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 Posted 7:46 PM Mar. 1, 2010
You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. By selecting the method that is best for you, you will have quick and easy access to tax help.
Contacting your Taxpayer Advocate. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Here are seven things every taxpayer should know about TAS:
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TAS is your voice at the IRS.
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Our service is free, confidential, and tailored to meet your needs.
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You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should.
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TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. This includes businesses as well as individuals.
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TAS employees know the IRS and how to navigate it. We will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved.
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TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. You can call your local advocate, whose number is in your phone book, in Pub. 1546, Taxpayer Advocate Service—Your Voice at the IRS, and on our website at www.irs.gov/advocate. You can also call our toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059.
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You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www.taxtoolkit.irs.gov.
Low Income Taxpayer Clinics (LITCs). The Low Income Taxpayer Clinic program serves individuals who have a problem with the IRS and whose income is below a certain level. LITCs are independent from the IRS. Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or a small fee. If an individual's native language is not English, some clinics can provide multilingual information about taxpayer rights and responsibilities. For more information, see Publication 4134, Low Income Taxpayer Clinic List. This publication is available at www.irs.gov, by calling 1-800-TAX-FORM (1-800-829-3676), or at your local IRS office.
Free tax services. To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. It also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on your telephone.
Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities.
Free help with your return. Free help in preparing your return is available nationwide from IRS-trained volunteers. The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. To find the nearest VITA or TCE site, call 1-800-829-1040.
As part of the TCE program, AARP offers the Tax-Aide counseling program. To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at
www.aarp.org/money/taxaide.
For more information on these programs, go to
www.irs.gov and enter keyword “ VITA” in the upper right-hand corner.
Internet. You can access the IRS website at www.irs.gov 24 hours a day, 7 days a week to:
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E-file your return. Find out about commercial tax preparation and e-file services available free to eligible taxpayers.
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Check the status of your 2009 refund. Go to
www.irs.gov and click on Where's My Refund. Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund.
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Download forms, instructions, and publications.
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Order IRS products online.
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Research your tax questions online.
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Search publications online by topic or keyword.
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Use the online Internal Revenue Code, Regulations, or other official guidance.
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View Internal Revenue Bulletins (IRBs) published in the last few years.
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Figure your withholding allowances using the withholding calculator online at www.irs.gov/individuals.
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Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant.
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Sign up to receive local and national tax news by email.
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Get information on starting and operating a small business.
Phone. Many services are available by phone.
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Ordering forms, instructions, and publications. Call 1-800-TAX FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. You should receive your order within 10 days.
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Asking tax questions. Call the IRS with your tax questions at 1-800-829-1040.
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Solving problems. You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Call your local Taxpayer Assistance Center for an appointment. To find the number, go to www.irs.gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service.
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TTY/TDD equipment. If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications.
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TeleTax topics. Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics.
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Refund information. To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Refunds are sent out weekly on Fridays. If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back.
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Other refund information. To check the status of a prior year refund or amended return refund, call 1-800-829-1954.
Evaluating the quality of our telephone services. To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. One method is for a second IRS representative to listen in on or record random telephone calls. Another is to ask some callers to complete a short survey at the end of the call.
Walk-in. Many products and services are available on a walk-in basis.
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Products. You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes.
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Services. You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. No appointment is necessary—just walk in. If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. All other issues will be handled without an appointment. To find the number of your local office, go to
www.irs.gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service.
Mail. You can send your order for forms, instructions, and publications to the address below. You should receive a response within 10 days after your request is received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613
DVD for tax products. You can order Publication 1796, IRS Tax Products DVD, and obtain:
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Current-year forms, instructions, and publications.
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Prior-year forms, instructions, and publications.
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Tax Map: an electronic research tool and finding aid.
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Tax law frequently asked questions.
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Tax Topics from the IRS telephone response system.
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Internal Revenue Code—Title 26 of the U.S. Code.
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Fill-in, print, and save features for most tax forms.
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Internal Revenue Bulletins.
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Toll-free and email technical support.
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Two releases during the year.
– The first release will ship the beginning of January 2010.
– The final release will ship the beginning of March 2010.
Purchase the DVD from National Technical Information Service (NTIS) at www.irs.gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee).
The following appendices are provided to help you claim the education benefits that will give you the lowest tax.
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Appendix A—An Illustrated Example of Education Credits including a filled-in Form 8863 showing how to claim both the American opportunity credit and lifetime learning credit for 2009.
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Appendix B—A chart summarizing some of the major differences between the education tax benefits discussed in this publication. It is intended only as a guide. Look in this publication for more complete information.
Appendix A. Illustrated Example of Education Credits
Dave and Valerie Jones are married and file a joint tax return. For 2009, they claim exemptions for their two dependent children on their tax return. Their modified adjusted gross income is $103,000. Their tax, before credits, is $11,631. Their son, Sean, began graduate school (fifth year of college) in September 2009 and will receive his master's degree in psychology from the state college in May 2010. Their daughter, Corey, enrolled full-time at that same college in August 2008 to begin working on her bachelor's degree in physical education. In July 2009, Dave and Valerie paid $2,400 in tuition costs for each child for the fall 2009 semester. In December 2009, they also paid $2,600 of tuition for each child for the spring 2010 semester that begins in January.
Dave and Valerie, their children, and the college meet all of the requirements for the education credits. Because neither child attends school in a Midwestern disaster area, they do not claim a Hope credit. Because Sean is beyond the fourth (senior) year of his postsecondary education, his expenses do not qualify for the American opportunity credit. However, amounts paid for Sean's expenses in 2009 for academic periods beginning in 2009 and January 2010 do qualify for the lifetime learning credit. Corey is in her first 4 years (freshman through senior) of postsecondary education and expenses paid for her in 2009, for academic periods beginning in 2009 and January 2010, qualify for the American opportunity credit.
Dave and Valerie figure their refundable American opportunity credit, $1,000, as shown in Part IV of the completed Form 8863. They carry the amount from line 16 of Form 8863 to line 66 of Form 1040. Dave and Valerie figure their tentative lifetime learning credit for 2009, $1,000 (line 8c). They cannot claim the full amount because their MAGI is more than $100,000. The reduced amount ($850 on line 24) is added to their nonrefundable American opportunity credit ($1,500 on line 17) for a total nonrefundable credit of $2,350. They carry that amount (line 29) to line 49 of Form 1040 and attach the completed Form 8863 to their return.
Appendix B.Highlights of Education Tax Benefits for Tax Year 2009
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This chart highlights some differences among the benefits discussed in this publication. See the text for definitions and details.Do not rely on this chart alone.
Caution:You generally cannot claim more than one benefit for the same education expense.
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Scholarships,
Fellowships,
Grants, and Tuition Reductions |
American Opportunity Credit |
Hope Credit |
Lifetime Learning Credit |
Student Loan Interest Deduction |
Tuition and Fees Deduction |
What is your
benefit? |
Amounts received may not be taxable
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40% of credit may be refundable
(limited to $1,000) |
Credits can reduce amount of tax you must pay |
Can deduct interest paid |
Can deduct expenses |
| What is the annual limit? |
None |
$2,500 |
$1,800 credit ($3,600 if a student in a Midwestern disaster area) per student |
$2,000 credit ($4,000 if a student in a Midwestern disaster area) per tax return |
$2,500 deduction |
$4,000 deduction |
What expenses
qualify besides
tuition and required enrollment fees? |
Course-related expenses such as fees, books, supplies, and equipment |
Course-related books, supplies, and equipment |
None (but seeStudents in Midwestern disaster areas under Qualified Education Expenses in chapter 3 for an exception) |
None (but see Students in Midwestern disaster areas under Qualified Education Expenses in chapter 4 for an exception) |
Books
Supplies
Equipment
Room & board
Transportation
Other necessary expenses |
None (but see Students in Midwestern disaster areas under Qualified Education Expenses in chapter 7 for an exception) |
| What education qualifies? |
Undergraduate & graduate
K–12 |
1st 4 years of undergraduate (postsecondary) |
1st 2 years of undergraduate (postsecondary) |
Undergraduate & graduate
Courses to acquire or improve job skills |
Undergraduate & graduate |
Undergraduate & graduate |
What are some of the other
conditions that
apply? |
Must be in degree or vocational program
Payment of tuition and required fees must be allowed under the grant |
Can be claimed for only 4 tax years (which includes years Hope credit claimed)
Must be enrolled at least half-time in degree program
No felony drug conviction(s)
Cannot claim Hope credit on same return |
Can be claimed for only 2 tax years
Must be enrolled at least half-time in degree program
Must claim the credit for at least one eligible Midwestern disaster area student
No felony drug conviction(s)
Cannot claim American opportunity credit on same return |
No other conditions |
Must have been at least half-time
student in degree program |
Cannot claim both deduction & education credit for same student in same year |
In what income
range do benefits
phase out? |
No phaseout |
$80,000 – $90,000
$160,000 – $180,000 for joint returns |
$50,000 – $60,000
$100,000 – $120,000 for joint returns |
$60,000 – $75,000
$120,000 –
$150,000 for
joint returns
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$65,000 – $80,000
$130,000 –
$160,000 for
joint returns
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Appendix B.Highlights of Education Tax Benefits for Tax Year 2009 (Continued)
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This chart highlights some differences among the benefits discussed in this publication. See the text for definitions and details.Do not rely on this chart alone.
Caution:You generally cannot claim more than one benefit for the same education expense.
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Coverdell ESA† |
Qualified Tuition Program (QTP)† |
Education Exception to Additional Tax on Early IRA Distributions† |
Education Savings Bond Program† |
Employer-
Provided Educational Assistance† |
Business Deduction for Work-Related Education |
| What is your benefit? |
Earnings not
taxed |
Earnings not taxed |
No 10%
additional tax on early distribution |
Interest not taxed |
Employer benefits not taxed |
Can deduct expenses |
| What is the annual limit? |
$2,000 contribution per beneficiary |
None |
Amount of qualified
education expenses |
Amount of qualified
education expenses |
$5,250 exclusion |
Amount of qualifying work-related education expenses |
| What expenses qualify besides tuition and required enrollment fees? |
Books
Supplies
Equipment
Expenses for special needs services
Payments to QTP
Higher education:
Room & board if
at least half-time
student
Elem/sec (K–12) education:
Tutoring
Room & board
Uniforms
Transportation
Computer
access
Supplementary
expenses |
Books
Supplies
Equipment
Room & board if
at least half-time student
Expenses for special needs services
Computer technology, equipment, and Internet access
(2009 and 2010) |
Books
Supplies
Equipment
Room & board if
at least half-time student
Expenses for special needs services |
Payments to Coverdell ESA
Payments to QTP |
Books
Supplies
Equipment |
Transportation
Travel
Other necessary expenses |
| What education qualifies? |
Undergraduate & graduate
K–12 |
Undergraduate & graduate |
Undergraduate & graduate |
Undergraduate & graduate |
Undergraduate & graduate |
Required by employer or law to keep present job, salary, status
Maintain or improve job skills |
| What are some of the other conditions that apply? |
Assets must be distributed at age 30 unless special
needs beneficiary |
No other conditions |
No other conditions |
Applies only to qualified series
EE bonds issued after 1989 or series I bonds |
No other conditions |
Cannot be to
meet minimum educational requirements of present trade/business
Cannot qualify
you for new trade/business |
| In what income range do benefits phase out? |
$95,000 – $110,000
$190,000 – $220,000 for
joint returns |
No phaseout |
No phaseout |
$69,950 – $84,950
$104,900 – $134,900 for
joint and qualifying widow(er) returns |
No phaseout |
May be subject to limit on itemized deductions |
| † Any nontaxable distribution is limited to the amount that does not exceed qualified education expenses. |
The education benefits included in this publication were enacted over many years, leading to a number of common terms being defined differently from one benefit to the next. For example, an eligible educational institution means one thing when determining if earnings from a Coverdell education savings account are not taxable and something else when determining if a scholarship or fellowship is not taxable.
For each term listed below that has more than one definition, the definition for each education benefit is listed.
Academic period: A semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. If an educational institution uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period.
Adjusted qualified education expenses (AQEE): Qualified education expenses (defined later) reduced by any tax-free educational assistance, such as a tax-free scholarship or employer-provided educational assistance. They must also be reduced by any qualified education expenses deducted elsewhere on your return, used to determine an education credit or other benefit, or used to determine a tax-free distribution. For information on a specific benefit, see the appropriate chapter in this publication.
Candidate for a degree: A student who meets either of the following requirements.
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Attends a primary or secondary school or pursues a degree at a college or university, or
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Attends an accredited educational institution that is authorized to provide:
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A program that is acceptable for full credit toward a bachelor's or higher degree, or
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A program of training to prepare students for gainful employment in a recognized occupation.
Designated beneficiary: The individual named in the document creating the account/plan who is to receive the benefit of the funds in the account/plan.
Eligible educational institution:
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American opportunity credit. Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. |
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Coverdell education savings account (ESA). Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Also included is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. |
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Education savings bond program. Same as American opportunity credit in this category. |
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Hope credit. Same as American opportunity credit in this category. |
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IRA, early distributions from. Same as American opportunity credit in this category. |
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Lifetime learning credit. Same as American opportunity credit in this category. |
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Qualified tuition program (QTP). Same as American opportunity credit in this category. |
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Scholarships and fellowships. An institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. |
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Student loan, cancellation of. Same as Scholarships and fellowships in this category. |
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Student loan interest deduction. Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Also included is an institution that conducts 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. |
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Tuition and fees deduction. Same as American opportunity credit in this category. |
Eligible student:
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American opportunity credit.
A student who meets all of the following requirements for the tax year for which the credit is being determined. |
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1. |
Did not have expenses that were used to figure an American opportunity or Hope credit in any 4 earlier tax years. |
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Had not completed the first 4 years of postsecondary education (generally the freshman through senior years). |
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3. |
For at least one academic period beginning in the tax year, was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. |
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4. |
Was free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year. |
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Hope credit. A student who meets all of the following requirements for the tax year for which the credit is being determined. |
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1. |
Did not have expenses that were used to figure a Hope credit in any 2 earlier tax years. |
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Had not completed the first 2 years of postsecondary education (generally freshman and sophomore years). |
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For at least one academic period beginning in the tax year, was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. |
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Was free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year. |
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Lifetime learning credit.
A student who is enrolled in one or more courses at an eligible educational institution. |
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Student loan interest deduction. A student who was enrolled at least half-time in a program leading to a postsecondary degree, certificate, or other recognized educational credential at an eligible educational institution. |
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Tuition and fees deduction.
A student who has either a high school diploma or a General Educational Development (GED) credential, and who is enrolled in one or more courses at an eligible educational institution. |
Half-time student: A student who is enrolled for at least half the full-time academic work load for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled.
Modified adjusted gross income (MAGI):
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American opportunity credit. Adjusted gross income (AGI) as figured on the federal income tax return, modified by adding back any: |
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1. |
Foreign earned income exclusion, |
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2. |
Foreign housing exclusion, |
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