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Penalty For Filing Taxes Late

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Penalty For Filing Taxes Late

Penalty for filing taxes late 7. Penalty for filing taxes late   Filing Information Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: What, When, and Where To FileResident Aliens Nonresident Aliens Amended Returns and Claims for Refund Other Forms You May Have To File PenaltiesCivil Penalties Criminal Penalties Introduction This chapter provides the basic filing information that you may need. Penalty for filing taxes late Topics - This chapter discusses: Forms aliens must file, When and where to file, Penalties, and Amended returns and claims for refund. Penalty for filing taxes late Useful Items - You may want to see: Forms (and Instructions) 1040 U. Penalty for filing taxes late S. Penalty for filing taxes late Individual Income Tax Return 1040A U. Penalty for filing taxes late S. Penalty for filing taxes late Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. Penalty for filing taxes late S. Penalty for filing taxes late Nonresident Alien Income Tax Return 1040NR-EZ U. Penalty for filing taxes late S. Penalty for filing taxes late Income Tax Return for Certain Nonresident Aliens With No Dependents See chapter 12 for information about getting these forms. Penalty for filing taxes late What, When, and Where To File What return you must file as well as when and where you file that return, depends on your status at the end of the tax year as a resident or a nonresident alien. Penalty for filing taxes late Resident Aliens Resident aliens should file Form 1040EZ, 1040A, or 1040 at the address shown in the instructions for that form. Penalty for filing taxes late The due date for filing the return and paying any tax due is April 15 of the year following the year for which you are filing a return (but see the Tip, later). Penalty for filing taxes late Under U. Penalty for filing taxes late S. Penalty for filing taxes late immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. Penalty for filing taxes late Extensions of time to file. Penalty for filing taxes late   You are allowed an automatic extension to June 15 to file if your main place of business and the home you live in are outside the United States and Puerto Rico on April 15. Penalty for filing taxes late You can get an extension of time to October 15 to file your return if you get an extension by April 15 (June 15 if you qualify for the June 15 extension). Penalty for filing taxes late Use Form 4868 to get the extension to October 15. Penalty for filing taxes late In addition to this 6-month extension, taxpayers who are out of the country (as defined in the Form 4868 instructions) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Penalty for filing taxes late To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Penalty for filing taxes late Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Penalty for filing taxes late   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350 (for U. Penalty for filing taxes late S. Penalty for filing taxes late citizens and resident aliens abroad who expect to qualify for special tax treatment). Penalty for filing taxes late    If the due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day which is not a Saturday, Sunday, or legal holiday. Penalty for filing taxes late You may be able to file your return electronically. Penalty for filing taxes late See IRS e-file in your form instructions. Penalty for filing taxes late Nonresident Aliens Nonresident aliens who are required to file an income tax return should use Form 1040NR or, if qualified, Form 1040NR-EZ. Penalty for filing taxes late If you are any of the following, you must file a return. Penalty for filing taxes late A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during 2013. Penalty for filing taxes late (But see Exceptions , later. Penalty for filing taxes late ) You must file even if: Your income did not come from a trade or business conducted in the United States, You have no income from U. Penalty for filing taxes late S. Penalty for filing taxes late sources, or Your income is exempt from income tax. Penalty for filing taxes late A nonresident alien individual not engaged in a trade or business in the United States with U. Penalty for filing taxes late S. Penalty for filing taxes late income on which the tax liability was not satisfied by the withholding of tax at the source. Penalty for filing taxes late A representative or agent responsible for filing the return of an individual described in (1) or (2). Penalty for filing taxes late A fiduciary for a nonresident alien estate or trust. Penalty for filing taxes late You must also file if you want to: Claim a refund of overwithheld or overpaid tax, or Claim the benefit of any deductions or credits. Penalty for filing taxes late For example, if you have no U. Penalty for filing taxes late S. Penalty for filing taxes late business activities but have income from real property that you choose to treat as effectively connected income (discussed in chapter 4), you must timely file a true and accurate return to take any allowable deductions against that income. Penalty for filing taxes late For information on what is timely, see When to file for deductions and credits under When To File, later. Penalty for filing taxes late Exceptions. Penalty for filing taxes late   You do not need to file Form 1040NR or Form 1040NR-EZ if you meet either of the following conditions. Penalty for filing taxes late Your only U. Penalty for filing taxes late S. Penalty for filing taxes late trade or business was the performance of personal services, and Your wages were less than $3,900, and You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty. Penalty for filing taxes late You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa and you have no income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Penalty for filing taxes late Even if you have left the United States and filed a Form 1040-C, U. Penalty for filing taxes late S. Penalty for filing taxes late Departing Alien Income Tax Return, on departure, you still must file an annual U. Penalty for filing taxes late S. Penalty for filing taxes late income tax return. Penalty for filing taxes late If you are married and both you and your spouse are required to file, you must each file a separate return. Penalty for filing taxes late Form 1040NR-EZ You can use Form 1040NR-EZ if all of the following conditions are met. Penalty for filing taxes late You do not claim any dependents. Penalty for filing taxes late You cannot be claimed as a dependent on someone else's U. Penalty for filing taxes late S. Penalty for filing taxes late tax return. Penalty for filing taxes late If you were married, you do not claim an exemption for your spouse. Penalty for filing taxes late Your taxable income is less than $100,000. Penalty for filing taxes late The only itemized deduction you can claim is for state and local income taxes. Penalty for filing taxes late Note. Penalty for filing taxes late Residents of India who were students or business apprentices may be able to take the standard deduction instead of the itemized deduction for state and local income taxes. Penalty for filing taxes late See chapter 5. Penalty for filing taxes late Your only U. Penalty for filing taxes late S. Penalty for filing taxes late source income is from wages, salaries, tips, taxable refunds of state and local income taxes, scholarship or fellowship grants, and nontaxable interest or dividends. Penalty for filing taxes late (If you had taxable interest or dividend income, you cannot use this form. Penalty for filing taxes late ) You are not claiming any adjustments to income other than the student loan interest deduction or scholarship and fellowship grants excluded. Penalty for filing taxes late You are not claiming any tax credits. Penalty for filing taxes late This is not an “expatriation return. Penalty for filing taxes late ” See Expatriation Tax in chapter 4. Penalty for filing taxes late The only taxes you owe are: The income tax from the Tax Table. Penalty for filing taxes late The social security and Medicare tax from Form 4137 or Form 8919. Penalty for filing taxes late You are not claiming a credit for excess social security and tier 1 RRTA tax withheld. Penalty for filing taxes late You are not filing Form 8959, to figure the amount of Additional Medicare Tax you owe and/or the amount of Additional Medicare Tax withheld by your employer, if any. Penalty for filing taxes late If you do not meet all of the above conditions, you must file Form 1040NR. Penalty for filing taxes late When To File If you are an employee and you receive wages subject to U. Penalty for filing taxes late S. Penalty for filing taxes late income tax withholding, you will generally file by the 15th day of the 4th month after your tax year ends. Penalty for filing taxes late For the 2013 calendar year, file your return by April 15, 2014. Penalty for filing taxes late If you are not an employee who receives wages subject to U. Penalty for filing taxes late S. Penalty for filing taxes late income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Penalty for filing taxes late For the 2013 calendar year, file your return by June 16, 2014 (because June 15 is a Sunday. Penalty for filing taxes late ) Extensions of time to file. Penalty for filing taxes late   If you cannot file your return by the due date, file Form 4868 or use one of the electronic filing options explained in the Form 4868 instructions. Penalty for filing taxes late For the 2013 calendar year, this will extend the due date to October 15, 2014 (December 15, 2014, if the regular due date of your return is June 16, 2014). Penalty for filing taxes late You must file the extension by the regular due date of your return. Penalty for filing taxes late   In addition to the 6-month extension to October 15, taxpayers whose main place of business is outside the United States and Puerto Rico and who live outside those jurisdictions can request a discretionary 2-month extension of time to file their returns (to December 15 for calendar year taxpayers). Penalty for filing taxes late To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Penalty for filing taxes late Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Penalty for filing taxes late When to file for deductions and credits. Penalty for filing taxes late   To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. Penalty for filing taxes late For this purpose, a return is timely if it is filed within 16 months of the due date just discussed. Penalty for filing taxes late However, if you did not file a 2012 tax return and 2013 is not the first year for which you are required to file one, your 2013 return is timely for this purpose if it is filed by the earlier of: The date that is 16 months after the due date for filing your 2013 return, or The date the IRS notifies you that your 2013 return has not been filed and that you cannot claim certain deductions and credits. Penalty for filing taxes late The allowance of the following credits is not affected by this time requirement. Penalty for filing taxes late Credit for withheld taxes. Penalty for filing taxes late Credit for excise tax on certain uses of gasoline and special fuels. Penalty for filing taxes late Credit for tax paid by a mutual fund (or other regulated investment company) or a real estate investment trust on undistributed long-term capital gains. Penalty for filing taxes late Protective return. Penalty for filing taxes late   If your activities in the United States were limited and you do not believe that you had any gross income effectively connected with a U. Penalty for filing taxes late S. Penalty for filing taxes late trade or business during the year, you can file a protective return (Form 1040NR) by the deadline explained above. Penalty for filing taxes late By filing a protective return, you protect your right to receive the benefit of deductions and credits in the event it is later determined that some or all of your income is effectively connected. Penalty for filing taxes late You are not required to report any effectively connected income or any deductions on the protective return, but you must give the reason the return is being filed. Penalty for filing taxes late   If you believe some of your activities resulted in effectively connected income, file your return reporting that income and related deductions by the regular due date. Penalty for filing taxes late To protect your right to claim deductions or credits resulting from other activities, attach a statement to that return explaining that you wish to protect your right to claim deductions and credits if it is later determined that the other activities produced effectively connected income. Penalty for filing taxes late   You can follow the same procedure if you believe you have no U. Penalty for filing taxes late S. Penalty for filing taxes late tax liability because of a U. Penalty for filing taxes late S. Penalty for filing taxes late tax treaty. Penalty for filing taxes late Be sure to also complete item L on page 5 of Form 1040NR. Penalty for filing taxes late Waiver of filing deadline. Penalty for filing taxes late   The IRS may waive the filing deadline if you establish that, based on the facts and circumstances, you acted reasonably and in good faith in failing to file a U. Penalty for filing taxes late S. Penalty for filing taxes late income tax return (including a protective return) and you cooperate with the IRS in determining your U. Penalty for filing taxes late S. Penalty for filing taxes late income tax liability for the tax year for which you did not file a return. Penalty for filing taxes late Where To File If you are not enclosing a payment, file Form 1040NR-EZ and Form 1040NR at the following address. Penalty for filing taxes late  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. Penalty for filing taxes late O. Penalty for filing taxes late Box 1303 Charlotte, NC 28201-1303 Aliens from the U. Penalty for filing taxes late S. Penalty for filing taxes late Virgin Islands. Penalty for filing taxes late    If you are a bona fide resident of the U. Penalty for filing taxes late S. Penalty for filing taxes late Virgin Islands during your entire tax year and work temporarily in the United States, you must pay your income taxes to the U. Penalty for filing taxes late S. Penalty for filing taxes late Virgin Islands and file your income tax returns at the following address. Penalty for filing taxes late Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Penalty for filing taxes late Thomas, VI 00802   Report all income from U. Penalty for filing taxes late S. Penalty for filing taxes late sources, as well as income from other sources, on your return. Penalty for filing taxes late For information on filing U. Penalty for filing taxes late S. Penalty for filing taxes late Virgin Islands returns, contact the U. Penalty for filing taxes late S. Penalty for filing taxes late Virgin Islands Bureau of Internal Revenue. Penalty for filing taxes late   Chapter 8 discusses withholding from U. Penalty for filing taxes late S. Penalty for filing taxes late wages of U. Penalty for filing taxes late S. Penalty for filing taxes late Virgin Islanders. Penalty for filing taxes late Aliens from Guam or the Commonwealth of the Northern Mariana Islands. Penalty for filing taxes late   If you are a bona fide resident of Guam or the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you must file your return with, and pay any tax due to, Guam or the CNMI. Penalty for filing taxes late Report all income, including income from U. Penalty for filing taxes late S. Penalty for filing taxes late sources, on your return. Penalty for filing taxes late It is not necessary to file a separate U. Penalty for filing taxes late S. Penalty for filing taxes late income tax return. Penalty for filing taxes late    Bona fide residents of Guam should file their Guam returns at the following address. Penalty for filing taxes late   Department of Revenue and Taxation Government of Guam P. Penalty for filing taxes late O. Penalty for filing taxes late Box 23607 GMF, GU 96921    Bona fide residents of the CNMI should file their CNMI income tax returns at the following address. Penalty for filing taxes late   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Penalty for filing taxes late O. Penalty for filing taxes late Box 5234 CHRB Saipan, MP 96950   If you are not a bona fide resident of Guam or the CNMI, see Pub. Penalty for filing taxes late 570, Tax Guide for Individuals With Income From U. Penalty for filing taxes late S. Penalty for filing taxes late Possessions, for information on where to file your return. Penalty for filing taxes late Amended Returns and Claims for Refund If you find changes in your income, deductions, or credits after you mail your return, file Form 1040X, Amended U. Penalty for filing taxes late S. Penalty for filing taxes late Individual Income Tax Return. Penalty for filing taxes late Also use Form 1040X if you should have filed Form 1040, 1040A, or 1040EZ instead of Form 1040NR or 1040NR-EZ, or vice versa. Penalty for filing taxes late If you amend Form 1040NR or Form 1040NR-EZ or file the correct return, attach the corrected return (Form 1040, Form 1040NR, etc. Penalty for filing taxes late ) to Form 1040X. Penalty for filing taxes late Print “Amended” across the top. Penalty for filing taxes late Ordinarily, an amended return claiming a refund must be filed within 3 years from the date your return was filed or within 2 years from the time the tax was paid, whichever is later. Penalty for filing taxes late A return filed before the final due date is considered to have been filed on the due date. Penalty for filing taxes late Other Forms You May Have To File You may be required to file information returns to report certain foreign income or assets, or monetary transactions. Penalty for filing taxes late FinCen Form 105 FinCEN Form 105 (formerly Customs Form 4790), Report of International Transportation of Currency or Monetary Instruments, must be filed by each person who physically transports, mails, or ships, or causes to be physically transported, mailed, or shipped, currency or other monetary instruments in a total amount of more than $10,000 at one time from the United States to any place outside the United States, or into the United States from any place outside the United States. Penalty for filing taxes late The filing requirement also applies to each person who receives in the United States currency or monetary instruments totaling more than $10,000 at one time from any place outside of the United States. Penalty for filing taxes late The term “monetary instruments” means the following: Coin and currency of the United States or of any other country, Travelers' checks in any form, Investment securities or stock in bearer form or otherwise in such form that title to them passes upon delivery, Negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title to them passes upon delivery, and Checks, promissory notes, and money orders which are signed but on which the name of the payee has been omitted. Penalty for filing taxes late However, the term does not include: Checks or money orders made payable to the order of a named person which have not been endorsed or which contain restrictive endorsements, Warehouse receipts, or Bills of lading. Penalty for filing taxes late A transfer of funds through normal banking procedures (wire transfer) that does not involve the physical transportation of currency or monetary instruments is not required to be reported on FinCEN Form 105. Penalty for filing taxes late Filing requirements. Penalty for filing taxes late   FinCEN Form 105 filing requirements follow. Penalty for filing taxes late Recipients. Penalty for filing taxes late   Each person who receives currency or other monetary instruments in the United States must file FinCEN Form 105 within 15 days after receipt, with the Customs officer in charge at any port of entry or departure, or by mail at the following address. Penalty for filing taxes late Commissioner of Customs  Attention: Currency Transportation Reports Washington, DC 20229 Shippers or mailers. Penalty for filing taxes late   If the currency or other monetary instrument does not accompany the person entering or departing the United States, FinCEN Form 105 can be filed by mail at the above address on or before the date of entry, departure, mailing, or shipping. Penalty for filing taxes late Travelers. Penalty for filing taxes late   Travelers must file FinCEN Form 105 with the Customs officer in charge at any Customs port of entry or departure, when entering or departing the United States. Penalty for filing taxes late Penalties. Penalty for filing taxes late   Civil and criminal penalties are provided for failing to file a report, filing a report containing material omissions or misstatements, or filing a false or fraudulent report. Penalty for filing taxes late Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture. Penalty for filing taxes late More information. Penalty for filing taxes late   More information regarding the filing of FinCEN Form 105 can be found in the instructions on the back of the form. Penalty for filing taxes late Form 8938 You may have to file Form 8938, Statement of Specified Foreign Financial Assets, to report the ownership of specified foreign financial asset(s) if you are one of the following individuals. Penalty for filing taxes late A resident alien of the United States for any part of the tax year. Penalty for filing taxes late A resident alien of the United States who elects to be treated as a resident of a foreign country under the provisions of a U. Penalty for filing taxes late S. Penalty for filing taxes late income tax treaty. Penalty for filing taxes late See Effect of Tax Treaties in chapter 1. Penalty for filing taxes late A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return. Penalty for filing taxes late See chapter 1 for information about this election. Penalty for filing taxes late A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. Penalty for filing taxes late See Publication 570, Tax Guide for Individuals With Income From U. Penalty for filing taxes late S. Penalty for filing taxes late Possessions, for a definition of bona fide resident. Penalty for filing taxes late You must file Form 8938 if the total value of those assets exceeds an applicable threshold (the “reporting threshold”). Penalty for filing taxes late The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Penalty for filing taxes late Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Penalty for filing taxes late S. Penalty for filing taxes late person. Penalty for filing taxes late You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Penalty for filing taxes late More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Penalty for filing taxes late Penalties The law provides penalties for failure to file returns or pay taxes as required. Penalty for filing taxes late Civil Penalties If you do not file your return and pay your tax by the due date, you may have to pay a penalty. Penalty for filing taxes late You may also have to pay a penalty if you substantially understate your tax, file a frivolous tax submission, or fail to supply your taxpayer identification number. Penalty for filing taxes late If you provide fraudulent information on your return, you may have to pay a civil fraud penalty. Penalty for filing taxes late Filing late. Penalty for filing taxes late   If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. Penalty for filing taxes late The penalty is based on the tax not paid by the due date (without regard to extensions). Penalty for filing taxes late The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. Penalty for filing taxes late Fraud. Penalty for filing taxes late   If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is late, up to a maximum of 75%. Penalty for filing taxes late Return over 60 days late. Penalty for filing taxes late   If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Penalty for filing taxes late Exception. Penalty for filing taxes late   You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not because of willful neglect. Penalty for filing taxes late Paying tax late. Penalty for filing taxes late   You will have to pay a failure-to-pay penalty of ½ of 1% (. Penalty for filing taxes late 50%) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid. Penalty for filing taxes late This penalty does not apply during the automatic 6-month extension of time to file period, if you paid at least 90% of your actual tax liability on or before the due date of your return and pay the balance when you file the return. Penalty for filing taxes late   The monthly rate of the failure-to-pay penalty is half the usual rate (. Penalty for filing taxes late 25% instead of . Penalty for filing taxes late 50%) if an installment agreement is in effect for that month. Penalty for filing taxes late You must have filed your return by the due date (including extensions) to qualify for this reduced penalty. Penalty for filing taxes late   If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at least 10 days after the day that the notice is issued. Penalty for filing taxes late If a notice and demand for immediate payment is issued, the rate will increase to 1% at the start of the first month beginning after the day that the notice and demand is issued. Penalty for filing taxes late   This penalty cannot be more than 25% of your unpaid tax. Penalty for filing taxes late You will not have to pay the penalty if you can show that you had a good reason for not paying your tax on time. Penalty for filing taxes late Combined penalties. Penalty for filing taxes late   If both the failure-to-file penalty and the failure-to-pay penalty (discussed earlier) apply in any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. Penalty for filing taxes late However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Penalty for filing taxes late Accuracy-related penalty. Penalty for filing taxes late   You may have to pay an accuracy-related penalty if you underpay your tax because: You show negligence or disregard of rules or regulations, You substantially understate your income tax, You claim tax benefits for a transaction that lacks economic substance, or You fail to disclose a foreign financial asset. Penalty for filing taxes late The penalty is equal to 20% of the underpayment. Penalty for filing taxes late The penalty is 40% of any portion of the underpayment that is attributable to an undisclosed noneconomic substance transaction or an undisclosed foreign financial asset transaction. Penalty for filing taxes late The penalty will not be figured on any part of an underpayment on which the fraud penalty (discussed later) is charged. Penalty for filing taxes late Negligence or disregard. Penalty for filing taxes late   The term “negligence” includes a failure to make a reasonable attempt to comply with the tax law or to exercise ordinary and reasonable care in preparing a return. Penalty for filing taxes late Negligence also includes failure to keep adequate books and records. Penalty for filing taxes late You will not have to pay a negligence penalty if you have a reasonable basis for a position you took. Penalty for filing taxes late   The term “disregard” includes any careless, reckless, or intentional disregard. Penalty for filing taxes late Adequate disclosure. Penalty for filing taxes late   You can avoid the penalty for disregard of rules or regulations if you adequately disclose on your return a position that has at least a reasonable basis. Penalty for filing taxes late See Disclosure statement , later. Penalty for filing taxes late   This exception will not apply to an item that is attributable to a tax shelter. Penalty for filing taxes late In addition, it will not apply if you fail to keep adequate books and records, or substantiate items properly. Penalty for filing taxes late Substantial understatement of income tax. Penalty for filing taxes late   You understate your tax if the tax shown on your return is less than the correct tax. Penalty for filing taxes late The understatement is substantial if it is more than the larger of 10% of the correct tax or $5,000. Penalty for filing taxes late However, the amount of the understatement is reduced to the extent the understatement is due to: Substantial authority, or Adequate disclosure and a reasonable basis. Penalty for filing taxes late   If an item on your return is attributable to a tax shelter, there is no reduction for an adequate disclosure. Penalty for filing taxes late However, there is a reduction for a position with substantial authority, but only if you reasonably believed that your tax treatment was more likely than not the proper treatment. Penalty for filing taxes late Substantial authority. Penalty for filing taxes late   Whether there is or was substantial authority for the tax treatment of an item depends on the facts and circumstances. Penalty for filing taxes late Consideration will be given to court opinions, Treasury regulations, revenue rulings, revenue procedures, and notices and announcements issued by the IRS and published in the Internal Revenue Bulletin that involve the same or similar circumstances as yours. Penalty for filing taxes late Disclosure statement. Penalty for filing taxes late   To adequately disclose the relevant facts about your tax treatment of an item, use Form 8275, Disclosure Statement. Penalty for filing taxes late You must also have a reasonable basis for treating the item the way you did. Penalty for filing taxes late   In cases of substantial understatement only, items that meet the requirements of Revenue Procedure 2012-51, 2012-51 IRB 719 (or later update) are considered adequately disclosed on your return without filing Form 8275. Penalty for filing taxes late   Use Form 8275-R, Regulation Disclosure Statement, to disclose items or positions contrary to regulations. Penalty for filing taxes late Transaction lacking economic substance. Penalty for filing taxes late   For more information on economic substance, see section 7701(o). Penalty for filing taxes late Foreign financial asset. Penalty for filing taxes late   For more information on undisclosed foreign financial assets, see section 6662(j) or the Instructions for Form 8938. Penalty for filing taxes late Reasonable cause. Penalty for filing taxes late   You will not have to pay a penalty if you show a good reason (reasonable cause) for the way you treated an item. Penalty for filing taxes late You must also show that you acted in good faith. Penalty for filing taxes late This does not apply to a transaction that lacks economic substance. Penalty for filing taxes late Filing erroneous claim for refund or credit. Penalty for filing taxes late   You may have to pay a penalty if you file an erroneous claim for refund or credit. Penalty for filing taxes late The penalty is equal to 20% of the disallowed amount of the claim, unless you can show a reasonable basis for the way you treated an item. Penalty for filing taxes late However, any disallowed amount due to a transaction that lacks economic substance will not be treated as having a reasonable basis. Penalty for filing taxes late The penalty will not be figured on any part of the disallowed amount of the claim that relates to the earned income credit or on which the accuracy-related or fraud penalties are charged. Penalty for filing taxes late Frivolous tax submission. Penalty for filing taxes late   You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. Penalty for filing taxes late A frivolous tax return is one that does not include enough information to figure the correct tax or that contains information clearly showing that the tax you reported is substantially incorrect. Penalty for filing taxes late For more information on frivolous returns, frivolous submissions, and a list of positions that are identified as frivolous, see Notice 2010-33, 2010-17 IRB 609 available at www. Penalty for filing taxes late irs. Penalty for filing taxes late gov/irb/2010-17_irb/ar13. Penalty for filing taxes late html. Penalty for filing taxes late   You will have to pay the penalty if you filed this kind of return or submission based on a frivolous position or a desire to delay or interfere with the administration of federal tax laws. Penalty for filing taxes late This includes altering or striking out the preprinted language above the space provided for your signature. Penalty for filing taxes late   This penalty is added to any other penalty provided by law. Penalty for filing taxes late Fraud. Penalty for filing taxes late   If there is any underpayment of tax on your return due to fraud, a penalty of 75% of the underpayment due to fraud will be added to your tax. Penalty for filing taxes late Failure to supply taxpayer identification number. Penalty for filing taxes late   If you do not include your social security number (SSN) or individual taxpayer identification number (ITIN) or the SSN or ITIN of another person where required on a return, statement, or other document, you will be subject to a penalty of $50 for each failure. Penalty for filing taxes late You will also be subject to a penalty of $50 if you do not give your SSN or ITIN to another person when it is required on a return, statement, or other document. Penalty for filing taxes late   For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. Penalty for filing taxes late The number must be shown on the Form 1099-INT or other statement the bank sends you. Penalty for filing taxes late If you do not give the bank your SSN or ITIN, you will be subject to the $50 penalty. Penalty for filing taxes late (You also may be subject to “backup” withholding of income tax. Penalty for filing taxes late )   You will not have to pay the penalty if you are able to show that the failure was due to reasonable cause and not willful neglect. Penalty for filing taxes late Criminal Penalties You may be subject to criminal prosecution (brought to trial) for actions such as: Tax evasion, Willful failure to file a return, supply information, or pay any tax due, Fraud and false statements, or Preparing and filing a fraudulent return. Penalty for filing taxes late Prev  Up  Next   Home   More Online Publications
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Penalty for filing taxes late 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. Penalty for filing taxes late Text message. Penalty for filing taxes late Credit card. Penalty for filing taxes late Pay-by-phone account. Penalty for filing taxes late Stock certificate. Penalty for filing taxes late Promissory note. Penalty for filing taxes late Option. Penalty for filing taxes late Borrowed funds. Penalty for filing taxes late Conditional gift. Penalty for filing taxes late 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. Penalty for filing taxes late Total deduction over $500. Penalty for filing taxes late Deduction over $5,000 for one item. Penalty for filing taxes late Vehicle donations. Penalty for filing taxes late Clothing and household items not in good used condition. Penalty for filing taxes late Easement on building in historic district. Penalty for filing taxes late Deduction over $500,000. Penalty for filing taxes late 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. Penalty for filing taxes late Most organizations, other than churches and governments, must apply to the IRS to become a qualified organization. Penalty for filing taxes late How to check whether an organization can receive deductible charitable contributions. Penalty for filing taxes late   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Penalty for filing taxes late Or go to IRS. Penalty for filing taxes late gov. Penalty for filing taxes late Click on “Tools” and then on “Exempt Organizations Select Check” (www. Penalty for filing taxes late irs. Penalty for filing taxes late gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Penalty for filing taxes late This online tool will enable you to search for qualified organizations. Penalty for filing taxes late You can also call the IRS to find out if an organization is qualified. Penalty for filing taxes late Call 1-877-829-5500. Penalty for filing taxes late 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. Penalty for filing taxes late Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Penalty for filing taxes late gsa. Penalty for filing taxes late gov/fedrelay. Penalty for filing taxes late Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Penalty for filing taxes late 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). Penalty for filing taxes late 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. Penalty for filing taxes late Certain organizations that foster national or international amateur sports competition also qualify. Penalty for filing taxes late War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Penalty for filing taxes late Domestic fraternal societies, orders, and associations operating under the lodge system. Penalty for filing taxes late (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. Penalty for filing taxes late ) Certain nonprofit cemetery companies or corporations. Penalty for filing taxes late (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. Penalty for filing taxes late ) The United States or any state, the District of Columbia, a U. Penalty for filing taxes late S. Penalty for filing taxes late possession (including Puerto Rico), a political subdivision of a state or U. Penalty for filing taxes late S. Penalty for filing taxes late possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Penalty for filing taxes late (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes. Penalty for filing taxes late ) Example 1. Penalty for filing taxes late You contribute cash to your city's police department to be used as a reward for information about a crime. Penalty for filing taxes late The city police department is a qualified organization, and your contribution is for a public purpose. Penalty for filing taxes late You can deduct your contribution. Penalty for filing taxes late Example 2. Penalty for filing taxes late You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Penalty for filing taxes late Because the trust fund is part of the U. Penalty for filing taxes late S. Penalty for filing taxes late Government, you contributed to a qualified organization. Penalty for filing taxes late You can deduct your contribution. Penalty for filing taxes late Examples. Penalty for filing taxes late   The following list gives some examples of qualified organizations. Penalty for filing taxes late Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Penalty for filing taxes late Most nonprofit charitable organizations such as the American Red Cross and the United Way. Penalty for filing taxes late Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Penalty for filing taxes late 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. Penalty for filing taxes late 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 . Penalty for filing taxes late Nonprofit hospitals and medical research organizations. Penalty for filing taxes late Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Penalty for filing taxes late Nonprofit volunteer fire companies. Penalty for filing taxes late Nonprofit organizations that develop and maintain public parks and recreation facilities. Penalty for filing taxes late Civil defense organizations. Penalty for filing taxes late Canadian charities. Penalty for filing taxes late   You may be able to deduct contributions to certain Canadian charitable organizations covered under an income tax treaty with Canada. Penalty for filing taxes late To deduct your contribution to a Canadian charity, you generally must have income from sources in Canada. Penalty for filing taxes late See Publication 597, Information on the United States-Canada Income Tax Treaty, for information on how to figure your deduction. Penalty for filing taxes late Mexican charities. Penalty for filing taxes late   Under the U. Penalty for filing taxes late S. Penalty for filing taxes late -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. Penalty for filing taxes late S. Penalty for filing taxes late law. Penalty for filing taxes late To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. Penalty for filing taxes late The limits described in Limits on Deductions , later, apply and are figured using your income from Mexican sources. Penalty for filing taxes late Israeli charities. Penalty for filing taxes late   Under the U. Penalty for filing taxes late S. Penalty for filing taxes late -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. Penalty for filing taxes late S. Penalty for filing taxes late law. Penalty for filing taxes late To deduct your contribution to an Israeli charity, you must have income from sources in Israel. Penalty for filing taxes late The limits described in Limits on Deductions , later, apply. Penalty for filing taxes late The deduction is also limited to 25% of your adjusted gross income from Israeli sources. Penalty for filing taxes late Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Penalty for filing taxes late 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. Penalty for filing taxes late The contributions must be made to a qualified organization and not set aside for use by a specific person. Penalty for filing taxes late 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. Penalty for filing taxes late See Contributions of Property , later. Penalty for filing taxes late 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. Penalty for filing taxes late In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited. Penalty for filing taxes late See Limits on Deductions , later. Penalty for filing taxes late Table 1 in this publication gives examples of contributions you can and cannot deduct. Penalty for filing taxes late 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. Penalty for filing taxes late Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Penalty for filing taxes late If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Penalty for filing taxes late For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Penalty for filing taxes late Example 1. Penalty for filing taxes late You pay $65 for a ticket to a dinner-dance at a church. Penalty for filing taxes late Your entire $65 payment goes to the church. Penalty for filing taxes late The ticket to the dinner-dance has a fair market value of $25. Penalty for filing taxes late When you buy your ticket, you know its value is less than your payment. Penalty for filing taxes late To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Penalty for filing taxes late You can deduct $40 as a charitable contribution to the church. Penalty for filing taxes late Example 2. Penalty for filing taxes late At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Penalty for filing taxes late The amount you pay is no more than the fair rental value. Penalty for filing taxes late You have not made a deductible charitable contribution. Penalty for filing taxes late Athletic events. Penalty for filing taxes late   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. Penalty for filing taxes late   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Penalty for filing taxes late Subtract the price of the tickets from your payment. Penalty for filing taxes late You can deduct 80% of the remaining amount as a charitable contribution. Penalty for filing taxes late Example 1. Penalty for filing taxes late You pay $300 a year for membership in a university's athletic scholarship program. Penalty for filing taxes late 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. Penalty for filing taxes late You can deduct $240 (80% of $300) as a charitable contribution. Penalty for filing taxes late Example 2. Penalty for filing taxes late 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. Penalty for filing taxes late You must subtract the usual price of a ticket ($120) from your $300 payment. Penalty for filing taxes late The result is $180. Penalty for filing taxes late Your deductible charitable contribution is $144 (80% of $180). Penalty for filing taxes late Charity benefit events. Penalty for filing taxes late   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. Penalty for filing taxes late   If there is an established charge for the event, that charge is the value of your benefit. Penalty for filing taxes late If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Penalty for filing taxes late Whether you use the tickets or other privileges has no effect on the amount you can deduct. Penalty for filing taxes late However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Penalty for filing taxes late    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. Penalty for filing taxes late If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Penalty for filing taxes late Example. Penalty for filing taxes late You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Penalty for filing taxes late Printed on the ticket is “Contribution–$40. Penalty for filing taxes late ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Penalty for filing taxes late Membership fees or dues. Penalty for filing taxes late   You may be able to deduct membership fees or dues you pay to a qualified organization. Penalty for filing taxes late However, you can deduct only the amount that is more than the value of the benefits you receive. Penalty for filing taxes late   You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Penalty for filing taxes late They are not qualified organizations. Penalty for filing taxes late Certain membership benefits can be disregarded. Penalty for filing taxes late   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. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late 20. Penalty for filing taxes late Token items. Penalty for filing taxes late   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Penalty for filing taxes late You receive only a small item or other benefit of token value. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late Written statement. Penalty for filing taxes late   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. Penalty for filing taxes late 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. Penalty for filing taxes late It must also give you a good faith estimate of the value of those goods or services. Penalty for filing taxes late   The organization can give you the statement either when it solicits or when it receives the payment from you. Penalty for filing taxes late Exception. Penalty for filing taxes late   An organization will not have to give you this statement if one of the following is true. Penalty for filing taxes late 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. Penalty for filing taxes late You receive only items whose value is not substantial as described under Token items , earlier. Penalty for filing taxes late You receive only membership benefits that can be disregarded, as described under Membership fees or dues , earlier. Penalty for filing taxes late Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Penalty for filing taxes late 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. Penalty for filing taxes late You can deduct up to $50 a month for each full calendar month the student lives with you. Penalty for filing taxes late Any month when conditions (1) through (3) above are met for 15 or more days counts as a full month. Penalty for filing taxes late Qualified organization. Penalty for filing taxes late   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). Penalty for filing taxes late 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. Penalty for filing taxes late But see Foster parents under Out-of-Pocket Expenses in Giving Services, later, if you provide the home as a foster parent. Penalty for filing taxes late Relative. Penalty for filing taxes late   The term “relative” means any of the following persons. Penalty for filing taxes late Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Penalty for filing taxes late A legally adopted child is considered your child. Penalty for filing taxes late Your brother, sister, half brother, half sister, stepbrother, or stepsister. Penalty for filing taxes late Your father, mother, grandparent, or other direct ancestor. Penalty for filing taxes late Your stepfather or stepmother. Penalty for filing taxes late A son or daughter of your brother or sister. Penalty for filing taxes late A brother or sister of your father or mother. Penalty for filing taxes late Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Penalty for filing taxes late Dependent. Penalty for filing taxes late   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. Penalty for filing taxes late    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. Penalty for filing taxes late S. Penalty for filing taxes late residents and cannot be claimed as dependents. Penalty for filing taxes late Qualifying expenses. Penalty for filing taxes late   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. Penalty for filing taxes late Expenses that do not qualify. Penalty for filing taxes late   You cannot deduct depreciation on your home, the fair market value of lodging, and similar items not considered amounts actually spent by you. Penalty for filing taxes late Nor can you deduct general household expenses, such as taxes, insurance, and repairs. Penalty for filing taxes late Reimbursed expenses. Penalty for filing taxes late   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. Penalty for filing taxes late 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. Penalty for filing taxes late Mutual exchange program. Penalty for filing taxes late   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. Penalty for filing taxes late Reporting expenses. Penalty for filing taxes late   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. Penalty for filing taxes late Out-of-Pocket Expenses in Giving Services Table 2. Penalty for filing taxes late Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Penalty for filing taxes late All of the rules explained in this publication also apply. Penalty for filing taxes late See, in particular, Out-of-Pocket Expenses in Giving Services . Penalty for filing taxes late Question Answer I volunteer 6 hours a week in the office of a qualified organization. Penalty for filing taxes late The receptionist is paid $10 an hour for the same work. Penalty for filing taxes late Can I deduct $60 a week for my time? No, you cannot deduct the value of your time or services. Penalty for filing taxes late  The office is 30 miles from my home. Penalty for filing taxes late 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. Penalty for filing taxes late If you do not want to figure your actual costs, you can deduct 14 cents for each mile. Penalty for filing taxes late I volunteer as a Red Cross nurse's aide at a hospital. Penalty for filing taxes late 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. Penalty for filing taxes late I pay a babysitter to watch my children while I volunteer for a qualified organization. Penalty for filing taxes late 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. Penalty for filing taxes late (If you have childcare expenses so you can work for pay, see Publication 503, Child and Dependent Care Expenses. Penalty for filing taxes late ) 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. Penalty for filing taxes late 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. Penalty for filing taxes late Table 2 contains questions and answers that apply to some individuals who volunteer their services. Penalty for filing taxes late Underprivileged youths selected by charity. Penalty for filing taxes late   You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. Penalty for filing taxes late The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Penalty for filing taxes late Your own similar expenses in accompanying the youths are not deductible. Penalty for filing taxes late Conventions. Penalty for filing taxes late   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. Penalty for filing taxes late However, see Travel , later. Penalty for filing taxes late   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Penalty for filing taxes late You also cannot deduct travel, meals and lodging, and other expenses for your spouse or children. Penalty for filing taxes late   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. Penalty for filing taxes late You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Penalty for filing taxes late Uniforms. Penalty for filing taxes late   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. Penalty for filing taxes late Foster parents. Penalty for filing taxes late   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. Penalty for filing taxes late A qualified organization must select the individuals you take into your home for foster care. Penalty for filing taxes late   You can deduct expenses that meet both of the following requirements. Penalty for filing taxes late They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Penalty for filing taxes late They are incurred primarily to benefit the qualified organization. Penalty for filing taxes late   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. Penalty for filing taxes late For details, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Penalty for filing taxes late Example. Penalty for filing taxes late You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Penalty for filing taxes late Your unreimbursed expenses are not deductible as charitable contributions. Penalty for filing taxes late Church deacon. Penalty for filing taxes late   You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. Penalty for filing taxes late 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. Penalty for filing taxes late Car expenses. Penalty for filing taxes late   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. Penalty for filing taxes late You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Penalty for filing taxes late   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. Penalty for filing taxes late   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Penalty for filing taxes late   You must keep reliable written records of your car expenses. Penalty for filing taxes late For more information, see Car expenses under Records To Keep, later. Penalty for filing taxes late Travel. Penalty for filing taxes late   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. Penalty for filing taxes late This applies whether you pay the expenses directly or indirectly. Penalty for filing taxes late You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Penalty for filing taxes late   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late Example 1. Penalty for filing taxes late You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Penalty for filing taxes late You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Penalty for filing taxes late You participate in the activities of the group and enjoy your time with them. Penalty for filing taxes late You oversee the breaking of camp and you transport the group home. Penalty for filing taxes late You can deduct your travel expenses. Penalty for filing taxes late Example 2. Penalty for filing taxes late You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Penalty for filing taxes late The project is sponsored by a charitable organization. Penalty for filing taxes late In most circumstances, you cannot deduct your expenses. Penalty for filing taxes late Example 3. Penalty for filing taxes late You work for several hours each morning on an archeological dig sponsored by a charitable organization. Penalty for filing taxes late The rest of the day is free for recreation and sightseeing. Penalty for filing taxes late You cannot take a charitable contribution deduction even though you work very hard during those few hours. Penalty for filing taxes late Example 4. Penalty for filing taxes late You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Penalty for filing taxes late In the evening you go to the theater. Penalty for filing taxes late You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Penalty for filing taxes late Daily allowance (per diem). Penalty for filing taxes late   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. Penalty for filing taxes late You may be able to deduct any necessary travel expenses that are more than the allowance. Penalty for filing taxes late Deductible travel expenses. Penalty for filing taxes late   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. Penalty for filing taxes late Because these travel expenses are not business-related, they are not subject to the same limits as business related expenses. Penalty for filing taxes late For information on business travel expenses, see Travel in Publication 463, Travel, Entertainment, Gift, and Car Expenses. Penalty for filing taxes late 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. Penalty for filing taxes late The deduction is limited to $10,000 a year. Penalty for filing taxes late 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. Penalty for filing taxes late Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission. Penalty for filing taxes late 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. Penalty for filing taxes late You must keep records showing the time, place, date, amount, and nature of the expenses. Penalty for filing taxes late For details, see Revenue Procedure 2006-50, which is on page 944 of Internal Revenue Bulletin 2006-47 at www. Penalty for filing taxes late irs. Penalty for filing taxes late gov/pub/irs-irbs/irb06-47. Penalty for filing taxes late pdf. Penalty for filing taxes late Contributions You Cannot Deduct There are some contributions you cannot deduct and others you can deduct only in part. Penalty for filing taxes late 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. Penalty for filing taxes late Detailed discussions of these items follow. Penalty for filing taxes late Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Penalty for filing taxes late Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members. Penalty for filing taxes late Contributions to individuals who are needy or worthy. Penalty for filing taxes late You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Penalty for filing taxes late 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. Penalty for filing taxes late Example. Penalty for filing taxes late You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Penalty for filing taxes late However, you cannot deduct contributions earmarked for relief of a particular individual or family. Penalty for filing taxes late Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Penalty for filing taxes late Expenses you paid for another person who provided services to a qualified organization. Penalty for filing taxes late Example. Penalty for filing taxes late Your son does missionary work. Penalty for filing taxes late You pay his expenses. Penalty for filing taxes late You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Penalty for filing taxes late Payments to a hospital that are for a specific patient's care or for services for a specific patient. Penalty for filing taxes late You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization. Penalty for filing taxes late Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Penalty for filing taxes late 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. Penalty for filing taxes late Chambers of commerce and other business leagues or organizations. Penalty for filing taxes late Civic leagues and associations. Penalty for filing taxes late Communist organizations. Penalty for filing taxes late Country clubs and other social clubs. Penalty for filing taxes late Foreign organizations other than certain Canadian, Israeli, or Mexican charitable organizations. Penalty for filing taxes late (See Canadian charities , Mexican charities , and Israeli charities under Organizations That Qualify To Receive Deductible Contributions, earlier. Penalty for filing taxes late ) Also, you cannot deduct a contribution you made to any qualifying organization if the contribution is earmarked to go to a foreign organization. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late The contribution is also deductible if the foreign charity is only an administrative arm of the qualified organization. Penalty for filing taxes late Homeowners' associations. Penalty for filing taxes late Labor unions. Penalty for filing taxes late 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). Penalty for filing taxes late See Publication 529, Miscellaneous Deductions. Penalty for filing taxes late Political organizations and candidates. Penalty for filing taxes late 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. Penalty for filing taxes late See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Penalty for filing taxes late These contributions include the following. Penalty for filing taxes late Contributions for lobbying. Penalty for filing taxes late This includes amounts you earmark for use in, or in connection with, influencing specific legislation. Penalty for filing taxes late Contributions to a retirement home for room, board, maintenance, or admittance. Penalty for filing taxes late Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Penalty for filing taxes late Costs of raffles, bingo, lottery, etc. Penalty for filing taxes late 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. Penalty for filing taxes late For information on how to report gambling winnings and losses, see Deductions Not Subject to the 2% Limit in Publication 529. Penalty for filing taxes late Dues to fraternal orders and similar groups. Penalty for filing taxes late However, see Membership fees or dues under Contributions From Which You Benefit, earlier. Penalty for filing taxes late Tuition, or amounts you pay instead of tuition. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late ” Contributions connected with split-dollar insurance arrangements. Penalty for filing taxes late 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. Penalty for filing taxes late Example. Penalty for filing taxes late You donate money to a charitable organization. Penalty for filing taxes late The charity uses the money to purchase a cash value life insurance policy. Penalty for filing taxes late The beneficiaries under the insurance policy include members of your family. Penalty for filing taxes late Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation. Penalty for filing taxes late 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. Penalty for filing taxes late You must have been at least age 70½ when the distribution was made. Penalty for filing taxes late Your total QCDs for the year cannot be more than $100,000. Penalty for filing taxes late If all the requirements are met, a QCD is nontaxable, but you cannot claim a charitable contribution deduction for a QCD. Penalty for filing taxes late See Publication 590, Individual Retirement Arrangements (IRAs), for more information about QCDs. Penalty for filing taxes late 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. Penalty for filing taxes late Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Penalty for filing taxes late 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. Penalty for filing taxes late Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. Penalty for filing taxes late However, you may be able to claim a tax credit for these expenses. Penalty for filing taxes late Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. Penalty for filing taxes late See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. Penalty for filing taxes late You also may be able to claim an exemption for the child. Penalty for filing taxes late See Exemptions for Dependents in Publication 501 for more information. Penalty for filing taxes late Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property. Penalty for filing taxes late But you can claim them, subject to the 2%-of-adjusted-gross-income limit, as a miscellaneous itemized deduction on Schedule A (Form 1040). Penalty for filing taxes late See Deductions Subject to the 2% Limit in Publication 529 for more information. Penalty for filing taxes late 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. Penalty for filing taxes late There are also other circumstances in which you cannot deduct your contribution to a donor-advised fund. Penalty for filing taxes late 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. Penalty for filing taxes late For details, see Internal Revenue Code section 170(f)(18). Penalty for filing taxes late Partial Interest in Property Generally, you cannot deduct a contribution of less than your entire interest in property. Penalty for filing taxes late For details, see Partial Interest in Property under Contributions of Property, later. Penalty for filing taxes late 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. Penalty for filing taxes late However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Penalty for filing taxes late See Giving Property That Has Increased in Value , later. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late These special rules are described next. Penalty for filing taxes late 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. Penalty for filing taxes late Exception. Penalty for filing taxes late   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. Penalty for filing taxes late Household items. Penalty for filing taxes late   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Penalty for filing taxes late   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Penalty for filing taxes late Fair market value. Penalty for filing taxes late   To determine the fair market value of these items, use the rules under Determining Fair Market Value , later. Penalty for filing taxes late Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. Penalty for filing taxes late 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. Penalty for filing taxes late Deduction more than $500. Penalty for filing taxes late   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. Penalty for filing taxes late 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. Penalty for filing taxes late Form 1098-C. Penalty for filing taxes late   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. Penalty for filing taxes late The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Penalty for filing taxes late   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453, U. Penalty for filing taxes late S. Penalty for filing taxes late 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. Penalty for filing taxes late   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Penalty for filing taxes late    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Penalty for filing taxes late But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Penalty for filing taxes late Filing deadline approaching and still no Form 1098-C. Penalty for filing taxes late   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Penalty for filing taxes late Request an automatic 6-month extension of time to file your return. Penalty for filing taxes late You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U. Penalty for filing taxes late S. Penalty for filing taxes late Individual Income Tax Return. Penalty for filing taxes late For more information, see the instructions for Form 4868. Penalty for filing taxes late File the return on time without claiming the deduction for the qualified vehicle. Penalty for filing taxes late After receiving the Form 1098-C, file an amended return, Form 1040X, Amended U. Penalty for filing taxes late S. Penalty for filing taxes late Individual Income Tax Return, claiming the deduction. Penalty for filing taxes late Attach Copy B of Form 1098-C (or other statement) to the amended return. Penalty for filing taxes late Exceptions. Penalty for filing taxes late   There are two exceptions to the rules just described for deductions of more than $500. Penalty for filing taxes late Exception 1—vehicle used or improved by organization. Penalty for filing taxes late   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. Penalty for filing taxes late 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. Penalty for filing taxes late The Form 1098-C (or other statement) will show whether this exception applies. Penalty for filing taxes late    Exception 2—vehicle given or sold to needy individual. Penalty for filing taxes late   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. Penalty for filing taxes late 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. Penalty for filing taxes late The Form 1098-C (or other statement) will show whether this exception applies. Penalty for filing taxes late   This exception does not apply if the organization sells the vehicle at auction. Penalty for filing taxes late In that case, you cannot deduct the vehicle's fair market value. Penalty for filing taxes late Example. Penalty for filing taxes late Anita donates a used car to a qualified organization. Penalty for filing taxes late She bought it 3 years ago for $9,000. Penalty for filing taxes late A used car guide shows the fair market value for this type of car is $6,000. Penalty for filing taxes late However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Penalty for filing taxes late Neither exception 1 nor exception 2 applies. Penalty for filing taxes late If Anita itemizes her deductions, she can deduct $2,900 for her donation. Penalty for filing taxes late She must attach Form 1098-C and Form 8283 to her return. Penalty for filing taxes late Deduction $500 or less. Penalty for filing taxes late   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. Penalty for filing taxes late 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. Penalty for filing taxes late   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. Penalty for filing taxes late 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. Penalty for filing taxes late Fair market value. Penalty for filing taxes late   To determine a vehicle's fair market value, use the rules described under Determining Fair Market Value , later. Penalty for filing taxes late Donations of inventory. Penalty for filing taxes late   The vehicle donation rules just described do not apply to donations of inventory. Penalty for filing taxes late 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. Penalty for filing taxes late See Inventory , later. Penalty for filing taxes late 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. Penalty for filing taxes late This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property. Penalty for filing taxes late Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Penalty for filing taxes late Your basis does not include transportation or travel costs. Penalty for filing taxes late It also does not include the direct or indirect costs for hunting or killing an animal, such as equipment costs. Penalty for filing taxes late In addition, it does not include the value of your time. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late This prevents you from deducting the same amount as both investment interest and a charitable contribution. Penalty for filing taxes late 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. Penalty for filing taxes late 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). Penalty for filing taxes late For more information, see Bargain Sales under Giving Property That Has Increased in Value, later. Penalty for filing taxes late Partial Interest in Property Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Penalty for filing taxes late Right to use property. Penalty for filing taxes late   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Penalty for filing taxes late Example 1. Penalty for filing taxes late You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Penalty for filing taxes late Because you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution. Penalty for filing taxes late Example 2. Penalty for filing taxes late Mandy White owns a vacation home at the beach that she sometimes rents to others. Penalty for filing taxes late For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. Penalty for filing taxes late 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. Penalty for filing taxes late Mandy cannot claim a deduction because of the partial interest rule. Penalty for filing taxes late Lauren cannot claim a deduction either, because she received a benefit equal to the amount of her payment. Penalty for filing taxes late See Contributions From Which You Benefit , earlier. Penalty for filing taxes late Exceptions. Penalty for filing taxes late   You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items. Penalty for filing taxes late A remainder interest in your personal home or farm. Penalty for filing taxes late A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property. Penalty for filing taxes late Example. Penalty for filing taxes late You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death. Penalty for filing taxes late You can deduct the value of the remainder interest. Penalty for filing taxes late An undivided part of your entire interest. Penalty for filing taxes late 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. Penalty for filing taxes late But see Fractional Interest in Tangible Personal Property , later. Penalty for filing taxes late Example. Penalty for filing taxes late You contribute voting stock to a qualified organization but keep the right to vote the stock. Penalty for filing taxes late The right to vote is a substantial right in the stock. Penalty for filing taxes late You have not contributed an undivided part of your entire interest and cannot deduct your contribution. Penalty for filing taxes late A partial interest that would be deductible if transferred to certain types of trusts. Penalty for filing taxes late A qualified conservation contribution (defined later). Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late Tangible personal property is defined later under Future Interest in Tangible Personal Property . Penalty for filing taxes late A fractional interest in property is an undivided portion of your entire interest in the property. Penalty for filing taxes late Example. Penalty for filing taxes late 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. Penalty for filing taxes late Recapture of deduction. Penalty for filing taxes late   You must recapture your charitable contribution deduction by including it in your income if both of the following statements are true. Penalty for filing taxes late You contributed a fractional interest in tangible personal property after August 17, 2006. Penalty for filing taxes late 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. Penalty for filing taxes late   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. Penalty for filing taxes late Additional tax. Penalty for filing taxes late   If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount recaptured. Penalty for filing taxes late 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. Penalty for filing taxes late Qualified organization. Penalty for filing taxes late   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. Penalty for filing taxes late The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. Penalty for filing taxes late   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. Penalty for filing taxes late Qualified real property interest. Penalty for filing taxes late   This is any of the following interests in real property. Penalty for filing taxes late 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). Penalty for filing taxes late A remainder interest. Penalty for filing taxes late A restriction (granted in perpetuity) on the use that may be made of the real property. Penalty for filing taxes late Conservation purposes. Penalty for filing taxes late   Your contribution must be made only for one of the following conservation purposes. Penalty for filing taxes late Preserving land areas for outdoor recreation by, or for the education of, the general public. Penalty for filing taxes late Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. Penalty for filing taxes late Preserving open space, including farmland and forest land, if it yields a significant public benefit. Penalty for filing taxes late 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. Penalty for filing taxes late Preserving a historically important land area or a certified historic structure. Penalty for filing taxes late Building in registered historic district. Penalty for filing taxes late   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. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late   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. Penalty for filing taxes late For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). Penalty for filing taxes late   If you claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. Penalty for filing taxes late See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. Penalty for filing taxes late 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). Penalty for filing taxes late See Deductions Subject to the 2% Limit in Publication 529 for more information. Penalty for filing taxes late More information. Penalty for filing taxes late   For information about determining the fair market value of qualified conservation contributions, see Publication 561. Penalty for filing taxes late For information about the limits that apply to deductions for this type of contribution, see Limits on Deductions , later. Penalty for filing taxes late For more information about qualified conservation contributions, see Regulations section 1. Penalty for filing taxes late 170A-14. Penalty for filing taxes late 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. Penalty for filing taxes late But see Fractional Interest in Tangible Personal Property , earlier, and Tangible personal property put to unrelated use , later. Penalty for filing taxes late Related persons include your spouse, children, grandchildren, brothers, sisters, and parents. Penalty for filing taxes late 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. Penalty for filing taxes late Tangible personal property. Penalty for filing taxes late   This is any property, other than land or buildings, that can be seen or touched. Penalty for filing taxes late It includes furniture, books, jewelry, paintings, and cars. Penalty for filing taxes late Future interest. Penalty for filing taxes late   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. Penalty for filing taxes late Example. Penalty for filing taxes late You own an antique car that you contribute to a museum. Penalty for filing taxes late You give up ownership, but retain the right to keep the car in your garage with your personal collection. Penalty for filing taxes late Because you keep an interest in the property, you cannot deduct the contribution. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late 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. Penalty for filing taxes late You must remove the amount of your charitable contribution deduction from your opening inventory. Penalty for filing taxes late It is not part of the cost of goods sold. Penalty for filing taxes late 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. Penalty for filing taxes late Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Penalty for filing taxes late For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Penalty for filing taxes late A special rule applies to certain donations of food inventory. Penalty for filing taxes late See Food Inventory, later. Penalty for filing taxes late 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. Penalty for filing taxes late Intellectual property means any of the following: Patents. Penalty for filing taxes late Copyrights (other than a copyright described in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)). Penalty for filing taxes late Trademarks. Penalty for filing taxes late Trade names. Penalty for filing taxes late Trade secrets. Penalty for filing taxes late Know-how. Penalty for filing taxes late Software (other than software described in Internal Revenue Code section 197(e)(3)(A)(i)). Penalty for filing taxes late Other similar property or applications or registrations of such property. Penalty for filing taxes late Additional deduction based on income. Penalty for filing taxes late   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. Penalty for filing taxes late   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. Penalty for filing taxes late In the table, “tax year 1,” for example, means your first tax year ending on or after the date of the contribution. Penalty for filing taxes late 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. Penalty for filing taxes late   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. Penalty for filing taxes late The additional deductions cannot be taken for intellectual property donated to certain private foundations. Penalty for filing taxes late 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. Penalty for filing taxes late   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. Penalty for filing taxes late   The organization is required to file an information return showing the income from the property, with a copy to you. Penalty for filing taxes late This is done on Form 8899, Notice of Income From Donated Intellectual Property. Penalty for filing taxes late Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Penalty for filing taxes late Publication 561 contains a more complete discussion. Penalty for filing taxes late 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. Penalty for filing taxes late Used clothing. Penalty for filing taxes late   The fair market value of used clothing and other personal items is usually far less than the price you paid for them. Penalty for filing taxes late There are no fixed formulas or methods for finding the value of items of clothing. Penalty for filing taxes late   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. Penalty for filing taxes late      Also see Clothing and Household Items , earlier. Penalty for filing taxes late Example. Penalty for filing taxes late    Kristin donated a coat to a thrift store operated by her church. Penalty for filing taxes late She paid $300 for the coat 3 years ago. Penalty for filing taxes late Similar coats in the thrift store sell for $50. Penalty for filing taxes late The fair market value of the coat is $50. Penalty for filing taxes late Kristin's donation is limited to $50. Penalty for filing taxes late Household items. Penalty for filing taxes late   The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. Penalty for filing taxes late These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. Penalty for filing taxes late For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value. Penalty for filing taxes late   You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Penalty for filing taxes late Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Penalty for filing taxes late Do not include any of this evidence with your tax return. Penalty for filing taxes late   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. Penalty for filing taxes late   Also see Clothing and Household Items , earlier. Penalty for filing taxes late Cars, boats, and airplanes. Penalty for filing taxes late   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Penalty for filing taxes late Boats. Penalty for filing taxes late   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. Penalty for filing taxes late Cars. Penalty for filing taxes late   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. Penalty for filing taxes late The guides may be published monthly or seasonally, and for different regions of the country. Penalty for filing taxes late These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Penalty for filing taxes late The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Penalty for filing taxes late But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Penalty for filing taxes late   These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. Penalty for filing taxes late You can also find used car pricing information on the Internet. Penalty for filing taxes late   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. Penalty for filing taxes late However, the fair market value may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. Penalty for filing taxes late 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. Penalty for filing taxes late Example. Penalty for filing taxes late You donate a used car in poor condition to a local high school for use by students studying car repair. Penalty for filing taxes late A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Penalty for filing taxes late However, the guide shows the price for a private party sale of the car is only $750. Penalty for filing taxes late The fair market value of the car is considered to be $750. Penalty for filing taxes late Large quantities. Penalty for filing taxes late   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. Penalty for filing taxes late Example. Penalty for filing taxes late You purchase 500 bibles for $1,000. Penalty for filing taxes late The person who sells them to you says the retail value of these bibles is $3,000. Penalty for filing taxes late 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. Penalty for filing taxes late Your charitable contribution is $1,000, unless you can show that similar numbers of that bible wer