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Ez File Taxes

Ez file taxes 4. Ez file taxes   Limit on Elective Deferrals Table of Contents Excess elective deferrals. Ez file taxes General Limit 15-Year RuleYears of Service Figuring the Limit on Elective DeferralsExample The second and final component of MAC is the limit on elective deferrals. Ez file taxes This is a limit on the amount of contributions that can be made to your account through a salary reduction agreement. Ez file taxes A salary reduction agreement is an agreement between you and your employer that allows for a portion of your compensation to be directly invested in a 403(b) account on your behalf. Ez file taxes You can enter into more than one salary reduction agreement during a year. Ez file taxes More than one 403(b) account. Ez file taxes If, for any year, elective deferrals are contributed to more than one 403(b) account for you (whether or not with the same employer), you must combine all the elective deferrals to determine whether the total is more than the limit for that year. Ez file taxes 403(b) plan and another retirement plan. Ez file taxes If, during the year, contributions in the form of elective deferrals are made to other retirement plans on your behalf, you must combine all of the elective deferrals to determine if they are more than your limit on elective deferrals. Ez file taxes The limit on elective deferrals applies to amounts contributed to: 401(k) plans, to the extent excluded from income, Roth contribution programs, Section 501(c)(18) plans, to the extent excluded from income, Savings incentive match plan for employees (SIMPLE plans), Simplified employee pension (SEP) plans, and All 403(b) plans. Ez file taxes Roth contribution program. Ez file taxes   Your 403(b) plan may allow you to designate all or a portion of your elective deferrals as Roth contributions. Ez file taxes Elective deferrals designated as Roth contributions must be maintained in a separate Roth account and are not excludable from your gross income. Ez file taxes   The maximum amount of contributions allowed under a Roth contribution program is your limit on elective deferrals, less your elective deferrals not designated as Roth contributions. Ez file taxes For more information on the Roth contribution program, see Publication 560, Retirement Plans for Small Business. Ez file taxes Excess elective deferrals. Ez file taxes   If the amount contributed is more than the allowable limit, you must include the excess that is not a Roth contribution in your gross income for the year contributed. Ez file taxes General Limit Under the general limit on elective deferrals, the most that can be contributed to your 403(b) account through a salary reduction agreement is $17,500 for 2013 and 2014. Ez file taxes This limit applies without regard to community property laws. Ez file taxes 15-Year Rule If you have at least 15 years of service with an educational organization (such as a public or private school), hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization), the limit on elective deferrals to your 403(b) account is increased by the least of: $3,000, $15,000, reduced by the sum of: The additional pre-tax elective deferrals made in prior years because of this rule, plus The aggregate amount of designated Roth contributions permitted for prior years because of this rule, or $5,000 times the number of your years of service for the organization, minus the total elective deferrals made by your employer on your behalf for earlier years. Ez file taxes If you qualify for the 15-year rule, your elective deferrals under this limit can be as high as $20,500 for 2013 and 2014. Ez file taxes To determine whether you have 15 years of service with your employer, see Years of Service , next. Ez file taxes Years of Service To determine if you are eligible for the increased limit on elective deferrals, you will first need to figure your years of service. Ez file taxes How you figure your years of service depends on whether you were a full-time or a part-time employee, whether you worked for the full year or only part of the year, and whether you have worked for your employer for an entire year. Ez file taxes You must figure years of service for each year during which you worked for the employer who is maintaining your 403(b) account. Ez file taxes If more than one employer maintains a 403(b) account for you in the same year, you must figure years of service separately for each employer. Ez file taxes Definition Your years of service are the total number of years you have worked as a full time employee for the employer maintaining your 403(b) account as of the end of the year. Ez file taxes Figuring Your Years of Service Take the following rules into account when figuring your years of service. Ez file taxes Status of employer. Ez file taxes   Your years of service include only periods during which your employer was a qualified employer. Ez file taxes Your plan administrator can tell you whether or not your employer was qualified during all your periods of service. Ez file taxes Service with one employer. Ez file taxes   Generally, you cannot count service for any employer other than the one who maintains your 403(b) account. Ez file taxes Church employee. Ez file taxes   If you are a church employee, treat all of your years of service with related church organizations as years of service with the same employer. Ez file taxes For more information about church employees, see chapter 5. Ez file taxes Self-employed ministers. Ez file taxes   If you are a self-employed minister, your years of service include full and part years in which you have been treated as employed by a tax-exempt organization that is a qualified employer. Ez file taxes Total years of service. Ez file taxes   When figuring prior years of service, figure each year individually and then add the individual years of service to determine your total years of service. Ez file taxes Example. Ez file taxes The annual work period for full-time teachers employed by ABC Public Schools is September through December and February through May. Ez file taxes Marsha began working with ABC schools in September 2009. Ez file taxes She has always worked full-time for each annual work period. Ez file taxes At the end of 2013, Marsha had 4. Ez file taxes 5 years of service with ABC Public Schools, as shown in Table 4-1. Ez file taxes Table 4-1. Ez file taxes Marsha's Years of Service Note. Ez file taxes This table shows how Marsha figures her years of service, as explained in the previous example. Ez file taxes Year Period Worked Portion of Work Period Years of Service 2009 Sept. Ez file taxes –Dec. Ez file taxes . Ez file taxes 5 year . Ez file taxes 5 year 2010 Feb. Ez file taxes –May . Ez file taxes 5 year 1 year Sept. Ez file taxes –Dec. Ez file taxes . Ez file taxes 5 year 2011 Feb. Ez file taxes –May . Ez file taxes 5 year 1 year Sept. Ez file taxes –Dec. Ez file taxes . Ez file taxes 5 year 2012 Feb. Ez file taxes –May . Ez file taxes 5 year 1 year Sept. Ez file taxes –Dec. Ez file taxes . Ez file taxes 5 year 2013 Feb. Ez file taxes –May . Ez file taxes 5 year 1 year Sept. Ez file taxes –Dec. Ez file taxes . Ez file taxes 5 year Total years of service 4. Ez file taxes 5 years Full-time or part-time. Ez file taxes   To figure your years of service, you must analyze each year individually and determine whether you worked full-time for the full year or something other than full-time. Ez file taxes When determining whether you worked full-time or something other than full-time, use your employer's annual work period as the standard. Ez file taxes Employer's annual work period. Ez file taxes   Your employer's annual work period is the usual amount of time an individual working full-time in a specific position is required to work. Ez file taxes Generally, this period of time is expressed in days, weeks, months, or semesters, and can span 2 calendar years. Ez file taxes Note. Ez file taxes You cannot accumulate more than 1 year of service in a 12-month period. Ez file taxes Example. Ez file taxes All full-time teachers at ABC Public Schools are required to work both the September through December semester and the February through May semester. Ez file taxes Therefore, the annual work period for full-time teachers employed by ABC Public Schools is September through December and February through May. Ez file taxes Teachers at ABC Public Schools who work both semesters in the same calendar year are considered working a full year of service in that calendar year. Ez file taxes Full-Time Employee for the Full Year Count each full year during which you were employed full-time as 1 year of service. Ez file taxes In determining whether you were employed full-time, compare the amount of work you were required to perform with the amount of work normally required of others who held the same position with the same employer and who generally received most of their pay from the position. Ez file taxes How to compare. Ez file taxes   You can use any method that reasonably and accurately reflects the amount of work required. Ez file taxes For example, if you are a teacher, you can use the number of hours of classroom instruction as a measure of the amount of work required. Ez file taxes   In determining whether positions with the same employer are the same, consider all of the facts and circumstances concerning the positions, including the work performed, the methods by which pay is determined, and the descriptions (or titles) of the positions. Ez file taxes Example. Ez file taxes An assistant professor employed in the English department of a university will be considered a full-time employee if the amount of work that he or she is required to perform is the same as the amount of work normally required of assistant professors of English at that university who get most of their pay from that position. Ez file taxes   If no one else works for your employer in the same position, compare your work with the work normally required of others who held the same position with similar employers or similar positions with your employer. Ez file taxes Full year of service. Ez file taxes   A full year of service for a particular position means the usual annual work period of anyone employed full-time in that general type of work at that place of employment. Ez file taxes Example. Ez file taxes If a doctor works for a hospital 12 months of a year except for a 1-month vacation, the doctor will be considered as employed for a full year if the other doctors at that hospital also work 11 months of the year with a 1-month vacation. Ez file taxes Similarly, if the usual annual work period at a university consists of the fall and spring semesters, an instructor at that university who teaches these semesters will be considered as working a full year. Ez file taxes Other Than Full-Time for the Full Year If, during any year, you were employed full-time for only part of your employer's annual work period, part-time for the entire annual work period, or part-time for only part of the work period, your year of service for that year is a fraction of your employer's annual work period. Ez file taxes Full-time for part of the year. Ez file taxes   If, during a year, you were employed full-time for only part of your employer's annual work period, figure the fraction for that year as follows: The numerator (top number) is the number of weeks, months, or semesters you were a full-time employee. Ez file taxes The denominator (bottom number) is the number of weeks, months, or semesters considered the normal annual work period for the position. Ez file taxes Example. Ez file taxes Jason was employed as a full-time instructor by a local college for the 4 months of the 2013 spring semester (February 2013 through May 2013). Ez file taxes The annual work period for the college is 8 months (February through May and July through October). Ez file taxes Given these facts, Jason was employed full-time for part of the annual work period and provided ½ of a year of service. Ez file taxes Jason's years of service computation for 2013 is as follows: Number of months Jason worked = 4 = 1 Number of months in annual work period 8 2 Part-time for the full year. Ez file taxes   If, during a year, you were employed part-time for the employer's entire annual work period, you figure the fraction for that year as follows: The numerator (top number) is the number of hours or days you worked. Ez file taxes The denominator (bottom number) is the number of hours or days normally required of someone holding the same position who works full-time. Ez file taxes Example. Ez file taxes Vance teaches one course at a local medical school. Ez file taxes He teaches 3 hours per week for two semesters. Ez file taxes Other faculty members at the same school teach 9 hours per week for two semesters. Ez file taxes The annual work period of the medical school is two semesters. Ez file taxes An instructor teaching 9 hours a week for two semesters is considered a full-time employee. Ez file taxes Given these facts, Vance has worked part-time for a full annual work period. Ez file taxes Vance has completed 1/3 of a year of service, figured as shown below. Ez file taxes Number of hours per week Vance worked = 3 = 1 Number of hours per week considered full-time 9 3 Part-time for part of the year. Ez file taxes   If, during any year, you were employed part-time for only part of your employer's annual work period, you figure your fraction for that year by multiplying two fractions. Ez file taxes   Figure the first fraction as though you had worked full-time for part of the annual work period. Ez file taxes The fraction is as follows: The numerator (top number) is the number of weeks, months, or semesters you were a full-time employee. Ez file taxes The denominator (bottom number) is the number of weeks, months, or semesters considered the normal annual work period for the position. Ez file taxes   Figure the second fraction as though you had worked part-time for the entire annual work period. Ez file taxes The fraction is as follows: The numerator (top number) is the number of hours or days you worked. Ez file taxes The denominator (bottom number) is the number of hours or days normally required of someone holding the same position who works full-time. Ez file taxes   Once you have figured these two fractions, multiply them together to determine the fraction representing your partial year of service for the year. Ez file taxes Example. Ez file taxes Maria, an attorney, teaches a course for one semester at a law school. Ez file taxes She teaches 3 hours per week. Ez file taxes The annual work period for teachers at the school is two semesters. Ez file taxes All full-time instructors at the school are required to teach 12 hours per week. Ez file taxes Based on these facts, Maria is employed part-time for part of the annual work period. Ez file taxes Her year of service for this year is determined by multiplying two fractions. Ez file taxes Her computation is as follows: Maria's first fraction Number of semesters Maria worked = 1 Number of semesters in annual work period 2 Maria's second fraction Number of hours Maria worked per week = 3 = 1 Number of hours per week considered full-time 12 4 Maria would multiply these fractions to obtain the fractional year of service: 1 x 1 = 1         2 4 8         Figuring the Limit on Elective Deferrals You can use Part II of Worksheet 1 in chapter 9 to figure the limit on elective deferrals. Ez file taxes Example Floyd has figured his limit on annual additions. Ez file taxes The only other component needed before he can determine his MAC for 2014 is his limit on elective deferrals. Ez file taxes Figuring Floyd's limit on elective deferrals. Ez file taxes   Floyd has been employed with his current employer for less than 15 years. Ez file taxes He is not eligible for the special 15-year increase. Ez file taxes Therefore, his limit on elective deferrals for 2014 is $17,500 as shown in Table 4-2. Ez file taxes Floyd's employer will not make any nonelective contributions to his 403(b) account and Floyd will not make any after-tax contributions. Ez file taxes Additionally, Floyd's employer does not offer a Roth contribution program. Ez file taxes Figuring Floyd's MAC Floyd has determined that his limit on annual additions for 2014 is $52,000 and his limit on elective deferrals is $17,500. Ez file taxes Because elective deferrals are the only contributions made to Floyd's account, the maximum amount that can be contributed to a 403(b) account on Floyd's behalf in 2014 is $17,500, the lesser of both limits. Ez file taxes Table 4-2. Ez file taxes Worksheet 1. Ez file taxes Maximum Amount Contributable (MAC) Note. Ez file taxes Use this worksheet to figure your MAC. Ez file taxes Part I. Ez file taxes Limit on Annual Additions     1. Ez file taxes Enter your includible compensation for your most recent year of service 1. Ez file taxes $70,475 2. Ez file taxes Maximum: For 2013 enter $51,000 For 2014 enter $52,000 2. Ez file taxes 52,000 3. Ez file taxes Enter the lesser of line 1 or line 2. Ez file taxes This is your limit on annual additions 3. Ez file taxes 52,000   Caution: If you had only nonelective contributions, skip Part II and enter the amount from line 3 on line 18. Ez file taxes     Part II. Ez file taxes Limit on Elective Deferrals     4. Ez file taxes Maximum contribution: For 2013, enter $17,500 For 2014, enter $17,500 4. Ez file taxes 17,500   Note. Ez file taxes If you have at least 15 years of service with a qualifying organization, complete lines 5 through 17. Ez file taxes If not, enter zero (-0-) on line 16 and go to line 17. Ez file taxes     5. Ez file taxes Amount per year of service 5. Ez file taxes 5,000 6. Ez file taxes Enter your years of service 6. Ez file taxes   7. Ez file taxes Multiply line 5 by line 6 7. Ez file taxes   8. Ez file taxes Enter the total of all elective deferrals made for you by the qualifying organization for prior years 8. Ez file taxes   9. Ez file taxes Subtract line 8 from line 7. Ez file taxes If zero or less, enter zero (-0-) 9. Ez file taxes   10. Ez file taxes Maximum increase in limit for long service 10. Ez file taxes 15,000 11. Ez file taxes Enter the total of additional pre-tax elective deferrals made in prior years under the 15-year rule 11. Ez file taxes   12. Ez file taxes Enter the aggregate amount of all designated Roth contributions permitted for prior years under the 15-year rule 12. Ez file taxes   13. Ez file taxes Add lines 11 and 12 13. Ez file taxes   14. Ez file taxes Subtract line 13 from line 10 14. Ez file taxes   15. Ez file taxes Maximum additional contributions 15. Ez file taxes 3,000 16. Ez file taxes Enter the least of lines 9, 14, or 15. Ez file taxes This is your increase in the limit for long service 16. Ez file taxes -0- 17. Ez file taxes Add lines 4 and 16. Ez file taxes This is your limit on elective deferrals 17. Ez file taxes 17,500   Part III. Ez file taxes Maximum Amount Contributable     18. Ez file taxes If you had only nonelective contributions, enter the amount from line 3. Ez file taxes This is your MAC. Ez file taxes    If you had only elective deferrals, enter the lesser of lines 3 or 17. Ez file taxes This is your MAC. Ez file taxes    If you had both elective deferrals and nonelective contributions, enter the amount from line 3. Ez file taxes This is your MAC. Ez file taxes (Use the amount on line 17 to determine if you have excess elective deferrals as explained in chapter 7. Ez file taxes ) 18. Ez file taxes $17,500 Prev  Up  Next   Home   More Online Publications
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Affordable Care Act Tax Provisions for Employers

The Affordable Care Act, or health care law, contains benefits and responsibilities for employers. The size and structure of your workforce – small, large, or part of a group – helps determine what applies to you. However, if you have no employees, the following information does not apply to you.

 Small Employers
 
Large Employers
 
Small employers, generally those with fewer than 50 full-time employees, may be eligible for credits and other benefits.
 
  > More…
 
A large employer has 50 or more full-time employees or equivalents.
 
  > More…

 

How do I know if I am a small or large employer? Why does it matter?

An employer’s size is determined by the number of its employees. Employer benefits, opportunities and requirements are dependent upon the employer’s size and the applicable rules. Generally, an employer with 50 or more full-time employees or equivalents will be considered a large employer.

Employers with:

  • Fewer than 25 full-time equivalent employees may be eligible for a Small Business Health Care Tax Credit to help cover the cost of providing coverage.
  • Generally 50 or fewer employees may be eligible to buy coverage through the Small Business Health Options Program (SHOP). Learn more at HealthCare.gov
  • 50 or more full-time equivalent employees will need to file an annual return reporting whether and what health insurance they offered employees. In addition, they are subject to the Employer Shared Responsibility provisions.

Certain affiliated employers with common ownership or part of a controlled group must aggregate their employees to determine their workforce size. Proposed regulations (pdf) and FAQs provide more information about determining the size of your workforce.

Page Last Reviewed or Updated: 28-Jan-2014

The Ez File Taxes

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