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Colorado State Tax Return Online

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Colorado State Tax Return Online

Colorado state tax return online 7. Colorado state tax return online   Coverdell Education Savings Account (ESA) Table of Contents Introduction What Is a Coverdell ESAQualified Education Expenses ContributionsContribution Limits Additional Tax on Excess Contributions Rollovers and Other TransfersRollovers Changing the Designated Beneficiary Transfer Because of Divorce DistributionsTax-Free Distributions Taxable Distributions When Assets Must Be Distributed Introduction If your modified adjusted gross income (MAGI) is less than $110,000 ($220,000 if filing a joint return), you may be able to establish a Coverdell ESA to finance the qualified education expenses of a designated beneficiary. Colorado state tax return online For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return. Colorado state tax return online There is no limit on the number of separate Coverdell ESAs that can be established for a designated beneficiary. Colorado state tax return online However, total contributions for the beneficiary in any year cannot be more than $2,000, no matter how many accounts have been established. Colorado state tax return online See Contributions , later. Colorado state tax return online This benefit applies not only to higher education expenses, but also to elementary and secondary education expenses. Colorado state tax return online What is the tax benefit of the Coverdell ESA. Colorado state tax return online   Contributions to a Coverdell ESA are not deductible, but amounts deposited in the account grow tax free until distributed. Colorado state tax return online   If, for a year, distributions from an account are not more than a designated beneficiary's qualified education expenses at an eligible educational institution, the beneficiary will not owe tax on the distributions. Colorado state tax return online See Tax-Free Distributions , later. Colorado state tax return online    Table 7-1 summarizes the main features of the Coverdell ESA. Colorado state tax return online Table 7-1. Colorado state tax return online Coverdell ESA at a Glance Do not rely on this table alone. Colorado state tax return online It provides only general highlights. Colorado state tax return online See the text for definitions of terms in bold type and for more complete explanations. Colorado state tax return online Question Answer What is a Coverdell ESA? A savings account that is set up to pay the qualified education expenses of a designated beneficiary. Colorado state tax return online Where can it be established? It can be opened in the United States at any bank or other IRS-approved entity that offers Coverdell ESAs. Colorado state tax return online Who can have a Coverdell ESA? Any beneficiary who is under age 18 or is a special needs beneficiary. Colorado state tax return online Who can contribute to a Coverdell ESA? Generally, any individual (including the beneficiary) whose modified adjusted gross income for the year is less than $110,000 ($220,000 in the case of a joint return). Colorado state tax return online Are distributions tax free? Yes, if the distributions are not more than the beneficiary's adjusted qualified education expenses for the year. Colorado state tax return online What Is a Coverdell ESA A Coverdell ESA is a trust or custodial account created or organized in the United States only for the purpose of paying the qualified education expenses of the Designated beneficiary (defined later) of the account. Colorado state tax return online When the account is established, the designated beneficiary must be under age 18 or a special needs beneficiary. Colorado state tax return online To be treated as a Coverdell ESA, the account must be designated as a Coverdell ESA when it is created. Colorado state tax return online The document creating and governing the account must be in writing and must satisfy the following requirements. Colorado state tax return online The trustee or custodian must be a bank or an entity approved by the IRS. Colorado state tax return online The document must provide that the trustee or custodian can only accept a contribution that meets all of the following conditions. Colorado state tax return online The contribution is in cash. Colorado state tax return online The contribution is made before the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. Colorado state tax return online The contribution would not result in total contributions for the year (not including rollover contributions) being more than $2,000. Colorado state tax return online Money in the account cannot be invested in life insurance contracts. Colorado state tax return online Money in the account cannot be combined with other property except in a common trust fund or common investment fund. Colorado state tax return online The balance in the account generally must be distributed within 30 days after the earlier of the following events. Colorado state tax return online The beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary. Colorado state tax return online The beneficiary's death. Colorado state tax return online Qualified Education Expenses Generally, these are expenses required for the enrollment or attendance of the designated beneficiary at an eligible educational institution. Colorado state tax return online For purposes of Coverdell ESAs, the expenses can be either qualified higher education expenses or qualified elementary and secondary education expenses. Colorado state tax return online Designated beneficiary. Colorado state tax return online   This is the individual named in the document creating the trust or custodial account to receive the benefit of the funds in the account. Colorado state tax return online Contributions to a qualified tuition program (QTP). Colorado state tax return online   A contribution to a QTP is a qualified education expense if the contribution is on behalf of the designated beneficiary of the Coverdell ESA. Colorado state tax return online In the case of a change in beneficiary, this is a qualified expense only if the new beneficiary is a family member of that designated beneficiary. Colorado state tax return online See chapter 8, Qualified Tuition Program . Colorado state tax return online Eligible Educational Institution For purposes of Coverdell ESAs, an eligible educational institution can be either an eligible postsecondary school or an eligible elementary or secondary school. Colorado state tax return online Eligible postsecondary school. Colorado state tax return online   This is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Colorado state tax return online S. Colorado state tax return online Department of Education. Colorado state tax return online It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Colorado state tax return online The educational institution should be able to tell you if it is an eligible educational institution. Colorado state tax return online   Certain educational institutions located outside the United States also participate in the U. Colorado state tax return online S. Colorado state tax return online Department of Education's Federal Student Aid (FSA) programs. Colorado state tax return online Eligible elementary or secondary school. Colorado state tax return online   This is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law. Colorado state tax return online Qualified Higher Education Expenses These are expenses related to enrollment or attendance at an eligible postsecondary school. Colorado state tax return online As shown in the following list, to be qualified, some of the expenses must be required by the school and some must be incurred by students who are enrolled at least half-time. Colorado state tax return online The following expenses must be required for enrollment or attendance of a designated beneficiary at an eligible postsecondary school. Colorado state tax return online Tuition and fees. Colorado state tax return online Books, supplies, and equipment. Colorado state tax return online Expenses for special needs services needed by a special needs beneficiary must be incurred in connection with enrollment or attendance at an eligible postsecondary school. Colorado state tax return online Expenses for room and board must be incurred by students who are enrolled at least half-time (defined below). Colorado state tax return online The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts. Colorado state tax return online The allowance for room and board, as determined by the school, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Colorado state tax return online The actual amount charged if the student is residing in housing owned or operated by the school. Colorado state tax return online Half-time student. Colorado state tax return online   A student is enrolled “at least half-time” if he or she 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. Colorado state tax return online Qualified Elementary and Secondary Education Expenses These are expenses related to enrollment or attendance at an eligible elementary or secondary school. Colorado state tax return online As shown in the following list, to be qualified, some of the expenses must be required or provided by the school. Colorado state tax return online There are special rules for computer-related expenses. Colorado state tax return online The following expenses must be incurred by a designated beneficiary in connection with enrollment or attendance at an eligible elementary or secondary school. Colorado state tax return online Tuition and fees. Colorado state tax return online Books, supplies, and equipment. Colorado state tax return online Academic tutoring. Colorado state tax return online Special needs services for a special needs beneficiary. Colorado state tax return online The following expenses must be required or provided by an eligible elementary or secondary school in connection with attendance or enrollment at the school. Colorado state tax return online Room and board. Colorado state tax return online Uniforms. Colorado state tax return online Transportation. Colorado state tax return online Supplementary items and services (including extended day programs). Colorado state tax return online The purchase of computer technology, equipment, or Internet access and related services is a qualified elementary and secondary education expense if it is to be used by the beneficiary and the beneficiary's family during any of the years the beneficiary is in elementary or secondary school. Colorado state tax return online (This does not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature. Colorado state tax return online ) Contributions Any individual (including the designated beneficiary) can contribute to a Coverdell ESA if the individual's MAGI (defined later under Contribution Limits ) for the year is less than $110,000. Colorado state tax return online For individuals filing joint returns, that amount is $220,000. Colorado state tax return online Organizations, such as corporations and trusts, can also contribute to Coverdell ESAs. Colorado state tax return online There is no requirement that an organization's income be below a certain level. Colorado state tax return online Contributions must meet all of the following requirements. Colorado state tax return online They must be in cash. Colorado state tax return online They cannot be made after the beneficiary reaches age 18, unless the beneficiary is a special needs beneficiary. Colorado state tax return online They must be made by the due date of the contributor's tax return (not including extensions). Colorado state tax return online Contributions can be made to one or several Coverdell ESAs for the same designated beneficiary provided that the total contributions are not more than the contribution limits (defined later) for a year. Colorado state tax return online Contributions can be made, without penalty, to both a Coverdell ESA and a QTP in the same year for the same beneficiary. Colorado state tax return online Table 7-2 summarizes many of the features of contributing to a Coverdell ESA. Colorado state tax return online When contributions considered made. Colorado state tax return online   Contributions made to a Coverdell ESA for the preceding tax year are considered to have been made on the last day of the preceding year. Colorado state tax return online They must be made by the due date (not including extensions) for filing your return for the preceding year. Colorado state tax return online   For example, if you make a contribution to a Coverdell ESA in February 2014, and you designate it as a contribution for 2013, you are considered to have made that contribution on December 31, 2013. Colorado state tax return online Contribution Limits There are two yearly limits: One on the total amount that can be contributed for each designated beneficiary in any year, and One on the amount that any individual can contribute for any one designated beneficiary for a year. Colorado state tax return online Limit for each designated beneficiary. Colorado state tax return online   For 2013, the total of all contributions to all Coverdell ESAs set up for the benefit of any one designated beneficiary cannot be more than $2,000. Colorado state tax return online This includes contributions (other than rollovers) to all the beneficiary's Coverdell ESAs from all sources. Colorado state tax return online Rollovers are discussed under Rollovers and Other Transfers , later. Colorado state tax return online Example. Colorado state tax return online When Maria Luna was born in 2012, three separate Coverdell ESAs were set up for her, one by her parents, one by her grandfather, and one by her aunt. Colorado state tax return online In 2013, the total of all contributions to Maria's three Coverdell ESAs cannot be more than $2,000. Colorado state tax return online For example, if her grandfather contributed $2,000 to one of her Coverdell ESAs, no one else could contribute to any of her three accounts. Colorado state tax return online Or, if her parents contributed $1,000 and her aunt $600, her grandfather or someone else could contribute no more than $400. Colorado state tax return online These contributions could be put into any of Maria's Coverdell ESA accounts. Colorado state tax return online Limit for each contributor. Colorado state tax return online   Generally, you can contribute up to $2,000 for each designated beneficiary for 2013. Colorado state tax return online This is the most you can contribute for the benefit of any one beneficiary for the year, regardless of the number of Coverdell ESAs set up for the beneficiary. Colorado state tax return online Example. Colorado state tax return online The facts are the same as in the previous example except that Maria Luna's older brother, Edgar, also has a Coverdell ESA. Colorado state tax return online If their grandfather contributed $2,000 to Maria's Coverdell ESA in 2013, he could also contribute $2,000 to Edgar's Coverdell ESA. Colorado state tax return online Reduced limit. Colorado state tax return online   Your contribution limit may be reduced. Colorado state tax return online If your MAGI (defined on this page) is between $95,000 and $110,000 (between $190,000 and $220,000 if filing a joint return), the $2,000 limit for each designated beneficiary is gradually reduced (see Figuring the limit , later). Colorado state tax return online If your MAGI is $110,000 or more ($220,000 or more if filing a joint return), you cannot contribute to anyone's Coverdell ESA. Colorado state tax return online Table 7-2. Colorado state tax return online Coverdell ESA Contributions at a Glance Do not rely on this table alone. Colorado state tax return online It provides only general highlights. Colorado state tax return online See the text for more complete explanations. Colorado state tax return online Question Answer Are contributions deductible? No. Colorado state tax return online What is the annual contribution limit per designated beneficiary? $2,000 for each designated beneficiary. Colorado state tax return online What if more than one Coverdell ESA has been opened for the same designated beneficiary? The annual contribution limit is $2,000 for each beneficiary, no matter how many Coverdell ESAs are set up for that beneficiary. Colorado state tax return online What if more than one individual makes contributions for the same designated beneficiary? The annual contribution limit is $2,000 per beneficiary, no matter how many individuals contribute. Colorado state tax return online Can contributions other than cash be made to a Coverdell ESA? No. Colorado state tax return online When must contributions stop? No contributions can be made to a beneficiary's Coverdell ESA after he or she reaches age 18, unless the beneficiary is a special needs beneficiary. Colorado state tax return online Modified adjusted gross income (MAGI). Colorado state tax return online   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return. Colorado state tax return online MAGI when using Form 1040A. Colorado state tax return online   If you file Form 1040A, your MAGI is the AGI on line 22 of that form. Colorado state tax return online MAGI when using Form 1040. Colorado state tax return online   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. Colorado state tax return online MAGI when using Form 1040NR. Colorado state tax return online   If you file Form 1040NR, your MAGI is the AGI on line 36 of that form. Colorado state tax return online MAGI when using Form 1040NR-EZ. Colorado state tax return online   If you file Form 1040NR-EZ, your MAGI is the AGI on line 10 of that form. Colorado state tax return online   If you have any of these adjustments, you can use Worksheet 7-1. Colorado state tax return online MAGI for a Coverdell ESA , later, to figure your MAGI for Form 1040. Colorado state tax return online Worksheet 7-1. Colorado state tax return online MAGI for a Coverdell ESA 1. Colorado state tax return online Enter your adjusted gross income  (Form 1040, line 38)   1. Colorado state tax return online   2. Colorado state tax return online Enter your foreign earned income exclusion and/or housing exclusion (Form 2555, line 45, or Form 2555-EZ, line 18)   2. Colorado state tax return online       3. Colorado state tax return online Enter your foreign housing deduction (Form 2555, line 50)   3. Colorado state tax return online         4. Colorado state tax return online Enter the amount of income from Puerto Rico you are excluding   4. Colorado state tax return online       5. Colorado state tax return online Enter the amount of income from American Samoa you are excluding (Form 4563, line 15)   5. Colorado state tax return online       6. Colorado state tax return online Add lines 2, 3, 4, and 5   6. Colorado state tax return online   7. Colorado state tax return online Add lines 1 and 6. Colorado state tax return online This is your  modified adjusted gross income   7. Colorado state tax return online   Figuring the limit. Colorado state tax return online    To figure the limit on the amount you can contribute for each designated beneficiary, multiply $2,000 by a fraction. Colorado state tax return online The numerator (top number) is your MAGI minus $95,000 ($190,000 if filing a joint return). Colorado state tax return online The denominator (bottom number) is $15,000 ($30,000 if filing a joint return). Colorado state tax return online Subtract the result from $2,000. Colorado state tax return online This is the amount you can contribute for each beneficiary. Colorado state tax return online You can use Worksheet 7-2. Colorado state tax return online Coverdell ESA Contribution Limit to figure the limit on contributions. Colorado state tax return online    Worksheet 7-2. Colorado state tax return online Coverdell ESA Contribution Limit 1. Colorado state tax return online Maximum contribution   1. Colorado state tax return online $2,000 2. Colorado state tax return online Enter your modified adjusted gross income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. Colorado state tax return online   3. Colorado state tax return online Enter $190,000 if married filing jointly; $95,000 for all other filers   3. Colorado state tax return online   4. Colorado state tax return online Subtract line 3 from line 2. Colorado state tax return online If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. Colorado state tax return online   5. Colorado state tax return online Enter $30,000 if married filing jointly; $15,000 for all other filers   5. Colorado state tax return online     Note. Colorado state tax return online If the amount on line 4 is greater than or equal to the amount on line 5, stop here. Colorado state tax return online You are not allowed to contribute to a Coverdell ESA for 2013. Colorado state tax return online       6. Colorado state tax return online Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. Colorado state tax return online . Colorado state tax return online 7. Colorado state tax return online Multiply line 1 by line 6   7. Colorado state tax return online   8. Colorado state tax return online Subtract line 7 from line 1   8. Colorado state tax return online   Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. Colorado state tax return online Example. Colorado state tax return online Paul, who is single, had a MAGI of $96,500 for 2013. Colorado state tax return online Paul can contribute up to $1,800 in 2013 for each beneficiary, as shown in the illustrated Worksheet 7-2, Coverdell ESA Contribution Limit–Illustrated. Colorado state tax return online Worksheet 7-2. Colorado state tax return online Coverdell ESA Contribution Limit—Illustrated 1. Colorado state tax return online Maximum contribution   1. Colorado state tax return online $2,000 2. Colorado state tax return online Enter your modified adjusted gross  income (MAGI) for purposes of figuring the contribution limit to a Coverdell ESA (see definition or Worksheet 7-1, earlier)   2. Colorado state tax return online 96,500 3. Colorado state tax return online Enter $190,000 if married filing jointly; $95,000 for all other filers   3. Colorado state tax return online 95,000 4. Colorado state tax return online Subtract line 3 from line 2. Colorado state tax return online If zero or less, enter -0- on line 4, skip lines 5 through 7, and enter $2,000 on line 8   4. Colorado state tax return online 1,500 5. Colorado state tax return online Enter $30,000 if married filing jointly; $15,000 for all other filers   5. Colorado state tax return online 15,000   Note. Colorado state tax return online If the amount on line 4 is greater than or equal to the amount on line 5,  stop here. Colorado state tax return online You are not allowed to  contribute to a Coverdell ESA for 2013. Colorado state tax return online       6. Colorado state tax return online Divide line 4 by line 5 and enter the result as a decimal (rounded to at least 3 places)   6. Colorado state tax return online . Colorado state tax return online 100 7. Colorado state tax return online Multiply line 1 by line 6   7. Colorado state tax return online 200 8. Colorado state tax return online Subtract line 7 from line 1   8. Colorado state tax return online 1,800 Note: The total Coverdell ESA contributions from all sources for the designated beneficiary during the tax year may not exceed $2,000. Colorado state tax return online Additional Tax on Excess Contributions The beneficiary must pay a 6% excise tax each year on excess contributions that are in a Coverdell ESA at the end of the year. Colorado state tax return online Excess contributions are the total of the following two amounts. Colorado state tax return online Contributions to any designated beneficiary's Coverdell ESA for the year that are more than $2,000 (or, if less, the total of each contributor's limit for the year, as discussed earlier). Colorado state tax return online Excess contributions for the preceding year, reduced by the total of the following two amounts: Distributions (other than those rolled over as discussed later) during the year, and The contribution limit for the current year minus the amount contributed for the current year. Colorado state tax return online Exceptions. Colorado state tax return online   The excise tax does not apply if excess contributions made during 2013 (and any earnings on them) are distributed before the first day of the sixth month of the following tax year (June 1, 2014, for a calendar year taxpayer). Colorado state tax return online   However, you must include the distributed earnings in gross income for the year in which the excess contribution was made. Colorado state tax return online You should receive Form 1099-Q, Payments From Qualified Education Programs, from each institution from which excess contributions were distributed. Colorado state tax return online Box 2 of that form will show the amount of earnings on your excess contributions. Colorado state tax return online Code “2” or “3” entered in the blank box below boxes 5 and 6 indicate the year in which the earnings are taxable. Colorado state tax return online See Instructions for Recipient on the back of copy B of your Form 1099-Q. Colorado state tax return online Enter the amount of earnings on line 21 of Form 1040 (or Form 1040NR) for the applicable tax year. Colorado state tax return online For more information, see Taxable Distributions , later. Colorado state tax return online   The excise tax does not apply to any rollover contribution. Colorado state tax return online Note. Colorado state tax return online Contributions made in one year for the preceding tax year are considered to have been made on the last day of the preceding year. Colorado state tax return online Example. Colorado state tax return online In 2012, Greta's parents and grandparents contributed a total of $2,300 to Greta's Coverdell ESA— an excess contribution of $300. Colorado state tax return online Because Greta did not withdraw the excess before June 1, 2013, she had to pay an additional tax of $18 (6% × $300) when she filed her 2012 tax return. Colorado state tax return online In 2013, excess contributions of $500 were made to Greta's account, however, she withdrew $250 from that account to use for qualified education expenses. Colorado state tax return online Using the steps shown earlier under Additional Tax on Excess Contributions , Greta figures the excess contribution in her account at the end of 2013 as follows. Colorado state tax return online (1)   $500 excess contributions made in 2013     + (2)   $300 excess contributions in ESA at end of 2012     − (2a)   $250 distribution during 2013         $550 excess at end of 2013   × 6%=$33           If Greta limits 2014 contributions to $1,450 ($2,000 maximum allowed − $550 excess contributions from 2013), she will not owe any additional tax in 2014 for excess contributions. Colorado state tax return online Figuring and reporting the additional tax. Colorado state tax return online   You figure this excise tax in Part V of Form 5329. Colorado state tax return online Report the additional tax on Form 1040, line 58 (or Form 1040NR, line 56). Colorado state tax return online Rollovers and Other Transfers Assets can be rolled over from one Coverdell ESA to another or the designated beneficiary can be changed. Colorado state tax return online The beneficiary's interest can be transferred to a spouse or former spouse because of divorce. Colorado state tax return online Rollovers Any amount distributed from a Coverdell ESA is not taxable if it is rolled over to another Coverdell ESA for the benefit of the same beneficiary or a member of the beneficiary's family (including the beneficiary's spouse) who is under age 30. Colorado state tax return online This age limitation does not apply if the new beneficiary is a special needs beneficiary. Colorado state tax return online An amount is rolled over if it is paid to another Coverdell ESA within 60 days after the date of the distribution. Colorado state tax return online Do not report qualifying rollovers (those that meet the above criteria) anywhere on Form 1040 or 1040NR. Colorado state tax return online These are not taxable distributions. Colorado state tax return online Members of the beneficiary's family. Colorado state tax return online   For these purposes, the beneficiary's family includes the beneficiary's spouse and the following other relatives of the beneficiary. Colorado state tax return online Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them. Colorado state tax return online Brother, sister, stepbrother, or stepsister. Colorado state tax return online Father or mother or ancestor of either. Colorado state tax return online Stepfather or stepmother. Colorado state tax return online Son or daughter of a brother or sister. Colorado state tax return online Brother or sister of father or mother. Colorado state tax return online Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Colorado state tax return online The spouse of any individual listed above. Colorado state tax return online First cousin. Colorado state tax return online Example. Colorado state tax return online When Aaron graduated from college last year he had $5,000 left in his Coverdell ESA. Colorado state tax return online He wanted to give this money to his younger sister, who was still in high school. Colorado state tax return online In order to avoid paying tax on the distribution of the amount remaining in his account, Aaron contributed the same amount to his sister's Coverdell ESA within 60 days of the distribution. Colorado state tax return online Only one rollover per Coverdell ESA is allowed during the 12-month period ending on the date of the payment or distribution. Colorado state tax return online This rule does not apply to the rollover of a military death gratuity or payment from Servicemembers' Group Life Insurance (SGLI). Colorado state tax return online Military death gratuity. Colorado state tax return online   If you received a military death gratuity or a payment from Servicemembers' Group Life Insurance (SGLI), you may roll over all or part of the amount received to one or more Coverdell ESAs for the benefit of members of the beneficiary's family (see Members of the beneficiary's family , earlier). Colorado state tax return online Such payments are made to an eligible survivor upon the death of a member of the armed forces. Colorado state tax return online The contribution to a Coverdell ESA from survivor benefits received cannot be made later than 1 year after the date on which you receive the gratuity or SGLI payment. Colorado state tax return online   This rollover contribution is not subject to (but is in addition to) the contribution limits discussed earlier under Contribution Limits . Colorado state tax return online The amount you roll over cannot exceed the total survivor benefits you received, reduced by contributions from these benefits to a Roth IRA or other Coverdell ESAs. Colorado state tax return online   The amount contributed from the survivor benefits is treated as part of your basis (cost) in the Coverdell ESA, and will not be taxed when distributed. Colorado state tax return online See Distributions , later. Colorado state tax return online The limit of one rollover per Coverdell ESA during a 12-month period does not apply to a military death gratuity or SGLI payment. Colorado state tax return online Changing the Designated Beneficiary The designated beneficiary can be changed. Colorado state tax return online See Members of the beneficiary's family , earlier. Colorado state tax return online There are no tax consequences if, at the time of the change, the new beneficiary is under age 30 or is a special needs beneficiary. Colorado state tax return online Example. Colorado state tax return online Assume the same situation for Aaron as in the last example (see Rollovers , earlier). Colorado state tax return online Instead of closing his Coverdell ESA and paying the distribution into his sister's Coverdell ESA, Aaron could have instructed the trustee of his account to simply change the name of the beneficiary on his account to that of his sister. Colorado state tax return online Transfer Because of Divorce If a spouse or former spouse receives a Coverdell ESA under a divorce or separation instrument, it is not a taxable transfer. Colorado state tax return online After the transfer, the spouse or former spouse treats the Coverdell ESA as his or her own. Colorado state tax return online Example. Colorado state tax return online In their divorce settlement, Peg received her ex-husband's Coverdell ESA. Colorado state tax return online In this process, the account was transferred into her name. Colorado state tax return online Peg now treats the funds in this Coverdell ESA as if she were the original owner. Colorado state tax return online Distributions The designated beneficiary of a Coverdell ESA can take a distribution at any time. Colorado state tax return online Whether the distributions are tax free depends, in part, on whether the distributions are equal to or less than the amount of Adjusted qualified education expenses (defined later) that the beneficiary has in the same tax year. Colorado state tax return online See Table 7-3, Coverdell ESA Distributions at a Glance, for highlights. Colorado state tax return online Table 7-3. Colorado state tax return online Coverdell ESA Distributions at a Glance Do not rely on this table alone. Colorado state tax return online It provides only general highlights. Colorado state tax return online See the text for definitions of terms in bold type and for more complete explanations. Colorado state tax return online Question Answer Is a distribution from a Coverdell ESA to pay for a designated beneficiary's qualified education expenses tax free? Generally, yes, to the extent the amount of the distribution is not more than the designated beneficiary's adjusted qualified education expenses. Colorado state tax return online After the designated beneficiary completes his or her education at an eligible educational institution, can amounts remaining in the Coverdell ESA be distributed? Yes. Colorado state tax return online Amounts must be distributed when the designated beneficiary reaches age 30, unless he or she is a special needs beneficiary. Colorado state tax return online Also, certain transfers to members of the beneficiary's family are permitted. Colorado state tax return online Does the designated beneficiary need to be enrolled for a minimum number of courses to take a tax-free distribution? No. Colorado state tax return online Adjusted qualified education expenses. Colorado state tax return online   To determine if total distributions for the year are more than the amount of qualified education expenses, reduce total qualified education expenses by any tax-free educational assistance. Colorado state tax return online Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits 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), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Colorado state tax return online The amount you get by subtracting tax-free educational assistance from your total qualified education expenses is your adjusted qualified education expenses. Colorado state tax return online Tax-Free Distributions Generally, distributions are tax free if they are not more than the beneficiary's adjusted qualified education expenses for the year. Colorado state tax return online Do not report tax-free distributions (including qualifying rollovers) on your tax return. Colorado state tax return online Taxable Distributions A portion of the distributions is generally taxable to the beneficiary if the total distributions are more than the beneficiary's adjusted qualified education expenses for the year. Colorado state tax return online Excess distribution. Colorado state tax return online   This is the part of the total distribution that is more than the beneficiary's adjusted qualified education expenses for the year. Colorado state tax return online Earnings and basis. Colorado state tax return online   You will receive a Form 1099-Q for each of the Coverdell ESAs from which money was distributed in 2013. Colorado state tax return online The amount of your gross distribution will be shown in box 1. Colorado state tax return online For 2013, instead of dividing the gross distribution between your earnings (box 2) and your basis (already-taxed amount) (box 3), the payer or trustee may report the fair market value (account balance) of the Coverdell ESA as of December 31, 2013. Colorado state tax return online This will be shown in the blank box below boxes 5 and 6. Colorado state tax return online   The amount contributed from survivor benefits (see Military death gratuity , earlier) is treated as part of your basis and will not be taxed when distributed. Colorado state tax return online Figuring the Taxable Portion of a Distribution The taxable portion is the amount of the excess distribution that represents earnings that have accumulated tax free in the account. Colorado state tax return online Figure the taxable portion for 2013 as shown in the following steps. Colorado state tax return online Multiply the total amount distributed by a fraction. Colorado state tax return online The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the value (balance) of the account at the end of 2013 plus the amount distributed during 2013. Colorado state tax return online Subtract the amount figured in (1) from the total amount distributed during 2013. Colorado state tax return online The result is the amount of earnings included in the distribution(s). Colorado state tax return online Multiply the amount of earnings figured in (2) by a fraction. Colorado state tax return online The numerator is the adjusted qualified education expenses paid during 2013 and the denominator is the total amount distributed during 2013. Colorado state tax return online Subtract the amount figured in (3) from the amount figured in (2). Colorado state tax return online The result is the amount the beneficiary must include in income. Colorado state tax return online The taxable amount must be reported on Form 1040 or Form 1040NR, line 21. Colorado state tax return online Example. Colorado state tax return online You received an $850 distribution from your Coverdell ESA, to which $1,500 had been contributed before 2013. Colorado state tax return online There were no contributions in 2013. Colorado state tax return online This is your first distribution from the account, so your basis in the account on December 31, 2012, was $1,500. Colorado state tax return online The value (balance) of your account on December 31, 2013, was $950. Colorado state tax return online You had $700 of adjusted qualified education expenses (AQEE) for the year. Colorado state tax return online Using the steps in Figuring the Taxable Portion of a Distribution , earlier, figure the taxable portion of your distribution as follows. Colorado state tax return online   1. Colorado state tax return online $850 (distribution) × $1,500 basis + $0 contributions  $950 value + $850 distribution       =$708 (basis portion of distribution)     2. Colorado state tax return online $850 (distribution)−$708 (basis portion of distribution)     =$142 (earnings included in distribution)   3. Colorado state tax return online $142 (earnings) × $700 AQEE  $850 distribution           =$117 (tax-free earnings)     4. Colorado state tax return online $142 (earnings)−$117 (tax-free earnings)=$25 (taxable earnings)                 You must include $25 in income as distributed earnings not used for qualified education expenses. Colorado state tax return online Report this amount on Form 1040, line 21, listing the type and amount of income on the dotted line. Colorado state tax return online Worksheet 7-3, Coverdell ESA–Taxable Distributions and Basis , at the end of this chapter, can help you figure your adjusted qualified education expenses, how much of your distribution must be included in income, and the remaining basis in your Coverdell ESA(s). Colorado state tax return online Coordination With American Opportunity and Lifetime Learning Credits The American opportunity or lifetime learning credit can be claimed in the same year the beneficiary takes a tax-free distribution from a Coverdell ESA, as long as the same expenses are not used for both benefits. Colorado state tax return online This means the beneficiary must reduce qualified higher education expenses by tax-free educational assistance, and then further reduce them by any expenses taken into account in determining an American opportunity or lifetime learning credit. Colorado state tax return online Example. Colorado state tax return online Derek Green had $5,800 of qualified higher education expenses for 2013, his first year in college. Colorado state tax return online He paid his college expenses from the following sources. Colorado state tax return online     Partial tuition scholarship (tax free) $1,500     Coverdell ESA distribution 1,000     Gift from parents 2,100     Earnings from part-time job 1,200           Of his $5,800 of qualified higher education expenses, $4,000 was tuition and related expenses that also qualified for an American opportunity credit. Colorado state tax return online Derek's parents claimed a $2,500 American opportunity credit (based on $4,000 expenses) on their tax return. Colorado state tax return online Before Derek can determine the taxable portion of his Coverdell ESA distribution, he must reduce his total qualified higher education expenses. Colorado state tax return online     Total qualified higher education expenses $5,800     Minus: Tax-free educational assistance −1,500     Minus: Expenses taken into account in  figuring American opportunity credit − 4,000     Equals: Adjusted qualified higher education  expenses (AQHEE) $ 300           Since the adjusted qualified higher education expenses ($300) are less than the Coverdell ESA distribution ($1,000), part of the distribution will be taxable. Colorado state tax return online The balance in Derek's account was $1,800 on December 31, 2013. Colorado state tax return online Prior to 2013, $2,100 had been contributed to this account. Colorado state tax return online Contributions for 2013 totaled $400. Colorado state tax return online Using the four steps outlined earlier, Derek figures the taxable portion of his distribution as shown below. Colorado state tax return online   1. Colorado state tax return online $1,000 (distribution) × $2,100 basis + $400 contributions  $1,800 value + $1,000 distribution           =$893 (basis portion of distribution)     2. Colorado state tax return online $1,000 (distribution)−$893 (basis portion of distribution)     = $107 (earnings included in distribution)   3. Colorado state tax return online $107 (earnings) × $300 AQHEE  $1,000 distribution       =$32 (tax-free earnings)     4. Colorado state tax return online $107 (earnings)−$32 (tax-free earnings)=$75 (taxable earnings)                 Derek must include $75 in income (Form 1040, line 21). Colorado state tax return online This is the amount of distributed earnings not used for adjusted qualified higher education expenses. Colorado state tax return online Coordination With Qualified Tuition Program (QTP) Distributions If a designated beneficiary receives distributions from both a Coverdell ESA and a QTP in the same year, and the total distribution is more than the beneficiary's adjusted qualified higher education expenses, those expenses must be allocated between the distribution from the Coverdell ESA and the distribution from the QTP before figuring how much of each distribution is taxable. Colorado state tax return online The following two examples illustrate possible allocations. Colorado state tax return online Example 1. Colorado state tax return online In 2013, Beatrice graduated from high school and began her first semester of college. Colorado state tax return online That year, she had $1,000 of qualified elementary and secondary education expenses (QESEE) for high school and $3,000 of qualified higher education expenses (QHEE) for college. Colorado state tax return online To pay these expenses, Beatrice withdrew $800 from her Coverdell ESA and $4,200 from her QTP. Colorado state tax return online No one claimed Beatrice as a dependent, nor was she eligible for an education credit. Colorado state tax return online She did not receive any tax-free educational assistance in 2013. Colorado state tax return online Beatrice must allocate her total qualified education expenses between the two distributions. Colorado state tax return online Beatrice knows that tax-free treatment will be available if she applies her $800 Coverdell ESA distribution toward her $1,000 of qualified education expenses for high school. Colorado state tax return online The qualified expenses are greater than the distribution, making the $800 Coverdell ESA distribution tax free. Colorado state tax return online Next, Beatrice matches her $4,200 QTP distribution to her $3,000 of QHEE, and finds she has an excess QTP distribution of $1,200 ($4,200 QTP − $3,000 QHEE). Colorado state tax return online She cannot use the extra $200 of high school expenses (from (1) above) against the QTP distribution because those expenses do not qualify a QTP for tax-free treatment. Colorado state tax return online Finally, Beatrice figures the taxable and tax-free portions of her QTP distribution based on her $3,000 of QHEE. Colorado state tax return online (See Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program for more information. Colorado state tax return online ) Example 2. Colorado state tax return online Assume the same facts as in Example 1 , except that Beatrice withdrew $1,800 from her Coverdell ESA and $3,200 from her QTP. Colorado state tax return online In this case, she allocates her qualified education expenses as follows. Colorado state tax return online Using the same reasoning as in Example 1, Beatrice matches $1,000 of her Coverdell ESA distribution to her $1,000 of QESEE—she has $800 of her distribution remaining. Colorado state tax return online Because higher education expenses can also qualify a Coverdell ESA distribution for tax-free treatment, Beatrice allocates her $3,000 of QHEE between the remaining $800 Coverdell ESA and the $3,200 QTP distributions ($4,000 total). Colorado state tax return online   $3,000 QHEE × $800 ESA distribution  $4,000 total distribution = $600 QHEE (ESA)     $3,000 QHEE × $3,200 QTP distribution  $4,000 total distribution = $2,400 QHEE (QTP)   Beatrice then figures the taxable part of her: Coverdell ESA distribution based on qualified education expenses of $1,600 ($1,000 QESEE + $600 QHEE). Colorado state tax return online See Figuring the Taxable Portion of a Distribution , earlier, in this chapter. Colorado state tax return online   QTP distribution based on her $2,400 of QHEE (see Figuring the Taxable Portion of a Distribution in chapter 8, Qualified Tuition Program). Colorado state tax return online The above examples show two types of allocation between distributions from a Coverdell ESA and a QTP. Colorado state tax return online However, you do not have to allocate your expenses in the same way. Colorado state tax return online You can use any reasonable method. Colorado state tax return online Losses on Coverdell ESA Investments If you have a loss on your investment in a Coverdell ESA, you may be able to deduct the loss on your income tax return. Colorado state tax return online You can deduct the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. Colorado state tax return online Your basis is the total amount of contributions to that Coverdell ESA. Colorado state tax return online You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23 (Schedule A (Form 1040NR), line 9), subject to the 2%-of-adjusted-gross-income limit. Colorado state tax return online If you have distributions from more than one Coverdell ESA account during a year, you must combine the information (amount of distribution, basis, etc. Colorado state tax return online ) from all such accounts in order to determine your taxable earnings for the year. Colorado state tax return online By doing this, the loss from one ESA account reduces the distributed earnings (if any) from any other ESA account. Colorado state tax return online For examples of the calculation, see Losses on QTP Investments in chapter 8, Qualified Tuition Program. Colorado state tax return online Additional Tax on Taxable Distributions Generally, if you receive a taxable distribution, you also must pay a 10% additional tax on the amount included in income. Colorado state tax return online Exceptions. Colorado state tax return online   The 10% additional tax does not apply to distributions: Paid to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary. Colorado state tax return online Made because the designated beneficiary is disabled. Colorado state tax return online A person is considered to be disabled if he or she shows proof that he or she cannot do any substantial gainful activity because of his or her physical or mental condition. Colorado state tax return online A physician must determine that his or her condition can be expected to result in death or to be of long-continued and indefinite duration. Colorado state tax return online Included in income because the designated beneficiary received: A tax-free scholarship or fellowship (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), or Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Colorado state tax return online Made on account of the attendance of the designated beneficiary at a U. Colorado state tax return online S. Colorado state tax return online military academy (such as the USMA at West Point). Colorado state tax return online This exception applies only to the extent that the amount of the distribution does not exceed the costs of advanced education (as defined in section 2005(d)(3) of title 10 of the U. Colorado state tax return online S. Colorado state tax return online Code) attributable to such attendance. Colorado state tax return online Included in income only because the qualified education expenses were taken into account in determining the American opportunity or lifetime learning credit (see Coordination With American Opportunity and Lifetime Learning Credits , earlier). Colorado state tax return online Made before June 1, 2014, of an excess 2013 contribution (and any earnings on it). Colorado state tax return online The distributed earnings must be included in gross income for the year in which the excess contribution was made. Colorado state tax return online Exception (3) applies only to the extent the distribution is not more than the scholarship, allowance, or payment. Colorado state tax return online Figuring the additional tax. Colorado state tax return online    Use Part II of Form 5329, to figure any additional tax. Colorado state tax return online Report the amount on Form 1040, line 58, or Form 1040NR, line 56. Colorado state tax return online When Assets Must Be Distributed Any assets remaining in a Coverdell ESA must be distributed when either one of the following two events occurs. Colorado state tax return online The designated beneficiary reaches age 30. Colorado state tax return online In this case, the remaining assets must be distributed within 30 days after the beneficiary reaches age 30. Colorado state tax return online However, this rule does not apply if the beneficiary is a special needs beneficiary. Colorado state tax return online The designated beneficiary dies before reaching age 30. Colorado state tax return online In this case, the remaining assets must generally be distributed within 30 days after the date of death. Colorado state tax return online Exception for Transfer to Surviving Spouse or Family Member If a Coverdell ESA is transferred to a surviving spouse or other family member as the result of the death of the designated beneficiary, the Coverdell ESA retains its status. Colorado state tax return online (“Family member” was defined earlier under Rollovers . Colorado state tax return online ) This means the spouse or other family member can treat the Coverdell ESA as his or her own and does not need to withdraw the assets until he or she reaches age 30. Colorado state tax return online This age limitation does not apply if the new beneficiary is a special needs beneficiary. Colorado state tax return online There are no tax consequences as a result of the transfer. Colorado state tax return online How To Figure the Taxable Earnings When a total distribution is made because the designated beneficiary either reached age 30 or died, the earnings that accumulated tax free in the account must be included in taxable income. Colorado state tax return online You determine these earnings as shown in the following two steps. Colorado state tax return online Multiply the amount distributed by a fraction. Colorado state tax return online The numerator is the basis (contributions not previously distributed) at the end of 2012 plus total contributions for 2013 and the denominator is the balance in the account at the end of 2013 plus the amount distributed during 2013. Colorado state tax return online Subtract the amount figured in (1) from the total amount distributed during 2013. Colorado state tax return online The result is the amount of earnings included in the distribution. Colorado state tax return online For an example, see steps (1) and (2) of the Example under Figuring the Taxable Portion of a Distribution, earlier. Colorado state tax return online The beneficiary or other person receiving the distribution must report this amount on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line. Colorado state tax return online Worksheet 7-3 Instructions. Colorado state tax return online Coverdell ESA—Taxable Distributions and Basis Line G. Colorado state tax return online Enter the total distributions received from all Coverdell ESAs during 2013. Colorado state tax return online Do not include amounts rolled over to another ESA within 60 days (only one rollover is allowed during any 12-month period). Colorado state tax return online Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year for which the contributions were made. Colorado state tax return online Line 2. Colorado state tax return online Your basis (amount already taxed) in this Coverdell ESA as of December 31, 2012, is the total of:   •All contributions to this Coverdell ESA before 2013 •Minus the tax-free portion of any distributions from this Coverdell ESA before 2013. Colorado state tax return online   If your last distribution from this Coverdell ESA was before 2013, you must start with the basis in your account as of the end of the last year in which you took a distribution. Colorado state tax return online For years before 2002, you can find that amount on the last line of the worksheet in the Instructions for Form 8606, Nondeductible IRAs, that you completed for that year. Colorado state tax return online For years after 2001, you can find that amount by using the ending basis from the worksheet in Publication 970 for that year. Colorado state tax return online You can determine your basis in this Coverdell ESA as of December 31, 2012, by adding to the basis as of the end of that year any contributions made to that account after the year of the distribution and before 2013. Colorado state tax return online Line 4. Colorado state tax return online Enter the total distributions received from this Coverdell ESA in 2013. Colorado state tax return online Do not include amounts rolled over to another Coverdell ESA within 60 days (only one rollover is allowed during any 12-month period). Colorado state tax return online   Also, do not include excess contributions that were distributed with the related earnings (or less any loss) before the first day of the sixth month of the tax year following the year of the contributions. Colorado state tax return online Line 7. Colorado state tax return online Enter the total value of this Coverdell ESA as of December 31, 2013, plus any outstanding rollovers contributed to the account after 2012, but before the end of the 60-day rollover period. Colorado state tax return online A statement should be sent to you by January 31, 2014, for this Coverdell ESA showing the value on December 31, 2013. Colorado state tax return online   A rollover is a tax-free withdrawal from one Coverdell ESA that is contributed to another Coverdell ESA. Colorado state tax return online An outstanding rollover is any amount withdrawn within 60 days before the end of 2013 (November 2 through December 31) that was rolled over after December 31, 2013, but within the 60-day rollover period. Colorado state tax return online Worksheet 7-3. Colorado state tax return online Coverdell ESA—Taxable Distributions and Basis How to complete this worksheet. Colorado state tax return online • • • Complete Part I, lines A through H, on only one worksheet. Colorado state tax return online  Complete a separate Part II, lines 1 through 15, for each of your Coverdell ESAs. Colorado state tax return online  Complete Part III, the Summary (line 16), on only one worksheet. Colorado state tax return online Part I. Colorado state tax return online Qualified Education Expenses (Complete for total expenses)       A. Colorado state tax return online Enter your total qualified education expenses for 2013   A. Colorado state tax return online   B. Colorado state tax return online Enter those qualified education expenses paid for with tax-free educational assistance (for example, tax-free scholarships, veterans' educational benefits, Pell grants, employer-provided educational assistance)   B. Colorado state tax return online         C. Colorado state tax return online Enter those qualified higher education expenses deducted on Schedule C or C-EZ (Form 1040). Colorado state tax return online Schedule F (Form 1040), or as a miscellaneous itemized deduction on Schedule A (Form 1040 or 1040NR)   C. Colorado state tax return online         D. Colorado state tax return online Enter those qualified higher education expenses on which  an American opportunity or lifetime learning credit was based   D. Colorado state tax return online         E. Colorado state tax return online Add lines B, C, and D   D. Colorado state tax return online   F. Colorado state tax return online Subtract line E from line A. Colorado state tax return online This is your adjusted qualified education expense for 2013   E. Colorado state tax return online   G. Colorado state tax return online Enter your total distributions from all Coverdell ESAs during 2013. Colorado state tax return online Do not include rollovers  or the return of excess contributions (see instructions)   F. Colorado state tax return online   H. Colorado state tax return online Divide line F by line G. Colorado state tax return online Enter the result as a decimal (rounded to at least 3 places). Colorado state tax return online If the  result is 1. Colorado state tax return online 000 or more, enter 1. Colorado state tax return online 000   G. Colorado state tax return online . Colorado state tax return online Part II. Colorado state tax return online Taxable Distributions and Basis (Complete separately for each account) 1. Colorado state tax return online Enter the amount contributed to this Coverdell ESA for 2013, including contributions made for 2013 from January 1, 2014, through April 15, 2014. Colorado state tax return online Do not include rollovers or the return of excess contributions   1. Colorado state tax return online   2. Colorado state tax return online Enter your basis in this Coverdell ESA as of December 31, 2012 (see instructions)   2. Colorado state tax return online   3. Colorado state tax return online Add lines 1 and 2   3. Colorado state tax return online   4. Colorado state tax return online Enter the total distributions from this Coverdell ESA during 2013. Colorado state tax return online Do not include rollovers  or the return of excess contributions (see instructions)   4. Colorado state tax return online   5. Colorado state tax return online Multiply line 4 by line H. Colorado state tax return online This is the amount of adjusted qualified  education expense attributable to this Coverdell ESA   5. Colorado state tax return online         6. Colorado state tax return online Subtract line 5 from line 4   6. Colorado state tax return online         7. Colorado state tax return online Enter the total value of this Coverdell ESA as of December 31, 2013,  plus any outstanding rollovers (see instructions)   7. Colorado state tax return online         8. Colorado state tax return online Add lines 4 and 7   8. Colorado state tax return online         9. Colorado state tax return online Divide line 3 by line 8. Colorado state tax return online Enter the result as a decimal (rounded to  at least 3 places). Colorado state tax return online If the result is 1. Colorado state tax return online 000 or more, enter 1. Colorado state tax return online 000   9. Colorado state tax return online . Colorado state tax return online       10. Colorado state tax return online Multiply line 4 by line 9. Colorado state tax return online This is the amount of basis allocated to your  distributions, and is tax free   10. Colorado state tax return online     Note. Colorado state tax return online If line 6 is zero, skip lines 11 through 13, enter -0- on line 14, and go to line 15. Colorado state tax return online       11. Colorado state tax return online Subtract line 10 from line 4   11. Colorado state tax return online   12. Colorado state tax return online Divide line 5 by line 4. Colorado state tax return online Enter the result as a decimal (rounded to  at least 3 places). Colorado state tax return online If the result is 1. Colorado state tax return online 000 or more, enter 1. Colorado state tax return online 000   12. Colorado state tax return online . Colorado state tax return online       13. Colorado state tax return online Multiply line 11 by line 12. Colorado state tax return online This is the amount of qualified education  expenses allocated to your distributions, and is tax free   13. Colorado state tax return online   14. Colorado state tax return online Subtract line 13 from line 11. Colorado state tax return online This is the portion of the distributions from this  Coverdell ESA in 2013 that you must include in income   14. Colorado state tax return online   15. Colorado state tax return online Subtract line 10 from line 3. Colorado state tax return online This is your basis in this Coverdell ESA as of December 31, 2013   15. Colorado state tax return online   Part III. Colorado state tax return online Summary (Complete only once)       16. Colorado state tax return online Taxable amount. Colorado state tax return online Add together all amounts on line 14 for all your Coverdell ESAs. Colorado state tax return online Enter here  and include on Form 1040, line 21, or Form 1040NR, line 21, listing the type and amount of income on the dotted line   16. Colorado state tax return online   Prev  Up  Next   Home   More Online Publications
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Awards and Recognitions

USA.gov (formerly FirstGov.gov) has won many awards, and has been widely recognized for its information and services since it launched in 2000.


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September 2012

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March 2009

  • USA.gov Director winner, Fed 100
  • Government Information Technology Executive Council (GITEC) Project Management Excellence Award for outstanding project management in Collaborative Government/Web 2.0 Vision.

January 2008

  • Government Customer Support Excellence Award Finalist

January 2009

August 2008

May 2008

April 2008

November 2007

  • President's Quality Award – Office of Personnel Management

October 2007

  • Vignette Village 2007 Excellence Award - Vignette Corporation

September 2007

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August 2007

July 2007

February 2007

  • Top Ten Most Useful Sites for Web-Based Research - XooxleAnswers

September 2006

August 2006

  • #1 in Overall Federal Agency E-Government Performance, Taubman Center for Public Policy at Brown University

July 2006

April 2006

March 2006

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  • Stockholm Challenge Award Finalist 2006

January 2006

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  • Hot Sites - USATODAY.com
  • Website of the Day - kdsk.com

December 2005

  • #1 in Global E-Government Readiness - United Nations Global E-Government Readiness Report 2005

September 2005

  • Web Content Managers Best Practices Award for FirstGov en español (now GobiernoUSA.gov)

June 2005

  • Webby Worthy Award - International Academy of Digital Arts and Sciences

April 2005

  • PC Magazine's Top 100 Classic Sites
  • Kim Komando Cool Site of the Day

January 2005

  • Favorite Website - The Atlanta Journal-Constitution

September 2004

  • IRMCO Team Award Finalist
  • #1 in Overall Federal e-Government - Taubman Center for Public Policy at Brown University

August 2004

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May 2004

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April 2004

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  • PC Magazine's Top 100 Classic Sites

March 2004

  • FirstGov (now USA.gov) Director winner, Fed 100

February 2004

January 2004

  • Site of the Day - Charlotte Observer (North Carolina)

December 2003

  • "EContent 100" - EContent Magazine
  • Finalist, World Summit Award - United Nations International Telecommunications Union

November 2003

  • #1 in Web-Quality & E-Government Readiness - United Nations "World Public Sector Report 2003 - E-Government at the Crossroads"
  • Cool Site of the Day - coolsiteoftheday.com
  • Top Three Government Sites - WABC TV, New York

October 2003

  • 101 Most Incredibly Useful Sites - PC Magazine

September 2003

  • #1 in Overall Federal e-Government - Taubman Center for Public Policy at Brown University

August 2003

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May 2003

  • Innovations in American Government Award Winner

March 2003

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  • PC Magazine's Top 100 Classic Sites

November 2002

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July 2002

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  • Yahoo! Internet Life Magazine's 50 Most Incredibly Useful Sites

June 2002

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  • Pioneer Award, E-Gov

February 2002

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January 2002

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December 2001

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November 2001

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October 2001

  • Hot Site - USA Today.com
  • Pick of the Week - Yahoo!

August 2001

  • Innovations in American Government Award Finalist

July 2001

  • Hot Site - USA Today.com

June 2001

  • Intergovernmental Solutions Award
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  • Top 100 Sites of the Day - The Legendinc.com
  • Web Map: News You Can Use - USNews.com

May 2001

  • #1 in 100 Top Government Sites - 100.com
  • Golden Web Award (2001-2002)

April 2001

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  • Pioneer Award, E-Gov
  • Site of the Day - The Wall Street Journal Classroom Edition
  • Top 100 Sites for Small Business - Entrepreneur Magazine

March 2001

  • Azimuth Award (awarded to Dave Barram and Eric Brewer)
  • FOSE and Chief Information Officers Council of Excellence Award
  • Site of the Month - Chief Executives' Forum (Belfast, Ireland)
  • Site of the Month - Research Data Management Service, University of Delaware
  • Site of the Month - The CyberSkeptic's Guide to Internet Research
  • Site of the Week - Web Watch
  • Site of the Week - Worksupport.com

February 2001

  • Recognized among "40 Great Web Sites," Reader's Digest, New Choices Magazine
  • Cool Website of the Day - "Topical" Tipworld
  • Site of the Day - Canton Public Library (Canton, Michigan)
  • Site of the Month - Internet Resources for Nonprofits
  • Site of the Week - Legal Engine

January 2001

  • Government Computer News Award
  • Hot Site of the Year - USA Today
  • Interesting Worldwide Website - Computer Times
  • Site of the Day - New York Times
  • Vice President's Hammer Award for Reinventing Government

December 2000

  • Site of the Day - E-mazing

November 2000

  • Site of the Month - King County Library (Washington State)

October 2000

  • A - Education World
  • Site of the Week - RefDesk.com
  • Site of the Day - Kathy Schrock's Guide for Educators
  • Site of the Day - Mountain Home School District 193 (Mountain Home, Idaho)
  • Site of the Month - New York State Library
  • Site of the Week - Boston Bar Association
  • Site of the Week - Fort Smith, Arkansas Public Library

September 2000

  • Site of the Day - Alpha-Pro Net
  • Site of the Week - University of Texas Southwestern Medical Library

Awards by Title

  • #1 Federal Government Website - Comparing Technology Innovation in the Private and Public Sectors, Brookings Institution
  • #1 in 100 Top Government Sites - 100.com
  • #1 in About.com's Top 20 Essential U.S. Government Websites
  • #1 in Global E-Government Readiness - United Nations Global E-Government Readiness Report 2005
  • #1 in Overall Federal Agency E-Government Performance, Taubman Center for Public Policy at Brown University (2003, 2004, 2006, 2007)
  • #1 in Web-Quality & E-Government Readiness - United Nations "World Public Sector Report 2003 - E-Government at the Crossroads"
  • 25 Websites We Can't Live Without, Time Magazine
  • 101 Most Incredibly Useful Sites - PC Magazine
  • A - Education World
  • Arroba de oro, ("the golden @") Finalist
  • Azimuth Award
  • Best Government Web Sites: USA.gov - Government Computer News
  • Best New Government Website - Women's World Magazine
  • Best of the Web - Forbes.com
  • Cool Site of the Day - coolsiteoftheday.com
  • Cool Site of the Day - Kim Komando
  • Cool Website of the Day - "Topical" Tipworld
  • "EContent 100" - EContent MagazineExcellence.Gov
  • Excellence.Gov
  • Excellent rating for GovGab.gov blog by blogged.com
  • Fed 100
  • Favorite Places on the Web - Chicago Sun-Times
  • Favorite Website - The Atlanta Journal-Constitution
  • Federal Line - FederalNewsRadio.com
  • FOSE and Chief Information Officers Council of Excellence Award
  • Golden Web Award
  • Government Computer News Award
  • Government Customer Support Excellence Award Finalist
  • Grace Hopper Government Technology Leadership Award
  • Hot Site - USA Today.com
  • Hot Site of the Year - USA Today.com
  • Innovations in American Government Award Winner (2002)
  • Intergovernmental Solutions Award
  • Interesting Worldwide Website - Computer Times
  • IRMCO Team Award Finalist
  • Link You Can't Live Without - WUSA9.com
  • Model of Collaboration - Center for Technology in Government at University at Albany, SUNY
  • Most Effective Federal Web Site at Using Interactive Features to Engage the Public - Brookings Institution
  • Outstanding Federal Civilian Marketing Program, GovMark Council
  • PC Magazine's Top 100 Classic Sites
  • Pick of the Week - Yahoo!
  • Pioneer Award, E-Gov
  • Pioneer Award - Federal Computer Week
  • President's Quality Award – Office of Personnel Management
  • Project Management Excellence in Collaborative Government/Web 2.0 Vision, Government Information Technology Executive Council (GITEC)
  • Public Access to Government Information Award - American Association Law Libraries
  • Recognized among "40 Great Web Sites," Reader's Digest, New Choices Magazine
  • Showcase of Excellence Award Winner - Federal Leadership Councils at FOSE
  • Site of the Day - Alpha-Pro Net
  • Site of the Day - Canton Public Library (Canton, Michigan)
  • Site of the Day - Charlotte Observer (North Carolina)
  • Site of the Day - E-mazing
  • Site of the Day - Entertainment Weekly
  • Site of the Day - Kathy Schrock's Guide for Educators
  • Site of the Day - Mountain Home School District 193 (Mountain Home, Idaho)
  • Site of the Day - The New York Times
  • Site of the Day - The Wall Street Journal Classroom Edition
  • Site of the Month - Chief Executives' Forum (Belfast, Ireland)
  • Site of the Month - Internet Resources for Nonprofits
  • Site of the Month - King County Library (Washington State)
  • Site of the Month - New York State Library
  • Site of the Month - Research Data Management Service, University of Delaware
  • Site of the Month - The CyberSkeptic's Guide to Internet Research
  • Site of the Week - Boston Bar Association
  • Site of the Week - Fort Smith, Arkansas Public Library
  • Site of the Week - Legal Engine
  • Site of the Week - Post-Standard (Syracuse, NY)
  • Site of the Week - RefDesk.com
  • Site of the Week - The Washington Times
  • Site of the Week - University of Texas Southwestern Medical Library
  • Site of the Week - Web Watch
  • Site of the Week - Worksupport.com
  • Stockholm Challenge Award Finalist 2006
  • The 50 Most-Mentioned Agencies on Twitter
  • "The Best of..." - Money Magazine
  • Top 100 Sites for Small Business - Entrepreneur Magazine
  • Top 100 Sites of the Day - The Legendinc.com
  • Top 100 Websites, WEB100.com
  • Top Government Blog, Juggle.com
  • Top Site of the Day - widders.com
  • Top Ten Most Useful Sites for Web-Based Research - XooxleAnswers
  • Top Three Government Sites - WABC TV, New York
  • U.S. Government Web Sites You Didn't Know You Could Use, lifehacker.com
  • Vice President's Hammer Award for Reinventing Government
  • Vignette Village 2007 Excellence Award - Vignette Corporation
  • WebAward - Web Marketing Association
  • Website of the Day - kdsk.com
  • Web Content Managers Best Practices Award for FirstGov en español (now GobiernoUSA.gov)
  • Web Map: News You Can Use - USNews.com
  • Webby Awards Official Honoree - International Academy of Digital Arts and Sciences
  • Webby Worthy Award - International Academy of Digital Arts and Sciences
  • World Summit Award Finalist - United Nations International Telecommunications Union
  • Yahoo! Internet Life Magazine's 50 Most Incredibly Useful Sites

The Colorado State Tax Return Online

Colorado state tax return online Index A Adjusted basis, Adjusted Basis Assessments For local benefits, Assessments for local benefits. Colorado state tax return online Homeowners association, Homeowners association assessments. Colorado state tax return online Assistance (see Tax help) B Basis, Basis C Certificate, mortgage credit, Who qualifies. Colorado state tax return online Construction, Construction. Colorado state tax return online Cooperatives, Special Rules for Cooperatives, Cooperative apartment. Colorado state tax return online Cost basis, Cost as Basis Credit Mortgage interest, Mortgage Interest Credit D Deduction Home mortgage interest, Deductible Mortgage Interest Real estate taxes, Deductible Real Estate Taxes E Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Programs Escrow accounts, Escrow accounts. Colorado state tax return online F Fire insurance premiums, Items not added to basis and not deductible. Colorado state tax return online Form 1098, Mortgage Interest Statement 8396, How to claim the credit. Colorado state tax return online , Figuring the Credit Free tax services, Free help with your tax return. Colorado state tax return online G Gift of home, Gift Ground rent, Ground rent. Colorado state tax return online H Help (see Tax help) HFA Hardest Hit Fund, Hardest Hit Fund and Emergency Homeowners' Loan Programs Home Acquisition debt, Home Acquisition Debt Inherited, Inheritance Mortgage interest, Home Mortgage Interest Purchase of, Purchase. Colorado state tax return online Received as gift, Gift Homeowners association assessments, Homeowners association assessments. Colorado state tax return online House payment, Your house payment. Colorado state tax return online Housing allowance, minister or military, Minister's or military housing allowance. Colorado state tax return online I Improvements, Improvements. Colorado state tax return online Inheritance, Inheritance Insurance, Nondeductible payments. Colorado state tax return online , Items not added to basis and not deductible. Colorado state tax return online Interest Home mortgage, Home Mortgage Interest Prepaid, Prepaid interest. Colorado state tax return online K Keeping records, Keeping Records L Late payment charge, Late payment charge on mortgage payment. Colorado state tax return online Local benefits, assessments for, Assessments for local benefits. Colorado state tax return online M MCC (Mortgage credit certificate), Who qualifies. Colorado state tax return online Minister's or military housing allowance, Minister's or military housing allowance. Colorado state tax return online Mortgage credit certificate (MCC), Who qualifies. Colorado state tax return online Mortgage debt forgiveness, Discharges of qualified principal residence indebtedness. Colorado state tax return online Mortgage insurance premiums, Mortgage Insurance Premiums Mortgage interest Credit, Mortgage Interest Credit Deduction, Deductible Mortgage Interest Late payment charge, Late payment charge on mortgage payment. Colorado state tax return online Paid at settlement, Mortgage Interest Paid at Settlement Refund, Refund of home mortgage interest. Colorado state tax return online , Refund of overpaid interest. Colorado state tax return online Statement, Mortgage Interest Statement Mortgage prepayment penalty, Mortgage prepayment penalty. Colorado state tax return online N Nondeductible payments, Nondeductible payments. Colorado state tax return online , Items not added to basis and not deductible. Colorado state tax return online P Points, Points Prepaid interest, Prepaid interest. Colorado state tax return online Publications (see Tax help) R Real estate taxes, Real Estate Taxes Deductible, Deductible Real Estate Taxes Paid at settlement or closing, Real estate taxes paid at settlement or closing. Colorado state tax return online , Real estate taxes. Colorado state tax return online Refund or rebate, Refund or rebate of real estate taxes. Colorado state tax return online Recordkeeping, Keeping Records Refund of Mortgage interest, Refund of home mortgage interest. Colorado state tax return online , Refund of overpaid interest. Colorado state tax return online Real estate taxes, Refund or rebate of real estate taxes. Colorado state tax return online Repairs, Repairs versus improvements. Colorado state tax return online S Sales taxes, Sales Taxes Settlement or closing costs Basis of home, Settlement or closing costs. Colorado state tax return online Mortgage interest, Mortgage Interest Paid at Settlement Real estate taxes, Real estate taxes paid at settlement or closing. Colorado state tax return online , Real estate taxes. Colorado state tax return online Stamp taxes, Transfer taxes (or stamp taxes). Colorado state tax return online Statement, mortgage interest, Mortgage Interest Statement T Tax help, How To Get Tax Help Taxes Real estate, Real Estate Taxes, Refund of real estate taxes. Colorado state tax return online Transfer taxes, Transfer taxes (or stamp taxes). Colorado state tax return online W What you can and cannot deduct, What You Can and Cannot Deduct Prev  Up     Home   More Online Publications