Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Instructions Michigan 2012 Mi 1040x

Forms For 2012 Income TaxTurbo Tax 1040ez2012 Form 1040 Ez2010 Amended Tax Return1040a FormState Tax FormFile Taxes For 2012 FreeAmend Tax Return1040ez 2010 File OnlineTurbotax Deluxe Federal E File State 2012 For Pc DownloadFile 2012 Income Tax Free OnlineUnemployment Tax FormH & R Block Free File 2012Free Online State Tax Filing1040ez Tax Form 2012Federal And State Income Tax FormsTax Student1040ez Form For 2010Free Tax HelpDo State Taxes Online FreeMa Taxes Ng Army MilIrs Form 1040x 20121040ez 2010 Tax FormHow To File A Amended ReturnWww Freefilefillableforms Com2012 Amended ReturnOhio 1040x1040 Easy1040ez 2013 Instructions1040sFederal And State Income Tax Forms2011 1040 Ez Tax FormsState Income Tax Rates2011 1040a Tax FormsFree Federal And State Tax2011 Tax PrepHow To File Amended ReturnIncome Tax Forms 2011Efile 2011W 2 Show State Income Tax Withheld

Instructions Michigan 2012 Mi 1040x

Instructions michigan 2012 mi 1040x Publication 521 - Main Content Table of Contents Who Can Deduct Moving ExpensesMove Related to Start of Work Distance Test Time Test Retirees or Survivors Who Move to the United States Deductible Moving ExpensesMoves to Locations in the United States Moves to Locations Outside the United States Nondeductible Expenses ReimbursementsTypes of Reimbursement Plans Tax Withholding and Estimated Tax How and When To ReportForm 3903 When To Deduct Expenses Illustrated Example Members of the Armed Forces How To Get Tax Help Who Can Deduct Moving Expenses You can deduct your moving expenses if you meet all three of the following requirements. Instructions michigan 2012 mi 1040x Your move is closely related to the start of work. Instructions michigan 2012 mi 1040x You meet the distance test. Instructions michigan 2012 mi 1040x You meet the time test. Instructions michigan 2012 mi 1040x After you have read these rules, you may want to use Figure B to help you decide if you can deduct your moving expenses. Instructions michigan 2012 mi 1040x Retirees, survivors, and Armed Forces members. Instructions michigan 2012 mi 1040x   Different rules may apply if you are a member of the Armed Forces or a retiree or survivor moving to the United States. Instructions michigan 2012 mi 1040x These rules are discussed later in this publication. Instructions michigan 2012 mi 1040x Move Related to Start of Work Your move must be closely related, both in time and in place, to the start of work at your new job location. Instructions michigan 2012 mi 1040x Closely related in time. Instructions michigan 2012 mi 1040x   In most cases, you can consider moving expenses incurred within 1 year from the date you first reported to work at the new location as closely related in time to the start of work. Instructions michigan 2012 mi 1040x It is not necessary that you arrange to work before moving to a new location, as long as you actually go to work in that location. Instructions michigan 2012 mi 1040x    Figure A. Instructions michigan 2012 mi 1040x Illustration of Distance Test Please click here for the text description of the image. Instructions michigan 2012 mi 1040x Figure A   If you do not move within 1 year of the date you begin work, you ordinarily cannot deduct the expenses unless you can show that circumstances existed that prevented the move within that time. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x Your family moved more than a year after you started work at a new location. Instructions michigan 2012 mi 1040x You delayed the move for 18 months to allow your child to complete high school. Instructions michigan 2012 mi 1040x You can deduct your moving expenses. Instructions michigan 2012 mi 1040x Closely related in place. Instructions michigan 2012 mi 1040x   You can generally consider your move closely related in place to the start of work if the distance from your new home to the new job location is not more than the distance from your former home to the new job location. Instructions michigan 2012 mi 1040x If your move does not meet this requirement, you may still be able to deduct moving expenses if you can show that: You are required to live at your new home as a condition of your employment, or You will spend less time or money commuting from your new home to your new job location. Instructions michigan 2012 mi 1040x Home defined. Instructions michigan 2012 mi 1040x   Your home means your main home (residence). Instructions michigan 2012 mi 1040x It can be a house, apartment, condominium, houseboat, house trailer, or similar dwelling. Instructions michigan 2012 mi 1040x It does not include other homes owned or kept up by you or members of your family. Instructions michigan 2012 mi 1040x It also does not include a seasonal home, such as a summer beach cottage. Instructions michigan 2012 mi 1040x Your former home means your home before you left for your new job location. Instructions michigan 2012 mi 1040x Your new home means your home within the area of your new job location. Instructions michigan 2012 mi 1040x Retirees or survivors. Instructions michigan 2012 mi 1040x   You may be able to deduct the expenses of moving to the United States or its possessions even though the move is not related to the start of work at a new job location. Instructions michigan 2012 mi 1040x You must have worked outside the United States or be a survivor of someone who did. Instructions michigan 2012 mi 1040x See Retirees or Survivors Who Move to the United States, later. Instructions michigan 2012 mi 1040x Distance Test Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home. Instructions michigan 2012 mi 1040x For example, if your old main job location was 3 miles from your former home, your new main job location must be at least 53 miles from that former home. Instructions michigan 2012 mi 1040x You can use Worksheet 1 to see if you meet this test. Instructions michigan 2012 mi 1040x Worksheet 1. Instructions michigan 2012 mi 1040x Distance Test   Note. Instructions michigan 2012 mi 1040x Members of the Armed Forces may not have to meet this test. Instructions michigan 2012 mi 1040x See Members of the Armed Forces. Instructions michigan 2012 mi 1040x     1. Instructions michigan 2012 mi 1040x Enter the number of miles from your old home to your new workplace 1. Instructions michigan 2012 mi 1040x miles 2. Instructions michigan 2012 mi 1040x Enter the number of miles from your old home to your old workplace 2. Instructions michigan 2012 mi 1040x miles 3. Instructions michigan 2012 mi 1040x Subtract line 2 from line 1. Instructions michigan 2012 mi 1040x If zero or less, enter -0- 3. Instructions michigan 2012 mi 1040x miles 4. Instructions michigan 2012 mi 1040x Is line 3 at least 50 miles? □ Yes. Instructions michigan 2012 mi 1040x You meet this test. Instructions michigan 2012 mi 1040x  □ No. Instructions michigan 2012 mi 1040x You do not meet this test. Instructions michigan 2012 mi 1040x You cannot deduct your moving expenses. Instructions michigan 2012 mi 1040x The distance between a job location and your home is the shortest of the more commonly traveled routes between them. Instructions michigan 2012 mi 1040x The distance test considers only the location of your former home. Instructions michigan 2012 mi 1040x It does not take into account the location of your new home. Instructions michigan 2012 mi 1040x See Figure A, earlier. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x You moved to a new home less than 50 miles from your former home because you changed main job locations. Instructions michigan 2012 mi 1040x Your old main job location was 3 miles from your former home. Instructions michigan 2012 mi 1040x Your new main job location is 60 miles from that home. Instructions michigan 2012 mi 1040x Because your new main job location is 57 miles farther from your former home than the distance from your former home to your old main job location, you meet the distance test. Instructions michigan 2012 mi 1040x First job or return to full-time work. Instructions michigan 2012 mi 1040x   If you go to work full time for the first time, your place of work must be at least 50 miles from your former home to meet the distance test. Instructions michigan 2012 mi 1040x   If you go back to full-time work after a substantial period of part-time work or unemployment, your place of work also must be at least 50 miles from your former home. Instructions michigan 2012 mi 1040x Armed Forces. Instructions michigan 2012 mi 1040x   If you are in the Armed Forces and you moved because of a permanent change of station, you do not have to meet the distance test. Instructions michigan 2012 mi 1040x See Members of the Armed Forces, later. Instructions michigan 2012 mi 1040x Main job location. Instructions michigan 2012 mi 1040x   Your main job location is usually the place where you spend most of your working time. Instructions michigan 2012 mi 1040x This could be your office, plant, store, shop, or other location. Instructions michigan 2012 mi 1040x If there is no one place where you spend most of your working time, your main job location is the place where your work is centered, such as where you report for work or are otherwise required to “base” your work. Instructions michigan 2012 mi 1040x Union members. Instructions michigan 2012 mi 1040x   If you work for several employers on a short-term basis and you get work under a union hall system (such as a construction or building trades worker), your main job location is the union hall. Instructions michigan 2012 mi 1040x More than one job. Instructions michigan 2012 mi 1040x   If you have more than one job at any time, your main job location depends on the facts in each case. Instructions michigan 2012 mi 1040x The more important factors to be considered are: The total time you spend at each place, The amount of work you do at each place, and How much money you earn at each place. Instructions michigan 2012 mi 1040x    Table 1. Instructions michigan 2012 mi 1040x Satisfying the Time Test for Employees and Self-Employed Persons IF you are. Instructions michigan 2012 mi 1040x . Instructions michigan 2012 mi 1040x . Instructions michigan 2012 mi 1040x THEN you satisfy the time test by meeting the. Instructions michigan 2012 mi 1040x . Instructions michigan 2012 mi 1040x . Instructions michigan 2012 mi 1040x an employee 39-week test for employees. Instructions michigan 2012 mi 1040x self-employed 78-week test for self-employed persons. Instructions michigan 2012 mi 1040x both self-employed and an employee at the same time 78-week test for a self-employed person or the 39-week  test for an employee. Instructions michigan 2012 mi 1040x Your principal place of work  determines which test applies. Instructions michigan 2012 mi 1040x both self-employed and an employee, but unable to satisfy the 39-week test for employees 78-week test for self-employed persons. Instructions michigan 2012 mi 1040x Time Test To deduct your moving expenses, you also must meet one of the following two time tests. Instructions michigan 2012 mi 1040x The time test for employees. Instructions michigan 2012 mi 1040x The time test for self-employed persons. Instructions michigan 2012 mi 1040x Both of these tests are explained below. Instructions michigan 2012 mi 1040x See Table 1, below, for a summary of these tests. Instructions michigan 2012 mi 1040x You can deduct your moving expenses before you meet either of the time tests. Instructions michigan 2012 mi 1040x See Time Test Not Yet Met, later. Instructions michigan 2012 mi 1040x Time Test for Employees If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location (39-week test). Instructions michigan 2012 mi 1040x Full-time employment depends on what is usual for your type of work in your area. Instructions michigan 2012 mi 1040x For purposes of this test, the following four rules apply. Instructions michigan 2012 mi 1040x You count only your full-time work as an employee, not any work you do as a self-employed person. Instructions michigan 2012 mi 1040x You do not have to work for the same employer for all 39 weeks. Instructions michigan 2012 mi 1040x You do not have to work 39 weeks in a row. Instructions michigan 2012 mi 1040x You must work full time within the same general commuting area for all 39 weeks. Instructions michigan 2012 mi 1040x Temporary absence from work. Instructions michigan 2012 mi 1040x   You are considered to have worked full time during any week you are temporarily absent from work because of illness, strikes, lockouts, layoffs, natural disasters, or similar causes. Instructions michigan 2012 mi 1040x You are also considered to have worked full time during any week you are absent from work for leave or vacation provided for in your work contract or agreement. Instructions michigan 2012 mi 1040x Seasonal work. Instructions michigan 2012 mi 1040x   If your work is seasonal, you are considered to be working full time during the off-season only if your work contract or agreement covers an off-season period of less than 6 months. Instructions michigan 2012 mi 1040x For example, a school teacher on a 12-month contract who teaches on a full-time basis for more than 6 months is considered to have worked full time for the entire 12 months. Instructions michigan 2012 mi 1040x    Figure B. Instructions michigan 2012 mi 1040x Can You Deduct Expenses for a Non-Military Move Within the United States? Please click here for the text description of the image. Instructions michigan 2012 mi 1040x Figure B Time Test for Self-Employed Persons If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you arrive in the general area of your new job location (78-week test). Instructions michigan 2012 mi 1040x For purposes of the time test for self-employed persons, the following three rules apply. Instructions michigan 2012 mi 1040x You count any full-time work you do either as an employee or as a self-employed person. Instructions michigan 2012 mi 1040x You do not have to work for the same employer or be self-employed in the same trade or business for the 78 weeks. Instructions michigan 2012 mi 1040x You must work within the same general commuting area for all 78 weeks. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x You are a self-employed accountant who moves from Atlanta to New York City, and begin to work there on December 1, 2013. Instructions michigan 2012 mi 1040x You pay moving expenses in 2013 and 2014 in connection with this move. Instructions michigan 2012 mi 1040x On April 15, 2014, when you file your income tax return for the year 2013, you have been performing services as a self-employed individual on a full-time basis in New York City for approximately 20 weeks. Instructions michigan 2012 mi 1040x Although you have not satisfied the 78-week employment condition at this time, you can deduct your 2013 moving expenses on your 2013 income tax return as there is still sufficient time remaining before December 1, 2015, to satisfy such condition. Instructions michigan 2012 mi 1040x You can deduct any moving expenses you pay in 2014 on your 2014 income tax return even if you have not met the 78-week test. Instructions michigan 2012 mi 1040x You have until December 1, 2015, to satisfy this requirement. Instructions michigan 2012 mi 1040x Self-employment. Instructions michigan 2012 mi 1040x   You are self-employed if you work as the sole owner of an unincorporated business or as a partner in a partnership carrying on a business. Instructions michigan 2012 mi 1040x You are not considered self-employed if you are semi-retired, are a part-time student, or work only a few hours each week. Instructions michigan 2012 mi 1040x Full-time work. Instructions michigan 2012 mi 1040x   You can count only those weeks during which you work full time as a week of work. Instructions michigan 2012 mi 1040x Whether you work full time during any week depends on what is usual for your type of work in your area. Instructions michigan 2012 mi 1040x For example, you are a self-employed dentist and maintain office hours 4 days a week. Instructions michigan 2012 mi 1040x You are considered to perform services full time if maintaining office hours 4 days a week is not unusual for other self-employed dentists in your area. Instructions michigan 2012 mi 1040x Temporary absence from work. Instructions michigan 2012 mi 1040x   You are considered to be self-employed on a full-time basis during any week you are temporarily absent from work because of illness, strikes, natural disasters, or similar causes. Instructions michigan 2012 mi 1040x Seasonal trade or business. Instructions michigan 2012 mi 1040x   If your trade or business is seasonal, the off-season weeks when no work is required or available may be counted as weeks during which you worked full time. Instructions michigan 2012 mi 1040x The off-season must be less than 6 months and you must work full time before and after the off-season. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x You own and operate a motel at a beach resort. Instructions michigan 2012 mi 1040x The motel is closed for 5 months during the off-season. Instructions michigan 2012 mi 1040x You work full time as the operator of the motel before and after the off-season. Instructions michigan 2012 mi 1040x You are considered self-employed on a full-time basis during the weeks of the off-season. Instructions michigan 2012 mi 1040x   If you were both an employee and self-employed, see Table 1 earlier, for the requirements. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x Justin quit his job and moved from the east coast to the west coast to begin a full-time job as a cabinet-maker for C and L Cabinet Shop. Instructions michigan 2012 mi 1040x He generally worked at the shop about 40 hours each week. Instructions michigan 2012 mi 1040x Shortly after the move, Justin also began operating a cabinet-installation business from his home for several hours each afternoon and all day on weekends. Instructions michigan 2012 mi 1040x Because Justin's principal place of business is the cabinet shop, he can satisfy the time test by meeting the 39-week test. Instructions michigan 2012 mi 1040x    If Justin is unable to satisfy the requirements of the 39-week test during the 12-month period immediately following his arrival in the general location of his new principal place of work, he can satisfy the 78-week test. Instructions michigan 2012 mi 1040x Joint Return If you are married, file a joint return, and both you and your spouse work full-time, either of you can satisfy the full-time work test. Instructions michigan 2012 mi 1040x However, you cannot add the weeks your spouse worked to the weeks you worked to satisfy that test. Instructions michigan 2012 mi 1040x Time Test Not Yet Met You can deduct your moving expenses on your 2013 tax return even though you have not met the time test by the date your 2013 return is due. Instructions michigan 2012 mi 1040x You can do this if you expect to meet the 39-week test in 2014 or the 78-week test in 2014 or 2015. Instructions michigan 2012 mi 1040x If you do not deduct your moving expenses on your 2013 return, and you later meet the time test, you can file an amended return for 2013 to take the deduction. Instructions michigan 2012 mi 1040x See When To Deduct Expenses later, for more details. Instructions michigan 2012 mi 1040x Failure to meet the time test. Instructions michigan 2012 mi 1040x    If you deduct moving expenses but do not meet the time test in 2014 or 2015, you must either: Report your moving expense deduction as other income on your Form 1040 for the year you cannot meet the test, or Use Form 1040X to amend your 2013 return, figuring your tax without the moving expense deduction. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x You arrive in the general area of your new job location, as an employee, on September 15, 2013. Instructions michigan 2012 mi 1040x You deduct your moving expenses on your 2013 return, the year of the move, even though you have not yet met the time test by the date your return is due. Instructions michigan 2012 mi 1040x If you do not meet the 39-week test during the 12-month period following your arrival in the general area of your new job location, you must either: Report your moving expense deduction as other income on your Form 1040 for 2014, or Use Form 1040X to amend your 2013 return, figuring your tax without the moving expense deduction. Instructions michigan 2012 mi 1040x Exceptions to the Time Test You do not have to meet the time test if one of the following applies. Instructions michigan 2012 mi 1040x You are in the Armed Forces and you moved because of a permanent change of station. Instructions michigan 2012 mi 1040x See Members of the Armed Forces , later. Instructions michigan 2012 mi 1040x Your main job location was outside the United States and you moved to the United States because you retired. Instructions michigan 2012 mi 1040x See Retirees or Survivors Who Move to the United States, later. Instructions michigan 2012 mi 1040x You are the survivor of a person whose main job location at the time of death was outside the United States. Instructions michigan 2012 mi 1040x See Retirees or Survivors Who Move to the United States, later. Instructions michigan 2012 mi 1040x Your job at the new location ends because of death or disability. Instructions michigan 2012 mi 1040x You are transferred for your employer's benefit or laid off for a reason other than willful misconduct. Instructions michigan 2012 mi 1040x For this exception, you must have obtained full-time employment and you must have expected to meet the test at the time you started the job. Instructions michigan 2012 mi 1040x Retirees or Survivors Who Move to the United States If you are a retiree who was working abroad or a survivor of a decedent who was working abroad and you move to the United States or one of its possessions, you do not have to meet the time test, discussed earlier. Instructions michigan 2012 mi 1040x However, you must meet the requirements discussed below under Retirees who were working abroad or Survivors of decedents who were working abroad. Instructions michigan 2012 mi 1040x If you are living in the United States, retire, and then move and remain retired, you cannot claim a moving expense deduction for that move. Instructions michigan 2012 mi 1040x United States defined. Instructions michigan 2012 mi 1040x   For this section of this publication, the term “United States” includes the possessions of the United States. Instructions michigan 2012 mi 1040x Retirees who were working abroad. Instructions michigan 2012 mi 1040x   You can deduct moving expenses for a move to a new home in the United States when you permanently retire. Instructions michigan 2012 mi 1040x However, both your former main job location and your former home must have been outside the United States. Instructions michigan 2012 mi 1040x Permanently retired. Instructions michigan 2012 mi 1040x   You are considered permanently retired when you cease gainful full-time employment or self-employment. Instructions michigan 2012 mi 1040x If, at the time you retire, you intend your retirement to be permanent, you will be considered retired even though you later return to work. Instructions michigan 2012 mi 1040x Your intention to retire permanently may be determined by: Your age and health, The customary retirement age for people who do similar work, Whether you receive retirement payments from a pension or retirement fund, and The length of time before you return to full-time work. Instructions michigan 2012 mi 1040x Decedents. Instructions michigan 2012 mi 1040x   Qualified deductible moving expenses are allowed on a final return (Form 1040 or 1040NR) when a taxpayer has moved and dies within the same calendar year. Instructions michigan 2012 mi 1040x The personal representative filing on behalf of that taxpayer should complete and attach Form 3903 to the final return. Instructions michigan 2012 mi 1040x   A personal representative can be an executor, administrator, or anyone who is in charge of the deceased person's property. Instructions michigan 2012 mi 1040x For more information, see Publication 559, Survivors, Executors, and Administrators. Instructions michigan 2012 mi 1040x Survivors of decedents who were working abroad. Instructions michigan 2012 mi 1040x   If you are the spouse or the dependent of a person whose main job location at the time of death was outside the United States, you can deduct moving expenses if the following five requirements are met. Instructions michigan 2012 mi 1040x The move is to a home in the United States. Instructions michigan 2012 mi 1040x The move begins within 6 months after the decedent's death. Instructions michigan 2012 mi 1040x (When a move begins is described below. Instructions michigan 2012 mi 1040x ) The move is from the decedent's former home. Instructions michigan 2012 mi 1040x The decedent's former home was outside the United States. Instructions michigan 2012 mi 1040x The decedent's former home was also your home. Instructions michigan 2012 mi 1040x When a move begins. Instructions michigan 2012 mi 1040x   A move begins when one of the following events occurs. Instructions michigan 2012 mi 1040x You contract for your household goods and personal effects to be moved to your home in the United States, but only if the move is completed within a reasonable time. Instructions michigan 2012 mi 1040x Your household goods and personal effects are packed and on the way to your home in the United States. Instructions michigan 2012 mi 1040x You leave your former home to travel to your new home in the United States. Instructions michigan 2012 mi 1040x Deductible Moving Expenses If you meet the requirements discussed earlier under Who Can Deduct Moving Expenses, you can deduct the reasonable expenses of: Moving your household goods and personal effects (including in-transit or foreign-move storage expenses), and Traveling (including lodging but not meals) to your new home. Instructions michigan 2012 mi 1040x You cannot deduct any expenses for meals. Instructions michigan 2012 mi 1040x Reasonable expenses. Instructions michigan 2012 mi 1040x   You can deduct only those expenses that are reasonable for the circumstances of your move. Instructions michigan 2012 mi 1040x For example, the cost of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. Instructions michigan 2012 mi 1040x If during your trip to your new home, you stop over, or make side trips for sightseeing, the additional expenses for your stopover or side trips are not deductible as moving expenses. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x Beth's employer transferred her from Boston, Massachusetts, to Buffalo, New York. Instructions michigan 2012 mi 1040x On her way to Buffalo, Beth drove into Canada to visit the Toronto Zoo. Instructions michigan 2012 mi 1040x Since Beth's excursion into Canada was away from the usual Boston-Buffalo route, the expenses paid or incurred for the excursion are not deductible. Instructions michigan 2012 mi 1040x Beth can only deduct what it would have cost to drive directly from Boston to Buffalo. Instructions michigan 2012 mi 1040x Likewise, Beth cannot deduct any expenses, such as the cost of a hotel room, caused by the delay for sightseeing. Instructions michigan 2012 mi 1040x Travel by car. Instructions michigan 2012 mi 1040x   If you use your car to take yourself, members of your household, or your personal effects to your new home, you can figure your expenses by deducting either: Your actual expenses, such as the amount you pay for gas and oil for your car, if you keep an accurate record of each expense, or The standard mileage rate of 24 cents per mile. Instructions michigan 2012 mi 1040x Whether you use actual expenses or the standard mileage rate to figure your expenses, you can deduct the parking fees and tolls you pay to move. Instructions michigan 2012 mi 1040x You cannot deduct any part of general repairs, general maintenance, insurance, or depreciation for your car. Instructions michigan 2012 mi 1040x Member of your household. Instructions michigan 2012 mi 1040x   You can deduct moving expenses you pay for yourself and members of your household. Instructions michigan 2012 mi 1040x A member of your household is anyone who has both your former and new home as his or her home. Instructions michigan 2012 mi 1040x It does not include a tenant or employee, unless that person is your dependent. Instructions michigan 2012 mi 1040x Moves to Locations in the United States If you meet the requirements under Who Can Deduct Moving Expenses, earlier, you can deduct expenses for a move to the area of a new main job location within the United States or its possessions. Instructions michigan 2012 mi 1040x Your move may be from one U. Instructions michigan 2012 mi 1040x S. Instructions michigan 2012 mi 1040x location to another or from a foreign country to the United States. Instructions michigan 2012 mi 1040x Household goods and personal effects. Instructions michigan 2012 mi 1040x   You can deduct the cost of packing, crating, and transporting your household goods and personal effects and those of the members of your household from your former home to your new home. Instructions michigan 2012 mi 1040x For purposes of moving expenses, the term “personal effects” includes, but is not limited to, movable personal property that the taxpayer owns and frequently uses. Instructions michigan 2012 mi 1040x   If you use your own car to move your things, see Travel by car, earlier. Instructions michigan 2012 mi 1040x   You can deduct any costs of connecting or disconnecting utilities required because you are moving your household goods, appliances, or personal effects. Instructions michigan 2012 mi 1040x   You can deduct the cost of shipping your car and your household pets to your new home. Instructions michigan 2012 mi 1040x   You can deduct the cost of moving your household goods and personal effects from a place other than your former home. Instructions michigan 2012 mi 1040x Your deduction is limited to the amount it would have cost to move them from your former home. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x Paul Brown has been living and working in North Carolina for the last 4 years. Instructions michigan 2012 mi 1040x Because he has been renting a small apartment, he stored some furniture at his parents' home in Georgia. Instructions michigan 2012 mi 1040x Paul got a job in Washington, DC. Instructions michigan 2012 mi 1040x It cost him $900 to move the furniture from his North Carolina apartment to Washington and $3,000 to move the stored furniture from Georgia to Washington. Instructions michigan 2012 mi 1040x It would have cost $1,800 to ship the stored furniture from North Carolina to Washington. Instructions michigan 2012 mi 1040x He can deduct only $1,800 of the $3,000 he paid. Instructions michigan 2012 mi 1040x The amount he can deduct for moving his furniture is $2,700 ($900 + $1,800). Instructions michigan 2012 mi 1040x You cannot deduct the cost of moving furniture you buy on the way to your new home. Instructions michigan 2012 mi 1040x   Storage expenses. Instructions michigan 2012 mi 1040x   You can include the cost of storing and insuring household goods and personal effects within any period of 30 consecutive days after the day your things are moved from your former home and before they are delivered to your new home. Instructions michigan 2012 mi 1040x Travel expenses. Instructions michigan 2012 mi 1040x   You can deduct the cost of transportation and lodging for yourself and members of your household while traveling from your former home to your new home. Instructions michigan 2012 mi 1040x This includes expenses for the day you arrive. Instructions michigan 2012 mi 1040x    The day of arrival is the day you secure lodging at the new place of residence, even if the lodging is on a temporary basis. Instructions michigan 2012 mi 1040x   You can include any lodging expenses you had in the area of your former home within one day after you could no longer live in your former home because your furniture had been moved. Instructions michigan 2012 mi 1040x   The members of your household do not have to travel together or at the same time. Instructions michigan 2012 mi 1040x However, you can only deduct expenses for one trip per person. Instructions michigan 2012 mi 1040x If you use your own car, see Travel by car, earlier. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x   In February 2013, Josh and Robyn Black moved from Minneapolis to Washington, DC, where Josh was starting a new job. Instructions michigan 2012 mi 1040x Josh drove the family car to Washington, DC, a trip of 1,100 miles. Instructions michigan 2012 mi 1040x His expenses were $264. Instructions michigan 2012 mi 1040x 00 for mileage (1,100 miles x 24 cents per mile) plus $40 for tolls and $150 for lodging, for a total of $454. Instructions michigan 2012 mi 1040x 00. Instructions michigan 2012 mi 1040x One week later, Robyn flew from Minneapolis to Washington, DC. Instructions michigan 2012 mi 1040x Her only expense was her $400 plane ticket. Instructions michigan 2012 mi 1040x The Blacks' deduction is $854. Instructions michigan 2012 mi 1040x 00 (Josh's $454. Instructions michigan 2012 mi 1040x 00 + Robyn's $400). Instructions michigan 2012 mi 1040x Moves to Locations Outside the United States To deduct expenses for a move outside the United States, you must move to the area of a new place of work outside the United States and its possessions. Instructions michigan 2012 mi 1040x You must meet the requirements under Who Can Deduct Moving Expenses , earlier. Instructions michigan 2012 mi 1040x Deductible expenses. Instructions michigan 2012 mi 1040x   If your move is to a location outside the United States and its possessions, you can deduct the following expenses. Instructions michigan 2012 mi 1040x The cost of moving household goods and personal effects from your former home to your new home. Instructions michigan 2012 mi 1040x The cost of traveling (including lodging) from your former home to your new home. Instructions michigan 2012 mi 1040x The cost of moving household goods and personal effects to and from storage. Instructions michigan 2012 mi 1040x The cost of storing household goods and personal effects while you are at the new job location. Instructions michigan 2012 mi 1040x The first two items were explained earlier under Moves to Locations in the United States . Instructions michigan 2012 mi 1040x The last two items are discussed, later. Instructions michigan 2012 mi 1040x Moving goods and effects to and from storage. Instructions michigan 2012 mi 1040x   You can deduct the reasonable expenses of moving your personal effects to and from storage. Instructions michigan 2012 mi 1040x Storage expenses. Instructions michigan 2012 mi 1040x   You can deduct the reasonable expenses of storing your household goods and personal effects for all or part of the time the new job location remains your main job location. Instructions michigan 2012 mi 1040x Moving expenses allocable to excluded foreign income. Instructions michigan 2012 mi 1040x   If you live and work outside the United States, you may be able to exclude from income part or all of the income you earn in the foreign country. Instructions michigan 2012 mi 1040x You may also be able to claim a foreign housing exclusion or deduction. Instructions michigan 2012 mi 1040x If you claim the foreign earned income or foreign housing exclusion, you cannot deduct the part of your moving expenses that relates to the excluded income. Instructions michigan 2012 mi 1040x    Publication 54, Tax Guide for U. Instructions michigan 2012 mi 1040x S. Instructions michigan 2012 mi 1040x Citizens and Resident Aliens Abroad, explains how to figure the part of your moving expenses that relates to excluded income. Instructions michigan 2012 mi 1040x You can get the publication from most U. Instructions michigan 2012 mi 1040x S. Instructions michigan 2012 mi 1040x embassies and consulates, or see How To Get Tax Help at the end of this publication. Instructions michigan 2012 mi 1040x Nondeductible Expenses You cannot deduct the following items as moving expenses. Instructions michigan 2012 mi 1040x Any part of the purchase price of your new home. Instructions michigan 2012 mi 1040x Car tags. Instructions michigan 2012 mi 1040x Driver's license. Instructions michigan 2012 mi 1040x Expenses of buying or selling a home (including closing costs, mortgage fees, and points). Instructions michigan 2012 mi 1040x Expenses of entering into or breaking a lease. Instructions michigan 2012 mi 1040x Home improvements to help sell your home. Instructions michigan 2012 mi 1040x Loss on the sale of your home. Instructions michigan 2012 mi 1040x Losses from disposing of memberships in clubs. Instructions michigan 2012 mi 1040x Mortgage penalties. Instructions michigan 2012 mi 1040x Pre-move househunting expenses. Instructions michigan 2012 mi 1040x Real estate taxes. Instructions michigan 2012 mi 1040x Refitting of carpet and draperies. Instructions michigan 2012 mi 1040x Return trips to your former residence. Instructions michigan 2012 mi 1040x Security deposits (including any given up due to the move). Instructions michigan 2012 mi 1040x Storage charges except those incurred in transit and for foreign moves. Instructions michigan 2012 mi 1040x No double deduction. Instructions michigan 2012 mi 1040x   You cannot take a moving expense deduction and a business expense deduction for the same expenses. Instructions michigan 2012 mi 1040x You must decide if your expenses are deductible as moving expenses or as business expenses. Instructions michigan 2012 mi 1040x For example, expenses you have for travel, meals, and lodging while temporarily working at a place away from your regular place of work may be deductible as business expenses if you are considered away from home on business. Instructions michigan 2012 mi 1040x In most cases, your work at a single location is considered temporary if it is realistically expected to last (and does in fact last) for one year or less. Instructions michigan 2012 mi 1040x   See Publication 463, Travel, Entertainment, Gift, and Car Expenses, for information on deducting your business expenses. Instructions michigan 2012 mi 1040x Reimbursements This section explains how to report a reimbursement (including advances and allowances) on your tax return. Instructions michigan 2012 mi 1040x It covers reimbursements for any of your moving expenses discussed in this publication. Instructions michigan 2012 mi 1040x It also explains the types of reimbursements on which your employer must withhold income, social security, and Medicare taxes. Instructions michigan 2012 mi 1040x Types of Reimbursement Plans If you receive a reimbursement for your moving expenses, how you report this amount and your expenses depends on whether the reimbursement is paid to you under an accountable plan or a nonaccountable plan. Instructions michigan 2012 mi 1040x For a quick overview of how to report your reimbursement and moving expenses, see Table 2 in the section on How and When To Report, later. Instructions michigan 2012 mi 1040x Your employer should tell you what method of reimbursement is used and what records are required. Instructions michigan 2012 mi 1040x Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. Instructions michigan 2012 mi 1040x Your expenses must have a business connection – that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Instructions michigan 2012 mi 1040x Two examples of this are the reasonable expenses of moving your possessions from your former home to your new home, and traveling from your former home to your new home. Instructions michigan 2012 mi 1040x You must adequately account to your employer for these expenses within a reasonable period of time. Instructions michigan 2012 mi 1040x You must return any excess reimbursement or allowance within a reasonable period of time. Instructions michigan 2012 mi 1040x Adequate accounting. Instructions michigan 2012 mi 1040x   You adequately account for your moving expenses by giving your employer documentation of those expenses, such as a statement of expense, an account book, a diary, or a similar record in which you entered each expense at or near the time you had it. Instructions michigan 2012 mi 1040x Documentation includes receipts, canceled checks, and bills. Instructions michigan 2012 mi 1040x Reasonable period of time. Instructions michigan 2012 mi 1040x   What constitutes a “reasonable period of time” depends on the facts and circumstances of your situation. Instructions michigan 2012 mi 1040x However, regardless of the facts and circumstances, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Instructions michigan 2012 mi 1040x You receive an advance within 30 days of the time you have an expense. Instructions michigan 2012 mi 1040x You adequately account for your expenses within 60 days after they were paid or incurred. Instructions michigan 2012 mi 1040x You return any excess reimbursement within 120 days after the expense was paid or incurred. Instructions michigan 2012 mi 1040x You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. Instructions michigan 2012 mi 1040x Excess reimbursement. Instructions michigan 2012 mi 1040x   This includes any amount you are paid (including advances and allowances) that is more than the moving expenses that you adequately accounted for to your employer within a reasonable period of time. Instructions michigan 2012 mi 1040x Returning excess reimbursements. Instructions michigan 2012 mi 1040x   You must be required to return any excess reimbursement for your moving expenses to the person paying the reimbursement. Instructions michigan 2012 mi 1040x Excess reimbursement includes any amount for which you did not adequately account within a reasonable period of time. Instructions michigan 2012 mi 1040x For example, if you received an advance and you did not spend all the money on deductible moving expenses, or you do not have proof of all your expenses, you have an excess reimbursement. Instructions michigan 2012 mi 1040x You meet accountable plan rules. Instructions michigan 2012 mi 1040x   If for all reimbursements you meet the three rules for an accountable plan (listed earlier), your employer should not include any reimbursements of expenses in your income in box 1 of your Form W-2, Wage and Tax Statement. Instructions michigan 2012 mi 1040x Instead, your employer should include the reimbursements in box 12 of your Form W-2. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x You lived in Boston and accepted a job in Atlanta. Instructions michigan 2012 mi 1040x Under an accountable plan, your employer reimbursed you for your actual traveling expenses from Boston to Atlanta and the cost of moving your furniture to Atlanta. Instructions michigan 2012 mi 1040x Your employer will include the reimbursement on your Form W-2, box 12, with Code P. Instructions michigan 2012 mi 1040x If your moving expenses are more than your reimbursement, you may be able to deduct your additional expenses (see How and When To Report, later). Instructions michigan 2012 mi 1040x You do not meet accountable plan rules. Instructions michigan 2012 mi 1040x   You may be reimbursed by your employer, but you may not meet all three rules for part of your expenses. Instructions michigan 2012 mi 1040x   If your deductible expenses are reimbursed under an otherwise accountable plan but you do not return, within a reasonable period, any reimbursement of expenses for which you did not adequately account, then only the amount for which you did adequately account is considered as paid under an accountable plan. Instructions michigan 2012 mi 1040x The remaining expenses are treated as having been reimbursed under a nonaccountable plan (discussed below). Instructions michigan 2012 mi 1040x Reimbursement of nondeductible expenses. Instructions michigan 2012 mi 1040x   You may be reimbursed by your employer for moving expenses, some of which are deductible expenses and some of which are not deductible. Instructions michigan 2012 mi 1040x The reimbursements you receive for the nondeductible expenses and any allowances for miscellaneous or unspecified expenses are treated as paid under a nonaccountable plan (see below) and are included in your income. Instructions michigan 2012 mi 1040x If you are reimbursed by your employer for the taxes you must pay (including social security and Medicare taxes) because you have received taxable moving expense reimbursements, you must pay tax on this reimbursement as well, and it is treated as paid under a nonaccountable plan. Instructions michigan 2012 mi 1040x Nonaccountable Plans A nonaccountable plan is a reimbursement arrangement that does not meet the three rules listed earlier under Accountable Plans. Instructions michigan 2012 mi 1040x In addition, the following payments will be treated as paid under a nonaccountable plan. Instructions michigan 2012 mi 1040x Excess reimbursements you fail to return to your employer. Instructions michigan 2012 mi 1040x Reimbursements of nondeductible expenses. Instructions michigan 2012 mi 1040x See Reimbursement of nondeductible expenses, earlier. Instructions michigan 2012 mi 1040x If an arrangement pays for your moving expenses by reducing your wages, salary, or other pay, the amount of the reduction will be treated as a payment made under a nonaccountable plan. Instructions michigan 2012 mi 1040x This is because you are entitled to receive the full amount of your pay regardless of whether you had any moving expenses. Instructions michigan 2012 mi 1040x If you are not sure if the moving expense reimbursement arrangement is an accountable or nonaccountable plan, ask your employer. Instructions michigan 2012 mi 1040x Your employer will add the amount of any reimbursement paid to you under a nonaccountable plan to your wages, salary, or other pay. Instructions michigan 2012 mi 1040x Your employer will report the total in box 1 of your Form W-2. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x To get you to work in another city, your new employer reimburses you under an accountable plan for the $7,500 loss on the sale of your home. Instructions michigan 2012 mi 1040x Because this is a reimbursement of a nondeductible expense, it is treated as paid under a nonaccountable plan and must be included as income in box 1 of your Form W-2. Instructions michigan 2012 mi 1040x Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Do not include in income any moving expense payment you received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Instructions michigan 2012 mi 1040x These payments are made to persons displaced from their homes, businesses, or farms by federal projects. Instructions michigan 2012 mi 1040x Tax Withholding and Estimated Tax Your employer must withhold income, social security, and Medicare taxes from reimbursements and allowances paid to you that are included in your income. Instructions michigan 2012 mi 1040x See Reimbursements included in income, later. Instructions michigan 2012 mi 1040x Reimbursements excluded from income. Instructions michigan 2012 mi 1040x   Your employer should not include in your wages reimbursements paid under an accountable plan (explained earlier) for moving expenses that you: Could deduct if you had paid or incurred them, and Did not deduct in an earlier year. Instructions michigan 2012 mi 1040x These reimbursements are fringe benefits excludable from your income as qualified moving expense reimbursements. Instructions michigan 2012 mi 1040x Your employer should report these reimbursements on your Form W-2, box 12, with Code P. Instructions michigan 2012 mi 1040x    You cannot claim a moving expense deduction for expenses covered by reimbursements excluded from income (see Accountable Plans under Types of Reimbursement Plans, earlier). Instructions michigan 2012 mi 1040x Expenses deducted in earlier year. Instructions michigan 2012 mi 1040x   If you receive a reimbursement this year for moving expenses deducted in an earlier year, and the reimbursement is not included as wages in box 1 of your Form W-2, you must include the reimbursement in income on Form 1040, line 21. Instructions michigan 2012 mi 1040x Your employer should show the amount of your reimbursement in box 12 of your Form W-2. Instructions michigan 2012 mi 1040x Reimbursements included in income. Instructions michigan 2012 mi 1040x   Your employer must include in your income any reimbursements made (or treated as made) under a nonaccountable plan, even though they are for deductible moving expenses. Instructions michigan 2012 mi 1040x See Nonaccountable Plans under Types of Reimbursement Plans, earlier. Instructions michigan 2012 mi 1040x Your employer also must include in your gross income as wages any reimbursements of, or payments for, nondeductible moving expenses. Instructions michigan 2012 mi 1040x This includes amounts your employer reimbursed you under an accountable plan (explained earlier) for meals, househunting trips, and real estate expenses. Instructions michigan 2012 mi 1040x It also includes reimbursements that exceed your deductible expenses and that you do not return to your employer. Instructions michigan 2012 mi 1040x Reimbursement for deductible and nondeductible expenses. Instructions michigan 2012 mi 1040x    If your employer reimburses you for both deductible and nondeductible moving expenses, your employer must determine the amount of the reimbursement that is not taxable and not subject to withholding. Instructions michigan 2012 mi 1040x Your employer must treat any remaining amount as taxable wages and withhold income, social security, and Medicare taxes. Instructions michigan 2012 mi 1040x Amount of income tax withheld. Instructions michigan 2012 mi 1040x   If the reimbursements or allowances you receive are taxable, the amount of income tax your employer will withhold depends on several factors. Instructions michigan 2012 mi 1040x It depends in part on whether income tax is withheld from your regular wages, on whether the reimbursements and allowances are added to your regular wages, and on any information you have given to your employer on Form W-4, Employee's Withholding Allowance Certificate. Instructions michigan 2012 mi 1040x   Your employer can treat your reimbursements as supplemental wages and not include the reimbursements and allowances in your regular wages. Instructions michigan 2012 mi 1040x The employer can withhold income tax on supplemental wages at a flat rate which may be different from your regular tax rate. Instructions michigan 2012 mi 1040x Estimated tax. Instructions michigan 2012 mi 1040x    If you must make estimated tax payments, you need to take into account any taxable reimbursements and deductible moving expenses in figuring your estimated tax. Instructions michigan 2012 mi 1040x For details about estimated taxes, see Publication 505, Tax Withholding and Estimated Tax. Instructions michigan 2012 mi 1040x How and When To Report This section explains how and when to report your moving expenses and any reimbursements or allowances you received for your move. Instructions michigan 2012 mi 1040x For a quick overview, see Table 2, later. Instructions michigan 2012 mi 1040x Form 3903 Use Form 3903 to figure your moving expense deduction. Instructions michigan 2012 mi 1040x Use a separate Form 3903 for each move for which you are deducting expenses. Instructions michigan 2012 mi 1040x Do not file Form 3903 if all of the following apply. Instructions michigan 2012 mi 1040x You moved to a location outside the United States in an earlier year. Instructions michigan 2012 mi 1040x You are claiming only storage fees while you were away from the United States. Instructions michigan 2012 mi 1040x Any amount your employer paid for the storage fees is included as wages in box 1 of your Form W-2. Instructions michigan 2012 mi 1040x Instead, enter the storage fees (after the reduction for the part that is allocable to excluded income) on Form 1040, line 26, and enter “Storage” on the dotted line next to the amount. Instructions michigan 2012 mi 1040x If you meet the special rules for members of the Armed Forces, see How to complete Form 3903 for members of the Armed Forces under Members of the Armed Forces, later. Instructions michigan 2012 mi 1040x Completing Form 3903. Instructions michigan 2012 mi 1040x   Complete Worksheet 1, earlier, or the Distance Test Worksheet in the instructions for Form 3903 to see whether you meet the distance test. Instructions michigan 2012 mi 1040x If so, complete lines 1 through 3 of the form using your actual expenses (except, if you use your own car, you can figure expenses based on the standard mileage rate, instead of actual amounts for gas and oil). Instructions michigan 2012 mi 1040x Enter on line 4 the total amount of your moving expense reimbursement that was excluded from your wages. Instructions michigan 2012 mi 1040x This excluded amount should be identified on Form W-2, box 12, with code P. Instructions michigan 2012 mi 1040x Expenses greater than reimbursement. Instructions michigan 2012 mi 1040x   If line 3 is more than line 4, subtract line 4 from line 3 and enter the result on line 5 and on Form 1040, line 26. Instructions michigan 2012 mi 1040x This is your moving expense deduction. Instructions michigan 2012 mi 1040x Expenses equal to or less than reimbursement. Instructions michigan 2012 mi 1040x    If line 3 is equal to or less than line 4, you have no moving expense deduction. Instructions michigan 2012 mi 1040x Subtract line 3 from line 4 and, if the result is more than zero, include it as income on Form 1040, line 7. Instructions michigan 2012 mi 1040x Table 2. Instructions michigan 2012 mi 1040x Reporting Your Moving Expenses and Reimbursements IF your Form W-2 shows. Instructions michigan 2012 mi 1040x . Instructions michigan 2012 mi 1040x . Instructions michigan 2012 mi 1040x AND you have. Instructions michigan 2012 mi 1040x . Instructions michigan 2012 mi 1040x . Instructions michigan 2012 mi 1040x THEN. Instructions michigan 2012 mi 1040x . Instructions michigan 2012 mi 1040x . Instructions michigan 2012 mi 1040x your reimbursement reported only  in box 12 with code P moving expenses greater than the  amount in box 12 file Form 3903 showing all allowable  expenses* and reimbursements. Instructions michigan 2012 mi 1040x your reimbursement reported only  in box 12 with code P moving expenses equal to the amount  in box 12 do not file Form 3903. Instructions michigan 2012 mi 1040x your reimbursement divided  between box 12 and box 1 moving expenses greater than the  amount in box 12 file Form 3903 showing all allowable  expenses,* but only the  reimbursements reported in box 12 of  Form W-2. Instructions michigan 2012 mi 1040x your entire reimbursement reported  as wages in box 1 moving expenses file Form 3903 showing all allowable  expenses,* but do not show any  reimbursements. Instructions michigan 2012 mi 1040x no reimbursement moving expenses file Form 3903 showing all allowable  expenses. Instructions michigan 2012 mi 1040x * * See Deductible Moving Expenses, earlier, for allowable expenses. Instructions michigan 2012 mi 1040x    Where to deduct. Instructions michigan 2012 mi 1040x   Deduct your moving expenses on Form 1040, line 26. Instructions michigan 2012 mi 1040x The amount of moving expenses you can deduct is shown on Form 3903, line 5. Instructions michigan 2012 mi 1040x    You cannot deduct moving expenses on Form 1040EZ or Form 1040A. Instructions michigan 2012 mi 1040x   When To Deduct Expenses You may have a choice of when to deduct your moving expenses. Instructions michigan 2012 mi 1040x Expenses not reimbursed. Instructions michigan 2012 mi 1040x   If you were not reimbursed, deduct your moving expenses in the year you paid or incurred the expenses. Instructions michigan 2012 mi 1040x Example. Instructions michigan 2012 mi 1040x In December 2012, your employer transferred you to another city in the United States, where you still work. Instructions michigan 2012 mi 1040x You are single and were not reimbursed for your moving expenses. Instructions michigan 2012 mi 1040x In 2012, you paid for moving your furniture and deducted these expenses on your 2012 tax return. Instructions michigan 2012 mi 1040x In January 2013, you paid for travel to the new city. Instructions michigan 2012 mi 1040x You can deduct these additional expenses on your 2013 tax return. Instructions michigan 2012 mi 1040x Expenses reimbursed. Instructions michigan 2012 mi 1040x   If you are reimbursed for your expenses and you use the cash method of accounting, you can deduct your expenses either in the year you paid them or in the year you received the reimbursement. Instructions michigan 2012 mi 1040x If you use the cash method of accounting, you can choose to deduct the expenses in the year you are reimbursed even though you paid the expenses in a different year. Instructions michigan 2012 mi 1040x See Choosing when to deduct, next. Instructions michigan 2012 mi 1040x   If you deduct your expenses and you receive the reimbursement in a later year, you must include the reimbursement in your income on Form 1040, line 21. Instructions michigan 2012 mi 1040x Choosing when to deduct. Instructions michigan 2012 mi 1040x   If you use the cash method of accounting, which is used by most individuals, you can choose to deduct moving expenses in the year your employer reimburses you if: You paid the expenses in a year before the year of reimbursement, or You paid the expenses in the year immediately after the year of reimbursement but by the due date, including extensions, for filing your return for the reimbursement year. Instructions michigan 2012 mi 1040x How to make the choice. Instructions michigan 2012 mi 1040x   You choose to deduct moving expenses in the year you received reimbursement by taking the deduction on your return, or amended return, for that year. Instructions michigan 2012 mi 1040x    You cannot deduct any moving expenses for which you received a reimbursement that was not included in your income. Instructions michigan 2012 mi 1040x Illustrated Example Tom and Peggy Smith are married and have two children. Instructions michigan 2012 mi 1040x They owned a home in Detroit where Tom worked. Instructions michigan 2012 mi 1040x On February 8, 2013, Tom's employer told him that he would be transferred to San Diego as of April 10 that year. Instructions michigan 2012 mi 1040x Peggy flew to San Diego on March 1 to look for a new home. Instructions michigan 2012 mi 1040x She put a down payment of $25,000 on a house being built and returned to Detroit on March 4. Instructions michigan 2012 mi 1040x The Smiths sold their Detroit home for $1,500 less than they paid for it. Instructions michigan 2012 mi 1040x They contracted to have their personal effects moved to San Diego on April 3. Instructions michigan 2012 mi 1040x The family drove to San Diego where they found that their new home was not finished. Instructions michigan 2012 mi 1040x They stayed in a nearby motel until the house was ready on May 1. Instructions michigan 2012 mi 1040x On April 10, Tom went to work in the San Diego plant where he still works. Instructions michigan 2012 mi 1040x Their records for the move show: 1) Peggy's pre-move househunting  trip:       Travel and lodging   $ 449       Meals   75   $ 524 2) Down payment on San Diego  home 25,000 3) Real estate commission paid on  sale of Detroit home 3,500 4) Loss on sale of Detroit home (not  including real estate commission) 1,500 5) Amount paid for moving personal  effects (furniture, other household  goods, etc. Instructions michigan 2012 mi 1040x ) 8,000 6) Expenses of driving to San Diego:       Mileage (Start 14,278;  End 16,478) 2,200 miles at 24 cents a mile   $ 528       Lodging   180       Meals   320   1,028 7) Cost of temporary living  expenses in San Diego:       Motel rooms   $1,450       Meals   2,280   3,730 Total $43,282   Tom was reimbursed $10,907 under an accountable plan. Instructions michigan 2012 mi 1040x His employer gave him the following breakdown of the reimbursement that was allowed under the employer's plan. Instructions michigan 2012 mi 1040x Moving personal effects   $6,800 Travel (and lodging) to San Diego   708 Travel (and lodging) for househunting trip   449 Lodging for temporary quarters   1,450 Loss on sale of home   1,500 Total reimbursement   $10,907 The employer included this reimbursement on Tom's Form W-2 for the year. Instructions michigan 2012 mi 1040x The reimbursement of allowable expenses, $7,508 for moving household goods and travel to San Diego, was included in box 12 of Form W-2. Instructions michigan 2012 mi 1040x His employer identified this amount with code P. Instructions michigan 2012 mi 1040x The employer included the balance, $3,399 reimbursement of nonallowable expenses, in box 1 of Form W-2 with Tom's other wages. Instructions michigan 2012 mi 1040x Tom must include this amount on Form 1040, line 7. Instructions michigan 2012 mi 1040x The employer withholds taxes from the $3,399, as discussed under Reimbursement for deductible and nondeductible expenses under Tax Withholding and Estimated Tax, earlier. Instructions michigan 2012 mi 1040x Also, Tom's employer could have given him a separate Form W-2 for his moving expense reimbursement. Instructions michigan 2012 mi 1040x To figure his tax deduction for moving expenses, Tom enters the following amounts on Form 3903. Instructions michigan 2012 mi 1040x Item 5 — moving personal effects (line 1)   $8,000 Item 6 — driving to San Diego ($528 + $180)  (line 2)   708 Total tax deductible moving expenses (line 3)   $8,708 Minus: Reimbursement included in box 12  of Form W-2 (line 4)   7,508 Tax deduction for moving expenses (line 5)   $1,200   Tom's Form 3903 is shown, later. Instructions michigan 2012 mi 1040x He also enters his deduction, $1,200, on Form 1040, line 26. Instructions michigan 2012 mi 1040x Nondeductible expenses. Instructions michigan 2012 mi 1040x   Of the $43,282 expenses that Tom and Peggy incurred, the following items totaling $34,574 ($43,282 – $8,708) cannot be deducted. Instructions michigan 2012 mi 1040x Item 1 — pre-move househunting expenses of $524. Instructions michigan 2012 mi 1040x Item 2 — the $25,000 down payment on the San Diego home. Instructions michigan 2012 mi 1040x If any part of it were for payment of deductible taxes or interest on the mortgage on the house, that part would be deductible as an itemized deduction. Instructions michigan 2012 mi 1040x Item 3 — the $3,500 real estate commission paid on the sale of the Detroit home. Instructions michigan 2012 mi 1040x The commission is used to figure the gain or loss on the sale. Instructions michigan 2012 mi 1040x Item 4 — the $1,500 loss on the sale of the Detroit home. Instructions michigan 2012 mi 1040x Item 6 — the $320 expense for meals while driving to San Diego. Instructions michigan 2012 mi 1040x (However, the lodging and car expenses are deductible. Instructions michigan 2012 mi 1040x ) Item 7 — temporary living expenses of $3,730. Instructions michigan 2012 mi 1040x    This image is too large to be displayed in the current screen. Instructions michigan 2012 mi 1040x Please click the link to view the image. Instructions michigan 2012 mi 1040x 2012 Form 3903 Moving Expenses Members of the Armed Forces If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you do not have to meet the distance and time tests, discussed earlier. Instructions michigan 2012 mi 1040x You can deduct your unreimbursed moving expenses. Instructions michigan 2012 mi 1040x A permanent change of station includes: A move from your home to your first post of active duty, A move from one permanent post of duty to another, and A move from your last post of duty to your home or to a nearer point in the United States. Instructions michigan 2012 mi 1040x The move must occur within one year of ending your active duty or within the period allowed under the Joint Travel Regulations. Instructions michigan 2012 mi 1040x Spouse and dependents. Instructions michigan 2012 mi 1040x   If a member of the Armed Forces dies, is imprisoned, or deserts, a permanent change of station for the spouse or dependent includes a move to: The place of enlistment, The member's, spouse's, or dependent's home of record, or A nearer point in the United States. Instructions michigan 2012 mi 1040x   If the military moves you, your spouse, and dependents, to or from separate locations, the moves are treated as a single move to your new main job location. Instructions michigan 2012 mi 1040x Services or reimbursements provided by government. Instructions michigan 2012 mi 1040x   Do not include in income the value of moving and storage services provided by the government because of a permanent change of station. Instructions michigan 2012 mi 1040x In general, if the total reimbursements or allowances you receive from the government because of the move are more than your actual moving expenses, the government must include the excess in your wages on Form W-2. Instructions michigan 2012 mi 1040x However, the excess portion of a dislocation allowance, a temporary lodging allowance, a temporary lodging expense, or a move-in housing allowance is not included in income and should not be included in box 1 of Form W-2. Instructions michigan 2012 mi 1040x   If your reimbursements or allowances are less than your actual moving expenses, do not include the reimbursements or allowances in income. Instructions michigan 2012 mi 1040x You can deduct the expenses that are more than your reimbursements. Instructions michigan 2012 mi 1040x See Deductible Moving Expenses, earlier. Instructions michigan 2012 mi 1040x How to complete Form 3903 for members of the Armed Forces. Instructions michigan 2012 mi 1040x    Take the following steps. Instructions michigan 2012 mi 1040x Complete lines 1 through 3 of the form, using your actual expenses. Instructions michigan 2012 mi 1040x Do not include any expenses for moving services provided by the government. Instructions michigan 2012 mi 1040x Also, do not include any expenses that were reimbursed by an allowance you do not have to include in your income. Instructions michigan 2012 mi 1040x Enter on line 4 the total reimbursements and allowances you received from the government for the expenses claimed on lines 1 and 2. Instructions michigan 2012 mi 1040x Do not include the value of moving or storage services provided by the government. Instructions michigan 2012 mi 1040x Also, do not include any part of a dislocation allowance, a temporary lodging allowance, a temporary lodging expense, or a move-in housing allowance. Instructions michigan 2012 mi 1040x Complete line 5. Instructions michigan 2012 mi 1040x If line 3 is more than line 4, subtract line 4 from line 3 and enter the result on line 5 and on Form 1040, line 26. Instructions michigan 2012 mi 1040x This is your moving expense deduction. Instructions michigan 2012 mi 1040x If line 3 is equal to or less than line 4, you do not have a moving expense deduction. Instructions michigan 2012 mi 1040x Subtract line 3 from line 4 and, if the result is more than zero, enter it on Form 1040, line 7. Instructions michigan 2012 mi 1040x If the military moves you, your spouse and dependents, to or from different locations, treat these moves as a single move. Instructions michigan 2012 mi 1040x    Do not deduct any expenses for moving or storage services provided by the government. Instructions michigan 2012 mi 1040x How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. Instructions michigan 2012 mi 1040x Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Instructions michigan 2012 mi 1040x Free help with your tax return. Instructions michigan 2012 mi 1040x   Free help in preparing your return is available nationwide from IRS-certified volunteers. Instructions michigan 2012 mi 1040x The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Instructions michigan 2012 mi 1040x The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Instructions michigan 2012 mi 1040x 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. Instructions michigan 2012 mi 1040x Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Instructions michigan 2012 mi 1040x To find the nearest VITA or TCE site, visit IRS. Instructions michigan 2012 mi 1040x gov or call 1-800-906-9887. Instructions michigan 2012 mi 1040x   As part of the TCE program, AARP offers the Tax-Aide counseling program. Instructions michigan 2012 mi 1040x To find the nearest AARP Tax-Aide site, visit AARP's website at www. Instructions michigan 2012 mi 1040x aarp. Instructions michigan 2012 mi 1040x org/money/taxaide or call 1-888-227-7669. Instructions michigan 2012 mi 1040x   For more information on these programs, go to IRS. Instructions michigan 2012 mi 1040x gov and enter “VITA” in the search box. Instructions michigan 2012 mi 1040x Internet. Instructions michigan 2012 mi 1040x IRS. Instructions michigan 2012 mi 1040x gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Instructions michigan 2012 mi 1040x Apply for an Employer Identification Number (EIN). Instructions michigan 2012 mi 1040x Go to IRS. Instructions michigan 2012 mi 1040x gov and enter Apply for an EIN in the search box. Instructions michigan 2012 mi 1040x Request an Electronic Filing PIN by going to IRS. Instructions michigan 2012 mi 1040x gov and entering Electronic Filing PIN in the search box. Instructions michigan 2012 mi 1040x Check the status of your 2013 refund with Where's My Refund? Go to IRS. Instructions michigan 2012 mi 1040x gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Instructions michigan 2012 mi 1040x If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Instructions michigan 2012 mi 1040x Check the status of your amended return. Instructions michigan 2012 mi 1040x Go to IRS. Instructions michigan 2012 mi 1040x gov and enter Where's My Amended Return in the search box. Instructions michigan 2012 mi 1040x Download forms, instructions, and publications, including some accessible versions. Instructions michigan 2012 mi 1040x Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Instructions michigan 2012 mi 1040x gov or IRS2Go. Instructions michigan 2012 mi 1040x Tax return and tax account transcripts are generally available for the current year and past three years. Instructions michigan 2012 mi 1040x Figure your income tax withholding with the IRS Withholding Calculator on IRS. Instructions michigan 2012 mi 1040x gov. Instructions michigan 2012 mi 1040x 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. Instructions michigan 2012 mi 1040x Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Instructions michigan 2012 mi 1040x gov. Instructions michigan 2012 mi 1040x Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Instructions michigan 2012 mi 1040x gov or IRS2Go. Instructions michigan 2012 mi 1040x Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Instructions michigan 2012 mi 1040x An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Instructions michigan 2012 mi 1040x Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Instructions michigan 2012 mi 1040x If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Instructions michigan 2012 mi 1040x Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Instructions michigan 2012 mi 1040x Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Instructions michigan 2012 mi 1040x gov. Instructions michigan 2012 mi 1040x Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Instructions michigan 2012 mi 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Instructions michigan 2012 mi 1040x Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Instructions michigan 2012 mi 1040x AARP offers the Tax-Aide counseling program as part of the TCE program. Instructions michigan 2012 mi 1040x Visit AARP's website to find the nearest Tax-Aide location. Instructions michigan 2012 mi 1040x Research your tax questions. Instructions michigan 2012 mi 1040x Search publications and instructions by topic or keyword. Instructions michigan 2012 mi 1040x Read the Internal Revenue Code, regulations, or other official guidance. Instructions michigan 2012 mi 1040x Read Internal Revenue Bulletins. Instructions michigan 2012 mi 1040x Sign up to receive local and national tax news by email. Instructions michigan 2012 mi 1040x Phone. Instructions michigan 2012 mi 1040x You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Instructions michigan 2012 mi 1040x Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Instructions michigan 2012 mi 1040x Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, 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. Instructions michigan 2012 mi 1040x Call to locate the nearest volunteer help site, 1-800-906-9887. Instructions michigan 2012 mi 1040x Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Instructions michigan 2012 mi 1040x The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Instructions michigan 2012 mi 1040x Most VITA and TCE sites offer free electronic filing. Instructions michigan 2012 mi 1040x Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Instructions michigan 2012 mi 1040x Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Instructions michigan 2012 mi 1040x Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Instructions michigan 2012 mi 1040x The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Instructions michigan 2012 mi 1040x If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Instructions michigan 2012 mi 1040x Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Instructions michigan 2012 mi 1040x Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Instructions michigan 2012 mi 1040x Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Instructions michigan 2012 mi 1040x Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Instructions michigan 2012 mi 1040x Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Instructions michigan 2012 mi 1040x You should receive your order within 10 business days. Instructions michigan 2012 mi 1040x Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Instructions michigan 2012 mi 1040x Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Instructions michigan 2012 mi 1040x Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Instructions michigan 2012 mi 1040x Call to ask tax questions, 1-800-829-1040. Instructions michigan 2012 mi 1040x Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Instructions michigan 2012 mi 1040x The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Instructions michigan 2012 mi 1040x These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Instructions michigan 2012 mi 1040x gsa. Instructions michigan 2012 mi 1040x gov/fedrelay. Instructions michigan 2012 mi 1040x Walk-in. Instructions michigan 2012 mi 1040x You can find a selection of forms, publications and services — in-person, face-to-face. Instructions michigan 2012 mi 1040x Products. Instructions michigan 2012 mi 1040x You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Instructions michigan 2012 mi 1040x Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Instructions michigan 2012 mi 1040x Services. Instructions michigan 2012 mi 1040x You can walk in to your local TAC most business days for personal, face-to-face tax help. Instructions michigan 2012 mi 1040x An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Instructions michigan 2012 mi 1040x If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Instructions michigan 2012 mi 1040x No appointment is necessary—just walk in. Instructions michigan 2012 mi 1040x Before visiting, check www. Instructions michigan 2012 mi 1040x irs. Instructions michigan 2012 mi 1040x gov/localcontacts for hours of operation and services provided. Instructions michigan 2012 mi 1040x Mail. Instructions michigan 2012 mi 1040x You can send your order for forms, instructions, and publications to the address below. Instructions michigan 2012 mi 1040x You should receive a response within 10 business days after your request is received. Instructions michigan 2012 mi 1040x  Internal Revenue Service 1201 N. Instructions michigan 2012 mi 1040x Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Instructions michigan 2012 mi 1040x   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Instructions michigan 2012 mi 1040x Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Instructions michigan 2012 mi 1040x What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Instructions michigan 2012 mi 1040x We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Instructions michigan 2012 mi 1040x You face (or your business is facing) an immediate threat of adverse action. Instructions michigan 2012 mi 1040x You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Instructions michigan 2012 mi 1040x   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Instructions michigan 2012 mi 1040x Here's why we can help: TAS is an independent organization within the IRS. Instructions michigan 2012 mi 1040x Our advocates know how to work with the IRS. Instructions michigan 2012 mi 1040x Our services are free and tailored to meet your needs. Instructions michigan 2012 mi 1040x We have offices in every state, the District of Columbia, and Puerto Rico. Instructions michigan 2012 mi 1040x How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Instructions michigan 2012 mi 1040x irs. Instructions michigan 2012 mi 1040x gov/advocate, or call us toll-free at 1-877-777-4778. Instructions michigan 2012 mi 1040x How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Instructions michigan 2012 mi 1040x If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Instructions michigan 2012 mi 1040x irs. Instructions michigan 2012 mi 1040x gov/sams. Instructions michigan 2012 mi 1040x Low Income Taxpayer Clinics. Instructions michigan 2012 mi 1040x   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Instructions michigan 2012 mi 1040x Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Instructions michigan 2012 mi 1040x Visit www. Instructions michigan 2012 mi 1040x TaxpayerAdvocate. Instructions michigan 2012 mi 1040x irs. Instructions michigan 2012 mi 1040x gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Instructions michigan 2012 mi 1040x Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Letter 2603C Frequently Asked Questions (FAQs)

What is the letter telling me?

The letter is informing you that we accepted your installment agreement and we will file a Federal Tax Lien on your personal property.

What do I have to do?

Make your monthly installment agreement payments.

How much time do I have?

The letter provides you the date the lien will be filed.

What happens if I don't take any action?

The lien will be filed that will become part of public record.

Who should I contact?

If you have any questions about this letter, call us at the number printed in the letter. The person who answers the phone will assist you.

What if I don't agree or have already taken corrective action?

If you do not agree with this letter, call us immediately at the number included. We will do our best to help you. If you have called us about this matter before, but we did not correct the problem, you may want to contact the Office of the Taxpayer Advocate.

Page Last Reviewed or Updated: 30-Jan-2014

The Instructions Michigan 2012 Mi 1040x

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