hr block free tax file You must meet this more-than-50%-use test each year of the recovery period (6 years under MACRS) for your car. Hr block free tax file   If your business use is 50% or less, you must use the straight line method to depreciate your car. Hr block free tax file This is explained later under Car Used 50% or Less for Business . Hr block free tax file Qualified business use. Hr block free tax file   A qualified business use is any use in your trade or business. Hr block free tax file It does not include use for the production of income (investment use). Hr block free tax file However, you do combine your business and investment use to compute your depreciation deduction for the tax year. Hr block free tax file Use of your car by another person. Hr block free tax file   Do not treat any use of your car by another person as use in your trade or business unless that use meets one of the following conditions. Hr block free tax file It is directly connected with your business. Hr block free tax file It is properly reported by you as income to the other person (and, if you have to, you withhold tax on the income). Hr block free tax file It results in a payment of fair market rent. Hr block free tax file This includes any payment to you for the use of your car. Hr block free tax file Business use changes. Hr block free tax file   If you used your car more than 50% in qualified business use in the year you placed it in service, but 50% or less in a later year (including the year of disposition), you have to change to the straight line method of depreciation. Hr block free tax file See Qualified business use 50% or less in a later year under Car Used 50% or Less for Business, later. Hr block free tax file    Property does not cease to be used more than 50% in qualified business use by reason of a transfer at death. Hr block free tax file Use for more than one purpose. Hr block free tax file   If you use your car for more than one purpose during the tax year, you must allocate the use to the various purposes. Hr block free tax file You do this on the basis of mileage. Hr block free tax file Figure the percentage of qualified business use by dividing the number of miles you drive your car for business purposes during the year by the total number of miles you drive the car during the year for any purpose. Hr block free tax file Change from personal to business use. Hr block free tax file   If you change the use of a car from 100% personal use to business use during the tax year, you may not have mileage records for the time before the change to business use. Hr block free tax file In this case, you figure the percentage of business use for the year as follows. Hr block free tax file Determine the percentage of business use for the period following the change. Hr block free tax file Do this by dividing business miles by total miles driven during that period. Hr block free tax file Multiply the percentage in (1) by a fraction. Hr block free tax file The numerator (top number) is the number of months the car is used for business and the denominator (bottom number) is 12. Hr block free tax file Example. Hr block free tax file You use a car only for personal purposes during the first 6 months of the year. Hr block free tax file During the last 6 months of the year, you drive the car a total of 15,000 miles of which 12,000 miles are for business. Hr block free tax file This gives you a business use percentage of 80% (12,000 ÷ 15,000) for that period. Hr block free tax file Your business use for the year is 40% (80% × 6/12). Hr block free tax file Limits. Hr block free tax file   The amount you can claim for section 179, special depreciation allowance, and depreciation deductions may be limited. Hr block free tax file The maximum amount you can claim depends on the year in which you placed your car in service. Hr block free tax file You have to reduce the maximum amount if you did not use the car exclusively for business. Hr block free tax file See Depreciation Limits , later. Hr block free tax file Unadjusted basis. Hr block free tax file   You use your unadjusted basis (often referred to as your basis or your basis for depreciation) to figure your depreciation using the MACRS depreciation chart, explained later under Modified Accelerated Cost Recovery System (MACRS) . Hr block free tax file Your unadjusted basis for figuring depreciation is your original basis increased or decreased by certain amounts. Hr block free tax file   To figure your unadjusted basis, begin with your car's original basis, which generally is its cost. Hr block free tax file Cost includes sales taxes (see Sales taxes , earlier), destination charges, and dealer preparation. Hr block free tax file Increase your basis by any substantial improvements you make to your car, such as adding air conditioning or a new engine. Hr block free tax file Decrease your basis by any section 179 deduction, special depreciation allowance, gas guzzler tax, clean-fuel vehicle deduction (for vehicles placed in service before Jan. Hr block free tax file 1, 2006), and alternative motor vehicle credit. Hr block free tax file   See Form 8910 for information on the alternative motor vehicle credit. Hr block free tax file If your business use later falls to 50% or less, you may have to recapture (include in your income) any excess depreciation. Hr block free tax file See Car Used 50% or Less for Business, later, for more information. Hr block free tax file If you acquired the car by gift or inheritance, see Publication 551, Basis of Assets, for information on your basis in the car. Hr block free tax file Improvements. Hr block free tax file   A major improvement to a car is treated as a new item of 5-year recovery property. Hr block free tax file It is treated as placed in service in the year the improvement is made. Hr block free tax file It does not matter how old the car is when the improvement is added. Hr block free tax file Follow the same steps for depreciating the improvement as you would for depreciating the original cost of the car. Hr block free tax file However, you must treat the improvement and the car as a whole when applying the limits on the depreciation deductions. Hr block free tax file Your car's depreciation deduction for the year (plus any section 179 deduction, special depreciation allowance, and depreciation on any improvements) cannot be more than the depreciation limit that applies for that year. Hr block free tax file See Depreciation Limits , later. Hr block free tax file Car trade-in. Hr block free tax file   If you traded one car (the “old car”) for another car (the “new car”) in 2013, there are two ways you can treat the transaction. Hr block free tax file You can elect to treat the transaction as a tax-free disposition of the old car and the purchase of the new car. Hr block free tax file If you make this election, you treat the old car as disposed of at the time of the trade-in. Hr block free tax file The depreciable basis of the new car is the adjusted basis of the old car (figured as if 100% of the car's use had been for business purposes) plus any additional amount you paid for the new car. Hr block free tax file You then figure your depreciation deduction for the new car beginning with the date you placed it in service. Hr block free tax file You make this election by completing Form 2106, Part II, Section D. Hr block free tax file This method is explained later, beginning at Effect of trade-in on basis . Hr block free tax file If you do not make the election described in (1), you must figure depreciation separately for the remaining basis of the old car and for any additional amount you paid for the new car. Hr block free tax file You must apply two depreciation limits (see Depreciation Limits , later). Hr block free tax file The limit that applies to the remaining basis of the old car generally is the amount that would have been allowed had you not traded in the old car. Hr block free tax file The limit that applies to the additional amount you paid for the new car generally is the limit that applies for the tax year, reduced by the depreciation allowance for the remaining basis of the old car. Hr block free tax file You must use Form 4562 to compute your depreciation deduction. Hr block free tax file You cannot use Form 2106, Part II, Section D. Hr block free tax file This method is explained in Publication 946. Hr block free tax file   If you elect to use the method described in (1), you must do so on a timely filed tax return (including extensions). Hr block free tax file Otherwise, you must use the method described in (2). Hr block free tax file Effect of trade-in on basis. Hr block free tax file   The discussion that follows applies to trade-ins of cars in 2013, where the election was made to treat the transaction as a tax-free disposition of the old car and the purchase of the new car. Hr block free tax file For information on how to figure depreciation for cars involved in a like-kind exchange (trade-in) in 2013, for which the election was not made, see Publication 946 and Regulations section 1. Hr block free tax file 168(i)-6(d)(3). Hr block free tax file Traded car used only for business. Hr block free tax file   If you trade in a car you used only in your business for another car that will be used only in your business, your original basis in the new car is your adjusted basis in the old car, plus any additional amount you pay for the new car. Hr block free tax file Example. Hr block free tax file Paul trades in a car that has an adjusted basis of $5,000 for a new car. Hr block free tax file In addition, he pays cash of $20,000 for the new car. Hr block free tax file His original basis of the new car is $25,000 (his $5,000 adjusted basis in the old car plus the $20,000 cash paid). Hr block free tax file Paul's unadjusted basis is $25,000 unless he claims the section 179 deduction, special depreciation allowance, or has other increases or decreases to his original basis, discussed under Unadjusted basis , earlier. Hr block free tax file Traded car used partly in business. Hr block free tax file   If you trade in a car you used partly in your business for a new car you will use in your business, you must make a “trade-in” adjustment for the personal use of the old car. Hr block free tax file This adjustment has the effect of reducing your basis in your old car, but not below zero, for purposes of figuring your depreciation deduction for the new car. Hr block free tax file (This adjustment is not used, however, when you determine the gain or loss on the later disposition of the new car. Hr block free tax file See Publication 544, Sales and Other Dispositions of Assets, for information on how to report the disposition of your car. Hr block free tax file )   To figure the unadjusted basis of your new car for depreciation, first add to your adjusted basis in the old car any additional amount you pay for the new car. Hr block free tax file Then subtract from that total the excess, if any, of: The total of the amounts that would have been allowable as depreciation during the tax years before the trade if 100% of the use of the car had been business and investment use, over The total of the amounts actually allowed as depreciation during those years. Hr block free tax file For information about figuring depreciation, see Modified Accelerated Cost Recovery System (MACRS) , which follows Example 2, later. Hr block free tax file Modified Accelerated Cost Recovery System (MACRS). Hr block free tax file   The Modified Accelerated Cost Recovery System (MACRS) is the name given to the tax rules for getting back (recovering) through depreciation deductions the cost of property used in a trade or business or to produce income. Hr block free tax file   The maximum amount you can deduct is limited, depending on the year you placed your car in service. Hr block free tax file See Depreciation Limits , later. Hr block free tax file Recovery period. Hr block free tax file   Under MACRS, cars are classified as 5-year property. Hr block free tax file You actually depreciate the cost of a car, truck, or van over a period of 6 calendar years. Hr block free tax file This is because your car is generally treated as placed in service in the middle of the year, and you claim depreciation for one-half of both the first year and the sixth year. Hr block free tax file Depreciation deduction for certain Indian reservation property. Hr block free tax file   Shorter recovery periods are provided under MACRS for qualified Indian reservation property placed in service on Indian reservations after 1993 and before 2014. Hr block free tax file The recovery that applies for a business-use car is 3 years instead of 5 years. Hr block free tax file However, the depreciation limits, discussed later, will still apply. Hr block free tax file   For more information on the qualifications for this shorter recovery period and the percentages to use in figuring the depreciation deduction, see chapter 4 of Publication 946. Hr block free tax file Depreciation methods. Hr block free tax file   You can use one of the following methods to depreciate your car. Hr block free tax file The 200% declining balance method (200% DB) over a 5-year recovery period that switches to the straight line method when that method provides an equal or greater deduction. Hr block free tax file The 150% declining balance method (150% DB) over a 5-year recovery period that switches to the straight line method when that method provides an equal or greater deduction. Hr block free tax file The straight line method (SL) over a 5-year recovery period. Hr block free tax file    If you use Table 4-1 (discussed later under MACRS depreciation chart) to determine your depreciation rate for 2013, you do not need to determine in what year using the straight line method provides an equal or greater deduction. Hr block free tax file This is because the chart has the switch to the straight line method built into its rates. Hr block free tax file   Before choosing a method, you may wish to consider the following facts. Hr block free tax file Using the straight line method provides equal yearly deductions throughout the recovery period. Hr block free tax file Using the declining balance methods provides greater deductions during the earlier recovery years with the deductions generally getting smaller each year. Hr block free tax file MACRS depreciation chart. Hr block free tax file   A 2013 MACRS Depreciation Chart and instructions are included in this chapter as Table 4-1 . Hr block free tax file Using this table will make it easy for you to figure the 2013 depreciation deduction for your car. Hr block free tax file A similar chart appears in the Instructions for Form 2106. Hr block free tax file    You may have to use the tables in Publication 946 instead of using this MACRS Depreciation Chart. Hr block free tax file   You must use the Depreciation Tables in Publication 946 rather than the 2013 MACRS Depreciation Chart in this publication if any one of the following four conditions applies to you. Hr block free tax file You file your return on a fiscal year basis. Hr block free tax file You file your return for a short tax year (less than 12 months). Hr block free tax file During the year, all of the following conditions apply. Hr block free tax file You placed some property in service from January through September. Hr block free tax file You placed some property in service from October through December. Hr block free tax file Your basis in the property you placed in service from October through December (excluding nonresidential real property, residential rental property, and property placed in service and disposed of in the same year) was more than 40% of your total bases in all property you placed in service during the year. Hr block free tax file   You placed qualified property in service on an Indian reservation. Hr block free tax file Depreciation in future years. Hr block free tax file   If you use the percentages from the chart, you generally must continue to use them for the entire recovery period of your car. Hr block free tax file However, you cannot continue to use the chart if your basis in your car is adjusted because of a casualty. Hr block free tax file In that case, for the year of the adjustment and the remaining recovery period, figure the depreciation without the chart using your adjusted basis in the car at the end of the year of the adjustment and over the remaining recovery period. Hr block free tax file See Figuring the Deduction Without Using the Tables in chapter 4 of Publication 946. Hr block free tax file    In future years, do not use the chart in this edition of the publication. Hr block free tax file Instead, use the chart in the publication or the form instructions for those future years. Hr block free tax file Disposition of car during recovery period. Hr block free tax file   If you dispose of the car before the end of the recovery period, you are generally allowed a half year of depreciation in the year of disposition unless you purchased the car during the last quarter of a year. Hr block free tax file See Depreciation deduction for the year of disposition under Disposition of a Car, later, for information on how to figure the depreciation allowed in the year of disposition. Hr block free tax file How to use the 2013 chart. Hr block free tax file   To figure your depreciation deduction for 2013, find the percentage in the column of Table 4-1 based on the date that you first placed the car in service and the depreciation method that you are using. Hr block free tax file Multiply the unadjusted basis of your car (defined earlier) by that percentage to determine the amount of your depreciation deduction. Hr block free tax file If you prefer to figure your depreciation deduction without the help of the chart, see Publication 946. Hr block free tax file    Your deduction cannot be more than the maximum depreciation limit for cars. Hr block free tax file See Depreciation Limits, later. Hr block free tax file Example. Hr block free tax file Phil bought a used truck in February 2012 to use exclusively in his landscape business. Hr block free tax file He paid $9,200 for the truck with no trade-in. Hr block free tax file Phil did not claim any section 179 deduction, the truck did not qualify for the special depreciation allowance, and he chose to use the 200% DB method to get the largest depreciation deduction in the early years. Hr block free tax file Phil used the MACRS depreciation chart in 2012 to find his percentage. Hr block free tax file The unadjusted basis of his truck equals its cost because Phil used it exclusively for business. Hr block free tax file He multiplied the unadjusted basis of his truck, $9,200, by the percentage that applied, 20%, to figure his 2012 depreciation deduction of $1,840. Hr block free tax file In 2013, Phil used the truck for personal purposes when he repaired his father's cabin. Hr block free tax file His records show that the business use of his truck was 90% in 2013. Hr block free tax file Phil used Table 4-1 to find his percentage. Hr block free tax file Reading down the first column for the date placed in service and across to the 200% DB column, he locates his percentage, 32%. Hr block free tax file He multiplies the unadjusted basis of his truck, $8,280 ($9,200 cost × 90% business use), by 32% to figure his 2013 depreciation deduction of $2,650. Hr block free tax file Depreciation Limits There are limits on the amount you can deduct for depreciation of your car, truck, or van. Hr block free tax file The section 179 deduction and special depreciation allowance are treated as depreciation for purposes of the limits. Hr block free tax file The maximum amount you can deduct each year depends on the year you place the car in service. Hr block free tax file These limits are shown in the following tables. Hr block free tax file   Maximum Depreciation Deduction for Cars Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2012–2013 $11,1601 $5,100 $3,050 $1,875 2010–2011 11,0602 4,900 2,950 1,775 2008–2009 10,9603 4,800 2,850 1,775 2007 3,060 4,900 2,850 1,775 2006 2,960 4,800 2,850 1,775 2005 2,960 4,700 2,850 1,675 2004 10,6103 4,800 2,850 1,675 5/06/2003– 12/31/2003 10,7104 4,900 2,950 1,775 1/01/2003– 5/05/2003 7,6605 4,900 2,950 1,775 2001–2002 7,6605 4,900 2,950 1,775 2000 3,060 4,900 2,950 1,775 1$3,160 if the car is not qualified property or if you elect not to claim the special depreciation allowance. Hr block free tax file 2$3,060 if the car is not qualified property or if you elect not to claim the special depreciation allowance. Hr block free tax file 3$2,960 if the car is not qualified property or if you elect not to claim the special depreciation allowance. Hr block free tax file 4$7,660 if you acquired the car before 5/6/2003. Hr block free tax file $3,060 if the car is not qualified property or if you elect not to claim any special depreciation allowance. Hr block free tax file 5$3,060 if you acquired the car before 9/11/2001, the car is not qualified property, or you elect not to claim the special depreciation allowance. Hr block free tax file Trucks and vans. Hr block free tax file   For 2013, the maximum depreciation deductions for trucks and vans are generally higher than those for cars. Hr block free tax file A truck or van is a passenger automobile that is classified by the manufacturer as a truck or van and rated at 6,000 pounds gross vehicle weight or less. Hr block free tax file For trucks and vans placed in service before 2003, use the Maximum Depreciation Deduction for Cars table. Hr block free tax file Maximum Depreciation Deduction for Trucks and Vans Date       4th & Placed 1st 2nd 3rd Later In Service Year Year Year Years 2013 $11,3601 $5,400 $3,250 $1,975 2012 $11,3601 $5,300 $3,150 $1,875 2011 11,2601 5,200 3,150 1,875 2010 11,1601 5,100 3,050 1,875 2009 11,0601 4,900 2,950 1,775 2008 11,1601 5,100 3,050 1,875 2007 3,260 5,200 3,050 1,875 2005–2006 3,260 5,200 3,150 1,875 2004 10,9101 5,300 3,150 1,875 2003 11,0101,2 5,400 3,250 1,975 1If the special depreciation allowance does not apply or you make the election not to claim the special depreciation allowance, the first-year limit is $3,360 for 2012 and 2013, $3,260 for 2011, $3,160 for 2010, $3,060 for 2009, $3,160 for 2008, $3,260 for 2004, and $3,360 for 2003. Hr block free tax file 2If the truck or van was acquired before 5/06/2003, the truck or van is qualified property, and you claim the special depreciation allowance for the truck or van, the maximum deduction is $7,960. Hr block free tax file Car used less than full year. Hr block free tax file   The depreciation limits are not reduced if you use a car for less than a full year. Hr block free tax file This means that you do not reduce the limit when you either place a car in service or dispose of a car during the year. Hr block free tax file However, the depreciation limits are reduced if you do not use the car exclusively for business and investment purposes. Hr block free tax file See Reduction for personal use , next. Hr block free tax file Reduction for personal use. Hr block free tax file   The depreciation limits are reduced based on your percentage of personal use. Hr block free tax file If you use a car less than 100% in your business or work, you must determine the depreciation deduction limit by multiplying the limit amount by the percentage of business and investment use during the tax year. Hr block free tax file Section 179 deduction. Hr block free tax file   The section 179 deduction is treated as a depreciation deduction. Hr block free tax file If you place a car that is not a truck or van in service in 2013, use it only for business, and choose the section 179 deduction, the special depreciation allowance, and the depreciation deduction for that car for 2013 is limited to $11,160. Hr block free tax file Example. Hr block free tax file On September 4, 2013, Jack bought a used car for $10,000 and placed it in service. Hr block free tax file He used it 80% for his business, and he chooses to take a section 179 deduction for the car. Hr block free tax file The car is not qualified property for purposes of the special depreciation allowance. Hr block free tax file Before applying the limit, Jack figures his maximum section 179 deduction to be $8,000. Hr block free tax file This is the cost of his qualifying property (up to the maximum $500,000 amount) multiplied by his business use ($10,000 × 80%). Hr block free tax file Jack then figures that his section 179 deduction for 2013 is limited to $2,528 (80% of $3,160). Hr block free tax file He then figures his unadjusted basis of $5,472 (($10,000 × 80%) − $2,528) for determining his depreciation deduction. Hr block free tax file Jack has reached his maximum depreciation deduction for 2013. Hr block free tax file For 2014, Jack will use his unadjusted basis of $5,472 to figure his depreciation deduction. Hr block free tax file Deductions in years after the recovery period. Hr block free tax file   If the depreciation deductions for your car are reduced under the passenger automobile limits (discussed earlier), you will have unrecovered basis in your car at the end of the recovery period. Hr block free tax file If you continue to use your car for business, you can deduct that unrecovered basis (subject to depreciation limits) after the recovery period ends. Hr block free tax file Unrecovered basis. Hr block free tax file   This is your cost or other basis in the car reduced by any clean-fuel vehicle deduction (for vehicles placed in service before January 1, 2006), alternative motor vehicle credit, electric vehicle credit, gas guzzler tax, and depreciation (including any special depreciation allowance , discussed earlier, unless you elect not to claim it) and section 179 deductions that would have been allowable if you had used the car 100% for business and investment use. Hr block free tax file The recovery period. Hr block free tax file   For 5-year property, your recovery period is 6 calendar years. Hr block free tax file A part year's depreciation is allowed in the first calendar year, a full year's depreciation is allowed in each of the next 4 calendar years, and a part year's depreciation is allowed in the 6th calendar year. Hr block free tax file   Under MACRS, your recovery period is the same whether you use declining balance or straight line depreciation. Hr block free tax file You determine your unrecovered basis in the 7th year after you placed the car in service. Hr block free tax file How to treat unrecovered basis. Hr block free tax file   If you continue to use your car for business after the recovery period, you can claim a depreciation deduction in each succeeding tax year until you recover your basis in the car. Hr block free tax file The maximum amount you can deduct each year is determined by the date you placed the car in service and your business-use percentage. Hr block free tax file For example, no deduction is allowed for a year you use your car 100% for personal purposes. Hr block free tax file Example. Hr block free tax file In April 2007, Bob bought and placed in service a car he used exclusively in his business. Hr block free tax file The car cost $31,500. Hr block free tax file Bob did not claim a section 179 deduction or the special depreciation allowance for the car. Hr block free tax file He continued to use the car 100% in his business throughout the recovery period (2007 through 2012). Hr block free tax file For those years, Bob used the MACRS Depreciation Chart (200% declining balance method) and the Maximum Depreciation Deduction for Cars table, earlier, for the applicable tax year to compute his depreciation deductions during the recovery period. Hr block free tax file Bob's depreciation deductions were subject to the depreciation limits so he will have unrecovered basis at the end of the recovery period as shown in the following table. Hr block free tax file      MACRS     Deprec. Hr block free tax file Year % Amount Limit Allowed 2007 20. Hr block free tax file 00 $6,300 $3,060 $ 3,060 2008 32. Hr block free tax file 00 10,080 4,900 4,900 2009 19. Hr block free tax file 20 6,048 2,850 2,850 2010 11. Hr block free tax file 52 3,629 1,775 1,775 2011 11. Hr block free tax file 52 3,629 1,775 1,775 2012 5. Hr block free tax file 76 1,814 1,775 1,775 Total $31,500   16,135 For the correct limit, see Maximum Depreciation Deduction for Cars under “Depreciation Limits,” earlier, for the maximum amount of depreciation allowed each year. Hr block free tax file   At the end of 2012, Bob had an unrecovered basis in the car of $15,365 ($31,500 – $16,135). Hr block free tax file If Bob continued to use the car 100% for business in 2013 and later years, he can claim a depreciation deduction equal to the lesser of $1,775 or his remaining unrecovered basis. Hr block free tax file   If Bob's business use of the car was less than 100% during any year, his depreciation deduction would be less than the maximum amount allowable for that year. Hr block free tax file However, in determining his unrecovered basis in the car, he would still reduce his original basis by the maximum amount allowable as if the business use had been 100%. Hr block free tax file For example, if Bob had used his car 60% for business instead of 100%, his allowable depreciation deductions would have been $9,681 ($16,135 × 60%), but he still would have to reduce his basis by $16,135 to determine his unrecovered basis. Hr block free tax file Table 4-1. Hr block free tax file 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. Hr block free tax file ) If you claim actual expenses for your car, use the chart below to find the depreciation method and percentage to use for your 2013 return for cars placed in service in 2013. Hr block free tax file   First, using the left column, find the date you first placed the car in service in 2013. Hr block free tax file Then select the depreciation method and percentage from column (a), (b), or (c) following the rules explained in this chapter. Hr block free tax file For cars placed in service before 2013, you must use the same method you used on last year's return unless a decline in your business use requires you to change to the straight line method. Hr block free tax file Refer back to the MACRS Depreciation Chart for the year you placed the car in service. Hr block free tax file (See Car Used 50% or Less for Business . Hr block free tax file )  Multiply the unadjusted basis of your car by your business use percentage. Hr block free tax file Multiply the result by the percentage you found in the chart to find the amount of your depreciation deduction for 2013. Hr block free tax file (Also see Depreciation Limits . Hr block free tax file )   If you placed your car in service after September of any year and you placed other business property in service during the same year, you may have to use the Jan. Hr block free tax file 1—Sept. Hr block free tax file 30 percentage instead of the Oct. Hr block free tax file 1—Dec. Hr block free tax file 31 percentage for your car. Hr block free tax file               To find out if this applies to you, determine: 1) the basis of all business property you placed in service after September of that year and 2) the basis of all business property you placed in service during that entire year. Hr block free tax file If the basis of the property placed in service after September is not more than 40% of the basis of all property (certain property is excluded) placed in service for the entire year, use the percentage for Jan. Hr block free tax file 1—Sept. Hr block free tax file 30 for figuring depreciation for your car. Hr block free tax file See Which Convention Applies? in chapter 4 of Publication 946 for more details. Hr block free tax file               Example. Hr block free tax file You buy machinery (basis of $32,000) in May 2013 and a new van (basis of $20,000) in October 2013, both used 100% in your business. Hr block free tax file You
Print - Click this link to Print this page

SOI Tax Stats - SOI Bulletins

Return to Tax Stats home page

SOI Bulletin (Publication 1136)

Index of SOI Bulletin Articles, by Topic

Articles and Data Releases by Year and Season

2014 Winter Spring    
2013 Winter Spring Summer Fall
2012 Winter Spring Summer Fall
2011 Winter Spring Summer Fall
2010 Winter Spring Summer Fall
2009 Winter Spring Summer Fall
2008 Winter Spring Summer Fall
2007 Winter Spring Summer Fall
2006 Winter Spring Summer Fall
2005 Winter Spring Summer Fall
2004 Winter Spring Summer Fall
2003 Winter Spring Summer Fall
2002 Winter Spring Summer Fall
2001 Winter Spring Summer Fall
2000 Winter Spring Summer Fall
1999 Winter Spring Summer Fall
1998 Winter Spring Summer Fall
1997 Winter Spring Summer Fall
1996 Winter Spring Summer Fall
1995 Winter Spring Summer Fall
1994 Winter Spring Summer Fall
1993 Winter Spring Summer Fall
1992 Winter Spring Summer Fall
1991 Winter Spring Summer Fall
1990 Winter Spring Summer Fall
1989 Winter Spring Summer Fall
1988 Winter Spring Summer Fall
1987 Winter Spring Summer Fall
1986 Winter Spring Summer Fall
1985 Winter Spring Summer Fall
1984 Winter Spring Summer Fall
1983 Winter Spring Summer Fall
1982 Winter Spring Summer Fall
1981 Winter Spring Summer Fall

Historical Tables and Appendix

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

Excel Viewer

 

View SOI's other Products, Publications, & Papers.

(Back to top)
 

Return to Tax Stats home page

Page Last Reviewed or Updated: 20-Mar-2014

The Hr Block Free Tax File

Hr block free tax file 35. Hr block free tax file   Créditos Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Gastos de Estudios CalificadosNo se Permite Beneficio Doble Ajustes a los Gastos de Estudios Calificados Introduction Para 2013, hay dos créditos tributarios para personas que paguen gastos de enseñanza superior (postsecundaria). Hr block free tax file Éstos son: El crédito tributario de oportunidad para los estadounidenses y El crédito vitalicio por aprendizaje. Hr block free tax file Este capítulo explica en términos generales estos créditos tributarios por estudios. Hr block free tax file Para obtener la información detallada que necesitará para reclamar cualquiera de los créditos, y para ver ejemplos aclaratorios, consulte los capítulos 2 y 3 de la Publicación 970, Tax Benefits for Education (Beneficios tributarios por estudios), en inglés. Hr block free tax file ¿Puede reclamar más de un crédito por estudios este año?   Puede escoger sólo uno de los créditos por cada estudiante por cada año. Hr block free tax file Por ejemplo, si reclama el crédito tributario de oportunidad para los estadounidenses por un hijo en su declaración de impuestos de 2013, no puede tomar el crédito vitalicio por aprendizaje para 2013 si se trata del mismo hijo. Hr block free tax file   Si reúne los requisitos del crédito tributario de oportunidad para los estadounidenses y también del crédito vitalicio por aprendizaje por el mismo estudiante durante el mismo año, puede reclamar sólo uno de los dos créditos, pero no ambos. Hr block free tax file   Si paga gastos de estudios calificados por más de un estudiante durante el mismo año, puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje basado por cada estudiante y por año. Hr block free tax file Esto quiere decir que, por ejemplo, puede reclamar el crédito tributario de oportunidad para los estadounidenses por un estudiante y el crédito vitalicio por aprendizaje por otro estudiante en el mismo año. Hr block free tax file    Tabla 35-1. Hr block free tax file Comparación de los Créditos Tributarios por Estudios Precaución: Puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje en la misma declaración —pero no por el mismo estudiante. Hr block free tax file   Crédito tributario de oportunidad para los estadounidenses Crédito vitalicio por aprendizaje Crédito máximo Un crédito de hasta $2,500 por cada estudiante que reúne los requisitos Un crédito de hasta $2,000 por cada declaración Límite a los ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) $180,000 si es casado que presenta una declaración conjunta;  $90,000 si es soltero, cabeza de familia o viudo que reúne los requisitos $127,000 si es casado que presenta una declaración conjunta;  $63,000 si es soltero, cabeza de familia o viudo que reúne los requisitos Reembolsable o no reembolsable El 40% del crédito podría ser reembolsable El monto del crédito está limitado al monto de impuestos que tiene que pagar sobre sus ingresos sujetos a impuestos Número de años de enseñanza postsecundaria Disponible SÓLO si el estudiante no ha completado los 4 primeros años de enseñanza postsecundaria antes de 2013 Disponible para todo año de enseñanza postsecundaria y cursos para adquirir o mejorar aptitudes en el trabajo Número de años tributarios por los cuales se ofrece el crédito Disponible SÓLO por 4 años por cada estudiante que reúna los requisitos (incluido todo año en el que se haya reclamado el crédito Hope) Disponible por un número ilimitado de años Tipo de programa académico requerido El estudiante tiene que estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado El estudiante no necesita estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado Número de cursos El estudiante tiene que estar matriculado a medio tiempo como mínimo durante al menos un período académico que haya comenzado en el transcurso del año tributario Disponible para uno o más cursos Fallo condenatorio por delito grave de drogas Si para el fin de 2013 no consta fallo condenatorio alguno al estudiante por delito grave de poseer o distribuir drogas Fallos condenatorios por delito grave de drogas no hacen que el estudiante no reúna los requisitos Gastos que reúnen los requisitos Costos de matrícula y gastos de inscripción obligatorios y todos los materiales relacionados con un curso que necesita el estudiante, tanto si son comprados o no en la institución como condición de inscripción o asistencia Costos de matrícula y gastos de inscripción obligatorios (incluidas cantidades que tienen que pagarse a la institución por textos, materiales y equipo relacionados con un curso) Pagos por períodos académicos Pagos efectuados en 2013 para períodos académicos que se iniciaron en 2013 y en los tres primeros meses de 2014 Diferencias entre el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje. Hr block free tax file   Existen varias diferencias entre estos dos créditos. Hr block free tax file Estas diferencias se resumen en la Tabla 35-1, más adelante. Hr block free tax file Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Formulario (e Instrucciones) 8863 Education Credits (American Opportunity and Lifetime Learning Credits) (Créditos tributarios por estudios (crédito tributario de oportunidad para los estadounidenses y crédito vitalicio por aprendizaje)), en inglés ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Tal vez pueda reclamar un crédito tributario por estudios si usted, su cónyuge o un dependiente reclamado en su declaración de impuestos era estudiante matriculado en, o asistió a, una institución de enseñanza superior que reúne los requisitos. Hr block free tax file Los créditos se basan en la cantidad de gastos de estudios calificados que hayan sido pagados a nombre del estudiante en 2013 por períodos académicos que comenzaron en 2013 y en los primeros tres meses de 2014. Hr block free tax file Por ejemplo, si pagó $1,500 en diciembre de 2013 por una matrícula calificada por el semestre de primavera de 2014 que comience en enero de 2014, tal vez pueda usar los $1,500 en el cálculo del (de los) crédito(s) para 2013. Hr block free tax file Período académico. Hr block free tax file   Un período académico abarca un semestre, trimestre, cuatrimestre u otro período de estudios (como un curso de escuela de verano) según lo determine de manera razonable una institución de enseñanza superior. Hr block free tax file 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 período académico. Hr block free tax file Institución de enseñanza superior que reúne los requisitos. Hr block free tax file   Una “institución de enseñanza superior que reúne los requisitos” es todo 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. Hr block free tax file Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas, sin fines de lucro y las privadas con fines de lucro. Hr block free tax file La institución de enseñanza superior debe poder indicarle si reúne los requisitos. Hr block free tax file   Determinadas instituciones de enseñanza superior ubicadas en el extranjero participan también en los programas de Federal Student Aid (Asistencia Financiera al Estudiante o FSA, por sus siglas en inglés) del Departamento de Educación de los Estados Unidos. Hr block free tax file ¿Quién puede reclamar los gastos de un dependiente?   Si una persona reclama al estudiante como dependiente y se permite una deducción por aquel estudiante en la declaración de dicha persona, se considera que esa persona ha pagado todos los gastos de estudios calificados del estudiante. Hr block free tax file Por lo tanto, sólo esa persona puede reclamar un crédito por estudios en nombre del estudiante. Hr block free tax file Si un estudiante no es reclamado como dependiente en la declaración de impuestos de otra persona, sólo el estudiante puede reclamar un crédito. Hr block free tax file Gastos pagados por un tercero. Hr block free tax file   Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Hr block free tax file Sin embargo, los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos, se tratan como si hubiesen sido pagados por usted. Hr block free tax file Por lo tanto, a usted se le trata como si hubiese pagado los gastos que fueron pagados por el tercero. Hr block free tax file Para más información y para ver un ejemplo, vea Who can Claim a Dependent's Expenses (¿Quién puede reclamar los gastos de un dependiente?) en el capítulo 2 ó 3 de la Publicación 970, en inglés. Hr block free tax file ¿Quién no puede reclamar el crédito?   No puede tomar un crédito tributario por estudios si alguna de las siguientes situaciones le corresponde: Usted es reclamado como dependiente en la declaración de impuestos de otra persona, como la de sus padres. Hr block free tax file Su estado civil para efectos de la declaración es casado que presenta una declaración por separado. Hr block free tax file Usted (o su cónyuge) fue extranjero no residente durante cualquier parte de 2013 y no optó por ser tratado como extranjero residente para fines tributarios. Hr block free tax file Sus ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) es uno de los siguientes: Crédito tributario de oportunidad para los estadounidenses: $180,000 o más si es casado que presenta la declaración conjunta, o $90,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Hr block free tax file Crédito vitalicio por aprendizaje: $127,000 o más si es casado que presenta la declaración conjunta, o $63,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Hr block free tax file   Por lo general, su MAGI es la cantidad de la línea 38 de su Formulario 1040 o la línea 22 del Formulario 1040A. Hr block free tax file No obstante, si presenta el Formulario 2555, 2555-EZ o 4563 o si excluye ingresos de fuentes dentro de Puerto Rico, sume la cantidad excluida del ingreso a la cantidad en la línea 38 de su Formulario 1040 o de la línea 22 del Formulario 1040A. Hr block free tax file Para más detalles, vea la Publicación 970, en inglés. Hr block free tax file   La Figura 35-A podría ser útil al momento de determinar si puede reclamar un crédito tributario por estudios en su declaración de impuestos. Hr block free tax file    El crédito tributario de oportunidad para los estadounidenses siempre será mayor que o igual al crédito vitalicio por aprendizaje para todo estudiante que reúna los requisitos para ambos créditos. Hr block free tax file Sin embargo, si no se cumplen todos los requisitos correspondientes al crédito tributario de oportunidad para los estadounidenses enumerados anteriormente en la Tabla 35-1, usted no puede reclamar dicho crédito en base de este estudiante. Hr block free tax file En lugar de ello, quizás podría reclamar el crédito vitalicio por aprendizaje por una parte o la totalidad de los gastos de estudios calificados de dicho estudiante. Hr block free tax file Para obtener información sobre otros beneficios relacionados con los estudios, vea la Publicación 970, en inglés. Hr block free tax file Gastos de Estudios Calificados Generalmente, se considera que los gastos de estudios calificados son cantidades pagadas en 2013 por matrícula y gastos escolares obligatorios para matricularse en un curso o asistir al mismo en una institución de enseñanza superior. Hr block free tax file No importa si los gastos fueron pagados en efectivo, por cheque, con tarjeta de crédito o débito, o con préstamos. Hr block free tax file Sólo reúnen los requisitos ciertos gastos por libros, materiales y equipos relacionados con un curso: Crédito tributario de oportunidad para los estadounidenses: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos necesarios para cursos de un programa de estudios, ya sea o no que se compren estos materiales en la institución de enseñanza como condición para matricularse o asistir a tales cursos. Hr block free tax file Crédito vitalicio por aprendizaje: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos sólo si se tienen que pagar a la institución como condición para matricularse o asistir a cursos. Hr block free tax file Los gastos de estudios calificados incluyen cuotas no académicas, tales como cuotas por actividades estudiantiles, cuotas por actividades deportivas u otros gastos no relacionados con el curso de instrucción, sólo si la cuota tiene que pagarse a la institución como condición de inscripción o asistencia. Hr block free tax file Sin embargo, las cuotas por gastos personales (descritos a continuación) nunca se consideran gastos de estudios calificados. Hr block free tax file Los gastos de estudios calificados no incluyen cantidades pagadas por: Gastos personales. Hr block free tax file Éstos incluyen gastos de alojamiento y comida, seguros, gastos médicos (incluyendo las cuotas de servicios de salud para estudiantes), transporte y otros gastos personales similares o de familia. Hr block free tax file Todo curso u otros estudios que se relacionen con deportes, juegos o pasatiempos o todo curso sin crédito académico, a menos que dicho curso o dichos estudios formen parte del programa de estudios para obtener un título del estudiante o (sólo en el caso del crédito vitalicio por aprendizaje) ayude al estudiante a adquirir o mejorar aptitudes en el trabajo. Hr block free tax file Usted debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés, de la institución que informa cualesquiera de los pagos recibidos en 2013 (encasillado 1) o las cantidades facturadas en 2013 (encasillado 2). Hr block free tax file Sin embargo, la cantidad pagada (o tratada como pagada) puede ser distinta a la cantidad en el encasillado 1 ó 2 del Formulario 1098-T. Hr block free tax file Al completar el Formulario 8863, en inglés, utilice sólo las cantidades que realmente pagó (además de cualquier otra cantidad tratada como pagada) en 2013, reducida cuando sea necesario, como se describe en Ajustes a los Gastos de Estudios Calificados , más adelante. Hr block free tax file Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Hr block free tax file Los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos se tratan como si hubiesen sido pagados por usted. Hr block free tax file Al calcular los créditos tributarios por estudios, si usted o el estudiante toman una deducción por gastos de enseñanza superior, tal como en el Anexo A o C (Formulario 1040), no pueden utilizar esos gastos como gastos de estudios calificados. Hr block free tax file Los gastos de estudios calificados para cualquier período académico tienen que ser reducidos por toda ayuda económica de estudios exenta de los impuestos asignable a dicho período académico. Hr block free tax file Vea Ajustes a los Gastos de Estudios Calificados , más adelante. Hr block free tax file Gastos pagados por adelantado. Hr block free tax file   Los gastos de estudios calificados pagados en 2013 para un período académico que comienza en los primeros tres meses de 2014 se pueden utilizar sólo en el cálculo del crédito por estudios de 2013. Hr block free tax file Vea Período académico , anteriormente. Hr block free tax file 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 del crédito por estudios sólo para 2013 (si reúne todos los otros requisitos). Hr block free tax file No puede utilizar cantidad alguna que haya pagado en 2012 ó 2014 para calcular su(s) crédito(s) tributario(s) por estudios de 2013. Hr block free tax file Gastos pagados con un préstamo. Hr block free tax file   Puede reclamar un crédito por estudios en el caso de gastos de estudios calificados que haya pagado con un préstamo. Hr block free tax file Utilice los gastos para calcular el crédito tributario por estudios correspondiente al año en que se paguen los gastos y no al año en el que se pague el préstamo. Hr block free tax file Trate los pagos del préstamo enviados directamente a la institución de enseñanza superior como si se hubiesen pagado en la fecha en que dicha institución abone los pagos a la cuenta del estudiante. Hr block free tax file Si el estudiante se retira de uno o más cursos. Hr block free tax file   Puede reclamar un crédito tributario por estudios en el caso de gastos de estudios calificados que no se le devuelvan al estudiante si el estudiante se retira de uno o más cursos. Hr block free tax file No se Permite Beneficio Doble No se permite hacer lo siguiente: Deducir gastos de enseñanza superior en su declaración de impuestos sobre los ingresos (por ejemplo, un gasto de negocio) y reclamar también un crédito por estudios basándose en dichos gastos. Hr block free tax file Reclamar más de un (1) crédito tributario por estudios basándose en los mismos gastos de estudios calificados. Hr block free tax file Reclamar un crédito por estudios basándose en los mismos gastos utilizados para calcular la parte exenta del impuesto de distribuciones de una cuenta de ahorros para estudios Coverdell (Coverdell ESA, por su abreviatura en inglés) o un programa de matrícula calificada (QTP, por sus siglas en inglés). Hr block free tax file Reclamar un crédito basándose en gastos de estudios calificados que hayan sido pagados con ayuda para estudios, tal como una beca o subvención o ayuda provista por el empleador, libres de impuestos. Hr block free tax file Vea Ajustes a los Gastos de Estudios Calificados, a continuación. Hr block free tax file Ajustes a los Gastos de Estudios Calificados Para cada estudiante, se tiene que restar los gastos de estudios calificados, pagados en 2013, por o en nombre de dicho estudiante bajo las siguientes reglas. Hr block free tax file El resultado es la cantidad ajustada en gastos de estudios calificados por cada estudiante. Hr block free tax file Ayuda económica para estudios exenta de impuestos. Hr block free tax file   Si en 2013 recibió ayuda económica para estudios que está exenta de impuestos, reste la cantidad de la ayuda económica para estudios exenta de impuestos asignable para cada período académico de la cantidad de gastos de estudios calificados para cada período académico. Hr block free tax file Vea Período académico , anteriormente. Hr block free tax file   La ayuda económica para estudios exenta de impuestos incluye: Partes no sujetas a impuestos de becas de estudios y becas de investigación (vea el capítulo 12 de esta publicación y el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de subvenciones federales Pell (vea el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de ayuda económica para estudios provista por el empleador (vea la Publicación 970, en inglés), Ayuda económica para estudios para veteranos (vea el capítulo 1 de la Publicación 970, en inglés) y Cualquier otro pago no sujeto a impuestos (libre de impuestos) (que no sean regalos ni herencias) recibido como ayuda económica para estudios. Hr block free tax file   Por lo general, toda beca de estudios o de investigación es tratada como una ayuda económica para estudios exenta de impuestos. Hr block free tax file Sin embargo, una beca de estudios o de investigación no será tratada como dicha ayuda al punto de que el estudiante la incluye como ingreso bruto (si el estudiante tiene que presentar una declaración de impuestos) para el año en que reciba la beca de estudios o de investigación y le corresponde uno de los siguientes: La beca de estudios o de investigación (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 estudios calificados), de la Publicación 970, en inglés, o La beca de estudios o de investigación (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. Hr block free tax file Podría aumentar el valor combinado del crédito tributario por estudios y cierta ayuda económica para estudios si el estudiante incluye alguna o toda ayuda económica para estudios del ingreso en el año en que recibió dicha ayuda. Hr block free tax file Para detalles, vea Adjustments of Qualified Education Expenses (Ajustes a los gastos de estudios calificados) en los capítulos 2 y 3 de la Publicación 970, en inglés. Hr block free tax file Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 podría ser tratada como un reembolso de gastos de estudios calificados que se pagaron en 2013. Hr block free tax file Esta ayuda económica para estudios exenta de impuestos es toda ayuda económica para estudios exenta de impuestos que usted o cualquier otro ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matrícula de una institución de enseñanza superior que reúne los requisitos durante 2013). Hr block free tax file Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 pero antes de que presente 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. Hr block free tax file Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 y después que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después que presenta su declaración de impuestos sobre los ingresos, más adelante. Hr block free tax file Reembolsos. Hr block free tax file   Un reembolso de gastos de estudios calificados puede reducir gastos de estudios calificados por el año tributable o puede requerir que recupere (reintegre) el crédito tributario por estudios que reclamó en un año anterior. Hr block free tax file Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Hr block free tax file Vea Ayuda económica para estudios exenta de impuestos, anteriormente. Hr block free tax file Reembolsos recibidos en 2013. Hr block free tax file   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y reste todos los reembolsos de esos gastos recibidos de la institución de enseñanza superior que reúne los requisitos durante 2013. Hr block free tax file Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Hr block free tax file   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagado en nombre de un estudiante en 2013 y el reembolso es recibido antes de que presente su declaración de impuestos sobre los ingresos de 2013, reste la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Hr block free tax file Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Hr block free tax file   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 después de presentar su declaración de impuestos sobre los ingresos de 2013, podría verse obligado a reintegrar parte o todo el crédito tributario por estudios que reclamó. Hr block free tax file Vea Recuperar (reintegrar) el crédito, a continuación. Hr block free tax file Recuperar (reintegrar) el crédito. Hr block free tax file   Si después de haber presentado su declaración de impuestos sobre los ingresos de 2013, recibe alguna ayuda económica para estudios exenta de impuestos o cualquier reembolso correspondiente a gastos de estudios calificados que haya pagado en 2013, tiene que recuperar (reintegrar) todo crédito en exceso. Hr block free tax file Cuando se vuelve a calcular la cantidad de gastos de estudios calificados ajustados de 2013, reste de dichos gastos la cantidad de la ayuda económica para estudios exenta de impuestos o el (los) reembolso(s) que haya recibido. Hr block free tax file Entonces se calcula nuevamente su(s) crédito(s) tributario(s) por estudios de 2013 y se calcula la cantidad por la cual su impuesto adeudado de 2013 hubiera aumentado si hubiese reclamado dicho(s) crédito(s) nuevamente calculado(s). Hr block free tax file Incluya esa cantidad como un impuesto adicional para el año en que la ayuda económica o el reembolso fueron recibidos. Hr block free tax file Ejemplo. Hr block free tax file   Usted pagó $8,000 por matrícula y gastos escolares de su hijo en diciembre de 2013 por el semestre de primavera que comienza en enero de 2014. Hr block free tax file Usted presentó su declaración de impuestos de 2013 el 3 de febrero de 2014 y reclamó un crédito vitalicio por aprendizaje de $1,600 ($8,000 de gastos de estudios calificados multiplicado por 0. Hr block free tax file 20). Hr block free tax file Usted no reclamó otros créditos tributarios. Hr block free tax file Después de haber presentado su declaración, su hijo se retiró de dos cursos y usted recibió un reembolso de $1,400. Hr block free tax file Tiene que volver a calcular su crédito vitalicio por aprendizaje de 2013 usando $6,600 ($1,400 del reembolso que se resta de los gastos de estudios calificados de $8,000). Hr block free tax file El crédito nuevamente calculado es $1,320 y su impuesto adeudado aumentó por $280. Hr block free tax file Tiene que incluir el resultado de $280 (lo que queda después de que haya restado $1,320 (el crédito nuevamente calculado) de $1,600 (el crédito que había reclamado originalmente)) como un impuesto adicional en su declaración de impuestos sobre los ingresos de 2014. Hr block free tax file Para determinar en dónde incluir dicho impuesto adicional, vea las instrucciones de su declaración de impuestos sobre los ingresos de 2014. Hr block free tax file    Si también paga gastos de estudios calificados en 2014 para un período académico que comienza en los primeros tres meses de 2014 y recibe ayuda económica para estudios exenta de impuestos o un reembolso como se explicó anteriormente, usted puede escoger reducir sus gastos de estudios calificados para el 2014 en vez de reducir sus gastos para 2013. Hr block free tax file Cantidades que no reducen los gastos de estudios calificados. Hr block free tax file   No reste de los gastos de estudios calificados las cantidades pagadas con fondos que el estudiante reciba como: Pagos por servicios, como salarios; Un préstamo; Un regalo; Una herencia o Un retiro de la cuenta de ahorros personal del estudiante. Hr block free tax file   No reste de los gastos de estudios calificados ninguna beca de estudios o beca de investigación reclamada como ingresos en la declaración de ingresos del estudiante en las siguientes situaciones: El uso del dinero está limitado, por los términos de la beca de estudios o de investigación, a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados, como se definen en el capítulo 1 de la Publicación 970, en inglés. Hr block free tax file El uso del dinero no está limitado. Hr block free tax file   Para ver ejemplos, consulte el capítulo 2 de la Publicación 970, en inglés. Hr block free tax file Please click here for the text description of the image. Hr block free tax file Figura 35-A ¿Puede usted reclamar el crédito por Estudios para 2013? Prev  Up  Next   Home   More Online Publications