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Free State Income Tax

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Free State Income Tax

Free state income tax Publication 554 - Introductory Material Table of Contents What's New Reminders IntroductionVolunteer Income Tax Assistance and Tax Counseling for the Elderly. Free state income tax Ordering forms and publications. Free state income tax Tax questions. Free state income tax What's New Alternative minimum tax exemption increased. Free state income tax  The AMT exemption amount has increased to $51,900 ($80,800 if married filing jointly or qualifying widow(er); $40,400 if married filing separately). Free state income tax Earned income credit. Free state income tax  The maximum amount of income you can earn and still get the credit has increased. Free state income tax You may be able to take the credit if you earn less than: $14,340 ($19,680 if married filing jointly), do not have a qualifying child, and are at least 25 years old and under 65, $37,870 ($43,210 if married filing jointly), and you have one qualifying child, $43,038 ($48,378 if married filing jointly), and you have two qualifying children, or $46,227 ($51,567 if married filing jointly), and you have three or more qualifying children. Free state income tax For more information, see Earned Income Credit , later. Free state income tax Exemption phaseout. Free state income tax  You lose at least part of the benefit of your exemptions if your adjusted gross income is above a certain amount. Free state income tax For 2013, the phaseout begins at $150,000 for married individuals filing separate returns; $250,000 for single individuals; $275,000 for heads of household; and $300,000 for married individuals filing joint returns or qualifying widow(er)s. Free state income tax For more information, see Phaseout of Exemptions in Publication 501. Free state income tax Limit on itemized deductions. Free state income tax   Beginning January 1, 2013, itemized deductions for taxpayers with adjusted gross incomes above $150,000 may be reduced. Free state income tax See Overall limitation , later. Free state income tax Medical and dental expenses. Free state income tax   Beginning January 1, 2013, taxpayers 65 and older can deduct only the part of their medical and dental expenses that exceed 7. Free state income tax 5% of their adjusted gross income (10% for taxpayers under 65). Free state income tax Same-sex marriages. Free state income tax  If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. Free state income tax For more information, see Publication 501. Free state income tax Reminders Future developments. Free state income tax  For the latest information about developments related to Publication 554, such as legislation enacted after it was published, go to www. Free state income tax irs. Free state income tax gov/pub554. Free state income tax Tax return preparers. Free state income tax  Choose your preparer carefully. Free state income tax If you pay someone to prepare your return, the preparer is required, under the law, to sign the return and fill in the other blanks in the Paid Preparer's area of your return. Free state income tax Remember, however, that you are still responsible for the accuracy of every item entered on your return. Free state income tax If there is any underpayment, you are responsible for paying it, plus any interest and penalty that may be due. Free state income tax Sale of home by surviving spouse. Free state income tax  If you are an unmarried widow or widower, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home. Free state income tax For more information, see Sale of Home , later. Free state income tax Third party designee. Free state income tax  You can check the “Yes” box in the Third Party Designee area of your return to authorize the IRS to discuss your return with your preparer, a friend, family member, or any other person you choose. Free state income tax This allows the IRS to call the person you identified as your designee to answer any questions that may arise during the processing of your return. Free state income tax It also allows your designee to perform certain actions. Free state income tax See your income tax return instructions for details. Free state income tax Employment tax withholding. Free state income tax  Your wages are subject to withholding for income tax, social security tax, and Medicare tax even if you are receiving social security benefits. Free state income tax Photographs of missing children. Free state income tax  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Free state income tax Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free state income tax You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Free state income tax Introduction The purpose of this publication is to provide a general overview of selected topics that are of interest to older taxpayers. Free state income tax The publication will help you determine if you need to file a return and, if so, what items to report on your return. Free state income tax Each topic is discussed only briefly, so you will find references to other free IRS publications that provide more detail on these topics if you need it. Free state income tax Table I has a list of questions you may have about filing your federal tax return. Free state income tax To the right of each question is the location of the answer in this publication. Free state income tax Also, at the back of this publication there is an index to help you search for the topic you need. Free state income tax While most federal income tax laws apply equally to all taxpayers, regardless of age, there are some provisions that give special treatment to older taxpayers. Free state income tax The following are some examples. Free state income tax Higher gross income threshold for filing. Free state income tax You must be age 65 or older at the end of the year to get this benefit. Free state income tax You are considered age 65 on the day before your 65th birthday. Free state income tax Therefore, you are considered age 65 at the end of the year if your 65th birthday is on or before January 1 of the following year. Free state income tax Higher standard deduction. Free state income tax If you do not itemize deductions, you are entitled to a higher standard deduction if you are age 65 or older at the end of the year. Free state income tax You are considered age 65 at the end of the year if your 65th birthday is on or before January 1 of the following year. Free state income tax Credit for the elderly or the disabled. Free state income tax If you qualify, you may benefit from the credit for the elderly or the disabled. Free state income tax To determine if you qualify and how to figure this credit, see Credit for the Elderly or the Disabled , later. Free state income tax Return preparation assistance. Free state income tax   The IRS wants to make it easier for you to file your federal tax return. Free state income tax You may find it helpful to visit a Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE), or American Association of Retired Persons (AARP) Tax-Aide site near you. Free state income tax Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Free state income tax   These programs provide free help for low-income taxpayers and taxpayers age 60 or older to fill in and file their returns. Free state income tax For the VITA/TCE site nearest you, contact your local IRS office. Free state income tax For more information, see Free help with your tax return under How To Get Tax Help. Free state income tax   For the location of an AARP Tax-Aide site in your community, call 1-888-227-7669. Free state income tax When asked, be ready to press in or speak your 5-digit ZIP code. Free state income tax Or, you can visit their website on the Internet at www. Free state income tax aarp. Free state income tax org/money/taxaide. Free state income tax Comments and suggestions. Free state income tax   We welcome your comments about this publication and your suggestions for future editions. Free state income tax   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Free state income tax NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free state income tax Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free state income tax   You can send your comments from www. Free state income tax irs. Free state income tax gov/formspubs/. Free state income tax Click on “More Information” and then on “Comment on Tax Forms and Publications. Free state income tax ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Free state income tax Ordering forms and publications. Free state income tax   Visit www. Free state income tax irs. Free state income tax gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 business days after your request is received. Free state income tax Internal Revenue Service 1201 N. Free state income tax Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Free state income tax   If you have a tax question, check the information available on IRS. Free state income tax gov or call 1-800-829-1040. Free state income tax We cannot answer tax questions sent to either of the above addresses. Free state income tax Table I. Free state income tax What You Should Know About Federal Taxes Note. Free state income tax The following is a list of questions you may have about filling out your federal income tax return. Free state income tax  To the right of each question is the location of the answer in this publication. Free state income tax What I Should Know Where To Find the Answer Do I need to file a return? See chapter 1. Free state income tax Is my income taxable or nontaxable?  If it is nontaxable, must I still report it? See chapter 2. Free state income tax How do I report benefits I received from the Social Security Administration or the Railroad Retirement Board?  Are these benefits taxable? See Social Security and Equivalent Railroad Retirement Benefits in chapter 2. Free state income tax Must I report the sale of my home?  If I had a gain, is any part of it taxable? See Sale of Home in chapter 2. Free state income tax What are some of the items that I can deduct to reduce my income? See chapters 3 and 4. Free state income tax How do I report the amounts I set aside for my IRA? See Individual Retirement Arrangement (IRA) Contributions and Deductions in chapter 3. Free state income tax Would it be better for me to claim the standard deduction or itemize my deductions? See chapter 4. Free state income tax What are some of the credits I can claim to reduce my tax? See chapter 5 for discussions on the credit for the elderly or the disabled, the child and dependent care credit, and the earned income credit. Free state income tax Must I make estimated tax payments? See chapter 6. Free state income tax How do I contact the IRS or get more information? See chapter 7. Free state income tax Prev  Up  Next   Home   More Online Publications
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Tax Code, Regulations and Official Guidance

Internal Revenue Code |   Treasury (Tax) Regulations    |    Other Official Guidance

Internal Revenue Code

Federal tax law begins with the Internal Revenue Code (IRC), enacted by Congress in Title 26 of the United States Code (26 U.S.C.).

Table of contents Retrieve by section number Execute full text search
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After clicking through the exit link below, enter "26" for the Title and then the Section number.

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Note: The IRC materials retrieved via the above functions are provided as a public service by The Legal Information Institute of Cornell University Law School, not the IRS.

CAUTION.  The version of the IRC underlying the retrieval functions presented above is generated from the official version of the U.S. Code made available to the public by Congress.  However, this version is only current through the 1st Session of the 112th Congress convened in 2011.  Before relying on an IRC section retrieved from this or any other publicly accessible version of the U.S. Code, please check the U.S. Code Classification Tables  published by the U.S. House of Representatives to verify that there have been no amendments since that session of Congress.

Finally, the IRC is complex and its sections must be read in the context of the entire Code and the court decisions that interpret it.  At a minimum, please do not be misled by the false interpretations of the IRC promoted by the purveyors of anti-tax law evasion schemes.

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Treasury (Tax) Regulations

Treasury regulations (26 C.F.R.)--commonly referred to as Federal tax regulations-- pick up where the Internal Revenue Code (IRC) leaves off by providing the official interpretation of the IRC by the U.S. Department of the Treasury.

Table of contents Retrieve most current version by Treas. Reg. § Execute full text search of the most current edition of 26 C.F.R.
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After clicking through the exit link below, select the applicable year, select "26" for the Title and then enter the Section number.

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Note: Regulatory materials retrieved via the above functions are from the most current edition of 26 C.F.R. published by the Government Printing Office (GPO).  To view or search other editions of 26 C.F.R., see the table of available CFR titles provided by GPO Access.

The IRS publishes a list of the official documents explaining any changes to the Treasury regulations retrieved from the above resources, or to announce the issuance of any proposed or temporary ones:

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Other Official Tax Guidance

In addition to participating in the promulgation of Treasury (Tax) Regulations, the IRS publishes a regular series of other forms of official tax guidance, including revenue rulings, revenue procedures, notices, and announcements. See Understanding IRS Guidance - A Brief Primer  for more information about official IRS guidance versus non-precedential rulings or advice.

The authoritative instrument for the distribution of all forms of official IRS tax guidance is the Internal Revenue Bulletin (IRB), a weekly collection of these and other items of general interest to the tax professional community.

Complete IRB publication in a printer friendly PDF format
(from I.R.B. 1996-1 to present)
Individual IRB articles in the HTML format
(from I.R.B. 2003-27 to present)

   Browse the master list of Internal Revenue Bulletins published in the PDF format;

   Browse the master list of Internal Revenue Bulletins published in the HTML format;

Note: The IRB materials retrieved from the above resources are provided by IRS Media and Publications.

The IRS frequently releases individual items in advance of their publication in the IRB.  See the Advance Notice for Tax Professionals page for more information about the "early drop" of these items.  And if you'd like to receive automated email notifications about these items, please feel free to subscribe to our IRS GuideWire service.

Finally, see the Applicable Federal Rates (AFR) page for a series of revenue rulings providing certain prescribed rates for federal income tax purposes.  These AFR revenue rulings are always released before they are officially published in the IRB.

PLEASE NOTERulings and procedures reported in the IRB do not have the force and effect of Treasury tax regulations, but they may be used as precedents. In contrast, any documents not published in the IRB cannot be relied on, used, or cited as precedents in the disposition of other cases.

In applying rulings and procedures published in the IRB, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered.  In addition, all parties are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same.

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Page Last Reviewed or Updated: 24-Feb-2014

The Free State Income Tax

Free state income tax 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. Free state income tax Text message. Free state income tax Credit card. Free state income tax Pay-by-phone account. Free state income tax Stock certificate. Free state income tax Promissory note. Free state income tax Option. Free state income tax Borrowed funds. Free state income tax Conditional gift. Free state income tax 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. Free state income tax Total deduction over $500. Free state income tax Deduction over $5,000 for one item. Free state income tax Vehicle donations. Free state income tax Clothing and household items not in good used condition. Free state income tax Easement on building in historic district. Free state income tax Deduction over $500,000. Free state income tax 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. Free state income tax Most organizations, other than churches and governments, must apply to the IRS to become a qualified organization. Free state income tax How to check whether an organization can receive deductible charitable contributions. Free state income tax   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Free state income tax Or go to IRS. Free state income tax gov. Free state income tax Click on “Tools” and then on “Exempt Organizations Select Check” (www. Free state income tax irs. Free state income tax gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Free state income tax This online tool will enable you to search for qualified organizations. Free state income tax You can also call the IRS to find out if an organization is qualified. Free state income tax Call 1-877-829-5500. Free state income tax 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. Free state income tax Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Free state income tax gsa. Free state income tax gov/fedrelay. Free state income tax Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Free state income tax 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). Free state income tax 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. Free state income tax Certain organizations that foster national or international amateur sports competition also qualify. Free state income tax War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Free state income tax Domestic fraternal societies, orders, and associations operating under the lodge system. Free state income tax (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. Free state income tax ) Certain nonprofit cemetery companies or corporations. Free state income tax (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. Free state income tax ) The United States or any state, the District of Columbia, a U. Free state income tax S. Free state income tax possession (including Puerto Rico), a political subdivision of a state or U. Free state income tax S. Free state income tax possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Free state income tax (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes. Free state income tax ) Example 1. Free state income tax You contribute cash to your city's police department to be used as a reward for information about a crime. Free state income tax The city police department is a qualified organization, and your contribution is for a public purpose. Free state income tax You can deduct your contribution. Free state income tax Example 2. Free state income tax You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Free state income tax Because the trust fund is part of the U. Free state income tax S. Free state income tax Government, you contributed to a qualified organization. Free state income tax You can deduct your contribution. Free state income tax Examples. Free state income tax   The following list gives some examples of qualified organizations. Free state income tax Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Free state income tax Most nonprofit charitable organizations such as the American Red Cross and the United Way. Free state income tax Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Free state income tax 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. Free state income tax 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 . Free state income tax Nonprofit hospitals and medical research organizations. Free state income tax Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Free state income tax Nonprofit volunteer fire companies. Free state income tax Nonprofit organizations that develop and maintain public parks and recreation facilities. Free state income tax Civil defense organizations. Free state income tax Canadian charities. Free state income tax   You may be able to deduct contributions to certain Canadian charitable organizations covered under an income tax treaty with Canada. Free state income tax To deduct your contribution to a Canadian charity, you generally must have income from sources in Canada. Free state income tax See Publication 597, Information on the United States-Canada Income Tax Treaty, for information on how to figure your deduction. Free state income tax Mexican charities. Free state income tax   Under the U. Free state income tax S. Free state income tax -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. Free state income tax S. Free state income tax law. Free state income tax To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. Free state income tax The limits described in Limits on Deductions , later, apply and are figured using your income from Mexican sources. Free state income tax Israeli charities. Free state income tax   Under the U. Free state income tax S. Free state income tax -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. Free state income tax S. Free state income tax law. Free state income tax To deduct your contribution to an Israeli charity, you must have income from sources in Israel. Free state income tax The limits described in Limits on Deductions , later, apply. Free state income tax The deduction is also limited to 25% of your adjusted gross income from Israeli sources. Free state income tax Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Free state income tax 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. Free state income tax The contributions must be made to a qualified organization and not set aside for use by a specific person. Free state income tax 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. Free state income tax See Contributions of Property , later. Free state income tax 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. Free state income tax In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited. Free state income tax See Limits on Deductions , later. Free state income tax Table 1 in this publication gives examples of contributions you can and cannot deduct. Free state income tax 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. Free state income tax Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Free state income tax If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Free state income tax For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Free state income tax Example 1. Free state income tax You pay $65 for a ticket to a dinner-dance at a church. Free state income tax Your entire $65 payment goes to the church. Free state income tax The ticket to the dinner-dance has a fair market value of $25. Free state income tax When you buy your ticket, you know its value is less than your payment. Free state income tax To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Free state income tax You can deduct $40 as a charitable contribution to the church. Free state income tax Example 2. Free state income tax At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Free state income tax The amount you pay is no more than the fair rental value. Free state income tax You have not made a deductible charitable contribution. Free state income tax Athletic events. Free state income tax   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. Free state income tax   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Free state income tax Subtract the price of the tickets from your payment. Free state income tax You can deduct 80% of the remaining amount as a charitable contribution. Free state income tax Example 1. Free state income tax You pay $300 a year for membership in a university's athletic scholarship program. Free state income tax 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. Free state income tax You can deduct $240 (80% of $300) as a charitable contribution. Free state income tax Example 2. Free state income tax 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. Free state income tax You must subtract the usual price of a ticket ($120) from your $300 payment. Free state income tax The result is $180. Free state income tax Your deductible charitable contribution is $144 (80% of $180). Free state income tax Charity benefit events. Free state income tax   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. Free state income tax   If there is an established charge for the event, that charge is the value of your benefit. Free state income tax If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Free state income tax Whether you use the tickets or other privileges has no effect on the amount you can deduct. Free state income tax However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Free state income tax    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. Free state income tax If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Free state income tax Example. Free state income tax You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Free state income tax Printed on the ticket is “Contribution–$40. Free state income tax ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Free state income tax Membership fees or dues. Free state income tax   You may be able to deduct membership fees or dues you pay to a qualified organization. Free state income tax However, you can deduct only the amount that is more than the value of the benefits you receive. Free state income tax   You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Free state income tax They are not qualified organizations. Free state income tax Certain membership benefits can be disregarded. Free state income tax   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. Free state income tax 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. Free state income tax 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. Free state income tax 20. Free state income tax Token items. Free state income tax   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Free state income tax You receive only a small item or other benefit of token value. Free state income tax 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. Free state income tax 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. Free state income tax Written statement. Free state income tax   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. Free state income tax 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. Free state income tax It must also give you a good faith estimate of the value of those goods or services. Free state income tax   The organization can give you the statement either when it solicits or when it receives the payment from you. Free state income tax Exception. Free state income tax   An organization will not have to give you this statement if one of the following is true. Free state income tax 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. Free state income tax You receive only items whose value is not substantial as described under Token items , earlier. Free state income tax You receive only membership benefits that can be disregarded, as described under Membership fees or dues , earlier. Free state income tax Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Free state income tax 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. Free state income tax You can deduct up to $50 a month for each full calendar month the student lives with you. Free state income tax Any month when conditions (1) through (3) above are met for 15 or more days counts as a full month. Free state income tax Qualified organization. Free state income tax   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). Free state income tax 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. Free state income tax But see Foster parents under Out-of-Pocket Expenses in Giving Services, later, if you provide the home as a foster parent. Free state income tax Relative. Free state income tax   The term “relative” means any of the following persons. Free state income tax Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Free state income tax A legally adopted child is considered your child. Free state income tax Your brother, sister, half brother, half sister, stepbrother, or stepsister. Free state income tax Your father, mother, grandparent, or other direct ancestor. Free state income tax Your stepfather or stepmother. Free state income tax A son or daughter of your brother or sister. Free state income tax A brother or sister of your father or mother. Free state income tax Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Free state income tax Dependent. Free state income tax   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. Free state income tax    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. Free state income tax S. Free state income tax residents and cannot be claimed as dependents. Free state income tax Qualifying expenses. Free state income tax   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. Free state income tax Expenses that do not qualify. Free state income tax   You cannot deduct depreciation on your home, the fair market value of lodging, and similar items not considered amounts actually spent by you. Free state income tax Nor can you deduct general household expenses, such as taxes, insurance, and repairs. Free state income tax Reimbursed expenses. Free state income tax   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. Free state income tax 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. Free state income tax Mutual exchange program. Free state income tax   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. Free state income tax Reporting expenses. Free state income tax   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. Free state income tax Out-of-Pocket Expenses in Giving Services Table 2. Free state income tax Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Free state income tax All of the rules explained in this publication also apply. Free state income tax See, in particular, Out-of-Pocket Expenses in Giving Services . Free state income tax Question Answer I volunteer 6 hours a week in the office of a qualified organization. Free state income tax The receptionist is paid $10 an hour for the same work. Free state income tax Can I deduct $60 a week for my time? No, you cannot deduct the value of your time or services. Free state income tax  The office is 30 miles from my home. Free state income tax 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. Free state income tax If you do not want to figure your actual costs, you can deduct 14 cents for each mile. Free state income tax I volunteer as a Red Cross nurse's aide at a hospital. Free state income tax 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. Free state income tax I pay a babysitter to watch my children while I volunteer for a qualified organization. Free state income tax 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. Free state income tax (If you have childcare expenses so you can work for pay, see Publication 503, Child and Dependent Care Expenses. Free state income tax ) 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. Free state income tax 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. Free state income tax Table 2 contains questions and answers that apply to some individuals who volunteer their services. Free state income tax Underprivileged youths selected by charity. Free state income tax   You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. Free state income tax The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Free state income tax Your own similar expenses in accompanying the youths are not deductible. Free state income tax Conventions. Free state income tax   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. Free state income tax However, see Travel , later. Free state income tax   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Free state income tax You also cannot deduct travel, meals and lodging, and other expenses for your spouse or children. Free state income tax   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. Free state income tax You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Free state income tax Uniforms. Free state income tax   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. Free state income tax Foster parents. Free state income tax   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. Free state income tax A qualified organization must select the individuals you take into your home for foster care. Free state income tax   You can deduct expenses that meet both of the following requirements. Free state income tax They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Free state income tax They are incurred primarily to benefit the qualified organization. Free state income tax   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. Free state income tax For details, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Free state income tax Example. Free state income tax You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Free state income tax Your unreimbursed expenses are not deductible as charitable contributions. Free state income tax Church deacon. Free state income tax   You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. Free state income tax 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. Free state income tax Car expenses. Free state income tax   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. Free state income tax You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Free state income tax   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. Free state income tax   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Free state income tax   You must keep reliable written records of your car expenses. Free state income tax For more information, see Car expenses under Records To Keep, later. Free state income tax Travel. Free state income tax   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. Free state income tax This applies whether you pay the expenses directly or indirectly. Free state income tax You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Free state income tax   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Free state income tax 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. Free state income tax 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. Free state income tax Example 1. Free state income tax You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Free state income tax You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Free state income tax You participate in the activities of the group and enjoy your time with them. Free state income tax You oversee the breaking of camp and you transport the group home. Free state income tax You can deduct your travel expenses. Free state income tax Example 2. Free state income tax You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Free state income tax The project is sponsored by a charitable organization. Free state income tax In most circumstances, you cannot deduct your expenses. Free state income tax Example 3. Free state income tax You work for several hours each morning on an archeological dig sponsored by a charitable organization. Free state income tax The rest of the day is free for recreation and sightseeing. Free state income tax You cannot take a charitable contribution deduction even though you work very hard during those few hours. Free state income tax Example 4. Free state income tax You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Free state income tax In the evening you go to the theater. Free state income tax You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Free state income tax Daily allowance (per diem). Free state income tax   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. Free state income tax You may be able to deduct any necessary travel expenses that are more than the allowance. Free state income tax Deductible travel expenses. Free state income tax   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. Free state income tax Because these travel expenses are not business-related, they are not subject to the same limits as business related expenses. Free state income tax For information on business travel expenses, see Travel in Publication 463, Travel, Entertainment, Gift, and Car Expenses. Free state income tax 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. Free state income tax The deduction is limited to $10,000 a year. Free state income tax 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. Free state income tax Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission. Free state income tax 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. Free state income tax You must keep records showing the time, place, date, amount, and nature of the expenses. Free state income tax For details, see Revenue Procedure 2006-50, which is on page 944 of Internal Revenue Bulletin 2006-47 at www. Free state income tax irs. Free state income tax gov/pub/irs-irbs/irb06-47. Free state income tax pdf. Free state income tax Contributions You Cannot Deduct There are some contributions you cannot deduct and others you can deduct only in part. Free state income tax 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. Free state income tax Detailed discussions of these items follow. Free state income tax Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Free state income tax Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members. Free state income tax Contributions to individuals who are needy or worthy. Free state income tax You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Free state income tax 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. Free state income tax Example. Free state income tax You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Free state income tax However, you cannot deduct contributions earmarked for relief of a particular individual or family. Free state income tax Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Free state income tax Expenses you paid for another person who provided services to a qualified organization. Free state income tax Example. Free state income tax Your son does missionary work. Free state income tax You pay his expenses. Free state income tax You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Free state income tax Payments to a hospital that are for a specific patient's care or for services for a specific patient. Free state income tax You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization. Free state income tax Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Free state income tax 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. Free state income tax Chambers of commerce and other business leagues or organizations. Free state income tax Civic leagues and associations. Free state income tax Communist organizations. Free state income tax Country clubs and other social clubs. Free state income tax Foreign organizations other than certain Canadian, Israeli, or Mexican charitable organizations. Free state income tax (See Canadian charities , Mexican charities , and Israeli charities under Organizations That Qualify To Receive Deductible Contributions, earlier. Free state income tax ) Also, you cannot deduct a contribution you made to any qualifying organization if the contribution is earmarked to go to a foreign organization. Free state income tax 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. Free state income tax 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. Free state income tax The contribution is also deductible if the foreign charity is only an administrative arm of the qualified organization. Free state income tax Homeowners' associations. Free state income tax Labor unions. Free state income tax 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). Free state income tax See Publication 529, Miscellaneous Deductions. Free state income tax Political organizations and candidates. Free state income tax 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. Free state income tax See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Free state income tax These contributions include the following. Free state income tax Contributions for lobbying. Free state income tax This includes amounts you earmark for use in, or in connection with, influencing specific legislation. Free state income tax Contributions to a retirement home for room, board, maintenance, or admittance. Free state income tax Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Free state income tax Costs of raffles, bingo, lottery, etc. Free state income tax 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. Free state income tax For information on how to report gambling winnings and losses, see Deductions Not Subject to the 2% Limit in Publication 529. Free state income tax Dues to fraternal orders and similar groups. Free state income tax However, see Membership fees or dues under Contributions From Which You Benefit, earlier. Free state income tax Tuition, or amounts you pay instead of tuition. Free state income tax 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. Free state income tax 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. Free state income tax ” Contributions connected with split-dollar insurance arrangements. Free state income tax 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. Free state income tax Example. Free state income tax You donate money to a charitable organization. Free state income tax The charity uses the money to purchase a cash value life insurance policy. Free state income tax The beneficiaries under the insurance policy include members of your family. Free state income tax Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation. Free state income tax 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. Free state income tax You must have been at least age 70½ when the distribution was made. Free state income tax Your total QCDs for the year cannot be more than $100,000. Free state income tax If all the requirements are met, a QCD is nontaxable, but you cannot claim a charitable contribution deduction for a QCD. Free state income tax See Publication 590, Individual Retirement Arrangements (IRAs), for more information about QCDs. Free state income tax 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. Free state income tax Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Free state income tax 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. Free state income tax Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. Free state income tax However, you may be able to claim a tax credit for these expenses. Free state income tax Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. Free state income tax See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. Free state income tax You also may be able to claim an exemption for the child. Free state income tax See Exemptions for Dependents in Publication 501 for more information. Free state income tax Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property. Free state income tax But you can claim them, subject to the 2%-of-adjusted-gross-income limit, as a miscellaneous itemized deduction on Schedule A (Form 1040). Free state income tax See Deductions Subject to the 2% Limit in Publication 529 for more information. Free state income tax 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. Free state income tax There are also other circumstances in which you cannot deduct your contribution to a donor-advised fund. Free state income tax 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. Free state income tax For details, see Internal Revenue Code section 170(f)(18). Free state income tax Partial Interest in Property Generally, you cannot deduct a contribution of less than your entire interest in property. Free state income tax For details, see Partial Interest in Property under Contributions of Property, later. Free state income tax 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. Free state income tax However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Free state income tax See Giving Property That Has Increased in Value , later. Free state income tax 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. Free state income tax 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. Free state income tax These special rules are described next. Free state income tax 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. Free state income tax Exception. Free state income tax   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. Free state income tax Household items. Free state income tax   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Free state income tax   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Free state income tax Fair market value. Free state income tax   To determine the fair market value of these items, use the rules under Determining Fair Market Value , later. Free state income tax Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. Free state income tax 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. Free state income tax Deduction more than $500. Free state income tax   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. Free state income tax 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. Free state income tax Form 1098-C. Free state income tax   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. Free state income tax The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Free state income tax   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453, U. Free state income tax S. Free state income tax 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. Free state income tax   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Free state income tax    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Free state income tax But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Free state income tax Filing deadline approaching and still no Form 1098-C. Free state income tax   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Free state income tax Request an automatic 6-month extension of time to file your return. Free state income tax You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U. Free state income tax S. Free state income tax Individual Income Tax Return. Free state income tax For more information, see the instructions for Form 4868. Free state income tax File the return on time without claiming the deduction for the qualified vehicle. Free state income tax After receiving the Form 1098-C, file an amended return, Form 1040X, Amended U. Free state income tax S. Free state income tax Individual Income Tax Return, claiming the deduction. Free state income tax Attach Copy B of Form 1098-C (or other statement) to the amended return. Free state income tax Exceptions. Free state income tax   There are two exceptions to the rules just described for deductions of more than $500. Free state income tax Exception 1—vehicle used or improved by organization. Free state income tax   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. Free state income tax 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. Free state income tax The Form 1098-C (or other statement) will show whether this exception applies. Free state income tax    Exception 2—vehicle given or sold to needy individual. Free state income tax   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. Free state income tax 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. Free state income tax The Form 1098-C (or other statement) will show whether this exception applies. Free state income tax   This exception does not apply if the organization sells the vehicle at auction. Free state income tax In that case, you cannot deduct the vehicle's fair market value. Free state income tax Example. Free state income tax Anita donates a used car to a qualified organization. Free state income tax She bought it 3 years ago for $9,000. Free state income tax A used car guide shows the fair market value for this type of car is $6,000. Free state income tax However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Free state income tax Neither exception 1 nor exception 2 applies. Free state income tax If Anita itemizes her deductions, she can deduct $2,900 for her donation. Free state income tax She must attach Form 1098-C and Form 8283 to her return. Free state income tax Deduction $500 or less. Free state income tax   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. Free state income tax 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. Free state income tax   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. Free state income tax 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. Free state income tax Fair market value. Free state income tax   To determine a vehicle's fair market value, use the rules described under Determining Fair Market Value , later. Free state income tax Donations of inventory. Free state income tax   The vehicle donation rules just described do not apply to donations of inventory. Free state income tax 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. Free state income tax See Inventory , later. Free state income tax 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. Free state income tax This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property. Free state income tax Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Free state income tax Your basis does not include transportation or travel costs. Free state income tax It also does not include the direct or indirect costs for hunting or killing an animal, such as equipment costs. Free state income tax In addition, it does not include the value of your time. Free state income tax 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. Free state income tax 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. Free state income tax This prevents you from deducting the same amount as both investment interest and a charitable contribution. Free state income tax 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. Free state income tax 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). Free state income tax For more information, see Bargain Sales under Giving Property That Has Increased in Value, later. Free state income tax Partial Interest in Property Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Free state income tax Right to use property. Free state income tax   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Free state income tax Example 1. Free state income tax You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Free state income tax Because you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution. Free state income tax Example 2. Free state income tax Mandy White owns a vacation home at the beach that she sometimes rents to others. Free state income tax For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. Free state income tax 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. Free state income tax Mandy cannot claim a deduction because of the partial interest rule. Free state income tax Lauren cannot claim a deduction either, because she received a benefit equal to the amount of her payment. Free state income tax See Contributions From Which You Benefit , earlier. Free state income tax Exceptions. Free state income tax   You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items. Free state income tax A remainder interest in your personal home or farm. Free state income tax A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property. Free state income tax Example. Free state income tax You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death. Free state income tax You can deduct the value of the remainder interest. Free state income tax An undivided part of your entire interest. Free state income tax 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. Free state income tax But see Fractional Interest in Tangible Personal Property , later. Free state income tax Example. Free state income tax You contribute voting stock to a qualified organization but keep the right to vote the stock. Free state income tax The right to vote is a substantial right in the stock. Free state income tax You have not contributed an undivided part of your entire interest and cannot deduct your contribution. Free state income tax A partial interest that would be deductible if transferred to certain types of trusts. Free state income tax A qualified conservation contribution (defined later). Free state income tax 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. Free state income tax 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. Free state income tax 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. Free state income tax Tangible personal property is defined later under Future Interest in Tangible Personal Property . Free state income tax A fractional interest in property is an undivided portion of your entire interest in the property. Free state income tax Example. Free state income tax 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. Free state income tax Recapture of deduction. Free state income tax   You must recapture your charitable contribution deduction by including it in your income if both of the following statements are true. Free state income tax You contributed a fractional interest in tangible personal property after August 17, 2006. Free state income tax 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. Free state income tax   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. Free state income tax Additional tax. Free state income tax   If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount recaptured. Free state income tax 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. Free state income tax Qualified organization. Free state income tax   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. Free state income tax The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. Free state income tax   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. Free state income tax Qualified real property interest. Free state income tax   This is any of the following interests in real property. Free state income tax 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). Free state income tax A remainder interest. Free state income tax A restriction (granted in perpetuity) on the use that may be made of the real property. Free state income tax Conservation purposes. Free state income tax   Your contribution must be made only for one of the following conservation purposes. Free state income tax Preserving land areas for outdoor recreation by, or for the education of, the general public. Free state income tax Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. Free state income tax Preserving open space, including farmland and forest land, if it yields a significant public benefit. Free state income tax 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. Free state income tax Preserving a historically important land area or a certified historic structure. Free state income tax Building in registered historic district. Free state income tax   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. Free state income tax 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. Free state income tax 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. Free state income tax 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. Free state income tax   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. Free state income tax For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). Free state income tax   If you claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. Free state income tax See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. Free state income tax 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). Free state income tax See Deductions Subject to the 2% Limit in Publication 529 for more information. Free state income tax More information. Free state income tax   For information about determining the fair market value of qualified conservation contributions, see Publication 561. Free state income tax For information about the limits that apply to deductions for this type of contribution, see Limits on Deductions , later. Free state income tax For more information about qualified conservation contributions, see Regulations section 1. Free state income tax 170A-14. Free state income tax 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. Free state income tax But see Fractional Interest in Tangible Personal Property , earlier, and Tangible personal property put to unrelated use , later. Free state income tax Related persons include your spouse, children, grandchildren, brothers, sisters, and parents. Free state income tax 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. Free state income tax Tangible personal property. Free state income tax   This is any property, other than land or buildings, that can be seen or touched. Free state income tax It includes furniture, books, jewelry, paintings, and cars. Free state income tax Future interest. Free state income tax   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. Free state income tax Example. Free state income tax You own an antique car that you contribute to a museum. Free state income tax You give up ownership, but retain the right to keep the car in your garage with your personal collection. Free state income tax Because you keep an interest in the property, you cannot deduct the contribution. Free state income tax 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. Free state income tax 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. Free state income tax 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. Free state income tax You must remove the amount of your charitable contribution deduction from your opening inventory. Free state income tax It is not part of the cost of goods sold. Free state income tax 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. Free state income tax Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Free state income tax For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Free state income tax A special rule applies to certain donations of food inventory. Free state income tax See Food Inventory, later. Free state income tax 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. Free state income tax Intellectual property means any of the following: Patents. Free state income tax Copyrights (other than a copyright described in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)). Free state income tax Trademarks. Free state income tax Trade names. Free state income tax Trade secrets. Free state income tax Know-how. Free state income tax Software (other than software described in Internal Revenue Code section 197(e)(3)(A)(i)). Free state income tax Other similar property or applications or registrations of such property. Free state income tax Additional deduction based on income. Free state income tax   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. Free state income tax   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. Free state income tax In the table, “tax year 1,” for example, means your first tax year ending on or after the date of the contribution. Free state income tax 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. Free state income tax   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. Free state income tax The additional deductions cannot be taken for intellectual property donated to certain private foundations. Free state income tax 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. Free state income tax   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. Free state income tax   The organization is required to file an information return showing the income from the property, with a copy to you. Free state income tax This is done on Form 8899, Notice of Income From Donated Intellectual Property. Free state income tax Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Free state income tax Publication 561 contains a more complete discussion. Free state income tax 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. Free state income tax Used clothing. Free state income tax   The fair market value of used clothing and other personal items is usually far less than the price you paid for them. Free state income tax There are no fixed formulas or methods for finding the value of items of clothing. Free state income tax   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. Free state income tax      Also see Clothing and Household Items , earlier. Free state income tax Example. Free state income tax    Kristin donated a coat to a thrift store operated by her church. Free state income tax She paid $300 for the coat 3 years ago. Free state income tax Similar coats in the thrift store sell for $50. Free state income tax The fair market value of the coat is $50. Free state income tax Kristin's donation is limited to $50. Free state income tax Household items. Free state income tax   The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. Free state income tax These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. Free state income tax For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value. Free state income tax   You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Free state income tax Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Free state income tax Do not include any of this evidence with your tax return. Free state income tax   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. Free state income tax   Also see Clothing and Household Items , earlier. Free state income tax Cars, boats, and airplanes. Free state income tax   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Free state income tax Boats. Free state income tax   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. Free state income tax Cars. Free state income tax   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. Free state income tax The guides may be published monthly or seasonally, and for different regions of the country. Free state income tax These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Free state income tax The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Free state income tax But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Free state income tax   These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. Free state income tax You can also find used car pricing information on the Internet. Free state income tax   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. Free state income tax However, the fair market value may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. Free state income tax 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. Free state income tax Example. Free state income tax You donate a used car in poor condition to a local high school for use by students studying car repair. Free state income tax A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Free state income tax However, the guide shows the price for a private party sale of the car is only $750. Free state income tax The fair market value of the car is considered to be $750. Free state income tax Large quantities. Free state income tax   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. Free state income tax Example. Free state income tax You purchase 500 bibles for $1,000. Free state income tax The person who sells them to you says the retail value of these bibles is $3,000. Free state income tax 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. Free state income tax Your charitable contribution is $1,000, unless you can show that similar numbers of that bible wer