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Ez 1040 Online

Ez 1040 online Publication 504 - Main Content Table of Contents Filing StatusUnmarried persons. Ez 1040 online Married persons. Ez 1040 online Same-sex marriage. Ez 1040 online Exception. Ez 1040 online Married Filing Jointly Married Filing Separately Head of Household ExemptionsPersonal Exemptions Exemptions for Dependents Phaseout of Exemptions AlimonyInvalid decree. Ez 1040 online Amended instrument. Ez 1040 online General Rules Instruments Executed After 1984 Instruments Executed Before 1985 Qualified Domestic Relations OrderRollovers. Ez 1040 online Individual Retirement Arrangements Property SettlementsTransfer Between Spouses Gift Tax on Property Settlements Sale of Jointly-Owned Property Costs of Getting a Divorce Tax Withholding and Estimated Tax Community PropertyCommunity Income Alimony (Community Income) How To Get Tax Help Filing Status Your filing status is used in determining whether you must file a return, your standard deduction, and the correct tax. Ez 1040 online It may also be used in determining whether you can claim certain other deductions and credits. Ez 1040 online The filing status you can choose depends partly on your marital status on the last day of your tax year. Ez 1040 online Marital status. Ez 1040 online   If you are unmarried, your filing status is single or, if you meet certain requirements, head of household or qualifying widow(er). Ez 1040 online If you are married, your filing status is either married filing a joint return or married filing a separate return. Ez 1040 online For information about the single and qualifying widow(er) filing statuses, see Publication 501. Ez 1040 online Unmarried persons. Ez 1040 online   You are unmarried for the whole year if either of the following applies. Ez 1040 online You have obtained a final decree of divorce or separate maintenance by the last day of your tax year. Ez 1040 online You must follow your state law to determine if you are divorced or legally separated. Ez 1040 online Exception. Ez 1040 online If you and your spouse obtain a divorce in one year for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to remarry each other and do so in the next tax year, you and your spouse must file as married individuals. Ez 1040 online You have obtained a decree of annulment, which holds that no valid marriage ever existed. Ez 1040 online You must file amended returns (Form 1040X, Amended U. Ez 1040 online S. Ez 1040 online Individual Income Tax Return) for all tax years affected by the annulment that are not closed by the statute of limitations. Ez 1040 online The statute of limitations generally does not end until 3 years (including extensions) after the date you file your original return or within 2 years after the date you pay the tax. Ez 1040 online On the amended return you will change your filing status to single or, if you meet certain requirements, head of household. Ez 1040 online Married persons. Ez 1040 online   You are married for the whole year if you are separated but you have not obtained a final decree of divorce or separate maintenance by the last day of your tax year. Ez 1040 online An interlocutory decree is not a final decree. Ez 1040 online Same-sex marriage. Ez 1040 online   For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Ez 1040 online The term "spouse" includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. Ez 1040 online However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not considered a marriage under state (or foreign) law are not considered married for federal tax purposes. Ez 1040 online For more details, see Publication 501. Ez 1040 online Exception. Ez 1040 online   If you live apart from your spouse, under certain circumstances, you may be considered unmarried and can file as head of household. Ez 1040 online See Head of Household , later. Ez 1040 online Married Filing Jointly If you are married, you and your spouse can choose to file a joint return. Ez 1040 online If you file jointly, you both must include all your income, exemptions, deductions, and credits on that return. Ez 1040 online You can file a joint return even if one of you had no income or deductions. Ez 1040 online If both you and your spouse have income, you should usually figure your tax on both a joint return and separate returns (using the filing status of married filing separately) to see which gives the two of you the lower combined tax. Ez 1040 online Nonresident alien. Ez 1040 online   To file a joint return, at least one of you must be a U. Ez 1040 online S. Ez 1040 online citizen or resident alien at the end of the tax year. Ez 1040 online If either of you was a nonresident alien at any time during the tax year, you can file a joint return only if you agree to treat the nonresident spouse as a resident of the United States. Ez 1040 online This means that your combined worldwide incomes are subject to U. Ez 1040 online S. Ez 1040 online income tax. Ez 1040 online These rules are explained in Publication 519, U. Ez 1040 online S. Ez 1040 online Tax Guide for Aliens. Ez 1040 online Signing a joint return. Ez 1040 online   Both you and your spouse generally must sign the return, or it will not be considered a joint return. Ez 1040 online Joint and individual liability. Ez 1040 online   Both you and your spouse may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. Ez 1040 online This means that one spouse may be held liable for all the tax due even if all the income was earned by the other spouse. Ez 1040 online Divorced taxpayers. Ez 1040 online   If you are divorced, you are jointly and individually responsible for any tax, interest, and penalties due on a joint return for a tax year ending before your divorce. Ez 1040 online This responsibility applies even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. Ez 1040 online Relief from joint liability. Ez 1040 online   In some cases, a spouse may be relieved of the tax, interest, and penalties on a joint return. Ez 1040 online You can ask for relief no matter how small the liability. Ez 1040 online   There are three types of relief available. Ez 1040 online Innocent spouse relief. Ez 1040 online Separation of liability, which applies to joint filers who are divorced, widowed, legally separated, or who have not lived together for the 12 months ending on the date election of this relief is filed. Ez 1040 online Equitable relief. Ez 1040 online   Married persons who live in community property states, but who did not file joint returns, may also qualify for relief from liability arising from community property law or for equitable relief. Ez 1040 online See Relief from liability arising from community property law , later, under Community Property. Ez 1040 online    Each kind of relief has different requirements. Ez 1040 online You must file Form 8857 to request relief under any of these categories. Ez 1040 online Publication 971 explains these kinds of relief and who may qualify for them. Ez 1040 online You can also find information on our website at IRS. Ez 1040 online gov. Ez 1040 online Tax refund applied to spouse's debts. Ez 1040 online   The overpayment shown on your joint return may be used to pay the past-due amount of your spouse's debts. Ez 1040 online This includes your spouse's federal tax, state income tax, child or spousal support payments, or a federal nontax debt, such as a student loan. Ez 1040 online You can get a refund of your share of the overpayment if you qualify as an injured spouse. Ez 1040 online Injured spouse. Ez 1040 online   You are an injured spouse if you file a joint return and all or part of your share of the overpayment was, or is expected to be, applied against your spouse's past-due debts. Ez 1040 online An injured spouse can get a refund for his or her share of the overpayment that would otherwise be used to pay the past-due amount. Ez 1040 online   To be considered an injured spouse, you must: Have made and reported tax payments (such as federal income tax withheld from wages or estimated tax payments), or claimed a refundable tax credit, such as the earned income credit or additional child tax credit on the joint return, and Not be legally obligated to pay the past-due amount. Ez 1040 online Note. Ez 1040 online If the injured spouse's permanent home is in a community property state, then the injured spouse must only meet (2). Ez 1040 online For more information, see Publication 555. Ez 1040 online    Refunds that involve community property states must be divided according to local law. Ez 1040 online If you live in a community property state in which all community property is subject to the debts of either spouse, your entire refund is generally used to pay those debts. Ez 1040 online   If you are an injured spouse, you must file Form 8379 to have your portion of the overpayment refunded to you. Ez 1040 online Follow the instructions for the form. Ez 1040 online   If you have not filed your joint return and you know that your joint refund will be offset, file Form 8379 with your return. Ez 1040 online You should receive your refund within 14 weeks from the date the paper return is filed or within 11 weeks from the date the return is filed electronically. Ez 1040 online   If you filed your joint return and your joint refund was offset, file Form 8379 by itself. Ez 1040 online When filed after offset, it can take up to 8 weeks to receive your refund. Ez 1040 online Do not attach the previously filed tax return, but do include copies of all Forms W-2, Wage and Tax Statement, and W-2G, Certain Gambling Winnings, for both spouses and any Forms 1099 that show income tax withheld. Ez 1040 online    An injured spouse claim is different from an innocent spouse relief request. Ez 1040 online An injured spouse uses Form 8379 to request an allocation of the tax overpayment attributed to each spouse. Ez 1040 online An innocent spouse uses Form 8857 to request relief from joint liability for tax, interest, and penalties on a joint return for items of the other spouse (or former spouse) that were incorrectly reported on or omitted from the joint return. Ez 1040 online For information on innocent spouses, see Relief from joint liability, earlier. Ez 1040 online Married Filing Separately If you and your spouse file separate returns, you should each report only your own income, exemptions, deductions, and credits on your individual return. Ez 1040 online You can file a separate return even if only one of you had income. Ez 1040 online For information on exemptions you can claim on your separate return, see Exemptions , later. Ez 1040 online Community or separate income. Ez 1040 online   If you live in a community property state and file a separate return, your income may be separate income or community income for income tax purposes. Ez 1040 online For more information, see Community Income under Community Property, later. Ez 1040 online Separate liability. Ez 1040 online   If you and your spouse file separately, you each are responsible only for the tax due on your own return. Ez 1040 online Itemized deductions. Ez 1040 online   If you and your spouse file separate returns and one of you itemizes deductions, the other spouse cannot use the standard deduction and should also itemize deductions. Ez 1040 online Table 1. Ez 1040 online Itemized Deductions on Separate Returns This table shows itemized deductions you can claim on your married filing separate return whether you paid the expenses separately with your own funds or jointly with your spouse. Ez 1040 online  Caution: If you live in a community property state, these rules do not apply. Ez 1040 online See Community Property. Ez 1040 online IF you paid . Ez 1040 online . Ez 1040 online . Ez 1040 online AND you . Ez 1040 online . Ez 1040 online . Ez 1040 online THEN you can deduct on your separate federal return. Ez 1040 online . Ez 1040 online . Ez 1040 online   medical expenses   paid with funds deposited in a joint checking account in which you and your spouse have an equal interest     half of the total medical expenses, subject to certain limits, unless you can show that you alone paid the expenses. Ez 1040 online     state income tax   file a separate state income tax return     the state income tax you alone paid during the year. Ez 1040 online         file a joint state income tax return and you and your spouse are jointly and individually liable for the full amount of the state income tax     the state income tax you alone paid during the year. Ez 1040 online         file a joint state income tax return and you  are liable for only your own share of state  income tax     the smaller of: the state income tax you alone paid during the year, or the total state income tax you and your spouse paid during the year multiplied by the following fraction. Ez 1040 online The numerator is your gross income and the denominator  is your combined gross income. Ez 1040 online     property tax   paid the tax on property held as tenants by the entirety     the property tax you alone paid. Ez 1040 online     mortgage interest   paid the interest on a qualified home1 held  as tenants by the entirety     the mortgage interest you alone paid. Ez 1040 online     casualty loss   have a casualty loss on a home you own  as tenants by the entirety     half of the loss, subject to the deduction limits. Ez 1040 online Neither spouse may report the total casualty loss. Ez 1040 online 1 For more information on a qualified home and deductible mortgage interest, see Publication 936, Home Mortgage Interest Deduction. Ez 1040 online Dividing itemized deductions. Ez 1040 online   You may be able to claim itemized deductions on a separate return for certain expenses that you paid separately or jointly with your spouse. Ez 1040 online See Table 1, later. Ez 1040 online Separate returns may give you a higher tax. Ez 1040 online   Some married couples file separate returns because each wants to be responsible only for his or her own tax. Ez 1040 online There is no joint liability. Ez 1040 online But in almost all instances, if you file separate returns, you will pay more combined federal tax than you would with a joint return. Ez 1040 online This is because the following special rules apply if you file a separate return. Ez 1040 online Your tax rate generally will be higher than it would be on a joint return. Ez 1040 online Your exemption amount for figuring the alternative minimum tax will be half of that allowed a joint return filer. Ez 1040 online You cannot take the credit for child and dependent care expenses in most cases. Ez 1040 online You cannot take the earned income credit. Ez 1040 online You cannot take the exclusion or credit for adoption expenses in most cases. Ez 1040 online You cannot take the credit for higher education expenses (American opportunity and lifetime learning credits), the deduction for student loan interest, or the tuition and fees deduction. Ez 1040 online You cannot exclude the interest from qualified savings bonds that you used for higher education expenses. Ez 1040 online If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You will have to include in income more (up to 85%) of any social security or equivalent railroad retirement benefits you received. Ez 1040 online Your income limits that reduce the child tax credit, the retirement savings contributions credit, itemized deductions, and the deduction for personal exemptions are half of the limits for a joint return filer. Ez 1040 online Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). Ez 1040 online Your basic standard deduction, if allowable, is half of that allowed a joint return filer. Ez 1040 online See Itemized deductions , earlier. Ez 1040 online Joint return after separate returns. Ez 1040 online   If either you or your spouse (or both of you) file a separate return, you generally can change to a joint return within 3 years from the due date (not including extensions) of the separate return or returns. Ez 1040 online This applies to a return either of you filed claiming married filing separately, single, or head of household filing status. Ez 1040 online Use Form 1040X to change your filing status. Ez 1040 online Separate returns after joint return. Ez 1040 online   After the due date of your return, you and your spouse cannot file separate returns if you previously filed a joint return. Ez 1040 online Exception. Ez 1040 online   A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. Ez 1040 online The personal representative has 1 year from the due date (including extensions) of the joint return to make the change. Ez 1040 online Head of Household Filing as head of household has the following advantages. Ez 1040 online You can claim the standard deduction even if your spouse files a separate return and itemizes deductions. Ez 1040 online Your standard deduction is higher than is allowed if you claim a filing status of single or married filing separately. Ez 1040 online Your tax rate usually will be lower than it is if you claim a filing status of single or married filing separately. Ez 1040 online You may be able to claim certain credits (such as the dependent care credit and the earned income credit) you cannot claim if your filing status is married filing separately. Ez 1040 online Income limits that reduce your child tax credit, retirement savings contributions credit, itemized deductions, and the deduction for personal exemptions are higher than the income limits if you claim a filing status of married filing separately. Ez 1040 online Requirements. Ez 1040 online   You may be able to file as head of household if you meet all the following requirements. Ez 1040 online You are unmarried or “considered unmarried” on the last day of the year. Ez 1040 online You paid more than half the cost of keeping up a home for the year. Ez 1040 online A “qualifying person” lived with you in the home for more than half the year (except for temporary absences, such as school). Ez 1040 online However, if the “qualifying person” is your dependent parent, he or she does not have to live with you. Ez 1040 online See Special rule for parent , later, under Qualifying person. Ez 1040 online Considered unmarried. Ez 1040 online   You are considered unmarried on the last day of the tax year if you meet all the following tests. Ez 1040 online You file a separate return. Ez 1040 online A separate return includes a return claiming married filing separately, single, or head of household filing status. Ez 1040 online You paid more than half the cost of keeping up your home for the tax year. Ez 1040 online Your spouse did not live in your home during the last 6 months of the tax year. Ez 1040 online Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. Ez 1040 online See Temporary absences , later. Ez 1040 online Your home was the main home of your child, stepchild, or foster child for more than half the year. Ez 1040 online (See Qualifying person , later, for rules applying to a child's birth, death, or temporary absence during the year. Ez 1040 online ) You must be able to claim an exemption for the child. Ez 1040 online However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rule described later in Special rule for divorced or separated parents (or parents who live apart) under Exemptions for Dependents. Ez 1040 online The general rules for claiming an exemption for a dependent are shown later in Table 3. Ez 1040 online    If you were considered married for part of the year and lived in a community property state (one of the states listed later under Community Property), special rules may apply in determining your income and expenses. Ez 1040 online See Publication 555 for more information. Ez 1040 online Nonresident alien spouse. Ez 1040 online   If your spouse was a nonresident alien at any time during the tax year, and you have not chosen to treat your spouse as a resident alien, you are considered unmarried for head of household purposes. Ez 1040 online However, your spouse is not a qualifying person for head of household purposes. Ez 1040 online You must have another qualifying person and meet the other requirements to file as head of household. Ez 1040 online Keeping up a home. Ez 1040 online   You are keeping up a home only if you pay more than half the cost of its upkeep for the year. Ez 1040 online This includes rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. Ez 1040 online This does not include the cost of clothing, education, medical treatment, vacations, life insurance, or transportation for any member of the household. Ez 1040 online Qualifying person. Ez 1040 online    Table 2, later, shows who can be a qualifying person. Ez 1040 online Any person not described in Table 2 is not a qualifying person. Ez 1040 online   Generally, the qualifying person must live with you for more than half of the year. Ez 1040 online Table 2. Ez 1040 online Who Is a Qualifying Person Qualifying You To File as Head of Household?1 Caution. Ez 1040 online See the text of this publication for the other requirements you must meet to claim head of household filing status. Ez 1040 online IF the person is your . Ez 1040 online . Ez 1040 online . Ez 1040 online AND . Ez 1040 online . Ez 1040 online . Ez 1040 online THEN that person is . Ez 1040 online . Ez 1040 online . Ez 1040 online   qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2 he or she is single a qualifying person, whether or not you can claim an exemption for the person. Ez 1040 online     he or she is married and you can claim an exemption for him or her a qualifying person. Ez 1040 online     he or she is married and you cannot claim an exemption for him or her not a qualifying person. Ez 1040 online 3     qualifying relative4 who is your father or mother you can claim an exemption for him or her5 a qualifying person. Ez 1040 online 6     you cannot claim an exemption for him or her not a qualifying person. Ez 1040 online     qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests) he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you in Publication 501 and you can claim an exemption for him or her5 a qualifying person. Ez 1040 online     he or she did not live with you more than half the year not a qualifying person. Ez 1040 online     he or she is not related to you in one of the ways listed under Relatives who do not have to live with you in Publication 501 and is your qualifying relative only because he or she lived with you all year as a member of your household not a qualifying person. Ez 1040 online     you cannot claim an exemption for him or her not a qualifying person. Ez 1040 online   1 A person cannot qualify more than one taxpayer to use the head of household filing status for the year. Ez 1040 online 2 See Table 3, later, for the tests that must be met to be a qualifying child. Ez 1040 online Note. Ez 1040 online If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of Divorced or Separated Parents (or Parents Who Live Apart) under Exemptions for Dependents, later. Ez 1040 online If you are the custodial parent and those rules apply, the child is generally your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. Ez 1040 online 3 This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. Ez 1040 online 4 See Table 3, later, for the tests that must be met to be a qualifying relative. Ez 1040 online 5 If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. Ez 1040 online See Multiple Support Agreement in Publication 501. Ez 1040 online 6 See Special rule for parent . Ez 1040 online Special rule for parent. Ez 1040 online   If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. Ez 1040 online However, you must be able to claim an exemption for your father or mother. Ez 1040 online Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. Ez 1040 online You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. Ez 1040 online Death or birth. Ez 1040 online   If the person for whom you kept up a home was born or died in 2013, you still may be able to file as head of household. Ez 1040 online If the person is your qualifying child, the child must have lived with you for more than half the part of the year he or she was alive. Ez 1040 online If the person is anyone else, see Publication 501. Ez 1040 online Temporary absences. Ez 1040 online   You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. Ez 1040 online It must be reasonable to assume that the absent person will return to the home after the temporary absence. Ez 1040 online You must continue to keep up the home during the absence. Ez 1040 online Kidnapped child. Ez 1040 online   You may be eligible to file as head of household even if the child who is your qualifying person has been kidnapped. Ez 1040 online You can claim head of household filing status if all the following statements are true. Ez 1040 online The child must be presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Ez 1040 online In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Ez 1040 online You would have qualified for head of household filing status if the child had not been kidnapped. Ez 1040 online   This treatment applies for all years until the earlier of: The year the child is returned, The year there is a determination that the child is dead, or The year the child would have reached age 18. Ez 1040 online More information. Ez 1040 online   For more information on filing as head of household, see Publication 501. Ez 1040 online Exemptions You can deduct $3,900 for each exemption you claim in 2013. Ez 1040 online However, if your adjusted gross income is more than $150,000, see Phaseout of Exemptions , later. Ez 1040 online There are two types of exemptions: personal exemptions and exemptions for dependents. Ez 1040 online If you are entitled to claim an exemption for a dependent (such as your child), that dependent cannot claim his or her personal exemption on his or her own tax return. Ez 1040 online Personal Exemptions You can claim your own exemption unless someone else can claim it. Ez 1040 online If you are married, you may be able to take an exemption for your spouse. Ez 1040 online These are called personal exemptions. Ez 1040 online Exemption for Your Spouse Your spouse is never considered your dependent. Ez 1040 online Joint return. Ez 1040 online   On a joint return, you can claim one exemption for yourself and one for your spouse. Ez 1040 online   If your spouse had any gross income, you can claim his or her exemption only if you file a joint return. Ez 1040 online Separate return. Ez 1040 online   If you file a separate return, you can take an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. Ez 1040 online If your spouse is the dependent of another taxpayer, you cannot claim an exemption for your spouse even if the other taxpayer does not actually claim your spouse's exemption. Ez 1040 online Alimony paid. Ez 1040 online   If you paid alimony to your spouse, you cannot take an exemption for your spouse. Ez 1040 online This is because alimony is gross income to the spouse who received it. Ez 1040 online Divorced or separated spouse. Ez 1040 online   If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. Ez 1040 online This rule applies even if you provided all of your former spouse's support. Ez 1040 online Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. Ez 1040 online You can claim an exemption for a dependent even if your dependent files a return. Ez 1040 online The term “dependent” means: A qualifying child, or A qualifying relative. Ez 1040 online Table 3 shows the tests that must be met to be either a qualifying child or qualifying relative, plus the additional requirements for claiming an exemption for a dependent. Ez 1040 online For detailed information, see Publication 501. Ez 1040 online   Dependent not allowed a personal exemption. Ez 1040 online If you can claim an exemption for your dependent, the dependent cannot claim his or her own exemption on his or her own tax return. Ez 1040 online This is true even if you do not claim the dependent's exemption on your return. Ez 1040 online It is also true if the decedent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. Ez 1040 online Table 3. Ez 1040 online Overview of the Rules for Claiming an Exemption for a Dependent Caution. Ez 1040 online This table is only an overview of the rules. Ez 1040 online For details, see Publication 501. Ez 1040 online • You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer. Ez 1040 online • You cannot claim a married person who files a joint return as a dependent unless that joint return is only a claim for refund and there would be no tax liability for either spouse on separate returns. Ez 1040 online • You cannot claim a person as a dependent unless that person is a U. Ez 1040 online S. Ez 1040 online citizen, U. Ez 1040 online S. Ez 1040 online resident alien, U. Ez 1040 online S. Ez 1040 online national, or a resident of Canada or Mexico. Ez 1040 online 1 • You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. Ez 1040 online   Tests To Be a Qualifying Child   Tests To Be a Qualifying Relative 1. Ez 1040 online     2. Ez 1040 online       3. Ez 1040 online    4. Ez 1040 online    5. Ez 1040 online    The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Ez 1040 online   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled. Ez 1040 online   The child must have lived with you for more than half of the year. Ez 1040 online 2   The child must not have provided more than half of his or her own support for the year. Ez 1040 online   The child is not filing a joint return for the year (unless that joint return is filed only as a claim for refund of withheld income tax or estimated tax paid). Ez 1040 online   1. Ez 1040 online    2. Ez 1040 online       3. Ez 1040 online    4. Ez 1040 online The person cannot be your qualifying child or the qualifying child of anyone else. Ez 1040 online   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you in Publication 501 or (b) must live with you all year as a member of your household 2 (and your relationship must not violate local law). Ez 1040 online   The person's gross income for the year must be less than $3,900. Ez 1040 online 3   You must provide more than half of the person's total support for the year. Ez 1040 online 4 If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. Ez 1040 online See Special Rule for Qualifying Child of More Than One Person , later, to find out which person is the person entitled to claim the child as a qualifying child. Ez 1040 online     1 Exception exists for certain adopted children. Ez 1040 online 2 Exceptions exist for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. Ez 1040 online 3 Exception exists for persons who are disabled and have income from a sheltered workshop. Ez 1040 online 4 Exceptions exist for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. Ez 1040 online See Publication 501. Ez 1040 online You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. Ez 1040 online For more information, see the instructions for your tax return if you file Form 1040A or 1040. Ez 1040 online Children of Divorced or Separated Parents (or Parents Who Live Apart) In most cases, because of the residency test (see item 3 under Tests To Be a Qualifying Child in Table 3), a child of divorced or separated parents is the qualifying child of the custodial parent. Ez 1040 online However, the child will be treated as the qualifying child of the noncustodial parent if the special rule (discussed next) applies. Ez 1040 online Special rule for divorced or separated parents (or parents who live apart). Ez 1040 online   A child will be treated as the qualifying child of his or her noncustodial parent if all four of the following statements are true. Ez 1040 online The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of the year, whether or not they are or were married. Ez 1040 online The child received over half of his or her support for the year from the parents. Ez 1040 online The child is in the custody of one or both parents for more than half of the year. Ez 1040 online Either of the following applies. Ez 1040 online The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. Ez 1040 online (If the decree or agreement went into effect after 1984, see Divorce decree or separation agreement that went into effect after 1984 and before 2009 , later. Ez 1040 online A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during 2013. Ez 1040 online See Child support under pre-1985 agreement , later. Ez 1040 online Custodial parent and noncustodial parent. Ez 1040 online   The custodial parent is the parent with whom the child lived for the greater number of nights during the year. Ez 1040 online The other parent is the noncustodial parent. Ez 1040 online   If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the year. Ez 1040 online   A child is treated as living with a parent for a night if the child sleeps: At that parent's home, whether or not the parent is present, or In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation together). Ez 1040 online Equal number of nights. Ez 1040 online   If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income. Ez 1040 online December 31. Ez 1040 online   The night of December 31 is treated as part of the year in which it begins. Ez 1040 online For example, December 31, 2013, is treated as part of 2013. Ez 1040 online Emancipated child. Ez 1040 online   If a child is emancipated under state law, the child is treated as not living with either parent. Ez 1040 online See Examples 5 and 6 . Ez 1040 online Absences. Ez 1040 online    If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. Ez 1040 online But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that night. Ez 1040 online Parent works at night. Ez 1040 online   If, due to a parent's nighttime work schedule, a child lives for a greater number of days but not nights with the parent who works at night, that parent is treated as the custodial parent. Ez 1040 online On a school day, the child is treated as living at the primary residence registered with the school. Ez 1040 online Example 1 – child lived with one parent greater number of nights. Ez 1040 online You and your child’s other parent are divorced. Ez 1040 online In 2013, your child lived with you 210 nights and with the other parent 156 nights. Ez 1040 online You are the custodial parent. Ez 1040 online Example 2 – child is away at camp. Ez 1040 online In 2013, your daughter lives with each parent for alternate weeks. Ez 1040 online In the summer, she spends 6 weeks at summer camp. Ez 1040 online During the time she is at camp, she is treated as living with you for 3 weeks and with her other parent, your ex-spouse, for 3 weeks because this is how long she would have lived with each parent if she had not attended summer camp. Ez 1040 online Example 3 – child lived same number of days with each parent. Ez 1040 online Your son lived with you 180 nights during the year and lived the same number of nights with his other parent, your ex-spouse. Ez 1040 online Your adjusted gross income is $40,000. Ez 1040 online Your ex-spouse's adjusted gross income is $25,000. Ez 1040 online You are treated as your son's custodial parent because you have the higher adjusted gross income. Ez 1040 online Example 4 – child is at parent’s home but with other parent. Ez 1040 online Your son normally lives with you during the week and with his other parent, your ex-spouse, every other weekend. Ez 1040 online You become ill and are hospitalized. Ez 1040 online The other parent lives in your home with your son for 10 consecutive days while you are in the hospital. Ez 1040 online Your son is treated as living with you during this 10-day period because he was living in your home. Ez 1040 online Example 5 – child emancipated in May. Ez 1040 online When your son turned age 18 in May 2013, he became emancipated under the law of the state where he lives. Ez 1040 online As a result, he is not considered in the custody of his parents for more than half of the year. Ez 1040 online The special rule for children of divorced or separated parents (or parents who live apart) does not apply. Ez 1040 online Example 6 – child emancipated in August. Ez 1040 online Your daughter lives with you from January 1, 2013, until May 31, 2013, and lives with her other parent, your ex-spouse, from June 1, 2013, through the end of the year. Ez 1040 online She turns 18 and is emancipated under state law on August 1, 2013. Ez 1040 online Because she is treated as not living with either parent beginning on August 1, she is treated as living with you the greater number of nights in 2013. Ez 1040 online You are the custodial parent. Ez 1040 online Written declaration. Ez 1040 online    The custodial parent must use either Form 8332 or a similar statement (containing the same information required by the form) to make the written declaration to release the exemption to the noncustodial parent. Ez 1040 online The noncustodial parent must attach a copy of the form or statement to his or her tax return. Ez 1040 online   The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. Ez 1040 online Divorce decree or separation agreement that went into effect after 1984 and before 2009. Ez 1040 online   If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. Ez 1040 online To be able to do this, the decree or agreement must state all three of the following. Ez 1040 online The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support. Ez 1040 online The custodial parent will not claim the child as a dependent for the year. Ez 1040 online The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent. Ez 1040 online   The noncustodial parent must attach all of the following pages of the decree or agreement to his or her return. Ez 1040 online The cover page (write the other parent's social security number on this page). Ez 1040 online The pages that include all of the information identified in items (1) through (3) above. Ez 1040 online The signature page with the other parent's signature and the date of the agreement. Ez 1040 online Post-2008 divorce decree or separation agreement. Ez 1040 online   If the decree or agreement went into effect after 2008, a noncustodial parent claiming an exemption for a child cannot attach pages from a divorce decree or separation agreement instead of Form 8332. Ez 1040 online The custodial parent must sign either a Form 8332 or a similar statement. Ez 1040 online The only purpose of this statement must be to release the custodial parent's claim to the child's exemption. Ez 1040 online The noncustodial parent must attach a copy to his or her return. Ez 1040 online The form or statement must release the custodial parent's claim to the child without any conditions. Ez 1040 online For example, the release must not depend on the noncustodial parent paying support. Ez 1040 online    The noncustodial parent must attach the required information even if it was filed with a return in an earlier year. Ez 1040 online Revocation of release of claim to an exemption. Ez 1040 online   The custodial parent can revoke a release of claim to exemption that he or she previously released to the noncustodial parent on Form 8332 or a similar statement. Ez 1040 online In order for the revocation to be effective for 2013, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2012 or earlier. Ez 1040 online The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the revocation. Ez 1040 online Remarried parent. Ez 1040 online   If you remarry, the support provided by your new spouse is treated as provided by you. Ez 1040 online Child support under pre-1985 agreement. Ez 1040 online   All child support payments actually received from the noncustodial parent under a pre-1985 agreement are considered used for the support of the child, even if such amounts are not actually spent for child support. Ez 1040 online Example. Ez 1040 online Under a pre-1985 agreement, the noncustodial parent provides $1,200 for the child's support. Ez 1040 online This amount is considered support provided by the noncustodial parent even if the $1,200 was actually spent on things other than support. Ez 1040 online Parents who never married. Ez 1040 online   The special rule for divorced or separated parents also applies to parents who never married and lived apart at all times during the last 6 months of the year. Ez 1040 online Alimony. Ez 1040 online   Payments to your spouse that are includible in his or her gross income as either alimony, separate maintenance payments, or similar payments from an estate or trust, are not treated as a payment for the support of a dependent. Ez 1040 online Special Rule for Qualifying Child of More Than One Person If your qualifying child is not a qualifying child of anyone else, this special rule does not apply to you and you do not need to read about it. Ez 1040 online This is also true if your qualifying child is not a qualifying child of anyone else except your spouse with whom you file a joint return. Ez 1040 online If a child is treated as the qualifying child of the noncustodial parent under the Special rule for divorced or separated parents (or parents who live apart), earlier, see Applying this special rule to divorced or separated parents (or parents who live apart), later. Ez 1040 online Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. Ez 1040 online (For a description of these tests, see list items 1 through 5 under Tests To Be a Qualifying Child in Table 3). Ez 1040 online Although the child meets the conditions to be a qualifying child of each of these persons, only one person can actually use the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). Ez 1040 online The exemption for the child. Ez 1040 online The child tax credit. Ez 1040 online Head of household filing status. Ez 1040 online The credit for child and dependent care expenses. Ez 1040 online The exclusion from income for dependent care benefits. Ez 1040 online The earned income credit. Ez 1040 online The other person cannot take any of these benefits based on this qualifying child. Ez 1040 online In other words, you and the other person cannot agree to divide these tax benefits between you. Ez 1040 online The other person cannot take any of these tax benefits unless he or she has a different qualifying child. Ez 1040 online Tiebreaker rules. Ez 1040 online   To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker rules apply. Ez 1040 online If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Ez 1040 online If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. Ez 1040 online If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the year. Ez 1040 online If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the year. Ez 1040 online If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. Ez 1040 online If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' total AGI evenly between them; see Publication 501 for details. Ez 1040 online   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. Ez 1040 online Example 1—separated parents. Ez 1040 online You, your husband, and your 10-year-old son lived together until August 1, 2013, when your husband moved out of the household. Ez 1040 online In August and September, your son lived with you. Ez 1040 online For the rest of the year, your son lived with your husband, the boy's father. Ez 1040 online Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship, age, support, and joint return tests for both of you. Ez 1040 online At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the special rule for divorced or separated parents (or parents who live apart) does not apply. Ez 1040 online You and your husband will file separate returns. Ez 1040 online Your husband agrees to let you treat your son as a qualifying child. Ez 1040 online This means, if your husband does not claim your son as a qualifying child, you can claim your son as a dependent and treat him as a qualifying child for the child tax credit and exclusion for dependent care benefits, if you qualify for each of those tax benefits. Ez 1040 online However, you cannot claim head of household filing status because you and your husband did not live apart the last 6 months of the year. Ez 1040 online And, as a result of your filing status being married filing separately, you cannot claim the earned income credit or the credit for child and dependent care expenses. Ez 1040 online Example 2—separated parents claim same child. Ez 1040 online The facts are the same as in Example 1 except that you and your husband both claim your son as a qualifying child. Ez 1040 online In this case, only your husband will be allowed to treat your son as a qualifying child. Ez 1040 online This is because, during 2013, the boy lived with him longer than with you. Ez 1040 online If you claimed an exemption, the child tax credit, or the exclusion for dependent care benefits for your son, the IRS will disallow your claim to all these tax benefits, unless you have another qualifying child. Ez 1040 online In addition, because you and your husband did not live apart the last 6 months of the year, your husband cannot claim head of household filing status. Ez 1040 online And, as a result of his filing status being married filing separately, he cannot claim the earned income credit or the credit for child and dependent care expenses. Ez 1040 online Applying this special rule to divorced or separated parents (or parents who live apart). Ez 1040 online   If a child is treated as the qualifying child of the noncustodial parent under the special rule for divorced or separated parents (or parents who live apart) described earlier, only the noncustodial parent can claim an exemption and the child tax credit for the child. Ez 1040 online However, the noncustodial parent cannot claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. Ez 1040 online Only the custodial parent, if eligible, or another eligible taxpayer can claim the child as a qualifying child for those four tax benefits. Ez 1040 online If the child is the qualifying child of more than one person for those tax benefits, the tiebreaker rules determine which person can treat the child as a qualifying child. Ez 1040 online Example 1. Ez 1040 online You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Ez 1040 online Your AGI is $10,000. Ez 1040 online Your mother's AGI is $25,000. Ez 1040 online Your son's father does not live with you or your son. Ez 1040 online Under the rules for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for the child if he meets all the requirements to do so. Ez 1040 online Because of this, you cannot claim an exemption or the child tax credit for your son. Ez 1040 online However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the earned income credit. Ez 1040 online You and your mother did not have any child care expenses or dependent care benefits, but the boy is a qualifying child of both you and your mother for head of household filing status and the earned income credit because he meets the relationship, age, residency, support, and joint return tests for both you and your mother. Ez 1040 online (Note: The support test does not apply for the earned income credit. Ez 1040 online ) However, you agree to let your mother claim your son. Ez 1040 online This means she can claim him for head of household filing status and the earned income credit if she qualifies for each and if you do not claim him as a qualifying child for the earned income credit. Ez 1040 online (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the home. Ez 1040 online ) Example 2. Ez 1040 online The facts are the same as in Example 1 except that your AGI is $25,000 and your mother's AGI is $21,000. Ez 1040 online Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Ez 1040 online Example 3. Ez 1040 online The facts are the same as in Example 1 except that you and your mother both claim your son as a qualifying child for the earned income credit. Ez 1040 online Your mother also claims him as a qualifying child for head of household filing status. Ez 1040 online You, as the child's parent, will be the only one allowed to claim your son as a qualifying child for the earned income credit. Ez 1040 online The IRS will disallow your mother's claim to the earned income credit and head of household filing status unless she has another qualifying child. Ez 1040 online Phaseout of Exemptions The amount you can claim as a deduction for exemptions is reduced once your adjusted gross income (AGI) goes above a certain level for your filing status. Ez 1040 online These levels are as follows:    Filing Status AGI Level That Reduces Exemption Amount Married filing separately $150,000 Single 250,000 Head of household 275,000 Married filing jointly 300,000 Qualifying widow(er) 300,000 You must reduce the dollar amount of your exemptions by 2% for each $2,500, or part of $2,500 ($1,250 if you are married filing separately), that your AGI exceeds the amount shown above for your filing status. Ez 1040 online If your AGI exceeds the amount shown above by more than $122,500 ($61,250 if married filing separately), the amount of your deduction for exemptions is reduced to zero. Ez 1040 online If your AGI exceeds the level for your filing status, use the Deduction for Exemptions Worksheet found in the instructions for Form 1040 or Form 1040NR to figure the amount of your deduction for exemptions. Ez 1040 online Alimony Alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. Ez 1040 online It does not include voluntary payments that are not made under a divorce or separation instrument. Ez 1040 online Alimony is deductible by the payer and must be included in the spouse's or former spouse's income. Ez 1040 online Although this discussion is generally written for the payer of the alimony, the recipient can use the information to determine whether an amount received is alimony. Ez 1040 online To be alimony, a payment must meet certain requirements. Ez 1040 online There are some differences between the requirements that apply to payments under instruments executed after 1984 and to payments under instruments executed before 1985. Ez 1040 online The general requirements that apply to payments regardless of when the divorce or separation instrument was executed and the specific requirements that apply to post-1984 instruments (and, in certain cases, some pre-1985 instruments) are discussed in this publication. Ez 1040 online See, Instruments Executed Before 1985 , later, if you are looking for information on where to find the specific requirements that apply to pre-1985 instruments. Ez 1040 online Spouse or former spouse. Ez 1040 online   Unless otherwise stated, the term “spouse” includes former spouse. Ez 1040 online Divorce or separation instrument. Ez 1040 online   The term “divorce or separation instrument” means: A decree of divorce or separate maintenance or a written instrument incident to that decree, A written separation agreement, or A decree or any type of court order requiring a spouse to make payments for the support or maintenance of the other spouse. Ez 1040 online This includes a temporary decree, an interlocutory (not final) decree, and a decree of alimony pendente lite (while awaiting action on the final decree or agreement). Ez 1040 online Invalid decree. Ez 1040 online   Payments under a divorce decree can be alimony even if the decree's validity is in question. Ez 1040 online A divorce decree is valid for tax purposes until a court having proper jurisdiction holds it invalid. Ez 1040 online Amended instrument. Ez 1040 online   An amendment to a divorce decree may change the nature of your payments. Ez 1040 online Amendments are not ordinarily retroactive for federal tax purposes. Ez 1040 online However, a retroactive amendment to a divorce decree correcting a clerical error to reflect the original intent of the court will generally be effective retroactively for federal tax purposes. Ez 1040 online Example 1. Ez 1040 online A court order retroactively corrected a mathematical error under your divorce decree to express the original intent to spread the payments over more than 10 years. Ez 1040 online This change also is effective retroactively for federal tax purposes. Ez 1040 online Example 2. Ez 1040 online Your original divorce decree did not fix any part of the payment as child support. Ez 1040 online To reflect the true intention of the court, a court order retroactively corrected the error by designating a part of the payment as child support. Ez 1040 online The amended order is effective retroactively for federal tax purposes. Ez 1040 online Deducting alimony paid. Ez 1040 online   You can deduct alimony you paid, whether or not you itemize deductions on your return. Ez 1040 online You must file Form 1040. Ez 1040 online You cannot use Form 1040A, 1040EZ, or 1040NR. Ez 1040 online Enter the amount of alimony you paid on Form 1040, line 31a. Ez 1040 online In the space provided on line 31b, enter your spouse's social security number (SSN) or IRS individual taxpayer identification number (ITIN). Ez 1040 online If you paid alimony to more than one person, enter the SSN or ITIN of one of the recipients. Ez 1040 online Show the SSN or ITIN and amount paid to each other recipient on an attached statement. Ez 1040 online Enter your total payments on line 31a. Ez 1040 online If you do not provide your spouse's SSN or ITIN, you may have to pay a $50 penalty and your deduction may be disallowed. Ez 1040 online Reporting alimony received. Ez 1040 online   Report alimony you received as income on Form 1040, line 11, or on Schedule NEC (Form 1040NR), line 12. Ez 1040 online You cannot use Form 1040A, 1040EZ, or 1040NR-EZ. Ez 1040 online    You must give the person who paid the alimony your SSN or ITIN. Ez 1040 online If you do not, you may have to pay a $50 penalty. Ez 1040 online Withholding on nonresident aliens. Ez 1040 online   If you are a U. Ez 1040 online S. Ez 1040 online citizen or resident alien and you pay alimony to a nonresident alien spouse, you may have to withhold income tax at a rate of 30% on each payment. Ez 1040 online However, many tax treaties provide for an exemption from withholding for alimony payments. Ez 1040 online For more information, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities. Ez 1040 online General Rules The following rules apply to alimony regardless of when the divorce or separation instrument was executed. Ez 1040 online Payments not alimony. Ez 1040 online   Not all payments under a divorce or separation instrument are alimony. Ez 1040 online Alimony does not include: Child support, Noncash property settlements, Payments that are your spouse's part of community income, as explained later under Community Property , Payments to keep up the payer's property, or Use of the payer's property. Ez 1040 online Example. Ez 1040 online Under your written separation agreement, your spouse lives rent-free in a home you own and you must pay the mortgage, real estate taxes, insurance, repairs, and utilities for the home. Ez 1040 online Because you own the home and the debts are yours, your payments for the mortgage, real estate taxes, insurance, and repairs are not alimony. Ez 1040 online Neither is the value of your spouse's use of the home. Ez 1040 online If they otherwise qualify, you can deduct the payments for utilities as alimony. Ez 1040 online Your spouse must report them as income. Ez 1040 online If you itemize deductions, you can deduct the real estate taxes and, if the home is a qualified home, you can also include the interest on the mortgage in figuring your deductible interest. Ez 1040 online However, if your spouse owned the home, see Example 2 under Payments to a third party, later. Ez 1040 online If you owned the home jointly with your spouse, see Table 4. Ez 1040 online For more information on a qualified home and deductible mortgage interest, see Publication 936, Home Mortgage Interest Deduction. Ez 1040 online Child support. Ez 1040 online   To determine whether a payment is child support, see the discussion under Instruments Executed After 1984 , later. Ez 1040 online If your divorce or separation agreement was executed before 1985, see the 2004 revision of Publication 504 available at www. Ez 1040 online irs. Ez 1040 online gov/formspubs. Ez 1040 online Underpayment. Ez 1040 online   If both alimony and child support payments are called for by your divorce or separation instrument, and you pay less than the total required, the payments apply first to child support and then to alimony. Ez 1040 online Example. Ez 1040 online Your divorce decree calls for you to pay your former spouse $200 a month ($2,400 ($200 x 12) a year) as child support and $150 a month ($1,800 ($150 x 12) a year) as alimony. Ez 1040 online If you pay the full amount of $4,200 ($2,400 + $1,800) during the year, you can deduct $1,800 as alimony and your former spouse must report $1,800 as alimony received. Ez 1040 online If you pay only $3,600 during the year, $2,400 is child support. Ez 1040 online You can deduct only $1,200 ($3,600 – $2,400) as alimony and your former spouse must report $1,200 as alimony received. Ez 1040 online Payments to a third party. Ez 1040 online   Cash payments, checks, or money orders to a third party on behalf of your spouse under the terms of your divorce or separation instrument can be alimony, if they otherwise qualify. Ez 1040 online These include payments for your spouse's medical expenses, housing costs (rent, utilities, etc. Ez 1040 online ), taxes, tuition, etc. Ez 1040 online The payments are treated as received by your spouse and then paid to the third party. Ez 1040 online Example 1. Ez 1040 online Under your divorce decree, you must pay your former spouse's medical and dental expenses. Ez 1040 online If the payments otherwise qualify, you can deduct them as alimony on your return. Ez 1040 online Your former spouse must report them as alimony received and can include them in figuring deductible medical expenses. Ez 1040 online Example 2. Ez 1040 online Under your separation agreement, you must pay the real estate taxes, mortgage payments, and insurance premiums on a home owned by your spouse. Ez 1040 online If they otherwise qualify, you can deduct the payments as alimony on your return, and your spouse must report them as alimony received. Ez 1040 online If itemizing deductions, your spouse can deduct the real estate taxes and, if the home is a qualified home, also include the interest on the mortgage in figuring deductible interest. Ez 1040 online However, if you owned the home, see the example under Payments not alimony , earlier. Ez 1040 online If you owned the home jointly with your spouse, see Table 4. Ez 1040 online Life insurance premiums. Ez 1040 online   Alimony includes premiums you must pay under your divorce or separation instrument for insurance on your life to the extent your spouse owns the policy. Ez 1040 online Payments for jointly-owned home. Ez 1040 online   If your divorce or separation instrument states that you must pay expenses for a home owned by you and your spouse or former spouse, some of your payments may be alimony. Ez 1040 online See Table 4. Ez 1040 online   However, if your spouse owned the home, see Example 2 under Payments to a third party, earlier. Ez 1040 online If you owned the home, see the example under Payments not alimony , earlier. Ez 1040 online Table 4. Ez 1040 online Expenses for a Jointly-Owned Home Use the table below to find how much of your payment is alimony and how much you can claim as an itemized deduction. Ez 1040 online IF you must pay all of the . Ez 1040 online . Ez 1040 online . Ez 1040 online AND your home is . Ez 1040 online . Ez 1040 online . Ez 1040 online THEN you can deduct and your spouse (or former spouse) must include as alimony . Ez 1040 online . Ez 1040 online . Ez 1040 online AND you can claim as an itemized deduction . Ez 1040 online . Ez 1040 online . Ez 1040 online   mortgage payments (principal and interest) jointly owned half of the total payments half of the interest as interest expense (if the home is a qualified home). Ez 1040 online 1   real estate taxes and home insurance held as tenants in common half of the total payments half of the real estate taxes2 and none of the home insurance. Ez 1040 online     held as tenants by the entirety or in joint tenancy none of the payments all of the real estate taxes and none of the home insurance. Ez 1040 online 1 Your spouse (or former spouse) can deduct the other half of the interest if the home is a qualified home. Ez 1040 online  2 Your spouse (or former spouse) can deduct the other half of the real estate taxes. Ez 1040 online Instruments Executed After 1984 The following rules for alimony apply to payments under divorce or separation instruments executed after 1984. Ez 1040 online Exception for instruments executed before 1985. Ez 1040 online   There are two situations where the rules for instruments executed after 1984 apply to instruments executed before 1985. Ez 1040 online A divorce or separation instrument executed before 1985 and then modified after 1984 to specify that the after-1984 rules will apply. Ez 1040 online A temporary divorce or separation instrument executed before 1985 and incorporated into, or adopted by, a final decree executed after 1984 that: Changes the amount or period of payment, or Adds or deletes any contingency or condition. Ez 1040 online   For the rules for alimony payments under pre-1985 instruments not meeting these exceptions, see the 2004 revision of Publication 504 available at www. Ez 1040 online irs. Ez 1040 online gov/formspubs. Ez 1040 online Example 1. Ez 1040 online In November 1984, you and your former spouse executed a written separation agreement. Ez 1040 online In February 1985, a decree of divorce was substituted for the written separation agreement. Ez 1040 online The decree of divorce did not change the terms for the alimony you pay your former spouse. Ez 1040 online The decree of divorce is treated as executed before 1985. Ez 1040 online Alimony payments under this decree are not subject to the rules for payments under instruments executed after 1984. Ez 1040 online Example 2. Ez 1040 online The facts are the same as in Example 1 except that the decree of divorce changed the amount of the alimony. Ez 1040 online In this example, the decree of divorce is not treated as executed before 1985. Ez 1040 online The alimony payments are subject to the rules for payments under instruments executed after 1984. Ez 1040 online Alimony Requirements A payment to or for a spouse under a divorce or separation instrument is alimony if the spouses do not file a joint return with each other and all the following requirements are met. Ez 1040 online The payment is in cash. Ez 1040 online The instrument does not designate the payment as not alimony. Ez 1040 online The spouses are not members of the same household at the time the payments are made. Ez 1040 online This requirement applies only if the spouses are legally separated under a decree of divorce or separate maintenance. Ez 1040 online There is no liability to make any payment (in cash or property) after the death of the recipient spouse. Ez 1040 online The payment is not treated as child support. Ez 1040 online Each of these requirements is discussed next. Ez 1040 online Cash payment requirement. Ez 1040 online   Only cash payments, including checks and money orders, qualify as alimony. Ez 1040 online The following do not qualify as alimony. Ez 1040 online Transfers of services or property (including a debt instrument of a third party or an annuity contract). Ez 1040 online Execution of a debt instrument by the payer. Ez 1040 online The use of the payer's property. Ez 1040 online Payments to a third party. Ez 1040 online   Cash payments to a third party under the terms of your divorce or separation instrument can qualify as cash payments to your spouse. Ez 1040 online See Payments to a third party under General Rules, earlier. Ez 1040 online   Also, cash payments made to a third party at the written request of your spouse may qualify as alimony if all the following requirements are met. Ez 1040 online The payments are in lieu of payments of alimony directly to your spouse. Ez 1040 online The written request states that both spouses intend the payments to be treated as alimony. Ez 1040 online You receive the written request from your spouse before you file your return for the year you made the payments. Ez 1040 online Payments designated as not alimony. Ez 1040 online   You and your spouse can designate that otherwise qualifying payments are not alimony. Ez 1040 online You do this by including a provision in your divorce or separation instrument that states the payments are not deductible as alimony by you and are excludable from your spouse's income. Ez 1040 online For this purpose, any instrument (written statement) signed by both of you that makes this designation and that refers to a previous written separation agreement is treated as a written separation agreement (and therefore a divorce or separation instrument). Ez 1040 online If you are subject to temporary support orders, the designation must be made in the original or a later temporary support order. Ez 1040 online   Your spouse can exclude the payments from income only if he or she attaches a copy of the instrument designating them as not alimony to his or her return. Ez 1040 online The copy must be attached each year the designation applies. Ez 1040 online Spouses cannot be members of the same household. Ez 1040 online   Payments to your spouse while you are members of the same household are not alimony if you are legally separated under a decree of divorce or separate maintenance. Ez 1040 online A home you formerly shared is considered one household, even if you physically separate yourselves in the home. Ez 1040 online   You are not treated as members of the same household if one of you is preparing to leave the household and does leave no later than 1 month after the date of the payment. Ez 1040 online Exception. Ez 1040 online   If you are not legally separated under a decree of divorce or separate maintenance, a payment under a written separation agreement, support decree, or other court order may qualify as alimony even if you are members of the same household when the payment is made. Ez 1040 online Liability for payments after death of recipient spouse. Ez 1040 online   If any part of payments you make must continue to be made for any period after your spouse's death, that part of your payments is not alimony whether made before or after the death. Ez 1040 online If all of the payments would continue, then none of the payments made before or after the death are alimony. Ez 1040 online   The divorce or separation instrument does not have to expressly state that the payments cease upon the
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SOI Tax Stats - Archive

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SOI Publications Archive

Here you'll find PDFs of SOI's historical publications. Beginning in 1916, Congress mandated the annual publication of statistics related to “the operation of the internal revenue laws.”

In 2009, SOI began digitizing nearly 500 print publications (and more than 50,000 pages) from its library. As a result of this effort, a wealth of historical tax data is now easily accessible in electronic format. The archive includes publications from 1916 through 1999. Publications for 2000 to present are available from the Tax Stats landing page here.

The oldest report available here was published in 1863. The Report of the Commissioner of Internal Revenue for 1863 contains information on the collection of revenue by source and district of collection. From 1863 to today, the Annual Report of the Commissioner of Internal Revenue, later called the IRS Data Book, presents an annual overview of IRS operations.

Early SOI publications, from 1916 to 1933, compiled all available tax information into one publication, the annual Statistics of Income Report. Beginning in 1934, SOI reported tax information for individuals and businesses separately, published as Parts 1 and 2 of the Statistics of Income Report, respectively. Beginning in the 1950s, these reports were replaced with annual and special reports, usually focused on single taxpayer groups.

In 1981, SOI introduced the SOI Bulletin, replacing many of its earlier reports with a quarterly publication that contains summary articles and tables on a wide range of tax topics.

All of the archive files are Adobe Acrobat PDFs. A free Adobe Acrobat reader is available for download, if needed. Please note: any reports or years of publications that are listed but not links are in the process of being digitized and will be uploaded as soon as they become available. Don't hesitate to contact us for any requests.

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1916–1933 Statistics of Income Reports

From 1916 to 1933, the Statistics of Income Report provided information on income taxes paid by individuals, corporations, partnerships, estates and trusts, as well as information on gift and estate taxes.

 

1934–1999 Tax Information from Individuals

This section contains archived reports on:

  • Individual income tax returns
  • Sales of capital assets
  • Estate and gift taxes
  • Personal wealth
  • Income tax returns of trusts or estates
  • Data by small area 
1929–1999 Tax Information from Businesses

Here you'll find archived reports on:

  • Corporations
  • Partnerships
  • Sole proprietorships
  • Farmers' cooperatives 
  • Foreign corporations
1863–1999 IRS Data Books

The IRS Data Book provides annual data on collecting revenue, issuing refunds, enforcing tax law, assisting taxpayers, and the IRS budget and workforce.

 

1946–1999 Tax-Exempt Organization Reports

Here you'll find archived reports on the activities and finances of charities and private foundations.

 

Special Papers

Some archived publications were originally created in response to special requests, may have been produced for only 1 or 2 years, or present historical summaries of SOI's operations—you'll find these articles here.


 

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Page Last Reviewed or Updated: 22-Jan-2013

The Ez 1040 Online

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