File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Irs Forms 1040ez

1040x Form And InstructionsHow To File An Amended Tax Return For 2012How To File State Taxes For Free OnlineFiling 1040ez1040 Ez 20121040nr Ez Online FilingH&r Block Tax FreeIrs Tax Forms 2011 DownloadI Need To File My State Taxes OnlyFiling 2011 Tax Return In 20132013 Federal 1040ez Form2009 Tax Return FormsFree 2007 Tax Software1040 Form For 2010Amended Tax Form 20122011 Irs Tax Forms AvailableFree State E File TaxesFree Tax Filing For Low Income FamiliesHow Can I File 2010 TaxesMyfreetaxes Com TaxtimeTaxact2011online10ezWhere To Do State Taxes Free OnlineIrs Ez File OnlineFile 1040x2009 Tax FormFreetaxH&r Block Free TaxHow To Make A Tax Amendment2012 Tax ReturnI Need To Print A 1040ez FormFile State Federal Taxes Free2011 Tax PreparationUnited Way Free Tax PreparationNj 1040xI Need A 1040x FormHow To File A 2011 Tax Return LateFile Prior Years Tax ReturnsFile 2011 Taxes TurbotaxForm1040

Irs Forms 1040ez

Irs forms 1040ez 24. Irs forms 1040ez   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. Irs forms 1040ez Household items. Irs forms 1040ez Deduction more than $500. Irs forms 1040ez Form 1098-C. Irs forms 1040ez Filing deadline approaching and still no Form 1098-C. Irs forms 1040ez Exception 1—vehicle used or improved by organization. Irs forms 1040ez Exception 2—vehicle given or sold to needy individual. Irs forms 1040ez Deduction $500 or less. Irs forms 1040ez Right to use property. Irs forms 1040ez Tangible personal property. Irs forms 1040ez Future interest. Irs forms 1040ez Determining Fair Market Value Giving Property That Has Decreased in Value Giving Property That Has Increased in Value When To DeductChecks. Irs forms 1040ez Text message. Irs forms 1040ez Credit card. Irs forms 1040ez Pay-by-phone account. Irs forms 1040ez Stock certificate. Irs forms 1040ez Promissory note. Irs forms 1040ez Option. Irs forms 1040ez Borrowed funds. Irs forms 1040ez 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. Irs forms 1040ez It discusses the following topics. Irs forms 1040ez The types of organizations to which you can make deductible charitable contributions. Irs forms 1040ez The types of contributions you can deduct. Irs forms 1040ez How much you can deduct. Irs forms 1040ez What records you must keep. Irs forms 1040ez How to report your charitable contributions. Irs forms 1040ez A charitable contribution is a donation or gift to, or for the use of, a qualified organization. Irs forms 1040ez It is voluntary and is made without getting, or expecting to get, anything of equal value. Irs forms 1040ez Form 1040 required. Irs forms 1040ez    To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. Irs forms 1040ez The amount of your deduction may be limited if certain rules and limits explained in this chapter apply to you. Irs forms 1040ez The limits are explained in detail in Publication 526. Irs forms 1040ez 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. Irs forms 1040ez Most organizations other than churches and governments must apply to the IRS to become a qualified organization. Irs forms 1040ez How to check whether an organization can receive deductible charitable contributions. Irs forms 1040ez   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Irs forms 1040ez Or go to IRS. Irs forms 1040ez gov. Irs forms 1040ez Click on “Tools” and then on “Exempt Organizations Select Check” (www. Irs forms 1040ez irs. Irs forms 1040ez gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Irs forms 1040ez This online tool will enable you to search for qualified organizations. Irs forms 1040ez You can also call the IRS to find out if an organization is qualified. Irs forms 1040ez Call 1-877-829-5500. Irs forms 1040ez 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. Irs forms 1040ez Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Irs forms 1040ez gsa. Irs forms 1040ez gov/fedrelay. Irs forms 1040ez Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Irs forms 1040ez 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). Irs forms 1040ez 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. Irs forms 1040ez Certain organizations that foster national or international amateur sports competition also qualify. Irs forms 1040ez War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Irs forms 1040ez Domestic fraternal societies, orders, and associations operating under the lodge system. Irs forms 1040ez (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. Irs forms 1040ez ) Certain nonprofit cemetery companies or corporations. Irs forms 1040ez (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. Irs forms 1040ez ) The United States or any state, the District of Columbia, a U. Irs forms 1040ez S. Irs forms 1040ez possession (including Puerto Rico), a political subdivision of a state or U. Irs forms 1040ez S. Irs forms 1040ez possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Irs forms 1040ez (Your contribution to this type of organization is only deductible if it is to be used solely for public purposes. Irs forms 1040ez ) Examples. Irs forms 1040ez    The following list gives some examples of qualified organizations. Irs forms 1040ez Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Irs forms 1040ez Most nonprofit charitable organizations such as the American Red Cross and the United Way. Irs forms 1040ez Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Irs forms 1040ez 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. Irs forms 1040ez 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 . Irs forms 1040ez Nonprofit hospitals and medical research organizations. Irs forms 1040ez Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Irs forms 1040ez Nonprofit volunteer fire companies. Irs forms 1040ez Nonprofit organizations that develop and maintain public parks and recreation facilities. Irs forms 1040ez Civil defense organizations. Irs forms 1040ez Certain foreign charitable organizations. Irs forms 1040ez   Under income tax treaties with Canada, Israel, and Mexico, you may be able to deduct contributions to certain Canadian, Israeli, or Mexican charitable organizations. Irs forms 1040ez Generally, you must have income from sources in that country. Irs forms 1040ez For additional information on the deduction of contributions to Canadian charities, see Publication 597, Information on the United States–Canada Income Tax Treaty. Irs forms 1040ez If you need more information on how to figure your contribution to Mexican and Israeli charities, see Publication 526. Irs forms 1040ez Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Irs forms 1040ez 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. Irs forms 1040ez The contributions must be made to a qualified organization and not set aside for use by a specific person. Irs forms 1040ez 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. Irs forms 1040ez See Contributions of Property , later in this chapter. Irs forms 1040ez 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. Irs forms 1040ez See Limits on Deductions , later. Irs forms 1040ez In addition, the total of your charitable contribution deduction and certain other itemized deductions may be limited. Irs forms 1040ez See chapter 29. Irs forms 1040ez Table 24-1 gives examples of contributions you can and cannot deduct. Irs forms 1040ez 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. Irs forms 1040ez Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Irs forms 1040ez If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Irs forms 1040ez For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Irs forms 1040ez Example 1. Irs forms 1040ez You pay $65 for a ticket to a dinner-dance at a church. Irs forms 1040ez Your entire $65 payment goes to the church. Irs forms 1040ez The ticket to the dinner-dance has a fair market value of $25. Irs forms 1040ez When you buy your ticket, you know that its value is less than your payment. Irs forms 1040ez To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Irs forms 1040ez You can deduct $40 as a contribution to the church. Irs forms 1040ez Example 2. Irs forms 1040ez At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Irs forms 1040ez The amount you pay is no more than the fair rental value. Irs forms 1040ez You have not made a deductible charitable contribution. Irs forms 1040ez Athletic events. Irs forms 1040ez   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. Irs forms 1040ez   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Irs forms 1040ez Subtract the price of the tickets from your payment. Irs forms 1040ez You can deduct 80% of the remaining amount as a charitable contribution. Irs forms 1040ez Example 1. Irs forms 1040ez You pay $300 a year for membership in a university's athletic scholarship program. Irs forms 1040ez 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. Irs forms 1040ez You can deduct $240 (80% of $300) as a charitable contribution. Irs forms 1040ez Table 24-1. Irs forms 1040ez Examples of Charitable Contributions—A Quick Check Use the following lists for a quick check of whether you can deduct a contribution. Irs forms 1040ez See the rest of this chapter for more information and additional rules and limits that may apply. Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez You must subtract the usual price of a ticket ($120) from your $300 payment. Irs forms 1040ez The result is $180. Irs forms 1040ez Your deductible charitable contribution is $144 (80% of $180). Irs forms 1040ez Charity benefit events. Irs forms 1040ez   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. Irs forms 1040ez   If there is an established charge for the event, that charge is the value of your benefit. Irs forms 1040ez If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Irs forms 1040ez Whether you use the tickets or other privileges has no effect on the amount you can deduct. Irs forms 1040ez However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Irs forms 1040ez    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. Irs forms 1040ez If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Irs forms 1040ez Example. Irs forms 1040ez You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Irs forms 1040ez Printed on the ticket is “Contribution—$40. Irs forms 1040ez ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Irs forms 1040ez Membership fees or dues. Irs forms 1040ez    You may be able to deduct membership fees or dues you pay to a qualified organization. Irs forms 1040ez However, you can deduct only the amount that is more than the value of the benefits you receive. Irs forms 1040ez    You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Irs forms 1040ez They are not qualified organizations. Irs forms 1040ez Certain membership benefits can be disregarded. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez 20. Irs forms 1040ez Token items. Irs forms 1040ez   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Irs forms 1040ez You receive only a small item or other benefit of token value. Irs forms 1040ez 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. Irs forms 1040ez Written statement. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez It must also give you a good faith estimate of the value of those goods or services. Irs forms 1040ez   The organization can give you the statement either when it solicits or when it receives the payment from you. Irs forms 1040ez Exception. Irs forms 1040ez   An organization will not have to give you this statement if one of the following is true. Irs forms 1040ez 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. Irs forms 1040ez You receive only items whose value is not substantial as described under Token items , earlier. Irs forms 1040ez You receive only membership benefits that can be disregarded, as described earlier. Irs forms 1040ez Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Irs forms 1040ez 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. Irs forms 1040ez You can deduct up to $50 a month for each full calendar month the student lives with you. Irs forms 1040ez Any month when conditions (1) through (3) are met for 15 days or more counts as a full month. Irs forms 1040ez For additional information, see Expenses Paid for Student Living With You in Publication 526. Irs forms 1040ez Mutual exchange program. Irs forms 1040ez   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. Irs forms 1040ez Table 24-2. Irs forms 1040ez Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Irs forms 1040ez All of the rules explained in this chapter also apply. Irs forms 1040ez See, in particular, Out-of-Pocket Expenses in Giving Services . Irs forms 1040ez Question Answer I volunteer 6 hours a week in the office of a qualified organization. Irs forms 1040ez The receptionist is paid $10 an hour for the same work. Irs forms 1040ez Can I deduct $60 a week for my time?    No, you cannot deduct the value of your time or services. Irs forms 1040ez The office is 30 miles from my home. Irs forms 1040ez 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. Irs forms 1040ez If you don't want to figure your actual costs, you can deduct 14 cents for each mile. Irs forms 1040ez I volunteer as a Red Cross nurse's aide at a hospital. Irs forms 1040ez 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. Irs forms 1040ez I pay a babysitter to watch my children while I volunteer for a qualified organization. Irs forms 1040ez 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. Irs forms 1040ez (If you have childcare expenses so you can work for pay, see chapter 32. Irs forms 1040ez ) 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. Irs forms 1040ez 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. Irs forms 1040ez Table 24-2 contains questions and answers that apply to some individuals who volunteer their services. Irs forms 1040ez Conventions. Irs forms 1040ez   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. Irs forms 1040ez However, see Travel , later. Irs forms 1040ez   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Irs forms 1040ez You also cannot deduct transportation, meals and lodging, and other expenses for your spouse or children. Irs forms 1040ez    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. Irs forms 1040ez You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Irs forms 1040ez Uniforms. Irs forms 1040ez   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. Irs forms 1040ez Foster parents. Irs forms 1040ez   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. Irs forms 1040ez A qualified organization must select the individuals you take into your home for foster care. Irs forms 1040ez    You can deduct expenses that meet both of the following requirements. Irs forms 1040ez They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Irs forms 1040ez They are incurred primarily to benefit the qualified organization. Irs forms 1040ez   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. Irs forms 1040ez For details, see chapter 3. Irs forms 1040ez Example. Irs forms 1040ez You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Irs forms 1040ez Your unreimbursed expenses are not deductible as charitable contributions. Irs forms 1040ez Car expenses. Irs forms 1040ez   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. Irs forms 1040ez You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Irs forms 1040ez    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. Irs forms 1040ez   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Irs forms 1040ez   You must keep reliable written records of your car expenses. Irs forms 1040ez For more information, see Car expenses under Records To Keep, later. Irs forms 1040ez Travel. Irs forms 1040ez   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. Irs forms 1040ez This applies whether you pay the expenses directly or indirectly. Irs forms 1040ez You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Irs forms 1040ez   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez Example 1. Irs forms 1040ez You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Irs forms 1040ez You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Irs forms 1040ez You participate in the activities of the group and enjoy your time with them. Irs forms 1040ez You oversee the breaking of camp and you transport the group home. Irs forms 1040ez You can deduct your travel expenses. Irs forms 1040ez Example 2. Irs forms 1040ez You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Irs forms 1040ez The project is sponsored by a charitable organization. Irs forms 1040ez In most circumstances, you cannot deduct your expenses. Irs forms 1040ez Example 3. Irs forms 1040ez You work for several hours each morning on an archaeological dig sponsored by a charitable organization. Irs forms 1040ez The rest of the day is free for recreation and sightseeing. Irs forms 1040ez You cannot take a charitable contribution deduction even though you work very hard during those few hours. Irs forms 1040ez Example 4. Irs forms 1040ez You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Irs forms 1040ez In the evening you go to the theater. Irs forms 1040ez You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Irs forms 1040ez Daily allowance (per diem). Irs forms 1040ez   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. Irs forms 1040ez You may be able to deduct any necessary travel expenses that are more than the allowance. Irs forms 1040ez Deductible travel expenses. Irs forms 1040ez   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. Irs forms 1040ez Because these travel expenses are not business-related, they are not subject to the same limits as business-related expenses. Irs forms 1040ez For information on business travel expenses, see Travel Expenses in chapter 26. Irs forms 1040ez Contributions You Cannot Deduct There are some contributions you cannot deduct, such as those made to specific individuals and those made to nonqualified organizations. Irs forms 1040ez (See Contributions to Individuals and Contributions to Nonqualified Organizations , next. Irs forms 1040ez ) There are others you can deduct only part of, as discussed later under Contributions From Which You Benefit . Irs forms 1040ez Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Irs forms 1040ez Contributions to fraternal societies made for the purpose of paying medical or burial expenses of deceased members. Irs forms 1040ez Contributions to individuals who are needy or worthy. Irs forms 1040ez You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Irs forms 1040ez 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. Irs forms 1040ez Example. Irs forms 1040ez You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Irs forms 1040ez However, you cannot deduct contributions earmarked for relief of a particular individual or family. Irs forms 1040ez Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Irs forms 1040ez Expenses you paid for another person who provided services to a qualified organization. Irs forms 1040ez Example. Irs forms 1040ez Your son does missionary work. Irs forms 1040ez You pay his expenses. Irs forms 1040ez You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Irs forms 1040ez Payments to a hospital that are for a specific patient's care or for services for a specific patient. Irs forms 1040ez You cannot deduct these payments even if the hospital is operated by a city, a state, or other qualified organization. Irs forms 1040ez Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Irs forms 1040ez 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. Irs forms 1040ez Chambers of commerce and other business leagues or organizations (but see chapter 28). Irs forms 1040ez Civic leagues and associations. Irs forms 1040ez Communist organizations. Irs forms 1040ez Country clubs and other social clubs. Irs forms 1040ez Most foreign organizations (other than certain Canadian, Israeli, or Mexican charitable organizations). Irs forms 1040ez For details, see Publication 526. Irs forms 1040ez Homeowners' associations. Irs forms 1040ez Labor unions (but see chapter 28). Irs forms 1040ez Political organizations and candidates. Irs forms 1040ez 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. Irs forms 1040ez See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Irs forms 1040ez These contributions include the following. Irs forms 1040ez Contributions for lobbying. Irs forms 1040ez This includes amounts that you earmark for use in, or in connection with, influencing specific legislation. Irs forms 1040ez Contributions to a retirement home for room, board, maintenance, or admittance. Irs forms 1040ez Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Irs forms 1040ez Costs of raffles, bingo, lottery, etc. Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez Dues to fraternal orders and similar groups. Irs forms 1040ez However, see Membership fees or dues , earlier, under Contributions You Can Deduct. Irs forms 1040ez Tuition, or amounts you pay instead of tuition. Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez ” 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. Irs forms 1040ez Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Irs forms 1040ez 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. Irs forms 1040ez 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). Irs forms 1040ez You also may be able to claim an exemption for the child. Irs forms 1040ez See Adopted child in chapter 3. Irs forms 1040ez 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). Irs forms 1040ez 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. Irs forms 1040ez However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Irs forms 1040ez See Giving Property That Has Increased in Value , later. Irs forms 1040ez 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. Irs forms 1040ez Clothing and household items. Irs forms 1040ez   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. Irs forms 1040ez Exception. Irs forms 1040ez   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. Irs forms 1040ez Household items. Irs forms 1040ez   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Irs forms 1040ez   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Irs forms 1040ez Cars, boats, and airplanes. Irs forms 1040ez    The following rules apply to any donation of a qualified vehicle. Irs forms 1040ez 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. Irs forms 1040ez Deduction more than $500. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez Form 1098-C. Irs forms 1040ez   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. Irs forms 1040ez The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Irs forms 1040ez   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. Irs forms 1040ez   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Irs forms 1040ez    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Irs forms 1040ez But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Irs forms 1040ez Filing deadline approaching and still no Form 1098-C. Irs forms 1040ez   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Irs forms 1040ez Request an automatic 6-month extension of time to file your return. Irs forms 1040ez You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Irs forms 1040ez S. Irs forms 1040ez Individual Income Tax Return. Irs forms 1040ez  For more information, see Automatic Extension in chapter 1. Irs forms 1040ez File the return on time without claiming the deduction for the qualified vehicle. Irs forms 1040ez After receiving the Form 1098-C, file an amended return, Form 1040X, claiming the deduction. Irs forms 1040ez Attach Copy B of Form 1098-C (or other statement) to the amended return. Irs forms 1040ez For more information about amended returns, see Amended Returns and Claims for Refund in chapter 1. Irs forms 1040ez Exceptions. Irs forms 1040ez   There are two exceptions to the rules just described for deductions of more than $500. Irs forms 1040ez Exception 1—vehicle used or improved by organization. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez The Form 1098-C (or other statement) will show whether this exception applies. Irs forms 1040ez Exception 2—vehicle given or sold to needy individual. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez The Form 1098-C (or other statement) will show whether this exception applies. Irs forms 1040ez   This exception does not apply if the organization sells the vehicle at auction. Irs forms 1040ez In that case, you cannot deduct the vehicle's fair market value. Irs forms 1040ez Example. Irs forms 1040ez Anita donates a used car to a qualified organization. Irs forms 1040ez She bought it 3 years ago for $9,000. Irs forms 1040ez A used car guide shows the fair market value for this type of car is $6,000. Irs forms 1040ez However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Irs forms 1040ez Neither exception 1 nor exception 2 applies. Irs forms 1040ez If Anita itemizes her deductions, she can deduct $2,900 for her donation. Irs forms 1040ez She must attach Form 1098-C and Form 8283 to her return. Irs forms 1040ez Deduction $500 or less. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez Partial interest in property. Irs forms 1040ez   Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Irs forms 1040ez Right to use property. Irs forms 1040ez   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Irs forms 1040ez For exceptions and more information, see Partial Interest in Property Not in Trust in Publication 561. Irs forms 1040ez Future interests in tangible personal property. Irs forms 1040ez   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. Irs forms 1040ez Tangible personal property. Irs forms 1040ez   This is any property, other than land or buildings, that can be seen or touched. Irs forms 1040ez It includes furniture, books, jewelry, paintings, and cars. Irs forms 1040ez Future interest. Irs forms 1040ez   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. Irs forms 1040ez Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Irs forms 1040ez Publication 561 contains a more complete discussion. Irs forms 1040ez 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. Irs forms 1040ez Used clothing and household items. Irs forms 1040ez   The fair market value of used clothing and household goods is usually far less than what you paid for them when they were new. Irs forms 1040ez   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. Irs forms 1040ez See Household Goods in Publication 561 for information on the valuation of household goods, such as furniture, appliances, and linens. Irs forms 1040ez Example. Irs forms 1040ez Dawn Greene donated a coat to a thrift store operated by her church. Irs forms 1040ez She paid $300 for the coat 3 years ago. Irs forms 1040ez Similar coats in the thrift store sell for $50. Irs forms 1040ez The fair market value of the coat is $50. Irs forms 1040ez Dawn's donation is limited to $50. Irs forms 1040ez Cars, boats, and airplanes. Irs forms 1040ez   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Irs forms 1040ez 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. Irs forms 1040ez The guides may be published monthly or seasonally and for different regions of the country. Irs forms 1040ez These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Irs forms 1040ez The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Irs forms 1040ez But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Irs forms 1040ez   You can also find used car pricing information on the Internet. Irs forms 1040ez Example. Irs forms 1040ez You donate a used car in poor condition to a local high school for use by students studying car repair. Irs forms 1040ez A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Irs forms 1040ez However, the guide shows the price for a private party sale of the car is only $750. Irs forms 1040ez The fair market value of the car is considered to be $750. Irs forms 1040ez Large quantities. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez You cannot claim a deduction for the difference between the property's basis and its fair market value. Irs forms 1040ez 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. Irs forms 1040ez Your basis in property is generally what you paid for it. Irs forms 1040ez See chapter 13 if you need more information about basis. Irs forms 1040ez Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. Irs forms 1040ez Ordinary income property. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez Amount of deduction. Irs forms 1040ez   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. Irs forms 1040ez Generally, this rule limits the deduction to your basis in the property. Irs forms 1040ez Example. Irs forms 1040ez You donate stock you held for 5 months to your church. Irs forms 1040ez The fair market value of the stock on the day you donate it is $1,000, but you paid only $800 (your basis). Irs forms 1040ez 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). Irs forms 1040ez Capital gain property. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez Amount of deduction — general rule. Irs forms 1040ez   When figuring your deduction for a contribution of capital gain property, you generally can use the fair market value of the property. Irs forms 1040ez Exceptions. Irs forms 1040ez   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. Irs forms 1040ez Generally, this means reducing the fair market value to the property's cost or other basis. Irs forms 1040ez Bargain sales. Irs forms 1040ez   A bargain sale of property is a sale or exchange for less than the property's fair market value. Irs forms 1040ez A bargain sale to a qualified organization is partly a charitable contribution and partly a sale or exchange. Irs forms 1040ez A bargain sale may result in a taxable gain. Irs forms 1040ez More information. Irs forms 1040ez   For more information on donating appreciated property, see Giving Property That Has Increased in Value in Publication 526. Irs forms 1040ez 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 ). Irs forms 1040ez This applies whether you use the cash or an accrual method of accounting. Irs forms 1040ez Time of making contribution. Irs forms 1040ez   Usually, you make a contribution at the time of its unconditional delivery. Irs forms 1040ez Checks. Irs forms 1040ez   A check you mail to a charity is considered delivered on the date you mail it. Irs forms 1040ez Text message. Irs forms 1040ez   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. Irs forms 1040ez Credit card. Irs forms 1040ez    Contributions charged on your credit card are deductible in the year you make the charge. Irs forms 1040ez Pay-by-phone account. Irs forms 1040ez    Contributions made through a pay-by-phone account are considered delivered on the date the financial institution pays the amount. Irs forms 1040ez Stock certificate. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez Promissory note. Irs forms 1040ez   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. Irs forms 1040ez Option. Irs forms 1040ez    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. Irs forms 1040ez Borrowed funds. Irs forms 1040ez   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. Irs forms 1040ez Limits on Deductions The amount you can deduct for charitable contributions cannot be more than 50% of your adjusted gross income (AGI). Irs forms 1040ez 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. Irs forms 1040ez If your total contributions for the year are 20% or less of your AGI, these limits do not apply to you. Irs forms 1040ez The limits are discussed in detail under Limits on Deductions in Publication 526. Irs forms 1040ez A higher limit applies to certain qualified conservation contributions. Irs forms 1040ez See Publication 526 for details. Irs forms 1040ez Carryovers You can carry over any contributions you cannot deduct in the current year because they exceed your adjusted-gross-income limits. Irs forms 1040ez You can deduct the excess in each of the next 5 years until it is used up, but not beyond that time. Irs forms 1040ez For more information, see Carryovers in Publication 526. Irs forms 1040ez Records To Keep You must keep records to prove the amount of the contributions you make during the year. Irs forms 1040ez 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. Irs forms 1040ez Note. Irs forms 1040ez 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. Irs forms 1040ez (See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Irs forms 1040ez ) Keep the statement for your records. Irs forms 1040ez It may satisfy all or part of the recordkeeping requirements explained in the following discussions. Irs forms 1040ez Cash Contributions Cash contributions include those paid by cash, check, electronic funds transfer, debit card, credit card, or payroll deduction. Irs forms 1040ez You cannot deduct a cash contribution, regardless of the amount, unless you keep one of the following. Irs forms 1040ez A bank record that shows the name of the qualified organization, the date of the contribution, and the amount of the contribution. Irs forms 1040ez Bank records may include: A canceled check, A bank or credit union statement, or A credit card statement. Irs forms 1040ez 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. Irs forms 1040ez The payroll deduction records described next. Irs forms 1040ez Payroll deductions. Irs forms 1040ez   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. Irs forms 1040ez If your employer withheld $250 or more from a single paycheck, see Contributions of $250 or More , next. Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez Amount of contribution. Irs forms 1040ez   In figuring whether your contribution is $250 or more, do not combine separate contributions. Irs forms 1040ez For example, if you gave your church $25 each week, your weekly payments do not have to be combined. Irs forms 1040ez Each payment is a separate contribution. Irs forms 1040ez   If contributions are made by payroll deduction, the deduction from each paycheck is treated as a separate contribution. Irs forms 1040ez   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. Irs forms 1040ez Acknowledgment. Irs forms 1040ez   The acknowledgment must meet these tests. Irs forms 1040ez It must be written. Irs forms 1040ez 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. Irs forms 1040ez The acknowledgment does not need to describe or estimate the value of an intangible religious benefit. Irs forms 1040ez An intangible religious benefit is a benefit that generally is not sold in commercial transactions outside a donative (gift) context. Irs forms 1040ez An example is admission to a religious ceremony. Irs forms 1040ez 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. Irs forms 1040ez   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. Irs forms 1040ez If the acknowledgment shows the date of the contribution and meets the other tests just described, you do not need any other records. Irs forms 1040ez Payroll deductions. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez   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. Irs forms 1040ez 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). Irs forms 1040ez 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. Irs forms 1040ez Amount of deduction. Irs forms 1040ez   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. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez 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). Irs forms 1040ez Additional records. Irs forms 1040ez   You must also keep reliable written records for each item of contributed property. Irs forms 1040ez Your written records must include the following information. Irs forms 1040ez The name and address of the organization to which you contributed. Irs forms 1040ez The date and location of the contribution. Irs forms 1040ez A description of the property in detail reasonable under the circumstances. Irs forms 1040ez 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. Irs forms 1040ez The fair market value of the property at the time of the contribution and how you figured the fair market value. Irs forms 1040ez If it was determined by appraisal, keep a signed copy of the appraisal. Irs forms 1040ez The cost or other basis of the property, if you must reduce its fair market value by appreciation. Irs forms 1040ez Your records should also include the amount of the reduction and how you figured it. Irs forms 1040ez 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. Irs forms 1040ez Your records must include the amount you claimed as a deduction in any earlier years for contributions of other interests in this property. Irs forms 1040ez 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. Irs forms 1040ez The terms of any conditions attached to the contribution of property. Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez 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 . Irs forms 1040ez The acknowledgment must also meet these tests. Irs forms 1040ez It must be written. Irs forms 1040ez 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). Irs forms 1040ez 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. Irs forms 1040ez 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. Irs forms 1040ez Deductions Over $500 You are required to give additional information if you claim a deduction over $500 for noncash charitable contributions. Irs forms 1040ez See Records To Keep in Publication 526 for more information. Irs forms 1040ez 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. Irs forms 1040ez You must have adequate records to prove the amount of the expenses. Irs forms 1040ez 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. Irs forms 1040ez The acknowledgment does not need to describe or estimate the value of an intangible religious benefit (defined earlier under Acknowledgment ). Irs forms 1040ez 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. Irs forms 1040ez Car expenses. Irs forms 1040ez   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. Irs forms 1040ez Whether your records are considered reliable depends on all the facts and circumstances. Irs forms 1040ez Generally, they may be considered reliable if you made them regularly and at or near the time you had the expenses. Irs forms 1040ez   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. Irs forms 1040ez 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. Irs forms 1040ez If you deduct your actual expenses, your records must show the costs of operating the car that are directly related to a charitable purpose. Irs forms 1040ez   See Car expenses under Out-of-Pocket Expenses in Giving Services, earlier, for the expenses you can deduct. Irs forms 1040ez How To Report Report your charitable contributions on Schedule A (Form 1040). Irs forms 1040ez If your total deduction for all noncash contributions for the year is over $500, you must also file Form 8283. Irs forms 1040ez See How To Report in Publication 526 for more information. Irs forms 1040ez Prev  Up  Next   Home   More Online Publications

Internal Revenue Bulletin:  2014-9 

February 24, 2014 

Notice 2014–10

Section 5000A Transition Relief for Individuals with Certain Government-Sponsored Limited-Benefit Health Coverage


This notice provides relief from the individual shared responsibility payment required under § 5000A of the Internal Revenue Code for months in 2014 in which individuals have, under Medicaid and chapter 55 of Title 10, U.S.C., limited-benefit health coverage that is not minimum essential coverage.

BACKGROUND

For each month beginning after December 31, 2013, § 5000A requires individuals to either maintain minimum essential coverage for themselves and any nonexempt family members, qualify for an exemption, or include an individual shared responsibility payment with their Federal income tax return. A taxpayer is liable under § 5000A for any nonexempt individual whom the taxpayer may claim as a dependent.

Under § 5000A(f)(1)(A), minimum essential coverage includes coverage under certain specified government-sponsored programs (“government-sponsored minimum essential coverage”). On August 30, 2013, the Treasury Department and the Internal Revenue Service (IRS) published final regulations under § 5000A. The final regulations provide that government-sponsored minimum essential coverage includes coverage under the Medicaid program under Title XIX of the Social Security Act (42 U.S.C. 1396 and following sections), other than the following limited coverage under Medicaid:

optional coverage of family planning services under section 1902(a)(10)(A)(ii)(XXI) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XXI)) (“family planning services Medicaid”), optional coverage of tuberculosis-related services under section 1902(a)(10)(A)(ii)(XII) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XII) (“tuberculosis-related services Medicaid”), coverage of pregnancy-related services under section 1902(a)(10)(A)(i)(IV) and (a)(10)(A)(ii)(IX) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(IV), (a)(10)(A)(ii)(IX)) (“pregnancy-related Medicaid”), and coverage limited to treatment of emergency medical conditions in accordance with 8 U.S.C. 1611(b)(1)(A), as authorized by section 1903(v) of the Social Security Act (42 U.S.C. 1396b(v)) (“emergency medical conditions Medicaid”). The final § 5000A regulations also provide that government-sponsored minimum essential coverage includes medical coverage under chapter 55 of Title 10, U.S.C., including coverage under the TRICARE program.

The final § 5000A regulations reserve on whether certain government-sponsored programs that provide limited benefits are minimum essential coverage, including (i) coverage authorized under section 1115 of the Social Security Act (“Section 1115 demonstration projects”); (ii) coverage for medically needy individuals, see section 1902(a)(10)(C) of the Social Security Act (42 U.S.C. 1396a(a)(10)(C)) and 42 CFR 435.300 and following sections; (iii) coverage under section 1079(a), 1086(c)(1), or 1086(d)(1) of Title 10, U.S.C., for certain individuals who are excluded from TRICARE coverage for health care services from private sector providers and only eligible for space available care in a facility for the uniformed services (“space available care”); and (iv) coverage under sections 1074a and 1074b of Title 10, U.S.C., for individuals not on active duty who are entitled to episodic care for an injury, illness, or disease incurred or aggravated in the line of duty (“line-of-duty care”). See § 1.5000A–2(b)(2) (78 FR 53646, 53658).

The preamble to the final § 5000A regulations indicates that future guidance will provide that the government-sponsored limited-benefit coverage reserved on in the final § 5000A regulations is not minimum essential coverage. However, the preamble to the final § 5000A regulations also indicates that, if future rulemaking clarifies that such limited-benefit coverage is not minimum essential coverage, individuals with that coverage for a month in 2014 will not be subject to the § 5000A individual shared responsibility payment for that month. See T.D. 9632 (78 FR 53646, 53648–53650).

Proposed regulations (REG–141036–13) published concurrently with this notice provide that coverage under certain Section 1115 demonstration projects authorized under section 1115(a)(2) of the Social Security Act (42 U.S.C. 1315(a)(2)), coverage for medically needy individuals, space available care, and line-of-duty care is not government-sponsored minimum essential coverage.

DISCUSSION

Individuals enrolled in family planning services Medicaid, tuberculosis-related services Medicaid, pregnancy-related Medicaid, emergency medical conditions Medicaid, certain Section 1115 demonstration projects, coverage for medically needy individuals, space available care, or line-of-duty care may not know when enrolling for the 2014 coverage year that such coverage is not minimum essential coverage. Accordingly, to provide relief to individuals in this situation (or to taxpayers who are liable under § 5000A for other individuals in this situation), and consistent with the preamble to the final regulations, the § 5000A shared responsibility payment is not imposed with respect to an individual for months in 2014 when the individual has coverage under family planning services Medicaid, tuberculosis-related services Medicaid, pregnancy-related Medicaid, emergency medical conditions Medicaid, a Section 1115 demonstration project authorized under section 1115(a)(2) of the Social Security Act (42 U.S.C. 1315(a)(2)), coverage for medically needy individuals, space available care, or line-of-duty care.

The relief provided by this notice applies only for determining a taxpayer’s § 5000A individual shared responsibility payment for not maintaining minimum essential coverage in 2014. Solely for the purpose of determining whether a period without coverage qualifies as a short coverage gap described in § 5000A(e)(4), an individual will be treated as having minimum essential coverage for any month in 2014 when that individual is eligible for the transition relief provided by this notice.

DRAFTING INFORMATION

The principal author of this notice is John B. Lovelace of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this notice contact Mr. Lovelace at (202) 317-7006 (not a toll-free number).


More Internal Revenue Bulletins

The Irs Forms 1040ez

Irs forms 1040ez Internal Revenue Bulletin:  2011-12  March 21, 2011  Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2011-21 Table of Contents SECTION 1. Irs forms 1040ez PURPOSE SECTION 2. Irs forms 1040ez BACKGROUND SECTION 3. Irs forms 1040ez SCOPE SECTION 4. Irs forms 1040ez APPLICATION SECTION 5. Irs forms 1040ez EFFECTIVE DATE SECTION 6. Irs forms 1040ez EFFECT ON OTHER DOCUMENTS SECTION 7. Irs forms 1040ez DRAFTING INFORMATION SECTION 1. Irs forms 1040ez PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2011, including separate tables of limitations on depreciation deductions for trucks and vans; (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2011, including a separate table of inclusion amounts for lessees of trucks and vans; and (3) revised tables of depreciation limitations and lessee inclusion amounts for passenger automobiles that were first placed in service or first leased by the taxpayer, respectively, during 2010 and to which the 50 percent additional first year depreciation deduction under § 168(k)(1)(A) of the Internal Revenue Code or the 100 percent additional first year depreciation deduction under § 168(k)(5) applies. Irs forms 1040ez The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7). Irs forms 1040ez SECTION 2. Irs forms 1040ez BACKGROUND . Irs forms 1040ez 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Irs forms 1040ez For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. Irs forms 1040ez The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Irs forms 1040ez This change reflects the higher rate of price inflation for trucks and vans since 1988. Irs forms 1040ez . Irs forms 1040ez 02 Section 2022(a) of the Small Business Jobs Act of 2010, Pub. Irs forms 1040ez L. Irs forms 1040ez No. Irs forms 1040ez 111-240, 124 Stat. Irs forms 1040ez 2504 (September 27, 2010), extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property (as defined in § 168(k)(2)) acquired by the taxpayer after December 31, 2007, and before January 1, 2011, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2011. Irs forms 1040ez Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. Irs forms 1040ez L. Irs forms 1040ez No. Irs forms 1040ez 111-312, 124 Stat. Irs forms 1040ez 3296 (Dec. Irs forms 1040ez 17, 2010) (the “Act”) further extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. Irs forms 1040ez Section 401(b) of the Act further amended § 168(k) by adding § 168(k)(5). Irs forms 1040ez It allows a 100 percent additional first year depreciation deduction for qualified property acquired by a taxpayer after September 8, 2010, and before January 1, 2012, if the taxpayer places the property in service generally before January 1, 2012. Irs forms 1040ez Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. Irs forms 1040ez . Irs forms 1040ez 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Irs forms 1040ez Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. Irs forms 1040ez Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv). Irs forms 1040ez Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. Irs forms 1040ez This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2011 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. Irs forms 1040ez . Irs forms 1040ez 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Irs forms 1040ez The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Irs forms 1040ez Under § 1. Irs forms 1040ez 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. Irs forms 1040ez One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Irs forms 1040ez Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Irs forms 1040ez SECTION 3. Irs forms 1040ez SCOPE . Irs forms 1040ez 01 The limitations on depreciation deductions in section 4. Irs forms 1040ez 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2011, and continue to apply for each taxable year that the passenger automobile remains in service. Irs forms 1040ez . Irs forms 1040ez 02 The tables in section 4. Irs forms 1040ez 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2011. Irs forms 1040ez Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Irs forms 1040ez See Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2006-18, 2006-1 C. Irs forms 1040ez B. Irs forms 1040ez 645, for passenger automobiles first leased during calendar year 2006; Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2007-30, 2007-1 C. Irs forms 1040ez B. Irs forms 1040ez 1104, for passenger automobiles first leased during calendar year 2007; Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2008-22, 2008-1 C. Irs forms 1040ez B. Irs forms 1040ez 658, for passenger automobiles first leased during calendar year 2008; Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2009-24, 2009-1 C. Irs forms 1040ez B. Irs forms 1040ez 885, for passenger automobiles first leased during calendar year 2009; and Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2010-18, 2010-1 C. Irs forms 1040ez B. Irs forms 1040ez 427, as amplified and modified by section 4. Irs forms 1040ez 03 of this revenue procedure, for passenger automobiles first leased during calendar year 2010. Irs forms 1040ez SECTION 4. Irs forms 1040ez APPLICATION . Irs forms 1040ez 01 Limitations on Depreciation Deductions for Certain Automobiles. Irs forms 1040ez (1) Amount of the inflation adjustment. Irs forms 1040ez (a) Passenger automobiles (other than trucks or vans). Irs forms 1040ez Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Irs forms 1040ez Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Irs forms 1040ez The new car component of the CPI was 115. Irs forms 1040ez 2 for October 1987 and 137. Irs forms 1040ez 880 for October 2010. Irs forms 1040ez The October 2010 index exceeded the October 1987 index by 22. Irs forms 1040ez 680. Irs forms 1040ez Therefore, the automobile price inflation adjustment for 2011 for passenger automobiles (other than trucks and vans) is 19. Irs forms 1040ez 69 percent (22. Irs forms 1040ez 680/115. Irs forms 1040ez 2 x 100%). Irs forms 1040ez The dollar limitations in § 280F(a) are multiplied by a factor of 0. Irs forms 1040ez 1969, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2011. Irs forms 1040ez This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2011. Irs forms 1040ez (b) Trucks and vans. Irs forms 1040ez To determine the dollar limitations for trucks and vans first placed in service during calendar year 2011, the Service uses the new truck component of the CPI instead of the new car component. Irs forms 1040ez The new truck component of the CPI was 112. Irs forms 1040ez 4 for October 1987 and 142. Irs forms 1040ez 556 for October 2010. Irs forms 1040ez The October 2010 index exceeded the October 1987 index by 30. Irs forms 1040ez 156. Irs forms 1040ez Therefore, the automobile price inflation adjustment for 2011 for trucks and vans is 26. Irs forms 1040ez 83 percent (30. Irs forms 1040ez 156/112. Irs forms 1040ez 4 x 100%). Irs forms 1040ez The dollar limitations in § 280F(a) are multiplied by a factor of 0. Irs forms 1040ez 2683, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Irs forms 1040ez This adjustment applies to all trucks and vans that are first placed in service in calendar year 2011. Irs forms 1040ez (2) Amount of the limitation. Irs forms 1040ez Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2011. Irs forms 1040ez Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2011 for which the § 168(k) additional first year depreciation deduction applies. Irs forms 1040ez Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2011 for which the § 168(k) additional first year depreciation deduction does not apply. Irs forms 1040ez The Service intends to issue additional guidance addressing the interaction between the 100 percent additional first year depreciation deduction and § 280F(a) for the taxable years subsequent to the first taxable year. Irs forms 1040ez REV. Irs forms 1040ez PROC. Irs forms 1040ez 2011-21 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Irs forms 1040ez PROC. Irs forms 1040ez 2011-21 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,260 2nd Tax Year $5,200 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. Irs forms 1040ez PROC. Irs forms 1040ez 2011-21 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Irs forms 1040ez PROC. Irs forms 1040ez 2011-21 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,260 2nd Tax Year $5,200 3rd Tax Year $3,150 Each Succeeding Year $1,875 . Irs forms 1040ez 02 Inclusions in Income of Lessees of Passenger Automobiles. Irs forms 1040ez A taxpayer must follow the procedures in § 1. Irs forms 1040ez 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2011. Irs forms 1040ez In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. Irs forms 1040ez REV. Irs forms 1040ez PROC. Irs forms 1040ez 2011-21 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $18,500 $19,000 3 8 11 13 16 19,000 19,500 4 9 13 15 18 19,500 20,000 4 10 15 17 20 20,000 20,500 5 11 16 19 23 20,500 21,000 5 12 18 21 25 21,000 21,500 6 13 19 24 26 21,500 22,000 6 14 21 26 29 22,000 23,000 7 16 23 29 32 23,000 24,000 8 18 27 32 37 24,000 25,000 9 20 30 36 42 25,000 26,000 10 23 33 40 46 26,000 27,000 11 25 36 44 51 27,000 28,000 12 27 40 48 55 28,000 29,000 13 29 43 52 60 29,000 30,000 14 31 47 55 65 30,000 31,000 15 34 49 60 69 31,000 32,000 16 36 53 63 73 32,000 33,000 17 38 56 68 77 33,000 34,000 18 40 60 71 82 34,000 35,000 19 42 63 75 87 35,000 36,000 20 45 66 79 91 36,000 37,000 21 47 69 83 96 37,000 38,000 22 49 73 87 100 38,000 39,000 23 51 76 91 105 39,000 40,000 24 53 80 94 110 40,000 41,000 25 56 82 99 114 41,000 42,000 26 58 86 102 119 42,000 43,000 27 60 89 107 123 43,000 44,000 28 62 93 110 128 44,000 45,000 29 64 96 114 133 45,000 46,000 30 67 98 119 137 46,000 47,000 31 69 102 122 141 47,000 48,000 32 71 105 127 145 48,000 49,000 33 73 109 130 150 49,000 50,000 34 76 111 134 155 50,000 51,000 35 78 115 138 159 51,000 52,000 36 80 118 142 164 52,000 53,000 37 82 122 146 168 53,000 54,000 38 84 125 150 173 54,000 55,000 39 87 128 153 178 55,000 56,000 40 89 131 158 182 56,000 57,000 41 91 135 161 187 57,000 58,000 42 93 138 166 191 58,000 59,000 43 95 142 169 196 59,000 60,000 44 98 144 174 200 60,000 62,000 46 101 149 179 207 62,000 64,000 48 105 156 187 216 64,000 66,000 50 109 163 195 225 66,000 68,000 52 114 169 203 234 68,000 70,000 54 118 176 211 243 70,000 72,000 56 123 182 218 253 72,000 74,000 58 127 189 226 262 74,000 76,000 60 132 195 234 270 76,000 78,000 62 136 202 242 279 78,000 80,000 64 140 209 250 288 80,000 85,000 67 148 220 264 304 85,000 90,000 72 159 237 283 327 90,000 95,000 77 170 253 303 350 95,000 100,000 82 181 269 323 372 100,000 110,000 90 198 293 352 406 110,000 120,000 100 220 326 391 452 120,000 130,000 110 242 359 430 497 130,000 140,000 120 264 392 469 543 140,000 150,000 130 286 424 509 588 150,000 160,000 140 308 457 548 633 160,000 170,000 150 330 490 587 679 170,000 180,000 160 352 523 626 724 180,000 190,000 170 374 555 666 769 190,000 200,000 180 396 588 705 815 200,000 210,000 190 418 621 744 860 210,000 220,000 200 440 654 784 904 220,000 230,000 210 462 687 823 950 230,000 240,000 220 484 719 863 995 240,000 And up 230 506 752 902 1,040 REV. Irs forms 1040ez PROC. Irs forms 1040ez 2011-21 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 3 7 9 12 13 19,500 20,000 3 8 11 14 15 20,000 20,500 4 9 13 15 18 20,500 21,000 4 10 15 17 20 21,000 21,500 5 11 16 20 22 21,500 22,000 5 12 18 22 24 22,000 23,000 6 14 20 24 29 23,000 24,000 7 16 24 28 32 24,000 25,000 8 18 27 32 37 25,000 26,000 9 20 31 36 41 26,000 27,000 10 23 33 40 46 27,000 28,000 11 25 37 43 51 28,000 29,000 12 27 40 48 55 29,000 30,000 13 29 43 52 60 30,000 31,000 14 31 47 56 64 31,000 32,000 15 34 49 60 69 32,000 33,000 16 36 53 63 74 33,000 34,000 17 38 56 68 78 34,000 35,000 18 40 60 71 83 35,000 36,000 19 43 62 76 87 36,000 37,000 20 45 66 79 92 37,000 38,000 21 47 69 83 97 38,000 39,000 22 49 73 87 101 39,000 40,000 23 51 76 91 105 40,000 41,000 24 54 79 95 109 41,000 42,000 25 56 82 99 114 42,000 43,000 26 58 86 103 118 43,000 44,000 27 60 89 107 123 44,000 45,000 28 62 93 110 128 45,000 46,000 29 65 95 115 132 46,000 47,000 30 67 99 118 137 47,000 48,000 31 69 102 123 141 48,000 49,000 32 71 106 126 146 49,000 50,000 33 73 109 130 151 50,000 51,000 34 76 112 134 155 51,000 52,000 35 78 115 138 160 52,000 53,000 36 80 118 143 164 53,000 54,000 37 82 122 146 169 54,000 55,000 38 84 125 150 173 55,000 56,000 39 87 128 154 177 56,000 57,000 40 89 131 158 182 57,000 58,000 41 91 135 162 186 58,000 59,000 42 93 138 166 191 59,000 60,000 43 95 142 169 196 60,000 62,000 45 99 146 175 203 62,000 64,000 47 103 153 183 212 64,000 66,000 49 107 160 191 221 66,000 68,000 51 112 166 199 229 68,000 70,000 53 116 173 206 239 70,000 72,000 55 121 179 214 248 72,000 74,000 57 125 186 222 257 74,000 76,000 59 129 192 231 266 76,000 78,000 61 134 198 239 275 78,000 80,000 63 138 205 246 285 80,000 85,000 66 146 217 260 300 85,000 90,000 71 157 233 280 322 90,000 95,000 76 168 250 299 345 95,000 100,000 81 179 266 319 368 100,000 110,000 89 196 290 348 402 110,000 120,000 99 218 323 387 447 120,000 130,000 109 240 355 427 493 130,000 140,000 119 262 388 466 538 140,000 150,000 129 284 421 505 583 150,000 160,000 139 306 454 544 629 160,000 170,000 149 328 487 583 674 170,000 180,000 159 350 519 623 719 180,000 190,000 169 372 552 662 765 190,000 200,000 179 394 585 701 810 200,000 210,000 189 416 618 740 856 210,000 220,000 199 438 651 779 901 220,000 230,000 209 460 683 819 946 230,000 240,000 219 482 716 858 992 240,000 And up 229 504 749 897 1,037 . Irs forms 1040ez 03 Revised Amounts for Passenger Automobiles Placed in Service During 2010. Irs forms 1040ez (1) Calculation of the Revised Amount. Irs forms 1040ez The revised depreciation limits provided in this section 4. Irs forms 1040ez 03 were calculated by increasing the existing limitations on the first year allowance in Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2010-18 by $8,000 as provided in § 168(k)(2)(F)(i). Irs forms 1040ez (2) Amount of the Revised Limitation. Irs forms 1040ez For passenger automobiles (that are not trucks or vans) placed in service by the taxpayer in calendar year 2010 for which the § 168(k) additional first year depreciation deduction applies, Table 7 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each taxable year. Irs forms 1040ez For trucks or vans placed in service by the taxpayer in calendar year 2010 for which the § 168(k) additional first year depreciation deduction applies, Table 8 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each taxable year. Irs forms 1040ez If the § 168(k) additional first year depreciation deduction does not apply to a passenger automobile placed in service by the taxpayer in calendar year 2010, the depreciation limitations for each taxable year in Tables 1 and 2 of Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2010-18 apply. Irs forms 1040ez REV. Irs forms 1040ez PROC. Irs forms 1040ez 2011-21 TABLE 7 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2010 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Irs forms 1040ez PROC. Irs forms 1040ez 2011-21 TABLE 8 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2010 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 (3) Modification to lease inclusion amounts for 2010. Irs forms 1040ez The lease inclusion amounts in Tables 3 and 4 of Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2010-18 are modified by striking the first four lines of the inclusion amounts in each table. Irs forms 1040ez Consequently, Table 3 of Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2010-18 applies to passenger automobiles (other than trucks and vans) that are first leased by the taxpayer in calendar year 2010 with a fair market value over $18,500, and Table 4 of Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2010-18 applies to trucks and vans that are first leased by the taxpayer in calendar year 2010 with a fair market value over $19,000. Irs forms 1040ez SECTION 5. Irs forms 1040ez EFFECTIVE DATE This revenue procedure, with the exception of section 4. Irs forms 1040ez 03, applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2011. Irs forms 1040ez Section 4. Irs forms 1040ez 03 of this revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2010. Irs forms 1040ez SECTION 6. Irs forms 1040ez EFFECT ON OTHER DOCUMENTS Rev. Irs forms 1040ez Proc. Irs forms 1040ez 2010-18 is amplified and modified. Irs forms 1040ez SECTION 7. Irs forms 1040ez DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Irs forms 1040ez Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Irs forms 1040ez For further information regarding this revenue procedure, contact Mr. Irs forms 1040ez Harvey at (202) 622-4930 (not a toll-free call). Irs forms 1040ez Prev  Up  Next   Home   More Internal Revenue Bulletins