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

Printable 2011 Tax Forms

Irs 1040ez2011 Irs Forms And PublicationsH&r Block Free FileCan I File My Back Taxes Online FreeIrs Tax FormsIrs Ez FormsHow To File An Amended Tax Return For 2013Amended Federal Income Tax Return2010 TaxactFile 1040nr OnlineTaxact 2012 Return UserDownload 1040xH&r Block Free State FilingAmended Return FormHow Can I File My 2012 Taxes LateHow To Amend 2012 Federal Tax ReturnAmend 2011 Tax Return OnlineFree Tax Preparation For MilitaryHow To File Late Tax ReturnsIrs 1040ez InstructionsFiling Late Taxes For 2011Us Military Taxes2010 Tax DeadlineAmend Turbotax Return1040 NowOnline 1040nr1040ez Tax Table 2010Income Tax Forms 2012Tax Planning Us 1040ez1040ez 2012Efile For Free State And FederalWww Taxact Com 2011How To Efile 2011 TaxesIrs Tax Forms For 2012Tax Software For 1040nr2010 1040 EzTaxact 2011 Login Tax ReturnFederal Tax Forms 2007Free Federal Tax Filing 20111040ez

Printable 2011 Tax Forms

Printable 2011 tax forms Publication 939 - Introductory Material Table of Contents What's New Future developments. Printable 2011 tax forms IntroductionSimplified Method. Printable 2011 tax forms Ordering forms and publications. Printable 2011 tax forms Tax questions. Printable 2011 tax forms Useful Items - You may want to see: What's New Beginning in 2013, distributions from an annuity under a nonqualified plan are considered net investment income for the purpose of figuring the net investment income tax (NIIT). Printable 2011 tax forms For more information, see the instructions for Form 8960, Net Investment Income Tax – Individuals, Estates and Trusts. Printable 2011 tax forms Future developments. Printable 2011 tax forms For the latest information about developments related to Publication 939, such as legislation enacted after it was published, go to www. Printable 2011 tax forms IRS. Printable 2011 tax forms gov/pub939. Printable 2011 tax forms Introduction This publication gives you the information you need to determine the tax treatment of your pension and annuity income under the General Rule. Printable 2011 tax forms Generally, each of your monthly annuity payments is made up of two parts: the tax-free part that is a return of your net cost, and the taxable balance. Printable 2011 tax forms What is the General Rule. Printable 2011 tax forms   The General Rule is one of the two methods used to figure the tax-free part of each annuity payment based on the ratio of your investment in the contract to the total expected return. Printable 2011 tax forms The other method is the Simplified Method, which is discussed in Publication 575, Pension and Annuity Income. Printable 2011 tax forms Who must use the General Rule. Printable 2011 tax forms   Use this publication if you receive pension or annuity payments from: A nonqualified plan (for example, a private annuity, a purchased commercial annuity, or a nonqualified employee plan), A qualified plan if: Your annuity starting date is before November 19, 1996 (and after July 1, 1986), and you do not qualify to use, or did not choose to use, the Simplified Method, or Your annuity starting date is after November 18, 1996, and as of that date you are age 75 or over and the annuity payments are guaranteed for at least 5 years. Printable 2011 tax forms If your annuity starting date was between July 1, 1986 and November 19, 1996, you were able to elect to use the Simplified Method or the General Rule. Printable 2011 tax forms This choice is irrevocable and applied to all later annuity payments. Printable 2011 tax forms The following are qualified plans. Printable 2011 tax forms A qualified employee plan. Printable 2011 tax forms A qualified employee annuity. Printable 2011 tax forms A tax-sheltered annuity (TSA) plan or contract. Printable 2011 tax forms Simplified Method. Printable 2011 tax forms   If you receive pension or annuity payments from a qualified plan and you are not required to use the General Rule, you must use the Simplified Method to determine the tax-free part of each annuity payment. Printable 2011 tax forms This method is described in Publication 575, Pension and Annuity Income. Printable 2011 tax forms   Also, if, at the time the annuity payments began, you were at least age 75 and were entitled to annuity payments from a qualified plan with fewer than 5 years of guaranteed payments, you must use the Simplified Method. Printable 2011 tax forms Beginning in 2013, distributions from an annuity under a nonqualified plan are considered net investment income for the purpose of figuring the net investment income tax (NIIT). Printable 2011 tax forms For more information, see the instructions for Form 8960, Net Investment Income Tax – Individuals, Estates and Trusts. Printable 2011 tax forms Topics not covered in this publication. Printable 2011 tax forms   Certain topics related to pensions and annuities are not covered in this publication. Printable 2011 tax forms They include: Simplified Method. Printable 2011 tax forms This method is covered in Publication 575. Printable 2011 tax forms That publication also covers nonperiodic payments (amounts not received as an annuity) from a qualified pension or annuity plan, rollovers, special averaging and capital gain treatment of lump-sum distributions, and special additional taxes on early distributions, excess distributions, and excess accumulations (not making required minimum distributions). Printable 2011 tax forms Individual retirement arrangements (IRAs). Printable 2011 tax forms Information on the tax treatment of amounts you receive from an IRA is included in Publication 590, Individual Retirement Arrangements (IRAs). Printable 2011 tax forms Life insurance payments. Printable 2011 tax forms If you receive life insurance payments because of the death of the insured person, get Publication 525, Taxable and Nontaxable Income, for information on the tax treatment of the proceeds. Printable 2011 tax forms Help from IRS. Printable 2011 tax forms   If, after reading this publication, you need help to figure the taxable part of your pension or annuity, the IRS can do it for you for a fee. Printable 2011 tax forms For information on this service, see Requesting a Ruling on Taxation of Annuity , later. Printable 2011 tax forms Comments and suggestions. Printable 2011 tax forms   We welcome your comments about this publication and your suggestions for future editions. Printable 2011 tax forms   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Printable 2011 tax forms NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Printable 2011 tax forms Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Printable 2011 tax forms   You can send your comments from www. Printable 2011 tax forms irs. Printable 2011 tax forms gov/formspubs/. Printable 2011 tax forms Click on “More Information” and then on “Comment on Tax Forms and Publications”. Printable 2011 tax forms   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Printable 2011 tax forms Ordering forms and publications. Printable 2011 tax forms   Visit www. Printable 2011 tax forms irs. Printable 2011 tax forms gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Printable 2011 tax forms Internal Revenue Service 1201 N. Printable 2011 tax forms Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Printable 2011 tax forms   If you have a tax question, check the information available on IRS. Printable 2011 tax forms gov or call 1-800-829-1040. Printable 2011 tax forms We cannot answer tax questions sent to either of the above addresses. Printable 2011 tax forms Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 525 Taxable and Nontaxable Income 571 Tax-Sheltered Annuity Plans (403(b) Plans) 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 721 Tax Guide to U. Printable 2011 tax forms S. Printable 2011 tax forms Civil Service Retirement Benefits 910 Guide To Free Tax Services Form (and Instructions) 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Printable 2011 tax forms See How To Get Tax Help near the end of this publication for information about getting these publications and forms. Printable 2011 tax forms Prev  Up  Next   Home   More Online Publications
Español

Department of Homeland Security (DHS)

Formed in 2002 from the combination of 22 departments and agencies, the Department of Homeland Security works to improve the security of the United States. The Department's work includes customs, border, and immigration enforcement; emergency response to natural and manmade disasters; antiterrorism work; and cybersecurity.

The Printable 2011 Tax Forms

Printable 2011 tax forms 2. Printable 2011 tax forms   American Opportunity Credit Table of Contents Introduction Can You Claim the CreditWho Can Claim the Credit Who Cannot Claim the Credit What Expenses QualifyQualified Education Expenses No Double Benefit Allowed Expenses That Do Not Qualify Who Is an Eligible StudentException. Printable 2011 tax forms Who Can Claim a Dependent's Expenses Figuring the CreditEffect of the Amount of Your Income on the Amount of Your Credit Refundable Part of Credit Claiming the Credit Introduction For 2013, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. Printable 2011 tax forms They are the American opportunity credit (this chapter) and the lifetime learning credit ( chapter 3 ). Printable 2011 tax forms This chapter explains: Who can claim the American opportunity credit, What expenses qualify for the credit, Who is an eligible student, Who can claim a dependent's expenses, How to figure the credit, How to claim the credit, and When the credit must be repaid. Printable 2011 tax forms What is the tax benefit of the American opportunity credit. Printable 2011 tax forms   For the tax year, you may be able to claim an American opportunity credit of up to $2,500 for qualified education expenses paid for each eligible student. Printable 2011 tax forms   A tax credit reduces the amount of income tax you may have to pay. Printable 2011 tax forms Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. Printable 2011 tax forms Forty percent of the American opportunity credit may be refundable. Printable 2011 tax forms This means that if the refundable portion of your credit is more than your tax, the excess will be refunded to you. Printable 2011 tax forms   Your allowable American opportunity credit may be limited by the amount of your income. Printable 2011 tax forms Also, the nonrefundable part of the credit may be limited by the amount of your tax. Printable 2011 tax forms Overview of the American opportunity credit. Printable 2011 tax forms   See Table 2-1, Overview of the American Opportunity Credit , for the basics of this credit. Printable 2011 tax forms The details are discussed in this chapter. Printable 2011 tax forms Can you claim more than one education credit this year. Printable 2011 tax forms   For each student, you can elect for any year only one of the credits. Printable 2011 tax forms For example, if you elect to take the American opportunity credit for a child on your 2013 tax return, you cannot use that same child's qualified education expenses to figure the lifetime learning credit for 2013. Printable 2011 tax forms   If you pay qualified education expenses for more than one student in the same year, you can choose to take the American opportunity credit on a per-student, per-year basis. Printable 2011 tax forms If you pay qualified education expenses for a student (or students) for whom you do not claim the American opportunity credit, you can use the adjusted qualified education expenses of that student (or those students) in figuring your lifetime learning credit. Printable 2011 tax forms This means that, for example, you can claim the American opportunity credit for one student and the lifetime learning credit for another student in the same year. Printable 2011 tax forms Differences between the American opportunity and lifetime learning credits. Printable 2011 tax forms   There are several differences between these two credits. Printable 2011 tax forms For example, you can claim the American opportunity credit based on the same student's expenses for no more than 4 tax years, which includes any tax years you claimed the Hope Scholarship Credit for that student. Printable 2011 tax forms However, there is no limit on the number of years for which you can claim a lifetime learning credit based on the same student's expenses. Printable 2011 tax forms The differences between these credits are shown in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 near the end of this publication. Printable 2011 tax forms If you claim the American opportunity credit for any student, you can choose between using that student's adjusted qualified education expenses for the American opportunity credit or the lifetime learning credit. Printable 2011 tax forms If you have the choice, the American opportunity credit will always be greater than the lifetime learning credit. Printable 2011 tax forms Table 2-1. Printable 2011 tax forms Overview of the American Opportunity Credit Maximum credit Up to $2,500 credit per eligible student Limit on modified adjusted gross income (MAGI) $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable 40% of credit may be refundable; the rest is nonrefundable Number of years of postsecondary education Available ONLY if the student had not completed the first 4 years of postsecondary education before 2013 Number of tax years credit available Available ONLY for 4 tax years per eligible student (including any year(s) Hope Scholarship Credit was claimed) Type of program required Student must be pursuing a program leading to a degree or other recognized education credential Number of courses Student must be enrolled at least half time for at least one academic period that begins during the tax year Felony drug conviction As of the end of 2013, the student had not been convicted of a felony for possessing or distributing a controlled substance Qualified expenses Tuition, required enrollment fees, and course materials that the student needs for a course of study whether or not the materials are bought at the educational institution as a condition of enrollment or attendance Payments for academic periods Payments made in 2013 for academic periods beginning in 2013 or beginning in the first 3 months of 2014 Can You Claim the Credit The following rules will help you determine if you are eligible to claim the American opportunity credit on your tax return. Printable 2011 tax forms Who Can Claim the Credit Generally, you can claim the American opportunity credit if all three of the following requirements are met. Printable 2011 tax forms You pay qualified education expenses of higher education. Printable 2011 tax forms You pay the education expenses for an eligible student. Printable 2011 tax forms The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Printable 2011 tax forms Student qualifications. Printable 2011 tax forms   Generally, you can take the American opportunity credit for a student only if all of the following four requirements are met. Printable 2011 tax forms As of the beginning of 2013, the student had not completed the first four years of postsecondary education (generally, the freshman through senior years of college), as determined by the eligible educational institution. Printable 2011 tax forms For this purpose, do not include academic credit awarded solely because of the student's performance on proficiency examinations. Printable 2011 tax forms Neither the American opportunity credit nor the Hope Scholarship Credit has been claimed (by you or anyone else) for this student for any four tax years before 2013. Printable 2011 tax forms If the American opportunity credit (and Hope Scholarship Credit) has been claimed for this student for any three or fewer tax years before 2013, this requirement is met. Printable 2011 tax forms For at least one academic period beginning (or treated as beginning) in 2013, the student both: Was enrolled in a program that leads to a degree, certificate, or other recognized educational credential; and Carried at least one-half the normal full-time workload for his or her course of study. Printable 2011 tax forms The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Printable 2011 tax forms However, the standard may not be lower than any of those established by the U. Printable 2011 tax forms S. Printable 2011 tax forms Department of Education under the Higher Education Act of 1965. Printable 2011 tax forms For purposes of whether the student satisfies this third requirement for 2013, treat an academic period beginning in the first three months of 2014 as if it began in 2013 if qualified education expenses for the student were paid in 2013 for that academic period. Printable 2011 tax forms See Prepaid expenses, later. Printable 2011 tax forms As of the end of 2013, the student had not been convicted of a federal or state felony for possessing or distributing a controlled substance. Printable 2011 tax forms Example 1. Printable 2011 tax forms Sharon was eligible for the Hope Scholarship Credit for 2007 and 2008 and for the American opportunity credit for 2010 and 2012. Printable 2011 tax forms Her parents claimed the Hope Scholarship Credit for Sharon on their tax returns for 2007 and 2008 and claimed the American opportunity credit for Sharon on their 2010 tax return. Printable 2011 tax forms Sharon claimed the American opportunity credit on her 2012 tax return. Printable 2011 tax forms The American opportunity credit and Hope Scholarship Credit have been claimed for Sharon for four tax years before 2013. Printable 2011 tax forms Therefore, the American opportunity credit cannot be claimed by Sharon for 2013. Printable 2011 tax forms If Sharon were to file Form 8863 for 2013, she would check “Yes” for Part III, line 23, and would be eligible to claim only the lifetime learning credit. Printable 2011 tax forms Example 2. Printable 2011 tax forms Wilbert was eligible for the American opportunity credit for 2009, 2010, 2011, and 2013. Printable 2011 tax forms His parents claimed the American opportunity credit for Wilbert on their tax returns for 2009, 2010, and 2011. Printable 2011 tax forms No one claimed an American opportunity credit or Hope Scholarship Credit for Wilbert for any other tax year. Printable 2011 tax forms The American opportunity credit and Hope Scholarship Credit have been claimed for Wilbert for only three tax years before 2013. Printable 2011 tax forms Therefore, Wilbert meets the second requirement to be eligible for the American opportunity credit. Printable 2011 tax forms If Wilbert were to file Form 8863 for 2013, he would check “No” for Part III, line 23. Printable 2011 tax forms If Wilbert meets all of the other requirements, he is eligible for the American opportunity credit. Printable 2011 tax forms Example 3. Printable 2011 tax forms Glenda enrolls on a full-time basis in a degree program for the 2014 Spring semester, which begins in January 2014. Printable 2011 tax forms Glenda pays her tuition for the 2014 Spring semester in December 2013. Printable 2011 tax forms Because the tuition Glenda paid in 2013 relates to an academic period that begins in the first 3 months of 2014, her eligibility to claim an American opportunity credit in 2013 is determined as if the 2014 Spring semester began in 2013. Printable 2011 tax forms If the requirements above are not met for any student, you cannot take the American opportunity credit for that student. Printable 2011 tax forms You may be able to take the lifetime learning credit for part or all of that student's qualified education expenses instead. Printable 2011 tax forms Note. Printable 2011 tax forms Qualified education expenses paid by a dependent for whom you claim an exemption, or by a third party for that dependent, are considered paid by you. Printable 2011 tax forms “Qualified education expenses” are defined later under Qualified Education Expenses . Printable 2011 tax forms “Eligible students” are defined later under Who Is an Eligible Student . Printable 2011 tax forms A dependent for whom you claim an exemption is defined later under Who Can Claim a Dependent's Expenses . Printable 2011 tax forms You may find Figure 2-1, Can You Claim the American Opportunity Credit for 2013 , later, helpful in determining if you can claim an American opportunity credit on your tax return. Printable 2011 tax forms This image is too large to be displayed in the current screen. Printable 2011 tax forms Please click the link to view the image. Printable 2011 tax forms Figure 2-1 Can you claim the American opportunity credit for 2012? Who Cannot Claim the Credit You cannot claim the American opportunity credit for 2013 if any of the following apply. Printable 2011 tax forms Your filing status is married filing separately. Printable 2011 tax forms You are listed as a dependent on another person's tax return (such as your parents'). Printable 2011 tax forms See Who Can Claim a Dependent's Expenses , later. Printable 2011 tax forms Your modified adjusted gross income (MAGI) is $90,000 or more ($180,000 or more in the case of a joint return). Printable 2011 tax forms MAGI is explained later under Effect of the Amount of Your Income on the Amount of Your Credit . Printable 2011 tax forms 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. Printable 2011 tax forms More information on nonresident aliens can be found in Publication 519, U. Printable 2011 tax forms S. Printable 2011 tax forms Tax Guide for Aliens. Printable 2011 tax forms What Expenses Qualify The American opportunity credit is based on adjusted qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Printable 2011 tax forms Generally, the credit is allowed for adjusted qualified education expenses paid in 2013 for an academic period beginning in 2013 or beginning in the first three months of 2014. Printable 2011 tax forms For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning January 2014, you can use that $1,500 in figuring your 2013 credit. Printable 2011 tax forms Academic period. Printable 2011 tax forms   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. Printable 2011 tax forms 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. Printable 2011 tax forms Paid with borrowed funds. Printable 2011 tax forms   You can claim an American opportunity credit for qualified education expenses paid with the proceeds of a loan. Printable 2011 tax forms Use the expenses to figure the American opportunity credit for the year in which the expenses are paid, not the year in which the loan is repaid. Printable 2011 tax forms Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. Printable 2011 tax forms Student withdraws from class(es). Printable 2011 tax forms   You can claim an American opportunity credit for qualified education expenses not refunded when a student withdraws. Printable 2011 tax forms Qualified Education Expenses For purposes of the American opportunity credit, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Printable 2011 tax forms Eligible educational institution. Printable 2011 tax forms   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. Printable 2011 tax forms S. Printable 2011 tax forms Department of Education. Printable 2011 tax forms It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Printable 2011 tax forms The educational institution should be able to tell you if it is an eligible educational institution. Printable 2011 tax forms   Certain educational institutions located outside the United States also participate in the U. Printable 2011 tax forms S. Printable 2011 tax forms Department of Education's Federal Student Aid (FSA) programs. Printable 2011 tax forms Related expenses. Printable 2011 tax forms   Student-activity fees are included in qualified education expenses only if the fees must be paid to the institution as a condition of enrollment or attendance. Printable 2011 tax forms   However, expenses for books, supplies, and equipment needed for a course of study are included in qualified education expenses whether or not the materials are purchased from the educational institution. Printable 2011 tax forms Prepaid expenses. Printable 2011 tax forms   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring an education credit for 2013 only. Printable 2011 tax forms See Academic period, earlier. Printable 2011 tax forms 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 an education credit for 2013 only (if you meet all the other requirements). Printable 2011 tax forms    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). Printable 2011 tax forms   In the following examples, assume that each student is an eligible student at an eligible educational institution. Printable 2011 tax forms Example 1. Printable 2011 tax forms Jefferson is a sophomore in University V's degree program in dentistry. Printable 2011 tax forms This year, in addition to tuition, he is required to pay a fee to the university for the rental of the dental equipment he will use in this program. Printable 2011 tax forms Because the equipment rental is needed for his course of study, Jefferson's equipment rental fee is a qualified expense. Printable 2011 tax forms Example 2. Printable 2011 tax forms Grace and William, both first-year students at College W, are required to have certain books and other reading materials to use in their mandatory first-year classes. Printable 2011 tax forms The college has no policy about how students should obtain these materials, but any student who purchases them from College W's bookstore will receive a bill directly from the college. Printable 2011 tax forms William bought his books from a friend; Grace bought hers at College W's bookstore. Printable 2011 tax forms Both are qualified education expenses for the American opportunity credit. Printable 2011 tax forms Example 3. Printable 2011 tax forms When Kelly enrolled at College X for her freshman year, she had to pay a separate student activity fee in addition to her tuition. Printable 2011 tax forms This activity fee is required of all students, and is used solely to fund on-campus organizations and activities run by students, such as the student newspaper and the student government. Printable 2011 tax forms No portion of the fee covers personal expenses. Printable 2011 tax forms Although labeled as a student activity fee, the fee is required for Kelly's enrollment and attendance at College X and is a qualified expense. Printable 2011 tax forms No Double Benefit Allowed You cannot do any of the following. Printable 2011 tax forms Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim an American opportunity credit based on those same expenses. Printable 2011 tax forms Claim an American opportunity credit in the same year that you are claiming a tuition and fees deduction for the same student. Printable 2011 tax forms Claim an American opportunity credit for any student and use any of that student's expenses in figuring your lifetime learning credit. Printable 2011 tax forms Figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or qualified tuition program (QTP) using the same expenses you used to figure the American opportunity credit. Printable 2011 tax forms See Coordination With American Opportunity and Lifetime Learning Credits in chapter 7, Coverdell Education Savings Account, and Coordination With American Opportunity and Lifetime Learning Credits in chapter 8, Qualified Tuition Program. Printable 2011 tax forms Claim a credit based on qualified education expenses paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. Printable 2011 tax forms See Adjustments to Qualified Education Expenses, next. Printable 2011 tax forms Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Printable 2011 tax forms The result is the amount of adjusted qualified education expenses for each student. Printable 2011 tax forms Tax-free educational assistance. Printable 2011 tax forms   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. Printable 2011 tax forms See Academic period, earlier. Printable 2011 tax forms   Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Printable 2011 tax forms 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). Printable 2011 tax forms   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. Printable 2011 tax forms 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. Printable 2011 tax forms   Tax-free educational assistance includes: The tax-free parts of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Printable 2011 tax forms Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Printable 2011 tax forms Generally, any scholarship or fellowship is treated as tax free. Printable 2011 tax forms However, a scholarship or fellowship is not treated as tax free to the extent the student includes it in gross income (if the student is required to file a tax return for the year the scholarship or fellowship is received) and either of the following is true. Printable 2011 tax forms The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Printable 2011 tax forms The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Printable 2011 tax forms You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. Printable 2011 tax forms For examples, see Coordination with Pell grants and other scholarships, later. Printable 2011 tax forms Refunds. Printable 2011 tax forms   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or require repayment (recapture) of a credit claimed in an earlier year. Printable 2011 tax forms Some tax-free educational assistance received after 2013 may be treated as a refund. Printable 2011 tax forms See Tax-free educational assistance, earlier. Printable 2011 tax forms Refunds received in 2013. Printable 2011 tax forms   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses for 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Printable 2011 tax forms Refunds received after 2013 but before your income tax return is filed. Printable 2011 tax forms   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid before you file an income tax return for 2013, the amount of qualified education expenses for 2013 is reduced by the amount of the refund. Printable 2011 tax forms Refunds received after 2013 and after your income tax return is filed. Printable 2011 tax forms   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is paid after you file an income tax return for 2013, you may need to repay some or all of the credit. Printable 2011 tax forms See Credit recapture, next. Printable 2011 tax forms Credit recapture. Printable 2011 tax forms    If any tax-free educational assistance for the qualified education expenses paid in 2013, or any refund of your qualified education expenses paid in 2013, is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. Printable 2011 tax forms You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing the expenses by the amount of the refund or tax-free educational assistance. Printable 2011 tax forms You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you claimed the refigured credit(s). Printable 2011 tax forms Include that amount as an additional tax for the year the refund or tax-free assistance was received. Printable 2011 tax forms Example. Printable 2011 tax forms   You paid $7,000 tuition and fees in August 2013, and your child began college in September 2013. Printable 2011 tax forms You filed your 2013 tax return on February 17, 2014, and claimed an American opportunity credit of $2,500. Printable 2011 tax forms After you filed your return, you received a refund of $4,000. Printable 2011 tax forms You must refigure your 2013 American opportunity credit using $3,000 of qualified education expenses instead of $7,000. Printable 2011 tax forms The refigured credit is $2,250. Printable 2011 tax forms The increase to your tax liability is also $250. Printable 2011 tax forms Include the difference of $250 as additional tax on your 2014 tax return. Printable 2011 tax forms See the instructions for your 2014 income tax return to determine where to include this tax. Printable 2011 tax forms If you pay qualified education expenses in 2014 for an academic period that begins in the first 3 months of 2014 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2014 instead of reducing your expenses for 2013. Printable 2011 tax forms Amounts that do not reduce qualified education expenses. Printable 2011 tax forms   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. Printable 2011 tax forms   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. Printable 2011 tax forms The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses as defined in Qualified education expenses in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Printable 2011 tax forms The use of the money is not restricted. Printable 2011 tax forms Example 1. Printable 2011 tax forms Joan paid $3,000 for tuition and $5,000 for room and board at University X. Printable 2011 tax forms The university did not require her to pay any fees in addition to her tuition in order to enroll in or attend classes. Printable 2011 tax forms To help pay these costs, she was awarded a $2,000 scholarship and a $4,000 student loan. Printable 2011 tax forms The terms of the scholarship state that it can be used to pay any of Joan's college expenses. Printable 2011 tax forms University X applies the $2,000 scholarship against Joan's $8,000 total bill, and Joan pays the $6,000 balance of her bill from University X with a combination of her student loan and her savings. Printable 2011 tax forms Joan does not report any portion of the scholarship as income on her tax return. Printable 2011 tax forms In figuring the amount of either education credit (American opportunity or lifetime learning), Joan must reduce her qualified education expenses by the amount of the scholarship ($2,000) because she excluded the entire scholarship from her income. Printable 2011 tax forms The student loan is not tax-free educational assistance, so she does not need to reduce her qualified expenses by any part of the loan proceeds. Printable 2011 tax forms Joan is treated as having paid $1,000 in qualified education expenses ($3,000 tuition – $2,000 scholarship). Printable 2011 tax forms Example 2. Printable 2011 tax forms The facts are the same as in Example 1, except that Joan reports her entire scholarship as income on her tax return. Printable 2011 tax forms Because Joan reported the entire $2,000 scholarship in her income, she does not need to reduce her qualified education expenses. Printable 2011 tax forms Joan is treated as having paid $3,000 in qualified education expenses. Printable 2011 tax forms Coordination with Pell grants and other scholarships. Printable 2011 tax forms   In some cases, you may be able to reduce your tax liability by including scholarships in income. Printable 2011 tax forms If you are claiming an education credit for a claimed dependent who received a scholarship, you may be able to reduce your tax liability if the student includes the scholarship in income. Printable 2011 tax forms The scholarship must be one that may (by its terms) be applied to expenses (such as room and board) other than qualified education expenses. Printable 2011 tax forms Example 1—No scholarship. Printable 2011 tax forms Bill Pass, age 28 and unmarried, enrolled full-time in 2013 as a first-year student at a local college to earn a degree in law enforcement. Printable 2011 tax forms This was his first year of postsecondary education. Printable 2011 tax forms During 2013, he paid $5,600 for his qualified education expenses and $4,400 for his room and board for the fall 2013 semester. Printable 2011 tax forms He and the college meet all the requirements for the American opportunity credit. Printable 2011 tax forms Bill's AGI and his MAGI, for purposes of figuring his credit, are $30,000. Printable 2011 tax forms Bill takes the standard deduction of $5,950 and personal exemption of $3,800, reducing his AGI to taxable income of $20,250. Printable 2011 tax forms His income tax liability, before credits, is $2,599 and Bill claims no credits other than the American opportunity credit. Printable 2011 tax forms He figures his American opportunity credit based on qualified education expenses of $4,000, which results in a credit of $2,500 and tax after credits of $99. Printable 2011 tax forms Example 2—Scholarship excluded from income. Printable 2011 tax forms The facts are the same as in Example 1—No scholarship, except that Bill was awarded a $5,600 scholarship. Printable 2011 tax forms Under the terms of his scholarship, it may be used to pay any educational expenses, including room and board. Printable 2011 tax forms If Bill excludes the scholarship from income, he will be deemed (for purposes of computing his education credit) to have used the scholarship to pay for tuition, required fees, and course materials. Printable 2011 tax forms His adjusted qualified education expenses will be zero and he will not have an education credit. Printable 2011 tax forms Therefore, Bill's tax after credits would be $2,599. Printable 2011 tax forms Example 3—Scholarship partially included in income. Printable 2011 tax forms The facts are the same as in Example 2—Scholarship excluded from income. Printable 2011 tax forms If, unlike Example 2, Bill includes $4,000 of the scholarship in income, he will be deemed to have used that amount to pay for room and board. Printable 2011 tax forms The remaining $1,600 of the $5,600 scholarship will reduce his qualified education expenses and his adjusted qualified education expenses will be $4,000. Printable 2011 tax forms Bill's AGI will increase to $34,000, his taxable income will increase to $24,250, and his tax before credits will increase to $3,199. Printable 2011 tax forms Based on his adjusted qualified education expenses of $4,000, Bill would be able to claim an American opportunity tax credit of $2,500 and his tax after credits would be $699. Printable 2011 tax forms 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. Printable 2011 tax forms This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Printable 2011 tax forms Sports, games, hobbies, and noncredit courses. Printable 2011 tax forms   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. Printable 2011 tax forms However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Printable 2011 tax forms Comprehensive or bundled fees. Printable 2011 tax forms   Some eligible educational institutions combine all of their fees for an academic period into one amount. Printable 2011 tax forms 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 earlier, contact the institution. Printable 2011 tax forms 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. Printable 2011 tax forms See Figuring the Credit , later, for more information about Form 1098-T. Printable 2011 tax forms Who Is an Eligible Student To claim the American opportunity credit, the student for whom you pay qualified education expenses must be an eligible student. Printable 2011 tax forms This is a student who meets all of the following requirements. Printable 2011 tax forms The student did not have expenses that were used to figure an American opportunity credit in any 4 earlier tax years. Printable 2011 tax forms This includes any tax year(s) in which you claimed the Hope Scholarship Credit for the same student. Printable 2011 tax forms The student had not completed the first 4 years of postsecondary education (generally, the freshman, sophomore, junior, and senior years of college) before 2013. Printable 2011 tax forms For at least one academic period beginning in 2013, the student was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Printable 2011 tax forms The student has not been convicted of any federal or state felony for possessing or distributing a controlled substance as of the end of 2013. Printable 2011 tax forms These requirements are also shown in Figure 2-2, Who is an Eligible Student for the American Opportunity Credit , later. Printable 2011 tax forms Completion of first 4 years. Printable 2011 tax forms   A student has completed the first 4 years of postsecondary education if the institution at which the student is enrolled awards the student 4 years of academic credit at that institution for coursework completed by the student before 2013. Printable 2011 tax forms This student generally would not be an eligible student for purposes of the American opportunity credit. Printable 2011 tax forms Exception. Printable 2011 tax forms   Any academic credit awarded solely on the basis of the student's performance on proficiency examinations is disregarded in determining whether the student has completed 4 years of postsecondary education. Printable 2011 tax forms Enrolled at least half-time. Printable 2011 tax forms   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. Printable 2011 tax forms   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Printable 2011 tax forms However, the standard may not be lower than any of those established by the U. Printable 2011 tax forms S. Printable 2011 tax forms Department of Education under the Higher Education Act of 1965. Printable 2011 tax forms Please click here for the text description of the image. Printable 2011 tax forms Figure 2-2 Example 1. Printable 2011 tax forms Mack graduated from high school in June 2012. Printable 2011 tax forms In September, he enrolled in an undergraduate degree program at College U, and attended full-time for both the 2012 fall and 2013 spring semesters. Printable 2011 tax forms For the 2013 fall semester, Mack was enrolled less than half-time. Printable 2011 tax forms Because Mack was enrolled in an undergraduate degree program on at least a half-time basis for at least one academic period that began during 2012 and at least one academic period that began during 2013, he is an eligible student for tax years 2012 and 2013 (including the 2013 fall semester when he enrolled at College U on less than a half-time basis). Printable 2011 tax forms Example 2. Printable 2011 tax forms After taking classes at College V on a part-time basis for a few years, Shelly became a full-time student for the 2013 spring semester. Printable 2011 tax forms College V classified Shelly as a second-semester senior (fourth year) for the 2013 spring semester and as a first-semester graduate student (fifth year) for the 2013 fall semester. Printable 2011 tax forms Because College V did not classify Shelly as having completed the first 4 years of postsecondary education as of the beginning of 2013, Shelly is an eligible student for tax year 2013. Printable 2011 tax forms Therefore, the qualified education expenses paid for the 2013 spring semester and the 2013 fall semester are taken into account in calculating the American opportunity credit for 2013. Printable 2011 tax forms Example 3. Printable 2011 tax forms During the 2012 fall semester, Larry was a high school student who took classes on a half-time basis at College X. Printable 2011 tax forms Larry was not enrolled as part of a degree program at College X because College X only admits students to a degree program if they have a high school diploma or equivalent. Printable 2011 tax forms Because Larry was not enrolled in a degree program at College X during 2012, Larry was not an eligible student for tax year 2012. Printable 2011 tax forms Example 4. Printable 2011 tax forms The facts are the same as in Example 3. Printable 2011 tax forms During the 2013 spring semester, Larry again attended College X but not as part of a degree program. Printable 2011 tax forms Larry graduated from high school in June 2013. Printable 2011 tax forms For the 2013 fall semester, Larry enrolled as a full-time student in College X as part of a degree program, and College X awarded Larry credit for his prior coursework at College X. Printable 2011 tax forms Because Larry was enrolled in a degree program at College X for the 2013 fall term on at least a half-time basis, Larry is an eligible student for all of tax year 2013. Printable 2011 tax forms Therefore, the qualified education expenses paid for classes taken at College X during both the 2013 spring semester (during which Larry was not enrolled in a degree program) and the 2013 fall semester are taken into account in computing any American opportunity credit. Printable 2011 tax forms Example 5. Printable 2011 tax forms Dee graduated from high school in June 2012. Printable 2011 tax forms In January 2013, Dee enrolled in a 1-year postsecondary certificate program on a full-time basis to obtain a certificate as a travel agent. Printable 2011 tax forms Dee completed the program in December 2013, and was awarded a certificate. Printable 2011 tax forms In January 2014, she enrolled in a 1-year postsecondary certificate program on a full-time basis to obtain a certificate as a computer programmer. Printable 2011 tax forms Dee is an eligible student for both tax years 2013 and 2014 because she meets the degree requirement, the work load requirement, and the year of study requirement for those years. Printable 2011 tax forms Who Can Claim a Dependent's Expenses If there are qualified education expenses for your dependent during a tax year, either you or your dependent, but not both of you, can claim an American opportunity credit for your dependent's expenses for that year. Printable 2011 tax forms For you to claim an American opportunity credit for your dependent's expenses, you must also claim an exemption for your dependent. Printable 2011 tax forms You do this by listing your dependent's name and other required information on Form 1040 (or Form 1040A), line 6c. Printable 2011 tax forms IF you. Printable 2011 tax forms . Printable 2011 tax forms . Printable 2011 tax forms THEN only. Printable 2011 tax forms . Printable 2011 tax forms . Printable 2011 tax forms claim an exemption on  your tax return for a  dependent who is an  eligible student you can claim the American opportunity credit based on that dependent's expenses. Printable 2011 tax forms The dependent cannot claim the credit. Printable 2011 tax forms do not claim an exemption on your tax return for a dependent who is an eligible student (even if entitled to the exemption) the dependent can claim the American opportunity credit. Printable 2011 tax forms You cannot claim the credit based on this dependent's expenses. Printable 2011 tax forms Expenses paid by dependent. Printable 2011 tax forms   If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Printable 2011 tax forms Include these expenses when figuring the amount of your American opportunity credit. Printable 2011 tax forms    Qualified education expenses paid directly to an eligible educational institution for your dependent under a court-approved divorce decree are treated as paid by your dependent. Printable 2011 tax forms Expenses paid by you. Printable 2011 tax forms   If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the American opportunity credit. Printable 2011 tax forms If neither you nor anyone else claims an exemption for the dependent, only the dependent can include any expenses you paid when figuring the American opportunity credit. Printable 2011 tax forms Expenses paid by others. Printable 2011 tax forms   Someone other than you, your spouse, or your dependent (such as a relative or former spouse) may make a payment directly to an eligible educational institution to pay for an eligible student's qualified education expenses. Printable 2011 tax forms In this case, the student is treated as receiving the payment from the other person and, in turn, paying the institution. Printable 2011 tax forms If you claim an exemption on your tax return for the student, you are considered to have paid the expenses. Printable 2011 tax forms Example. Printable 2011 tax forms In 2013, Ms. Printable 2011 tax forms Allen makes a payment directly to an eligible educational institution for her grandson Todd's qualified education expenses. Printable 2011 tax forms For purposes of claiming an American opportunity credit, Todd is treated as receiving the money from his grandmother and, in turn, paying his qualified education expenses himself. Printable 2011 tax forms Unless an exemption for Todd is claimed on someone else's 2013 tax return, only Todd can use the payment to claim an American opportunity credit. Printable 2011 tax forms If anyone, such as Todd's parents, claims an exemption for Todd on his or her 2013 tax return, whoever claims the exemption may be able to use the expenses to claim an American opportunity credit. Printable 2011 tax forms If anyone else claims an exemption for Todd, Todd cannot claim an American opportunity credit. Printable 2011 tax forms Tuition reduction. Printable 2011 tax forms    When an eligible educational institution provides a reduction in tuition to an employee of the institution (or spouse or dependent child of an employee), the amount of the reduction may or may not be taxable. Printable 2011 tax forms If it is taxable, the employee is treated as receiving a payment of that amount and, in turn, paying it to the educational institution on behalf of the student. Printable 2011 tax forms For more information on tuition reductions, see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions. Printable 2011 tax forms Figuring the Credit The amount of the American opportunity credit (per eligible student) is the sum of: 100% of the first $2,000 of qualified education expenses you paid for the eligible student, and 25% of the next $2,000 of qualified education expenses you paid for that student. Printable 2011 tax forms The maximum amount of American opportunity credit you can claim in 2013 is $2,500 multiplied by the number of eligible students. Printable 2011 tax forms You can claim the full $2,500 for each eligible student for whom you paid at least $4,000 of adjusted qualified education expenses. Printable 2011 tax forms However, the credit may be reduced based on your MAGI. Printable 2011 tax forms See Effect of the Amount of Your Income on the Amount of Your Credit , later. Printable 2011 tax forms Example. Printable 2011 tax forms Jack and Kay Ford are married and file a joint tax return. Printable 2011 tax forms For 2013, they claim an exemption for their dependent daughter on their tax return. Printable 2011 tax forms Their MAGI is $70,000. Printable 2011 tax forms Their daughter is in her junior (third) year of studies at the local university. Printable 2011 tax forms Jack and Kay paid qualified education expenses of $4,300 in 2013. Printable 2011 tax forms Jack and Kay, their daughter, and the local university meet all of the requirements for the American opportunity credit. Printable 2011 tax forms Jack and Kay can claim a $2,500 American opportunity credit in 2013. Printable 2011 tax forms This is 100% of the first $2,000 of qualified education expenses, plus 25% of the next $2,000. Printable 2011 tax forms Form 1098-T. Printable 2011 tax forms   To help you figure your American opportunity credit, the student should receive Form 1098-T, Tuition Statement. Printable 2011 tax forms 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. Printable 2011 tax forms An institution may choose to report either payments received (box 1), or amounts billed (box 2), for qualified education expenses. Printable 2011 tax forms However, the amounts in boxes 1 and 2 of Form 1098-T might be different than what you paid. Printable 2011 tax forms When figuring the credit, use only the amounts you paid or are deemed to have paid in 2013 for qualified education expenses. Printable 2011 tax forms   In addition, Form 1098-T should give other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements or refunds, and whether the student was enrolled at least half-time or was a graduate student. Printable 2011 tax forms    The eligible educational institution may ask for a completed Form W-9S, Request for Student's or Borrower's Taxpayer Identification Number and Certification, or similar statement to obtain the student's name, address, and taxpayer identification number. Printable 2011 tax forms Effect of the Amount of Your Income on the Amount of Your Credit The amount of your American opportunity credit is phased out (gradually reduced) if your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). Printable 2011 tax forms You cannot claim an American opportunity credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint return). Printable 2011 tax forms Modified adjusted gross income (MAGI). Printable 2011 tax forms   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. Printable 2011 tax forms MAGI when using Form 1040A. Printable 2011 tax forms   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. Printable 2011 tax forms MAGI when using Form 1040. Printable 2011 tax forms   If you file Form 1040, your MAGI is the AGI on line 38 of that form, modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, and Exclusion of income by bona fide residents of Puerto Rico. Printable 2011 tax forms You can use Worksheet 2-1, next, to figure your MAGI. Printable 2011 tax forms    Worksheet 2-1. Printable 2011 tax forms MAGI for the American Opportunity Credit 1. Printable 2011 tax forms Enter your adjusted gross income  (Form 1040, line 38)   1. Printable 2011 tax forms   2. Printable 2011 tax forms Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. Printable 2011 tax forms       3. Printable 2011 tax forms Enter your foreign housing deduction (Form 2555, line 50)   3. Printable 2011 tax forms       4. Printable 2011 tax forms Enter the amount of income from Puerto Rico you are excluding   4. Printable 2011 tax forms       5. Printable 2011 tax forms Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. Printable 2011 tax forms       6. Printable 2011 tax forms Add the amounts on lines 2, 3, 4, and 5   6. Printable 2011 tax forms   7. Printable 2011 tax forms Add the amounts on lines 1 and 6. Printable 2011 tax forms  This is your modified adjusted  gross income. Printable 2011 tax forms Enter here and  on Form 8863, line 3   7. Printable 2011 tax forms   Phaseout. Printable 2011 tax forms   If your MAGI is within the range of incomes where the credit must be reduced, you will figure your reduced credit using lines 2-7, of Form 8863, Part I. Printable 2011 tax forms The same method is shown in the following example. Printable 2011 tax forms Example. Printable 2011 tax forms You are filing a joint return and your MAGI is $165,000. Printable 2011 tax forms In 2013, you paid $5,000 of qualified education expenses. Printable 2011 tax forms You figure a tentative American opportunity credit of $2,500 (100% of the first $2,000 of qualified education expenses, plus 25% of the next $2,000 of qualified education expenses). Printable 2011 tax forms Because your MAGI is within the range of incomes where the credit must be reduced, you must multiply your tentative credit ($2,500) by a fraction. Printable 2011 tax forms The numerator of the fraction is $180,000 (the upper limit for those filing a joint return) minus your MAGI. Printable 2011 tax forms The denominator is $20,000, the range of incomes for the phaseout ($160,000 to $180,000). Printable 2011 tax forms The result is the amount of your phased out (reduced) American opportunity credit ($1,875). Printable 2011 tax forms      $2,500 × $180,000 − $165,000  $20,000 = $1,875   Refundable Part of Credit Forty percent of the American opportunity credit is refundable for most taxpayers. Printable 2011 tax forms However, if you were under age 24 at the end of 2013 and the conditions listed below apply to you, you cannot claim any part of the American opportunity credit as a refundable credit on your tax return. Printable 2011 tax forms Instead, your allowed credit (figured on Form 8863, Part II) will be used to reduce your tax as a nonrefundable credit only. Printable 2011 tax forms You do not qualify for a refund if items 1 (a, b, or c), 2, and 3 below apply to you. Printable 2011 tax forms You were: Under age 18 at the end of 2013, or Age 18 at the end of 2013 and your earned income (defined below) was less than one-half of your support (defined below), or Over age 18 and under age 24 at the end of 2013 and a full-time student (defined below) and your earned income (defined below) was less than one-half of your support (defined below). Printable 2011 tax forms At least one of your parents was alive at the end of 2013. Printable 2011 tax forms You are filing a return as single, head of household, qualifying widow(er), or married filing separately for 2013. Printable 2011 tax forms Earned income. Printable 2011 tax forms   Earned income includes wages, salaries, professional fees, and other payments received for personal services actually performed. Printable 2011 tax forms Earned income includes the part of any scholarship or fellowship that represents payment for teaching, research, or other services performed by the student that are required as a condition for receiving the scholarship or fellowship. Printable 2011 tax forms Earned income does not include that part of the compensation for personal services rendered to a corporation which represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered. Printable 2011 tax forms   If you are a sole proprietor or a partner in a trade or business in which both personal services and capital are material income-producing factors, earned income also includes a reasonable allowance for compensation for personal services, but not more than 30% of your share of the net profits from that trade or business (after subtracting the deduction for one-half of self-employment tax). Printable 2011 tax forms However, if capital is not an income-producing factor and your personal services produced the business income, the 30% limit does not apply. Printable 2011 tax forms Support. Printable 2011 tax forms   Your support includes food, shelter, clothing, medical and dental care, education, and the like. Printable 2011 tax forms Generally, the amount of the item of support will be the amount of expenses incurred by the one furnishing such item. Printable 2011 tax forms If the item of support is in the form of property or lodging, measure the amount of such item of support by its fair market value. Printable 2011 tax forms However, a scholarship received by you is not considered support if you are a full-time student. Printable 2011 tax forms See Publication 501 for details. Printable 2011 tax forms Full-time student. Printable 2011 tax forms   You are a full-time student for 2013 if during any part of any 5 calendar months during the year you were enrolled as a full-time student at an eligible educational institution (defined earlier), or took a full-time, on-farm training course given by such an institution or by a state, county, or local government agency. Printable 2011 tax forms Claiming the Credit You claim the American opportunity credit by completing Form 8863 and submitting it with your Form 1040 or 1040A. Printable 2011 tax forms Enter the nonrefundable part of the credit on Form 1040, line 49, or on Form 1040A, line 31. Printable 2011 tax forms Enter the refundable part of the credit on Form 1040, line 66, or on Form 1040A, line 40. Printable 2011 tax forms A filled-in Form 8863 is shown at the end of this publication. Printable 2011 tax forms Note. Printable 2011 tax forms In Appendix A. Printable 2011 tax forms at the end of this publication, there is an example illustrating the use of Form 8863 when both the American opportunity credit and the lifetime learning credit are claimed on the same tax return. Printable 2011 tax forms Prev  Up  Next   Home   More Online Publications