Screen Educate - Education Payments, Adjustments, Credits (1040)

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Overview

Use this screen to enter information regarding eligible education payments, adjustments, and credits.

Electronic filing note: When entering data for electronic returns, you need to follow specific IRS guidelines to ensure that the return will not be rejected. For details, see the "data-entry guidelines" section of General and input screen-specific topics for electronic returns.

See also

Source data entry

The UltraTax CS Source Data Entry utility enables you to enter data on facsimile versions of forms your clients submit for the preparation of their tax returns. Once the facsimile forms are completed, you can export the data to UltraTax CS and transfer it into your client data files via the data sharing feature. The following facsimiles are available in the Source Data Entry utility.

W-2 Series 1098 Series 1099 Series Schedule K-1 and Other
W-2
W-2G
1098
1098-E
1098-T
1098-C
1099-B
1099-B Brokerage
1099-C
1099-Div
1099-G
1099-Int
1099-K
1099-LTC
1099-Misc
1099-Q
1099-R
RRB-1099
SSA-1099
1099-S
1099-SA
1099-PATR
1099-OID
1099-A
RRB-1099-R
Sch K-1 (1041)
Sch K-1 (1065)
Sch K-1 (1120S)
1097-BTC
2439
5498-SA
Charitable Contributions
Medical Expenses

UltraTax CS cannot determine if amounts entered via the Source Data Entry utility duplicate data that was included in the return from another source. Do not use the Source Data Entry utility to enter data that would also be imported from a general ledger application, shared from Creative Solutions Accounting (CSA) or Accounting CS (ACS), proforma'd from prior-year information, transferred from Fixed Assets CS, or imported from a web client organizer. For more information, see UltraTax CS Source Data Entry frequently asked questions: How does data imported from other sources affect amounts entered via Source Data Entry?

Form 8815 - Exclusion of Interest from Series EE and I Bonds

Use this section to enter information regarding interest income from Series EE and I U.S. savings bonds issued after 1989 and cashed in 2012 for taxpayers with qualified education expenses.

Note: To qualify for the exclusion, the bonds must be series EE or I U.S. savings bonds issued after 1989. The bonds must also be issued in the taxpayers name (or jointly, if married) and the taxpayer (spouse) must be 24 years of age or older at the time of issuance.

Student Loan Interest Deduction

Use this section to enter information needed to complete the Student Loan Interest Deduction Worksheet. The student interest deduction calculated on the worksheet automatically transfers to Page 1 of the return.

Tuition and Fees Deduction and Education Credits

Use this section to enter eligible student information for the Tuition and Fees Deduction, the American Opportunity Credit, and the Lifetime Learning Credit.

The number of columns in the Eligible student information statement dialog on Screen Educate now matches the fields from the Form 1098-T, Tuition Statement, (or an acceptable substitute) that is issued by an educational institution to each enrolled student. The IRS redesigned Form 8863, Education Credits, in reaction to an internal government audit, which requires more information reporting to deter fraud for refundable credits.

Per Form 1098-T instructions, institutions may choose to report either payments received during the calendar year in box 1 (Pymt Rec'd Qual Tuition column) or amounts billed during the calendar year in box 2 (Amt Billed Qual Tuition). The amount shown in box 1 or 2 may represent an amount other than the amount actually paid in 2012. UltraTax will use the sum of box 1 and box 2 for Form 8863 purposes as noted below. Enter only the amount paid in 2012 in the Pymt Rec'd Qual Tuition column or Amt Billed Qual Tuition column if it differs from what was reported on the Form 1098-T. Do not enter the exact same qualified expense amounts in both columns. Amounts for books and fees that meet the requirements for qualified education expenses should be entered as follows:

Notes

  • Non-institution expenses are only applicable when claiming the American Opportunity Credit. Distinguishing that expenses were purchased somewhere other than the institution is important during the education optimization process.
  • UltraTax CS calculates Form 8863, line 27, American Opportunity Credit, Adjusted qualified education expenses for each student as follows: Pymt Rec'd Qual Tuition + Amt Billed Qual Tuition - Scholarships and Grants - Ins Contract Reimb + Non-institution Expenses limited to $4,000
  • UltraTax CS calculates Form 8863, line 31, Lifetime Learning Credit, Adjusted qualified education expenses for each student as follows: Pymt Rec'd Qual Tuition + Amt Billed Qual Tuition - Scholarships and Grants - Ins Contract Reimb

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