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Tax Form 1040a

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Tax Form 1040a

Tax form 1040a 10. Tax form 1040a   Employees of Foreign Governments and International Organizations Table of Contents Exemption Under Tax Treaty Exemption Under U. Tax form 1040a S. Tax form 1040a Tax LawCertification. Tax form 1040a Employees of foreign governments (including foreign municipalities) have two ways to get exemption of their governmental wages from U. Tax form 1040a S. Tax form 1040a income tax: By a provision in a tax treaty or consular convention between the United States and their country, or By meeting the requirements of U. Tax form 1040a S. Tax form 1040a tax law. Tax form 1040a Employees of international organizations can exempt their wages either by a provision, if one exists, in the international agreement creating the international organization, or by meeting the requirements of U. Tax form 1040a S. Tax form 1040a tax law. Tax form 1040a The exemption discussed in this chapter applies only to pay received for services performed for a foreign government or international organization. Tax form 1040a Other U. Tax form 1040a S. Tax form 1040a income received by persons who qualify for this exemption may be fully taxable or given favorable treatment under an applicable tax treaty provision. Tax form 1040a The proper treatment of this kind of income (interest, dividends, etc. Tax form 1040a ) is discussed earlier in this publication. Tax form 1040a Exemption Under Tax Treaty If you are from a country that has a tax treaty with the United States, you should first look at the treaty to see if there is a provision that exempts your income. Tax form 1040a The income of U. Tax form 1040a S. Tax form 1040a citizens and resident aliens working for foreign governments usually is not exempt. Tax form 1040a However, in a few instances, the income of a U. Tax form 1040a S. Tax form 1040a citizen with dual citizenship may qualify. Tax form 1040a Often the exemption is limited to the income of persons who also are nationals of the foreign country involved. Tax form 1040a Exemption Under U. Tax form 1040a S. Tax form 1040a Tax Law Employees of foreign governments who do not qualify under a tax treaty provision and employees of international organizations may qualify for exemption by meeting the following requirements of U. Tax form 1040a S. Tax form 1040a tax law. Tax form 1040a The exemption under U. Tax form 1040a S. Tax form 1040a tax law applies only to current employees and not to former employees. Tax form 1040a Pensions received by former employees living in the United States do not qualify for the exemption discussed here. Tax form 1040a Employees of foreign governments. Tax form 1040a   If you are not a U. Tax form 1040a S. Tax form 1040a citizen, or if you are a U. Tax form 1040a S. Tax form 1040a citizen but also a citizen of the Philippines, and you work for a foreign government in the United States, your foreign government salary is exempt from U. Tax form 1040a S. Tax form 1040a tax if you perform services similar to those performed by U. Tax form 1040a S. Tax form 1040a government employees in that foreign country and that foreign government grants an equivalent exemption to U. Tax form 1040a S. Tax form 1040a government employees. Tax form 1040a Certification. Tax form 1040a   To qualify for the exemption under U. Tax form 1040a S. Tax form 1040a tax law, either the Department of State must certify that you perform services similar to those performed by employees of the government of the United States in foreign countries and that your foreign government employer grants an equivalent exemption to U. Tax form 1040a S. Tax form 1040a government employees performing similar services in its country or you must establish those facts. Tax form 1040a However, see Aliens who keep immigrant status , later, for a special rule that may affect your qualifying for this exemption. Tax form 1040a Employees of international organizations. Tax form 1040a   If you work for an international organization in the United States and you are not a U. Tax form 1040a S. Tax form 1040a citizen (or you are a U. Tax form 1040a S. Tax form 1040a citizen but are also a citizen of the Philippines), your salary from that organization is exempt from U. Tax form 1040a S. Tax form 1040a tax. Tax form 1040a However, see Aliens who keep immigrant status , later, for a special rule that may affect your qualifying for this exemption. Tax form 1040a   An international organization is an organization designated by the President of the United States through Executive Order to qualify for the privileges, exemptions, and immunities provided in the International Organizations Immunities Act. Tax form 1040a   You should find out if you have been made known to, and have been accepted by, the Secretary of State as an officer or an employee of that organization, or if you have been designated by the Secretary of State, before formal notification and acceptance, as a prospective officer or employee. Tax form 1040a   If you are claiming exemption, you should know the number of the Executive Order covering the international organization and should have some written evidence of your acceptance or designation by the Secretary of State. Tax form 1040a   The exemption is denied when, because the Secretary of State determines your presence in the United States is no longer desirable, you leave the United States (or after a reasonable time allowed for leaving the United States). Tax form 1040a The exemption is also denied when a foreign country does not allow similar exemptions to U. Tax form 1040a S. Tax form 1040a citizens. Tax form 1040a Then the Secretary of State can withdraw the privileges, exemptions, and immunities from the nationals of that foreign country. Tax form 1040a Aliens who keep immigrant status. Tax form 1040a   If you file the waiver provided by section 247(b) of the Immigration and Nationality Act (USCIS Form I-508) to keep your immigrant status (green card), you no longer qualify for the exemption from U. Tax form 1040a S. Tax form 1040a tax under U. Tax form 1040a S. Tax form 1040a tax law from the date of filing the waiver with the Attorney General. Tax form 1040a   However, you do not lose the exemption if you file the waiver, and meet either of the following conditions. Tax form 1040a You are exempt from U. Tax form 1040a S. Tax form 1040a tax under an income tax treaty, consular agreement, or international agreement between the United States and your foreign government employer. Tax form 1040a You work for an international organization and the international organization agreement creating the international organization provides that alien employees are exempt from U. Tax form 1040a S. Tax form 1040a income tax. Tax form 1040a Two international organizations that have such a provision are the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank). Tax form 1040a . Tax form 1040a   For more information about a specific foreign country or international organization, send an email to embassy@irs. Tax form 1040a gov. Tax form 1040a Prev  Up  Next   Home   More Online Publications
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Understanding Your CP2030 Notice

We are proposing changes in income, credits, and deductions reported on your U.S. Corporation Income Tax Return. We compared your information with items reported to us by banks, businesses and other payers.


What you need to do

  • Compare the information in the two columns - "Shown on return" and "Reported to IRS by others". Did you receive the income? If you received the income, was it reported on your tax return? IRS employees search the tax return to locate all income, but they may be unable to determine the source if some items are combined.
  • If it wasn't reported on your tax return, you don't need to file an amended return to report the income. Simply check the box indicating that you agree with all changes, sign and date the CP 2030 response page and return it with your check or money order made payable to the United States Treasury.
  • If you agree with the increase, but you can't pay the entire balance due, you may be able to request a payment plan. If you didn't report the income for another reason, please explain.
  • If you don't agree with the increase, check the box indicating that you don’t agree with some or all of the changes on the CP 2030 response page and return it with a signed statement explaining each item of discrepancy. If applicable, attach copies of documents to support the entries on the original return.

You may want to…

  • Send us the name, address and taxpayer identification number of the other party that received the income if it isn't yours.
  • Notify the payers to correct their records to show the name and taxpayer identification number of the person or business who actually received the income, so future reports to us are accurate.

Answers to Common Questions

Is this a bill?

No. We're asking you to verify the income, credits, and deductions reported on your tax return because they're different from the information we received from other sources. The CP 2030 is only a proposal that offers you an opportunity to disagree, partially agree, or agree with the proposed changes. We haven't charged any additional tax at this time.

Why did it take you so long to contact us about this?

Tax years generally end on Dec. 31, but we don't receive information from banks, businesses, and other payers until much later. Once we receive all the tax returns and payer information, we compare the information you reported with the information third party payers provided to us. It can take 8 months or more to complete this review.

Should I call with my response or mail it in?

If you have a simple response, such as directing us to a specific line on your original return where you reported the income, you can call a Customer Service Representative and provide the information. A toll-free number is listed in the top right hand corner of the notice.

A written response may be required if the issue is more involved, especially if you disagree with some of the proposed changes. You may want to mail copies of payer information documents such as Form(s) 1099 or Schedule(s) K-1. Include any other letters or documents that support your position. You should submit a written statement to fully explain any unusual tax situations.

I need more time to find my records and go through them all. Will you allow me additional time to respond?

Your response is due by the date shown on the notice or we'll use the proposed changes to continue processing the case. If you need more time to research your records, you can call the toll-free number at the top of your notice to request a 30 day extension. We may also provide additional time to respond if you have unusual circumstances. Additional interest and any applicable penalties will accrue on the account during the period of the extension if the tax increase is correct.

Do I have to pay the interest? Can you remove it?

The law requires us to charge interest on any tax that isn't paid by the return due date (Internal Revenue Code Section 6601).

The law doesn't permit us to reduce or remove interest for reasonable cause. However, in limited circumstances we may waive penalties. If you believe you qualify for penalty removal, you should include related information in your response.

What should I do to avoid problems like this in the future?

Keep accurate payment information from banks and other payers to verify you've received all payment information for filing your return. Review the documents to be sure they show your most current address.

Take the following actions when filing your tax return to avoid similar issues in the future:

  • Report specific income type on the correct line on the Form 1120, U.S. Corporation Income Tax Return. For example, rental income should be claimed on Form 1120, line 6 (Gross Rents). For additional information, please see the reporting instructions for Form 1120.
  • If you report income on a line not traditionally reserved for that type of income, provide a statement indicating where the income was reported. For example, your business is related to investment activity and you're reporting all interest income (including amounts reported to the IRS on Form 1099-INT, Interest Income) with your gross receipts on Form 1120, line 1.
  • Always attach a statement identifying the source of the amount reported on Form 1120, line 10 (Other Income).
  • Provide an attached statement explaining your percentage of gross proceeds (ex; reported to us on Form 1099-MISC) that you would be liable to claim on your tax return.
  • Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts applicable to each.
Page Last Reviewed or Updated: 28-Feb-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Tax Form 1040a

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