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Filing 2011 Taxes

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Filing 2011 Taxes

Filing 2011 taxes Publication 526 - Main Content Table of Contents 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 Expenses of Whaling Captains 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 to Donor-Advised Funds Partial Interest in Property Contributions of PropertyContributions Subject to Special Rules Determining Fair Market Value Giving Property That Has Decreased in Value Giving Property That Has Increased in Value Penalty When To DeductChecks. Filing 2011 taxes Text message. Filing 2011 taxes Credit card. Filing 2011 taxes Pay-by-phone account. Filing 2011 taxes Stock certificate. Filing 2011 taxes Promissory note. Filing 2011 taxes Option. Filing 2011 taxes Borrowed funds. Filing 2011 taxes Conditional gift. Filing 2011 taxes Limits on Deductions50% Limit 30% Limit Special 30% Limit for Capital Gain Property 20% Limit Special 50% Limit for Qualified Conservation Contributions How To Figure Your Deduction When Limits Apply Records To KeepCash Contributions Noncash Contributions Out-of-Pocket Expenses How To ReportReporting expenses for student living with you. Filing 2011 taxes Total deduction over $500. Filing 2011 taxes Deduction over $5,000 for one item. Filing 2011 taxes Vehicle donations. Filing 2011 taxes Clothing and household items not in good used condition. Filing 2011 taxes Easement on building in historic district. Filing 2011 taxes Deduction over $500,000. Filing 2011 taxes How To Get Tax HelpLow Income Taxpayer Clinics Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if you make them to a qualified organization. Filing 2011 taxes Most organizations, other than churches and governments, must apply to the IRS to become a qualified organization. Filing 2011 taxes How to check whether an organization can receive deductible charitable contributions. Filing 2011 taxes   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Filing 2011 taxes Or go to IRS. Filing 2011 taxes gov. Filing 2011 taxes Click on “Tools” and then on “Exempt Organizations Select Check” (www. Filing 2011 taxes irs. Filing 2011 taxes gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Filing 2011 taxes This online tool will enable you to search for qualified organizations. Filing 2011 taxes You can also call the IRS to find out if an organization is qualified. Filing 2011 taxes Call 1-877-829-5500. Filing 2011 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. Filing 2011 taxes Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Filing 2011 taxes gsa. Filing 2011 taxes gov/fedrelay. Filing 2011 taxes Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Filing 2011 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). Filing 2011 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. Filing 2011 taxes Certain organizations that foster national or international amateur sports competition also qualify. Filing 2011 taxes War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Filing 2011 taxes Domestic fraternal societies, orders, and associations operating under the lodge system. Filing 2011 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. Filing 2011 taxes ) Certain nonprofit cemetery companies or corporations. Filing 2011 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. Filing 2011 taxes ) The United States or any state, the District of Columbia, a U. Filing 2011 taxes S. Filing 2011 taxes possession (including Puerto Rico), a political subdivision of a state or U. Filing 2011 taxes S. Filing 2011 taxes possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Filing 2011 taxes (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes. Filing 2011 taxes ) Example 1. Filing 2011 taxes You contribute cash to your city's police department to be used as a reward for information about a crime. Filing 2011 taxes The city police department is a qualified organization, and your contribution is for a public purpose. Filing 2011 taxes You can deduct your contribution. Filing 2011 taxes Example 2. Filing 2011 taxes You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Filing 2011 taxes Because the trust fund is part of the U. Filing 2011 taxes S. Filing 2011 taxes Government, you contributed to a qualified organization. Filing 2011 taxes You can deduct your contribution. Filing 2011 taxes Examples. Filing 2011 taxes   The following list gives some examples of qualified organizations. Filing 2011 taxes Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Filing 2011 taxes Most nonprofit charitable organizations such as the American Red Cross and the United Way. Filing 2011 taxes Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Filing 2011 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. Filing 2011 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 . Filing 2011 taxes Nonprofit hospitals and medical research organizations. Filing 2011 taxes Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Filing 2011 taxes Nonprofit volunteer fire companies. Filing 2011 taxes Nonprofit organizations that develop and maintain public parks and recreation facilities. Filing 2011 taxes Civil defense organizations. Filing 2011 taxes Canadian charities. Filing 2011 taxes   You may be able to deduct contributions to certain Canadian charitable organizations covered under an income tax treaty with Canada. Filing 2011 taxes To deduct your contribution to a Canadian charity, you generally must have income from sources in Canada. Filing 2011 taxes See Publication 597, Information on the United States-Canada Income Tax Treaty, for information on how to figure your deduction. Filing 2011 taxes Mexican charities. Filing 2011 taxes   Under the U. Filing 2011 taxes S. Filing 2011 taxes -Mexico income tax treaty, a contribution to a Mexican charitable organization may be deductible, but only if and to the extent the contribution would have been treated as a charitable contribution to a public charity created or organized under U. Filing 2011 taxes S. Filing 2011 taxes law. Filing 2011 taxes To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. Filing 2011 taxes The limits described in Limits on Deductions , later, apply and are figured using your income from Mexican sources. Filing 2011 taxes Israeli charities. Filing 2011 taxes   Under the U. Filing 2011 taxes S. Filing 2011 taxes -Israel income tax treaty, a contribution to an Israeli charitable organization is deductible if and to the extent the contribution would have been treated as a charitable contribution if the organization had been created or organized under U. Filing 2011 taxes S. Filing 2011 taxes law. Filing 2011 taxes To deduct your contribution to an Israeli charity, you must have income from sources in Israel. Filing 2011 taxes The limits described in Limits on Deductions , later, apply. Filing 2011 taxes The deduction is also limited to 25% of your adjusted gross income from Israeli sources. Filing 2011 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. Filing 2011 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. Filing 2011 taxes The contributions must be made to a qualified organization and not set aside for use by a specific person. Filing 2011 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. Filing 2011 taxes See Contributions of Property , later. Filing 2011 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. Filing 2011 taxes In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited. Filing 2011 taxes See Limits on Deductions , later. Filing 2011 taxes Table 1 in this publication gives examples of contributions you can and cannot deduct. Filing 2011 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. Filing 2011 taxes Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Filing 2011 taxes If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Filing 2011 taxes For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Filing 2011 taxes Example 1. Filing 2011 taxes You pay $65 for a ticket to a dinner-dance at a church. Filing 2011 taxes Your entire $65 payment goes to the church. Filing 2011 taxes The ticket to the dinner-dance has a fair market value of $25. Filing 2011 taxes When you buy your ticket, you know its value is less than your payment. Filing 2011 taxes To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Filing 2011 taxes You can deduct $40 as a charitable contribution to the church. Filing 2011 taxes Example 2. Filing 2011 taxes At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Filing 2011 taxes The amount you pay is no more than the fair rental value. Filing 2011 taxes You have not made a deductible charitable contribution. Filing 2011 taxes Athletic events. Filing 2011 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. Filing 2011 taxes   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Filing 2011 taxes Subtract the price of the tickets from your payment. Filing 2011 taxes You can deduct 80% of the remaining amount as a charitable contribution. Filing 2011 taxes Example 1. Filing 2011 taxes You pay $300 a year for membership in a university's athletic scholarship program. Filing 2011 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. Filing 2011 taxes You can deduct $240 (80% of $300) as a charitable contribution. Filing 2011 taxes Example 2. Filing 2011 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. Filing 2011 taxes You must subtract the usual price of a ticket ($120) from your $300 payment. Filing 2011 taxes The result is $180. Filing 2011 taxes Your deductible charitable contribution is $144 (80% of $180). Filing 2011 taxes Charity benefit events. Filing 2011 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. Filing 2011 taxes   If there is an established charge for the event, that charge is the value of your benefit. Filing 2011 taxes If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Filing 2011 taxes Whether you use the tickets or other privileges has no effect on the amount you can deduct. Filing 2011 taxes However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Filing 2011 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. Filing 2011 taxes If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Filing 2011 taxes Example. Filing 2011 taxes You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Filing 2011 taxes Printed on the ticket is “Contribution–$40. Filing 2011 taxes ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Filing 2011 taxes Membership fees or dues. Filing 2011 taxes   You may be able to deduct membership fees or dues you pay to a qualified organization. Filing 2011 taxes However, you can deduct only the amount that is more than the value of the benefits you receive. Filing 2011 taxes   You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Filing 2011 taxes They are not qualified organizations. Filing 2011 taxes Certain membership benefits can be disregarded. Filing 2011 taxes   Both you and the organization can disregard the following membership benefits if you get them in return for an annual payment of $75 or less. Filing 2011 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. Filing 2011 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. Filing 2011 taxes 20. Filing 2011 taxes Token items. Filing 2011 taxes   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Filing 2011 taxes You receive only a small item or other benefit of token value. Filing 2011 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. Filing 2011 taxes The organization determines whether the value of an item or benefit is substantial by using Revenue Procedures 90-12 and 92-49 and the inflation adjustment in Revenue Procedure 2012–41. Filing 2011 taxes Written statement. Filing 2011 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. Filing 2011 taxes The statement must say you can deduct only the amount of your payment that is more than the value of the goods or services you received. Filing 2011 taxes It must also give you a good faith estimate of the value of those goods or services. Filing 2011 taxes   The organization can give you the statement either when it solicits or when it receives the payment from you. Filing 2011 taxes Exception. Filing 2011 taxes   An organization will not have to give you this statement if one of the following is true. Filing 2011 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. Filing 2011 taxes You receive only items whose value is not substantial as described under Token items , earlier. Filing 2011 taxes You receive only membership benefits that can be disregarded, as described under Membership fees or dues , earlier. Filing 2011 taxes Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Filing 2011 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 (defined later) as part of a program of the organization to provide educational opportunities for the student, Is not your relative (defined later) or dependent (also defined later), and Is a full-time student in the twelfth or any lower grade at a school in the United States. Filing 2011 taxes You can deduct up to $50 a month for each full calendar month the student lives with you. Filing 2011 taxes Any month when conditions (1) through (3) above are met for 15 or more days counts as a full month. Filing 2011 taxes Qualified organization. Filing 2011 taxes   For these purposes, a qualified organization can be any of the organizations described earlier under Types of Qualified Organizations , except those in (4) and (5). Filing 2011 taxes For example, if you are providing a home for a student as part of a state or local government program, you cannot deduct your expenses as charitable contributions. Filing 2011 taxes But see Foster parents under Out-of-Pocket Expenses in Giving Services, later, if you provide the home as a foster parent. Filing 2011 taxes Relative. Filing 2011 taxes   The term “relative” means any of the following persons. Filing 2011 taxes Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Filing 2011 taxes A legally adopted child is considered your child. Filing 2011 taxes Your brother, sister, half brother, half sister, stepbrother, or stepsister. Filing 2011 taxes Your father, mother, grandparent, or other direct ancestor. Filing 2011 taxes Your stepfather or stepmother. Filing 2011 taxes A son or daughter of your brother or sister. Filing 2011 taxes A brother or sister of your father or mother. Filing 2011 taxes Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Filing 2011 taxes Dependent. Filing 2011 taxes   For this purpose, the term “dependent” means: A person you can claim as a dependent, or A person you could have claimed as a dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Filing 2011 taxes    Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. Filing 2011 taxes S. Filing 2011 taxes residents and cannot be claimed as dependents. Filing 2011 taxes Qualifying expenses. Filing 2011 taxes   You may be able to deduct the cost of books, tuition, food, clothing, transportation, medical and dental care, entertainment, and other amounts you actually spend for the well-being of the student. Filing 2011 taxes Expenses that do not qualify. Filing 2011 taxes   You cannot deduct depreciation on your home, the fair market value of lodging, and similar items not considered amounts actually spent by you. Filing 2011 taxes Nor can you deduct general household expenses, such as taxes, insurance, and repairs. Filing 2011 taxes Reimbursed expenses. Filing 2011 taxes   In most cases, you cannot claim a charitable contribution deduction if you are compensated or reimbursed for any part of the costs of having a student live with you. Filing 2011 taxes However, you may be able to claim a charitable contribution deduction for the unreimbursed portion of your expenses if you are reimbursed only for an extraordinary or one-time item, such as a hospital bill or vacation trip, you paid in advance at the request of the student's parents or the sponsoring organization. Filing 2011 taxes Mutual exchange program. Filing 2011 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. Filing 2011 taxes Reporting expenses. Filing 2011 taxes   For a list of what you must file with your return if you deduct expenses for a student living with you, see Reporting expenses for student living with you under How To Report, later. Filing 2011 taxes Out-of-Pocket Expenses in Giving Services Table 2. Filing 2011 taxes Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Filing 2011 taxes All of the rules explained in this publication also apply. Filing 2011 taxes See, in particular, Out-of-Pocket Expenses in Giving Services . Filing 2011 taxes Question Answer I volunteer 6 hours a week in the office of a qualified organization. Filing 2011 taxes The receptionist is paid $10 an hour for the same work. Filing 2011 taxes Can I deduct $60 a week for my time? No, you cannot deduct the value of your time or services. Filing 2011 taxes  The office is 30 miles from my home. Filing 2011 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. Filing 2011 taxes If you do not want to figure your actual costs, you can deduct 14 cents for each mile. Filing 2011 taxes I volunteer as a Red Cross nurse's aide at a hospital. Filing 2011 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. Filing 2011 taxes I pay a babysitter to watch my children while I volunteer for a qualified organization. Filing 2011 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. Filing 2011 taxes (If you have childcare expenses so you can work for pay, see Publication 503, Child and Dependent Care Expenses. Filing 2011 taxes ) 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. Filing 2011 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. Filing 2011 taxes Table 2 contains questions and answers that apply to some individuals who volunteer their services. Filing 2011 taxes Underprivileged youths selected by charity. Filing 2011 taxes   You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. Filing 2011 taxes The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Filing 2011 taxes Your own similar expenses in accompanying the youths are not deductible. Filing 2011 taxes Conventions. Filing 2011 taxes   If a qualified organization selects you to attend a convention as its representative, you can deduct your unreimbursed expenses for travel, including reasonable amounts for meals and lodging, while away from home overnight for the convention. Filing 2011 taxes However, see Travel , later. Filing 2011 taxes   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Filing 2011 taxes You also cannot deduct travel, meals and lodging, and other expenses for your spouse or children. Filing 2011 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. Filing 2011 taxes You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Filing 2011 taxes Uniforms. Filing 2011 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. Filing 2011 taxes Foster parents. Filing 2011 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. Filing 2011 taxes A qualified organization must select the individuals you take into your home for foster care. Filing 2011 taxes   You can deduct expenses that meet both of the following requirements. Filing 2011 taxes They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Filing 2011 taxes They are incurred primarily to benefit the qualified organization. Filing 2011 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. Filing 2011 taxes For details, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Filing 2011 taxes Example. Filing 2011 taxes You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Filing 2011 taxes Your unreimbursed expenses are not deductible as charitable contributions. Filing 2011 taxes Church deacon. Filing 2011 taxes   You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. Filing 2011 taxes These expenses include the cost of vestments, books, and transportation required in order to serve in the program as either a deacon candidate or an ordained deacon. Filing 2011 taxes Car expenses. Filing 2011 taxes   You can deduct as a charitable contribution any unreimbursed out-of-pocket expenses, such as the cost of gas and oil, directly related to the use of your car in giving services to a charitable organization. Filing 2011 taxes You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Filing 2011 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. Filing 2011 taxes   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Filing 2011 taxes   You must keep reliable written records of your car expenses. Filing 2011 taxes For more information, see Car expenses under Records To Keep, later. Filing 2011 taxes Travel. Filing 2011 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. Filing 2011 taxes This applies whether you pay the expenses directly or indirectly. Filing 2011 taxes You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Filing 2011 taxes   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Filing 2011 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. Filing 2011 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. Filing 2011 taxes Example 1. Filing 2011 taxes You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Filing 2011 taxes You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Filing 2011 taxes You participate in the activities of the group and enjoy your time with them. Filing 2011 taxes You oversee the breaking of camp and you transport the group home. Filing 2011 taxes You can deduct your travel expenses. Filing 2011 taxes Example 2. Filing 2011 taxes You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Filing 2011 taxes The project is sponsored by a charitable organization. Filing 2011 taxes In most circumstances, you cannot deduct your expenses. Filing 2011 taxes Example 3. Filing 2011 taxes You work for several hours each morning on an archeological dig sponsored by a charitable organization. Filing 2011 taxes The rest of the day is free for recreation and sightseeing. Filing 2011 taxes You cannot take a charitable contribution deduction even though you work very hard during those few hours. Filing 2011 taxes Example 4. Filing 2011 taxes You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Filing 2011 taxes In the evening you go to the theater. Filing 2011 taxes You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Filing 2011 taxes Daily allowance (per diem). Filing 2011 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. Filing 2011 taxes You may be able to deduct any necessary travel expenses that are more than the allowance. Filing 2011 taxes Deductible travel expenses. Filing 2011 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. Filing 2011 taxes Because these travel expenses are not business-related, they are not subject to the same limits as business related expenses. Filing 2011 taxes For information on business travel expenses, see Travel in Publication 463, Travel, Entertainment, Gift, and Car Expenses. Filing 2011 taxes Expenses of Whaling Captains You may be able to deduct as a charitable contribution any reasonable and necessary whaling expenses you pay during the year to carry out sanctioned whaling activities. Filing 2011 taxes The deduction is limited to $10,000 a year. Filing 2011 taxes To claim the deduction, you must be recognized by the Alaska Eskimo Whaling Commission as a whaling captain charged with the responsibility of maintaining and carrying out sanctioned whaling activities. Filing 2011 taxes Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission. Filing 2011 taxes Whaling expenses include expenses for: Acquiring and maintaining whaling boats, weapons, and gear used in sanctioned whaling activities, Supplying food for the crew and other provisions for carrying out these activities, and Storing and distributing the catch from these activities. Filing 2011 taxes You must keep records showing the time, place, date, amount, and nature of the expenses. Filing 2011 taxes For details, see Revenue Procedure 2006-50, which is on page 944 of Internal Revenue Bulletin 2006-47 at www. Filing 2011 taxes irs. Filing 2011 taxes gov/pub/irs-irbs/irb06-47. Filing 2011 taxes pdf. Filing 2011 taxes Contributions You Cannot Deduct There are some contributions you cannot deduct and others you can deduct only in part. Filing 2011 taxes You cannot deduct as a charitable contribution: A contribution to a specific individual, A contribution to a nonqualified organization, The part of a contribution from which you receive or expect to receive a benefit, The value of your time or services, Your personal expenses, A qualified charitable distribution from an individual retirement arrangement (IRA), Appraisal fees, Certain contributions to donor-advised funds, or Certain contributions of partial interests in property. Filing 2011 taxes Detailed discussions of these items follow. Filing 2011 taxes Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Filing 2011 taxes Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members. Filing 2011 taxes Contributions to individuals who are needy or worthy. Filing 2011 taxes You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Filing 2011 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. Filing 2011 taxes Example. Filing 2011 taxes You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Filing 2011 taxes However, you cannot deduct contributions earmarked for relief of a particular individual or family. Filing 2011 taxes Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Filing 2011 taxes Expenses you paid for another person who provided services to a qualified organization. Filing 2011 taxes Example. Filing 2011 taxes Your son does missionary work. Filing 2011 taxes You pay his expenses. Filing 2011 taxes You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Filing 2011 taxes Payments to a hospital that are for a specific patient's care or for services for a specific patient. Filing 2011 taxes You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization. Filing 2011 taxes Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Filing 2011 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. Filing 2011 taxes Chambers of commerce and other business leagues or organizations. Filing 2011 taxes Civic leagues and associations. Filing 2011 taxes Communist organizations. Filing 2011 taxes Country clubs and other social clubs. Filing 2011 taxes Foreign organizations other than certain Canadian, Israeli, or Mexican charitable organizations. Filing 2011 taxes (See Canadian charities , Mexican charities , and Israeli charities under Organizations That Qualify To Receive Deductible Contributions, earlier. Filing 2011 taxes ) Also, you cannot deduct a contribution you made to any qualifying organization if the contribution is earmarked to go to a foreign organization. Filing 2011 taxes However, certain contributions to a qualified organization for use in a program conducted by a foreign charity may be deductible as long as they are not earmarked to go to the foreign charity. Filing 2011 taxes For the contribution to be deductible, the qualified organization must approve the program as furthering its own exempt purposes and must keep control over the use of the contributed funds. Filing 2011 taxes The contribution is also deductible if the foreign charity is only an administrative arm of the qualified organization. Filing 2011 taxes Homeowners' associations. Filing 2011 taxes Labor unions. Filing 2011 taxes But you may be able to deduct union dues as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit, on Schedule A (Form 1040). Filing 2011 taxes See Publication 529, Miscellaneous Deductions. Filing 2011 taxes Political organizations and candidates. Filing 2011 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. Filing 2011 taxes See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Filing 2011 taxes These contributions include the following. Filing 2011 taxes Contributions for lobbying. Filing 2011 taxes This includes amounts you earmark for use in, or in connection with, influencing specific legislation. Filing 2011 taxes Contributions to a retirement home for room, board, maintenance, or admittance. Filing 2011 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. Filing 2011 taxes Costs of raffles, bingo, lottery, etc. Filing 2011 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. Filing 2011 taxes For information on how to report gambling winnings and losses, see Deductions Not Subject to the 2% Limit in Publication 529. Filing 2011 taxes Dues to fraternal orders and similar groups. Filing 2011 taxes However, see Membership fees or dues under Contributions From Which You Benefit, earlier. Filing 2011 taxes Tuition, or amounts you pay instead of tuition. Filing 2011 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. Filing 2011 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. Filing 2011 taxes ” Contributions connected with split-dollar insurance arrangements. Filing 2011 taxes You cannot deduct any part of a contribution to a charitable organization if, in connection with the contribution, the organization directly or indirectly pays, has paid, or is expected to pay any premium on any life insurance, annuity, or endowment contract for which you, any member of your family, or any other person chosen by you (other than a qualified charitable organization) is a beneficiary. Filing 2011 taxes Example. Filing 2011 taxes You donate money to a charitable organization. Filing 2011 taxes The charity uses the money to purchase a cash value life insurance policy. Filing 2011 taxes The beneficiaries under the insurance policy include members of your family. Filing 2011 taxes Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation. Filing 2011 taxes Qualified Charitable Distributions A qualified charitable distribution (QCD) is a distribution made directly by the trustee of your individual retirement arrangement (IRA), other than a SEP or SIMPLE IRA, to certain qualified organizations. Filing 2011 taxes You must have been at least age 70½ when the distribution was made. Filing 2011 taxes Your total QCDs for the year cannot be more than $100,000. Filing 2011 taxes If all the requirements are met, a QCD is nontaxable, but you cannot claim a charitable contribution deduction for a QCD. Filing 2011 taxes See Publication 590, Individual Retirement Arrangements (IRAs), for more information about QCDs. Filing 2011 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. Filing 2011 taxes Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Filing 2011 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. Filing 2011 taxes Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. Filing 2011 taxes However, you may be able to claim a tax credit for these expenses. Filing 2011 taxes Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. Filing 2011 taxes See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. Filing 2011 taxes You also may be able to claim an exemption for the child. Filing 2011 taxes See Exemptions for Dependents in Publication 501 for more information. Filing 2011 taxes Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property. Filing 2011 taxes But you can claim them, subject to the 2%-of-adjusted-gross-income limit, as a miscellaneous itemized deduction on Schedule A (Form 1040). Filing 2011 taxes See Deductions Subject to the 2% Limit in Publication 529 for more information. Filing 2011 taxes Contributions to Donor-Advised Funds You cannot deduct a contribution to a donor-advised fund if: The qualified organization that sponsors the fund is a war veterans' organization, a fraternal society, or a nonprofit cemetery company, or You do not have an acknowledgment from that sponsoring organization that it has exclusive legal control over the assets contributed. Filing 2011 taxes There are also other circumstances in which you cannot deduct your contribution to a donor-advised fund. Filing 2011 taxes Generally, a donor-advised fund is a fund or account in which a donor can, because of being a donor, advise the fund how to distribute or invest amounts held in the fund. Filing 2011 taxes For details, see Internal Revenue Code section 170(f)(18). Filing 2011 taxes Partial Interest in Property Generally, you cannot deduct a contribution of less than your entire interest in property. Filing 2011 taxes For details, see Partial Interest in Property under Contributions of Property, later. Filing 2011 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. Filing 2011 taxes However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Filing 2011 taxes See Giving Property That Has Increased in Value , later. Filing 2011 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. Filing 2011 taxes Contributions Subject to Special Rules Special rules apply if you contribute: Clothing or household items, A car, boat, or airplane, Taxidermy property, Property subject to a debt, A partial interest in property, A fractional interest in tangible personal property, A qualified conservation contribution, A future interest in tangible personal property, Inventory from your business, or A patent or other intellectual property. Filing 2011 taxes These special rules are described next. Filing 2011 taxes Clothing and Household Items 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. Filing 2011 taxes Exception. Filing 2011 taxes   You can take a deduction for a contribution of an item of clothing or a 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. Filing 2011 taxes Household items. Filing 2011 taxes   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Filing 2011 taxes   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Filing 2011 taxes Fair market value. Filing 2011 taxes   To determine the fair market value of these items, use the rules under Determining Fair Market Value , later. Filing 2011 taxes Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. Filing 2011 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. Filing 2011 taxes Deduction more than $500. Filing 2011 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. Filing 2011 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. Filing 2011 taxes Form 1098-C. Filing 2011 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. Filing 2011 taxes The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Filing 2011 taxes   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453, U. Filing 2011 taxes S. Filing 2011 taxes Individual Income Tax Transmittal for an IRS e-file Return, 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. Filing 2011 taxes   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Filing 2011 taxes    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Filing 2011 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. Filing 2011 taxes Filing deadline approaching and still no Form 1098-C. Filing 2011 taxes   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Filing 2011 taxes Request an automatic 6-month extension of time to file your return. Filing 2011 taxes You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U. Filing 2011 taxes S. Filing 2011 taxes Individual Income Tax Return. Filing 2011 taxes For more information, see the instructions for Form 4868. Filing 2011 taxes File the return on time without claiming the deduction for the qualified vehicle. Filing 2011 taxes After receiving the Form 1098-C, file an amended return, Form 1040X, Amended U. Filing 2011 taxes S. Filing 2011 taxes Individual Income Tax Return, claiming the deduction. Filing 2011 taxes Attach Copy B of Form 1098-C (or other statement) to the amended return. Filing 2011 taxes Exceptions. Filing 2011 taxes   There are two exceptions to the rules just described for deductions of more than $500. Filing 2011 taxes Exception 1—vehicle used or improved by organization. Filing 2011 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. Filing 2011 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. Filing 2011 taxes The Form 1098-C (or other statement) will show whether this exception applies. Filing 2011 taxes    Exception 2—vehicle given or sold to needy individual. Filing 2011 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. Filing 2011 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. Filing 2011 taxes The Form 1098-C (or other statement) will show whether this exception applies. Filing 2011 taxes   This exception does not apply if the organization sells the vehicle at auction. Filing 2011 taxes In that case, you cannot deduct the vehicle's fair market value. Filing 2011 taxes Example. Filing 2011 taxes Anita donates a used car to a qualified organization. Filing 2011 taxes She bought it 3 years ago for $9,000. Filing 2011 taxes A used car guide shows the fair market value for this type of car is $6,000. Filing 2011 taxes However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Filing 2011 taxes Neither exception 1 nor exception 2 applies. Filing 2011 taxes If Anita itemizes her deductions, she can deduct $2,900 for her donation. Filing 2011 taxes She must attach Form 1098-C and Form 8283 to her return. Filing 2011 taxes Deduction $500 or less. Filing 2011 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. Filing 2011 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. Filing 2011 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. Filing 2011 taxes The statement must contain the information and meet the tests for an acknowledgment described under Contributions of $250 or More under Records To Keep, later. Filing 2011 taxes Fair market value. Filing 2011 taxes   To determine a vehicle's fair market value, use the rules described under Determining Fair Market Value , later. Filing 2011 taxes Donations of inventory. Filing 2011 taxes   The vehicle donation rules just described do not apply to donations of inventory. Filing 2011 taxes For example, these rules do not apply if you are a car dealer who donates a car you had been holding for sale to customers. Filing 2011 taxes See Inventory , later. Filing 2011 taxes Taxidermy Property If you donate taxidermy property to a qualified organization, your deduction is limited to your basis in the property or its fair market value, whichever is less. Filing 2011 taxes This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property. Filing 2011 taxes Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Filing 2011 taxes Your basis does not include transportation or travel costs. Filing 2011 taxes It also does not include the direct or indirect costs for hunting or killing an animal, such as equipment costs. Filing 2011 taxes In addition, it does not include the value of your time. Filing 2011 taxes Taxidermy property means any work of art that: Is the reproduction or preservation of an animal, in whole or in part, Is prepared, stuffed, or mounted to recreate one or more characteristics of the animal, and Contains a part of the body of the dead animal. Filing 2011 taxes Property Subject to a Debt If you contribute property subject to a debt (such as a mortgage), you must reduce the fair market value of the property by: Any allowable deduction for interest you paid (or will pay) that is attributable to any period after the contribution, and If the property is a bond, the lesser of: Any allowable deduction for interest you paid (or will pay) to buy or carry the bond that is attributable to any period before the contribution, or The interest, including bond discount, receivable on the bond that is attributable to any period before the contribution, and that is not includible in your income due to your accounting method. Filing 2011 taxes This prevents you from deducting the same amount as both investment interest and a charitable contribution. Filing 2011 taxes If the recipient (or another person) assumes the debt, you must also reduce the fair market value of the property by the amount of the outstanding debt assumed. Filing 2011 taxes The amount of the debt is also treated as an amount realized on the sale or exchange of property for purposes of figuring your taxable gain (if any). Filing 2011 taxes For more information, see Bargain Sales under Giving Property That Has Increased in Value, later. Filing 2011 taxes Partial Interest in Property Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Filing 2011 taxes Right to use property. Filing 2011 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. Filing 2011 taxes Example 1. Filing 2011 taxes You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Filing 2011 taxes Because you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution. Filing 2011 taxes Example 2. Filing 2011 taxes Mandy White owns a vacation home at the beach that she sometimes rents to others. Filing 2011 taxes For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. Filing 2011 taxes At the auction, the church received and accepted a bid from Lauren Green equal to the fair rental value of the home for 1 week. Filing 2011 taxes Mandy cannot claim a deduction because of the partial interest rule. Filing 2011 taxes Lauren cannot claim a deduction either, because she received a benefit equal to the amount of her payment. Filing 2011 taxes See Contributions From Which You Benefit , earlier. Filing 2011 taxes Exceptions. Filing 2011 taxes   You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items. Filing 2011 taxes A remainder interest in your personal home or farm. Filing 2011 taxes A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property. Filing 2011 taxes Example. Filing 2011 taxes You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death. Filing 2011 taxes You can deduct the value of the remainder interest. Filing 2011 taxes An undivided part of your entire interest. Filing 2011 taxes This must consist of a part of every substantial interest or right you own in the property and must last as long as your interest in the property lasts. Filing 2011 taxes But see Fractional Interest in Tangible Personal Property , later. Filing 2011 taxes Example. Filing 2011 taxes You contribute voting stock to a qualified organization but keep the right to vote the stock. Filing 2011 taxes The right to vote is a substantial right in the stock. Filing 2011 taxes You have not contributed an undivided part of your entire interest and cannot deduct your contribution. Filing 2011 taxes A partial interest that would be deductible if transferred to certain types of trusts. Filing 2011 taxes A qualified conservation contribution (defined later). Filing 2011 taxes For information about how to figure the value of a contribution of a partial interest in property, see Partial Interest in Property Not in Trust in Publication 561. Filing 2011 taxes Fractional Interest in Tangible Personal Property You cannot deduct a charitable contribution of a fractional interest in tangible personal property unless all interests in the property are held immediately before the contribution by: You, or You and the qualifying organization receiving the contribution. Filing 2011 taxes If you make an additional contribution later, the fair market value of that contribution will be determined by using the smaller of: The fair market value of the property at the time of the initial contribution, or The fair market value of the property at the time of the additional contribution. Filing 2011 taxes Tangible personal property is defined later under Future Interest in Tangible Personal Property . Filing 2011 taxes A fractional interest in property is an undivided portion of your entire interest in the property. Filing 2011 taxes Example. Filing 2011 taxes An undivided one-quarter interest in a painting that entitles an art museum to possession of the painting for 3 months of each year is a fractional interest in the property. Filing 2011 taxes Recapture of deduction. Filing 2011 taxes   You must recapture your charitable contribution deduction by including it in your income if both of the following statements are true. Filing 2011 taxes You contributed a fractional interest in tangible personal property after August 17, 2006. Filing 2011 taxes You do not contribute the rest of your interests in the property to the original recipient or, if it no longer exists, another qualified organization on or before the earlier of: The date that is 10 years after the date of the initial contribution, or The date of your death. Filing 2011 taxes   Recapture is also required if the qualified organization has not taken substantial physical possession of the property and used it in a way related to the organization's purpose during the period beginning on the date of the initial contribution and ending on the earlier of: The date that is 10 years after the date of the initial contribution, or The date of your death. Filing 2011 taxes Additional tax. Filing 2011 taxes   If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount recaptured. Filing 2011 taxes Qualified Conservation Contribution A qualified conservation contribution is a contribution of a qualified real property interest to a qualified organization to be used only for conservation purposes. Filing 2011 taxes Qualified organization. Filing 2011 taxes   For purposes of a qualified conservation contribution, a qualified organization is: A governmental unit, A publicly supported charity, or An organization controlled by, and operated for the exclusive benefit of, a governmental unit or a publicly supported charity. Filing 2011 taxes The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. Filing 2011 taxes   A publicly supported charity is an organization of the type described in (1) under Types of Qualified Organizations , earlier, that normally receives a substantial part of its support, other than income from its exempt activities, from direct or indirect contributions from the general public or from governmental units. Filing 2011 taxes Qualified real property interest. Filing 2011 taxes   This is any of the following interests in real property. Filing 2011 taxes Your entire interest in real estate other than a mineral interest (subsurface oil, gas, or other minerals, and the right of access to these minerals). Filing 2011 taxes A remainder interest. Filing 2011 taxes A restriction (granted in perpetuity) on the use that may be made of the real property. Filing 2011 taxes Conservation purposes. Filing 2011 taxes   Your contribution must be made only for one of the following conservation purposes. Filing 2011 taxes Preserving land areas for outdoor recreation by, or for the education of, the general public. Filing 2011 taxes Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. Filing 2011 taxes Preserving open space, including farmland and forest land, if it yields a significant public benefit. Filing 2011 taxes The open space must be preserved either for the scenic enjoyment of the general public or under a clearly defined federal, state, or local governmental conservation policy. Filing 2011 taxes Preserving a historically important land area or a certified historic structure. Filing 2011 taxes Building in registered historic district. Filing 2011 taxes   If a building in a registered historic district is a certified historic structure, a contribution of a qualified real property interest that is an easement or other restriction on the exterior of the building is deductible only if it meets all of the following conditions. Filing 2011 taxes The restriction must preserve the entire exterior of the building (including its front, sides, rear, and height) and must prohibit any change to the exterior of the building that is inconsistent with its historical character. Filing 2011 taxes You and the organization receiving the contribution must enter into a written agreement certifying, under penalty of perjury, that the organization: Is a qualified organization with a purpose of environmental protection, land conservation, open space preservation, or historic preservation, and Has the resources to manage and enforce the restriction and a commitment to do so. Filing 2011 taxes You must include with your return: A qualified appraisal, Photographs of the building's entire exterior, and A description of all restrictions on development of the building, such as zoning laws and restrictive covenants. Filing 2011 taxes   If you claimed the rehabilitation credit for the building for any of the 5 years before the year of the contribution, your charitable deduction is reduced. Filing 2011 taxes For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). Filing 2011 taxes   If you claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. Filing 2011 taxes See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. Filing 2011 taxes You may be able to deduct the filing fee as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit, on Schedule A (Form 1040). Filing 2011 taxes See Deductions Subject to the 2% Limit in Publication 529 for more information. Filing 2011 taxes More information. Filing 2011 taxes   For information about determining the fair market value of qualified conservation contributions, see Publication 561. Filing 2011 taxes For information about the limits that apply to deductions for this type of contribution, see Limits on Deductions , later. Filing 2011 taxes For more information about qualified conservation contributions, see Regulations section 1. Filing 2011 taxes 170A-14. Filing 2011 taxes Future Interest in Tangible Personal Property 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. Filing 2011 taxes But see Fractional Interest in Tangible Personal Property , earlier, and Tangible personal property put to unrelated use , later. Filing 2011 taxes Related persons include your spouse, children, grandchildren, brothers, sisters, and parents. Filing 2011 taxes Related organizations may include a partnership or corporation in which you have an interest, or an estate or trust with which you have a connection. Filing 2011 taxes Tangible personal property. Filing 2011 taxes   This is any property, other than land or buildings, that can be seen or touched. Filing 2011 taxes It includes furniture, books, jewelry, paintings, and cars. Filing 2011 taxes Future interest. Filing 2011 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. Filing 2011 taxes Example. Filing 2011 taxes You own an antique car that you contribute to a museum. Filing 2011 taxes You give up ownership, but retain the right to keep the car in your garage with your personal collection. Filing 2011 taxes Because you keep an interest in the property, you cannot deduct the contribution. Filing 2011 taxes If you turn the car over to the museum in a later year, giving up all rights to its use, possession, and enjoyment, you can take a deduction for the contribution in that later year. Filing 2011 taxes Inventory If you contribute inventory (property you sell in the course of your business), the amount you can deduct is the smaller of its fair market value on the day you contributed it or its basis. Filing 2011 taxes The basis of contributed inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. Filing 2011 taxes You must remove the amount of your charitable contribution deduction from your opening inventory. Filing 2011 taxes It is not part of the cost of goods sold. Filing 2011 taxes If the cost of donated inventory is not included in your opening inventory, the inventory's basis is zero and you cannot claim a charitable contribution deduction. Filing 2011 taxes Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Filing 2011 taxes For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Filing 2011 taxes A special rule applies to certain donations of food inventory. Filing 2011 taxes See Food Inventory, later. Filing 2011 taxes Patents and Other Intellectual Property If you donate intellectual property to a qualified organization, your deduction is limited to the basis of the property or the fair market value of the property, whichever is smaller. Filing 2011 taxes Intellectual property means any of the following: Patents. Filing 2011 taxes Copyrights (other than a copyright described in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)). Filing 2011 taxes Trademarks. Filing 2011 taxes Trade names. Filing 2011 taxes Trade secrets. Filing 2011 taxes Know-how. Filing 2011 taxes Software (other than software described in Internal Revenue Code section 197(e)(3)(A)(i)). Filing 2011 taxes Other similar property or applications or registrations of such property. Filing 2011 taxes Additional deduction based on income. Filing 2011 taxes   You may be able to claim additional charitable contribution deductions in the year of the contribution and years following, based on the income, if any, from the donated property. Filing 2011 taxes   The following table shows the percentage of income from the property that you can deduct for each of your tax years ending on or after the date of the contribution. Filing 2011 taxes In the table, “tax year 1,” for example, means your first tax year ending on or after the date of the contribution. Filing 2011 taxes However, you can take the additional deduction only to the extent the total of the amounts figured using this table is more than the amount of the deduction claimed for the original donation of the property. Filing 2011 taxes   After the legal life of the intellectual property ends, or after the 10th anniversary of the donation, whichever is earlier, no additional deduction is allowed. Filing 2011 taxes The additional deductions cannot be taken for intellectual property donated to certain private foundations. Filing 2011 taxes Tax year Deductible percentage 1 100% 2 100% 3 90% 4 80% 5 70% 6 60% 7 50% 8 40% 9 30% 10 20% 11 10% 12 10% Reporting requirements. Filing 2011 taxes   You must inform the organization at the time of the donation that you intend to treat the donation as a contribution subject to the provisions just discussed. Filing 2011 taxes   The organization is required to file an information return showing the income from the property, with a copy to you. Filing 2011 taxes This is done on Form 8899, Notice of Income From Donated Intellectual Property. Filing 2011 taxes Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Filing 2011 taxes Publication 561 contains a more complete discussion. Filing 2011 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. Filing 2011 taxes Used clothing. Filing 2011 taxes   The fair market value of used clothing and other personal items is usually far less than the price you paid for them. Filing 2011 taxes There are no fixed formulas or methods for finding the value of items of clothing. Filing 2011 taxes   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. Filing 2011 taxes      Also see Clothing and Household Items , earlier. Filing 2011 taxes Example. Filing 2011 taxes    Kristin donated a coat to a thrift store operated by her church. Filing 2011 taxes She paid $300 for the coat 3 years ago. Filing 2011 taxes Similar coats in the thrift store sell for $50. Filing 2011 taxes The fair market value of the coat is $50. Filing 2011 taxes Kristin's donation is limited to $50. Filing 2011 taxes Household items. Filing 2011 taxes   The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. Filing 2011 taxes These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. Filing 2011 taxes For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value. Filing 2011 taxes   You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Filing 2011 taxes Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Filing 2011 taxes Do not include any of this evidence with your tax return. Filing 2011 taxes   If the property is valuable because it is old or unique, see the discussion under Paintings, Antiques, and Other Objects of Art in Publication 561. Filing 2011 taxes   Also see Clothing and Household Items , earlier. Filing 2011 taxes Cars, boats, and airplanes. Filing 2011 taxes   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Filing 2011 taxes Boats. Filing 2011 taxes   Except for small, inexpensive boats, the valuation of boats should be based on an appraisal by a marine surveyor or appraiser because the physical condition is critical to the value. Filing 2011 taxes Cars. Filing 2011 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. Filing 2011 taxes The guides may be published monthly or seasonally, and for different regions of the country. Filing 2011 taxes These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Filing 2011 taxes The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Filing 2011 taxes But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Filing 2011 taxes   These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. Filing 2011 taxes You can also find used car pricing information on the Internet. Filing 2011 taxes   To find the fair market value of a donated car, use the price listed in a used car guide for a private party sale, not the dealer retail value. Filing 2011 taxes However, the fair market value may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. Filing 2011 taxes The fair market value of a donated car is the same as the price listed in a used car guide for a private party sale only if the guide lists a sales price for a car that is the same make, model, and year, sold in the same area, in the same condition, with the same or similar options or accessories, and with the same or similar warranties as the donated car. Filing 2011 taxes Example. Filing 2011 taxes You donate a used car in poor condition to a local high school for use by students studying car repair. Filing 2011 taxes A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Filing 2011 taxes However, the guide shows the price for a private party sale of the car is only $750. Filing 2011 taxes The fair market value of the car is considered to be $750. Filing 2011 taxes Large quantities. Filing 2011 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. Filing 2011 taxes Example. Filing 2011 taxes You purchase 500 bibles for $1,000. Filing 2011 taxes The person who sells them to you says the retail value of these bibles is $3,000. Filing 2011 taxes If you contribute the bibles to a qualified organization, you can claim a deduction only for the price at which similar numbers of the same bible are currently being sold. Filing 2011 taxes Your charitable contribution is $1,000, unless you can show that similar numbers of that bible wer
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The Filing 2011 Taxes

Filing 2011 taxes 11. Filing 2011 taxes   Social Security and Equivalent Railroad Retirement Benefits Table of Contents Introduction Useful Items - You may want to see: Are Any of Your Benefits Taxable? How To Report Your BenefitsHow Much Is Taxable? Examples Deductions Related to Your BenefitsRepayments More Than Gross Benefits Introduction This chapter explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. Filing 2011 taxes It explains the following topics. Filing 2011 taxes How to figure whether your benefits are taxable. Filing 2011 taxes How to use the social security benefits worksheet (with examples). Filing 2011 taxes How to report your taxable benefits. Filing 2011 taxes How to treat repayments that are more than the benefits you received during the year. Filing 2011 taxes Social security benefits include monthly retirement, survivor, and disability benefits. Filing 2011 taxes They do not include supplemental security income (SSI) payments, which are not taxable. Filing 2011 taxes Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. Filing 2011 taxes They are commonly called the social security equivalent benefit (SSEB) portion of tier 1 benefits. Filing 2011 taxes If you received these benefits during 2013, you should have received a Form SSA-1099, Social Security Benefit Statement, or Form RRB-1099, Payments by the Railroad Retirement Board. Filing 2011 taxes These forms show the amounts received and repaid, and taxes withheld for the year. Filing 2011 taxes You may receive more than one of these forms for the same year. Filing 2011 taxes You should add the amounts shown on all the Forms SSA-1099 and Forms RRB-1099 you receive for the year to determine the total amounts received and repaid, and taxes withheld for that year. Filing 2011 taxes See the Appendix at the end of Publication 915 for more information. Filing 2011 taxes Note. Filing 2011 taxes When the term “benefits” is used in this chapter, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. Filing 2011 taxes What is not covered in this chapter. Filing 2011 taxes   This chapter does not cover the tax rules for the following railroad retirement benefits. Filing 2011 taxes Non-social security equivalent benefit (NSSEB) portion of tier 1 benefits. Filing 2011 taxes Tier 2 benefits. Filing 2011 taxes Vested dual benefits. Filing 2011 taxes Supplemental annuity benefits. Filing 2011 taxes For information on these benefits, see Publication 575, Pension and Annuity Income. Filing 2011 taxes   This chapter does not cover the tax rules for social security benefits reported on Form SSA-1042S, Social Security Benefit Statement, or Form RRB-1042S, Statement for Nonresident Alien Recipients of: Payments by the Railroad Retirement Board. Filing 2011 taxes For information about these benefits, see Publication 519, U. Filing 2011 taxes S. Filing 2011 taxes Tax Guide for Aliens, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Filing 2011 taxes   This chapter also does not cover the tax rules for foreign social security benefits. Filing 2011 taxes These benefits are taxable as annuities, unless they are exempt from U. Filing 2011 taxes S. Filing 2011 taxes tax or treated as a U. Filing 2011 taxes S. Filing 2011 taxes social security benefit under a tax treaty. Filing 2011 taxes Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 915 Social Security and Equivalent Railroad Retirement Benefits Forms (and Instructions) 1040-ES Estimated Tax for Individuals SSA-1099 Social Security Benefit Statement RRB-1099 Payments by the Railroad Retirement Board W-4V Voluntary Withholding Request Are Any of Your Benefits Taxable? To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. Filing 2011 taxes When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Filing 2011 taxes S. Filing 2011 taxes savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned by bona fide residents of American Samoa or Puerto Rico. Filing 2011 taxes Children's benefits. Filing 2011 taxes   The rules in this chapter apply to benefits received by children. Filing 2011 taxes See Who is taxed , later. Filing 2011 taxes Figuring total income. Filing 2011 taxes   To figure the total of one-half of your benefits plus your other income, use Worksheet 11-1 later in this discussion. Filing 2011 taxes If the total is more than your base amount, part of your benefits may be taxable. Filing 2011 taxes    If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. Filing 2011 taxes Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. Filing 2011 taxes    If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. Filing 2011 taxes If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Filing 2011 taxes Base amount. Filing 2011 taxes   Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er), $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $-0- if you are married filing separately and lived with your spouse at any time during 2013. Filing 2011 taxes Worksheet 11-1. Filing 2011 taxes   You can use Worksheet 11-1 to figure the amount of income to compare with your base amount. Filing 2011 taxes This is a quick way to check whether some of your benefits may be taxable. Filing 2011 taxes Worksheet 11-1. Filing 2011 taxes A Quick Way To Check if Your Benefits May Be Taxable A. Filing 2011 taxes Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Filing 2011 taxes Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Filing 2011 taxes (If you received more than one form, combine the amounts from box 5 and enter the total. Filing 2011 taxes ) A. Filing 2011 taxes   Note. Filing 2011 taxes If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Filing 2011 taxes B. Filing 2011 taxes Enter one-half of the amount on line A B. Filing 2011 taxes   C. Filing 2011 taxes Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Filing 2011 taxes   D. Filing 2011 taxes Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Filing 2011 taxes   E. Filing 2011 taxes Add lines B, C, and D E. Filing 2011 taxes   Note. Filing 2011 taxes Compare the amount on line E to your base amount for your filing status. Filing 2011 taxes If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. Filing 2011 taxes If the amount on line E is more than your base amount, some of your benefits may be taxable. Filing 2011 taxes You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Filing 2011 taxes If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits. Filing 2011 taxes Example. Filing 2011 taxes You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. Filing 2011 taxes In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. Filing 2011 taxes Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. Filing 2011 taxes You also received a taxable pension of $22,800 and interest income of $500. Filing 2011 taxes You did not have any tax-exempt interest income. Filing 2011 taxes Your benefits are not taxable for 2013 because your income, as figured in Worksheet 11-1, is not more than your base amount ($32,000) for married filing jointly. Filing 2011 taxes Even though none of your benefits are taxable, you must file a return for 2013 because your taxable gross income ($23,300) exceeds the minimum filing requirement amount for your filing status. Filing 2011 taxes Filled-in Worksheet 11-1. Filing 2011 taxes A Quick Way To Check if Your Benefits May Be Taxable A. Filing 2011 taxes Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Filing 2011 taxes Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Filing 2011 taxes (If you received more than one form, combine the amounts from box 5 and enter the total. Filing 2011 taxes ) A. Filing 2011 taxes $11,000 Note. Filing 2011 taxes If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Filing 2011 taxes B. Filing 2011 taxes Enter one-half of the amount on line A B. Filing 2011 taxes 5,500 C. Filing 2011 taxes Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Filing 2011 taxes 23,300 D. Filing 2011 taxes Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Filing 2011 taxes -0- E. Filing 2011 taxes Add lines B, C, and D E. Filing 2011 taxes $28,800 Note. Filing 2011 taxes Compare the amount on line E to your base amount for your filing status. Filing 2011 taxes If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. Filing 2011 taxes If the amount on line E is more than your base amount, some of your benefits may be taxable. Filing 2011 taxes You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Filing 2011 taxes If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits. Filing 2011 taxes Who is taxed. Filing 2011 taxes   Benefits are included in the taxable income (to the extent they are taxable) of the person who has the legal right to receive the benefits. Filing 2011 taxes For example, if you and your child receive benefits, but the check for your child is made out in your name, you must use only your part of the benefits to see whether any benefits are taxable to you. Filing 2011 taxes One-half of the part that belongs to your child must be added to your child's other income to see whether any of those benefits are taxable to your child. Filing 2011 taxes Repayment of benefits. Filing 2011 taxes   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Filing 2011 taxes It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Filing 2011 taxes If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Filing 2011 taxes   Your gross benefits are shown in box 3 of Form SSA-1099 or RRB-1099. Filing 2011 taxes Your repayments are shown in box 4. Filing 2011 taxes The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Filing 2011 taxes Use the amount in box 5 to figure whether any of your benefits are taxable. Filing 2011 taxes Tax withholding and estimated tax. Filing 2011 taxes   You can choose to have federal income tax withheld from your social security benefits and/or the SSEB portion of your tier 1 railroad retirement benefits. Filing 2011 taxes If you choose to do this, you must complete a Form W-4V. Filing 2011 taxes   If you do not choose to have income tax withheld, you may have to request additional withholding from other income or pay estimated tax during the year. Filing 2011 taxes For details, see Publication 505 or the instructions for Form 1040-ES. Filing 2011 taxes How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. Filing 2011 taxes You cannot use Form 1040EZ. Filing 2011 taxes Reporting on Form 1040. Filing 2011 taxes   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 20a and the taxable part on line 20b. Filing 2011 taxes If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. Filing 2011 taxes Reporting on Form 1040A. Filing 2011 taxes   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 14a and the taxable part on line 14b. Filing 2011 taxes If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. Filing 2011 taxes Benefits not taxable. Filing 2011 taxes   If you are filing Form 1040EZ, do not report any benefits on your tax return. Filing 2011 taxes If you are filing Form 1040 or Form 1040A, report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. Filing 2011 taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing 2011 taxes If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Filing 2011 taxes How Much Is Taxable? If part of your benefits are taxable, how much is taxable depends on the total amount of your benefits and other income. Filing 2011 taxes Generally, the higher that total amount, the greater the taxable part of your benefits. Filing 2011 taxes Maximum taxable part. Filing 2011 taxes   Generally, up to 50% of your benefits will be taxable. Filing 2011 taxes However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Filing 2011 taxes The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Filing 2011 taxes You are married filing separately and lived with your spouse at any time during 2013. Filing 2011 taxes Which worksheet to use. Filing 2011 taxes   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or Form 1040A. Filing 2011 taxes You can use either that worksheet or Worksheet 1 in Publication 915, unless any of the following situations applies to you. Filing 2011 taxes You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. Filing 2011 taxes In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. Filing 2011 taxes Situation (1) does not apply and you take an exclusion for interest from qualified U. Filing 2011 taxes S. Filing 2011 taxes savings bonds (Form 8815), for adoption benefits (Form 8839), for foreign earned income or housing (Form 2555 or Form 2555-EZ), or for income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. Filing 2011 taxes In this situation, you must use Worksheet 1 in Publication 915 to figure your taxable benefits. Filing 2011 taxes You received a lump-sum payment for an earlier year. Filing 2011 taxes In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. Filing 2011 taxes See Lump-sum election next. Filing 2011 taxes Lump-sum election. Filing 2011 taxes   You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. Filing 2011 taxes    This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. Filing 2011 taxes No part of the lump-sum death benefit is subject to tax. Filing 2011 taxes   Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Filing 2011 taxes However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. Filing 2011 taxes You can elect this method if it lowers your taxable benefits. Filing 2011 taxes Making the election. Filing 2011 taxes   If you received a lump-sum benefit payment in 2013 that includes benefits for one or more earlier years, follow the instructions in Publication 915 under Lump-Sum Election to see whether making the election will lower your taxable benefits. Filing 2011 taxes That discussion also explains how to make the election. Filing 2011 taxes    Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. Filing 2011 taxes Do not file an amended return for the earlier year. Filing 2011 taxes Examples The following are a few examples you can use as a guide to figure the taxable part of your benefits. Filing 2011 taxes Example 1. Filing 2011 taxes George White is single and files Form 1040 for 2013. Filing 2011 taxes He received the following income in 2013: Fully taxable pension $18,600 Wages from part-time job 9,400 Taxable interest income 990 Total $28,990 George also received social security benefits during 2013. Filing 2011 taxes The Form SSA-1099 he received in January 2014 shows $5,980 in box 5. Filing 2011 taxes To figure his taxable benefits, George completes the worksheet shown here. Filing 2011 taxes Filled-in Worksheet 1. Filing 2011 taxes Figuring Your Taxable Benefits 1. Filing 2011 taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Filing 2011 taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,980 2. Filing 2011 taxes Enter one-half of line 1 2,990 3. Filing 2011 taxes Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Filing 2011 taxes     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 28,990 4. Filing 2011 taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Filing 2011 taxes Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. Filing 2011 taxes Combine lines 2, 3, 4, and 5 31,980 7. Filing 2011 taxes Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Filing 2011 taxes     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Filing 2011 taxes Is the amount on line 7 less than the amount on line 6?     No. Filing 2011 taxes None of your social security benefits are taxable. Filing 2011 taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing 2011 taxes   Yes. Filing 2011 taxes Subtract line 7 from line 6 31,980 9. Filing 2011 taxes If you are: Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 25,000   Note. Filing 2011 taxes If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Filing 2011 taxes 85) and enter the result on line 17. Filing 2011 taxes Then go to line 18. Filing 2011 taxes   10. Filing 2011 taxes Is the amount on line 9 less than the amount on line 8?     No. Filing 2011 taxes None of your benefits are taxable. Filing 2011 taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Filing 2011 taxes If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Filing 2011 taxes     Yes. Filing 2011 taxes Subtract line 9 from line 8 6,980 11. Filing 2011 taxes Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 9,000 12. Filing 2011 taxes Subtract line 11 from line 10. Filing 2011 taxes If zero or less, enter -0- -0- 13. Filing 2011 taxes Enter the smaller of line 10 or line 11 6,980 14. Filing 2011 taxes Enter one-half of line 13 3,490 15. Filing 2011 taxes Enter the smaller of line 2 or line 14 2,990 16. Filing 2011 taxes Multiply line 12 by 85% (. Filing 2011 taxes 85). Filing 2011 taxes If line 12 is zero, enter -0- -0- 17. Filing 2011 taxes Add lines 15 and 16 2,990 18. Filing 2011 taxes Multiply line 1 by 85% (. Filing 2011 taxes 85) 5,083 19. Filing 2011 taxes Taxable benefits. Filing 2011 taxes Enter the smaller of line 17 or line 18. Filing 2011 taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $2,990 The amount on line 19 of George's worksheet shows that $2,990 of his social security benefits is taxable. Filing 2011 taxes On line 20a of his Form 1040, George enters his net benefits of $5,980. Filing 2011 taxes On line 20b, he enters his taxable benefits of $2,990. Filing 2011 taxes Example 2. Filing 2011 taxes Ray and Alice Hopkins file a joint return on Form 1040A for 2013. Filing 2011 taxes Ray is retired and received a fully taxable pension of $15,500. Filing 2011 taxes He also received social security benefits, and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. Filing 2011 taxes Alice worked during the year and had wages of $14,000. Filing 2011 taxes She made a deductible payment to her IRA account of $1,000. Filing 2011 taxes Ray and Alice have two savings accounts with a total of $250 in taxable interest income. Filing 2011 taxes They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. Filing 2011 taxes They find none of Ray's social security benefits are taxable. Filing 2011 taxes On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. Filing 2011 taxes Filled-in Worksheet 1. Filing 2011 taxes Figuring Your Taxable Benefits 1. Filing 2011 taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Filing 2011 taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,600 2. Filing 2011 taxes Enter one-half of line 1 2,800 3. Filing 2011 taxes Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Filing 2011 taxes     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 29,750 4. Filing 2011 taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Filing 2011 taxes Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. Filing 2011 taxes Combine lines 2, 3, 4, and 5 32,550 7. Filing 2011 taxes Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Filing 2011 taxes     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 1,000 8. Filing 2011 taxes Is the amount on line 7 less than the amount on line 6?     No. Filing 2011 taxes None of your social security benefits are taxable. Filing 2011 taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing 2011 taxes   Yes. Filing 2011 taxes Subtract line 7 from line 6 31,550 9. Filing 2011 taxes If you are: Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 32,000   Note. Filing 2011 taxes If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Filing 2011 taxes 85) and enter the result on line 17. Filing 2011 taxes Then go to line 18. Filing 2011 taxes   10. Filing 2011 taxes Is the amount on line 9 less than the amount on line 8?     No. Filing 2011 taxes None of your benefits are taxable. Filing 2011 taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Filing 2011 taxes If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Filing 2011 taxes     Yes. Filing 2011 taxes Subtract line 9 from line 8   11. Filing 2011 taxes Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013   12. Filing 2011 taxes Subtract line 11 from line 10. Filing 2011 taxes If zero or less, enter -0-   13. Filing 2011 taxes Enter the smaller of line 10 or line 11   14. Filing 2011 taxes Enter one-half of line 13   15. Filing 2011 taxes Enter the smaller of line 2 or line 14   16. Filing 2011 taxes Multiply line 12 by 85% (. Filing 2011 taxes 85). Filing 2011 taxes If line 12 is zero, enter -0-   17. Filing 2011 taxes Add lines 15 and 16   18. Filing 2011 taxes Multiply line 1 by 85% (. Filing 2011 taxes 85)   19. Filing 2011 taxes Taxable benefits. Filing 2011 taxes Enter the smaller of line 17 or line 18. Filing 2011 taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b   Example 3. Filing 2011 taxes Joe and Betty Johnson file a joint return on Form 1040 for 2013. Filing 2011 taxes Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. Filing 2011 taxes Joe's Form RRB-1099 shows $10,000 in box 5. Filing 2011 taxes Betty is a retired government worker and receives a fully taxable pension of $38,000. Filing 2011 taxes They had $2,300 in taxable interest income plus interest of $200 on a qualified U. Filing 2011 taxes S. Filing 2011 taxes savings bond. Filing 2011 taxes The savings bond interest qualified for the exclusion. Filing 2011 taxes They figure their taxable benefits by completing Worksheet 1. Filing 2011 taxes Because they have qualified U. Filing 2011 taxes S. Filing 2011 taxes savings bond interest, they follow the note at the beginning of the worksheet and use the amount from line 2 of their Schedule B (Form 1040A or 1040) on line 3 of the worksheet instead of the amount from line 8a of their Form 1040. Filing 2011 taxes On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). Filing 2011 taxes Filled-in Worksheet 1. Filing 2011 taxes Figuring Your Taxable Benefits Before you begin: • If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Filing 2011 taxes • Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Filing 2011 taxes None of your benefits are taxable for 2013. Filing 2011 taxes For more information, see Repayments More Than Gross Benefits. Filing 2011 taxes • If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Filing 2011 taxes S. Filing 2011 taxes Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Filing 2011 taxes Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Filing 2011 taxes 1. Filing 2011 taxes Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Filing 2011 taxes Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $10,000 2. Filing 2011 taxes Enter one-half of line 1 5,000 3. Filing 2011 taxes Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Filing 2011 taxes     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 40,500 4. Filing 2011 taxes Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Filing 2011 taxes Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. Filing 2011 taxes Combine lines 2, 3, 4, and 5 45,500 7. Filing 2011 taxes Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Filing 2011 taxes     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Filing 2011 taxes Is the amount on line 7 less than the amount on line 6?     No. Filing 2011 taxes None of your social security benefits are taxable. Filing 2011 taxes Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Filing 2011 taxes   Yes. Filing 2011 taxes Subtract line 7 from line 6 45,500 9. Filing 2011 taxes If you are: Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 32,000   Note. Filing 2011 taxes If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Filing 2011 taxes 85) and enter the result on line 17. Filing 2011 taxes Then go to line 18. Filing 2011 taxes   10. Filing 2011 taxes Is the amount on line 9 less than the amount on line 8?     No. Filing 2011 taxes None of your benefits are taxable. Filing 2011 taxes Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Filing 2011 taxes If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Filing 2011 taxes     Yes. Filing 2011 taxes Subtract line 9 from line 8 13,500 11. Filing 2011 taxes Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 12,000 12. Filing 2011 taxes Subtract line 11 from line 10. Filing 2011 taxes If zero or less, enter -0- 1,500 13. Filing 2011 taxes Enter the smaller of line 10 or line 11 12,000 14. Filing 2011 taxes Enter one-half of line 13 6,000 15. Filing 2011 taxes Enter the smaller of line 2 or line 14 5,000 16. Filing 2011 taxes Multiply line 12 by 85% (. Filing 2011 taxes 85). Filing 2011 taxes If line 12 is zero, enter -0- 1,275 17. Filing 2011 taxes Add lines 15 and 16 6,275 18. Filing 2011 taxes Multiply line 1 by 85% (. Filing 2011 taxes 85) 8,500 19. Filing 2011 taxes Taxable benefits. Filing 2011 taxes Enter the smaller of line 17 or line 18. Filing 2011 taxes Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $6,275 More than 50% of Joe's net benefits are taxable because the income on line 8 of the worksheet ($45,500) is more than $44,000. Filing 2011 taxes Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. Filing 2011 taxes Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. Filing 2011 taxes Disability payments. Filing 2011 taxes   You may have received disability payments from your employer or an insurance company that you included as income on your tax return in an earlier year. Filing 2011 taxes If you received a lump-sum payment from SSA or RRB, and you had to repay the employer or insurance company for the disability payments, you can take an itemized deduction for the part of the payments you included in gross income in the earlier year. Filing 2011 taxes If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Filing 2011 taxes Claim the deduction or credit in the same way explained under Repayments More Than Gross Benefits , later. Filing 2011 taxes Legal expenses. Filing 2011 taxes   You can usually deduct legal expenses that you pay or incur to produce or collect taxable income or in connection with the determination, collection, or refund of any tax. Filing 2011 taxes   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Filing 2011 taxes Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. Filing 2011 taxes If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Filing 2011 taxes Do not use a worksheet in this case. Filing 2011 taxes If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. Filing 2011 taxes If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. Filing 2011 taxes Joint return. Filing 2011 taxes   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5, but your spouse's does not, subtract the amount in box 5 of your form from the amount in box 5 of your spouse's form. Filing 2011 taxes You do this to get your net benefits when figuring if your combined benefits are taxable. Filing 2011 taxes Example. Filing 2011 taxes John and Mary file a joint return for 2013. Filing 2011 taxes John received Form SSA-1099 showing $3,000 in box 5. Filing 2011 taxes Mary also received Form SSA-1099 and the amount in box 5 was ($500). Filing 2011 taxes John and Mary will use $2,500 ($3,000 minus $500) as the amount of their net benefits when figuring if any of their combined benefits are taxable. Filing 2011 taxes Repayment of benefits received in an earlier year. Filing 2011 taxes   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. Filing 2011 taxes Deduction $3,000 or less. Filing 2011 taxes   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. Filing 2011 taxes Claim it on Schedule A (Form 1040), line 23. Filing 2011 taxes Deduction more than $3,000. Filing 2011 taxes    If this deduction is more than $3,000, you should figure your tax two ways: Figure your tax for 2013 with the itemized deduction included on Schedule A, line 28. Filing 2011 taxes Figure your tax for 2013 in the following steps. Filing 2011 taxes Figure the tax without the itemized deduction included on Schedule A, line 28. Filing 2011 taxes For each year after 1983 for which part of the negative figure represents a repayment of benefits, refigure your taxable benefits as if your total benefits for the year were reduced by that part of the negative figure. Filing 2011 taxes Then refigure the tax for that year. Filing 2011 taxes Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. Filing 2011 taxes Subtract the result in (c) from the result in (a). Filing 2011 taxes Compare the tax figured in methods (1) and (2). Filing 2011 taxes Your tax for 2013 is the smaller of the two amounts. Filing 2011 taxes If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. Filing 2011 taxes If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. Filing 2011 taxes Check box d and enter “I. Filing 2011 taxes R. Filing 2011 taxes C. Filing 2011 taxes 1341” in the space next to that box. Filing 2011 taxes If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. Filing 2011 taxes Prev  Up  Next   Home   More Online Publications