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Hrblock Home

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Hrblock Home

Hrblock home Index , Hardest Hit Fund and Emergency Homeowners' Loan Programs. Hrblock home , Form 1098. Hrblock home , How To Report, Form 1098. Hrblock home A Acquisition debt, Fully deductible interest. Hrblock home , Home Acquisition Debt, Part of home not a qualified home. Hrblock home Alimony, Divorced or separated individuals. Hrblock home Amortization Points, General Rule Appraisal fees, Amounts charged for services. Hrblock home Armed forces Housing allowance, Ministers' and military housing allowance. Hrblock home Assistance (see Tax help) Average mortgage balance, Average Mortgage Balance B Borrowers More than one, More than one borrower. Hrblock home Seller-paid points, treatment by buyer, Treatment by buyer. Hrblock home Business Average mortgage balance, total amount of interest otherwise allowable to each activity, Line 13 Mortgage proceeds used for, Mortgage proceeds used for business or investment. Hrblock home C Clergy Ministers' and military housing allowance, Ministers' and military housing allowance. Hrblock home Cooperative housing, Cooperative apartment owner. Hrblock home , Cooperative apartment owner. Hrblock home , Special Rule for Tenant-Stockholders in Cooperative Housing Corporations, Form 1098. Hrblock home Cost of home or improvements, Cost of home or improvements. Hrblock home Credits, Mortgage interest credit. Hrblock home D Date of mortgage, Date of the mortgage. Hrblock home Debt Choice to treat as not secured by home, Choice to treat the debt as not secured by your home. Hrblock home Grandfathered, Fully deductible interest. Hrblock home , Grandfathered Debt, Line-of-credit mortgage. Hrblock home Home acquisition, Fully deductible interest. Hrblock home , Home Acquisition Debt Home equity, Fully deductible interest. Hrblock home , Home Equity Debt Home equity only (Table 1), Home equity debt only. Hrblock home Not secured by home, Debt not secured by home. Hrblock home Secured, Secured Debt Deductions, Part I. Hrblock home Home Mortgage Interest, Hardest Hit Fund and Emergency Homeowners' Loan Programs. Hrblock home Home office, Office in home. Hrblock home Mortgage insurance premiums, Claiming your deductible mortgage insurance premiums. Hrblock home Points, General Rule, Claiming your deductible points. Hrblock home Deed preparation costs, Amounts charged for services. Hrblock home Divorced taxpayers, Divorced or separated individuals. Hrblock home , Acquiring an interest in a home because of a divorce. Hrblock home E Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Programs. Hrblock home Equity debt, Fully deductible interest. Hrblock home , Home Equity Debt, Fair market value (FMV). Hrblock home Equity debt only (Table 1), Home equity debt only. Hrblock home F Fair market value (FMV), Fair market value (FMV). Hrblock home Fees Appraisal, Amounts charged for services. Hrblock home Notaries, Amounts charged for services. Hrblock home Points (see Points) Figures (see Tables and figures) Form 1040, Schedule A, How To Report, Table 2. Hrblock home Where To Deduct Your Interest Expense Form 1040, Schedule C or C-EZ, Table 2. Hrblock home Where To Deduct Your Interest Expense Form 1040, Schedule E, Table 2. Hrblock home Where To Deduct Your Interest Expense Form 1040, Schedule F, Table 2. Hrblock home Where To Deduct Your Interest Expense Form 1098, Form 1098, Mortgage Interest Statement Mortgage insurance premiums, Form 1098. Hrblock home Form 8396, Mortgage interest credit. Hrblock home Free tax services, Free help with your tax return. Hrblock home G Grandfathered debt, Fully deductible interest. Hrblock home , Grandfathered Debt, Line-of-credit mortgage. Hrblock home Ground rents, Redeemable ground rents. Hrblock home H Hardest Hit Fund Program, Hardest Hit Fund and Emergency Homeowners' Loan Programs. Hrblock home Help (see Tax help) Home, Publication 936 - Introductory Material Acquisition debt, Fully deductible interest. Hrblock home , Home Acquisition Debt Construction, Home under construction. Hrblock home Cost of, Cost of home or improvements. Hrblock home Destroyed, Home destroyed. Hrblock home Divided use, Divided use of your home. Hrblock home , Part of home not a qualified home. Hrblock home , Part of home not a qualified home. Hrblock home Equity debt, Fully deductible interest. Hrblock home , Home Equity Debt Equity debt only (Table 1), Home equity debt only. Hrblock home Fair market value, Fair market value (FMV). Hrblock home Grandfathered debt, Fully deductible interest. Hrblock home , Grandfathered Debt, Line-of-credit mortgage. Hrblock home Improvement loan, points, Home improvement loan. Hrblock home Main, Main home. Hrblock home Office in, Office in home. Hrblock home Qualified, Qualified Home Renting out part of, Renting out part of home. Hrblock home Sale of, Sale of home. Hrblock home Second, Second home. Hrblock home Time-sharing arrangements, Time-sharing arrangements. Hrblock home Housing allowance Ministers and military, Ministers' and military housing allowance. Hrblock home I Improvements Cost of, Cost of home or improvements. Hrblock home Home acquisition debt, Mortgage treated as used to buy, build, or improve home. Hrblock home Points, Home improvement loan. Hrblock home Substantial, Substantial improvement. Hrblock home Interest, Part I. Hrblock home Home Mortgage Interest (see also Mortgage interest) Interest rate method, Interest paid divided by interest rate method. Hrblock home Refunded, Refunds of interest. Hrblock home , Refunded interest. Hrblock home Where to deduct, Table 2. Hrblock home Where To Deduct Your Interest Expense Investments Average mortgage balance and total amount of interest allowable, Line 13 Mortgage proceeds used for, Mortgage proceeds invested in tax-exempt securities. Hrblock home , Mortgage proceeds used for business or investment. Hrblock home J Joint returns, Married taxpayers. Hrblock home L Lender mortgage statements, Statements provided by your lender. Hrblock home Limits Cooperative housing, mortgage interest deduction, Limits on deduction. Hrblock home Deductibility of mortgage insurance premiums, Limit on deduction. Hrblock home Deductibility of points, Limits on deduction. Hrblock home Home acquisition debt, Home acquisition debt limit. Hrblock home Home equity debt, Home equity debt limit. Hrblock home Home mortgage interest deduction, Form 1098. Hrblock home Qualified loan limit, Table 1. Hrblock home Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Hrblock home , Average Mortgage Balance Line-of-credit mortgage, Line-of-credit mortgage. Hrblock home Loans, Mortgage proceeds used for business or investment. Hrblock home , Mortgage treated as used to buy, build, or improve home. Hrblock home (see also Mortgages) Home improvement, points, Home improvement loan. Hrblock home Qualified loan limit, Table 1. Hrblock home Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Hrblock home M Main home, Main home. Hrblock home Married taxpayers, Married taxpayers. Hrblock home Military housing allowance, Ministers' and military housing allowance. Hrblock home Ministers' housing allowance, Ministers' and military housing allowance. Hrblock home Missing children, photographs of, Reminders Mixed-use mortgages, Mixed-use mortgages. Hrblock home Mortgage insurance premiums Claiming deductible, Claiming your deductible mortgage insurance premiums. Hrblock home Mortgage interest, Publication 936 - Introductory Material, Part I. Hrblock home Home Mortgage Interest Cooperative housing, Figuring deductible home mortgage interest. Hrblock home Credit, Mortgage interest credit. Hrblock home Fully deductible interest, Fully deductible interest. Hrblock home Home mortgage interest, Part I. Hrblock home Home Mortgage Interest, Hardest Hit Fund and Emergency Homeowners' Loan Programs. Hrblock home How to report, How To Report Late payment charges, Late payment charge on mortgage payment. Hrblock home Limits on deduction, Part II. Hrblock home Limits on Home Mortgage Interest Deduction Ministers' and military housing allowance, Ministers' and military housing allowance. Hrblock home Prepaid interest, Prepaid interest. Hrblock home , Prepaid interest on Form 1098. Hrblock home Prepayment penalty, Mortgage prepayment penalty. Hrblock home Refunds, Refunds of interest. Hrblock home , Refunded interest. Hrblock home Sale of home, Sale of home. Hrblock home Special situations, Special Situations Statement, Form 1098, Mortgage Interest Statement Where to deduct, Table 2. Hrblock home Where To Deduct Your Interest Expense Worksheet to figure (Table 1), Table 1. Hrblock home Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Hrblock home Mortgages Assistance payments (under sec. Hrblock home 235 of National Housing Act), Mortgage assistance payments under section 235 of the National Housing Act. Hrblock home Average balance, Average Mortgage Balance Date of, Date of the mortgage. Hrblock home Ending early, Mortgage ending early. Hrblock home Late qualifying, Mortgage that qualifies later. Hrblock home Line-of-credit, Line-of-credit mortgage. Hrblock home Mixed-use, Mixed-use mortgages. Hrblock home Preparation costs for note or deed of trust, Amounts charged for services. Hrblock home Proceeds invested in tax-exempt securities, Mortgage proceeds invested in tax-exempt securities. Hrblock home Proceeds used for business, Mortgage proceeds used for business or investment. Hrblock home Proceeds used for investment, Mortgage proceeds used for business or investment. Hrblock home Qualified loan limit, Table 1. Hrblock home Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Hrblock home , Average Mortgage Balance Refinanced, Refinancing. Hrblock home , Refinanced home acquisition debt. Hrblock home , Refinanced grandfathered debt. Hrblock home Reverse, Reverse mortgages. Hrblock home Statements provided by lender, Statements provided by your lender. Hrblock home To buy, build, or improve, Mortgage treated as used to buy, build, or improve home. Hrblock home Wraparound, Wraparound mortgage. Hrblock home N Nonredeemable ground rents, Nonredeemable ground rents. Hrblock home Notary fees, Amounts charged for services. Hrblock home O Office in home, Office in home. Hrblock home P Penalties Mortgage prepayment, Mortgage prepayment penalty. Hrblock home Points, Points, Deduction Allowed in Year Paid, Form 1098. Hrblock home Claiming deductible, Claiming your deductible points. Hrblock home Exception to general rule, Deduction Allowed in Year Paid Excess, Excess points. Hrblock home Funds provided less than, Funds provided are less than points. Hrblock home General rule, General Rule Home improvement loans, Home improvement loan. Hrblock home Seller paid, Points paid by the seller. Hrblock home Prepaid interest, Prepaid interest. Hrblock home , Prepaid interest on Form 1098. Hrblock home Prepayment penalties, Mortgage prepayment penalty. Hrblock home Publications (see Tax help) Q Qualified homes, Qualified Home Qualified loan limit Average mortgage balance, Average Mortgage Balance Worksheet to figure (Table 1), Table 1. Hrblock home Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Hrblock home R Redeemable ground rents, Redeemable ground rents. Hrblock home Refinancing, Refinancing. Hrblock home Grandfathered debt, Refinanced grandfathered debt. Hrblock home Home acquisition debt, Refinanced home acquisition debt. Hrblock home Refunds, Refunds of interest. Hrblock home , Refunded interest. Hrblock home Rent Nonredeemable ground rents, Nonredeemable ground rents. Hrblock home Redeemable ground rents, Redeemable ground rents. Hrblock home Rental payments, Rental payments. Hrblock home Renting of home Part of, Renting out part of home. Hrblock home Time-sharing arrangements, Rental of time-share. Hrblock home Repairs, Substantial improvement. Hrblock home Reverse Mortgages, Reverse mortgages. Hrblock home S Sale of home, Sale of home. Hrblock home Second home, Second home. Hrblock home , Deduction Allowed in Year Paid Secured debt, Secured Debt Seller-paid points, Points paid by the seller. Hrblock home Separate returns, Separate returns. Hrblock home Separated taxpayers, Divorced or separated individuals. Hrblock home Spouses, Married taxpayers. Hrblock home Statements provided by lender, Statements provided by your lender. Hrblock home Stock Cooperative housing, Stock used to secure debt. Hrblock home T Tables and figures Deductible home mortgage interest Fully deductible, determination of (Figure A), Fully deductible interest. Hrblock home How to figure (Table 1), Table 1. Hrblock home Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Hrblock home Mortgage to buy, build, or improve home (Figure C), Mortgage treated as used to buy, build, or improve home. Hrblock home Points (Figure B), Points Qualified loan limit worksheet (Table 1), Table 1. Hrblock home Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Hrblock home Tax credits, Mortgage interest credit. Hrblock home Tax help, How To Get Tax Help Tax-exempt securities Mortgage proceeds invested in, Mortgage proceeds invested in tax-exempt securities. Hrblock home Time-sharing arrangements, Time-sharing arrangements. Hrblock home V Valuation Fair market value, Fair market value (FMV). Hrblock home W Worksheets Deductible home mortgage interest, Table 1. Hrblock home Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Hrblock home Qualified loan limit, Table 1. Hrblock home Worksheet To Figure Your Qualified Loan Limit and Deductible Home Mortgage Interest For the Current Year See the Table 1 Instructions. Hrblock home Wraparound mortgages, Wraparound mortgage. 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The Hrblock Home

Hrblock home 19. Hrblock home   Education- Related Adjustments Table of Contents Introduction Useful Items - You may want to see: Student Loan Interest DeductionStudent Loan Interest Defined Can You Claim the Deduction How Much Can You Deduct How Do You Figure the Deduction Tuition and Fees DeductionCan You Claim the Deduction What Expenses Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses How Much Can You Deduct Educator Expenses Introduction This chapter discusses the education-related adjustment you can deduct in figuring your adjusted gross income. Hrblock home This chapter covers the student loan interest deduction, tuition and fees deduction, and the deduction for educator expenses. Hrblock home Useful Items - You may want to see: Publication 970 Tax Benefits for Education Student Loan Interest Deduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. Hrblock home However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. Hrblock home For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. Hrblock home This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. Hrblock home Table 19-1 summarizes the features of the student loan interest deduction. Hrblock home Table 19-1. Hrblock home Student Loan Interest Deduction at a Glance Do not rely on this table alone. Hrblock home Refer to the text for more details. Hrblock home Feature Description Maximum benefit You can reduce your income subject to tax by up to $2,500. Hrblock home Loan qualifications Your student loan: •  must have been taken out solely to pay qualified education expenses, and   • cannot be from a related person or made under a qualified employer plan. Hrblock home Student qualifications The student must be: • you, your spouse, or your dependent, and   • enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. Hrblock home Time limit on deduction You can deduct interest paid during the remaining period of your student loan. Hrblock home Phaseout The amount of your deduction depends on your income level. Hrblock home Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. Hrblock home It includes both required and voluntary interest payments. Hrblock home Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent (defined in chapter 3) when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period when the student is an eligible student. Hrblock home Loans from the following sources are not qualified student loans. Hrblock home A related person. Hrblock home A qualified employer plan. Hrblock home Exceptions. Hrblock home   For purposes of the student loan interest deduction, the following are exceptions to the general rules for dependents. Hrblock home An individual can be your dependent even if you are the dependent of another taxpayer. Hrblock home An individual can be your dependent even if the individual files a joint return with a spouse. Hrblock home An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). Hrblock home    Reasonable period of time. Hrblock home   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. Hrblock home   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. Hrblock home The expenses relate to a specific academic period. Hrblock home The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. Hrblock home   If neither of the above situations applies, the reasonable period of time is determined based on all the relevant facts and circumstances. Hrblock home Academic period. Hrblock home   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Hrblock home In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Hrblock home Eligible student. Hrblock home   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Hrblock home Enrolled at least half-time. Hrblock home   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. Hrblock home   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Hrblock home However, the standard may not be lower than any of those established by the U. Hrblock home S. Hrblock home Department of Education under the Higher Education Act of 1965. Hrblock home Related person. Hrblock home   You cannot deduct interest on a loan you get from a related person. Hrblock home Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. Hrblock home ), Your lineal descendants (children, grandchildren, etc. Hrblock home ), and Certain corporations, partnerships, trusts, and exempt organizations. Hrblock home Qualified employer plan. Hrblock home   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. Hrblock home Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. Hrblock home They include amounts paid for the following items. Hrblock home Tuition and fees. Hrblock home Room and board. Hrblock home Books, supplies, and equipment. Hrblock home Other necessary expenses (such as transportation). Hrblock home The cost of room and board qualifies only to the extent that it is not more than: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or If greater, the actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Hrblock home Eligible educational institution. Hrblock home   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Hrblock home S. Hrblock home Department of Education. Hrblock home It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Hrblock home   Certain educational institutions located outside the United States also participate in the U. Hrblock home S. Hrblock home Department of Education's Federal Student Aid (FSA) programs. Hrblock home   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. Hrblock home   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. Hrblock home The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. Hrblock home    The educational institution should be able to tell you if it is an eligible educational institution. Hrblock home Adjustments to qualified education expenses. Hrblock home   You must reduce your qualified education expenses by certain tax-free items (such as the tax-free part of scholarships and fellowships). Hrblock home See chapter 4 of Publication 970 for details. Hrblock home Include as Interest In addition to simple interest on the loan, certain loan origination fees, capitalized interest, interest on revolving lines of credit, and interest on refinanced student loans can be student loan interest if all other requirements are met. Hrblock home Loan origination fee. Hrblock home   In general, this is a one-time fee charged by the lender when a loan is made. Hrblock home To be deductible as interest, the fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. Hrblock home A loan origination fee treated as interest accrues over the life of the loan. Hrblock home Capitalized interest. Hrblock home    This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. Hrblock home Interest on revolving lines of credit. Hrblock home   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. Hrblock home See Qualified Education Expenses , earlier. Hrblock home Interest on refinanced student loans. Hrblock home   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. Hrblock home If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. Hrblock home Voluntary interest payments. Hrblock home   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. Hrblock home Do Not Include as Interest You cannot claim a student loan interest deduction for any of the following items. Hrblock home Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. Hrblock home Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. Hrblock home Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. Hrblock home For more information, see Student Loan Repayment Assistance in chapter 5 of Publication 970. Hrblock home Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. Hrblock home Your filing status is any filing status except married filing separately. Hrblock home No one else is claiming an exemption for you on his or her tax return. Hrblock home You are legally obligated to pay interest on a qualified student loan. Hrblock home You paid interest on a qualified student loan. Hrblock home Interest paid by others. Hrblock home   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. Hrblock home See chapter 4 of Publication 970 for more information. Hrblock home No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, home mortgage interest). Hrblock home How Much Can You Deduct Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. Hrblock home However, the amount determined above is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). Hrblock home You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). Hrblock home For details on figuring your MAGI, see chapter 4 of Publication 970. Hrblock home How Do You Figure the Deduction Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the Form 1040 or Form 1040A instructions. Hrblock home However, if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1 in chapter 4 of Publication 970. Hrblock home To help you figure your student loan interest deduction, you should receive Form 1098-E, Student Loan Interest Statement. Hrblock home Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. Hrblock home For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. Hrblock home Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. Hrblock home However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. Hrblock home For information on allocating payments between interest and principal, see chapter 4 of Publication 970. Hrblock home To claim the deduction, enter the allowable amount on Form 1040, line 33, or Form 1040A, line 18. Hrblock home Tuition and Fees Deduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). Hrblock home You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. Hrblock home The qualified expenses must be for higher education, as explained later under What Expenses Qualify . Hrblock home The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Hrblock home Table 19-2 summarizes the features of the tuition and fees deduction. Hrblock home You may be able to take a credit for your education expenses instead of a deduction. Hrblock home You can choose the one that will give you the lower tax. Hrblock home See chapter 35, Education Credits, for details about the credits. Hrblock home Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Hrblock home Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Hrblock home You paid qualified education expenses of higher education in 2013 for academic periods beginning in 2013 and those beginning in the first three months of 2014. Hrblock home You paid the education expenses for an eligible student. Hrblock home The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption (defined in chapter 3) on your tax return. Hrblock home Qualified education expenses are defined under What Expenses Qualify . Hrblock home Eligible students are defined later under Who Is an Eligible Student . Hrblock home Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Hrblock home Your filing status is married filing separately. Hrblock home Another person can claim an exemption for you as a dependent on his or her tax return. Hrblock home You cannot take the deduction even if the other person does not actually claim that exemption. Hrblock home Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Hrblock home You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. Hrblock home More information on nonresident aliens can be found in Publication 519, U. Hrblock home S. Hrblock home Tax Guide for Aliens. Hrblock home You or anyone else claims an American opportunity or lifetime learning credit in 2013 with respect to expenses of the student for whom the qualified education expenses were paid. Hrblock home However, a state tax credit will not disqualify you from claiming a tuition and fees deduction. Hrblock home Table 19-2. Hrblock home Tuition and Fees Deduction at a Glance Do not rely on this table alone. Hrblock home Refer to the text for more details. Hrblock home Question   Answer What is the maximum benefit?   You can reduce your income subject to tax by up to $4,000. Hrblock home Where is the deduction taken?   As an adjustment to income on Form 1040, line 34, or Form 1040A, line 19. Hrblock home For whom must the expenses be paid?   A student enrolled in an eligible educational institution who is either: you, your spouse, or your dependent for whom you claim an exemption. Hrblock home What tuition and fees are deductible?   Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. Hrblock home What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Hrblock home Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period (defined earlier under Student Loan Interest Deduction ) beginning in 2013 or in the first 3 months of 2014. Hrblock home Payments with borrowed funds. Hrblock home   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Hrblock home Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Hrblock home Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. Hrblock home Student withdraws from class(es). Hrblock home   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Hrblock home Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Hrblock home Eligible educational institution. Hrblock home   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Hrblock home S. Hrblock home Department of Education. Hrblock home It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Hrblock home The educational institution should be able to tell you if it is an eligible educational institution. Hrblock home   Certain educational institutions located outside the United States also participate in the U. Hrblock home S. Hrblock home Department of Education's Federal Student Aid (FSA) programs. Hrblock home Academic period. Hrblock home    An academic period is any quarter, semester, trimester, or any other period of study as reasonably determined by an eligible educational institution. Hrblock home If an eligible educational institution uses credit hours and does not have academic terms, each payment period may be treated as an academic period. Hrblock home Related expenses. Hrblock home   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses for the tuition and fees deduction only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Hrblock home Prepaid expenses. Hrblock home   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring the tuition and fees deduction. Hrblock home See Academic period, earlier. Hrblock home For example, if you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring the tuition and fees deduction for 2013 only if you meet all the other requirements. Hrblock home    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 tuition and fees deduction. Hrblock home No Double Benefit Allowed You cannot do any of the following. Hrblock home Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Hrblock home Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. Hrblock home Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Hrblock home For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Hrblock home See Figuring the Taxable Portion of a Distribution in chapter 7 (Coverdell ESA) and chapter 8 (QTP) of Publication 970. Hrblock home Deduct qualified education expenses that have been paid with tax-free interest on U. Hrblock home S. Hrblock home savings bonds (Form 8815). Hrblock home See Figuring the Tax-Free Amount in chapter 10 of Publication 970. Hrblock home Deduct qualified education expenses that have been paid with tax-free educational assistance such as a scholarship, grant, or employer-provided educational assistance. Hrblock home See Adjustments to qualified education expenses, later. Hrblock home Adjustments to qualified education expenses. Hrblock home   For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Hrblock home The result is the amount of adjusted qualified education expenses for each student. Hrblock home Tax-free educational assistance. Hrblock home   For tax-free educational assistance you received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance to that academic period. Hrblock home See Academic period, earlier. Hrblock home   This includes: The tax-free part of scholarships and fellowships, including Pell grants (see chapter 1 of Publication 970), The tax-free part of any employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Hrblock home Generally, any scholarship or fellowship you receive is treated as tax-free educational assistance. Hrblock home However, a scholarship or fellowship is not treated as tax-free educational assistance to the extent you include it in gross income (if you are required to file a tax return) for the year the scholarship or fellowship is received and either: The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. Hrblock home 970, chapter 1. Hrblock home The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. Hrblock home 970, chapter 1. Hrblock home You may be able to increase the combined value of your tuition and fees deduction and certain educational assistance if you include some or all of the educational assistance in income in the year it is received. Hrblock home For details, see Adjustments to Qualified Education Expenses in chapter 6 of Pub. Hrblock home 970. Hrblock home Some tax-free educational assistance received in 2013 may be treated as a refund of qualified education expenses paid in 2013. Hrblock home This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). Hrblock home If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed, later. Hrblock home If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed, later. Hrblock home Refunds. Hrblock home   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or may require you to include some or all of the refund in your gross income for the year the refund is received. Hrblock home See chapter 6 of Pub. Hrblock home 970 for more information. Hrblock home Some tax-free educational assistance received after 2013 may be treated as a refund. Hrblock home See Tax-free educational assistance, earlier. Hrblock home Refunds received in 2013. Hrblock home    For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses paid in 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Hrblock home Refunds received after 2013 but before your income tax return is filed. Hrblock home   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received before you file your 2013 income tax return, reduce the amount of qualified education expenses for 2013 by the amount of the refund. Hrblock home Refunds received after 2013 and after your income tax return is filed. Hrblock home   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received after you file your 2013 income tax return, you may need to include some or all of the refund in your gross income for the year the refund is received. Hrblock home See chapter 6 of Pub. Hrblock home 970 for more information. Hrblock home Coordination with Coverdell education savings accounts and qualified tuition programs. Hrblock home    Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). Hrblock home For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Hrblock home Amounts that do not reduce qualified education expenses. Hrblock home   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Hrblock home   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. Hrblock home The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses. Hrblock home The use of the money is not restricted. Hrblock home Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. Hrblock home This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Hrblock home Sports, games, hobbies, and noncredit courses. Hrblock home   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. Hrblock home However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Hrblock home Comprehensive or bundled fees. Hrblock home   Some eligible educational institutions combine all of their fees for an academic period into one amount. Hrblock home If you do not receive, or do not have access to, an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. Hrblock home The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T, Tuition Statement. Hrblock home See How Do You Figure the Deduction , later, for more information about Form 1098-T. Hrblock home Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (defined earlier). Hrblock home Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. Hrblock home Table 19-3 summarizes who can claim the deduction. Hrblock home How Much Can You Deduct The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. Hrblock home For details on figuring your MAGI, see chapter 6 of Publication 970. Hrblock home How Do You Figure the Deduction Figure the deduction using Form 8917. Hrblock home To help you figure your tuition and fees deduction, you should receive Form 1098-T, Tuition Statement. Hrblock home Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. Hrblock home To claim the deduction, enter the allowable amount on Form 1040, line 34, or Form 1040A, line 19, and attach your completed Form 8917. Hrblock home Table 19-3. Hrblock home Who Can Claim a Dependent's Expenses Do not rely on this table alone. Hrblock home See Who Can Claim a Dependent's Expenses in chapter 6 of Publication 970. Hrblock home IF your dependent is an eligible student and you. Hrblock home . Hrblock home . Hrblock home AND. Hrblock home . Hrblock home . Hrblock home THEN. Hrblock home . Hrblock home . Hrblock home claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. Hrblock home Your dependent cannot take a deduction. Hrblock home claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Hrblock home do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Hrblock home do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Hrblock home Educator Expenses If you were an eligible educator in 2013, you can deduct on Form 1040, line 23, or Form 1040A, line 16, up to $250 of qualified expenses you paid in 2013. Hrblock home If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Hrblock home However, neither spouse can deduct more than $250 of his or her qualified expenses on Form 1040, line 23, or Form 1040A, line 16. Hrblock home You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A (Form 1040), line 21. Hrblock home Eligible educator. Hrblock home   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year. Hrblock home Qualified expenses. Hrblock home   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Hrblock home An ordinary expense is one that is common and accepted in your educational field. Hrblock home A necessary expense is one that is helpful and appropriate for your profession as an educator. Hrblock home An expense does not have to be required to be considered necessary. Hrblock home   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Hrblock home   You must reduce your qualified expenses by the following amounts. Hrblock home Excludable U. Hrblock home S. Hrblock home series EE and I savings bond interest from Form 8815. Hrblock home See Figuring the Tax-Free Amount in chapter 10 of Publication 970. Hrblock home Nontaxable qualified tuition program earnings or distributions. Hrblock home See Figuring the Taxable Portion of a Distribution in chapter 8 of Publication 970. Hrblock home Nontaxable distribution of earnings from a Coverdell education savings account. Hrblock home See Figuring the Taxable Portion of a Distribution in chapter 7 of Publication 970. Hrblock home Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2. Hrblock home Prev  Up  Next   Home   More Online Publications