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Backtaxes 30. Backtaxes   How To Figure Your Tax Table of Contents Introduction Figuring Your Tax Alternative Minimum Tax (AMT) Tax Figured by IRSFiling the Return Introduction After you have figured your income and deductions as explained in Parts One through Five, your next step is to figure your tax. Backtaxes This chapter discusses: The general steps you take to figure your tax, An additional tax you may have to pay called the alternative minimum tax (AMT), and The conditions you must meet if you want the IRS to figure your tax. Backtaxes Figuring Your Tax Your income tax is based on your taxable income. Backtaxes After you figure your income tax and AMT, if any, subtract your tax credits and add any other taxes you may owe. Backtaxes The result is your total tax. Backtaxes Compare your total tax with your total payments to determine whether you are entitled to a refund or if you must make a payment. Backtaxes This section provides a general outline of how to figure your tax. Backtaxes You can find step-by-step directions in the Instructions for Forms 1040EZ, 1040A, and 1040. Backtaxes If you are unsure of which tax form you should file, see Which Form Should I Use? in chapter 1. Backtaxes Tax. Backtaxes   Most taxpayers use either the Tax Table or the Tax Computation Worksheet to figure their income tax. Backtaxes However, there are special methods if your income includes any of the following items. Backtaxes A net capital gain. Backtaxes (See chapter 16. Backtaxes ) Qualified dividends taxed at the same rates as a net capital gain. Backtaxes (See chapters 8 and 16. Backtaxes ) Lump-sum distributions. Backtaxes (See chapter 10. Backtaxes ) Farming or fishing income. Backtaxes (See Schedule J (Form 1040), Income Averaging for Farmers and Fishermen. Backtaxes ) Unearned income over $2,000 for certain children. Backtaxes (See chapter 31. Backtaxes ) Parents' election to report child's interest and dividends. Backtaxes (See chapter 31. Backtaxes ) Foreign earned income exclusion or the housing exclusion. Backtaxes (See Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion, and the Foreign Earned Income Tax Worksheet in the Form 1040 instructions. Backtaxes ) Credits. Backtaxes   After you figure your income tax and any AMT (discussed later), determine if you are eligible for any tax credits. Backtaxes Eligibility information for these tax credits is discussed in chapters 32 through 37 and your form instructions. Backtaxes The following table lists the credits you may be able to subtract from your tax and shows where you can find more information on each credit. Backtaxes CREDITS For information on: See  chapter: Adoption 37 Alternative motor vehicle 37 Alternative fuel vehicle refueling  property 37 Child and dependent care 32 Child tax 34 Credit to holders of tax credit  bonds 37 Education 35 Elderly or disabled 33 Electric vehicle 37 Foreign tax 37 Mortgage interest 37 Prior year minimum tax 37 Residential energy 37 Retirement savings contributions 37   Some credits (such as the earned income credit) are not listed because they are treated as payments. Backtaxes See Payments , later. Backtaxes   There are other credits that are not discussed in this publication. Backtaxes These include the following credits. Backtaxes General business credit, which is made up of several separate business-related credits. Backtaxes These generally are reported on Form 3800, General Business Credit, and are discussed in chapter 4 of Publication 334, Tax Guide for Small Business. Backtaxes Renewable electricity, refined coal, and Indian coal production credit for electricity and refined coal produced at facilities placed in service after October 22, 2004 (after October 2, 2008, for electricity produced from marine and hydrokinetic renewables), and Indian coal produced at facilities placed in service after August 8, 2005. Backtaxes See Form 8835, Part II. Backtaxes Work opportunity credit. Backtaxes See Form 5884. Backtaxes Credit for employer social security and Medicare taxes paid on certain employee tips. Backtaxes See Form 8846. Backtaxes Other taxes. Backtaxes   After you subtract your tax credits, determine whether there are any other taxes you must pay. Backtaxes This chapter does not explain these other taxes. Backtaxes You can find that information in other chapters of this publication and your form instructions. Backtaxes See the following table for other taxes you may need to add to your income tax. Backtaxes OTHER TAXES For information on: See  chapter: Additional taxes on qualified retirement plans and IRAs 10, 17 Household employment taxes 32 Recapture of an education credit 35 Social security and Medicare tax on wages 5 Social security and Medicare tax on tips 6 Uncollected social security and Medicare tax on tips 6   You also may have to pay AMT (discussed later in this chapter). Backtaxes   There are other taxes that are not discussed in this publication. Backtaxes These include the following items. Backtaxes Self-employment tax. Backtaxes You must figure this tax if either of the following applies to you (or your spouse if you file a joint return). Backtaxes Your net earnings from self-employment from other than church employee income were $400 or more. Backtaxes The term “net earnings from self-employment” may include certain nonemployee compensation and other amounts reported to you on Form 1099-MISC, Miscellaneous Income. Backtaxes If you received a Form 1099-MISC, see the Instructions for Recipient on the back. Backtaxes Also see the Instructions for Schedule SE (Form 1040), Self-Employment Tax; and Publication 334, Tax Guide for Small Business. Backtaxes You had church employee income of $108. Backtaxes 28 or more. Backtaxes Additional Medicare Tax. Backtaxes Beginning in 2013, you may be subject to a 0. Backtaxes 9% Additional Medicare Tax that applies to Medicare wages, Railroad Retirement Act compensation, and self-employment income over a threshold based on your filing status. Backtaxes For more information, see the Instructions for Form 1040, line 60 and Form 8959. Backtaxes Net Investment Income Tax (NIIT). Backtaxes Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). Backtaxes NIIT is a 3. Backtaxes 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income over a threshold amount. Backtaxes For more information, see the Instructions for Form 1040, line 60 and Form 8960. Backtaxes Recapture taxes. Backtaxes You may have to pay these taxes if you previously claimed an investment credit, a low-income housing credit, a new markets credit, a qualified plug-in electric drive motor vehicle credit, an alternative motor vehicle credit, a credit for employer-provided child care facilities, an Indian employment credit, or other credits listed in the instructions for Form 1040, line 60. Backtaxes For more information, see the instructions for Form 1040, line 60. Backtaxes Section 72(m)(5) excess benefits tax. Backtaxes If you are (or were) a 5% owner of a business and you received a distribution that exceeds the benefits provided for you under the qualified pension or annuity plan formula, you may have to pay this additional tax. Backtaxes See Tax on Excess Benefits in chapter 4 of Publication 560, Retirement Plans for Small Business. Backtaxes Uncollected social security and Medicare tax on group-term life insurance. Backtaxes If your former employer provides you with more than $50,000 of group-term life insurance coverage, you must pay the employee part of social security and Medicare taxes on those premiums. Backtaxes The amount should be shown in box 12 of your Form W-2 with codes M and N. Backtaxes Tax on golden parachute payments. Backtaxes This tax applies if you received an “excess parachute payment” (EPP) due to a change in a corporation's ownership or control. Backtaxes The amount should be shown in box 12 of your Form W-2 with code K. Backtaxes See the instructions for Form 1040, line 60. Backtaxes Tax on accumulation distribution of trusts. Backtaxes This applies if you are the beneficiary of a trust that accumulated its income instead of distributing it currently. Backtaxes See Form 4970 and its instructions. Backtaxes Additional tax on HSAs or MSAs. Backtaxes If amounts contributed to, or distributed from, your health savings account or medical savings account do not meet the rules for these accounts, you may have to pay additional taxes. Backtaxes See Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans; Form 8853, Archer MSAs and Long-Term Care Insurance Contracts; Form 8889, Health Savings Accounts (HSAs); and Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. Backtaxes Additional tax on Coverdell ESAs. Backtaxes This applies if amounts contributed to, or distributed from, your Coverdell ESA do not meet the rules for these accounts. Backtaxes See Publication 970, Tax Benefits for Education, and Form 5329. Backtaxes Additional tax on qualified tuition programs. Backtaxes This applies to amounts distributed from qualified tuition programs that do not meet the rules for these accounts. Backtaxes See Publication 970 and Form 5329. Backtaxes Excise tax on insider stock compensation from an expatriated corporation. Backtaxes You may owe a 15% excise tax on the value of nonstatutory stock options and certain other stock-based compensation held by you or a member of your family from an expatriated corporation or its expanded affiliated group in which you were an officer, director, or more-than-10% owner. Backtaxes For more information, see the instructions for Form 1040, line 60. Backtaxes Additional tax on income you received from a nonqualified deferred compensation plan that fails to meet certain requirements. Backtaxes This income should be shown in Form W-2, box 12, with code Z, or in Form 1099-MISC, box 15b. Backtaxes For more information, see the instructions for Form 1040, line 60. Backtaxes Interest on the tax due on installment income from the sale of certain residential lots and timeshares. Backtaxes For more information, see the instructions for Form 1040, line 60. Backtaxes Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000. Backtaxes For more information, see the instructions for Form 1040, line 60. Backtaxes Repayment of first-time homebuyer credit. Backtaxes For more information, see Form 5405, Repayment of the First-Time Homebuyer Credit, and its instructions. Backtaxes Also see the instructions for Form 1040, line 59b. Backtaxes Payments. Backtaxes   After you determine your total tax, figure the total payments you have already made for the year. Backtaxes Include credits that are treated as payments. Backtaxes This chapter does not explain these payments and credits. Backtaxes You can find that information in other chapters of this publication and your form instructions. Backtaxes See the following table for amounts you can include in your total payments. Backtaxes PAYMENTS For information on: See  chapter: Child tax credit (additional) 34 Earned income credit 36 Estimated tax paid 4 Excess social security   and RRTA tax withheld 37 Federal income tax withheld 4 Health coverage tax credit 37 Credit for tax on   undistributed capital gain 37 Tax paid with extension 1   Another credit that is treated as a payment is the credit for federal excise tax paid on fuels. Backtaxes This credit is for persons who have a nontaxable use of certain fuels, such as diesel fuel and kerosene. Backtaxes It is claimed on Form 1040, line 70. Backtaxes See Form 4136, Credit for Federal Tax Paid on Fuels. Backtaxes Refund or balance due. Backtaxes   To determine whether you are entitled to a refund or whether you must make a payment, compare your total payments with your total tax. Backtaxes If you are entitled to a refund, see your form instructions for information on having it directly deposited into one or more of your accounts, or to purchase U. Backtaxes S. Backtaxes savings bonds instead of receiving a paper check. Backtaxes Alternative Minimum Tax (AMT) This section briefly discusses an additional tax you may have to pay. Backtaxes The tax law gives special treatment to some kinds of income and allows special deductions and credits for some kinds of expenses. Backtaxes Taxpayers who benefit from this special treatment may have to pay at least a minimum amount of tax through an additional tax called AMT. Backtaxes You may have to pay the AMT if your taxable income for regular tax purposes, combined with certain adjustments and tax preference items, is more than a certain amount. Backtaxes See Form 6251, Alternative Minimum Tax — Individuals. Backtaxes Adjustments and tax preference items. Backtaxes   The more common adjustments and tax preference items include: Addition of personal exemptions, Addition of the standard deduction (if claimed), Addition of itemized deductions claimed for state and local taxes, certain interest, most miscellaneous deductions, and part of medical expenses, Subtraction of any refund of state and local taxes included in gross income, Changes to accelerated depreciation of certain property, Difference between gain or loss on the sale of property reported for regular tax purposes and AMT purposes, Addition of certain income from incentive stock options, Change in certain passive activity loss deductions, Addition of certain depletion that is more than the adjusted basis of the property, Addition of part of the deduction for certain intangible drilling costs, and Addition of tax-exempt interest on certain private activity bonds. Backtaxes More information. Backtaxes   For more information about the AMT, see the instructions for Form 6251. Backtaxes Tax Figured by IRS If you file by April 15, 2014, you can have the IRS figure your tax for you on Form 1040EZ, Form 1040A, or Form 1040. Backtaxes If the IRS figures your tax and you paid too much, you will receive a refund. Backtaxes If you did not pay enough, you will receive a bill for the balance. Backtaxes To avoid interest or the penalty for late payment, you must pay the bill within 30 days of the date of the bill or by the due date for your return, whichever is later. Backtaxes The IRS can also figure the credit for the elderly or the disabled and the earned income credit for you. Backtaxes When the IRS cannot figure your tax. Backtaxes   The IRS cannot figure your tax for you if any of the following apply. Backtaxes You want your refund directly deposited into your accounts. Backtaxes You want any part of your refund applied to your 2014 estimated tax. Backtaxes You had income for the year from sources other than wages, salaries, tips, interest, dividends, taxable social security benefits, unemployment compensation, IRA distributions, pensions, and annuities. Backtaxes Your taxable income is $100,000 or more. Backtaxes You itemize deductions. Backtaxes You file any of the following forms. Backtaxes Form 2555, Foreign Earned Income. Backtaxes Form 2555-EZ, Foreign Earned Income Exclusion. Backtaxes Form 4137, Social Security and Medicare Tax on Unreported Tip Income. Backtaxes Form 4970, Tax on Accumulation Distribution of Trusts. Backtaxes Form 4972, Tax on Lump-Sum Distributions. Backtaxes Form 6198, At-Risk Limitations. Backtaxes Form 6251, Alternative Minimum Tax—Individuals. Backtaxes Form 8606, Nondeductible IRAs. Backtaxes Form 8615, Tax for Certain Children Who Have Unearned Income. Backtaxes Form 8814, Parents' Election To Report Child's Interest and Dividends. Backtaxes Form 8839, Qualified Adoption Expenses. Backtaxes Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Backtaxes Form 8889, Health Savings Accounts (HSAs). Backtaxes Form 8919, Uncollected Social Security and Medicare Tax on Wages. Backtaxes Filing the Return After you complete the line entries for the tax form you are filing, fill in your name and address. Backtaxes Enter your social security number in the space provided. Backtaxes If you are married, enter the social security numbers of you and your spouse even if you file separately. Backtaxes Sign and date your return and enter your occupation(s). Backtaxes If you are filing a joint return, both you and your spouse must sign it. Backtaxes Enter your daytime phone number in the space provided. Backtaxes This may help speed the processing of your return if we have a question that can be answered over the phone. Backtaxes If you are filing a joint return, you may enter either your or your spouse's daytime phone number. Backtaxes If you want to allow a friend, family member, or any other person you choose to discuss your 2013 tax return with the IRS, check the “Yes” box in the “Third party designee” area on your return. Backtaxes Also enter the designee's name, phone number, and any five digits the designee chooses as his or her personal identification number (PIN). Backtaxes If you check the “Yes” box, you, and your spouse if filing a joint return, are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return. Backtaxes Fill in and attach any schedules and forms asked for on the lines you completed to your paper return. Backtaxes Attach a copy of each of your Forms W-2 to your paper return. Backtaxes Also attach to your paper return any Form 1099-R you received that has withholding tax in box 4. Backtaxes Mail your return to the Internal Revenue Service Center for the area where you live. Backtaxes A list of Service Center addresses is in the instructions for your tax return. Backtaxes Form 1040EZ Line Entries Read lines 1 through 8b and fill in the lines that apply to you. Backtaxes Do not complete lines 9 through 12. Backtaxes If you are filing a joint return, use the space to the left of line 6 to separately show your taxable income and your spouse's taxable income. Backtaxes Payments. Backtaxes   Enter any federal income tax withheld on line 7. Backtaxes Federal income tax withheld is shown on Form W-2, box 2, or Form 1099, box 4. Backtaxes Earned income credit. Backtaxes   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. Backtaxes Enter “EIC” in the space to the left of line 8a. Backtaxes Enter the nontaxable combat pay you elect to include in earned income on line 8b. Backtaxes   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862, Information To Claim Earned Income Credit After Disallowance, with your return. Backtaxes For details, see the Form 1040EZ Instructions. Backtaxes Form 1040A Line Entries Read lines 1 through 27 and fill in the lines that apply to you. Backtaxes If you are filing a joint return, use the space to the left of the entry space for line 27 to separately show your taxable income and your spouse's taxable income. Backtaxes Do not complete line 28. Backtaxes Complete lines 29 through 33 and 36 through 40 if they apply to you. Backtaxes However, do not fill in lines 30 and 38a if you want the IRS to figure the credits shown on those lines. Backtaxes Also, enter any write-in information that applies to you in the space to the left of line 41. Backtaxes Do not complete lines 34, 35, and 42 through 46. Backtaxes Payments. Backtaxes   Enter any federal income tax withheld that is shown on Form W-2, box 2, or Form 1099, box 4, on line 36. Backtaxes Enter any estimated tax payments you made on line 37. Backtaxes Credit for child and dependent care expenses. Backtaxes   If you can take this credit, as discussed in chapter 32, complete Form 2441, Child and Dependent Care Expenses, and attach it to your return. Backtaxes Enter the amount of the credit on line 29. Backtaxes The IRS will not figure this credit. Backtaxes Credit for the elderly or the disabled. Backtaxes   If you can take this credit, as discussed in chapter 33, the IRS can figure it for you. Backtaxes Enter “CFE” in the space to the left of line 30 and attach Schedule R (Form 1040A or 1040), Credit for the Elderly or the Disabled, to your paper return. Backtaxes On Schedule R (Form 1040A or 1040), check the box in Part I for your filing status and age. Backtaxes Complete Part II and Part III, lines 11 and 13, if they apply. Backtaxes Earned income credit. Backtaxes   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. Backtaxes Enter “EIC” to the left of the entry space for line 38a. Backtaxes Enter the nontaxable combat pay you elect to include in earned income on line 38b. Backtaxes    If you have a qualifying child, you must fill in Schedule EIC (Form 1040A or 1040), Earned Income Credit, and attach it to your paper return. Backtaxes If you do not provide the child's social security number on Schedule EIC, line 2, the credit will be reduced or disallowed unless the child was born and died in 2013. Backtaxes   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862 with your return. Backtaxes For details, see the Form 1040A Instructions. Backtaxes Form 1040 Line Entries Read lines 1 through 43 and fill in the lines that apply to you. Backtaxes Do not complete line 44. Backtaxes If you are filing a joint return, use the space under the words “Adjusted Gross Income” on the front of your return to separately show your taxable income and your spouse's taxable income. Backtaxes Read lines 45 through 71. Backtaxes Fill in the lines that apply to you, but do not fill in lines 54, 61, and 72. Backtaxes Also, do not complete line 55 and lines 73 through 77. Backtaxes Do not fill in line 53, box “c,” if you are completing Schedule R (Form 1040A or 1040), or line 64a if you want the IRS to figure the credits shown on those lines. Backtaxes Payments. Backtaxes   Enter any federal income tax withheld that is shown on Form W-2, box 2, or Form 1099, box 4, on line 62. Backtaxes Enter any estimated tax payments you made on line 63. Backtaxes Credit for child and dependent care expenses. Backtaxes   If you can take this credit, as discussed in chapter 32, complete Form 2441 and attach it to your paper return. Backtaxes Enter the amount of the credit on line 48. Backtaxes The IRS will not figure this credit. Backtaxes Credit for the elderly or the disabled. Backtaxes   If you can take this credit, as discussed in chapter 33, the IRS can figure it for you. Backtaxes Enter “CFE” on the line next to line 53, check box “c,” and attach Schedule R (Form 1040A or 1040) to your paper return. Backtaxes On Schedule R (Form 1040A or 1040), check the box in Part I for your filing status and age. Backtaxes Complete Part II and Part III, lines 11 and 13, if they apply. Backtaxes Earned income credit. Backtaxes   If you can take this credit, as discussed in chapter 36, the IRS can figure it for you. Backtaxes Enter “EIC” on the dotted line next to Form 1040, line 64a. Backtaxes Enter the nontaxable combat pay you elect to include in earned income on line 64b. Backtaxes   If you have a qualifying child, you must fill in Schedule EIC (Form 1040A or 1040), Earned Income Credit, and attach it to your paper return. Backtaxes If you do not provide the child's social security number on Schedule EIC, line 2, the credit will be reduced or disallowed unless the child was born and died in 2013. Backtaxes   If your credit for any year after 1996 was reduced or disallowed by the IRS, you may also have to file Form 8862 with your return. Backtaxes For details, see the Form 1040 Instructions. Backtaxes Prev  Up  Next   Home   More Online Publications
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Backtaxes 24. Backtaxes   Contributions Table of Contents Introduction Useful Items - You may want to see: 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 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 of PropertyException. Backtaxes Household items. Backtaxes Deduction more than $500. Backtaxes Form 1098-C. Backtaxes Filing deadline approaching and still no Form 1098-C. Backtaxes Exception 1—vehicle used or improved by organization. Backtaxes Exception 2—vehicle given or sold to needy individual. Backtaxes Deduction $500 or less. Backtaxes Right to use property. Backtaxes Tangible personal property. Backtaxes Future interest. Backtaxes Determining Fair Market Value Giving Property That Has Decreased in Value Giving Property That Has Increased in Value When To DeductChecks. Backtaxes Text message. Backtaxes Credit card. Backtaxes Pay-by-phone account. Backtaxes Stock certificate. Backtaxes Promissory note. Backtaxes Option. Backtaxes Borrowed funds. Backtaxes Limits on DeductionsCarryovers Records To KeepCash Contributions Noncash Contributions Out-of-Pocket Expenses How To Report Introduction This chapter explains how to claim a deduction for your charitable contributions. Backtaxes It discusses the following topics. Backtaxes The types of organizations to which you can make deductible charitable contributions. Backtaxes The types of contributions you can deduct. Backtaxes How much you can deduct. Backtaxes What records you must keep. Backtaxes How to report your charitable contributions. Backtaxes A charitable contribution is a donation or gift to, or for the use of, a qualified organization. Backtaxes It is voluntary and is made without getting, or expecting to get, anything of equal value. Backtaxes Form 1040 required. Backtaxes    To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. Backtaxes The amount of your deduction may be limited if certain rules and limits explained in this chapter apply to you. Backtaxes The limits are explained in detail in Publication 526. Backtaxes Useful Items - You may want to see: Publication 526 Charitable Contributions 561 Determining the Value of Donated Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 8283 Noncash Charitable Contributions Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if you make them to a qualified organization. Backtaxes Most organizations other than churches and governments must apply to the IRS to become a qualified organization. Backtaxes How to check whether an organization can receive deductible charitable contributions. Backtaxes   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Backtaxes Or go to IRS. Backtaxes gov. Backtaxes Click on “Tools” and then on “Exempt Organizations Select Check” (www. Backtaxes irs. Backtaxes gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Backtaxes This online tool will enable you to search for qualified organizations. Backtaxes You can also call the IRS to find out if an organization is qualified. Backtaxes Call 1-877-829-5500. Backtaxes 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. Backtaxes Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Backtaxes gsa. Backtaxes gov/fedrelay. Backtaxes Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Backtaxes 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). Backtaxes 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. Backtaxes Certain organizations that foster national or international amateur sports competition also qualify. Backtaxes War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Backtaxes Domestic fraternal societies, orders, and associations operating under the lodge system. Backtaxes (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. Backtaxes ) Certain nonprofit cemetery companies or corporations. Backtaxes (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. Backtaxes ) The United States or any state, the District of Columbia, a U. Backtaxes S. Backtaxes possession (including Puerto Rico), a political subdivision of a state or U. Backtaxes S. Backtaxes possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Backtaxes (Your contribution to this type of organization is only deductible if it is to be used solely for public purposes. Backtaxes ) Examples. Backtaxes    The following list gives some examples of qualified organizations. Backtaxes Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Backtaxes Most nonprofit charitable organizations such as the American Red Cross and the United Way. Backtaxes Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Backtaxes 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. Backtaxes 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 . Backtaxes Nonprofit hospitals and medical research organizations. Backtaxes Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Backtaxes Nonprofit volunteer fire companies. Backtaxes Nonprofit organizations that develop and maintain public parks and recreation facilities. Backtaxes Civil defense organizations. Backtaxes Certain foreign charitable organizations. Backtaxes   Under income tax treaties with Canada, Israel, and Mexico, you may be able to deduct contributions to certain Canadian, Israeli, or Mexican charitable organizations. Backtaxes Generally, you must have income from sources in that country. Backtaxes For additional information on the deduction of contributions to Canadian charities, see Publication 597, Information on the United States–Canada Income Tax Treaty. Backtaxes If you need more information on how to figure your contribution to Mexican and Israeli charities, see Publication 526. Backtaxes Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Backtaxes 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. Backtaxes The contributions must be made to a qualified organization and not set aside for use by a specific person. Backtaxes 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. Backtaxes See Contributions of Property , later in this chapter. Backtaxes 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. Backtaxes See Limits on Deductions , later. Backtaxes In addition, the total of your charitable contribution deduction and certain other itemized deductions may be limited. Backtaxes See chapter 29. Backtaxes Table 24-1 gives examples of contributions you can and cannot deduct. Backtaxes 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. Backtaxes Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Backtaxes If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Backtaxes For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Backtaxes Example 1. Backtaxes You pay $65 for a ticket to a dinner-dance at a church. Backtaxes Your entire $65 payment goes to the church. Backtaxes The ticket to the dinner-dance has a fair market value of $25. Backtaxes When you buy your ticket, you know that its value is less than your payment. Backtaxes To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Backtaxes You can deduct $40 as a contribution to the church. Backtaxes Example 2. Backtaxes At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Backtaxes The amount you pay is no more than the fair rental value. Backtaxes You have not made a deductible charitable contribution. Backtaxes Athletic events. Backtaxes   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. Backtaxes   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Backtaxes Subtract the price of the tickets from your payment. Backtaxes You can deduct 80% of the remaining amount as a charitable contribution. Backtaxes Example 1. Backtaxes You pay $300 a year for membership in a university's athletic scholarship program. Backtaxes 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. Backtaxes You can deduct $240 (80% of $300) as a charitable contribution. Backtaxes Table 24-1. Backtaxes Examples of Charitable Contributions—A Quick Check Use the following lists for a quick check of whether you can deduct a contribution. Backtaxes See the rest of this chapter for more information and additional rules and limits that may apply. Backtaxes Deductible As  Charitable Contributions Not Deductible  As Charitable Contributions Money or property you give to:  Churches, synagogues, temples, mosques, and other religious organizations Federal, state, and local governments, if your contribution is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park) Nonprofit schools and hospitals The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc. Backtaxes War veterans groups   Expenses paid for a student living with you, sponsored by a qualified organization  Out-of-pocket expenses when you serve a qualified organization as a volunteer Money or property you give to:  Civic leagues, social and sports clubs, labor unions, and chambers of commerce Foreign organizations (except certain Canadian, Israeli, and Mexican charities) Groups that are run for personal profit Groups whose purpose is to lobby for law changes Homeowners' associations Individuals Political groups or candidates for public office   Cost of raffle, bingo, or lottery tickets  Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups  Tuition  Value of your time or services  Value of blood given to a blood bank    Example 2. Backtaxes 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. Backtaxes You must subtract the usual price of a ticket ($120) from your $300 payment. Backtaxes The result is $180. Backtaxes Your deductible charitable contribution is $144 (80% of $180). Backtaxes Charity benefit events. Backtaxes   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. Backtaxes   If there is an established charge for the event, that charge is the value of your benefit. Backtaxes If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Backtaxes Whether you use the tickets or other privileges has no effect on the amount you can deduct. Backtaxes However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Backtaxes    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. Backtaxes If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Backtaxes Example. Backtaxes You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Backtaxes Printed on the ticket is “Contribution—$40. Backtaxes ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Backtaxes Membership fees or dues. Backtaxes    You may be able to deduct membership fees or dues you pay to a qualified organization. Backtaxes However, you can deduct only the amount that is more than the value of the benefits you receive. Backtaxes    You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Backtaxes They are not qualified organizations. Backtaxes Certain membership benefits can be disregarded. Backtaxes   Both you and the organization can disregard the following membership benefits if you receive them in return for an annual payment of $75 or less. Backtaxes 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. Backtaxes 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. Backtaxes 20. Backtaxes Token items. Backtaxes   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Backtaxes You receive only a small item or other benefit of token value. Backtaxes 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. Backtaxes Written statement. Backtaxes   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. Backtaxes The statement must say that you can deduct only the amount of your payment that is more than the value of the goods or services you received. Backtaxes It must also give you a good faith estimate of the value of those goods or services. Backtaxes   The organization can give you the statement either when it solicits or when it receives the payment from you. Backtaxes Exception. Backtaxes   An organization will not have to give you this statement if one of the following is true. Backtaxes 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. Backtaxes You receive only items whose value is not substantial as described under Token items , earlier. Backtaxes You receive only membership benefits that can be disregarded, as described earlier. Backtaxes Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Backtaxes 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 as part of a program of the organization to provide educational opportunities for the student, Is not your relative or dependent, and Is a full-time student in the twelfth or any lower grade at a school in the United States. Backtaxes You can deduct up to $50 a month for each full calendar month the student lives with you. Backtaxes Any month when conditions (1) through (3) are met for 15 days or more counts as a full month. Backtaxes For additional information, see Expenses Paid for Student Living With You in Publication 526. Backtaxes Mutual exchange program. Backtaxes   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. Backtaxes Table 24-2. Backtaxes Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Backtaxes All of the rules explained in this chapter also apply. Backtaxes See, in particular, Out-of-Pocket Expenses in Giving Services . Backtaxes Question Answer I volunteer 6 hours a week in the office of a qualified organization. Backtaxes The receptionist is paid $10 an hour for the same work. Backtaxes Can I deduct $60 a week for my time?    No, you cannot deduct the value of your time or services. Backtaxes The office is 30 miles from my home. Backtaxes 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. Backtaxes If you don't want to figure your actual costs, you can deduct 14 cents for each mile. Backtaxes I volunteer as a Red Cross nurse's aide at a hospital. Backtaxes 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. Backtaxes I pay a babysitter to watch my children while I volunteer for a qualified organization. Backtaxes 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. Backtaxes (If you have childcare expenses so you can work for pay, see chapter 32. Backtaxes ) Out-of-Pocket Expenses in Giving Services 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. Backtaxes 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. Backtaxes Table 24-2 contains questions and answers that apply to some individuals who volunteer their services. Backtaxes Conventions. Backtaxes   If a qualified organization selects you to attend a convention as its representative, you can deduct unreimbursed expenses for travel, including reasonable amounts for meals and lodging, while away from home overnight in connection with the convention. Backtaxes However, see Travel , later. Backtaxes   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Backtaxes You also cannot deduct transportation, meals and lodging, and other expenses for your spouse or children. Backtaxes    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. Backtaxes You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Backtaxes Uniforms. Backtaxes   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. Backtaxes Foster parents. Backtaxes   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. Backtaxes A qualified organization must select the individuals you take into your home for foster care. Backtaxes    You can deduct expenses that meet both of the following requirements. Backtaxes They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Backtaxes They are incurred primarily to benefit the qualified organization. Backtaxes   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. Backtaxes For details, see chapter 3. Backtaxes Example. Backtaxes You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Backtaxes Your unreimbursed expenses are not deductible as charitable contributions. Backtaxes Car expenses. Backtaxes   You can deduct as a charitable contribution any unreimbursed out-of-pocket expenses, such as the cost of gas and oil, that are directly related to the use of your car in giving services to a charitable organization. Backtaxes You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Backtaxes    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. Backtaxes   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Backtaxes   You must keep reliable written records of your car expenses. Backtaxes For more information, see Car expenses under Records To Keep, later. Backtaxes Travel. Backtaxes   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. Backtaxes This applies whether you pay the expenses directly or indirectly. Backtaxes You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Backtaxes   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Backtaxes 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. Backtaxes 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. Backtaxes Example 1. Backtaxes You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Backtaxes You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Backtaxes You participate in the activities of the group and enjoy your time with them. Backtaxes You oversee the breaking of camp and you transport the group home. Backtaxes You can deduct your travel expenses. Backtaxes Example 2. Backtaxes You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Backtaxes The project is sponsored by a charitable organization. Backtaxes In most circumstances, you cannot deduct your expenses. Backtaxes Example 3. Backtaxes You work for several hours each morning on an archaeological dig sponsored by a charitable organization. Backtaxes The rest of the day is free for recreation and sightseeing. Backtaxes You cannot take a charitable contribution deduction even though you work very hard during those few hours. Backtaxes Example 4. Backtaxes You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Backtaxes In the evening you go to the theater. Backtaxes You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Backtaxes Daily allowance (per diem). Backtaxes   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. Backtaxes You may be able to deduct any necessary travel expenses that are more than the allowance. Backtaxes Deductible travel expenses. Backtaxes   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. Backtaxes Because these travel expenses are not business-related, they are not subject to the same limits as business-related expenses. Backtaxes For information on business travel expenses, see Travel Expenses in chapter 26. Backtaxes Contributions You Cannot Deduct There are some contributions you cannot deduct, such as those made to specific individuals and those made to nonqualified organizations. Backtaxes (See Contributions to Individuals and Contributions to Nonqualified Organizations , next. Backtaxes ) There are others you can deduct only part of, as discussed later under Contributions From Which You Benefit . Backtaxes Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Backtaxes Contributions to fraternal societies made for the purpose of paying medical or burial expenses of deceased members. Backtaxes Contributions to individuals who are needy or worthy. Backtaxes You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Backtaxes 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. Backtaxes Example. Backtaxes You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Backtaxes However, you cannot deduct contributions earmarked for relief of a particular individual or family. Backtaxes Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Backtaxes Expenses you paid for another person who provided services to a qualified organization. Backtaxes Example. Backtaxes Your son does missionary work. Backtaxes You pay his expenses. Backtaxes You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Backtaxes Payments to a hospital that are for a specific patient's care or for services for a specific patient. Backtaxes You cannot deduct these payments even if the hospital is operated by a city, a state, or other qualified organization. Backtaxes Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Backtaxes 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. Backtaxes Chambers of commerce and other business leagues or organizations (but see chapter 28). Backtaxes Civic leagues and associations. Backtaxes Communist organizations. Backtaxes Country clubs and other social clubs. Backtaxes Most foreign organizations (other than certain Canadian, Israeli, or Mexican charitable organizations). Backtaxes For details, see Publication 526. Backtaxes Homeowners' associations. Backtaxes Labor unions (but see chapter 28). Backtaxes Political organizations and candidates. Backtaxes 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. Backtaxes See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Backtaxes These contributions include the following. Backtaxes Contributions for lobbying. Backtaxes This includes amounts that you earmark for use in, or in connection with, influencing specific legislation. Backtaxes Contributions to a retirement home for room, board, maintenance, or admittance. Backtaxes Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Backtaxes Costs of raffles, bingo, lottery, etc. Backtaxes 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. Backtaxes For information on how to report gambling winnings and losses, see Gambling winnings in chapter 12 and Gambling Losses Up to the Amount of Gambling Winnings in chapter 28. Backtaxes Dues to fraternal orders and similar groups. Backtaxes However, see Membership fees or dues , earlier, under Contributions You Can Deduct. Backtaxes Tuition, or amounts you pay instead of tuition. Backtaxes 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. Backtaxes 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. Backtaxes ” 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. Backtaxes Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Backtaxes 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. Backtaxes Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final (but see Adoption Credit in chapter 37, and the instructions for Form 8839, Qualified Adoption Expenses). Backtaxes You also may be able to claim an exemption for the child. Backtaxes See Adopted child in chapter 3. Backtaxes Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property (but see chapter 28). Backtaxes 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. Backtaxes However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Backtaxes See Giving Property That Has Increased in Value , later. Backtaxes 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. Backtaxes Clothing and household items. Backtaxes   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. Backtaxes Exception. Backtaxes   You can take a deduction for a contribution of an item of clothing or 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. Backtaxes Household items. Backtaxes   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Backtaxes   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Backtaxes Cars, boats, and airplanes. Backtaxes    The following rules apply to any donation of a qualified vehicle. Backtaxes 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. Backtaxes Deduction more than $500. Backtaxes   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. Backtaxes 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. Backtaxes Form 1098-C. Backtaxes   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. Backtaxes The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Backtaxes   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453 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. Backtaxes   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Backtaxes    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Backtaxes But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Backtaxes Filing deadline approaching and still no Form 1098-C. Backtaxes   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Backtaxes Request an automatic 6-month extension of time to file your return. Backtaxes You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Backtaxes S. Backtaxes Individual Income Tax Return. Backtaxes  For more information, see Automatic Extension in chapter 1. Backtaxes File the return on time without claiming the deduction for the qualified vehicle. Backtaxes After receiving the Form 1098-C, file an amended return, Form 1040X, claiming the deduction. Backtaxes Attach Copy B of Form 1098-C (or other statement) to the amended return. Backtaxes For more information about amended returns, see Amended Returns and Claims for Refund in chapter 1. Backtaxes Exceptions. Backtaxes   There are two exceptions to the rules just described for deductions of more than $500. Backtaxes Exception 1—vehicle used or improved by organization. Backtaxes   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. Backtaxes 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. Backtaxes The Form 1098-C (or other statement) will show whether this exception applies. Backtaxes Exception 2—vehicle given or sold to needy individual. Backtaxes   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. Backtaxes 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. Backtaxes The Form 1098-C (or other statement) will show whether this exception applies. Backtaxes   This exception does not apply if the organization sells the vehicle at auction. Backtaxes In that case, you cannot deduct the vehicle's fair market value. Backtaxes Example. Backtaxes Anita donates a used car to a qualified organization. Backtaxes She bought it 3 years ago for $9,000. Backtaxes A used car guide shows the fair market value for this type of car is $6,000. Backtaxes However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Backtaxes Neither exception 1 nor exception 2 applies. Backtaxes If Anita itemizes her deductions, she can deduct $2,900 for her donation. Backtaxes She must attach Form 1098-C and Form 8283 to her return. Backtaxes Deduction $500 or less. Backtaxes   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. Backtaxes 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. Backtaxes   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. Backtaxes The statement must contain the information and meet the tests for an acknowledgment described under Deductions of At Least $250 But Not More Than $500 under Records To Keep, later. Backtaxes Partial interest in property. Backtaxes   Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Backtaxes Right to use property. Backtaxes   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Backtaxes For exceptions and more information, see Partial Interest in Property Not in Trust in Publication 561. Backtaxes Future interests in tangible personal property. Backtaxes   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. Backtaxes Tangible personal property. Backtaxes   This is any property, other than land or buildings, that can be seen or touched. Backtaxes It includes furniture, books, jewelry, paintings, and cars. Backtaxes Future interest. Backtaxes   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. Backtaxes Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Backtaxes Publication 561 contains a more complete discussion. Backtaxes 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. Backtaxes Used clothing and household items. Backtaxes   The fair market value of used clothing and household goods is usually far less than what you paid for them when they were new. Backtaxes   For used clothing, 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. Backtaxes See Household Goods in Publication 561 for information on the valuation of household goods, such as furniture, appliances, and linens. Backtaxes Example. Backtaxes Dawn Greene donated a coat to a thrift store operated by her church. Backtaxes She paid $300 for the coat 3 years ago. Backtaxes Similar coats in the thrift store sell for $50. Backtaxes The fair market value of the coat is $50. Backtaxes Dawn's donation is limited to $50. Backtaxes Cars, boats, and airplanes. Backtaxes   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Backtaxes 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. Backtaxes The guides may be published monthly or seasonally and for different regions of the country. Backtaxes These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Backtaxes The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Backtaxes But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Backtaxes   You can also find used car pricing information on the Internet. Backtaxes Example. Backtaxes You donate a used car in poor condition to a local high school for use by students studying car repair. Backtaxes A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Backtaxes However, the guide shows the price for a private party sale of the car is only $750. Backtaxes The fair market value of the car is considered to be $750. Backtaxes Large quantities. Backtaxes   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. Backtaxes Giving Property That Has Decreased in Value If you contribute property with a fair market value that is less than your basis in it, your deduction is limited to its fair market value. Backtaxes You cannot claim a deduction for the difference between the property's basis and its fair market value. Backtaxes Giving Property That Has Increased in Value If you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. Backtaxes Your basis in property is generally what you paid for it. Backtaxes See chapter 13 if you need more information about basis. Backtaxes Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. Backtaxes Ordinary income property. Backtaxes   Property is ordinary income property if you would have recognized ordinary income or short-term capital gain had you sold it at fair market value on the date it was contributed. Backtaxes Examples of ordinary income property are inventory, works of art created by the donor, manuscripts prepared by the donor, and capital assets (defined in chapter 14) held 1 year or less. Backtaxes Amount of deduction. Backtaxes   The amount you can deduct for a contribution of ordinary income property is its fair market value minus the amount that would be ordinary income or short-term capital gain if you sold the property for its fair market value. Backtaxes Generally, this rule limits the deduction to your basis in the property. Backtaxes Example. Backtaxes You donate stock you held for 5 months to your church. Backtaxes The fair market value of the stock on the day you donate it is $1,000, but you paid only $800 (your basis). Backtaxes Because the $200 of appreciation would be short-term capital gain if you sold the stock, your deduction is limited to $800 (fair market value minus the appreciation). Backtaxes Capital gain property. Backtaxes   Property is capital gain property if you would have recognized long-term capital gain had you sold it at fair market value on the date of the contribution. Backtaxes It includes capital assets held more than 1 year, as well as certain real property and depreciable property used in your trade or business and, generally, held more than 1 year. Backtaxes Amount of deduction — general rule. Backtaxes   When figuring your deduction for a contribution of capital gain property, you generally can use the fair market value of the property. Backtaxes Exceptions. Backtaxes   In certain situations, you must reduce the fair market value by any amount that would have been long-term capital gain if you had sold the property for its fair market value. Backtaxes Generally, this means reducing the fair market value to the property's cost or other basis. Backtaxes Bargain sales. Backtaxes   A bargain sale of property is a sale or exchange for less than the property's fair market value. Backtaxes A bargain sale to a qualified organization is partly a charitable contribution and partly a sale or exchange. Backtaxes A bargain sale may result in a taxable gain. Backtaxes More information. Backtaxes   For more information on donating appreciated property, see Giving Property That Has Increased in Value in Publication 526. Backtaxes When To Deduct You can deduct your contributions only in the year you actually make them in cash or other property (or in a later carryover year, as explained later under Carryovers ). Backtaxes This applies whether you use the cash or an accrual method of accounting. Backtaxes Time of making contribution. Backtaxes   Usually, you make a contribution at the time of its unconditional delivery. Backtaxes Checks. Backtaxes   A check you mail to a charity is considered delivered on the date you mail it. Backtaxes Text message. Backtaxes   Contributions made by text message are deductible in the year you send the text message if the contribution is charged to your telephone or wireless account. Backtaxes Credit card. Backtaxes    Contributions charged on your credit card are deductible in the year you make the charge. Backtaxes Pay-by-phone account. Backtaxes    Contributions made through a pay-by-phone account are considered delivered on the date the financial institution pays the amount. Backtaxes Stock certificate. Backtaxes   A properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity or to the charity's agent. Backtaxes However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the charity, your contribution is not delivered until the date the stock is transferred on the books of the corporation. Backtaxes Promissory note. Backtaxes   If you issue and deliver a promissory note to a charity as a contribution, it is not a contribution until you make the note payments. Backtaxes Option. Backtaxes    If you grant a charity an option to buy real property at a bargain price, it is not a contribution until the organization exercises the option. Backtaxes Borrowed funds. Backtaxes   If you contribute borrowed funds, you can deduct the contribution in the year you deliver the funds to the charity, regardless of when you repay the loan. Backtaxes Limits on Deductions The amount you can deduct for charitable contributions cannot be more than 50% of your adjusted gross income (AGI). Backtaxes Your deduction may be further limited to 30% or 20% of your AGI, depending on the type of property you give and the type of organization you give it to. Backtaxes If your total contributions for the year are 20% or less of your AGI, these limits do not apply to you. Backtaxes The limits are discussed in detail under Limits on Deductions in Publication 526. Backtaxes A higher limit applies to certain qualified conservation contributions. Backtaxes See Publication 526 for details. Backtaxes Carryovers You can carry over any contributions you cannot deduct in the current year because they exceed your adjusted-gross-income limits. Backtaxes You can deduct the excess in each of the next 5 years until it is used up, but not beyond that time. Backtaxes For more information, see Carryovers in Publication 526. Backtaxes Records To Keep You must keep records to prove the amount of the contributions you make during the year. Backtaxes The kind of records you must keep depends on the amount of your contributions and whether they are: Cash contributions, Noncash contributions, or Out-of-pocket expenses when donating your services. Backtaxes Note. Backtaxes An organization generally must give you a written statement if it receives a payment from you that is more than $75 and is partly a contribution and partly for goods or services. Backtaxes (See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Backtaxes ) Keep the statement for your records. Backtaxes It may satisfy all or part of the recordkeeping requirements explained in the following discussions. Backtaxes Cash Contributions Cash contributions include those paid by cash, check, electronic funds transfer, debit card, credit card, or payroll deduction. Backtaxes You cannot deduct a cash contribution, regardless of the amount, unless you keep one of the following. Backtaxes A bank record that shows the name of the qualified organization, the date of the contribution, and the amount of the contribution. Backtaxes Bank records may include: A canceled check, A bank or credit union statement, or A credit card statement. Backtaxes A receipt (or a letter or other written communication) from the qualified organization showing the name of the organization, the date of the contribution, and the amount of the contribution. Backtaxes The payroll deduction records described next. Backtaxes Payroll deductions. Backtaxes   If you make a contribution by payroll deduction, you must keep: A pay stub, Form W-2, or other document furnished by your employer that shows the date and amount of the contribution, and A pledge card or other document prepared by or for the qualified organization that shows the name of the organization. Backtaxes If your employer withheld $250 or more from a single paycheck, see Contributions of $250 or More , next. Backtaxes Contributions of $250 or More You can claim a deduction for a contribution of $250 or more only if you have an acknowledgment of your contribution from the qualified organization or certain payroll deduction records. Backtaxes If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that lists each contribution and the date of each contribution and shows your total contributions. Backtaxes Amount of contribution. Backtaxes   In figuring whether your contribution is $250 or more, do not combine separate contributions. Backtaxes For example, if you gave your church $25 each week, your weekly payments do not have to be combined. Backtaxes Each payment is a separate contribution. Backtaxes   If contributions are made by payroll deduction, the deduction from each paycheck is treated as a separate contribution. Backtaxes   If you made a payment that is partly for goods and services, as described earlier under Contributions From Which You Benefit , your contribution is the amount of the payment that is more than the value of the goods and services. Backtaxes Acknowledgment. Backtaxes   The acknowledgment must meet these tests. Backtaxes It must be written. Backtaxes It must include: The amount of cash you contributed, Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), A description and good faith estimate of the value of any goods or services described in (b) (other than intangible religious benefits), and A statement that the only benefit you received was an intangible religious benefit, if that was the case. Backtaxes The acknowledgment does not need to describe or estimate the value of an intangible religious benefit. Backtaxes An intangible religious benefit is a benefit that generally is not sold in commercial transactions outside a donative (gift) context. Backtaxes An example is admission to a religious ceremony. Backtaxes You must get it on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Backtaxes   If the acknowledgment does not show the date of the contribution, you must also have a bank record or receipt, as described earlier, that does show the date of the contribution. Backtaxes If the acknowledgment shows the date of the contribution and meets the other tests just described, you do not need any other records. Backtaxes Payroll deductions. Backtaxes   If you make a contribution by payroll deduction and your employer withholds $250 or more from a single paycheck, you must keep: A pay stub, Form W-2, or other document furnished by your employer that shows the amount withheld as a contribution, and A pledge card or other document prepared by or for the qualified organization that shows the name of the organization and states the organization does not provide goods or services in return for any contribution made to it by payroll deduction. Backtaxes A single pledge card may be kept for all contributions made by payroll deduction regardless of amount as long as it contains all the required information. Backtaxes   If the pay stub, Form W-2, pledge card, or other document does not show the date of the contribution, you must have another document that does show the date of the contribution. Backtaxes If the pay stub, Form W-2, pledge card, or other document shows the date of the contribution, you do not need any other records except those just described in (1) and (2). Backtaxes Noncash Contributions For a contribution not made in cash, the records you must keep depend on whether your deduction for the contribution is: Less than $250, At least $250 but not more than $500, Over $500 but not more than $5,000, or Over $5,000. Backtaxes Amount of deduction. Backtaxes   In figuring whether your deduction is $500 or more, combine your claimed deductions for all similar items of property donated to any charitable organization during the year. Backtaxes   If you received goods or services in return, as described earlier in Contributions From Which You Benefit , reduce your contribution by the value of those goods or services. Backtaxes If you figure your deduction by reducing the fair market value of the donated property by its appreciation, as described earlier in Giving Property That Has Increased in Value , your contribution is the reduced amount. Backtaxes Deductions of Less Than $250 If you make any noncash contribution, you must get and keep a receipt from the charitable organization showing: The name of the charitable organization, The date and location of the charitable contribution, and A reasonably detailed description of the property. Backtaxes A letter or other written communication from the charitable organization acknowledging receipt of the contribution and containing the information in (1), (2), and (3) will serve as a receipt. Backtaxes You are not required to have a receipt where it is impractical to get one (for example, if you leave property at a charity's unattended drop site). Backtaxes Additional records. Backtaxes   You must also keep reliable written records for each item of contributed property. Backtaxes Your written records must include the following information. Backtaxes The name and address of the organization to which you contributed. Backtaxes The date and location of the contribution. Backtaxes A description of the property in detail reasonable under the circumstances. Backtaxes For a security, keep the name of the issuer, the type of security, and whether it is regularly traded on a stock exchange or in an over-the-counter market. Backtaxes The fair market value of the property at the time of the contribution and how you figured the fair market value. Backtaxes If it was determined by appraisal, keep a signed copy of the appraisal. Backtaxes The cost or other basis of the property, if you must reduce its fair market value by appreciation. Backtaxes Your records should also include the amount of the reduction and how you figured it. Backtaxes The amount you claim as a deduction for the tax year as a result of the contribution, if you contribute less than your entire interest in the property during the tax year. Backtaxes Your records must include the amount you claimed as a deduction in any earlier years for contributions of other interests in this property. Backtaxes They must also include the name and address of each organization to which you contributed the other interests, the place where any such tangible property is located or kept, and the name of any person in possession of the property, other than the organization to which you contributed it. Backtaxes The terms of any conditions attached to the contribution of property. Backtaxes Deductions of At Least $250 But Not More Than $500 If you claim a deduction of at least $250 but not more than $500 for a noncash charitable contribution, you must get and keep an acknowledgment of your contribution from the qualified organization. Backtaxes If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that shows your total contributions. Backtaxes The acknowledgment must contain the information in items (1) through (3) under Deductions of Less Than $250 , earlier, and your written records must include the information listed in that discussion under Additional records . Backtaxes The acknowledgment must also meet these tests. Backtaxes It must be written. Backtaxes It must include: A description (but not necessarily the value) of any property you contributed, Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), and A description and good faith estimate of the value of any goods or services described in (b). Backtaxes If the only benefit you received was an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in a commercial transaction outside the donative context, the acknowledgment must say so and does not need to describe or estimate the value of the benefit. Backtaxes You must get it on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Backtaxes Deductions Over $500 You are required to give additional information if you claim a deduction over $500 for noncash charitable contributions. Backtaxes See Records To Keep in Publication 526 for more information. Backtaxes Out-of-Pocket Expenses If you give services to a qualified organization and have unreimbursed out-of-pocket expenses related to those services, the following two rules apply. Backtaxes You must have adequate records to prove the amount of the expenses. Backtaxes If any of your unreimbursed out-of-pocket expenses, considered separately, are $250 or more (for example, you pay $250 or more for an airline ticket to attend a convention of a qualified organization as a chosen representative), you must get an acknowledgment from the qualified organization that contains: A description of the services you provided, A statement of whether or not the organization provided you any goods or services to reimburse you for the expenses you incurred, A description and a good faith estimate of the value of any goods or services (other than intangible religious benefits) provided to reimburse you, and A statement that the only benefit you received was an intangible religious benefit, if that was the case. Backtaxes The acknowledgment does not need to describe or estimate the value of an intangible religious benefit (defined earlier under Acknowledgment ). Backtaxes You must get the acknowledgment on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Backtaxes Car expenses. Backtaxes   If you claim expenses directly related to use of your car in giving services to a qualified organization, you must keep reliable written records of your expenses. Backtaxes Whether your records are considered reliable depends on all the facts and circumstances. Backtaxes Generally, they may be considered reliable if you made them regularly and at or near the time you had the expenses. Backtaxes   For example, your records might show the name of the organization you were serving and the dates you used your car for a charitable purpose. Backtaxes If you use the standard mileage rate of 14 cents a mile, your records must show the miles you drove your car for the charitable purpose. Backtaxes If you deduct your actual expenses, your records must show the costs of operating the car that are directly related to a charitable purpose. Backtaxes   See Car expenses under Out-of-Pocket Expenses in Giving Services, earlier, for the expenses you can deduct. Backtaxes How To Report Report your charitable contributions on Schedule A (Form 1040). Backtaxes If your total deduction for all noncash contributions for the year is over $500, you must also file Form 8283. Backtaxes See How To Report in Publication 526 for more information. Backtaxes Prev  Up  Next   Home   More Online Publications