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Back taxes help Publication 596 - Main Content Table of Contents Chapter 1—Rules for EveryoneRule 1—Adjusted Gross Income (AGI) Limits Rule 2—You Must Have a Valid Social Security Number (SSN) Rule 3—Your Filing Status Cannot Be Married Filing Separately Rule 4—You Must Be a U. Back taxes help S. Back taxes help Citizen or Resident Alien All Year Rule 5—You Cannot File Form 2555 or Form 2555-EZ Rule 6—Your Investment Income Must Be $3,300 or Less Rule 7—You Must Have Earned Income Chapter 2—Rules If You Have a Qualifying ChildRule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Rule 9—Your Qualifying Child Cannot Be Used by More Than One Person To Claim the EIC Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer Chapter 3—Rules If You Do Not Have a Qualifying ChildRule 11—You Must Be at Least Age 25 but Under Age 65 Rule 12—You Cannot Be the Dependent of Another Person Rule 13—You Cannot Be a Qualifying Child of Another Taxpayer Rule 14—You Must Have Lived in the United States More Than Half of the Year Chapter 4—Figuring and Claiming the EICRule 15—Earned Income Limits IRS Will Figure the EIC for You How To Figure the EIC Yourself Schedule EIC Chapter 5—Disallowance of the EICForm 8862 Are You Prohibited From Claiming the EIC for a Period of Years? Chapter 6—Detailed ExamplesExample 1—Sharon Rose Example 2—Cynthia and Jerry Grey Chapter 1—Rules for Everyone This chapter discusses Rules 1 through 7. Back taxes help You must meet all seven rules to qualify for the earned income credit. Back taxes help If you do not meet all seven rules, you cannot get the credit and you do not need to read the rest of the publication. Back taxes help If you meet all seven rules in this chapter, then read either chapter 2 or chapter 3 (whichever applies) for more rules you must meet. Back taxes help Rule 1—Adjusted Gross Income (AGI) Limits Your adjusted gross income (AGI) must be less than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Back taxes help Adjusted gross income (AGI). Back taxes help   AGI is the amount on line 4 of Form 1040EZ, line 22 of Form 1040A, or line 38 of Form 1040. Back taxes help   If your AGI is equal to or more than the applicable limit listed above, you cannot claim the EIC. Back taxes help You do not need to read the rest of this publication. Back taxes help Example—AGI is more than limit. Back taxes help Your AGI is $38,550, you are single, and you have one qualifying child. Back taxes help You cannot claim the EIC because your AGI is not less than $37,870. Back taxes help However, if your filing status was married filing jointly, you might be able to claim the EIC because your AGI is less than $43,210. Back taxes help Community property. Back taxes help   If you are married, but qualify to file as head of household under special rules for married taxpayers living apart (see Rule 3), and live in a state that has community property laws, your AGI includes that portion of both your and your spouse's wages that you are required to include in gross income. Back taxes help This is different from the community property rules that apply under Rule 7. Back taxes help Rule 2—You Must Have a Valid Social Security Number (SSN) To claim the EIC, you (and your spouse, if filing a joint return) must have a valid SSN issued by the Social Security Administration (SSA). Back taxes help Any qualifying child listed on Schedule EIC also must have a valid SSN. Back taxes help (See Rule 8 if you have a qualifying child. Back taxes help ) If your social security card (or your spouse's, if filing a joint return) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. Back taxes help An example of a federally funded benefit is Medicaid. Back taxes help If you have a card with the legend “Not valid for employment” and your immigration status has changed so that you are now a U. Back taxes help S. Back taxes help citizen or permanent resident, ask the SSA for a new social security card without the legend. Back taxes help If you get the new card after you have already filed your return, you can file an amended return on Form 1040X, Amended U. Back taxes help S. Back taxes help Individual Income Tax Return, to claim the EIC. Back taxes help U. Back taxes help S. Back taxes help citizen. Back taxes help   If you were a U. Back taxes help S. Back taxes help citizen when you received your SSN, you have a valid SSN. Back taxes help Valid for work only with INS authorization or DHS authorization. Back taxes help   If your social security card reads “Valid for work only with INS authorization” or “Valid for work only with DHS authorization,” you have a valid SSN, but only if that authorization is still valid. Back taxes help SSN missing or incorrect. Back taxes help   If an SSN for you or your spouse is missing from your tax return or is incorrect, you may not get the EIC. Back taxes help Other taxpayer identification number. Back taxes help   You cannot get the EIC if, instead of an SSN, you (or your spouse, if filing a joint return) have an individual taxpayer identification number (ITIN). Back taxes help ITINs are issued by the Internal Revenue Service to noncitizens who cannot get an SSN. Back taxes help No SSN. Back taxes help   If you do not have a valid SSN, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Back taxes help You cannot claim the EIC. Back taxes help Getting an SSN. Back taxes help   If you (or your spouse, if filing a joint return) do not have an SSN, you can apply for one by filing Form SS-5 with the SSA. Back taxes help You can get Form SS-5 online at www. Back taxes help socialsecurity. Back taxes help gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. Back taxes help Filing deadline approaching and still no SSN. Back taxes help   If the filing deadline is approaching and you still do not have an SSN, you have two choices. Back taxes help Request an automatic 6-month extension of time to file your return. Back taxes help You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Back taxes help S. Back taxes help Individual Income Tax Return. Back taxes help For more information, see the instructions for Form 4868. Back taxes help File the return on time without claiming the EIC. Back taxes help After receiving the SSN, file an amended return, Form 1040X, claiming the EIC. Back taxes help Attach a filled-in Schedule EIC, Earned Income Credit, if you have a qualifying child. Back taxes help Rule 3—Your Filing Status Cannot Be “Married Filing Separately” If you are married, you usually must file a joint return to claim the EIC. Back taxes help Your filing status cannot be “Married filing separately. Back taxes help ” Spouse did not live with you. Back taxes help   If you are married and your spouse did not live in your home at any time during the last 6 months of the year, you may be able to file as head of household, instead of married filing separately. Back taxes help In that case, you may be able to claim the EIC. Back taxes help For detailed information about filing as head of household, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Back taxes help Rule 4—You Must Be a U. Back taxes help S. Back taxes help Citizen or Resident Alien All Year If you (or your spouse, if married) were a nonresident alien for any part of the year, you cannot claim the earned income credit unless your filing status is married filing jointly. Back taxes help You can use that filing status only if one spouse is a U. Back taxes help S. Back taxes help citizen or resident alien and you choose to treat the nonresident spouse as a U. Back taxes help S. Back taxes help resident. Back taxes help If you make this choice, you and your spouse are taxed on your worldwide income. Back taxes help If you need more information on making this choice, get Publication 519, U. Back taxes help S. Back taxes help Tax Guide for Aliens. Back taxes help If you (or your spouse, if married) were a nonresident alien for any part of the year and your filing status is not married filing jointly, enter “No” on the dotted line next to line 64a (Form 1040) or in the space to the left of line 38a (Form 1040A). Back taxes help Rule 5—You Cannot File Form 2555 or Form 2555-EZ You cannot claim the earned income credit if you file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Back taxes help You file these forms to exclude income earned in foreign countries from your gross income, or to deduct or exclude a foreign housing amount. Back taxes help U. Back taxes help S. Back taxes help possessions are not foreign countries. Back taxes help See Publication 54, Tax Guide for U. Back taxes help S. Back taxes help Citizens and Resident Aliens Abroad, for more detailed information. Back taxes help Rule 6—Your Investment Income Must Be $3,300 or Less You cannot claim the earned income credit unless your investment income is $3,300 or less. Back taxes help If your investment income is more than $3,300, you cannot claim the credit. Back taxes help Form 1040EZ. Back taxes help   If you file Form 1040EZ, your investment income is the total of the amount on line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. Back taxes help Form 1040A. Back taxes help   If you file Form 1040A, your investment income is the total of the amounts on lines 8a (taxable interest), 8b (tax-exempt interest), 9a (ordinary dividends), and 10 (capital gain distributions) on that form. Back taxes help Form 1040. Back taxes help   If you file Form 1040, use Worksheet 1 in this chapter to figure your investment income. Back taxes help    Worksheet 1. Back taxes help Investment Income If You Are Filing Form 1040 Use this worksheet to figure investment income for the earned income credit when you file Form 1040. Back taxes help Interest and Dividends         1. Back taxes help Enter any amount from Form 1040, line 8a 1. Back taxes help   2. Back taxes help Enter any amount from Form 1040, line 8b, plus any amount on Form 8814, line 1b 2. Back taxes help   3. Back taxes help Enter any amount from Form 1040, line 9a 3. Back taxes help   4. Back taxes help Enter the amount from Form 1040, line 21, that is from Form 8814 if you are filing that form to report your child's interest and dividend income on your return. Back taxes help (If your child received an Alaska Permanent Fund dividend, use Worksheet 2 in this chapter to figure the amount to enter on this line. Back taxes help ) 4. Back taxes help   Capital Gain Net Income         5. Back taxes help Enter the amount from Form 1040, line 13. Back taxes help If the amount on that line is a loss, enter -0- 5. Back taxes help       6. Back taxes help Enter any gain from Form 4797, Sales of Business Property, line 7. Back taxes help If the amount on that line is a loss, enter -0-. Back taxes help (But, if you completed lines 8 and 9 of Form 4797, enter the amount from line 9 instead. Back taxes help ) 6. Back taxes help       7. Back taxes help Substract line 6 of this worksheet from line 5 of this worksheet. Back taxes help (If the result is less than zero, enter -0-. Back taxes help ) 7. Back taxes help   Royalties and Rental Income From Personal Property         8. Back taxes help Enter any royalty income from Schedule E, line 23b, plus any income from the rental of personal property shown on Form 1040, line 21 8. Back taxes help       9. Back taxes help Enter any expenses from Schedule E, line 20, related to royalty income, plus any expenses from the rental of personal property deducted on Form 1040, line 36 9. Back taxes help       10. Back taxes help Subtract the amount on line 9 of this worksheet from the amount on line 8. Back taxes help (If the result is less than zero, enter -0-. Back taxes help ) 10. Back taxes help   Passive Activities         11. Back taxes help Enter the total of any net income from passive activities (such as income included on Schedule E, line 26, 29a (col. Back taxes help (g)), 34a (col. Back taxes help (d)), or 40). Back taxes help (See instructions below for lines 11 and 12. Back taxes help ) 11. Back taxes help       12. Back taxes help Enter the total of any losses from passive activities (such as losses included on Schedule E, line 26, 29b (col. Back taxes help (f)), 34b (col. Back taxes help (c)), or 40). Back taxes help (See instructions below for lines 11 and 12. Back taxes help ) 12. Back taxes help       13. Back taxes help Combine the amounts on lines 11 and 12 of this worksheet. Back taxes help (If the result is less than zero, enter -0-. Back taxes help ) 13. Back taxes help   14. Back taxes help Add the amounts on lines 1, 2, 3, 4, 7, 10, and 13. Back taxes help Enter the total. Back taxes help This is your investment income 14. Back taxes help   15. Back taxes help Is the amount on line 14 more than $3,300? ❑ Yes. Back taxes help You cannot take the credit. Back taxes help  ❑ No. Back taxes help Go to Step 3 of the Form 1040 instructions for lines 64a and 64b to find out if you can take the credit (unless you are using this publication to find out if you can take the credit; in that case, go to Rule 7, next). Back taxes help       Instructions for lines 11 and 12. Back taxes help In figuring the amount to enter on lines 11 and 12, do not take into account any royalty income (or loss) included on line 26 of Schedule E or any amount included in your earned income. Back taxes help To find out if the income on line 26 or line 40 of Schedule E is from a passive activity, see the Schedule E instructions. Back taxes help If any of the rental real estate income (or loss) included on Schedule E, line 26, is not from a passive activity, print “NPA” and the amount of that income (or loss) on the dotted line next to line 26. Back taxes help Worksheet 2. Back taxes help Worksheet for Line 4 of Worksheet 1 Complete this worksheet only if Form 8814 includes an Alaska Permanent Fund dividend. Back taxes help Note. Back taxes help Fill out a separate Worksheet 2 for each Form 8814. Back taxes help     1. Back taxes help Enter the amount from Form 8814, line 2a 1. Back taxes help   2. Back taxes help Enter the amount from Form 8814, line 2b 2. Back taxes help   3. Back taxes help Subtract line 2 from line 1 3. Back taxes help   4. Back taxes help Enter the amount from Form 8814, line 1a 4. Back taxes help   5. Back taxes help Add lines 3 and 4 5. Back taxes help   6. Back taxes help Enter the amount of the child's Alaska Permanent Fund dividend 6. Back taxes help   7. Back taxes help Divide line 6 by line 5. Back taxes help Enter the result as a decimal (rounded to at least three places) 7. Back taxes help   8. Back taxes help Enter the amount from Form 8814, line 12 8. Back taxes help   9. Back taxes help Multiply line 7 by line 8 9. Back taxes help   10. Back taxes help Subtract line 9 from line 8. Back taxes help Enter the result on line 4 of Worksheet 1 10. Back taxes help     (If filing more than one Form 8814, enter on line 4 of Worksheet 1 the total of the amounts on line 10 of all Worksheets 2. Back taxes help )     Example—completing Worksheet 2. Back taxes help Your 10-year-old child has taxable interest income of $400, an Alaska Permanent Fund dividend of $1,000, and ordinary dividends of $1,100, of which $500 are qualified dividends. Back taxes help You choose to report this income on your return. Back taxes help You enter $400 on line 1a of Form 8814, $2,100 ($1,000 + $1,100) on line 2a, and $500 on line 2b. Back taxes help After completing lines 4 through 11, you enter $400 on line 12 of Form 8814 and line 21 of Form 1040. Back taxes help On Worksheet 2, you enter $2,100 on line 1, $500 on line 2, $1,600 on line 3, $400 on line 4, $2,000 on line 5, $1,000 on line 6, 0. Back taxes help 500 on line 7, $400 on line 8, $200 on line 9, and $200 on line 10. Back taxes help You then enter $200 on line 4 of Worksheet 1. Back taxes help Rule 7—You Must Have Earned Income This credit is called the “earned income” credit because, to qualify, you must work and have earned income. Back taxes help If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Back taxes help If you are an employee, earned income includes all the taxable income you get from your employer. Back taxes help Rule 15 has information that will help you figure the amount of your earned income. Back taxes help If you are self-employed or a statutory employee, you will figure your earned income on EIC Worksheet B in the Form 1040 instructions. Back taxes help Earned Income Earned income includes all of the following types of income. Back taxes help Wages, salaries, tips, and other taxable employee pay. Back taxes help Employee pay is earned income only if it is taxable. Back taxes help Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Back taxes help But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained later in this chapter. Back taxes help Net earnings from self-employment. Back taxes help Gross income received as a statutory employee. Back taxes help Wages, salaries, and tips. Back taxes help    Wages, salaries, and tips you receive for working are reported to you on Form W-2, in box 1. Back taxes help You should report these on line 1 (Form 1040EZ) or line 7 (Forms 1040A and 1040). Back taxes help Nontaxable combat pay election. Back taxes help   You can elect to include your nontaxable combat pay in earned income for the earned income credit. Back taxes help The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q. Back taxes help Electing to include nontaxable combat pay in earned income may increase or decrease your EIC. Back taxes help For details, see Nontaxable combat pay in chapter 4. Back taxes help Net earnings from self-employment. Back taxes help   You may have net earnings from self-employment if: You own your own business, or You are a minister or member of a religious order. Back taxes help Minister's housing. Back taxes help   The rental value of a home or a housing allowance provided to a minister as part of the minister's pay generally is not subject to income tax but is included in net earnings from self-employment. Back taxes help For that reason, it is included in earned income for the EIC (except in the cases described in Approved Form 4361 or Form 4029 , below). Back taxes help Statutory employee. Back taxes help   You are a statutory employee if you receive a Form W-2 on which the “Statutory employee” box (box 13) is checked. Back taxes help You report your income and expenses as a statutory employee on Schedule C or C-EZ (Form 1040). Back taxes help Strike benefits. Back taxes help   Strike benefits paid by a union to its members are earned income. Back taxes help Approved Form 4361 or Form 4029 This section is for persons who have an approved: Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, or Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits. Back taxes help Each approved form exempts certain income from social security taxes. Back taxes help Each form is discussed here in terms of what is or is not earned income for the EIC. Back taxes help Form 4361. Back taxes help   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee count as earned income. Back taxes help This includes wages, salaries, tips, and other taxable employee compensation. Back taxes help A nontaxable housing allowance or the nontaxable rental value of a home is not earned income. Back taxes help Also, amounts you received for performing ministerial duties, but not as an employee, do not count as earned income. Back taxes help Examples include fees for performing marriages and honoraria for delivering speeches. Back taxes help Form 4029. Back taxes help   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation count as earned income. Back taxes help However, amounts you received as a self-employed individual do not count as earned income. Back taxes help Also, in figuring earned income, do not subtract losses on Schedule C, C-EZ, or F from wages on line 7 of Form 1040. Back taxes help Disability Benefits If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Back taxes help Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Back taxes help You must report your taxable disability payments on line 7 of either Form 1040 or Form 1040A until you reach minimum retirement age. Back taxes help Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Back taxes help Report taxable pension payments on Form 1040, lines 16a and 16b, or Form 1040A, lines 12a and 12b. Back taxes help Disability insurance payments. Back taxes help   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. Back taxes help It does not matter whether you have reached minimum retirement age. Back taxes help If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code “J. Back taxes help ” Income That Is Not Earned Income Examples of items that are not earned income include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. Back taxes help Do not include any of these items in your earned income. Back taxes help Earnings while an inmate. Back taxes help   Amounts received for work performed while an inmate in a penal institution are not earned income when figuring the earned income credit. Back taxes help This includes amounts for work performed while in a work release program or while in a halfway house. Back taxes help Workfare payments. Back taxes help   Nontaxable workfare payments are not earned income for the EIC. Back taxes help These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. Back taxes help Community property. Back taxes help   If you are married, but qualify to file as head of household under special rules for married taxpayers living apart (see Rule 3), and live in a state that has community property laws, your earned income for the EIC does not include any amount earned by your spouse that is treated as belonging to you under those laws. Back taxes help That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Back taxes help Your earned income includes the entire amount you earned, even if part of it is treated as belonging to your spouse under your state's community property laws. Back taxes help Nevada, Washington, and California domestic partners. Back taxes help   If you are a registered domestic partner in Nevada, Washington, or California, the same rules apply. Back taxes help Your earned income for the EIC does not include any amount earned by your partner. Back taxes help Your earned income includes the entire amount you earned. Back taxes help For details, see Publication 555. Back taxes help Conservation Reserve Program (CRP) payments. Back taxes help   If you were receiving social security retirement benefits or social security disability benefits at the time you received any CRP payments, your CRP payments are not earned income for the EIC. Back taxes help Nontaxable military pay. Back taxes help   Nontaxable pay for members of the Armed Forces is not considered earned income for the EIC. Back taxes help Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS). Back taxes help See Publication 3, Armed Forces' Tax Guide, for more information. Back taxes help    Combat pay. Back taxes help You can elect to include your nontaxable combat pay in earned income for the EIC. Back taxes help See Nontaxable combat pay in chapter 4. Back taxes help Chapter 2—Rules If You Have a Qualifying Child If you have met all the rules in chapter 1, use this chapter to see if you have a qualifying child. Back taxes help This chapter discusses Rules 8 through 10. Back taxes help You must meet all three of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit with a qualifying child. Back taxes help You must file Form 1040 or Form 1040A to claim the EIC with a qualifying child. Back taxes help (You cannot file Form 1040EZ. Back taxes help ) You also must complete Schedule EIC and attach it to your return. Back taxes help If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Back taxes help No qualifying child. Back taxes help   If you do not meet Rule 8, you do not have a qualifying child. Back taxes help Read chapter 3 to find out if you can get the earned income credit without a qualifying child. Back taxes help Rule 8—Your Child Must Meet the Relationship, Age, Residency, and Joint Return Tests Your child is a qualifying child if your child meets four tests. Back taxes help The fours tests are: Relationship, Age, Residency, and Joint return. Back taxes help The four tests are illustrated in Figure 1. Back taxes help The paragraphs that follow contain more information about each test. Back taxes help Relationship Test To be your qualifying child, a child must be your: Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild), or Brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew). Back taxes help The following definitions clarify the relationship test. Back taxes help Adopted child. Back taxes help   An adopted child is always treated as your own child. Back taxes help The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Back taxes help Foster child. Back taxes help   For the EIC, a person is your foster child if the child is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Back taxes help (An authorized placement agency includes a state or local government agency. Back taxes help It also includes a tax-exempt organization licensed by a state. Back taxes help In addition, it includes an Indian tribal government or an organization authorized by an Indian tribal government to place Indian children. Back taxes help ) Example. Back taxes help Debbie, who is 12 years old, was placed in your care 2 years ago by an authorized agency responsible for placing children in foster homes. Back taxes help Debbie is your foster child. Back taxes help Figure 1. Back taxes help Tests for Qualifying Child Please click here for the text description of the image. Back taxes help Conditions for Qualifying Child Age Test Your child must be: Under age 19 at the end of 2013 and younger than you (or your spouse, if filing jointly), Under age 24 at the end of 2013, a student, and younger than you (or your spouse, if filing jointly, or Permanently and totally disabled at any time during 2013, regardless of age. Back taxes help The following examples and definitions clarify the age test. Back taxes help Example 1—child not under age 19. Back taxes help Your son turned 19 on December 10. Back taxes help Unless he was permanently and totally disabled or a student, he is not a qualifying child because, at the end of the year, he was not under age 19. Back taxes help Example 2—child not younger than you or your spouse. Back taxes help Your 23-year-old brother, who is a full-time student and unmarried, lives with you and your spouse. Back taxes help He is not disabled. Back taxes help Both you and your spouse are 21 years old, and you file a joint return. Back taxes help Your brother is not your qualifying child because he is not younger than you or your spouse. Back taxes help Example 3—child younger than your spouse but not younger than you. Back taxes help The facts are the same as in Example 2 except that your spouse is 25 years old. Back taxes help Because your brother is younger than your spouse, he is your qualifying child, even though he is not younger than you. Back taxes help Student defined. Back taxes help   To qualify as a student, your child must be, during some part of each of any 5 calendar months during the calendar year: A full-time student at a school that has a regular teaching staff, course of study, and regular student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or a state, county, or local government. Back taxes help   The 5 calendar months need not be consecutive. Back taxes help   A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. Back taxes help School defined. Back taxes help   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Back taxes help However, on-the-job training courses, correspondence schools, and schools offering courses only through the Internet do not count as schools for the EIC. Back taxes help Vocational high school students. Back taxes help   Students who work in co-op jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. Back taxes help Permanently and totally disabled. Back taxes help   Your child is permanently and totally disabled if both of the following apply. Back taxes help He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Back taxes help A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Back taxes help Residency Test Your child must have lived with you in the United States for more than half of 2013. Back taxes help The following definitions clarify the residency test. Back taxes help United States. Back taxes help   This means the 50 states and the District of Columbia. Back taxes help It does not include Puerto Rico or U. Back taxes help S. Back taxes help possessions such as Guam. Back taxes help Homeless shelter. Back taxes help   Your home can be any location where you regularly live. Back taxes help You do not need a traditional home. Back taxes help For example, if your child lived with you for more than half the year in one or more homeless shelters, your child meets the residency test. Back taxes help Military personnel stationed outside the United States. Back taxes help   U. Back taxes help S. Back taxes help military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC. Back taxes help Extended active duty. Back taxes help   Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Back taxes help Once you begin serving your extended active duty, you are still considered to have been on extended active duty even if you do not serve more than 90 days. Back taxes help Birth or death of child. Back taxes help    child who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the child's home for more than half the time he or she was alive in 2013. Back taxes help Temporary absences. Back taxes help   Count time that you or your child is away from home on a temporary absence due to a special circumstance as time the child lived with you. Back taxes help Examples of a special circumstance include illness, school attendance, business, vacation, military service, and detention in a juvenile facility. Back taxes help Kidnapped child. Back taxes help   A kidnapped child is treated as living with you for more than half of the year if the child lived with you for more than half the part of the year before the date of the kidnapping. Back taxes help The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Back taxes help This treatment applies for all years until the child is returned. Back taxes help However, the last year this treatment can apply is the earlier of: The year there is a determination that the child is dead, or The year the child would have reached age 18. Back taxes help   If your qualifying child has been kidnapped and meets these requirements, enter “KC,” instead of a number, on line 6 of Schedule EIC. Back taxes help Joint Return Test To meet this test, the child cannot file a joint return for the year. Back taxes help Exception. Back taxes help   An exception to the joint return test applies if your child and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid. Back taxes help Example 1—child files joint return. Back taxes help You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Back taxes help He earned $25,000 for the year. Back taxes help The couple files a joint return. Back taxes help Because your daughter and her husband file a joint return, she is not your qualifying child. Back taxes help Example 2—child files joint return to get refund of tax withheld. Back taxes help Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Back taxes help They do not have a child. Back taxes help Neither is required to file a tax return. Back taxes help Taxes were taken out of their pay, so they file a joint return only to get a refund of the withheld taxes. Back taxes help The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Back taxes help Example 3—child files joint return to claim American opportunity credit. Back taxes help The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Back taxes help He and his wife are not required to file a tax return, but they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Back taxes help Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to claim a refund of income tax withheld or estimated tax paid. Back taxes help The exception to the joint return test does not apply, so your son is not your qualifying child. Back taxes help Married child. Back taxes help   Even if your child does not file a joint return, if your child was married at the end of the year, he or she cannot be your qualifying child unless: You can claim an exemption for the child, or The reason you cannot claim an exemption for the child is that you let the child's other parent claim the exemption under the Special rule for divorced or separated parents (or parents who live apart) described later. Back taxes help    Social security number. Back taxes help Your qualifying child must have a valid social security number (SSN), unless the child was born and died in 2013 and you attach to your return a copy of the child's birth certificate, death certificate, or hospital records showing a live birth. Back taxes help You cannot claim the EIC on the basis of a qualifying child if: The qualifying child's SSN is missing from your tax return or is incorrect, The qualifying child's social security card says “Not valid for employment” and was issued for use in getting a federally funded benefit, or Instead of an SSN, the qualifying child has: An individual taxpayer identification number (ITIN), which is issued to a noncitizen who cannot get an SSN, or An adoption taxpayer identification number (ATIN), issued to adopting parents who cannot get an SSN for the child being adopted until the adoption is final. Back taxes help   If you have more than one qualifying child and only one has a valid SSN, you can use only that child to claim the EIC. Back taxes help For more information about SSNs, see Rule 2. Back taxes help Rule 9—Your Qualifying Child Cannot Be Used by More Than One Person To Claim the EIC Sometimes a child meets the tests to be a qualifying child of more than one person. Back taxes help However, only one of these persons can actually treat the child as a qualifying child. Back taxes help Only that person can use the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). Back taxes help The exemption for the child. Back taxes help The child tax credit. Back taxes help Head of household filing status. Back taxes help The credit for child and dependent care expenses. Back taxes help The exclusion for dependent care benefits. Back taxes help The EIC. Back taxes help The other person cannot take any of these benefits based on this qualifying child. Back taxes help In other words, you and the other person cannot agree to divide these tax benefits between you. Back taxes help The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Back taxes help The tiebreaker rules, which follow, explain who, if anyone, can claim the EIC when more than one person has the same qualifying child. Back taxes help However, the tiebreaker rules do not apply if the other person is your spouse and you file a joint return. Back taxes help Tiebreaker rules. Back taxes help   To determine which person can treat the child as a qualifying child to claim the six tax benefits just listed, the following tiebreaker rules apply. Back taxes help If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Back taxes help If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents. Back taxes help If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. Back taxes help If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the year. Back taxes help If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the year. Back taxes help If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. Back taxes help If the child's parents file a joint return with each other, this rule can be applied by treating the parents' total AGI as divided evenly between them. Back taxes help See Example 8. Back taxes help   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. Back taxes help See Examples 1 through 13. Back taxes help   If you cannot claim the EIC because your qualifying child is treated under the tiebreaker rules as the qualifying child of another person for 2013, you may be able to take the EIC using a different qualifying child, but you cannot take the EIC using the rules in chapter 3 for people who do not have a qualifying child. Back taxes help If the other person cannot claim the EIC. Back taxes help   If you and someone else have the same qualifying child but the other person cannot claim the EIC because he or she is not eligible or his or her earned income or AGI is too high, you may be able to treat the child as a qualifying child. Back taxes help See Examples 6 and 7. Back taxes help But you cannot treat the child as a qualifying child to claim the EIC if the other person uses the child to claim any of the other six tax benefits listed earlier in this chapter. Back taxes help Examples. Back taxes help    The following examples may help you in determining whether you can claim the EIC when you and someone else have the same qualifying child. Back taxes help Example 1—child lived with parent and grandparent. Back taxes help You and your 2-year-old son Jimmy lived with your mother all year. Back taxes help You are 25 years old, unmarried, and your AGI is $9,000. Back taxes help Your only income was $9,000 from a part-time job. Back taxes help Your mother's only income was $20,000 from her job, and her AGI is $20,000. Back taxes help Jimmy's father did not live with you or Jimmy. Back taxes help The special rule explained later for divorced or separated parents (or parents who live apart) does not apply. Back taxes help Jimmy is a qualifying child of both you and your mother because he meets the relationship, age, residency, and joint return tests for both you and your mother. Back taxes help However, only one of you can treat him as a qualifying child to claim the EIC (and the other tax benefits listed earlier in this chapter for which that person qualifies). Back taxes help He is not a qualifying child of anyone else, including his father. Back taxes help If you do not claim Jimmy as a qualifying child for the EIC or any of the other tax benefits listed earlier, your mother can treat him as a qualifying child to claim the EIC (and any of the other tax benefits listed earlier for which she qualifies). Back taxes help Example 2—parent has higher AGI than grandparent. Back taxes help The facts are the same as in Example 1 except your AGI is $25,000. Back taxes help Because your mother's AGI is not higher than yours, she cannot claim Jimmy as a qualifying child. Back taxes help Only you can claim him. Back taxes help Example 3—two persons claim same child. Back taxes help The facts are the same as in Example 1 except that you and your mother both claim Jimmy as a qualifying child. Back taxes help In this case, you as the child's parent will be the only one allowed to claim Jimmy as a qualifying child for the EIC and the other tax benefits listed earlier for which you qualify. Back taxes help The IRS will disallow your mother's claim to the EIC and any of the other tax benefits listed earlier unless she has another qualifying child. Back taxes help Example 4—qualifying children split between two persons. Back taxes help The facts are the same as in Example 1 except that you also have two other young children who are qualifying children of both you and your mother. Back taxes help Only one of you can claim each child. Back taxes help However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Back taxes help For example, if you claim one child, your mother can claim the other two. Back taxes help Example 5—taxpayer who is a qualifying child. Back taxes help The facts are the same as in Example 1 except that you are only 18 years old. Back taxes help This means you are a qualifying child of your mother. Back taxes help Because of Rule 10, discussed next, you cannot claim the EIC and cannot claim your son as a qualifying child. Back taxes help Only your mother may be able to treat Jimmy as a qualifying child to claim the EIC. Back taxes help If your mother meets all the other requirements for claiming the EIC and you do not claim Jimmy as a qualifying child for any of the other tax benefits listed earlier, your mother can claim both you and Jimmy as qualifying children for the EIC. Back taxes help Example 6—grandparent with too much earned income to claim EIC. Back taxes help The facts are the same as in Example 1 except that your mother earned $50,000 from her job. Back taxes help Because your mother's earned income is too high for her to claim the EIC, only you can claim the EIC using your son. Back taxes help Example 7—parent with too much earned income to claim EIC. Back taxes help The facts are the same as in Example 1 except that you earned $50,000 from your job and your AGI is $50,500. Back taxes help Your earned income is too high for you to claim the EIC. Back taxes help But your mother cannot claim the EIC either, because her AGI is not higher than yours. Back taxes help Example 8—child lived with both parents and grandparent. Back taxes help The facts are the same as in Example 1 except that you and Jimmy's father are married to each other, live with Jimmy and your mother, and have AGI of $30,000 on a joint return. Back taxes help If you and your husband do not claim Jimmy as a qualifying child for the EIC or any of the other tax benefits listed earlier, your mother can claim him instead. Back taxes help Even though the AGI on your joint return, $30,000, is more than your mother's AGI of $20,000, for this purpose half of the joint AGI can be treated as yours and half as your husband's. Back taxes help In other words, each parent's AGI can be treated as $15,000. Back taxes help Example 9—separated parents. Back taxes help You, your husband, and your 10-year-old son Joey lived together until August 1, 2013, when your husband moved out of the household. Back taxes help In August and September, Joey lived with you. Back taxes help For the rest of the year, Joey lived with your husband, who is Joey's father. Back taxes help Joey is a qualifying child of both you and your husband because he lived with each of you for more than half the year and because he met the relationship, age, and joint return tests for both of you. Back taxes help At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the Special rule for divorced or separated parents (or parents who live apart) does not apply. Back taxes help You and your husband will file separate returns. Back taxes help Your husband agrees to let you treat Joey as a qualifying child. Back taxes help This means, if your husband does not claim Joey as a qualifying child for any of the tax benefits listed earlier, you can claim him as a qualifying child for any tax benefit listed earlier for which you qualify. Back taxes help However, your filing status is married filing separately, so you cannot claim the EIC or the credit for child and dependent care expenses. Back taxes help See Rule 3. Back taxes help Example 10—separated parents claim same child. Back taxes help The facts are the same as in Example 9 except that you and your husband both claim Joey as a qualifying child. Back taxes help In this case, only your husband will be allowed to treat Joey as a qualifying child. Back taxes help This is because, during 2013, the boy lived with him longer than with you. Back taxes help You cannot claim the EIC (either with or without a qualifying child). Back taxes help However, your husband's filing status is married filing separately, so he cannot claim the EIC or the credit for child and dependent care expenses. Back taxes help See Rule 3. Back taxes help Example 11—unmarried parents. Back taxes help You, your 5-year-old son, and your son's father lived together all year. Back taxes help You and your son's father are not married. Back taxes help Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, and joint return tests for both you and his father. Back taxes help Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Back taxes help Neither of you had any other income. Back taxes help Your son's father agrees to let you treat the child as a qualifying child. Back taxes help This means, if your son's father does not claim your son as a qualifying child for the EIC or any of the other tax benefits listed earlier, you can claim him as a qualifying child for the EIC and any of the other tax benefits listed earlier for which you qualify. Back taxes help Example 12—unmarried parents claim same child. Back taxes help The facts are the same as in Example 11 except that you and your son's father both claim your son as a qualifying child. Back taxes help In this case, only your son's father will be allowed to treat your son as a qualifying child. Back taxes help This is because his AGI, $14,000, is more than your AGI, $12,000. Back taxes help You cannot claim the EIC (either with or without a qualifying child). Back taxes help Example 13—child did not live with a parent. Back taxes help You and your 7-year-old niece, your sister's child, lived with your mother all year. Back taxes help You are 25 years old, and your AGI is $9,300. Back taxes help Your only income was from a part-time job. Back taxes help Your mother's AGI is $15,000. Back taxes help Her only income was from her job. Back taxes help Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Back taxes help Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, and joint return tests for both you and your mother. Back taxes help However, only your mother can treat her as a qualifying child. Back taxes help This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Back taxes help Special rule for divorced or separated parents (or parents who live apart). Back taxes help   A child will be treated as the qualifying child of his or her noncustodial parent (for purposes of claiming an exemption and the child tax credit, but not for the EIC) if all of the following statements are true. Back taxes help The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all time during the last 6 months of 2013, whether or not they are or were married. Back taxes help The child received over half of his or her support for the year from the parents. Back taxes help The child is in the custody of one or both parents for more than half of 2013. Back taxes help Either of the following statements is true. Back taxes help The custodial parent signs Form 8332 or a substantially similar statement that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches the form or statement to his or her return. Back taxes help If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. Back taxes help A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 provides that the noncustodial parent can claim the child as a dependent, and the noncustodial parent provides at least $600 for support of the child during 2013. Back taxes help For details, see Publication 501. Back taxes help Also see Applying Rule 9 to divorced or separated parents (or parents who live apart), next. Back taxes help Applying Rule 9 to divorced or separated parents (or parents who live apart). Back taxes help   If a child is treated as the qualifying child of the noncustodial parent under the special rule just described for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. Back taxes help However, the custodial parent, if eligible, or another eligible taxpayer can claim the child as a qualifying child for the EIC and other tax benefits listed earlier in this chapter. Back taxes help If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules determine which person can treat the child as a qualifying child. Back taxes help Example 1. Back taxes help You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Back taxes help Your AGI is $10,000. Back taxes help Your mother’s AGI is $25,000. Back taxes help Your son's father did not live with you or your son. Back taxes help Under the Special rule for divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for the child. Back taxes help However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the EIC. Back taxes help You and your mother did not have any child care expenses or dependent care benefits. Back taxes help If you do not claim your son as a qualifying child, your mother can claim him as a qualifying child for the EIC and head of household filing status, if she qualifies for these tax benefits. Back taxes help Example 2. Back taxes help The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Back taxes help Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Back taxes help Example 3. Back taxes help The facts are the same as in Example 1 except that you and your mother both claim your son as a qualifying child for the EIC. Back taxes help Your mother also claims him as a qualifying child for head of household filing status. Back taxes help You as the child's parent will be the only one allowed to claim your son as a qualifying child for the EIC. Back taxes help The IRS will disallow your mother's claim to the EIC and head of household filing status unless she has another qualifying child. Back taxes help Rule 10—You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Back taxes help ) if all of the following statements are true. Back taxes help You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Back taxes help Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Back taxes help You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student, and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. Back taxes help You lived with that person in the United States for more than half of the year. Back taxes help You are not filing a joint return for the year (or are filing a joint return only to claim a refund of withheld income tax or estimated tax paid). Back taxes help For more details about the tests to be a qualifying child, see Rule 8. Back taxes help If you are a qualifying child of another taxpayer, you cannot claim the EIC. Back taxes help This is true even if the person for whom you are a qualifying child does not claim the EIC or meet all of the rules to claim the EIC. Back taxes help Put “No” beside line 64a (Form 1040) or line 38a (Form 1040A). Back taxes help Example. Back taxes help You and your daughter lived with your mother all year. Back taxes help You are 22 years old, unmarried, and attended a trade school full time. Back taxes help You had a part-time job and earned $5,700. Back taxes help You had no other income. Back taxes help Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother. Back taxes help She can claim the EIC if she meets all the other requirements. Back taxes help Because you are your mother's qualifying child, you cannot claim the EIC. Back taxes help This is so even if your mother cannot or does not claim the EIC. Back taxes help Child of person not required to file a return. Back taxes help   You are not the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you met the relationship, age, residency, and joint return tests is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. Back taxes help Example 1—return not required. Back taxes help The facts are the same as in the last example except your mother had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Back taxes help As a result, you are not your mother's qualifying child. Back taxes help You can claim the EIC if you meet all the other requirements to do so. Back taxes help Example 2—return filed to get refund of tax withheld. Back taxes help The facts are the same as in Example 1 except your mother had wages of $1,500 and had income tax withheld from her wages. Back taxes help She files a return only to get a refund of the income tax withheld and does not claim the EIC or any other tax credits or deductions. Back taxes help As a result, you are not your mother's qualifying child. Back taxes help You can claim the EIC if you meet all the other requirements to do so. Back taxes help Example 3—return filed to get EIC. Back taxes help The facts are the same as in Example 2 except your mother claimed the EIC on her return. Back taxes help Since she filed the return to get the EIC, she is not filing it only to get a refund of income tax withheld. Back taxes help As a result, you are your mother's qualifying child. Back taxes help You cannot claim the EIC. Back taxes help Chapter 3—Rules If You Do Not Have a Qualifying Child Use this chapter if you do not have a qualifying child and have met all the rules in chapter 1. Back taxes help This chapter discusses Rules 11 through 14. Back taxes help You must meet all four of those rules, in addition to the rules in chapters 1 and 4, to qualify for the earned income credit without a qualifying child. Back taxes help You can file Form 1040, Form 1040A, or Form 1040EZ to claim the EIC without a qualifying child. Back taxes help If you meet all the rules in chapter 1 and this chapter, read chapter 4 to find out what to do next. Back taxes help If you have a qualifying child. Back taxes help   If you meet Rule 8, you have a qualifying child. Back taxes help If you meet Rule 8 and do not claim the EIC with a qualifying child, you cannot claim the EIC without a qualifying child. Back taxes help Rule 11—You Must Be at Least Age 25 but Under Age 65 You must be at least age 25 but under age 65 at the end of 2013. Back taxes help If you are married filing a joint return, either you or your spouse must be at least age 25 but under age 65 at the end of 2013. Back taxes help It does not matter which spouse meets the age test, as long as one of the spouses does. Back taxes help You meet the age test if you were born after December 31, 1948, and before January 2, 1989. Back taxes help If you are married filing a joint return, you meet the age test if either you or your spouse was born after December 31, 1948, and before January 2, 1989. Back taxes help If neither you nor your spouse meets the age test, you cannot claim the EIC. Back taxes help Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Back taxes help Death of spouse. Back taxes help   If you are filing a joint return with your spouse who died in 2013, you meet the age test if your spouse was at least age 25 but under age 65 at the time of death. Back taxes help Example 1. Back taxes help You are age 28 and unmarried. Back taxes help You meet the age test. Back taxes help Example 2—spouse meets age test. Back taxes help You are married and filing a joint return. Back taxes help You are age 23 and your spouse is age 27. Back taxes help You meet the age test because your spouse is at least age 25 but under age 65. Back taxes help Example 3—spouse dies in 2013. Back taxes help You are married and filing a joint return with your spouse who died in August 2013. Back taxes help You are age 67. Back taxes help Your spouse would have become age 65 in November 2013. Back taxes help Because your spouse was under age 65 when she died, you meet the age test. Back taxes help Rule 12—You Cannot Be the Dependent of Another Person If you are not filing a joint return, you meet this rule if: You checked box 6a on Form 1040 or 1040A, or You did not check the “You” box on line 5 of Form 1040EZ, and you entered $10,000 on that line. Back taxes help If you are filing a joint return, you meet this rule if: You checked both box 6a and box 6b on Form 1040 or 1040A, or You and your spouse did not check either the “You” box or the “Spouse” box on line 5 of Form 1040EZ, and you entered $20,000 on that line. Back taxes help If you are not sure whether someone else can claim you as a dependent, get Publication 501 and read the rules for claiming a dependent. Back taxes help If someone else can claim you as a dependent on his or her return, but does not, you still cannot claim the credit. Back taxes help Example 1. Back taxes help In 2013, you were age 25, single, and living at home with your parents. Back taxes help You worked and were not a student. Back taxes help You earned $7,500. Back taxes help Your parents cannot claim you as a dependent. Back taxes help When you file your return, you claim an exemption for yourself by not checking the You box on line 5 of your Form 1040EZ and by entering $10,000 on that line. Back taxes help You meet this rule. Back taxes help You can claim the EIC if you meet all the other requirements. Back taxes help Example 2. Back taxes help The facts are the same as in Example 1, except that you earned $2,000. Back taxes help Your parents can claim you as a dependent but decide not to. Back taxes help You do not meet this rule. Back taxes help You cannot claim the credit because your parents could have claimed you as a dependent. Back taxes help Joint returns. Back taxes help   You generally cannot be claimed as a dependent by another person if you are married and file a joint return. Back taxes help   However, another person may be able to claim you as a dependent if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. Back taxes help But neither you nor your spouse can be claimed as a dependent by another person if you claim the EIC on your joint return. Back taxes help Example 1—return filed to get refund of tax withheld. Back taxes help You are 26 years old. Back taxes help You and your wife live with your parents and had $800 of wages from part-time jobs and no other income. Back taxes help Neither you nor your wife is required to file a tax return. Back taxes help You do not have a child. Back taxes help Taxes were taken out of your pay so you file a joint return only to get a refund of the withheld taxes. Back taxes help Your parents are not disqualified from claiming an exemption for you just because you filed a joint return. Back taxes help They can claim exemptions for you and your wife if all the other tests to do so are met. Back taxes help Example 2—return filed to get EIC. Back taxes help The facts are the same as in Example 1except no taxes were taken out of your pay. Back taxes help Also, you and your wife are not required to file a tax return, but you file a joint return to claim an EIC of $63 and get a refund of that amount. Back taxes help Because claiming the EIC is your reason for filing the return, you are not filing it only to claim a refund of income tax withheld or estimated tax paid. Back taxes help Your parents cannot claim an exemption for either you or your wife. Back taxes help Rule 13—You Cannot Be a Qualifying Child of Another Taxpayer You are a qualifying child of another taxpayer (your parent, guardian, foster parent, etc. Back taxes help ) if all of the following statements are true. Back taxes help You are that person's son, daughter, stepchild, foster child, or a descendant of any of them. Back taxes help Or, you are that person's brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Back taxes help You were: Under age 19 at the end of the year and younger than that person (or that person's spouse, if the person files jointly), Under age 24 at the end of the year, a student, and younger than that person (or that person's spouse, if the person files jointly), or Permanently and totally disabled, regardless of age. Back taxes help You lived with that person in the United States for more than half of the year. Back taxes help You are not filing a joint return for the year (or are filing a joint return only to claim a refund of withheld income tax or estimated tax paid). Back taxes help For more details about the tests to be a qualifying child, see Rule 8. Back taxes help If you are a qualifying child of another taxpayer, you cannot claim the EIC. Back taxes help This is true even if the person for whom you are a qualifying child does not claim the EIC or meet all of the rules to claim the EIC. Back taxes help Put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Back taxes help Example. Back taxes help You lived with your mother all year. Back taxes help You are age 26, unmarried, and permanently and totally disabled. Back taxes help Your only income was from a community center where you went three days a week to answer telephones. Back taxes help You earned $5,000 for the year and provided more than half of your own support. Back taxes help Because you meet the relationship, age, residency, and joint return tests, you are a qualifying child of your mother for the EIC. Back taxes help She can claim the EIC if she meets all the other requirements. Back taxes help Because you are a qualifying child of your mother, you cannot claim the EIC. Back taxes help This is so even if your mother cannot or does not claim the EIC. Back taxes help Joint returns. Back taxes help   You generally cannot be a qualifying child of another taxpayer if you are married and file a joint return. Back taxes help   However, you may be a qualifying child of another taxpayer if you and your spouse file a joint return merely to claim a refund of income tax withheld or estimated tax paid. Back taxes help But neither you nor your spouse can be a qualifying child of another taxpayer if you claim the EIC on your joint return. Back taxes help Child of person not required to file a return. Back taxes help   You are not the qualifying child of another taxpayer (and so may qualify to claim the EIC) if the person for whom you meet the relationship, age, residency, and joint return tests is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. Back taxes help Example 1—return not required. Back taxes help You lived all year with your father. Back taxes help You are 27 years old, unmarried, permanently and totally disabled, and earned $13,000. Back taxes help You have no other income, no children, and provided more than half of your own support. Back taxes help Your father had no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Back taxes help As a result, you are not your father's qualifying child. Back taxes help You can claim the EIC if you meet all the other requirements to do so. Back taxes help Example 2—return filed to get refund of tax withheld. Back taxes help The facts are the same as in Example 1 except your father had wages of $1,500 and had income tax withheld from his wages. Back taxes help He files a return only to get a refund of the income tax withheld and does not claim the EIC or any other tax credits or deductions. Back taxes help As a result, you are not your father's qualifying child. Back taxes help You can claim the EIC if you meet all the other requirements to do so. Back taxes help Example 3—return filed to get EIC. Back taxes help The facts are the same as in Example 2 except your father claimed the EIC on his return. Back taxes help Since he filed the return to get the EIC, he is not filing it only to get a refund of income tax withheld. Back taxes help As a result, you are your father's qualifying child. Back taxes help You cannot claim the EIC. Back taxes help Rule 14—You Must Have Lived in the United States More Than Half of the Year Your home (and your spouse's, if filing a joint return) must have been in the United States for more than half the year. Back taxes help If it was not, put “No” next to line 64a (Form 1040), line 38a (Form 1040A), or line 8a (Form 1040EZ). Back taxes help United States. Back taxes help   This means the 50 states and the District of Columbia. Back taxes help It does not include Puerto Rico or U. Back taxes help S. Back taxes help possessions such as Guam. Back taxes help Homeless shelter. Back taxes help   Your home can be any location where you regularly live. Back taxes help You do not need a traditional home. Back taxes help If you lived in one or more homeless shelters in the United States for more than half the year, you meet this rule. Back taxes help Military personnel stationed outside the United States. Back taxes help   U. Back taxes help S. Back taxes help military personnel stationed outside the United States on extended active duty (defined in chapter 2) are considered to live in the United States during that duty period for purposes of the EIC. Back taxes help Chapter 4—Figuring and Claiming the EIC You must meet one more rule to claim the EIC. Back taxes help You need to know the amount of your earned income to see if you meet the rule in this chapter. Back taxes help You also need to know that amount to figure your EIC. Back taxes help Rule 15—Earned Income Limits Your earned income must be less than: $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, or $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. Back taxes help Earned Income Earned income generally means wages, salaries, tips, other taxable employee pay, and net earnings from self-employment. Back taxes help Employee pay is earned income only if it is taxable. Back taxes help Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. Back taxes help But there is an exception for nontaxable combat pay, which you can choose to include in earned income. Back taxes help Earned income is explained in detail in Rule 7 in chapter 1. Back taxes help Figuring earned income. Back taxes help   If you are self-employed, a statutory employee, or a member of the clergy or a church employee who files Schedule SE (Form 1040), you will figure your earned income when you fill out Part 4 of EIC Worksheet B in the Form 1040 instructions. Back taxes help   Otherwise, figure your earned income by using the worksheet in Step 5 of the Form 1040 instructions for lines 64a and 64b or the Form 1040A instructions for lines 38a and 38b, or the worksheet in Step 2 of the Form 1040EZ instructions for lines 8a and 8b. Back taxes help   When using one of those worksheets to figure your earned income, you will start with the amount on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ). Back taxes help You will then reduce that amount by any amount included on that line and described in the following list. Back taxes help Scholarship or fellowship grants not reported on a Form W-2. Back taxes help A scholarship or fellowship grant that was not reported to you on a Form W-2 is not considered earned income for the earned income credit. Back taxes help Inmate's income. Back taxes help Amounts received for work performed while an inmate in a penal institution are not earned income for the earned income credit. Back taxes help This includes amounts received for work performed while in a work release program or while in a halfway house. Back taxes help If you received any amount for work done while an inmate in a penal institution and that amount is included in the total on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ), put “PRI” and the amount on the dotted line next to line 7 (Form 1040), in the space to the left of the entry space for line 7 (Form 1040A), or in the space to the left of line 1 (Form 1040EZ). Back taxes help Pension or annuity from deferred compensation plans. Back taxes help A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan is not considered earned income for the earned income credit. Back taxes help If you received such an amount and it was included in the total on line 7 (Form 1040 or Form 1040A) or line 1 (Form 1040EZ), put “DFC” and the amount on the dotted line next to line 7 (Form 1040), in the space to the left of the entry space for line 7 (Form 1040A), or in the space to the left of line 1 (Form 1040EZ). Back taxes help This amount may be reported in box 11 of your Form W-2. Back taxes help If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or an annuity. Back taxes help Clergy. Back taxes help   If you are a member of the clergy who files Schedule SE and the amount on line 2 of that schedule includes an amount that was also re
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Back taxes help Publication 526 - Main Content Table of Contents Organizations That Qualify To Receive Deductible ContributionsTypes of Qualified Organizations Contributions You Can DeductContributions From Which You Benefit Expenses Paid for Student Living With You Out-of-Pocket Expenses in Giving Services Expenses of Whaling Captains Contributions You Cannot DeductContributions to Individuals Contributions to Nonqualified Organizations Contributions From Which You Benefit Value of Time or Services Personal Expenses Appraisal Fees Contributions to Donor-Advised Funds Partial Interest in Property Contributions of PropertyContributions Subject to Special Rules Determining Fair Market Value Giving Property That Has Decreased in Value Giving Property That Has Increased in Value Penalty When To DeductChecks. Back taxes help Text message. Back taxes help Credit card. Back taxes help Pay-by-phone account. Back taxes help Stock certificate. Back taxes help Promissory note. Back taxes help Option. Back taxes help Borrowed funds. Back taxes help Conditional gift. Back taxes help Limits on Deductions50% Limit 30% Limit Special 30% Limit for Capital Gain Property 20% Limit Special 50% Limit for Qualified Conservation Contributions How To Figure Your Deduction When Limits Apply Records To KeepCash Contributions Noncash Contributions Out-of-Pocket Expenses How To ReportReporting expenses for student living with you. Back taxes help Total deduction over $500. Back taxes help Deduction over $5,000 for one item. Back taxes help Vehicle donations. Back taxes help Clothing and household items not in good used condition. Back taxes help Easement on building in historic district. Back taxes help Deduction over $500,000. Back taxes help How To Get Tax HelpLow Income Taxpayer Clinics Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if you make them to a qualified organization. Back taxes help Most organizations, other than churches and governments, must apply to the IRS to become a qualified organization. Back taxes help How to check whether an organization can receive deductible charitable contributions. Back taxes help   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Back taxes help Or go to IRS. Back taxes help gov. Back taxes help Click on “Tools” and then on “Exempt Organizations Select Check” (www. Back taxes help irs. Back taxes help gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Back taxes help This online tool will enable you to search for qualified organizations. Back taxes help You can also call the IRS to find out if an organization is qualified. Back taxes help Call 1-877-829-5500. Back taxes help People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-829-4059. Back taxes help Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Back taxes help gsa. Back taxes help gov/fedrelay. Back taxes help Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Back taxes help A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). Back taxes help It must, however, be organized and operated only for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Back taxes help Certain organizations that foster national or international amateur sports competition also qualify. Back taxes help War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Back taxes help Domestic fraternal societies, orders, and associations operating under the lodge system. Back taxes help (Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Back taxes help ) Certain nonprofit cemetery companies or corporations. Back taxes help (Your contribution to this type of organization is not deductible if it can be used for the care of a specific lot or mausoleum crypt. Back taxes help ) The United States or any state, the District of Columbia, a U. Back taxes help S. Back taxes help possession (including Puerto Rico), a political subdivision of a state or U. Back taxes help S. Back taxes help possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Back taxes help (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes. Back taxes help ) Example 1. Back taxes help You contribute cash to your city's police department to be used as a reward for information about a crime. Back taxes help The city police department is a qualified organization, and your contribution is for a public purpose. Back taxes help You can deduct your contribution. Back taxes help Example 2. Back taxes help You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Back taxes help Because the trust fund is part of the U. Back taxes help S. Back taxes help Government, you contributed to a qualified organization. Back taxes help You can deduct your contribution. Back taxes help Examples. Back taxes help   The following list gives some examples of qualified organizations. Back taxes help Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Back taxes help Most nonprofit charitable organizations such as the American Red Cross and the United Way. Back taxes help Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Back taxes help This also includes nonprofit daycare centers that provide childcare to the general public if substantially all the childcare is provided to enable parents and guardians to be gainfully employed. Back taxes help However, if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution, as explained later under Contributions You Cannot Deduct . Back taxes help Nonprofit hospitals and medical research organizations. Back taxes help Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Back taxes help Nonprofit volunteer fire companies. Back taxes help Nonprofit organizations that develop and maintain public parks and recreation facilities. Back taxes help Civil defense organizations. Back taxes help Canadian charities. Back taxes help   You may be able to deduct contributions to certain Canadian charitable organizations covered under an income tax treaty with Canada. Back taxes help To deduct your contribution to a Canadian charity, you generally must have income from sources in Canada. Back taxes help See Publication 597, Information on the United States-Canada Income Tax Treaty, for information on how to figure your deduction. Back taxes help Mexican charities. Back taxes help   Under the U. Back taxes help S. Back taxes help -Mexico income tax treaty, a contribution to a Mexican charitable organization may be deductible, but only if and to the extent the contribution would have been treated as a charitable contribution to a public charity created or organized under U. Back taxes help S. Back taxes help law. Back taxes help To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. Back taxes help The limits described in Limits on Deductions , later, apply and are figured using your income from Mexican sources. Back taxes help Israeli charities. Back taxes help   Under the U. Back taxes help S. Back taxes help -Israel income tax treaty, a contribution to an Israeli charitable organization is deductible if and to the extent the contribution would have been treated as a charitable contribution if the organization had been created or organized under U. Back taxes help S. Back taxes help law. Back taxes help To deduct your contribution to an Israeli charity, you must have income from sources in Israel. Back taxes help The limits described in Limits on Deductions , later, apply. Back taxes help The deduction is also limited to 25% of your adjusted gross income from Israeli sources. Back taxes help Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Back taxes help A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement. Back taxes help The contributions must be made to a qualified organization and not set aside for use by a specific person. Back taxes help If you give property to a qualified organization, you generally can deduct the fair market value of the property at the time of the contribution. Back taxes help See Contributions of Property , later. Back taxes help Your deduction for charitable contributions generally cannot be more than 50% of your adjusted gross income (AGI), but in some cases 20% and 30% limits may apply. Back taxes help In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited. Back taxes help See Limits on Deductions , later. Back taxes help Table 1 in this publication gives examples of contributions you can and cannot deduct. Back taxes help Contributions From Which You Benefit If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Back taxes help Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Back taxes help If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Back taxes help For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Back taxes help Example 1. Back taxes help You pay $65 for a ticket to a dinner-dance at a church. Back taxes help Your entire $65 payment goes to the church. Back taxes help The ticket to the dinner-dance has a fair market value of $25. Back taxes help When you buy your ticket, you know its value is less than your payment. Back taxes help To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Back taxes help You can deduct $40 as a charitable contribution to the church. Back taxes help Example 2. Back taxes help At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Back taxes help The amount you pay is no more than the fair rental value. Back taxes help You have not made a deductible charitable contribution. Back taxes help Athletic events. Back taxes help   If you make a payment to, or for the benefit of, a college or university and, as a result, you receive the right to buy tickets to an athletic event in the athletic stadium of the college or university, you can deduct 80% of the payment as a charitable contribution. Back taxes help   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Back taxes help Subtract the price of the tickets from your payment. Back taxes help You can deduct 80% of the remaining amount as a charitable contribution. Back taxes help Example 1. Back taxes help You pay $300 a year for membership in a university's athletic scholarship program. Back taxes help The only benefit of membership is that you have the right to buy one season ticket for a seat in a designated area of the stadium at the university's home football games. Back taxes help You can deduct $240 (80% of $300) as a charitable contribution. Back taxes help Example 2. Back taxes help The facts are the same as in Example 1 except your $300 payment includes the purchase of one season ticket for the stated ticket price of $120. Back taxes help You must subtract the usual price of a ticket ($120) from your $300 payment. Back taxes help The result is $180. Back taxes help Your deductible charitable contribution is $144 (80% of $180). Back taxes help Charity benefit events. Back taxes help   If you pay a qualified organization more than fair market value for the right to attend a charity ball, banquet, show, sporting event, or other benefit event, you can deduct only the amount that is more than the value of the privileges or other benefits you receive. Back taxes help   If there is an established charge for the event, that charge is the value of your benefit. Back taxes help If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Back taxes help Whether you use the tickets or other privileges has no effect on the amount you can deduct. Back taxes help However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Back taxes help    Even if the ticket or other evidence of payment indicates that the payment is a “contribution,” this does not mean you can deduct the entire amount. Back taxes help If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Back taxes help Example. Back taxes help You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Back taxes help Printed on the ticket is “Contribution–$40. Back taxes help ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Back taxes help Membership fees or dues. Back taxes help   You may be able to deduct membership fees or dues you pay to a qualified organization. Back taxes help However, you can deduct only the amount that is more than the value of the benefits you receive. Back taxes help   You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Back taxes help They are not qualified organizations. Back taxes help Certain membership benefits can be disregarded. Back taxes help   Both you and the organization can disregard the following membership benefits if you get them in return for an annual payment of $75 or less. Back taxes help Any rights or privileges, other than those discussed under Athletic events , earlier, that you can use frequently while you are a member, such as: Free or discounted admission to the organization's facilities or events, Free or discounted parking, Preferred access to goods or services, and Discounts on the purchase of goods and services. Back taxes help Admission, while you are a member, to events open only to members of the organization if the organization reasonably projects that the cost per person (excluding any allocated overhead) is not more than $10. Back taxes help 20. Back taxes help Token items. Back taxes help   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Back taxes help You receive only a small item or other benefit of token value. Back taxes help The qualified organization correctly determines that the value of the item or benefit you received is not substantial and informs you that you can deduct your payment in full. Back taxes help The organization determines whether the value of an item or benefit is substantial by using Revenue Procedures 90-12 and 92-49 and the inflation adjustment in Revenue Procedure 2012–41. Back taxes help Written statement. Back taxes help   A qualified organization must give you a written statement if you make a payment of more than $75 that is partly a contribution and partly for goods or services. Back taxes help The statement must say you can deduct only the amount of your payment that is more than the value of the goods or services you received. Back taxes help It must also give you a good faith estimate of the value of those goods or services. Back taxes help   The organization can give you the statement either when it solicits or when it receives the payment from you. Back taxes help Exception. Back taxes help   An organization will not have to give you this statement if one of the following is true. Back taxes help The organization is: A governmental organization described in (5) under Types of Qualified Organizations , earlier, or An organization formed only for religious purposes, and the only benefit you receive is an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in commercial transactions outside the donative context. Back taxes help You receive only items whose value is not substantial as described under Token items , earlier. Back taxes help You receive only membership benefits that can be disregarded, as described under Membership fees or dues , earlier. Back taxes help Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Back taxes help You can deduct qualifying expenses for a foreign or American student who: Lives in your home under a written agreement between you and a qualified organization (defined later) as part of a program of the organization to provide educational opportunities for the student, Is not your relative (defined later) or dependent (also defined later), and Is a full-time student in the twelfth or any lower grade at a school in the United States. Back taxes help You can deduct up to $50 a month for each full calendar month the student lives with you. Back taxes help Any month when conditions (1) through (3) above are met for 15 or more days counts as a full month. Back taxes help Qualified organization. Back taxes help   For these purposes, a qualified organization can be any of the organizations described earlier under Types of Qualified Organizations , except those in (4) and (5). Back taxes help For example, if you are providing a home for a student as part of a state or local government program, you cannot deduct your expenses as charitable contributions. Back taxes help But see Foster parents under Out-of-Pocket Expenses in Giving Services, later, if you provide the home as a foster parent. Back taxes help Relative. Back taxes help   The term “relative” means any of the following persons. Back taxes help Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Back taxes help A legally adopted child is considered your child. Back taxes help Your brother, sister, half brother, half sister, stepbrother, or stepsister. Back taxes help Your father, mother, grandparent, or other direct ancestor. Back taxes help Your stepfather or stepmother. Back taxes help A son or daughter of your brother or sister. Back taxes help A brother or sister of your father or mother. Back taxes help Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Back taxes help Dependent. Back taxes help   For this purpose, the term “dependent” means: A person you can claim as a dependent, or A person you could have claimed as a dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Back taxes help    Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. Back taxes help S. Back taxes help residents and cannot be claimed as dependents. Back taxes help Qualifying expenses. Back taxes help   You may be able to deduct the cost of books, tuition, food, clothing, transportation, medical and dental care, entertainment, and other amounts you actually spend for the well-being of the student. Back taxes help Expenses that do not qualify. Back taxes help   You cannot deduct depreciation on your home, the fair market value of lodging, and similar items not considered amounts actually spent by you. Back taxes help Nor can you deduct general household expenses, such as taxes, insurance, and repairs. Back taxes help Reimbursed expenses. Back taxes help   In most cases, you cannot claim a charitable contribution deduction if you are compensated or reimbursed for any part of the costs of having a student live with you. Back taxes help However, you may be able to claim a charitable contribution deduction for the unreimbursed portion of your expenses if you are reimbursed only for an extraordinary or one-time item, such as a hospital bill or vacation trip, you paid in advance at the request of the student's parents or the sponsoring organization. Back taxes help Mutual exchange program. Back taxes help   You cannot deduct the costs of a foreign student living in your home under a mutual exchange program through which your child will live with a family in a foreign country. Back taxes help Reporting expenses. Back taxes help   For a list of what you must file with your return if you deduct expenses for a student living with you, see Reporting expenses for student living with you under How To Report, later. Back taxes help Out-of-Pocket Expenses in Giving Services Table 2. Back taxes help Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Back taxes help All of the rules explained in this publication also apply. Back taxes help See, in particular, Out-of-Pocket Expenses in Giving Services . Back taxes help Question Answer I volunteer 6 hours a week in the office of a qualified organization. Back taxes help The receptionist is paid $10 an hour for the same work. Back taxes help Can I deduct $60 a week for my time? No, you cannot deduct the value of your time or services. Back taxes help  The office is 30 miles from my home. Back taxes help Can I deduct any of my car expenses for these trips? Yes, you can deduct the costs of gas and oil that are directly related to getting to and from the place where you volunteer. Back taxes help If you do not want to figure your actual costs, you can deduct 14 cents for each mile. Back taxes help I volunteer as a Red Cross nurse's aide at a hospital. Back taxes help Can I deduct the cost of the uniforms I must wear? Yes, you can deduct the cost of buying and cleaning your uniforms if the hospital is a qualified organization, the uniforms are not suitable for everyday use, and you must wear them when volunteering. Back taxes help I pay a babysitter to watch my children while I volunteer for a qualified organization. Back taxes help Can I deduct these costs? No, you cannot deduct payments for childcare expenses as a charitable contribution, even if you would be unable to volunteer without childcare. Back taxes help (If you have childcare expenses so you can work for pay, see Publication 503, Child and Dependent Care Expenses. Back taxes help ) Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. Back taxes help The amounts must be: Unreimbursed, Directly connected with the services, Expenses you had only because of the services you gave, and Not personal, living, or family expenses. Back taxes help Table 2 contains questions and answers that apply to some individuals who volunteer their services. Back taxes help Underprivileged youths selected by charity. Back taxes help   You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. Back taxes help The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Back taxes help Your own similar expenses in accompanying the youths are not deductible. Back taxes help Conventions. Back taxes help   If a qualified organization selects you to attend a convention as its representative, you can deduct your unreimbursed expenses for travel, including reasonable amounts for meals and lodging, while away from home overnight for the convention. Back taxes help However, see Travel , later. Back taxes help   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Back taxes help You also cannot deduct travel, meals and lodging, and other expenses for your spouse or children. Back taxes help   You cannot deduct your travel expenses in attending a church convention if you go only as a member of your church rather than as a chosen representative. Back taxes help You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Back taxes help Uniforms. Back taxes help   You can deduct the cost and upkeep of uniforms that are not suitable for everyday use and that you must wear while performing donated services for a charitable organization. Back taxes help Foster parents. Back taxes help   You may be able to deduct as a charitable contribution some of the costs of being a foster parent (foster care provider) if you have no profit motive in providing the foster care and are not, in fact, making a profit. Back taxes help A qualified organization must select the individuals you take into your home for foster care. Back taxes help   You can deduct expenses that meet both of the following requirements. Back taxes help They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Back taxes help They are incurred primarily to benefit the qualified organization. Back taxes help   Unreimbursed expenses that you cannot deduct as charitable contributions may be considered support provided by you in determining whether you can claim the foster child as a dependent. Back taxes help For details, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Back taxes help Example. Back taxes help You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Back taxes help Your unreimbursed expenses are not deductible as charitable contributions. Back taxes help Church deacon. Back taxes help   You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. Back taxes help These expenses include the cost of vestments, books, and transportation required in order to serve in the program as either a deacon candidate or an ordained deacon. Back taxes help Car expenses. Back taxes help   You can deduct as a charitable contribution any unreimbursed out-of-pocket expenses, such as the cost of gas and oil, directly related to the use of your car in giving services to a charitable organization. Back taxes help You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Back taxes help   If you do not want to deduct your actual expenses, you can use a standard mileage rate of 14 cents a mile to figure your contribution. Back taxes help   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Back taxes help   You must keep reliable written records of your car expenses. Back taxes help For more information, see Car expenses under Records To Keep, later. Back taxes help Travel. Back taxes help   Generally, you can claim a charitable contribution deduction for travel expenses necessarily incurred while you are away from home performing services for a charitable organization only if there is no significant element of personal pleasure, recreation, or vacation in the travel. Back taxes help This applies whether you pay the expenses directly or indirectly. Back taxes help You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Back taxes help   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Back taxes help Even if you enjoy the trip, you can take a charitable contribution deduction for your travel expenses if you are on duty in a genuine and substantial sense throughout the trip. Back taxes help However, if you have only nominal duties, or if for significant parts of the trip you do not have any duties, you cannot deduct your travel expenses. Back taxes help Example 1. Back taxes help You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Back taxes help You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Back taxes help You participate in the activities of the group and enjoy your time with them. Back taxes help You oversee the breaking of camp and you transport the group home. Back taxes help You can deduct your travel expenses. Back taxes help Example 2. Back taxes help You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Back taxes help The project is sponsored by a charitable organization. Back taxes help In most circumstances, you cannot deduct your expenses. Back taxes help Example 3. Back taxes help You work for several hours each morning on an archeological dig sponsored by a charitable organization. Back taxes help The rest of the day is free for recreation and sightseeing. Back taxes help You cannot take a charitable contribution deduction even though you work very hard during those few hours. Back taxes help Example 4. Back taxes help You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Back taxes help In the evening you go to the theater. Back taxes help You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Back taxes help Daily allowance (per diem). Back taxes help   If you provide services for a charitable organization and receive a daily allowance to cover reasonable travel expenses, including meals and lodging while away from home overnight, you must include in income any part of the allowance that is more than your deductible travel expenses. Back taxes help You may be able to deduct any necessary travel expenses that are more than the allowance. Back taxes help Deductible travel expenses. Back taxes help   These include: Air, rail, and bus transportation, Out-of-pocket expenses for your car, Taxi fares or other costs of transportation between the airport or station and your hotel, Lodging costs, and The cost of meals. Back taxes help Because these travel expenses are not business-related, they are not subject to the same limits as business related expenses. Back taxes help For information on business travel expenses, see Travel in Publication 463, Travel, Entertainment, Gift, and Car Expenses. Back taxes help Expenses of Whaling Captains You may be able to deduct as a charitable contribution any reasonable and necessary whaling expenses you pay during the year to carry out sanctioned whaling activities. Back taxes help The deduction is limited to $10,000 a year. Back taxes help To claim the deduction, you must be recognized by the Alaska Eskimo Whaling Commission as a whaling captain charged with the responsibility of maintaining and carrying out sanctioned whaling activities. Back taxes help Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission. Back taxes help Whaling expenses include expenses for: Acquiring and maintaining whaling boats, weapons, and gear used in sanctioned whaling activities, Supplying food for the crew and other provisions for carrying out these activities, and Storing and distributing the catch from these activities. Back taxes help You must keep records showing the time, place, date, amount, and nature of the expenses. Back taxes help For details, see Revenue Procedure 2006-50, which is on page 944 of Internal Revenue Bulletin 2006-47 at www. Back taxes help irs. Back taxes help gov/pub/irs-irbs/irb06-47. Back taxes help pdf. Back taxes help Contributions You Cannot Deduct There are some contributions you cannot deduct and others you can deduct only in part. Back taxes help You cannot deduct as a charitable contribution: A contribution to a specific individual, A contribution to a nonqualified organization, The part of a contribution from which you receive or expect to receive a benefit, The value of your time or services, Your personal expenses, A qualified charitable distribution from an individual retirement arrangement (IRA), Appraisal fees, Certain contributions to donor-advised funds, or Certain contributions of partial interests in property. Back taxes help Detailed discussions of these items follow. Back taxes help Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Back taxes help Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members. Back taxes help Contributions to individuals who are needy or worthy. Back taxes help You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Back taxes help But you can deduct a contribution to a qualified organization that helps needy or worthy individuals if you do not indicate that your contribution is for a specific person. Back taxes help Example. Back taxes help You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Back taxes help However, you cannot deduct contributions earmarked for relief of a particular individual or family. Back taxes help Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Back taxes help Expenses you paid for another person who provided services to a qualified organization. Back taxes help Example. Back taxes help Your son does missionary work. Back taxes help You pay his expenses. Back taxes help You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Back taxes help Payments to a hospital that are for a specific patient's care or for services for a specific patient. Back taxes help You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization. Back taxes help Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Back taxes help Certain state bar associations if: The bar is not a political subdivision of a state, The bar has private, as well as public, purposes, such as promoting the professional interests of members, and Your contribution is unrestricted and can be used for private purposes. Back taxes help Chambers of commerce and other business leagues or organizations. Back taxes help Civic leagues and associations. Back taxes help Communist organizations. Back taxes help Country clubs and other social clubs. Back taxes help Foreign organizations other than certain Canadian, Israeli, or Mexican charitable organizations. Back taxes help (See Canadian charities , Mexican charities , and Israeli charities under Organizations That Qualify To Receive Deductible Contributions, earlier. Back taxes help ) Also, you cannot deduct a contribution you made to any qualifying organization if the contribution is earmarked to go to a foreign organization. Back taxes help However, certain contributions to a qualified organization for use in a program conducted by a foreign charity may be deductible as long as they are not earmarked to go to the foreign charity. Back taxes help For the contribution to be deductible, the qualified organization must approve the program as furthering its own exempt purposes and must keep control over the use of the contributed funds. Back taxes help The contribution is also deductible if the foreign charity is only an administrative arm of the qualified organization. Back taxes help Homeowners' associations. Back taxes help Labor unions. Back taxes help But you may be able to deduct union dues as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit, on Schedule A (Form 1040). Back taxes help See Publication 529, Miscellaneous Deductions. Back taxes help Political organizations and candidates. Back taxes help Contributions From Which You Benefit If you receive or expect to receive a financial or economic benefit as a result of making a contribution to a qualified organization, you cannot deduct the part of the contribution that represents the value of the benefit you receive. Back taxes help See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Back taxes help These contributions include the following. Back taxes help Contributions for lobbying. Back taxes help This includes amounts you earmark for use in, or in connection with, influencing specific legislation. Back taxes help Contributions to a retirement home for room, board, maintenance, or admittance. Back taxes help Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Back taxes help Costs of raffles, bingo, lottery, etc. Back taxes help You cannot deduct as a charitable contribution amounts you pay to buy raffle or lottery tickets or to play bingo or other games of chance. Back taxes help For information on how to report gambling winnings and losses, see Deductions Not Subject to the 2% Limit in Publication 529. Back taxes help Dues to fraternal orders and similar groups. Back taxes help However, see Membership fees or dues under Contributions From Which You Benefit, earlier. Back taxes help Tuition, or amounts you pay instead of tuition. Back taxes help You cannot deduct as a charitable contribution amounts you pay as tuition even if you pay them for children to attend parochial schools or qualifying nonprofit daycare centers. Back taxes help You also cannot deduct any fixed amount you must pay in addition to, or instead of, tuition to enroll in a private school, even if it is designated as a “donation. Back taxes help ” Contributions connected with split-dollar insurance arrangements. Back taxes help You cannot deduct any part of a contribution to a charitable organization if, in connection with the contribution, the organization directly or indirectly pays, has paid, or is expected to pay any premium on any life insurance, annuity, or endowment contract for which you, any member of your family, or any other person chosen by you (other than a qualified charitable organization) is a beneficiary. Back taxes help Example. Back taxes help You donate money to a charitable organization. Back taxes help The charity uses the money to purchase a cash value life insurance policy. Back taxes help The beneficiaries under the insurance policy include members of your family. Back taxes help Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation. Back taxes help Qualified Charitable Distributions A qualified charitable distribution (QCD) is a distribution made directly by the trustee of your individual retirement arrangement (IRA), other than a SEP or SIMPLE IRA, to certain qualified organizations. Back taxes help You must have been at least age 70½ when the distribution was made. Back taxes help Your total QCDs for the year cannot be more than $100,000. Back taxes help If all the requirements are met, a QCD is nontaxable, but you cannot claim a charitable contribution deduction for a QCD. Back taxes help See Publication 590, Individual Retirement Arrangements (IRAs), for more information about QCDs. Back taxes help Value of Time or Services You cannot deduct the value of your time or services, including: Blood donations to the American Red Cross or to blood banks, and The value of income lost while you work as an unpaid volunteer for a qualified organization. Back taxes help Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Back taxes help The cost of meals you eat while you perform services for a qualified organization, unless it is necessary for you to be away from home overnight while performing the services. Back taxes help Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. Back taxes help However, you may be able to claim a tax credit for these expenses. Back taxes help Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. Back taxes help See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. Back taxes help You also may be able to claim an exemption for the child. Back taxes help See Exemptions for Dependents in Publication 501 for more information. Back taxes help Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property. Back taxes help But you can claim them, subject to the 2%-of-adjusted-gross-income limit, as a miscellaneous itemized deduction on Schedule A (Form 1040). Back taxes help See Deductions Subject to the 2% Limit in Publication 529 for more information. Back taxes help Contributions to Donor-Advised Funds You cannot deduct a contribution to a donor-advised fund if: The qualified organization that sponsors the fund is a war veterans' organization, a fraternal society, or a nonprofit cemetery company, or You do not have an acknowledgment from that sponsoring organization that it has exclusive legal control over the assets contributed. Back taxes help There are also other circumstances in which you cannot deduct your contribution to a donor-advised fund. Back taxes help Generally, a donor-advised fund is a fund or account in which a donor can, because of being a donor, advise the fund how to distribute or invest amounts held in the fund. Back taxes help For details, see Internal Revenue Code section 170(f)(18). Back taxes help Partial Interest in Property Generally, you cannot deduct a contribution of less than your entire interest in property. Back taxes help For details, see Partial Interest in Property under Contributions of Property, later. Back taxes help Contributions of Property If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. Back taxes help However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Back taxes help See Giving Property That Has Increased in Value , later. Back taxes help For information about the records you must keep and the information you must furnish with your return if you donate property, see Records To Keep and How To Report , later. Back taxes help Contributions Subject to Special Rules Special rules apply if you contribute: Clothing or household items, A car, boat, or airplane, Taxidermy property, Property subject to a debt, A partial interest in property, A fractional interest in tangible personal property, A qualified conservation contribution, A future interest in tangible personal property, Inventory from your business, or A patent or other intellectual property. Back taxes help These special rules are described next. Back taxes help Clothing and Household Items You cannot take a deduction for clothing or household items you donate unless the clothing or household items are in good used condition or better. Back taxes help Exception. Back taxes help   You can take a deduction for a contribution of an item of clothing or a household item that is not in good used condition or better if you deduct more than $500 for it and include a qualified appraisal of it with your return. Back taxes help Household items. Back taxes help   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Back taxes help   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Back taxes help Fair market value. Back taxes help   To determine the fair market value of these items, use the rules under Determining Fair Market Value , later. Back taxes help Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. Back taxes help A qualified vehicle is: A car or any motor vehicle manufactured mainly for use on public streets, roads, and highways, A boat, or An airplane. Back taxes help Deduction more than $500. Back taxes help   If you donate a qualified vehicle with a claimed fair market value of more than $500, you can deduct the smaller of: The gross proceeds from the sale of the vehicle by the organization, or The vehicle's fair market value on the date of the contribution. Back taxes help If the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to figure the deductible amount, as described under Giving Property That Has Increased in Value , later. Back taxes help Form 1098-C. Back taxes help   You must attach to your return Copy B of the Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, (or other statement containing the same information as Form 1098-C) you received from the organization. Back taxes help The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Back taxes help   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453, U. Back taxes help S. Back taxes help Individual Income Tax Transmittal for an IRS e-file Return, and mail the forms to the IRS, or Include Copy B of Form 1098-C as a pdf attachment if your software program allows it. Back taxes help   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Back taxes help    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Back taxes help But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Back taxes help Filing deadline approaching and still no Form 1098-C. Back taxes help   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Back taxes help Request an automatic 6-month extension of time to file your return. Back taxes help You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U. Back taxes help S. Back taxes help Individual Income Tax Return. Back taxes help For more information, see the instructions for Form 4868. Back taxes help File the return on time without claiming the deduction for the qualified vehicle. Back taxes help After receiving the Form 1098-C, file an amended return, Form 1040X, Amended U. Back taxes help S. Back taxes help Individual Income Tax Return, claiming the deduction. Back taxes help Attach Copy B of Form 1098-C (or other statement) to the amended return. Back taxes help Exceptions. Back taxes help   There are two exceptions to the rules just described for deductions of more than $500. Back taxes help Exception 1—vehicle used or improved by organization. Back taxes help   If the qualified organization makes a significant intervening use of or material improvement to the vehicle before transferring it, you generally can deduct the vehicle's fair market value at the time of the contribution. Back taxes help But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. Back taxes help The Form 1098-C (or other statement) will show whether this exception applies. Back taxes help    Exception 2—vehicle given or sold to needy individual. Back taxes help   If the qualified organization will give the vehicle, or sell it for a price well below fair market value, to a needy individual to further the organization's charitable purpose, you generally can deduct the vehicle's fair market value at the time of the contribution. Back taxes help But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. Back taxes help The Form 1098-C (or other statement) will show whether this exception applies. Back taxes help   This exception does not apply if the organization sells the vehicle at auction. Back taxes help In that case, you cannot deduct the vehicle's fair market value. Back taxes help Example. Back taxes help Anita donates a used car to a qualified organization. Back taxes help She bought it 3 years ago for $9,000. Back taxes help A used car guide shows the fair market value for this type of car is $6,000. Back taxes help However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Back taxes help Neither exception 1 nor exception 2 applies. Back taxes help If Anita itemizes her deductions, she can deduct $2,900 for her donation. Back taxes help She must attach Form 1098-C and Form 8283 to her return. Back taxes help Deduction $500 or less. Back taxes help   If the qualified organization sells the vehicle for $500 or less and exceptions 1 and 2 do not apply, you can deduct the smaller of: $500, or The vehicle's fair market value on the date of the contribution. Back taxes help But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. Back taxes help   If the vehicle's fair market value is at least $250 but not more than $500, you must have a written statement from the qualified organization acknowledging your donation. Back taxes help The statement must contain the information and meet the tests for an acknowledgment described under Contributions of $250 or More under Records To Keep, later. Back taxes help Fair market value. Back taxes help   To determine a vehicle's fair market value, use the rules described under Determining Fair Market Value , later. Back taxes help Donations of inventory. Back taxes help   The vehicle donation rules just described do not apply to donations of inventory. Back taxes help For example, these rules do not apply if you are a car dealer who donates a car you had been holding for sale to customers. Back taxes help See Inventory , later. Back taxes help Taxidermy Property If you donate taxidermy property to a qualified organization, your deduction is limited to your basis in the property or its fair market value, whichever is less. Back taxes help This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property. Back taxes help Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Back taxes help Your basis does not include transportation or travel costs. Back taxes help It also does not include the direct or indirect costs for hunting or killing an animal, such as equipment costs. Back taxes help In addition, it does not include the value of your time. Back taxes help Taxidermy property means any work of art that: Is the reproduction or preservation of an animal, in whole or in part, Is prepared, stuffed, or mounted to recreate one or more characteristics of the animal, and Contains a part of the body of the dead animal. Back taxes help Property Subject to a Debt If you contribute property subject to a debt (such as a mortgage), you must reduce the fair market value of the property by: Any allowable deduction for interest you paid (or will pay) that is attributable to any period after the contribution, and If the property is a bond, the lesser of: Any allowable deduction for interest you paid (or will pay) to buy or carry the bond that is attributable to any period before the contribution, or The interest, including bond discount, receivable on the bond that is attributable to any period before the contribution, and that is not includible in your income due to your accounting method. Back taxes help This prevents you from deducting the same amount as both investment interest and a charitable contribution. Back taxes help If the recipient (or another person) assumes the debt, you must also reduce the fair market value of the property by the amount of the outstanding debt assumed. Back taxes help The amount of the debt is also treated as an amount realized on the sale or exchange of property for purposes of figuring your taxable gain (if any). Back taxes help For more information, see Bargain Sales under Giving Property That Has Increased in Value, later. Back taxes help Partial Interest in Property Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Back taxes help Right to use property. Back taxes help   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Back taxes help Example 1. Back taxes help You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Back taxes help Because you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution. Back taxes help Example 2. Back taxes help Mandy White owns a vacation home at the beach that she sometimes rents to others. Back taxes help For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. Back taxes help At the auction, the church received and accepted a bid from Lauren Green equal to the fair rental value of the home for 1 week. Back taxes help Mandy cannot claim a deduction because of the partial interest rule. Back taxes help Lauren cannot claim a deduction either, because she received a benefit equal to the amount of her payment. Back taxes help See Contributions From Which You Benefit , earlier. Back taxes help Exceptions. Back taxes help   You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items. Back taxes help A remainder interest in your personal home or farm. Back taxes help A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property. Back taxes help Example. Back taxes help You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death. Back taxes help You can deduct the value of the remainder interest. Back taxes help An undivided part of your entire interest. Back taxes help This must consist of a part of every substantial interest or right you own in the property and must last as long as your interest in the property lasts. Back taxes help But see Fractional Interest in Tangible Personal Property , later. Back taxes help Example. Back taxes help You contribute voting stock to a qualified organization but keep the right to vote the stock. Back taxes help The right to vote is a substantial right in the stock. Back taxes help You have not contributed an undivided part of your entire interest and cannot deduct your contribution. Back taxes help A partial interest that would be deductible if transferred to certain types of trusts. Back taxes help A qualified conservation contribution (defined later). Back taxes help For information about how to figure the value of a contribution of a partial interest in property, see Partial Interest in Property Not in Trust in Publication 561. Back taxes help Fractional Interest in Tangible Personal Property You cannot deduct a charitable contribution of a fractional interest in tangible personal property unless all interests in the property are held immediately before the contribution by: You, or You and the qualifying organization receiving the contribution. Back taxes help If you make an additional contribution later, the fair market value of that contribution will be determined by using the smaller of: The fair market value of the property at the time of the initial contribution, or The fair market value of the property at the time of the additional contribution. Back taxes help Tangible personal property is defined later under Future Interest in Tangible Personal Property . Back taxes help A fractional interest in property is an undivided portion of your entire interest in the property. Back taxes help Example. Back taxes help An undivided one-quarter interest in a painting that entitles an art museum to possession of the painting for 3 months of each year is a fractional interest in the property. Back taxes help Recapture of deduction. Back taxes help   You must recapture your charitable contribution deduction by including it in your income if both of the following statements are true. Back taxes help You contributed a fractional interest in tangible personal property after August 17, 2006. Back taxes help You do not contribute the rest of your interests in the property to the original recipient or, if it no longer exists, another qualified organization on or before the earlier of: The date that is 10 years after the date of the initial contribution, or The date of your death. Back taxes help   Recapture is also required if the qualified organization has not taken substantial physical possession of the property and used it in a way related to the organization's purpose during the period beginning on the date of the initial contribution and ending on the earlier of: The date that is 10 years after the date of the initial contribution, or The date of your death. Back taxes help Additional tax. Back taxes help   If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount recaptured. Back taxes help Qualified Conservation Contribution A qualified conservation contribution is a contribution of a qualified real property interest to a qualified organization to be used only for conservation purposes. Back taxes help Qualified organization. Back taxes help   For purposes of a qualified conservation contribution, a qualified organization is: A governmental unit, A publicly supported charity, or An organization controlled by, and operated for the exclusive benefit of, a governmental unit or a publicly supported charity. Back taxes help The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. Back taxes help   A publicly supported charity is an organization of the type described in (1) under Types of Qualified Organizations , earlier, that normally receives a substantial part of its support, other than income from its exempt activities, from direct or indirect contributions from the general public or from governmental units. Back taxes help Qualified real property interest. Back taxes help   This is any of the following interests in real property. Back taxes help Your entire interest in real estate other than a mineral interest (subsurface oil, gas, or other minerals, and the right of access to these minerals). Back taxes help A remainder interest. Back taxes help A restriction (granted in perpetuity) on the use that may be made of the real property. Back taxes help Conservation purposes. Back taxes help   Your contribution must be made only for one of the following conservation purposes. Back taxes help Preserving land areas for outdoor recreation by, or for the education of, the general public. Back taxes help Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. Back taxes help Preserving open space, including farmland and forest land, if it yields a significant public benefit. Back taxes help The open space must be preserved either for the scenic enjoyment of the general public or under a clearly defined federal, state, or local governmental conservation policy. Back taxes help Preserving a historically important land area or a certified historic structure. Back taxes help Building in registered historic district. Back taxes help   If a building in a registered historic district is a certified historic structure, a contribution of a qualified real property interest that is an easement or other restriction on the exterior of the building is deductible only if it meets all of the following conditions. Back taxes help The restriction must preserve the entire exterior of the building (including its front, sides, rear, and height) and must prohibit any change to the exterior of the building that is inconsistent with its historical character. Back taxes help You and the organization receiving the contribution must enter into a written agreement certifying, under penalty of perjury, that the organization: Is a qualified organization with a purpose of environmental protection, land conservation, open space preservation, or historic preservation, and Has the resources to manage and enforce the restriction and a commitment to do so. Back taxes help You must include with your return: A qualified appraisal, Photographs of the building's entire exterior, and A description of all restrictions on development of the building, such as zoning laws and restrictive covenants. Back taxes help   If you claimed the rehabilitation credit for the building for any of the 5 years before the year of the contribution, your charitable deduction is reduced. Back taxes help For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). Back taxes help   If you claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. Back taxes help See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. Back taxes help You may be able to deduct the filing fee as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit, on Schedule A (Form 1040). Back taxes help See Deductions Subject to the 2% Limit in Publication 529 for more information. Back taxes help More information. Back taxes help   For information about determining the fair market value of qualified conservation contributions, see Publication 561. Back taxes help For information about the limits that apply to deductions for this type of contribution, see Limits on Deductions , later. Back taxes help For more information about qualified conservation contributions, see Regulations section 1. Back taxes help 170A-14. Back taxes help Future Interest in Tangible Personal Property You cannot deduct the value of a charitable contribution of a future interest in tangible personal property until all intervening interests in and rights to the actual possession or enjoyment of the property have either expired or been turned over to someone other than yourself, a related person, or a related organization. Back taxes help But see Fractional Interest in Tangible Personal Property , earlier, and Tangible personal property put to unrelated use , later. Back taxes help Related persons include your spouse, children, grandchildren, brothers, sisters, and parents. Back taxes help Related organizations may include a partnership or corporation in which you have an interest, or an estate or trust with which you have a connection. Back taxes help Tangible personal property. Back taxes help   This is any property, other than land or buildings, that can be seen or touched. Back taxes help It includes furniture, books, jewelry, paintings, and cars. Back taxes help Future interest. Back taxes help   This is any interest that is to begin at some future time, regardless of whether it is designated as a future interest under state law. Back taxes help Example. Back taxes help You own an antique car that you contribute to a museum. Back taxes help You give up ownership, but retain the right to keep the car in your garage with your personal collection. Back taxes help Because you keep an interest in the property, you cannot deduct the contribution. Back taxes help If you turn the car over to the museum in a later year, giving up all rights to its use, possession, and enjoyment, you can take a deduction for the contribution in that later year. Back taxes help Inventory If you contribute inventory (property you sell in the course of your business), the amount you can deduct is the smaller of its fair market value on the day you contributed it or its basis. Back taxes help The basis of contributed inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. Back taxes help You must remove the amount of your charitable contribution deduction from your opening inventory. Back taxes help It is not part of the cost of goods sold. Back taxes help If the cost of donated inventory is not included in your opening inventory, the inventory's basis is zero and you cannot claim a charitable contribution deduction. Back taxes help Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Back taxes help For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Back taxes help A special rule applies to certain donations of food inventory. Back taxes help See Food Inventory, later. Back taxes help Patents and Other Intellectual Property If you donate intellectual property to a qualified organization, your deduction is limited to the basis of the property or the fair market value of the property, whichever is smaller. Back taxes help Intellectual property means any of the following: Patents. Back taxes help Copyrights (other than a copyright described in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)). Back taxes help Trademarks. Back taxes help Trade names. Back taxes help Trade secrets. Back taxes help Know-how. Back taxes help Software (other than software described in Internal Revenue Code section 197(e)(3)(A)(i)). Back taxes help Other similar property or applications or registrations of such property. Back taxes help Additional deduction based on income. Back taxes help   You may be able to claim additional charitable contribution deductions in the year of the contribution and years following, based on the income, if any, from the donated property. Back taxes help   The following table shows the percentage of income from the property that you can deduct for each of your tax years ending on or after the date of the contribution. Back taxes help In the table, “tax year 1,” for example, means your first tax year ending on or after the date of the contribution. Back taxes help However, you can take the additional deduction only to the extent the total of the amounts figured using this table is more than the amount of the deduction claimed for the original donation of the property. Back taxes help   After the legal life of the intellectual property ends, or after the 10th anniversary of the donation, whichever is earlier, no additional deduction is allowed. Back taxes help The additional deductions cannot be taken for intellectual property donated to certain private foundations. Back taxes help Tax year Deductible percentage 1 100% 2 100% 3 90% 4 80% 5 70% 6 60% 7 50% 8 40% 9 30% 10 20% 11 10% 12 10% Reporting requirements. Back taxes help   You must inform the organization at the time of the donation that you intend to treat the donation as a contribution subject to the provisions just discussed. Back taxes help   The organization is required to file an information return showing the income from the property, with a copy to you. Back taxes help This is done on Form 8899, Notice of Income From Donated Intellectual Property. Back taxes help Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Back taxes help Publication 561 contains a more complete discussion. Back taxes help Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts. Back taxes help Used clothing. Back taxes help   The fair market value of used clothing and other personal items is usually far less than the price you paid for them. Back taxes help There are no fixed formulas or methods for finding the value of items of clothing. Back taxes help   You should claim as the value the price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops. Back taxes help      Also see Clothing and Household Items , earlier. Back taxes help Example. Back taxes help    Kristin donated a coat to a thrift store operated by her church. Back taxes help She paid $300 for the coat 3 years ago. Back taxes help Similar coats in the thrift store sell for $50. Back taxes help The fair market value of the coat is $50. Back taxes help Kristin's donation is limited to $50. Back taxes help Household items. Back taxes help   The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. Back taxes help These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. Back taxes help For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value. Back taxes help   You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Back taxes help Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Back taxes help Do not include any of this evidence with your tax return. Back taxes help   If the property is valuable because it is old or unique, see the discussion under Paintings, Antiques, and Other Objects of Art in Publication 561. Back taxes help   Also see Clothing and Household Items , earlier. Back taxes help Cars, boats, and airplanes. Back taxes help   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Back taxes help Boats. Back taxes help   Except for small, inexpensive boats, the valuation of boats should be based on an appraisal by a marine surveyor or appraiser because the physical condition is critical to the value. Back taxes help Cars. Back taxes help   Certain commercial firms and trade organizations publish used car pricing guides, commonly called “blue books,” containing complete dealer sale prices or dealer average prices for recent model years. Back taxes help The guides may be published monthly or seasonally, and for different regions of the country. Back taxes help These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Back taxes help The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Back taxes help But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Back taxes help   These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. Back taxes help You can also find used car pricing information on the Internet. Back taxes help   To find the fair market value of a donated car, use the price listed in a used car guide for a private party sale, not the dealer retail value. Back taxes help However, the fair market value may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. Back taxes help The fair market value of a donated car is the same as the price listed in a used car guide for a private party sale only if the guide lists a sales price for a car that is the same make, model, and year, sold in the same area, in the same condition, with the same or similar options or accessories, and with the same or similar warranties as the donated car. Back taxes help Example. Back taxes help You donate a used car in poor condition to a local high school for use by students studying car repair. Back taxes help A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Back taxes help However, the guide shows the price for a private party sale of the car is only $750. Back taxes help The fair market value of the car is considered to be $750. Back taxes help Large quantities. Back taxes help   If you contribute a large number of the same item, fair market value is the price at which comparable numbers of the item are being sold. Back taxes help Example. Back taxes help You purchase 500 bibles for $1,000. Back taxes help The person who sells them to you says the retail value of these bibles is $3,000. Back taxes help If you contribute the bibles to a qualified organization, you can claim a deduction only for the price at which similar numbers of the same bible are currently being sold. Back taxes help Your charitable contribution is $1,000, unless you can show that similar numbers of that bible wer