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Efile state taxes free Publication 503 - Main Content Table of Contents Tests To Claim the CreditQualifying Person Test Earned Income Test Work-Related Expense Test Joint Return Test Provider Identification Test How To Figure the CreditFiguring Total Work-Related Expenses Earned Income Limit Dollar Limit Amount of Credit How To Claim the CreditTax credit not refundable. Efile state taxes free Employment Taxes for Household Employers How To Get Tax HelpLow Income Taxpayer Clinics Tests To Claim the Credit To be able to claim the credit for child and dependent care expenses, you must file Form 1040, Form 1040A, or Form 1040NR, not Form 1040EZ or Form 1040NR-EZ, and meet all the following tests. Efile state taxes free The care must be for one or more qualifying persons who are identified on Form 2441. Efile state taxes free (See Qualifying Person Test. Efile state taxes free ) You (and your spouse if filing jointly) must have earned income during the year. Efile state taxes free (However, see Rule for student-spouse or spouse not able to care for self under Earned Income Test, later. Efile state taxes free ) You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work. Efile state taxes free (See Work-Related Expense Test, later. Efile state taxes free ) You must make payments for child and dependent care to someone you (and your spouse) cannot claim as a dependent. Efile state taxes free If you make payments to your child, he or she cannot be your dependent and must be age 19 or older by the end of the year. Efile state taxes free You cannot make payments to: Your spouse, or The parent of your qualifying person if your qualifying person is your child and under age 13. Efile state taxes free See Payments to Relatives or Dependents under Work-Related Expense Test, later. Efile state taxes free Your filing status may be single, head of household, or qualifying widow(er) with dependent child. Efile state taxes free If you are married, you must file a joint return, unless an exception applies to you. Efile state taxes free See Joint Return Test, later. Efile state taxes free You must identify the care provider on your tax return. Efile state taxes free (See Provider Identification Test, later. Efile state taxes free ) If you exclude or deduct dependent care benefits provided by a dependent care benefit plan, the total amount you exclude or deduct must be less than the dollar limit for qualifying expenses (generally, $3,000 if one qualifying person was cared for or $6,000 if two or more qualifying persons were cared for). Efile state taxes free (If two or more qualifying persons were cared for, the amount you exclude or deduct will always be less than the dollar limit, since the total amount you can exclude or deduct is limited to $5,000. Efile state taxes free See Reduced Dollar Limit under How To Figure the Credit, later. Efile state taxes free ) These tests are presented in Figure A and are also explained in detail in this publication. Efile state taxes free Qualifying Person Test Your child and dependent care expenses must be for the care of one or more qualifying persons. Efile state taxes free A qualifying person is: Your qualifying child who is your dependent and who was under age 13 when the care was provided (but see Child of divorced or separated parents or parents living apart , later), Your spouse who was not physically or mentally able to care for himself or herself and lived with you for more than half the year, or A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year, and either: Was your dependent, or Would have been your 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. Efile state taxes free Dependent defined. Efile state taxes free   A dependent is a person, other than you or your spouse, for whom you can claim an exemption. Efile state taxes free To be your dependent, a person must be your qualifying child (or your qualifying relative). Efile state taxes free Qualifying child. Efile state taxes free   To be your qualifying child, a child must live with you for more than half the year and meet other requirements. Efile state taxes free More information. Efile state taxes free   For more information about who is a dependent or a qualifying child, see Publication 501. Efile state taxes free Physically or mentally not able to care for oneself. Efile state taxes free   Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. Efile state taxes free Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves. Efile state taxes free Person qualifying for part of year. Efile state taxes free   You determine a person's qualifying status each day. Efile state taxes free For example, if the person for whom you pay child and dependent care expenses no longer qualifies on September 16, count only those expenses through September 15. Efile state taxes free Also see Yearly limit under Dollar Limit, later. Efile state taxes free Birth or death of otherwise qualifying person. Efile state taxes free   In determining whether a person is a qualifying person, a person who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the person's home more than half the time he or she was alive in 2013. Efile state taxes free Taxpayer identification number. Efile state taxes free   You must include on your return the name and taxpayer identification number (generally the social security number) of the qualifying person(s). Efile state taxes free If the correct information is not shown, the credit may be reduced or disallowed. Efile state taxes free Individual taxpayer identification number (ITIN) for aliens. Efile state taxes free   If your qualifying person is a nonresident or resident alien who does not have and cannot get a social security number (SSN), use that person's ITIN. Efile state taxes free The ITIN is entered wherever an SSN is requested on a tax return. Efile state taxes free If the alien does not have an ITIN, he or she must apply for one. Efile state taxes free See Form W-7, Application for IRS Individual Taxpayer Identification Number, for details. Efile state taxes free   An ITIN is for tax use only. Efile state taxes free It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U. Efile state taxes free S. Efile state taxes free law. Efile state taxes free Adoption taxpayer identification number (ATIN). Efile state taxes free   If your qualifying person is a child who was placed in your home for adoption and for whom you do not have an SSN, you must get an ATIN for the child. Efile state taxes free File Form W-7A, Application for Taxpayer Identification Number for Pending U. Efile state taxes free S. Efile state taxes free Adoptions. Efile state taxes free Child of divorced or separated parents or parents living apart. Efile state taxes free   Even if you cannot claim your child as a dependent, he or she is treated as your qualifying person if: The child was under age 13 or was not physically or mentally able to care for himself or herself, The child received over half of his or her support during the calendar year from one or both parents who are divorced or legally separated under a decree of divorce or separate maintenance, are separated under a written separation agreement, or lived apart at all times during the last 6 months of the calendar year, The child was in the custody of one or both parents for more than half the year, and You were the child's custodial parent. Efile state taxes free   The custodial parent is the parent with whom the child lived for the greater number of nights in 2013. Efile state taxes free If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. Efile state taxes free For details and an exception for a parent who works at night, see Publication 501. Efile state taxes free   The noncustodial parent cannot treat the child as a qualifying person even if that parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents. Efile state taxes free Please click here for the text description of the image. Efile state taxes free Figure a. Efile state taxes free Can you claim the credit Earned Income Test To claim the credit, you (and your spouse if filing jointly) must have earned income during the year. Efile state taxes free Earned income. Efile state taxes free   Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. Efile state taxes free A net loss from self-employment reduces earned income. Efile state taxes free Earned income also includes strike benefits and any disability pay you report as wages. Efile state taxes free   Generally, only taxable compensation is included. Efile state taxes free However, you can elect to include nontaxable combat pay in earned income. Efile state taxes free If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Efile state taxes free (In other words, if one of you makes the election, the other one can also make it but does not have to. Efile state taxes free ) Including this income will give you a larger credit only if your (or your spouse's) other earned income is less than the amount entered on line 3 of Form 2441. Efile state taxes free You should figure your credit both ways and make the election if it gives you a greater tax benefit. Efile state taxes free    You can choose to include your nontaxable combat pay in earned income when figuring your credit for child and dependent care expenses, even if you choose not to include it in earned income for the earned income credit or the exclusion or deduction for dependent care benefits. Efile state taxes free Members of certain religious faiths opposed to social security. Efile state taxes free   This section is for persons who are members of certain religious faiths that are opposed to participation in Social Security Act programs and have an IRS-approved form that exempts certain income from social security and Medicare taxes. Efile state taxes free These forms are: Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, and Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits, for use by members of recognized religious groups. Efile state taxes free   Each form is discussed here in terms of what is or is not earned income for purposes of the child and dependent care credit. Efile state taxes free For information on the use of these forms, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Efile state taxes free Form 4361. Efile state taxes free   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee are earned income. Efile state taxes free This includes wages, salaries, tips, and other taxable employee compensation. Efile state taxes free   However, amounts you received for ministerial duties, but not as an employee, do not count as earned income. Efile state taxes free Examples include fees for performing marriages and honoraria for delivering speeches. Efile state taxes free   Any amount you received for work that is not related to your ministerial duties is earned income. Efile state taxes free Form 4029. Efile state taxes free   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation are earned income. Efile state taxes free   However, amounts you received as a self-employed individual do not count as earned income. Efile state taxes free What is not earned income?   Earned income does not include: Pensions and annuities, Social security and railroad retirement benefits, Workers' compensation, Interest and dividends, Unemployment compensation, Scholarships or fellowship grants, except for those reported on Form W-2 and paid to you for teaching or other services, Nontaxable workfare payments, Child support payments received, Income of a nonresident alien that is not effectively connected with a U. Efile state taxes free S. Efile state taxes free trade or business, or Any amount received for work while an inmate in a penal institution. Efile state taxes free Rule for student-spouse or spouse not able to care for self. Efile state taxes free   Your spouse is treated as having earned income for any month that he or she is: A full-time student, or Physically or mentally not able to care for himself or herself. Efile state taxes free (Your spouse also must live with you for more than half the year. Efile state taxes free )   If you are filing a joint return, this rule also applies to you. Efile state taxes free You can be treated as having earned income for any month you are a full-time student or not able to care for yourself. Efile state taxes free   Figure the earned income of the nonworking spouse, described under (1) or (2) above, as shown under Earned Income Limit under How To Figure the Credit, later. Efile state taxes free   This rule applies to only one spouse for any one month. Efile state taxes free If, in the same month, both you and your spouse do not work and are either full-time students or not physically or mentally able to care for yourselves, only one of you can be treated as having earned income in that month. Efile state taxes free Full-time student. Efile state taxes free    You are a full-time student if you are enrolled at a school for the number of hours or classes that the school considers full time. Efile state taxes free You must have been a full-time student for some part of each of 5 calendar months during the year. Efile state taxes free (The months need not be consecutive. Efile state taxes free ) School. Efile state taxes free   The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. Efile state taxes free A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Efile state taxes free Work-Related Expense Test Child and dependent care expenses must be work-related to qualify for the credit. Efile state taxes free Expenses are considered work-related only if both of the following are true. Efile state taxes free They allow you (and your spouse if filing jointly) to work or look for work. Efile state taxes free They are for a qualifying person's care. Efile state taxes free Working or Looking for Work To be work-related, your expenses must allow you to work or look for work. Efile state taxes free If you are married, generally both you and your spouse must work or look for work. Efile state taxes free One spouse is treated as working during any month he or she is a full-time student or is not physically or mentally able to care for himself or herself. Efile state taxes free Your work can be for others or in your own business or partnership. Efile state taxes free It can be either full time or part time. Efile state taxes free Work also includes actively looking for work. Efile state taxes free However, if you do not find a job and have no earned income for the year, you cannot take this credit. Efile state taxes free See Earned Income Test, earlier. Efile state taxes free An expense is not considered work-related merely because you had it while you were working. Efile state taxes free The purpose of the expense must be to allow you to work. Efile state taxes free Whether your expenses allow you to work or look for work depends on the facts. Efile state taxes free Example 1. Efile state taxes free The cost of a babysitter while you and your spouse go out to eat is not normally a work-related expense. Efile state taxes free Example 2. Efile state taxes free You work during the day. Efile state taxes free Your spouse works at night and sleeps during the day. Efile state taxes free You pay for care of your 5-year-old child during the hours when you are working and your spouse is sleeping. Efile state taxes free Your expenses are considered work-related. Efile state taxes free Volunteer work. Efile state taxes free   For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary. Efile state taxes free Work for part of year. Efile state taxes free   If you work or actively look for work during only part of the period covered by the expenses, then you must figure your expenses for each day. Efile state taxes free For example, if you work all year and pay care expenses of $250 a month ($3,000 for the year), all the expenses are work related. Efile state taxes free However, if you work or look for work for only 2 months and 15 days during the year and pay expenses of $250 a month, your work-related expenses are limited to $625 (2½ months × $250). Efile state taxes free Temporary absence from work. Efile state taxes free   You do not have to figure your expenses for each day during a short, temporary absence from work, such as for vacation or a minor illness, if you have to pay for care anyway. Efile state taxes free Instead, you can figure your credit including the expenses you paid for the period of absence. Efile state taxes free   An absence of 2 weeks or less is a short, temporary absence. Efile state taxes free An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances. Efile state taxes free Example. Efile state taxes free You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. Efile state taxes free You become ill and miss 4 months of work but receive sick pay. Efile state taxes free You continue to pay the nanny to care for the children while you are ill. Efile state taxes free Your absence is not a short, temporary absence, and your expenses are not considered work-related. Efile state taxes free Part-time work. Efile state taxes free   If you work part-time, you generally must figure your expenses for each day. Efile state taxes free However, if you have to pay for care weekly, monthly, or in another way that includes both days worked and days not worked, you can figure your credit including the expenses you paid for days you did not work. Efile state taxes free Any day when you work at least 1 hour is a day of work. Efile state taxes free Example 1. Efile state taxes free You work 3 days a week. Efile state taxes free While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. Efile state taxes free You can pay the center $150 for any 3 days a week or $250 for 5 days a week. Efile state taxes free Your child attends the center 5 days a week. Efile state taxes free Your work-related expenses are limited to $150 a week. Efile state taxes free Example 2. Efile state taxes free The facts are the same as in Example 1 except the center does not offer a 3-day option. Efile state taxes free The entire $250 weekly fee may be a work-related expense. Efile state taxes free Care of a Qualifying Person To be work-related, your expenses must be to provide care for a qualifying person. Efile state taxes free You do not have to choose the least expensive way of providing the care. Efile state taxes free The cost of a paid care provider may be an expense for the care of a qualifying person even if another care provider is available at no cost. Efile state taxes free Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection. Efile state taxes free Expenses for household services qualify if part of the services is for the care of qualifying persons. Efile state taxes free See Household Services, later. Efile state taxes free Expenses not for care. Efile state taxes free   Expenses for care do not include amounts you pay for food, lodging, clothing, education, and entertainment. Efile state taxes free However, you can include small amounts paid for these items if they are incidental to and cannot be separated from the cost of caring for the qualifying person. Efile state taxes free Otherwise, see the discussion of Expenses partly work-related, later. Efile state taxes free   Child support payments are not for care and do not qualify for the credit. Efile state taxes free Education. Efile state taxes free   Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care. Efile state taxes free   Expenses to attend kindergarten or a higher grade are not expenses for care. Efile state taxes free Do not use these expenses to figure your credit. Efile state taxes free   However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care. Efile state taxes free   Summer school and tutoring programs are not for care. Efile state taxes free Example 1. Efile state taxes free You take your 3-year-old child to a nursery school that provides lunch and a few educational activities as part of its preschool childcare service. Efile state taxes free The lunch and educational activities are incidental to the childcare, and their cost cannot be separated from the cost of care. Efile state taxes free You can count the total cost when you figure the credit. Efile state taxes free Example 2. Efile state taxes free You place your 10-year-old child in a boarding school so you can work full time. Efile state taxes free Only the part of the boarding school expense that is for the care of your child is a work-related expense. Efile state taxes free You can count that part of the expense in figuring your credit if it can be separated from the cost of education. Efile state taxes free You cannot count any part of the amount you pay the school for your child's education. Efile state taxes free Care outside your home. Efile state taxes free   You can count the cost of care provided outside your home if the care is for your dependent under age 13 or any other qualifying person who regularly spends at least 8 hours each day in your home. Efile state taxes free Dependent care center. Efile state taxes free   You can count care provided outside your home by a dependent care center only if the center complies with all state and local regulations that apply to these centers. Efile state taxes free   A dependent care center is a place that provides care for more than six persons (other than persons who live there) and receives a fee, payment, or grant for providing services for any of those persons, even if the center is not run for profit. Efile state taxes free Camp. Efile state taxes free   The cost of sending your child to an overnight camp is not considered a work-related expense. Efile state taxes free    The cost of sending your child to a day camp may be a work-related expense, even if the camp specializes in a particular activity, such as computers or soccer. Efile state taxes free Transportation. Efile state taxes free   If a care provider takes a qualifying person to or from a place where care is provided, that transportation is for the care of the qualifying person. Efile state taxes free This includes transportation by bus, subway, taxi, or private car. Efile state taxes free However, transportation not provided by a care provider is not for the care of a qualifying person. Efile state taxes free Also, if you pay the transportation cost for the care provider to come to your home, that expense is not for care of a qualifying person. Efile state taxes free Fees and deposits. Efile state taxes free   Fees you paid to an agency to get the services of a care provider, deposits you paid to an agency or preschool, application fees, and other indirect expenses are work-related expenses if you have to pay them to get care, even though they are not directly for care. Efile state taxes free However, a forfeited deposit is not for the care of a qualifying person if care is not provided. Efile state taxes free Example 1. Efile state taxes free You paid a fee to an agency to get the services of the nanny who cares for your 2-year-old daughter while you work. Efile state taxes free The fee you paid is a work-related expense. Efile state taxes free Example 2. Efile state taxes free You placed a deposit with a preschool to reserve a place for your 3-year-old child. Efile state taxes free You later sent your child to a different preschool and forfeited the deposit. Efile state taxes free The forfeited deposit is not for care and so is not a work-related expense. Efile state taxes free Household Services Expenses you pay for household services meet the work-related expense test if they are at least partly for the well-being and protection of a qualifying person. Efile state taxes free Definition. Efile state taxes free   Household services are ordinary and usual services done in and around your home that are necessary to run your home. Efile state taxes free They include the services of a housekeeper, maid, or cook. Efile state taxes free However, they do not include the services of a chauffeur, bartender, or gardener. Efile state taxes free Housekeeper. Efile state taxes free   In this publication, the term housekeeper refers to any household employee whose services include the care of a qualifying person. Efile state taxes free Expenses partly work-related. Efile state taxes free   If part of an expense is work-related (for either household services or the care of a qualifying person) and part is for other purposes, you have to divide the expense. Efile state taxes free To figure your credit, count only the part that is work-related. Efile state taxes free However, you do not have to divide the expense if only a small part is for other purposes. Efile state taxes free Example. Efile state taxes free You pay a housekeeper to care for your 9-year-old and 15-year-old children so you can work. Efile state taxes free The housekeeper spends most of the time doing normal household work and spends 30 minutes a day driving you to and from work. Efile state taxes free You do not have to divide the expenses. Efile state taxes free You can treat the entire expense of the housekeeper as work-related because the time spent driving is minimal. Efile state taxes free Nor do you have to divide the expenses between the two children, even though the expenses are partly for the 15-year-old child who is not a qualifying person, because the expense is also partly for the care of your 9-year-old child, who is a qualifying person. Efile state taxes free However, the dollar limit (discussed later) is based on one qualifying person, not two. Efile state taxes free Meals and lodging provided for housekeeper. Efile state taxes free   If you have expenses for meals that your housekeeper eats in your home because of his or her employment, count these as work-related expenses. Efile state taxes free If you have extra expenses for providing lodging in your home to the housekeeper, count these as work-related expenses also. Efile state taxes free Example. Efile state taxes free To provide lodging to the housekeeper, you move to an apartment with an extra bedroom. Efile state taxes free You can count the extra rent and utility expenses for the housekeeper's bedroom as work-related. Efile state taxes free However, if your housekeeper moves into an existing bedroom in your home, you can count only the extra utility expenses as work-related. Efile state taxes free Taxes paid on wages. Efile state taxes free   The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. Efile state taxes free For more information on a household employer's tax responsibilities, see Employment Taxes for Household Employers, later. Efile state taxes free Payments to Relatives or Dependents You can count work-related payments you make to relatives who are not your dependents, even if they live in your home. Efile state taxes free However, do not count any amounts you pay to: A dependent for whom you (or your spouse if filing jointly) can claim an exemption, Your child who was under age 19 at the end of the year, even if he or she is not your dependent, A person who was your spouse any time during the year, or The parent of your qualifying person if your qualifying person is your child and under age 13. Efile state taxes free Joint Return Test Generally, married couples must file a joint return to take the credit. Efile state taxes free However, if you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. Efile state taxes free Legally separated. Efile state taxes free   You are not considered married if you are legally separated from your spouse under a decree of divorce or separate maintenance. Efile state taxes free You may be eligible to take the credit on your return using head of household filing status. Efile state taxes free Married and living apart. Efile state taxes free   You are not considered married and are eligible to take the credit if all the following apply. Efile state taxes free You file a return apart from your spouse. Efile state taxes free Your home is the home of a qualifying person for more than half the year. Efile state taxes free You pay more than half the cost of keeping up your home for the year. Efile state taxes free Your spouse does not live in your home for the last 6 months of the year. Efile state taxes free Costs of keeping up a home. Efile state taxes free   The costs of keeping up a home normally include property taxes, mortgage interest, rent, utility charges, home repairs, insurance on the home, and food eaten at home. Efile state taxes free   The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life insurance, transportation, or mortgage principal. Efile state taxes free   They also do not include the purchase, permanent improvement, or replacement of property. Efile state taxes free For example, you cannot include the cost of replacing a water heater. Efile state taxes free However, you can include the cost of repairing a water heater. Efile state taxes free Death of spouse. Efile state taxes free   If your spouse died during the year and you do not remarry before the end of the year, you generally must file a joint return to take the credit. Efile state taxes free If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's own return. Efile state taxes free Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. Efile state taxes free Use Form 2441, Part I, to show the information. Efile state taxes free If you do not have any care providers and you are filing Form 2441 only to report taxable income in Part III, enter “none” in line 1, column (a). Efile state taxes free Information needed. Efile state taxes free   To identify the care provider, you must give the provider's: Name, Address, and Taxpayer identification number. Efile state taxes free    If the care provider is an individual, the taxpayer identification number is his or her social security number or individual taxpayer identification number. Efile state taxes free If the care provider is an organization, then it is the employer identification number (EIN). Efile state taxes free   You do not have to show the taxpayer identification number if the care provider is a tax-exempt organization (such as a church or school). Efile state taxes free In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number. Efile state taxes free   If you cannot provide all of the information or the information is incorrect, you must be able to show that you used due diligence (discussed later) in trying to furnish the necessary information. Efile state taxes free Getting the information. Efile state taxes free    You can use Form W-10, Dependent Care Provider's Identification and Certification, to request the required information from the care provider. Efile state taxes free If you do not use Form W-10, you can get the information from one of the other sources listed in the instructions for Form W-10, including: A copy of the provider's social security card, A copy of the provider's completed Form W-4, Employee's Withholding Allowance Certificate, if he or she is your household employee, A copy of the statement furnished by your employer if the provider is your employer's dependent care plan, or A letter or invoice from the provider if it shows the necessary information. Efile state taxes free    You should keep this information with your tax records. Efile state taxes free Do not send Form W-10 (or other document containing this information) to the Internal Revenue Service. Efile state taxes free Due diligence. Efile state taxes free   If the care provider information you give is incorrect or incomplete, your credit may not be allowed. Efile state taxes free However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. Efile state taxes free   You can show due diligence by getting and keeping the provider's completed Form W-10 or one of the other sources of information just listed. Efile state taxes free Care providers can be penalized if they do not provide this information to you or if they provide incorrect information. Efile state taxes free Provider refusal. Efile state taxes free    If the provider refuses to give you the identifying information, you should report on Form 2441 whatever information you have (such as the name and address). Efile state taxes free Enter “See Attached Statement” in the columns calling for the information you do not have. Efile state taxes free Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. Efile state taxes free Be sure to write your name and social security number on this statement. Efile state taxes free The statement will show that you used due diligence in trying to furnish the necessary information. Efile state taxes free U. Efile state taxes free S. Efile state taxes free citizens and resident aliens living abroad. Efile state taxes free   If you are living abroad, your care provider may not have, and may not be required to get, a U. Efile state taxes free S. Efile state taxes free taxpayer identification number (for example, an SSN or an EIN). Efile state taxes free If so, enter “LAFCP” (Living Abroad Foreign Care Provider) in the space for the care provider's taxpayer identification number. Efile state taxes free How To Figure the Credit Your credit is a percentage of your work-related expenses. Efile state taxes free Your expenses are subject to the earned income limit and the dollar limit. Efile state taxes free The percentage is based on your adjusted gross income. Efile state taxes free Figuring Total Work-Related Expenses To figure the credit for 2013 work-related expenses, count only those you paid by December 31, 2013. Efile state taxes free Expenses prepaid in an earlier year. Efile state taxes free   If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. Efile state taxes free Claim the expenses for the later year as if they were actually paid in that later year. Efile state taxes free Expenses not paid until the following year. Efile state taxes free   Do not count 2012 expenses that you paid in 2013 as work-related expenses for 2013. Efile state taxes free You may be able to claim an additional credit for them on your 2013 return, but you must figure it separately. Efile state taxes free See Payments for prior year's expenses under Amount of Credit, later. Efile state taxes free If you had expenses in 2013 that you did not pay until 2014, you cannot count them when figuring your 2013 credit. Efile state taxes free You may be able to claim a credit for them on your 2014 return. Efile state taxes free Expenses reimbursed. Efile state taxes free   If a state social services agency pays you a nontaxable amount to reimburse you for some of your child and dependent care expenses, you cannot count the expenses that are reimbursed as work-related expenses. Efile state taxes free Example. Efile state taxes free You paid work-related expenses of $3,000. Efile state taxes free You are reimbursed $2,000 by a state social services agency. Efile state taxes free You can use only $1,000 to figure your credit. Efile state taxes free Medical expenses. Efile state taxes free   Some expenses for the care of qualifying persons who are not able to care for themselves may qualify as work-related expenses and also as medical expenses. Efile state taxes free You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction. Efile state taxes free   If you use these expenses to figure the credit and they are more than the earned income limit or the dollar limit, discussed later, you can add the excess to your medical expenses. Efile state taxes free However, if you use your total expenses to figure your medical expense deduction, you cannot use any part of them to figure your credit. Efile state taxes free For information on medical expenses, see Publication 502, Medical and Dental Expenses. Efile state taxes free    Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense deduction. Efile state taxes free Dependent Care Benefits If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. Efile state taxes free See Reduced Dollar Limit, later. Efile state taxes free But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits. Efile state taxes free Dependent care benefits. Efile state taxes free    Dependent care benefits include: Amounts your employer paid directly to either you or your care provider for the care of your qualifying person while you work, The fair market value of care in a daycare facility provided or sponsored by your employer, and Pre-tax contributions you made under a dependent care flexible spending arrangement. Efile state taxes free Your salary may have been reduced to pay for these benefits. Efile state taxes free If you received benefits as an employee, they should be shown in box 10 of your Form W-2, Wage and Tax Statement. Efile state taxes free See Statement for employee, later. Efile state taxes free Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. Efile state taxes free   Enter the amount of these benefits on Form 2441, Part III, line 12. Efile state taxes free Exclusion or deduction. Efile state taxes free   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Efile state taxes free Your employer can tell you whether your benefit plan qualifies. Efile state taxes free To claim the exclusion, you must complete Part III of Form 2441. Efile state taxes free You cannot use Form 1040EZ. Efile state taxes free   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. Efile state taxes free Therefore, you would not get an exclusion from wages. Efile state taxes free Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. Efile state taxes free To claim the deduction, you must use Form 2441. Efile state taxes free   The amount you can exclude or deduct is limited to the smallest of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). Efile state taxes free   The definition of earned income for the exclusion or deduction is the same as the definition used when figuring the credit except that earned income for the exclusion or deduction does not include any dependent care benefits you receive. Efile state taxes free    You can choose to include your nontaxable combat pay in earned income when figuring your exclusion or deduction, even if you choose not to include it in earned income for the earned income credit or the credit for child and dependent care expenses. Efile state taxes free Statement for employee. Efile state taxes free   Your employer must give you a Form W-2 (or similar statement), showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. Efile state taxes free Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. Efile state taxes free Effect of exclusion on credit. Efile state taxes free   If you exclude dependent care benefits from your income, the amount of the excluded benefits: Is not included in your work-related expenses, and Reduces the dollar limit, discussed later. Efile state taxes free Earned Income Limit The amount of work-related expenses you use to figure your credit cannot be more than: Your earned income for the year, if you are single at the end of the year, or The smaller of your or your spouse's earned income for the year if you are married at the end of the year. Efile state taxes free Earned income for the purpose of figuring the credit is defined under Earned Income Test, earlier. Efile state taxes free For purposes of item (2), use your spouse's earned income for the entire year, even if you were married for only part of the year. Efile state taxes free Example. Efile state taxes free You remarried on December 3. Efile state taxes free Your earned income for the year was $18,000. Efile state taxes free Your new spouse's earned income for the year was $2,000. Efile state taxes free You paid work-related expenses of $3,000 for the care of your 5-year-old child and qualified to claim the credit. Efile state taxes free The amount of expenses you use to figure your credit cannot be more than $2,000 (the smaller of your earned income or that of your spouse). Efile state taxes free Separated spouse. Efile state taxes free   If you are legally separated or married and living apart from your spouse (as described under Joint Return Test, earlier), you are not considered married for purposes of the earned income limit. Efile state taxes free Use only your income in figuring the earned income limit. Efile state taxes free Surviving spouse. Efile state taxes free   If your spouse died during the year and you file a joint return as a surviving spouse, you may, but are not required to, take into account the earned income of your spouse who died during the year. Efile state taxes free Community property laws. Efile state taxes free   Disregard community property laws when you figure earned income for this credit. Efile state taxes free Self-employment earnings. Efile state taxes free   If you are self-employed, include your net earnings in earned income. Efile state taxes free For purposes of the child and dependent care credit, net earnings from self-employment generally means the amount from Schedule SE (either Section A or Section B), line 3, minus any deduction for self-employment tax on Form 1040 or Form 1040NR, line 27. Efile state taxes free Include your self-employment earnings in earned income, even if they are less than $400 and you did not file Schedule SE. Efile state taxes free Clergy or church employee. Efile state taxes free   If you are a member of the clergy or a church employee, see the Instructions for Form 2441 for details. Efile state taxes free Statutory employee. Efile state taxes free   If you filed Schedule C (Form 1040) or C-EZ (Form 1040) to report income as a statutory employee, also include as earned income the amount from line 1 of that Schedule C (Form 1040) or C-EZ (Form 1040). Efile state taxes free Net loss. Efile state taxes free   You must reduce your earned income by any net loss from self-employment. Efile state taxes free Optional method if earnings are low or a net loss. Efile state taxes free   If your net earnings from self-employment are low or you have a net loss, you may be able to figure your net earnings by using an optional method instead of the regular method. Efile state taxes free Get Publication 334, Tax Guide for Small Business, for details. Efile state taxes free If you use an optional method to figure net earnings for self-employment tax purposes, include those net earnings in your earned income for this credit. Efile state taxes free In this case, subtract any deduction you claimed on Form 1040 or Form 1040NR, line 27, from the total of the amounts on Schedule SE, Section B, lines 3 and 4b, to figure your net earnings. Efile state taxes free You or your spouse is a student or not able to care for self. Efile state taxes free   Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned income. Efile state taxes free His or her earned income for each month is considered to be at least $250 if there is one qualifying person in your home, or at least $500 if there are two or more. Efile state taxes free Spouse works. Efile state taxes free   If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that month. Efile state taxes free Spouse qualifies for part of month. Efile state taxes free   If your spouse is a full-time student or not able to care for himself or herself for only part of a month, the full $250 (or $500) still applies for that month. Efile state taxes free You are a student or not able to care for self. Efile state taxes free   These rules also apply if you are a student or not able to care for yourself and are filing a joint return. Efile state taxes free For each month or part of a month you are a student or not able to care for yourself, your earned income is considered to be at least $250 (or $500). Efile state taxes free If you also work during that month, use the higher of $250 (or $500) or your actual earned income for that month. Efile state taxes free Both spouses qualify. Efile state taxes free   If, in the same month, both you and your spouse are either full-time students or not able to care for yourselves, only one spouse can be considered to have this earned income of $250 (or $500) for that month. Efile state taxes free Example. Efile state taxes free Jim works and keeps up a home for himself and his wife Sharon. Efile state taxes free Because of an accident, Sharon is not able to care for herself for 11 months during the tax year. Efile state taxes free During the 11 months, Jim pays $3,300 of work-related expenses for Sharon's care. Efile state taxes free These expenses also qualify as medical expenses. Efile state taxes free Their adjusted gross income is $29,000 and the entire amount is Jim's earned income. Efile state taxes free Jim and Sharon's earned income limit is the smallest of the following amounts. Efile state taxes free   Jim and Sharon's Earned Income Limit   1) Work-related expenses Jim paid $   3,300   2) Jim's earned income $   29,000   3) Income considered earned by Sharon (11 × $250) $    2,750   Jim and Sharon can use $2,750 to figure the credit and treat the balance of $550 ($3,300 − $2,750) as a medical expense. Efile state taxes free However, if they use the $3,300 first as a medical expense, they cannot use any part of that amount to figure the credit. Efile state taxes free Dollar Limit There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. Efile state taxes free This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons. Efile state taxes free If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. Efile state taxes free This limit does not need to be divided equally among them. Efile state taxes free For example, if your work-related expenses for the care of one qualifying person are $3,200 and your work-related expenses for another qualifying person are $2,800, you can use the total, $6,000, when figuring the credit. Efile state taxes free Yearly limit. Efile state taxes free   The dollar limit is a yearly limit. Efile state taxes free The amount of the dollar limit remains the same no matter how long, during the year, you have a qualifying person in your household. Efile state taxes free Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at any time during the year. Efile state taxes free Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year. Efile state taxes free Example 1. Efile state taxes free You pay $500 a month for after-school care for your son. Efile state taxes free He turned 13 on May 1 and is no longer a qualifying person. Efile state taxes free You can use the $2,000 of expenses for his care January through April to figure your credit because it is not more than the $3,000 yearly limit. Efile state taxes free Example 2. Efile state taxes free In July of this year, to permit your spouse to begin a new job, you enrolled your 3-year-old daughter in a nursery school that provides preschool childcare. Efile state taxes free You paid $300 per month for the childcare. Efile state taxes free You can use the full $1,800 you paid ($300 × 6 months) as qualified expenses because it is not more than the $3,000 yearly limit. Efile state taxes free Reduced Dollar Limit If you received dependent care benefits that you exclude or deduct from your income, you must subtract that amount from the dollar limit that applies to you. Efile state taxes free Your reduced dollar limit is figured on Form 2441, Part III. Efile state taxes free See Dependent Care Benefits, earlier, for information on excluding or deducting these benefits. Efile state taxes free Example 1. Efile state taxes free George is a widower with one child and earns $24,000 a year. Efile state taxes free He pays work-related expenses of $2,900 for the care of his 4-year-old child and qualifies to claim the credit for child and dependent care expenses. Efile state taxes free His employer pays an additional $1,000 under a qualified dependent care benefit plan. Efile state taxes free This $1,000 is excluded from George's income. Efile state taxes free Although the dollar limit for his work-related expenses is $3,000 (one qualifying person), George figures his credit on only $2,000 of the $2,900 work-related expenses he paid. Efile state taxes free This is because his dollar limit is reduced as shown next. Efile state taxes free   George's Reduced Dollar Limit 1) Maximum allowable expenses for one qualifying person $3,000 2) Minus: Dependent care benefits George excludes from income −1,000 3) Reduced dollar limit on expenses George can use for the credit $2,000 Example 2. Efile state taxes free Randall is married and both he and his wife are employed. Efile state taxes free Each has earned income in excess of $6,000. Efile state taxes free They have two children, Anne and Andy, ages 2 and 4, who attend a daycare facility licensed and regulated by the state. Efile state taxes free Randall's work-related expenses are $6,000 for the year. Efile state taxes free Randall's employer has a dependent care assistance program as part of its cafeteria plan, which allows employees to make pre-tax contributions to a dependent care flexible spending arrangement. Efile state taxes free Randall has elected to take the maximum $5,000 exclusion from his salary to cover dependent care expenses through this program. Efile state taxes free Although the dollar limit for his work-related expenses is $6,000 (two or more qualifying persons), Randall figures his credit on only $1,000 of the $6,000 work-related expense paid. Efile state taxes free This is because his dollar limit is reduced as shown next. Efile state taxes free   Randall's Reduced Dollar Limit 1) Maximum allowable expenses for two qualifying persons $6,000 2) Minus: Dependent care benefits selected from employer's cafeteria plan and  excluded from Randall's income −5,000 3) Reduced dollar limit on work-related expenses Randall can use for the credit $1,000 Amount of Credit To determine the amount of your credit, multiply your work-related expenses (after applying the earned income and dollar limits) by a percentage. Efile state taxes free This percentage depends on your adjusted gross income shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Efile state taxes free The following table shows the percentage to use based on adjusted gross income. Efile state taxes free   IF your adjusted gross income is: THEN the       Over:       But not over:   percentage is:       $0   —   $15,000   35%       15,000   —   17,000   34%       17,000   —   19,000   33%       19,000   —   21,000   32%       21,000   —   23,000   31%       23,000   —   25,000   30%       25,000   —   27,000   29%       27,000   —   29,000   28%       29,000   —   31,000   27%       31,000   —   33,000   26%       33,000   —   35,000   25%       35,000   —   37,000   24%       37,000   —   39,000   23%       39,000   —   41,000   22%       41,000   —   43,000   21%       43,000   —   No limit   20%   To qualify for the credit, you must have one or more qualifying persons. Efile state taxes free You should show the expenses for each person on Form 2441, line 2, column (c). Efile state taxes free However, it is possible a qualifying person could have no expenses and a second qualifying person could have expenses exceeding $3,000. Efile state taxes free You should list -0- for the one person and the actual amount for the second person. Efile state taxes free The $6,000 limit that applies to two or more qualifying persons would still be used to compute your credit unless you already excluded or deducted, in Part III of Form 2441, certain dependent care benefits paid to you (or on your behalf) by your employer. Efile state taxes free Example. Efile state taxes free Roger and Megan Paris have two qualifying children. Efile state taxes free They received $1,000 of dependent care benefits from Megan's employer during 2013, but they incurred a total of $19,500 of child and dependent care expenses. Efile state taxes free They complete Part III of Form 2441 to exclude the $1,000 from their taxable income (offsetting $1,000 of their expenses). Efile state taxes free Roger and Megan continue to line 27 to figure their credit using the remaining $18,500 of expenses. Efile state taxes free Line 30 tells them to complete line 2 without including any dependent care benefits. Efile state taxes free They complete line 2 of Form 2441, listing both Susan and James, as shown in the Line 2 example above. Efile state taxes free Line 2 Example (a) Qualifying person's name (b) Qualifying person's social security number (c) Qualified expenses you incurred and paid in 2013 for the person listed in column (a) First Last Susan Paris 123-00-6789 -0- James Paris 987-00-4321 18,500. Efile state taxes free 00 All of Susan's expenses were covered by the $1,000 of employer-provided dependent care benefits. Efile state taxes free However, their son James has special needs and they paid $18,500 for his care. Efile state taxes free Line 3 imposes a $5,000 limit for two or more children ($6,000 limit, minus $1,000 already excluded from income = $5,000) and Roger and Megan continue to complete the form. Efile state taxes free Even though line 2 indicates one of the Paris children did not have any dependent care expenses, it does not change the fact that they had two qualifying children for the purposes of Form 2441. Efile state taxes free Payments for prior year's expenses. Efile state taxes free   If you had work-related expenses in 2012 that you paid in 2013, you may be able to increase the credit on your 2013 return. Efile state taxes free Attach a statement to your form showing how you figured the additional amount from 2012. Efile state taxes free Then enter “CPYE” (Credit for Prior Year Expenses) and the amount of the credit on the dotted line next to line 9 on Form 2441. Efile state taxes free Also enter the name and taxpayer identification number of the person for whom you paid the prior year's expenses. Efile state taxes free Then add this credit to the amount on line 9, and replace the amount on line 9 with the total. Efile state taxes free See Worksheet A. Efile state taxes free Example. Efile state taxes free In 2012, Sam and Kate had childcare expenses of $2,600 for their 12-year-old child. Efile state taxes free Of the $2,600, they paid $2,000 in 2012 and $600 in 2013. Efile state taxes free Their adjusted gross income for 2012 was $30,000. Efile state taxes free Sam's earned income of $14,000 was less than Kate's earned income. Efile state taxes free A credit for their 2012 expenses paid in 2013 is not allowed in 2012. Efile state taxes free It is allowed for the 2013 tax year, but they must use their adjusted gross income for 2012 to compute the amount. Efile state taxes free The filled-in Worksheet A they used to figure this credit is shown later. Efile state taxes free Sam and Kate add the $162 from line 13 of this worksheet to their 2013 credit and enter the total on their Form 2441, line 9. Efile state taxes free They enter “CPYE $162” and their child's name and SSN in the space to the left of line 9. Efile state taxes free Worksheet A. Efile state taxes free Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. Efile state taxes free 1. Efile state taxes free   Enter your 2012 qualified expenses paid in 2012 1. Efile state taxes free     2. Efile state taxes free   Enter your 2012 qualified expenses paid in 2013 2. Efile state taxes free     3. Efile state taxes free   Add the amounts on lines 1 and 2 3. Efile state taxes free     4. Efile state taxes free   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Efile state taxes free     5. Efile state taxes free   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Efile state taxes free     6. Efile state taxes free   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Efile state taxes free     7. Efile state taxes free   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Efile state taxes free     8. Efile state taxes free   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Efile state taxes free     9. Efile state taxes free   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Efile state taxes free     10. Efile state taxes free   Subtract the amount on line 9 from the amount on line 8 and enter the result. Efile state taxes free If zero or less, stop here. Efile state taxes free You cannot increase your 2013 credit by any previous year's expenses 10. Efile state taxes free     11. Efile state taxes free   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Efile state taxes free     12. Efile state taxes free   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Efile state taxes free             IF your 2012 adjusted gross income is:   THEN the decimal                 Over:   But not over:     amount is:                 $0 — $15,000     . Efile state taxes free 35                 15,000 — 17,000     . Efile state taxes free 34                 17,000 — 19,000     . Efile state taxes free 33                 19,000 — 21,000     . Efile state taxes free 32                 21,000 — 23,000     . Efile state taxes free 31                 23,000 — 25,000     . Efile state taxes free 30                 25,000 — 27,000     . Efile state taxes free 29                 27,000 — 29,000     . Efile state taxes free 28                 29,000 — 31,000     . Efile state taxes free 27                 31,000 — 33,000     . Efile state taxes free 26                 33,000 — 35,000     . Efile state taxes free 25                 35,000 — 37,000     . Efile state taxes free 24                 37,000 — 39,000     . Efile state taxes free 23                 39,000 — 41,000     . Efile state taxes free 22                 41,000 — 43,000     . Efile state taxes free 21                 43,000 — No limit     . Efile state taxes free 20           13. Efile state taxes free   Multiply line 10 by line 12. Efile state taxes free Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Efile state taxes free Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses           Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. Efile state taxes free       Worksheet A. Efile state taxes free Filled-in Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. Efile state taxes free 1. Efile state taxes free   Enter your 2012 qualified expenses paid in 2012 1. Efile state taxes free   $2,000 2. Efile state taxes free   Enter your 2012 qualified expenses paid in 2013 2. Efile state taxes free   600 3. Efile state taxes free   Add the amounts on lines 1 and 2 3. Efile state taxes free   2,600 4. Efile state taxes free   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Efile state taxes free   3,000 5. Efile state taxes free   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Efile state taxes free   0 6. Efile state taxes free   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Efile state taxes free   3,000 7. Efile state taxes free   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Efile state taxes free   14,000 8. Efile state taxes free   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Efile state taxes free   2,600 9. Efile state taxes free   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Efile state taxes free   2,000 10. Efile state taxes free   Subtract the amount on line 9 from the amount on line 8 and enter the result. Efile state taxes free If zero or less, stop here. Efile state taxes free You cannot increase your 2013 credit by any previous year's expenses 10. Efile state taxes free   600 11. Efile state taxes free   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Efile state taxes free   30,000 12. Efile state taxes free   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Efile state taxes free   . Efile state taxes free 27         IF your 2012 adjusted gross income is:   THEN the decimal                 Over   But not over     amount is:                 $0 — $15,000     . Efile state taxes free 35                 15,000 — 17,000     . Efile state taxes free 34                 17,000 — 19,000     . Efile state taxes free 33                 19,000 — 21,000     . Efile state taxes free 32                 21,000 — 23,000     . Efile state taxes free 31                 23,000 — 25,000     . Efile state taxes free 30                 25,000 — 27,000     . Efile state taxes free 29                 27,000 — 29,000     . Efile state taxes free 28                 29,000 — 31,000     . Efile state taxes free 27                 31,000 — 33,000     . Efile state taxes free 26                 33,000 — 35,000     . Efile state taxes free 25                 35,000 — 37,000     . Efile state taxes free 24                 37,000 — 39,000     . Efile state taxes free 23                 39,000 — 41,000     . Efile state taxes free 22                 41,000 — 43,000     . Efile state taxes free 21                 43,000 — No limit     . Efile state taxes free 20           13. Efile state taxes free   Multiply line 10 by line 12. Efile state taxes free Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Efile state taxes free Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses             Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. Efile state taxes free   $162   How To Claim the Credit To claim the credit, you can file Form 1040, Form 1040A, or Form 1040NR. Efile state taxes free You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. Efile state taxes free Form 1040, Form 1040A, or Form 1040NR. Efile state taxes free    You must complete Form 2441 and attach it to your Form 1040, Form 1040A, or Form 1040NR. Efile state taxes free Enter the credit on your Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46. Efile state taxes free Limit on credit. Efile state taxes free    The amount of credit you can claim is limited to your tax. Efile state taxes free For more information, see the Instructions for Form 2441. Efile state taxes free Tax credit not refundable. Efile state taxes free   You cannot get a refund for any part of the credit that is more than this limit. Efile state taxes free Recordkeeping. Efile state taxes free You should keep records of your work-related expenses. Efile state taxes free Also, if your dependent or spouse is not able to care for himself or herself, your records should show both the nature and length of the disability. Efile state taxes free Other records you should keep to support your claim for the credit are described under Provider Identification Test, earlier. Efile state taxes free Employment Taxes for Household Employers If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer. Efile state taxes free If you are a household employer, you will need an employer identification number (EIN) and you may have to pay employment taxes. Efile state taxes free If the individuals who work in your home are self-employed, you are not liable for any of the taxes discussed in this section. Efile state taxes free Self-employed persons who are in business for themselves are not household employees. Efile state taxes free Usually, you are not a household employer if the person who cares for your dependent or spouse does so at his or her home or place of business. Efile state taxes free If you use a placement agency that exercises control over what work is done and how it will be done by a babysitter or companion who works in your home, the worker is not your employee. Efile state taxes free This control could include providing rules of conduct and appearance and requiring regular reports. Efile state taxes free In this case, you do not have to pay employment taxes. Efile state taxes free But, if an agency merely gives you a list of sitters and you hire one from that list, and pay the sitter directly, the sitter may be your employee. Efile state taxes free If you have a household employee, you may be subject to: Social security and Medicare taxes, Federal unemployment tax, and Federal income tax withholding. Efile state taxes free Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. Efile state taxes free Federal unemployment (FUTA) tax is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. Efile state taxes free Federal income tax is withheld from the employee's total pay if the employee asks you to do so and you agree. Efile state taxes free For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its instructions. Efile state taxes free State employment tax. Efile state taxes free   You may also have to pay state unemployment tax. Efile state taxes free Contact your state unemployment tax office for information. Efile state taxes free You should also find out whether you need to pay or collect other state employment taxes or carry worker's compensation insurance. Efile state taxes free For a list of state unemployment tax agencies, visit the U. Efile state taxes free S. Efile state taxes free Department of Labor's website. Efile state taxes free To find that website, use the link in Publication 926 or search online. Efile state taxes free How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Efile state taxes free Free help with your tax return. Efile state taxes free   You can get free help preparing your return nationwide from IRS-certified volunteers. Efile state taxes free The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Efile state taxes free The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Efile state taxes free Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Efile state taxes free In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Efile state taxes free To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Efile state taxes free gov, download the IRS2Go app, or call 1-800-906-9887. Efile state taxes free   As part of the TCE program, AARP offers the Tax-Aide counseling program. Efile state taxes free To find the nearest AARP Tax-Aide site, visit AARP's website at www. Efile state taxes free aarp. Efile state taxes free org/money/taxaide or call 1-888-227-7669. Efile state taxes free For more information on these programs, go to IRS. Efile state taxes free gov and enter “VITA” in the search box. Efile state taxes free Internet. Efile state taxes free    IRS. Efile state taxes free gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Efile state taxes free Download the free IRS2Go app from the iTunes app store or from Google Play. Efile state taxes free Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Efile state taxes free Check the status of your 2013 refund with the Where's My Refund? application on IRS. Efile state taxes free gov or download the IRS2Go app and select the Refund Status option. Efile state taxes free The IRS issues more than 9 out of 10 refunds in less than 21 days. Efile state taxes free Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Efile state taxes free You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Efile state taxes free The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Efile state taxes free Use the Interactive Tax Assistant (ITA) to research your tax questions. Efile state taxes free No need to wait on the phone or stand in line. Efile state taxes free The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Efile state taxes free When you reach the response screen, you can print the entire interview and the final response for your records. Efile state taxes free New subject areas are added on a regular basis. Efile state taxes free  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Efile state taxes free gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Efile state taxes free You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Efile state taxes free The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Efile state taxes free When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Efile state taxes free Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Efile state taxes free You can also ask the IRS to mail a return or an account transcript to you. Efile state taxes free Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Efile state taxes free gov or by calling 1-800-908-9946. Efile state taxes free Tax return and tax account transcripts are generally available for the current year and the past three years. Efile state taxes free Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Efile state taxes free Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Efile state taxes free If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Efile state taxes free Check the status of your amended return using Where's My Amended Return? Go to IRS. Efile state taxes free gov and enter Where's My Amended Return? in the search box. Efile state taxes free You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Efile state taxes free It can take up to 3 weeks from the date you mailed it to show up in our system. Efile state taxes free Make a payment using one of several safe and convenient electronic payment options available on IRS. Efile state taxes free gov. Efile state taxes free Select the Payment tab on the front page of IRS. Efile state taxes free gov for more information. Efile state taxes free Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Efile state taxes free Figure your income tax withholding with the IRS Withholding Calculator on IRS. Efile state taxes free gov. Efile state taxes free Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Efile state taxes free Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Efile state taxes free gov. Efile state taxes free Request an Electronic Filing PIN by going to IRS. Efile state taxes free gov and entering Electronic Filing PIN in the search box. Efile state taxes free Download forms, instructions and publications, including accessible versions for people with disabilities. Efile state taxes free Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Efile state taxes free gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Efile state taxes free An employee can answer questions about your tax account or help you set up a payment plan. Efile state taxes free Before you visit, check the Office Locator on IRS. Efile state taxes free gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Efile state taxes free If you have a special need, such as a disability, you can request an appointment. Efile state taxes free Call the local number listed in the Office Locator, or look in the phone book under Unit
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Job Corps. Is a no-cost education and vocational training program that helps young people (ages 16 to 24) improve the quality of their lives through vocational and academic training.

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Website: Job Corps

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Phone Number: (202) 693-3000

Toll-free: (800) 733-5627

TTY: (877) 889-5627

The Efile State Taxes Free

Efile state taxes free 24. Efile state taxes free   Contributions Table of Contents Introduction Useful Items - You may want to see: Organizations That Qualify To Receive Deductible ContributionsTypes of Qualified Organizations Contributions You Can DeductContributions From Which You Benefit Expenses Paid for Student Living With You Out-of-Pocket Expenses in Giving Services Contributions You Cannot DeductContributions to Individuals Contributions to Nonqualified Organizations Contributions From Which You Benefit Value of Time or Services Personal Expenses Appraisal Fees Contributions of PropertyException. Efile state taxes free Household items. Efile state taxes free Deduction more than $500. Efile state taxes free Form 1098-C. Efile state taxes free Filing deadline approaching and still no Form 1098-C. Efile state taxes free Exception 1—vehicle used or improved by organization. Efile state taxes free Exception 2—vehicle given or sold to needy individual. Efile state taxes free Deduction $500 or less. Efile state taxes free Right to use property. Efile state taxes free Tangible personal property. Efile state taxes free Future interest. Efile state taxes free Determining Fair Market Value Giving Property That Has Decreased in Value Giving Property That Has Increased in Value When To DeductChecks. Efile state taxes free Text message. Efile state taxes free Credit card. Efile state taxes free Pay-by-phone account. Efile state taxes free Stock certificate. Efile state taxes free Promissory note. Efile state taxes free Option. Efile state taxes free Borrowed funds. Efile state taxes free Limits on DeductionsCarryovers Records To KeepCash Contributions Noncash Contributions Out-of-Pocket Expenses How To Report Introduction This chapter explains how to claim a deduction for your charitable contributions. Efile state taxes free It discusses the following topics. Efile state taxes free The types of organizations to which you can make deductible charitable contributions. Efile state taxes free The types of contributions you can deduct. Efile state taxes free How much you can deduct. Efile state taxes free What records you must keep. Efile state taxes free How to report your charitable contributions. Efile state taxes free A charitable contribution is a donation or gift to, or for the use of, a qualified organization. Efile state taxes free It is voluntary and is made without getting, or expecting to get, anything of equal value. Efile state taxes free Form 1040 required. Efile state taxes free    To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. Efile state taxes free The amount of your deduction may be limited if certain rules and limits explained in this chapter apply to you. Efile state taxes free The limits are explained in detail in Publication 526. Efile state taxes free Useful Items - You may want to see: Publication 526 Charitable Contributions 561 Determining the Value of Donated Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 8283 Noncash Charitable Contributions Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if you make them to a qualified organization. Efile state taxes free Most organizations other than churches and governments must apply to the IRS to become a qualified organization. Efile state taxes free How to check whether an organization can receive deductible charitable contributions. Efile state taxes free   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Efile state taxes free Or go to IRS. Efile state taxes free gov. Efile state taxes free Click on “Tools” and then on “Exempt Organizations Select Check” (www. Efile state taxes free irs. Efile state taxes free gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Efile state taxes free This online tool will enable you to search for qualified organizations. Efile state taxes free You can also call the IRS to find out if an organization is qualified. Efile state taxes free Call 1-877-829-5500. Efile state taxes free 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. Efile state taxes free Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Efile state taxes free gsa. Efile state taxes free gov/fedrelay. Efile state taxes free Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Efile state taxes free 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). Efile state taxes free 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. Efile state taxes free Certain organizations that foster national or international amateur sports competition also qualify. Efile state taxes free War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Efile state taxes free Domestic fraternal societies, orders, and associations operating under the lodge system. Efile state taxes free (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. Efile state taxes free ) Certain nonprofit cemetery companies or corporations. Efile state taxes free (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. Efile state taxes free ) The United States or any state, the District of Columbia, a U. Efile state taxes free S. Efile state taxes free possession (including Puerto Rico), a political subdivision of a state or U. Efile state taxes free S. Efile state taxes free possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Efile state taxes free (Your contribution to this type of organization is only deductible if it is to be used solely for public purposes. Efile state taxes free ) Examples. Efile state taxes free    The following list gives some examples of qualified organizations. Efile state taxes free Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Efile state taxes free Most nonprofit charitable organizations such as the American Red Cross and the United Way. Efile state taxes free Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Efile state taxes free 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. Efile state taxes free 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 . Efile state taxes free Nonprofit hospitals and medical research organizations. Efile state taxes free Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Efile state taxes free Nonprofit volunteer fire companies. Efile state taxes free Nonprofit organizations that develop and maintain public parks and recreation facilities. Efile state taxes free Civil defense organizations. Efile state taxes free Certain foreign charitable organizations. Efile state taxes free   Under income tax treaties with Canada, Israel, and Mexico, you may be able to deduct contributions to certain Canadian, Israeli, or Mexican charitable organizations. Efile state taxes free Generally, you must have income from sources in that country. Efile state taxes free For additional information on the deduction of contributions to Canadian charities, see Publication 597, Information on the United States–Canada Income Tax Treaty. Efile state taxes free If you need more information on how to figure your contribution to Mexican and Israeli charities, see Publication 526. Efile state taxes free Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Efile state taxes free 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. Efile state taxes free The contributions must be made to a qualified organization and not set aside for use by a specific person. Efile state taxes free 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. Efile state taxes free See Contributions of Property , later in this chapter. Efile state taxes free 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. Efile state taxes free See Limits on Deductions , later. Efile state taxes free In addition, the total of your charitable contribution deduction and certain other itemized deductions may be limited. Efile state taxes free See chapter 29. Efile state taxes free Table 24-1 gives examples of contributions you can and cannot deduct. Efile state taxes free 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. Efile state taxes free Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Efile state taxes free If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Efile state taxes free For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Efile state taxes free Example 1. Efile state taxes free You pay $65 for a ticket to a dinner-dance at a church. Efile state taxes free Your entire $65 payment goes to the church. Efile state taxes free The ticket to the dinner-dance has a fair market value of $25. Efile state taxes free When you buy your ticket, you know that its value is less than your payment. Efile state taxes free To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Efile state taxes free You can deduct $40 as a contribution to the church. Efile state taxes free Example 2. Efile state taxes free At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Efile state taxes free The amount you pay is no more than the fair rental value. Efile state taxes free You have not made a deductible charitable contribution. Efile state taxes free Athletic events. Efile state taxes free   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. Efile state taxes free   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Efile state taxes free Subtract the price of the tickets from your payment. Efile state taxes free You can deduct 80% of the remaining amount as a charitable contribution. Efile state taxes free Example 1. Efile state taxes free You pay $300 a year for membership in a university's athletic scholarship program. Efile state taxes free 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. Efile state taxes free You can deduct $240 (80% of $300) as a charitable contribution. Efile state taxes free Table 24-1. Efile state taxes free Examples of Charitable Contributions—A Quick Check Use the following lists for a quick check of whether you can deduct a contribution. Efile state taxes free See the rest of this chapter for more information and additional rules and limits that may apply. Efile state taxes free Deductible As  Charitable Contributions Not Deductible  As Charitable Contributions Money or property you give to:  Churches, synagogues, temples, mosques, and other religious organizations Federal, state, and local governments, if your contribution is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park) Nonprofit schools and hospitals The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc. Efile state taxes free War veterans groups   Expenses paid for a student living with you, sponsored by a qualified organization  Out-of-pocket expenses when you serve a qualified organization as a volunteer Money or property you give to:  Civic leagues, social and sports clubs, labor unions, and chambers of commerce Foreign organizations (except certain Canadian, Israeli, and Mexican charities) Groups that are run for personal profit Groups whose purpose is to lobby for law changes Homeowners' associations Individuals Political groups or candidates for public office   Cost of raffle, bingo, or lottery tickets  Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups  Tuition  Value of your time or services  Value of blood given to a blood bank    Example 2. Efile state taxes free 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. Efile state taxes free You must subtract the usual price of a ticket ($120) from your $300 payment. Efile state taxes free The result is $180. Efile state taxes free Your deductible charitable contribution is $144 (80% of $180). Efile state taxes free Charity benefit events. Efile state taxes free   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. Efile state taxes free   If there is an established charge for the event, that charge is the value of your benefit. Efile state taxes free If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Efile state taxes free Whether you use the tickets or other privileges has no effect on the amount you can deduct. Efile state taxes free However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Efile state taxes free    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. Efile state taxes free If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Efile state taxes free Example. Efile state taxes free You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Efile state taxes free Printed on the ticket is “Contribution—$40. Efile state taxes free ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Efile state taxes free Membership fees or dues. Efile state taxes free    You may be able to deduct membership fees or dues you pay to a qualified organization. Efile state taxes free However, you can deduct only the amount that is more than the value of the benefits you receive. Efile state taxes free    You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Efile state taxes free They are not qualified organizations. Efile state taxes free Certain membership benefits can be disregarded. Efile state taxes free   Both you and the organization can disregard the following membership benefits if you receive them in return for an annual payment of $75 or less. Efile state taxes free 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. Efile state taxes free 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. Efile state taxes free 20. Efile state taxes free Token items. Efile state taxes free   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Efile state taxes free You receive only a small item or other benefit of token value. Efile state taxes free 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. Efile state taxes free Written statement. Efile state taxes free   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. Efile state taxes free The statement must say that you can deduct only the amount of your payment that is more than the value of the goods or services you received. Efile state taxes free It must also give you a good faith estimate of the value of those goods or services. Efile state taxes free   The organization can give you the statement either when it solicits or when it receives the payment from you. Efile state taxes free Exception. Efile state taxes free   An organization will not have to give you this statement if one of the following is true. Efile state taxes free 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. Efile state taxes free You receive only items whose value is not substantial as described under Token items , earlier. Efile state taxes free You receive only membership benefits that can be disregarded, as described earlier. Efile state taxes free Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Efile state taxes free You can deduct qualifying expenses for a foreign or American student who: Lives in your home under a written agreement between you and a qualified organization as part of a program of the organization to provide educational opportunities for the student, Is not your relative or dependent, and Is a full-time student in the twelfth or any lower grade at a school in the United States. Efile state taxes free You can deduct up to $50 a month for each full calendar month the student lives with you. Efile state taxes free Any month when conditions (1) through (3) are met for 15 days or more counts as a full month. Efile state taxes free For additional information, see Expenses Paid for Student Living With You in Publication 526. Efile state taxes free Mutual exchange program. Efile state taxes free   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. Efile state taxes free Table 24-2. Efile state taxes free Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Efile state taxes free All of the rules explained in this chapter also apply. Efile state taxes free See, in particular, Out-of-Pocket Expenses in Giving Services . Efile state taxes free Question Answer I volunteer 6 hours a week in the office of a qualified organization. Efile state taxes free The receptionist is paid $10 an hour for the same work. Efile state taxes free Can I deduct $60 a week for my time?    No, you cannot deduct the value of your time or services. Efile state taxes free The office is 30 miles from my home. Efile state taxes free 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. Efile state taxes free If you don't want to figure your actual costs, you can deduct 14 cents for each mile. Efile state taxes free I volunteer as a Red Cross nurse's aide at a hospital. Efile state taxes free 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. Efile state taxes free I pay a babysitter to watch my children while I volunteer for a qualified organization. Efile state taxes free 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. Efile state taxes free (If you have childcare expenses so you can work for pay, see chapter 32. Efile state taxes free ) Out-of-Pocket Expenses in Giving Services Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. Efile state taxes free 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. Efile state taxes free Table 24-2 contains questions and answers that apply to some individuals who volunteer their services. Efile state taxes free Conventions. Efile state taxes free   If a qualified organization selects you to attend a convention as its representative, you can deduct unreimbursed expenses for travel, including reasonable amounts for meals and lodging, while away from home overnight in connection with the convention. Efile state taxes free However, see Travel , later. Efile state taxes free   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Efile state taxes free You also cannot deduct transportation, meals and lodging, and other expenses for your spouse or children. Efile state taxes free    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. Efile state taxes free You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Efile state taxes free Uniforms. Efile state taxes free   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. Efile state taxes free Foster parents. Efile state taxes free   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. Efile state taxes free A qualified organization must select the individuals you take into your home for foster care. Efile state taxes free    You can deduct expenses that meet both of the following requirements. Efile state taxes free They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Efile state taxes free They are incurred primarily to benefit the qualified organization. Efile state taxes free   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. Efile state taxes free For details, see chapter 3. Efile state taxes free Example. Efile state taxes free You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Efile state taxes free Your unreimbursed expenses are not deductible as charitable contributions. Efile state taxes free Car expenses. Efile state taxes free   You can deduct as a charitable contribution any unreimbursed out-of-pocket expenses, such as the cost of gas and oil, that are directly related to the use of your car in giving services to a charitable organization. Efile state taxes free You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Efile state taxes free    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. Efile state taxes free   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Efile state taxes free   You must keep reliable written records of your car expenses. Efile state taxes free For more information, see Car expenses under Records To Keep, later. Efile state taxes free Travel. Efile state taxes free   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. Efile state taxes free This applies whether you pay the expenses directly or indirectly. Efile state taxes free You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Efile state taxes free   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Efile state taxes free 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. Efile state taxes free 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. Efile state taxes free Example 1. Efile state taxes free You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Efile state taxes free You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Efile state taxes free You participate in the activities of the group and enjoy your time with them. Efile state taxes free You oversee the breaking of camp and you transport the group home. Efile state taxes free You can deduct your travel expenses. Efile state taxes free Example 2. Efile state taxes free You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Efile state taxes free The project is sponsored by a charitable organization. Efile state taxes free In most circumstances, you cannot deduct your expenses. Efile state taxes free Example 3. Efile state taxes free You work for several hours each morning on an archaeological dig sponsored by a charitable organization. Efile state taxes free The rest of the day is free for recreation and sightseeing. Efile state taxes free You cannot take a charitable contribution deduction even though you work very hard during those few hours. Efile state taxes free Example 4. Efile state taxes free You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Efile state taxes free In the evening you go to the theater. Efile state taxes free You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Efile state taxes free Daily allowance (per diem). Efile state taxes free   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. Efile state taxes free You may be able to deduct any necessary travel expenses that are more than the allowance. Efile state taxes free Deductible travel expenses. Efile state taxes free   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. Efile state taxes free Because these travel expenses are not business-related, they are not subject to the same limits as business-related expenses. Efile state taxes free For information on business travel expenses, see Travel Expenses in chapter 26. Efile state taxes free Contributions You Cannot Deduct There are some contributions you cannot deduct, such as those made to specific individuals and those made to nonqualified organizations. Efile state taxes free (See Contributions to Individuals and Contributions to Nonqualified Organizations , next. Efile state taxes free ) There are others you can deduct only part of, as discussed later under Contributions From Which You Benefit . Efile state taxes free Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Efile state taxes free Contributions to fraternal societies made for the purpose of paying medical or burial expenses of deceased members. Efile state taxes free Contributions to individuals who are needy or worthy. Efile state taxes free You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Efile state taxes free 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. Efile state taxes free Example. Efile state taxes free You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Efile state taxes free However, you cannot deduct contributions earmarked for relief of a particular individual or family. Efile state taxes free Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Efile state taxes free Expenses you paid for another person who provided services to a qualified organization. Efile state taxes free Example. Efile state taxes free Your son does missionary work. Efile state taxes free You pay his expenses. Efile state taxes free You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Efile state taxes free Payments to a hospital that are for a specific patient's care or for services for a specific patient. Efile state taxes free You cannot deduct these payments even if the hospital is operated by a city, a state, or other qualified organization. Efile state taxes free Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Efile state taxes free 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. Efile state taxes free Chambers of commerce and other business leagues or organizations (but see chapter 28). Efile state taxes free Civic leagues and associations. Efile state taxes free Communist organizations. Efile state taxes free Country clubs and other social clubs. Efile state taxes free Most foreign organizations (other than certain Canadian, Israeli, or Mexican charitable organizations). Efile state taxes free For details, see Publication 526. Efile state taxes free Homeowners' associations. Efile state taxes free Labor unions (but see chapter 28). Efile state taxes free Political organizations and candidates. Efile state taxes free 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. Efile state taxes free See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Efile state taxes free These contributions include the following. Efile state taxes free Contributions for lobbying. Efile state taxes free This includes amounts that you earmark for use in, or in connection with, influencing specific legislation. Efile state taxes free Contributions to a retirement home for room, board, maintenance, or admittance. Efile state taxes free Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Efile state taxes free Costs of raffles, bingo, lottery, etc. Efile state taxes free 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. Efile state taxes free For information on how to report gambling winnings and losses, see Gambling winnings in chapter 12 and Gambling Losses Up to the Amount of Gambling Winnings in chapter 28. Efile state taxes free Dues to fraternal orders and similar groups. Efile state taxes free However, see Membership fees or dues , earlier, under Contributions You Can Deduct. Efile state taxes free Tuition, or amounts you pay instead of tuition. Efile state taxes free 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. Efile state taxes free 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. Efile state taxes free ” 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. Efile state taxes free Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Efile state taxes free 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. Efile state taxes free Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final (but see Adoption Credit in chapter 37, and the instructions for Form 8839, Qualified Adoption Expenses). Efile state taxes free You also may be able to claim an exemption for the child. Efile state taxes free See Adopted child in chapter 3. Efile state taxes free Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property (but see chapter 28). Efile state taxes free 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. Efile state taxes free However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Efile state taxes free See Giving Property That Has Increased in Value , later. Efile state taxes free 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. Efile state taxes free Clothing and household items. Efile state taxes free   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. Efile state taxes free Exception. Efile state taxes free   You can take a deduction for a contribution of an item of clothing or household item that is not in good used condition or better if you deduct more than $500 for it and include a qualified appraisal of it with your return. Efile state taxes free Household items. Efile state taxes free   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Efile state taxes free   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Efile state taxes free Cars, boats, and airplanes. Efile state taxes free    The following rules apply to any donation of a qualified vehicle. Efile state taxes free 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. Efile state taxes free Deduction more than $500. Efile state taxes free   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. Efile state taxes free 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. Efile state taxes free Form 1098-C. Efile state taxes free   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. Efile state taxes free The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Efile state taxes free   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453 and mail the forms to the IRS, or Include Copy B of Form 1098-C as a pdf attachment if your software program allows it. Efile state taxes free   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Efile state taxes free    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Efile state taxes free But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Efile state taxes free Filing deadline approaching and still no Form 1098-C. Efile state taxes free   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Efile state taxes free Request an automatic 6-month extension of time to file your return. Efile state taxes free You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Efile state taxes free S. Efile state taxes free Individual Income Tax Return. Efile state taxes free  For more information, see Automatic Extension in chapter 1. Efile state taxes free File the return on time without claiming the deduction for the qualified vehicle. Efile state taxes free After receiving the Form 1098-C, file an amended return, Form 1040X, claiming the deduction. Efile state taxes free Attach Copy B of Form 1098-C (or other statement) to the amended return. Efile state taxes free For more information about amended returns, see Amended Returns and Claims for Refund in chapter 1. Efile state taxes free Exceptions. Efile state taxes free   There are two exceptions to the rules just described for deductions of more than $500. Efile state taxes free Exception 1—vehicle used or improved by organization. Efile state taxes free   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. Efile state taxes free 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. Efile state taxes free The Form 1098-C (or other statement) will show whether this exception applies. Efile state taxes free Exception 2—vehicle given or sold to needy individual. Efile state taxes free   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. Efile state taxes free 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. Efile state taxes free The Form 1098-C (or other statement) will show whether this exception applies. Efile state taxes free   This exception does not apply if the organization sells the vehicle at auction. Efile state taxes free In that case, you cannot deduct the vehicle's fair market value. Efile state taxes free Example. Efile state taxes free Anita donates a used car to a qualified organization. Efile state taxes free She bought it 3 years ago for $9,000. Efile state taxes free A used car guide shows the fair market value for this type of car is $6,000. Efile state taxes free However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Efile state taxes free Neither exception 1 nor exception 2 applies. Efile state taxes free If Anita itemizes her deductions, she can deduct $2,900 for her donation. Efile state taxes free She must attach Form 1098-C and Form 8283 to her return. Efile state taxes free Deduction $500 or less. Efile state taxes free   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. Efile state taxes free 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. Efile state taxes free   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. Efile state taxes free The statement must contain the information and meet the tests for an acknowledgment described under Deductions of At Least $250 But Not More Than $500 under Records To Keep, later. Efile state taxes free Partial interest in property. Efile state taxes free   Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Efile state taxes free Right to use property. Efile state taxes free   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Efile state taxes free For exceptions and more information, see Partial Interest in Property Not in Trust in Publication 561. Efile state taxes free Future interests in tangible personal property. Efile state taxes free   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. Efile state taxes free Tangible personal property. Efile state taxes free   This is any property, other than land or buildings, that can be seen or touched. Efile state taxes free It includes furniture, books, jewelry, paintings, and cars. Efile state taxes free Future interest. Efile state taxes free   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. Efile state taxes free Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Efile state taxes free Publication 561 contains a more complete discussion. Efile state taxes free 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. Efile state taxes free Used clothing and household items. Efile state taxes free   The fair market value of used clothing and household goods is usually far less than what you paid for them when they were new. Efile state taxes free   For used clothing, you should claim as the value the price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops. Efile state taxes free See Household Goods in Publication 561 for information on the valuation of household goods, such as furniture, appliances, and linens. Efile state taxes free Example. Efile state taxes free Dawn Greene donated a coat to a thrift store operated by her church. Efile state taxes free She paid $300 for the coat 3 years ago. Efile state taxes free Similar coats in the thrift store sell for $50. Efile state taxes free The fair market value of the coat is $50. Efile state taxes free Dawn's donation is limited to $50. Efile state taxes free Cars, boats, and airplanes. Efile state taxes free   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Efile state taxes free 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. Efile state taxes free The guides may be published monthly or seasonally and for different regions of the country. Efile state taxes free These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Efile state taxes free The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Efile state taxes free But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Efile state taxes free   You can also find used car pricing information on the Internet. Efile state taxes free Example. Efile state taxes free You donate a used car in poor condition to a local high school for use by students studying car repair. Efile state taxes free A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Efile state taxes free However, the guide shows the price for a private party sale of the car is only $750. Efile state taxes free The fair market value of the car is considered to be $750. Efile state taxes free Large quantities. Efile state taxes free   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. Efile state taxes free Giving Property That Has Decreased in Value If you contribute property with a fair market value that is less than your basis in it, your deduction is limited to its fair market value. Efile state taxes free You cannot claim a deduction for the difference between the property's basis and its fair market value. Efile state taxes free Giving Property That Has Increased in Value If you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. Efile state taxes free Your basis in property is generally what you paid for it. Efile state taxes free See chapter 13 if you need more information about basis. Efile state taxes free Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. Efile state taxes free Ordinary income property. Efile state taxes free   Property is ordinary income property if you would have recognized ordinary income or short-term capital gain had you sold it at fair market value on the date it was contributed. Efile state taxes free Examples of ordinary income property are inventory, works of art created by the donor, manuscripts prepared by the donor, and capital assets (defined in chapter 14) held 1 year or less. Efile state taxes free Amount of deduction. Efile state taxes free   The amount you can deduct for a contribution of ordinary income property is its fair market value minus the amount that would be ordinary income or short-term capital gain if you sold the property for its fair market value. Efile state taxes free Generally, this rule limits the deduction to your basis in the property. Efile state taxes free Example. Efile state taxes free You donate stock you held for 5 months to your church. Efile state taxes free The fair market value of the stock on the day you donate it is $1,000, but you paid only $800 (your basis). Efile state taxes free Because the $200 of appreciation would be short-term capital gain if you sold the stock, your deduction is limited to $800 (fair market value minus the appreciation). Efile state taxes free Capital gain property. Efile state taxes free   Property is capital gain property if you would have recognized long-term capital gain had you sold it at fair market value on the date of the contribution. Efile state taxes free It includes capital assets held more than 1 year, as well as certain real property and depreciable property used in your trade or business and, generally, held more than 1 year. Efile state taxes free Amount of deduction — general rule. Efile state taxes free   When figuring your deduction for a contribution of capital gain property, you generally can use the fair market value of the property. Efile state taxes free Exceptions. Efile state taxes free   In certain situations, you must reduce the fair market value by any amount that would have been long-term capital gain if you had sold the property for its fair market value. Efile state taxes free Generally, this means reducing the fair market value to the property's cost or other basis. Efile state taxes free Bargain sales. Efile state taxes free   A bargain sale of property is a sale or exchange for less than the property's fair market value. Efile state taxes free A bargain sale to a qualified organization is partly a charitable contribution and partly a sale or exchange. Efile state taxes free A bargain sale may result in a taxable gain. Efile state taxes free More information. Efile state taxes free   For more information on donating appreciated property, see Giving Property That Has Increased in Value in Publication 526. Efile state taxes free When To Deduct You can deduct your contributions only in the year you actually make them in cash or other property (or in a later carryover year, as explained later under Carryovers ). Efile state taxes free This applies whether you use the cash or an accrual method of accounting. Efile state taxes free Time of making contribution. Efile state taxes free   Usually, you make a contribution at the time of its unconditional delivery. Efile state taxes free Checks. Efile state taxes free   A check you mail to a charity is considered delivered on the date you mail it. Efile state taxes free Text message. Efile state taxes free   Contributions made by text message are deductible in the year you send the text message if the contribution is charged to your telephone or wireless account. Efile state taxes free Credit card. Efile state taxes free    Contributions charged on your credit card are deductible in the year you make the charge. Efile state taxes free Pay-by-phone account. Efile state taxes free    Contributions made through a pay-by-phone account are considered delivered on the date the financial institution pays the amount. Efile state taxes free Stock certificate. Efile state taxes free   A properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity or to the charity's agent. Efile state taxes free However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the charity, your contribution is not delivered until the date the stock is transferred on the books of the corporation. Efile state taxes free Promissory note. Efile state taxes free   If you issue and deliver a promissory note to a charity as a contribution, it is not a contribution until you make the note payments. Efile state taxes free Option. Efile state taxes free    If you grant a charity an option to buy real property at a bargain price, it is not a contribution until the organization exercises the option. Efile state taxes free Borrowed funds. Efile state taxes free   If you contribute borrowed funds, you can deduct the contribution in the year you deliver the funds to the charity, regardless of when you repay the loan. Efile state taxes free Limits on Deductions The amount you can deduct for charitable contributions cannot be more than 50% of your adjusted gross income (AGI). Efile state taxes free Your deduction may be further limited to 30% or 20% of your AGI, depending on the type of property you give and the type of organization you give it to. Efile state taxes free If your total contributions for the year are 20% or less of your AGI, these limits do not apply to you. Efile state taxes free The limits are discussed in detail under Limits on Deductions in Publication 526. Efile state taxes free A higher limit applies to certain qualified conservation contributions. Efile state taxes free See Publication 526 for details. Efile state taxes free Carryovers You can carry over any contributions you cannot deduct in the current year because they exceed your adjusted-gross-income limits. Efile state taxes free You can deduct the excess in each of the next 5 years until it is used up, but not beyond that time. Efile state taxes free For more information, see Carryovers in Publication 526. Efile state taxes free Records To Keep You must keep records to prove the amount of the contributions you make during the year. Efile state taxes free The kind of records you must keep depends on the amount of your contributions and whether they are: Cash contributions, Noncash contributions, or Out-of-pocket expenses when donating your services. Efile state taxes free Note. Efile state taxes free An organization generally must give you a written statement if it receives a payment from you that is more than $75 and is partly a contribution and partly for goods or services. Efile state taxes free (See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Efile state taxes free ) Keep the statement for your records. Efile state taxes free It may satisfy all or part of the recordkeeping requirements explained in the following discussions. Efile state taxes free Cash Contributions Cash contributions include those paid by cash, check, electronic funds transfer, debit card, credit card, or payroll deduction. Efile state taxes free You cannot deduct a cash contribution, regardless of the amount, unless you keep one of the following. Efile state taxes free A bank record that shows the name of the qualified organization, the date of the contribution, and the amount of the contribution. Efile state taxes free Bank records may include: A canceled check, A bank or credit union statement, or A credit card statement. Efile state taxes free A receipt (or a letter or other written communication) from the qualified organization showing the name of the organization, the date of the contribution, and the amount of the contribution. Efile state taxes free The payroll deduction records described next. Efile state taxes free Payroll deductions. Efile state taxes free   If you make a contribution by payroll deduction, you must keep: A pay stub, Form W-2, or other document furnished by your employer that shows the date and amount of the contribution, and A pledge card or other document prepared by or for the qualified organization that shows the name of the organization. Efile state taxes free If your employer withheld $250 or more from a single paycheck, see Contributions of $250 or More , next. Efile state taxes free Contributions of $250 or More You can claim a deduction for a contribution of $250 or more only if you have an acknowledgment of your contribution from the qualified organization or certain payroll deduction records. Efile state taxes free If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that lists each contribution and the date of each contribution and shows your total contributions. Efile state taxes free Amount of contribution. Efile state taxes free   In figuring whether your contribution is $250 or more, do not combine separate contributions. Efile state taxes free For example, if you gave your church $25 each week, your weekly payments do not have to be combined. Efile state taxes free Each payment is a separate contribution. Efile state taxes free   If contributions are made by payroll deduction, the deduction from each paycheck is treated as a separate contribution. Efile state taxes free   If you made a payment that is partly for goods and services, as described earlier under Contributions From Which You Benefit , your contribution is the amount of the payment that is more than the value of the goods and services. Efile state taxes free Acknowledgment. Efile state taxes free   The acknowledgment must meet these tests. Efile state taxes free It must be written. Efile state taxes free It must include: The amount of cash you contributed, Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), A description and good faith estimate of the value of any goods or services described in (b) (other than intangible religious benefits), and A statement that the only benefit you received was an intangible religious benefit, if that was the case. Efile state taxes free The acknowledgment does not need to describe or estimate the value of an intangible religious benefit. Efile state taxes free An intangible religious benefit is a benefit that generally is not sold in commercial transactions outside a donative (gift) context. Efile state taxes free An example is admission to a religious ceremony. Efile state taxes free You must get it on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Efile state taxes free   If the acknowledgment does not show the date of the contribution, you must also have a bank record or receipt, as described earlier, that does show the date of the contribution. Efile state taxes free If the acknowledgment shows the date of the contribution and meets the other tests just described, you do not need any other records. Efile state taxes free Payroll deductions. Efile state taxes free   If you make a contribution by payroll deduction and your employer withholds $250 or more from a single paycheck, you must keep: A pay stub, Form W-2, or other document furnished by your employer that shows the amount withheld as a contribution, and A pledge card or other document prepared by or for the qualified organization that shows the name of the organization and states the organization does not provide goods or services in return for any contribution made to it by payroll deduction. Efile state taxes free A single pledge card may be kept for all contributions made by payroll deduction regardless of amount as long as it contains all the required information. Efile state taxes free   If the pay stub, Form W-2, pledge card, or other document does not show the date of the contribution, you must have another document that does show the date of the contribution. Efile state taxes free If the pay stub, Form W-2, pledge card, or other document shows the date of the contribution, you do not need any other records except those just described in (1) and (2). Efile state taxes free Noncash Contributions For a contribution not made in cash, the records you must keep depend on whether your deduction for the contribution is: Less than $250, At least $250 but not more than $500, Over $500 but not more than $5,000, or Over $5,000. Efile state taxes free Amount of deduction. Efile state taxes free   In figuring whether your deduction is $500 or more, combine your claimed deductions for all similar items of property donated to any charitable organization during the year. Efile state taxes free   If you received goods or services in return, as described earlier in Contributions From Which You Benefit , reduce your contribution by the value of those goods or services. Efile state taxes free If you figure your deduction by reducing the fair market value of the donated property by its appreciation, as described earlier in Giving Property That Has Increased in Value , your contribution is the reduced amount. Efile state taxes free Deductions of Less Than $250 If you make any noncash contribution, you must get and keep a receipt from the charitable organization showing: The name of the charitable organization, The date and location of the charitable contribution, and A reasonably detailed description of the property. Efile state taxes free A letter or other written communication from the charitable organization acknowledging receipt of the contribution and containing the information in (1), (2), and (3) will serve as a receipt. Efile state taxes free You are not required to have a receipt where it is impractical to get one (for example, if you leave property at a charity's unattended drop site). Efile state taxes free Additional records. Efile state taxes free   You must also keep reliable written records for each item of contributed property. Efile state taxes free Your written records must include the following information. Efile state taxes free The name and address of the organization to which you contributed. Efile state taxes free The date and location of the contribution. Efile state taxes free A description of the property in detail reasonable under the circumstances. Efile state taxes free For a security, keep the name of the issuer, the type of security, and whether it is regularly traded on a stock exchange or in an over-the-counter market. Efile state taxes free The fair market value of the property at the time of the contribution and how you figured the fair market value. Efile state taxes free If it was determined by appraisal, keep a signed copy of the appraisal. Efile state taxes free The cost or other basis of the property, if you must reduce its fair market value by appreciation. Efile state taxes free Your records should also include the amount of the reduction and how you figured it. Efile state taxes free The amount you claim as a deduction for the tax year as a result of the contribution, if you contribute less than your entire interest in the property during the tax year. Efile state taxes free Your records must include the amount you claimed as a deduction in any earlier years for contributions of other interests in this property. Efile state taxes free They must also include the name and address of each organization to which you contributed the other interests, the place where any such tangible property is located or kept, and the name of any person in possession of the property, other than the organization to which you contributed it. Efile state taxes free The terms of any conditions attached to the contribution of property. Efile state taxes free Deductions of At Least $250 But Not More Than $500 If you claim a deduction of at least $250 but not more than $500 for a noncash charitable contribution, you must get and keep an acknowledgment of your contribution from the qualified organization. Efile state taxes free If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that shows your total contributions. Efile state taxes free The acknowledgment must contain the information in items (1) through (3) under Deductions of Less Than $250 , earlier, and your written records must include the information listed in that discussion under Additional records . Efile state taxes free The acknowledgment must also meet these tests. Efile state taxes free It must be written. Efile state taxes free It must include: A description (but not necessarily the value) of any property you contributed, Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), and A description and good faith estimate of the value of any goods or services described in (b). Efile state taxes free If the only benefit you received was an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in a commercial transaction outside the donative context, the acknowledgment must say so and does not need to describe or estimate the value of the benefit. Efile state taxes free You must get it on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Efile state taxes free Deductions Over $500 You are required to give additional information if you claim a deduction over $500 for noncash charitable contributions. Efile state taxes free See Records To Keep in Publication 526 for more information. Efile state taxes free Out-of-Pocket Expenses If you give services to a qualified organization and have unreimbursed out-of-pocket expenses related to those services, the following two rules apply. Efile state taxes free You must have adequate records to prove the amount of the expenses. Efile state taxes free If any of your unreimbursed out-of-pocket expenses, considered separately, are $250 or more (for example, you pay $250 or more for an airline ticket to attend a convention of a qualified organization as a chosen representative), you must get an acknowledgment from the qualified organization that contains: A description of the services you provided, A statement of whether or not the organization provided you any goods or services to reimburse you for the expenses you incurred, A description and a good faith estimate of the value of any goods or services (other than intangible religious benefits) provided to reimburse you, and A statement that the only benefit you received was an intangible religious benefit, if that was the case. Efile state taxes free The acknowledgment does not need to describe or estimate the value of an intangible religious benefit (defined earlier under Acknowledgment ). Efile state taxes free You must get the acknowledgment on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Efile state taxes free Car expenses. Efile state taxes free   If you claim expenses directly related to use of your car in giving services to a qualified organization, you must keep reliable written records of your expenses. Efile state taxes free Whether your records are considered reliable depends on all the facts and circumstances. Efile state taxes free Generally, they may be considered reliable if you made them regularly and at or near the time you had the expenses. Efile state taxes free   For example, your records might show the name of the organization you were serving and the dates you used your car for a charitable purpose. Efile state taxes free If you use the standard mileage rate of 14 cents a mile, your records must show the miles you drove your car for the charitable purpose. Efile state taxes free If you deduct your actual expenses, your records must show the costs of operating the car that are directly related to a charitable purpose. Efile state taxes free   See Car expenses under Out-of-Pocket Expenses in Giving Services, earlier, for the expenses you can deduct. Efile state taxes free How To Report Report your charitable contributions on Schedule A (Form 1040). Efile state taxes free If your total deduction for all noncash contributions for the year is over $500, you must also file Form 8283. Efile state taxes free See How To Report in Publication 526 for more information. Efile state taxes free Prev  Up  Next   Home   More Online Publications