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Hrblock 33. Hrblock   Credit for the Elderly or the Disabled Table of Contents Introduction Useful Items - You may want to see: Are You Eligible for the Credit?Qualified Individual Income Limits How to Claim the CreditCredit Figured for You Credit Figured by You Introduction If you qualify, you may be able to reduce the tax you owe by taking the credit for the elderly or the disabled which is figured on Schedule R (Form 1040A or 1040). Hrblock This chapter explains the following. Hrblock Who qualifies for the credit for the elderly or the disabled. Hrblock How to claim the credit. Hrblock You may be able to take the credit for the elderly or the disabled if: You are age 65 or older at the end of 2013, or You retired on permanent and total disability and have taxable disability income. Hrblock Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 554 Tax Guide for Seniors Form (and Instruction) Schedule R (Form 1040A or 1040) Credit for the Elderly or the Disabled Are You Eligible for the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. Hrblock You are a qualified individual. Hrblock Your income is not more than certain limits. Hrblock You can use Figure 33-A and Table 33-1 as guides to see if you are eligible for the credit. Hrblock Use Figure 33-A first to see if you are a qualified individual. Hrblock If you are, go to Table 33-1 to make sure your income is not too high to take the credit. Hrblock You can take the credit only if you file Form 1040 or Form 1040A. Hrblock You cannot take the credit if you file Form 1040EZ. Hrblock Qualified Individual You are a qualified individual for this credit if you are a U. Hrblock S. Hrblock citizen or resident alien, and either of the following applies. Hrblock You were age 65 or older at the end of 2013. Hrblock You were under age 65 at the end of 2013 and all three of the following statements are true. Hrblock You retired on permanent and total disability (explained later). Hrblock You received taxable disability income for 2013. Hrblock On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). Hrblock Age 65. Hrblock   You are considered to be age 65 on the day before your 65th birthday. Hrblock Therefore, if you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Hrblock U. Hrblock S. Hrblock Citizen or Resident Alien You must be a U. Hrblock S. Hrblock citizen or resident alien (or be treated as a resident alien) to take the credit. Hrblock Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. Hrblock Exceptions. Hrblock   You may be able to take the credit if you are a nonresident alien who is married to a U. Hrblock S. Hrblock citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. Hrblock S. Hrblock resident alien. Hrblock If you make that choice, both you and your spouse are taxed on your worldwide incomes. Hrblock If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. Hrblock S. Hrblock citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. Hrblock S. Hrblock resident alien for the entire year. Hrblock In that case, you may be allowed to take the credit. Hrblock For information on these choices, see chapter 1 of Publication 519, U. Hrblock S. Hrblock Tax Guide for Aliens. Hrblock Married Persons Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. Hrblock However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. Hrblock Head of household. Hrblock   You can file as head of household and qualify to take the credit, even if your spouse lived with you during the first 6 months of the year, if you meet certain tests. Hrblock See Head of Household in chapter 2 for the tests you must meet. Hrblock Under Age 65 If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability (discussed next) and have taxable disability income (discussed later under Disability income ). Hrblock You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the close of the tax year. Hrblock Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. Hrblock If you retired on disability before 1977, and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. Hrblock Permanent and total disability. Hrblock    You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. Hrblock A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. Hrblock See Physician's statement , later. Hrblock Substantial gainful activity. Hrblock   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. Hrblock Full-time work (or part-time work done at your employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. Hrblock   Substantial gainful activity is not work you do to take care of yourself or your home. Hrblock It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. Hrblock However, doing this kind of work may show that you are able to engage in substantial gainful activity. Hrblock    The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. Hrblock Sheltered employment. Hrblock   Certain work offered at qualified locations to physically or mentally impaired persons is considered sheltered employment. Hrblock These qualified locations are in sheltered workshops, hospitals, and similar institutions, homebound programs, and Department of Veterans Affairs (VA) sponsored homes. Hrblock   Compared to commercial employment, pay is lower for sheltered employment. Hrblock Therefore, one usually does not look for sheltered employment if he or she can get other employment. Hrblock The fact that one has accepted sheltered employment is not proof of the person's ability to engage in substantial gainful activity. Hrblock Physician's statement. Hrblock   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. Hrblock You can use the statement in the Instructions for Schedule R. Hrblock    Figure 33-A. Hrblock Are You a Qualified Individual? This image is too large to be displayed in the current screen. Hrblock Please click the link to view the image. Hrblock Figure 33-A Are You a Qualified Individual?   You do not have to file this statement with your Form 1040 or Form 1040A, but you must keep it for your records. Hrblock Veterans. Hrblock   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. Hrblock VA Form 21-0172 must be signed by a person authorized by the VA to do so. Hrblock You can get this form from your local VA regional office. Hrblock Physician's statement obtained in earlier year. Hrblock   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. Hrblock For a detailed explanation of the conditions you must meet, see the instructions for Schedule R, Part II. Hrblock If you meet the required conditions, check the box on your Schedule R, Part II, line 2. Hrblock   If you checked box 4, 5, or 6 in Part I of Schedule R, enter in the space above the box on line 2 in Part II the first name(s) of the spouse(s) for whom the box is checked. Hrblock Table 33-1. Hrblock Income Limits IF your filing status is . Hrblock . Hrblock . Hrblock THEN, even if you qualify (see Figure 33-A ), you CANNOT take the credit if. Hrblock . Hrblock . Hrblock   Your adjusted gross income (AGI)* is equal to or more than. Hrblock . Hrblock . Hrblock     OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. Hrblock . Hrblock . Hrblock   single, head of household, or qualifying widow(er) with dependent child   $17,500     $5,000   married filing jointly and only one spouse qualifies in Figure 33-A   $20,000     $5,000   married filing jointly and both spouses qualify in Figure 33-A   $25,000     $7,500   married filing separately and you lived apart from your spouse for all of 2013   $12,500     $3,750   * AGI is the amount on Form 1040A, line 22, or Form 1040, line 38. Hrblock Disability income. Hrblock   If you are under age 65, you must also have taxable disability income to qualify for the credit. Hrblock Disability income must meet both of the following requirements. Hrblock It must be paid under your employer's accident or health plan or pension plan. Hrblock It must be included in your income as wages (or payments instead of wages) for the time you are absent from work because of permanent and total disability. Hrblock Payments that are not disability income. Hrblock   Any payment you receive from a plan that does not provide for disability retirement is not disability income. Hrblock Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. Hrblock   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. Hrblock Mandatory retirement age is the age set by your employer at which you would have had to retire, had you not become disabled. Hrblock Income Limits To determine if you can claim the credit, you must consider two income limits. Hrblock The first limit is the amount of your adjusted gross income (AGI). Hrblock The second limit is the amount of nontaxable social security and other nontaxable pensions, annuities, or disability income you received. Hrblock The limits are shown in Table 33-1. Hrblock If your AGI and nontaxable pensions, annuities, or disability income are less than the income limits, you may be able to claim the credit. Hrblock See How to Claim the Credit , later. Hrblock If either your AGI or your nontaxable pensions, annuities, or disability income are equal to or more than the income limits, you cannot take the credit. Hrblock How to Claim the Credit You can figure the credit yourself or the Internal Revenue Service will figure it for you. Hrblock Credit Figured for You If you choose to have the IRS figure the credit for you, read the following discussion for the form you will file (Form 1040 or 1040A). Hrblock If you want the IRS to figure your tax, see chapter 30. Hrblock Form 1040. Hrblock   If you want the IRS to figure your credit, see Form 1040 Line Entries under Tax Figured by IRS in chapter 30. Hrblock Form 1040A. Hrblock   If you want the IRS to figure your credit, see Form 1040A Line Entries under Tax Figured by IRS in chapter 30. Hrblock Credit Figured by You If you choose to figure the credit yourself, fill out the front of Schedule R. Hrblock Next, fill out Schedule R, Part III. Hrblock If you file Form 1040A, enter the amount from Schedule R, line 22, on Form 1040A, line 30. Hrblock If you file Form 1040, include the amount from Schedule R, line 22, on line 53; check box c, and enter “Sch R” on the line next to that box. Hrblock For a step-by-step discussion about filling out Part III of Schedule R, see Figuring the Credit Yourself in Publication 524. Hrblock Limit on credit. Hrblock   The amount of the credit you can claim is generally limited to the amount of your tax. Hrblock Use the Credit Limit Worksheet in the Instructions for Schedule R to determine if your credit is limited. Hrblock Prev  Up  Next   Home   More Online Publications
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Hrblock 24. Hrblock   Contributions Table of Contents Introduction Useful Items - You may want to see: Organizations That Qualify To Receive Deductible ContributionsTypes of Qualified Organizations Contributions You Can DeductContributions From Which You Benefit Expenses Paid for Student Living With You Out-of-Pocket Expenses in Giving Services Contributions You Cannot DeductContributions to Individuals Contributions to Nonqualified Organizations Contributions From Which You Benefit Value of Time or Services Personal Expenses Appraisal Fees Contributions of PropertyException. Hrblock Household items. Hrblock Deduction more than $500. Hrblock Form 1098-C. Hrblock Filing deadline approaching and still no Form 1098-C. Hrblock Exception 1—vehicle used or improved by organization. Hrblock Exception 2—vehicle given or sold to needy individual. Hrblock Deduction $500 or less. Hrblock Right to use property. Hrblock Tangible personal property. Hrblock Future interest. Hrblock Determining Fair Market Value Giving Property That Has Decreased in Value Giving Property That Has Increased in Value When To DeductChecks. Hrblock Text message. Hrblock Credit card. Hrblock Pay-by-phone account. Hrblock Stock certificate. Hrblock Promissory note. Hrblock Option. Hrblock Borrowed funds. Hrblock Limits on DeductionsCarryovers Records To KeepCash Contributions Noncash Contributions Out-of-Pocket Expenses How To Report Introduction This chapter explains how to claim a deduction for your charitable contributions. Hrblock It discusses the following topics. Hrblock The types of organizations to which you can make deductible charitable contributions. Hrblock The types of contributions you can deduct. Hrblock How much you can deduct. Hrblock What records you must keep. Hrblock How to report your charitable contributions. Hrblock A charitable contribution is a donation or gift to, or for the use of, a qualified organization. Hrblock It is voluntary and is made without getting, or expecting to get, anything of equal value. Hrblock Form 1040 required. Hrblock    To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. Hrblock The amount of your deduction may be limited if certain rules and limits explained in this chapter apply to you. Hrblock The limits are explained in detail in Publication 526. Hrblock Useful Items - You may want to see: Publication 526 Charitable Contributions 561 Determining the Value of Donated Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 8283 Noncash Charitable Contributions Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if you make them to a qualified organization. Hrblock Most organizations other than churches and governments must apply to the IRS to become a qualified organization. Hrblock How to check whether an organization can receive deductible charitable contributions. Hrblock   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Hrblock Or go to IRS. Hrblock gov. Hrblock Click on “Tools” and then on “Exempt Organizations Select Check” (www. Hrblock irs. Hrblock gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Hrblock This online tool will enable you to search for qualified organizations. Hrblock You can also call the IRS to find out if an organization is qualified. Hrblock Call 1-877-829-5500. Hrblock 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. Hrblock Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Hrblock gsa. Hrblock gov/fedrelay. Hrblock Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Hrblock 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). Hrblock 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. Hrblock Certain organizations that foster national or international amateur sports competition also qualify. Hrblock War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Hrblock Domestic fraternal societies, orders, and associations operating under the lodge system. Hrblock (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. Hrblock ) Certain nonprofit cemetery companies or corporations. Hrblock (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. Hrblock ) The United States or any state, the District of Columbia, a U. Hrblock S. Hrblock possession (including Puerto Rico), a political subdivision of a state or U. Hrblock S. Hrblock possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Hrblock (Your contribution to this type of organization is only deductible if it is to be used solely for public purposes. Hrblock ) Examples. Hrblock    The following list gives some examples of qualified organizations. Hrblock Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Hrblock Most nonprofit charitable organizations such as the American Red Cross and the United Way. Hrblock Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Hrblock 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. Hrblock 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 . Hrblock Nonprofit hospitals and medical research organizations. Hrblock Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Hrblock Nonprofit volunteer fire companies. Hrblock Nonprofit organizations that develop and maintain public parks and recreation facilities. Hrblock Civil defense organizations. Hrblock Certain foreign charitable organizations. Hrblock   Under income tax treaties with Canada, Israel, and Mexico, you may be able to deduct contributions to certain Canadian, Israeli, or Mexican charitable organizations. Hrblock Generally, you must have income from sources in that country. Hrblock For additional information on the deduction of contributions to Canadian charities, see Publication 597, Information on the United States–Canada Income Tax Treaty. Hrblock If you need more information on how to figure your contribution to Mexican and Israeli charities, see Publication 526. Hrblock Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Hrblock 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. Hrblock The contributions must be made to a qualified organization and not set aside for use by a specific person. Hrblock 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. Hrblock See Contributions of Property , later in this chapter. Hrblock 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. Hrblock See Limits on Deductions , later. Hrblock In addition, the total of your charitable contribution deduction and certain other itemized deductions may be limited. Hrblock See chapter 29. Hrblock Table 24-1 gives examples of contributions you can and cannot deduct. Hrblock 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. Hrblock Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Hrblock If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Hrblock For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Hrblock Example 1. Hrblock You pay $65 for a ticket to a dinner-dance at a church. Hrblock Your entire $65 payment goes to the church. Hrblock The ticket to the dinner-dance has a fair market value of $25. Hrblock When you buy your ticket, you know that its value is less than your payment. Hrblock To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Hrblock You can deduct $40 as a contribution to the church. Hrblock Example 2. Hrblock At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Hrblock The amount you pay is no more than the fair rental value. Hrblock You have not made a deductible charitable contribution. Hrblock Athletic events. Hrblock   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. Hrblock   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Hrblock Subtract the price of the tickets from your payment. Hrblock You can deduct 80% of the remaining amount as a charitable contribution. Hrblock Example 1. Hrblock You pay $300 a year for membership in a university's athletic scholarship program. Hrblock 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. Hrblock You can deduct $240 (80% of $300) as a charitable contribution. Hrblock Table 24-1. Hrblock Examples of Charitable Contributions—A Quick Check Use the following lists for a quick check of whether you can deduct a contribution. Hrblock See the rest of this chapter for more information and additional rules and limits that may apply. Hrblock Deductible As  Charitable Contributions Not Deductible  As Charitable Contributions Money or property you give to:  Churches, synagogues, temples, mosques, and other religious organizations Federal, state, and local governments, if your contribution is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park) Nonprofit schools and hospitals The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc. Hrblock War veterans groups   Expenses paid for a student living with you, sponsored by a qualified organization  Out-of-pocket expenses when you serve a qualified organization as a volunteer Money or property you give to:  Civic leagues, social and sports clubs, labor unions, and chambers of commerce Foreign organizations (except certain Canadian, Israeli, and Mexican charities) Groups that are run for personal profit Groups whose purpose is to lobby for law changes Homeowners' associations Individuals Political groups or candidates for public office   Cost of raffle, bingo, or lottery tickets  Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups  Tuition  Value of your time or services  Value of blood given to a blood bank    Example 2. Hrblock 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. Hrblock You must subtract the usual price of a ticket ($120) from your $300 payment. Hrblock The result is $180. Hrblock Your deductible charitable contribution is $144 (80% of $180). Hrblock Charity benefit events. Hrblock   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. Hrblock   If there is an established charge for the event, that charge is the value of your benefit. Hrblock If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Hrblock Whether you use the tickets or other privileges has no effect on the amount you can deduct. Hrblock However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Hrblock    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. Hrblock If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Hrblock Example. Hrblock You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Hrblock Printed on the ticket is “Contribution—$40. Hrblock ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Hrblock Membership fees or dues. Hrblock    You may be able to deduct membership fees or dues you pay to a qualified organization. Hrblock However, you can deduct only the amount that is more than the value of the benefits you receive. Hrblock    You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Hrblock They are not qualified organizations. Hrblock Certain membership benefits can be disregarded. Hrblock   Both you and the organization can disregard the following membership benefits if you receive them in return for an annual payment of $75 or less. Hrblock 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. Hrblock 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. Hrblock 20. Hrblock Token items. Hrblock   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Hrblock You receive only a small item or other benefit of token value. Hrblock 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. Hrblock Written statement. Hrblock   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. Hrblock The statement must say that you can deduct only the amount of your payment that is more than the value of the goods or services you received. Hrblock It must also give you a good faith estimate of the value of those goods or services. Hrblock   The organization can give you the statement either when it solicits or when it receives the payment from you. Hrblock Exception. Hrblock   An organization will not have to give you this statement if one of the following is true. Hrblock 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. Hrblock You receive only items whose value is not substantial as described under Token items , earlier. Hrblock You receive only membership benefits that can be disregarded, as described earlier. Hrblock Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Hrblock You can deduct qualifying expenses for a foreign or American student who: Lives in your home under a written agreement between you and a qualified organization as part of a program of the organization to provide educational opportunities for the student, Is not your relative or dependent, and Is a full-time student in the twelfth or any lower grade at a school in the United States. Hrblock You can deduct up to $50 a month for each full calendar month the student lives with you. Hrblock Any month when conditions (1) through (3) are met for 15 days or more counts as a full month. Hrblock For additional information, see Expenses Paid for Student Living With You in Publication 526. Hrblock Mutual exchange program. Hrblock   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. Hrblock Table 24-2. Hrblock Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Hrblock All of the rules explained in this chapter also apply. Hrblock See, in particular, Out-of-Pocket Expenses in Giving Services . Hrblock Question Answer I volunteer 6 hours a week in the office of a qualified organization. Hrblock The receptionist is paid $10 an hour for the same work. Hrblock Can I deduct $60 a week for my time?    No, you cannot deduct the value of your time or services. Hrblock The office is 30 miles from my home. Hrblock 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. Hrblock If you don't want to figure your actual costs, you can deduct 14 cents for each mile. Hrblock I volunteer as a Red Cross nurse's aide at a hospital. Hrblock 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. Hrblock I pay a babysitter to watch my children while I volunteer for a qualified organization. Hrblock 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. Hrblock (If you have childcare expenses so you can work for pay, see chapter 32. Hrblock ) Out-of-Pocket Expenses in Giving Services Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. Hrblock 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. Hrblock Table 24-2 contains questions and answers that apply to some individuals who volunteer their services. Hrblock Conventions. Hrblock   If a qualified organization selects you to attend a convention as its representative, you can deduct unreimbursed expenses for travel, including reasonable amounts for meals and lodging, while away from home overnight in connection with the convention. Hrblock However, see Travel , later. Hrblock   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Hrblock You also cannot deduct transportation, meals and lodging, and other expenses for your spouse or children. Hrblock    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. Hrblock You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Hrblock Uniforms. Hrblock   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. Hrblock Foster parents. Hrblock   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. Hrblock A qualified organization must select the individuals you take into your home for foster care. Hrblock    You can deduct expenses that meet both of the following requirements. Hrblock They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Hrblock They are incurred primarily to benefit the qualified organization. Hrblock   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. Hrblock For details, see chapter 3. Hrblock Example. Hrblock You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Hrblock Your unreimbursed expenses are not deductible as charitable contributions. Hrblock Car expenses. Hrblock   You can deduct as a charitable contribution any unreimbursed out-of-pocket expenses, such as the cost of gas and oil, that are directly related to the use of your car in giving services to a charitable organization. Hrblock You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Hrblock    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. Hrblock   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Hrblock   You must keep reliable written records of your car expenses. Hrblock For more information, see Car expenses under Records To Keep, later. Hrblock Travel. Hrblock   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. Hrblock This applies whether you pay the expenses directly or indirectly. Hrblock You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Hrblock   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Hrblock 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. Hrblock 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. Hrblock Example 1. Hrblock You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Hrblock You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Hrblock You participate in the activities of the group and enjoy your time with them. Hrblock You oversee the breaking of camp and you transport the group home. Hrblock You can deduct your travel expenses. Hrblock Example 2. Hrblock You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Hrblock The project is sponsored by a charitable organization. Hrblock In most circumstances, you cannot deduct your expenses. Hrblock Example 3. Hrblock You work for several hours each morning on an archaeological dig sponsored by a charitable organization. Hrblock The rest of the day is free for recreation and sightseeing. Hrblock You cannot take a charitable contribution deduction even though you work very hard during those few hours. Hrblock Example 4. Hrblock You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Hrblock In the evening you go to the theater. Hrblock You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Hrblock Daily allowance (per diem). Hrblock   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. Hrblock You may be able to deduct any necessary travel expenses that are more than the allowance. Hrblock Deductible travel expenses. Hrblock   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. Hrblock Because these travel expenses are not business-related, they are not subject to the same limits as business-related expenses. Hrblock For information on business travel expenses, see Travel Expenses in chapter 26. Hrblock Contributions You Cannot Deduct There are some contributions you cannot deduct, such as those made to specific individuals and those made to nonqualified organizations. Hrblock (See Contributions to Individuals and Contributions to Nonqualified Organizations , next. Hrblock ) There are others you can deduct only part of, as discussed later under Contributions From Which You Benefit . Hrblock Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Hrblock Contributions to fraternal societies made for the purpose of paying medical or burial expenses of deceased members. Hrblock Contributions to individuals who are needy or worthy. Hrblock You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Hrblock 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. Hrblock Example. Hrblock You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Hrblock However, you cannot deduct contributions earmarked for relief of a particular individual or family. Hrblock Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Hrblock Expenses you paid for another person who provided services to a qualified organization. Hrblock Example. Hrblock Your son does missionary work. Hrblock You pay his expenses. Hrblock You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Hrblock Payments to a hospital that are for a specific patient's care or for services for a specific patient. Hrblock You cannot deduct these payments even if the hospital is operated by a city, a state, or other qualified organization. Hrblock Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Hrblock 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. Hrblock Chambers of commerce and other business leagues or organizations (but see chapter 28). Hrblock Civic leagues and associations. Hrblock Communist organizations. Hrblock Country clubs and other social clubs. Hrblock Most foreign organizations (other than certain Canadian, Israeli, or Mexican charitable organizations). Hrblock For details, see Publication 526. Hrblock Homeowners' associations. Hrblock Labor unions (but see chapter 28). Hrblock Political organizations and candidates. Hrblock 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. Hrblock See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Hrblock These contributions include the following. Hrblock Contributions for lobbying. Hrblock This includes amounts that you earmark for use in, or in connection with, influencing specific legislation. Hrblock Contributions to a retirement home for room, board, maintenance, or admittance. Hrblock Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Hrblock Costs of raffles, bingo, lottery, etc. Hrblock 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. Hrblock For information on how to report gambling winnings and losses, see Gambling winnings in chapter 12 and Gambling Losses Up to the Amount of Gambling Winnings in chapter 28. Hrblock Dues to fraternal orders and similar groups. Hrblock However, see Membership fees or dues , earlier, under Contributions You Can Deduct. Hrblock Tuition, or amounts you pay instead of tuition. Hrblock 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. Hrblock 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. Hrblock ” 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. Hrblock Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Hrblock 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. Hrblock Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final (but see Adoption Credit in chapter 37, and the instructions for Form 8839, Qualified Adoption Expenses). Hrblock You also may be able to claim an exemption for the child. Hrblock See Adopted child in chapter 3. Hrblock Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property (but see chapter 28). Hrblock 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. Hrblock However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Hrblock See Giving Property That Has Increased in Value , later. Hrblock 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. Hrblock Clothing and household items. Hrblock   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. Hrblock Exception. Hrblock   You can take a deduction for a contribution of an item of clothing or household item that is not in good used condition or better if you deduct more than $500 for it and include a qualified appraisal of it with your return. Hrblock Household items. Hrblock   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Hrblock   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Hrblock Cars, boats, and airplanes. Hrblock    The following rules apply to any donation of a qualified vehicle. Hrblock 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. Hrblock Deduction more than $500. Hrblock   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. Hrblock 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. Hrblock Form 1098-C. Hrblock   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. Hrblock The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Hrblock   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453 and mail the forms to the IRS, or Include Copy B of Form 1098-C as a pdf attachment if your software program allows it. Hrblock   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Hrblock    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Hrblock But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Hrblock Filing deadline approaching and still no Form 1098-C. Hrblock   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Hrblock Request an automatic 6-month extension of time to file your return. Hrblock You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Hrblock S. Hrblock Individual Income Tax Return. Hrblock  For more information, see Automatic Extension in chapter 1. Hrblock File the return on time without claiming the deduction for the qualified vehicle. Hrblock After receiving the Form 1098-C, file an amended return, Form 1040X, claiming the deduction. Hrblock Attach Copy B of Form 1098-C (or other statement) to the amended return. Hrblock For more information about amended returns, see Amended Returns and Claims for Refund in chapter 1. Hrblock Exceptions. Hrblock   There are two exceptions to the rules just described for deductions of more than $500. Hrblock Exception 1—vehicle used or improved by organization. Hrblock   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. Hrblock 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. Hrblock The Form 1098-C (or other statement) will show whether this exception applies. Hrblock Exception 2—vehicle given or sold to needy individual. Hrblock   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. Hrblock 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. Hrblock The Form 1098-C (or other statement) will show whether this exception applies. Hrblock   This exception does not apply if the organization sells the vehicle at auction. Hrblock In that case, you cannot deduct the vehicle's fair market value. Hrblock Example. Hrblock Anita donates a used car to a qualified organization. Hrblock She bought it 3 years ago for $9,000. Hrblock A used car guide shows the fair market value for this type of car is $6,000. Hrblock However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Hrblock Neither exception 1 nor exception 2 applies. Hrblock If Anita itemizes her deductions, she can deduct $2,900 for her donation. Hrblock She must attach Form 1098-C and Form 8283 to her return. Hrblock Deduction $500 or less. Hrblock   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. Hrblock 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. Hrblock   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. Hrblock The statement must contain the information and meet the tests for an acknowledgment described under Deductions of At Least $250 But Not More Than $500 under Records To Keep, later. Hrblock Partial interest in property. Hrblock   Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Hrblock Right to use property. Hrblock   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Hrblock For exceptions and more information, see Partial Interest in Property Not in Trust in Publication 561. Hrblock Future interests in tangible personal property. Hrblock   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. Hrblock Tangible personal property. Hrblock   This is any property, other than land or buildings, that can be seen or touched. Hrblock It includes furniture, books, jewelry, paintings, and cars. Hrblock Future interest. Hrblock   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. Hrblock Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Hrblock Publication 561 contains a more complete discussion. Hrblock 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. Hrblock Used clothing and household items. Hrblock   The fair market value of used clothing and household goods is usually far less than what you paid for them when they were new. Hrblock   For used clothing, you should claim as the value the price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops. Hrblock See Household Goods in Publication 561 for information on the valuation of household goods, such as furniture, appliances, and linens. Hrblock Example. Hrblock Dawn Greene donated a coat to a thrift store operated by her church. Hrblock She paid $300 for the coat 3 years ago. Hrblock Similar coats in the thrift store sell for $50. Hrblock The fair market value of the coat is $50. Hrblock Dawn's donation is limited to $50. Hrblock Cars, boats, and airplanes. Hrblock   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Hrblock 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. Hrblock The guides may be published monthly or seasonally and for different regions of the country. Hrblock These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Hrblock The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Hrblock But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Hrblock   You can also find used car pricing information on the Internet. Hrblock Example. Hrblock You donate a used car in poor condition to a local high school for use by students studying car repair. Hrblock A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Hrblock However, the guide shows the price for a private party sale of the car is only $750. Hrblock The fair market value of the car is considered to be $750. Hrblock Large quantities. Hrblock   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. Hrblock Giving Property That Has Decreased in Value If you contribute property with a fair market value that is less than your basis in it, your deduction is limited to its fair market value. Hrblock You cannot claim a deduction for the difference between the property's basis and its fair market value. Hrblock Giving Property That Has Increased in Value If you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. Hrblock Your basis in property is generally what you paid for it. Hrblock See chapter 13 if you need more information about basis. Hrblock Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. Hrblock Ordinary income property. Hrblock   Property is ordinary income property if you would have recognized ordinary income or short-term capital gain had you sold it at fair market value on the date it was contributed. Hrblock Examples of ordinary income property are inventory, works of art created by the donor, manuscripts prepared by the donor, and capital assets (defined in chapter 14) held 1 year or less. Hrblock Amount of deduction. Hrblock   The amount you can deduct for a contribution of ordinary income property is its fair market value minus the amount that would be ordinary income or short-term capital gain if you sold the property for its fair market value. Hrblock Generally, this rule limits the deduction to your basis in the property. Hrblock Example. Hrblock You donate stock you held for 5 months to your church. Hrblock The fair market value of the stock on the day you donate it is $1,000, but you paid only $800 (your basis). Hrblock Because the $200 of appreciation would be short-term capital gain if you sold the stock, your deduction is limited to $800 (fair market value minus the appreciation). Hrblock Capital gain property. Hrblock   Property is capital gain property if you would have recognized long-term capital gain had you sold it at fair market value on the date of the contribution. Hrblock It includes capital assets held more than 1 year, as well as certain real property and depreciable property used in your trade or business and, generally, held more than 1 year. Hrblock Amount of deduction — general rule. Hrblock   When figuring your deduction for a contribution of capital gain property, you generally can use the fair market value of the property. Hrblock Exceptions. Hrblock   In certain situations, you must reduce the fair market value by any amount that would have been long-term capital gain if you had sold the property for its fair market value. Hrblock Generally, this means reducing the fair market value to the property's cost or other basis. Hrblock Bargain sales. Hrblock   A bargain sale of property is a sale or exchange for less than the property's fair market value. Hrblock A bargain sale to a qualified organization is partly a charitable contribution and partly a sale or exchange. Hrblock A bargain sale may result in a taxable gain. Hrblock More information. Hrblock   For more information on donating appreciated property, see Giving Property That Has Increased in Value in Publication 526. Hrblock When To Deduct You can deduct your contributions only in the year you actually make them in cash or other property (or in a later carryover year, as explained later under Carryovers ). Hrblock This applies whether you use the cash or an accrual method of accounting. Hrblock Time of making contribution. Hrblock   Usually, you make a contribution at the time of its unconditional delivery. Hrblock Checks. Hrblock   A check you mail to a charity is considered delivered on the date you mail it. Hrblock Text message. Hrblock   Contributions made by text message are deductible in the year you send the text message if the contribution is charged to your telephone or wireless account. Hrblock Credit card. Hrblock    Contributions charged on your credit card are deductible in the year you make the charge. Hrblock Pay-by-phone account. Hrblock    Contributions made through a pay-by-phone account are considered delivered on the date the financial institution pays the amount. Hrblock Stock certificate. Hrblock   A properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity or to the charity's agent. Hrblock However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the charity, your contribution is not delivered until the date the stock is transferred on the books of the corporation. Hrblock Promissory note. Hrblock   If you issue and deliver a promissory note to a charity as a contribution, it is not a contribution until you make the note payments. Hrblock Option. Hrblock    If you grant a charity an option to buy real property at a bargain price, it is not a contribution until the organization exercises the option. Hrblock Borrowed funds. Hrblock   If you contribute borrowed funds, you can deduct the contribution in the year you deliver the funds to the charity, regardless of when you repay the loan. Hrblock Limits on Deductions The amount you can deduct for charitable contributions cannot be more than 50% of your adjusted gross income (AGI). Hrblock Your deduction may be further limited to 30% or 20% of your AGI, depending on the type of property you give and the type of organization you give it to. Hrblock If your total contributions for the year are 20% or less of your AGI, these limits do not apply to you. Hrblock The limits are discussed in detail under Limits on Deductions in Publication 526. Hrblock A higher limit applies to certain qualified conservation contributions. Hrblock See Publication 526 for details. Hrblock Carryovers You can carry over any contributions you cannot deduct in the current year because they exceed your adjusted-gross-income limits. Hrblock You can deduct the excess in each of the next 5 years until it is used up, but not beyond that time. Hrblock For more information, see Carryovers in Publication 526. Hrblock Records To Keep You must keep records to prove the amount of the contributions you make during the year. Hrblock The kind of records you must keep depends on the amount of your contributions and whether they are: Cash contributions, Noncash contributions, or Out-of-pocket expenses when donating your services. Hrblock Note. Hrblock An organization generally must give you a written statement if it receives a payment from you that is more than $75 and is partly a contribution and partly for goods or services. Hrblock (See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Hrblock ) Keep the statement for your records. Hrblock It may satisfy all or part of the recordkeeping requirements explained in the following discussions. Hrblock Cash Contributions Cash contributions include those paid by cash, check, electronic funds transfer, debit card, credit card, or payroll deduction. Hrblock You cannot deduct a cash contribution, regardless of the amount, unless you keep one of the following. Hrblock A bank record that shows the name of the qualified organization, the date of the contribution, and the amount of the contribution. Hrblock Bank records may include: A canceled check, A bank or credit union statement, or A credit card statement. Hrblock A receipt (or a letter or other written communication) from the qualified organization showing the name of the organization, the date of the contribution, and the amount of the contribution. Hrblock The payroll deduction records described next. Hrblock Payroll deductions. Hrblock   If you make a contribution by payroll deduction, you must keep: A pay stub, Form W-2, or other document furnished by your employer that shows the date and amount of the contribution, and A pledge card or other document prepared by or for the qualified organization that shows the name of the organization. Hrblock If your employer withheld $250 or more from a single paycheck, see Contributions of $250 or More , next. Hrblock Contributions of $250 or More You can claim a deduction for a contribution of $250 or more only if you have an acknowledgment of your contribution from the qualified organization or certain payroll deduction records. Hrblock If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that lists each contribution and the date of each contribution and shows your total contributions. Hrblock Amount of contribution. Hrblock   In figuring whether your contribution is $250 or more, do not combine separate contributions. Hrblock For example, if you gave your church $25 each week, your weekly payments do not have to be combined. Hrblock Each payment is a separate contribution. Hrblock   If contributions are made by payroll deduction, the deduction from each paycheck is treated as a separate contribution. Hrblock   If you made a payment that is partly for goods and services, as described earlier under Contributions From Which You Benefit , your contribution is the amount of the payment that is more than the value of the goods and services. Hrblock Acknowledgment. Hrblock   The acknowledgment must meet these tests. Hrblock It must be written. Hrblock It must include: The amount of cash you contributed, Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), A description and good faith estimate of the value of any goods or services described in (b) (other than intangible religious benefits), and A statement that the only benefit you received was an intangible religious benefit, if that was the case. Hrblock The acknowledgment does not need to describe or estimate the value of an intangible religious benefit. Hrblock An intangible religious benefit is a benefit that generally is not sold in commercial transactions outside a donative (gift) context. Hrblock An example is admission to a religious ceremony. Hrblock You must get it on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Hrblock   If the acknowledgment does not show the date of the contribution, you must also have a bank record or receipt, as described earlier, that does show the date of the contribution. Hrblock If the acknowledgment shows the date of the contribution and meets the other tests just described, you do not need any other records. Hrblock Payroll deductions. Hrblock   If you make a contribution by payroll deduction and your employer withholds $250 or more from a single paycheck, you must keep: A pay stub, Form W-2, or other document furnished by your employer that shows the amount withheld as a contribution, and A pledge card or other document prepared by or for the qualified organization that shows the name of the organization and states the organization does not provide goods or services in return for any contribution made to it by payroll deduction. Hrblock A single pledge card may be kept for all contributions made by payroll deduction regardless of amount as long as it contains all the required information. Hrblock   If the pay stub, Form W-2, pledge card, or other document does not show the date of the contribution, you must have another document that does show the date of the contribution. Hrblock If the pay stub, Form W-2, pledge card, or other document shows the date of the contribution, you do not need any other records except those just described in (1) and (2). Hrblock Noncash Contributions For a contribution not made in cash, the records you must keep depend on whether your deduction for the contribution is: Less than $250, At least $250 but not more than $500, Over $500 but not more than $5,000, or Over $5,000. Hrblock Amount of deduction. Hrblock   In figuring whether your deduction is $500 or more, combine your claimed deductions for all similar items of property donated to any charitable organization during the year. Hrblock   If you received goods or services in return, as described earlier in Contributions From Which You Benefit , reduce your contribution by the value of those goods or services. Hrblock If you figure your deduction by reducing the fair market value of the donated property by its appreciation, as described earlier in Giving Property That Has Increased in Value , your contribution is the reduced amount. Hrblock Deductions of Less Than $250 If you make any noncash contribution, you must get and keep a receipt from the charitable organization showing: The name of the charitable organization, The date and location of the charitable contribution, and A reasonably detailed description of the property. Hrblock A letter or other written communication from the charitable organization acknowledging receipt of the contribution and containing the information in (1), (2), and (3) will serve as a receipt. Hrblock You are not required to have a receipt where it is impractical to get one (for example, if you leave property at a charity's unattended drop site). Hrblock Additional records. Hrblock   You must also keep reliable written records for each item of contributed property. Hrblock Your written records must include the following information. Hrblock The name and address of the organization to which you contributed. Hrblock The date and location of the contribution. Hrblock A description of the property in detail reasonable under the circumstances. Hrblock For a security, keep the name of the issuer, the type of security, and whether it is regularly traded on a stock exchange or in an over-the-counter market. Hrblock The fair market value of the property at the time of the contribution and how you figured the fair market value. Hrblock If it was determined by appraisal, keep a signed copy of the appraisal. Hrblock The cost or other basis of the property, if you must reduce its fair market value by appreciation. Hrblock Your records should also include the amount of the reduction and how you figured it. Hrblock The amount you claim as a deduction for the tax year as a result of the contribution, if you contribute less than your entire interest in the property during the tax year. Hrblock Your records must include the amount you claimed as a deduction in any earlier years for contributions of other interests in this property. Hrblock They must also include the name and address of each organization to which you contributed the other interests, the place where any such tangible property is located or kept, and the name of any person in possession of the property, other than the organization to which you contributed it. Hrblock The terms of any conditions attached to the contribution of property. Hrblock Deductions of At Least $250 But Not More Than $500 If you claim a deduction of at least $250 but not more than $500 for a noncash charitable contribution, you must get and keep an acknowledgment of your contribution from the qualified organization. Hrblock If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that shows your total contributions. Hrblock The acknowledgment must contain the information in items (1) through (3) under Deductions of Less Than $250 , earlier, and your written records must include the information listed in that discussion under Additional records . Hrblock The acknowledgment must also meet these tests. Hrblock It must be written. Hrblock It must include: A description (but not necessarily the value) of any property you contributed, Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), and A description and good faith estimate of the value of any goods or services described in (b). Hrblock If the only benefit you received was an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in a commercial transaction outside the donative context, the acknowledgment must say so and does not need to describe or estimate the value of the benefit. Hrblock You must get it on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Hrblock Deductions Over $500 You are required to give additional information if you claim a deduction over $500 for noncash charitable contributions. Hrblock See Records To Keep in Publication 526 for more information. Hrblock Out-of-Pocket Expenses If you give services to a qualified organization and have unreimbursed out-of-pocket expenses related to those services, the following two rules apply. Hrblock You must have adequate records to prove the amount of the expenses. Hrblock If any of your unreimbursed out-of-pocket expenses, considered separately, are $250 or more (for example, you pay $250 or more for an airline ticket to attend a convention of a qualified organization as a chosen representative), you must get an acknowledgment from the qualified organization that contains: A description of the services you provided, A statement of whether or not the organization provided you any goods or services to reimburse you for the expenses you incurred, A description and a good faith estimate of the value of any goods or services (other than intangible religious benefits) provided to reimburse you, and A statement that the only benefit you received was an intangible religious benefit, if that was the case. Hrblock The acknowledgment does not need to describe or estimate the value of an intangible religious benefit (defined earlier under Acknowledgment ). Hrblock You must get the acknowledgment on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Hrblock Car expenses. Hrblock   If you claim expenses directly related to use of your car in giving services to a qualified organization, you must keep reliable written records of your expenses. Hrblock Whether your records are considered reliable depends on all the facts and circumstances. Hrblock Generally, they may be considered reliable if you made them regularly and at or near the time you had the expenses. Hrblock   For example, your records might show the name of the organization you were serving and the dates you used your car for a charitable purpose. Hrblock If you use the standard mileage rate of 14 cents a mile, your records must show the miles you drove your car for the charitable purpose. Hrblock If you deduct your actual expenses, your records must show the costs of operating the car that are directly related to a charitable purpose. Hrblock   See Car expenses under Out-of-Pocket Expenses in Giving Services, earlier, for the expenses you can deduct. Hrblock How To Report Report your charitable contributions on Schedule A (Form 1040). Hrblock If your total deduction for all noncash contributions for the year is over $500, you must also file Form 8283. Hrblock See How To Report in Publication 526 for more information. Hrblock Prev  Up  Next   Home   More Online Publications