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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Tax 2010

Amended Tax Returns1040zTax Act 2011 Free DownloadNeed To File My 2011 TaxesFreestatetaxreturnFree Tax Filing 20121040nr Online FilingOnline 1040ezTaxact 2011 Returning User1040nr FormFederal Income Tax Forms 1040ezHow To File A 1040x Form To The Irs10 Ez FormFree Military Tax Filing2011 Tax Return Form 1040How To File 1040 Ez Form OnlineFile 2011 Tax Return Online For Free1040ez2011H&r Block At HomeHand R Block OnlineH&r Block 1040ezFile Taxes IncomeFederal Tax Forms 2012Turbotax 2009 Download FreeArmy Free Turbo TaxAmmend Tax ReturnIrs Form 990 Ez 20101040ez Tax TableFree Irs Tax Filing1040x Tax ReturnWhere Can I File My 2011 Taxes For FreeFile An AmendmentFree Website For Filing State TaxesHow To File Amended ReturnMilitary Tax DeductionDo My State Tax For Free2011 Taxes Free OnlineFederal Tax Form 1040ezFederal Tax Ez Form 2011How Can I File My 2010 Taxes For Free

Tax 2010

Tax 2010 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. Tax 2010 Text message. Tax 2010 Credit card. Tax 2010 Pay-by-phone account. Tax 2010 Stock certificate. Tax 2010 Promissory note. Tax 2010 Option. Tax 2010 Borrowed funds. Tax 2010 Conditional gift. Tax 2010 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. Tax 2010 Total deduction over $500. Tax 2010 Deduction over $5,000 for one item. Tax 2010 Vehicle donations. Tax 2010 Clothing and household items not in good used condition. Tax 2010 Easement on building in historic district. Tax 2010 Deduction over $500,000. Tax 2010 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. Tax 2010 Most organizations, other than churches and governments, must apply to the IRS to become a qualified organization. Tax 2010 How to check whether an organization can receive deductible charitable contributions. Tax 2010   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Tax 2010 Or go to IRS. Tax 2010 gov. Tax 2010 Click on “Tools” and then on “Exempt Organizations Select Check” (www. Tax 2010 irs. Tax 2010 gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Tax 2010 This online tool will enable you to search for qualified organizations. Tax 2010 You can also call the IRS to find out if an organization is qualified. Tax 2010 Call 1-877-829-5500. Tax 2010 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. Tax 2010 Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Tax 2010 gsa. Tax 2010 gov/fedrelay. Tax 2010 Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Tax 2010 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). Tax 2010 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. Tax 2010 Certain organizations that foster national or international amateur sports competition also qualify. Tax 2010 War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Tax 2010 Domestic fraternal societies, orders, and associations operating under the lodge system. Tax 2010 (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. Tax 2010 ) Certain nonprofit cemetery companies or corporations. Tax 2010 (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. Tax 2010 ) The United States or any state, the District of Columbia, a U. Tax 2010 S. Tax 2010 possession (including Puerto Rico), a political subdivision of a state or U. Tax 2010 S. Tax 2010 possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Tax 2010 (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes. Tax 2010 ) Example 1. Tax 2010 You contribute cash to your city's police department to be used as a reward for information about a crime. Tax 2010 The city police department is a qualified organization, and your contribution is for a public purpose. Tax 2010 You can deduct your contribution. Tax 2010 Example 2. Tax 2010 You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Tax 2010 Because the trust fund is part of the U. Tax 2010 S. Tax 2010 Government, you contributed to a qualified organization. Tax 2010 You can deduct your contribution. Tax 2010 Examples. Tax 2010   The following list gives some examples of qualified organizations. Tax 2010 Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Tax 2010 Most nonprofit charitable organizations such as the American Red Cross and the United Way. Tax 2010 Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Tax 2010 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. Tax 2010 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 . Tax 2010 Nonprofit hospitals and medical research organizations. Tax 2010 Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Tax 2010 Nonprofit volunteer fire companies. Tax 2010 Nonprofit organizations that develop and maintain public parks and recreation facilities. Tax 2010 Civil defense organizations. Tax 2010 Canadian charities. Tax 2010   You may be able to deduct contributions to certain Canadian charitable organizations covered under an income tax treaty with Canada. Tax 2010 To deduct your contribution to a Canadian charity, you generally must have income from sources in Canada. Tax 2010 See Publication 597, Information on the United States-Canada Income Tax Treaty, for information on how to figure your deduction. Tax 2010 Mexican charities. Tax 2010   Under the U. Tax 2010 S. Tax 2010 -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. Tax 2010 S. Tax 2010 law. Tax 2010 To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. Tax 2010 The limits described in Limits on Deductions , later, apply and are figured using your income from Mexican sources. Tax 2010 Israeli charities. Tax 2010   Under the U. Tax 2010 S. Tax 2010 -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. Tax 2010 S. Tax 2010 law. Tax 2010 To deduct your contribution to an Israeli charity, you must have income from sources in Israel. Tax 2010 The limits described in Limits on Deductions , later, apply. Tax 2010 The deduction is also limited to 25% of your adjusted gross income from Israeli sources. Tax 2010 Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Tax 2010 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. Tax 2010 The contributions must be made to a qualified organization and not set aside for use by a specific person. Tax 2010 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. Tax 2010 See Contributions of Property , later. Tax 2010 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. Tax 2010 In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited. Tax 2010 See Limits on Deductions , later. Tax 2010 Table 1 in this publication gives examples of contributions you can and cannot deduct. Tax 2010 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. Tax 2010 Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Tax 2010 If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Tax 2010 For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Tax 2010 Example 1. Tax 2010 You pay $65 for a ticket to a dinner-dance at a church. Tax 2010 Your entire $65 payment goes to the church. Tax 2010 The ticket to the dinner-dance has a fair market value of $25. Tax 2010 When you buy your ticket, you know its value is less than your payment. Tax 2010 To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Tax 2010 You can deduct $40 as a charitable contribution to the church. Tax 2010 Example 2. Tax 2010 At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Tax 2010 The amount you pay is no more than the fair rental value. Tax 2010 You have not made a deductible charitable contribution. Tax 2010 Athletic events. Tax 2010   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. Tax 2010   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Tax 2010 Subtract the price of the tickets from your payment. Tax 2010 You can deduct 80% of the remaining amount as a charitable contribution. Tax 2010 Example 1. Tax 2010 You pay $300 a year for membership in a university's athletic scholarship program. Tax 2010 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. Tax 2010 You can deduct $240 (80% of $300) as a charitable contribution. Tax 2010 Example 2. Tax 2010 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. Tax 2010 You must subtract the usual price of a ticket ($120) from your $300 payment. Tax 2010 The result is $180. Tax 2010 Your deductible charitable contribution is $144 (80% of $180). Tax 2010 Charity benefit events. Tax 2010   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. Tax 2010   If there is an established charge for the event, that charge is the value of your benefit. Tax 2010 If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Tax 2010 Whether you use the tickets or other privileges has no effect on the amount you can deduct. Tax 2010 However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Tax 2010    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. Tax 2010 If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Tax 2010 Example. Tax 2010 You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Tax 2010 Printed on the ticket is “Contribution–$40. Tax 2010 ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Tax 2010 Membership fees or dues. Tax 2010   You may be able to deduct membership fees or dues you pay to a qualified organization. Tax 2010 However, you can deduct only the amount that is more than the value of the benefits you receive. Tax 2010   You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Tax 2010 They are not qualified organizations. Tax 2010 Certain membership benefits can be disregarded. Tax 2010   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. Tax 2010 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. Tax 2010 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. Tax 2010 20. Tax 2010 Token items. Tax 2010   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Tax 2010 You receive only a small item or other benefit of token value. Tax 2010 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. Tax 2010 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. Tax 2010 Written statement. Tax 2010   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. Tax 2010 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. Tax 2010 It must also give you a good faith estimate of the value of those goods or services. Tax 2010   The organization can give you the statement either when it solicits or when it receives the payment from you. Tax 2010 Exception. Tax 2010   An organization will not have to give you this statement if one of the following is true. Tax 2010 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. Tax 2010 You receive only items whose value is not substantial as described under Token items , earlier. Tax 2010 You receive only membership benefits that can be disregarded, as described under Membership fees or dues , earlier. Tax 2010 Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Tax 2010 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. Tax 2010 You can deduct up to $50 a month for each full calendar month the student lives with you. Tax 2010 Any month when conditions (1) through (3) above are met for 15 or more days counts as a full month. Tax 2010 Qualified organization. Tax 2010   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). Tax 2010 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. Tax 2010 But see Foster parents under Out-of-Pocket Expenses in Giving Services, later, if you provide the home as a foster parent. Tax 2010 Relative. Tax 2010   The term “relative” means any of the following persons. Tax 2010 Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Tax 2010 A legally adopted child is considered your child. Tax 2010 Your brother, sister, half brother, half sister, stepbrother, or stepsister. Tax 2010 Your father, mother, grandparent, or other direct ancestor. Tax 2010 Your stepfather or stepmother. Tax 2010 A son or daughter of your brother or sister. Tax 2010 A brother or sister of your father or mother. Tax 2010 Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Tax 2010 Dependent. Tax 2010   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. Tax 2010    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. Tax 2010 S. Tax 2010 residents and cannot be claimed as dependents. Tax 2010 Qualifying expenses. Tax 2010   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. Tax 2010 Expenses that do not qualify. Tax 2010   You cannot deduct depreciation on your home, the fair market value of lodging, and similar items not considered amounts actually spent by you. Tax 2010 Nor can you deduct general household expenses, such as taxes, insurance, and repairs. Tax 2010 Reimbursed expenses. Tax 2010   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. Tax 2010 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. Tax 2010 Mutual exchange program. Tax 2010   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. Tax 2010 Reporting expenses. Tax 2010   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. Tax 2010 Out-of-Pocket Expenses in Giving Services Table 2. Tax 2010 Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Tax 2010 All of the rules explained in this publication also apply. Tax 2010 See, in particular, Out-of-Pocket Expenses in Giving Services . Tax 2010 Question Answer I volunteer 6 hours a week in the office of a qualified organization. Tax 2010 The receptionist is paid $10 an hour for the same work. Tax 2010 Can I deduct $60 a week for my time? No, you cannot deduct the value of your time or services. Tax 2010  The office is 30 miles from my home. Tax 2010 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. Tax 2010 If you do not want to figure your actual costs, you can deduct 14 cents for each mile. Tax 2010 I volunteer as a Red Cross nurse's aide at a hospital. Tax 2010 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. Tax 2010 I pay a babysitter to watch my children while I volunteer for a qualified organization. Tax 2010 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. Tax 2010 (If you have childcare expenses so you can work for pay, see Publication 503, Child and Dependent Care Expenses. Tax 2010 ) 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. Tax 2010 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. Tax 2010 Table 2 contains questions and answers that apply to some individuals who volunteer their services. Tax 2010 Underprivileged youths selected by charity. Tax 2010   You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow underprivileged youths to attend athletic events, movies, or dinners. Tax 2010 The youths must be selected by a charitable organization whose goal is to reduce juvenile delinquency. Tax 2010 Your own similar expenses in accompanying the youths are not deductible. Tax 2010 Conventions. Tax 2010   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. Tax 2010 However, see Travel , later. Tax 2010   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Tax 2010 You also cannot deduct travel, meals and lodging, and other expenses for your spouse or children. Tax 2010   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. Tax 2010 You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Tax 2010 Uniforms. Tax 2010   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. Tax 2010 Foster parents. Tax 2010   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. Tax 2010 A qualified organization must select the individuals you take into your home for foster care. Tax 2010   You can deduct expenses that meet both of the following requirements. Tax 2010 They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Tax 2010 They are incurred primarily to benefit the qualified organization. Tax 2010   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. Tax 2010 For details, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Tax 2010 Example. Tax 2010 You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Tax 2010 Your unreimbursed expenses are not deductible as charitable contributions. Tax 2010 Church deacon. Tax 2010   You can deduct as a charitable contribution any unreimbursed expenses you have while in a permanent diaconate program established by your church. Tax 2010 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. Tax 2010 Car expenses. Tax 2010   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. Tax 2010 You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Tax 2010   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. Tax 2010   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Tax 2010   You must keep reliable written records of your car expenses. Tax 2010 For more information, see Car expenses under Records To Keep, later. Tax 2010 Travel. Tax 2010   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. Tax 2010 This applies whether you pay the expenses directly or indirectly. Tax 2010 You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Tax 2010   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Tax 2010 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. Tax 2010 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. Tax 2010 Example 1. Tax 2010 You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Tax 2010 You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Tax 2010 You participate in the activities of the group and enjoy your time with them. Tax 2010 You oversee the breaking of camp and you transport the group home. Tax 2010 You can deduct your travel expenses. Tax 2010 Example 2. Tax 2010 You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Tax 2010 The project is sponsored by a charitable organization. Tax 2010 In most circumstances, you cannot deduct your expenses. Tax 2010 Example 3. Tax 2010 You work for several hours each morning on an archeological dig sponsored by a charitable organization. Tax 2010 The rest of the day is free for recreation and sightseeing. Tax 2010 You cannot take a charitable contribution deduction even though you work very hard during those few hours. Tax 2010 Example 4. Tax 2010 You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Tax 2010 In the evening you go to the theater. Tax 2010 You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Tax 2010 Daily allowance (per diem). Tax 2010   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. Tax 2010 You may be able to deduct any necessary travel expenses that are more than the allowance. Tax 2010 Deductible travel expenses. Tax 2010   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. Tax 2010 Because these travel expenses are not business-related, they are not subject to the same limits as business related expenses. Tax 2010 For information on business travel expenses, see Travel in Publication 463, Travel, Entertainment, Gift, and Car Expenses. Tax 2010 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. Tax 2010 The deduction is limited to $10,000 a year. Tax 2010 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. Tax 2010 Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission. Tax 2010 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. Tax 2010 You must keep records showing the time, place, date, amount, and nature of the expenses. Tax 2010 For details, see Revenue Procedure 2006-50, which is on page 944 of Internal Revenue Bulletin 2006-47 at www. Tax 2010 irs. Tax 2010 gov/pub/irs-irbs/irb06-47. Tax 2010 pdf. Tax 2010 Contributions You Cannot Deduct There are some contributions you cannot deduct and others you can deduct only in part. Tax 2010 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. Tax 2010 Detailed discussions of these items follow. Tax 2010 Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Tax 2010 Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members. Tax 2010 Contributions to individuals who are needy or worthy. Tax 2010 You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Tax 2010 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. Tax 2010 Example. Tax 2010 You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Tax 2010 However, you cannot deduct contributions earmarked for relief of a particular individual or family. Tax 2010 Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Tax 2010 Expenses you paid for another person who provided services to a qualified organization. Tax 2010 Example. Tax 2010 Your son does missionary work. Tax 2010 You pay his expenses. Tax 2010 You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Tax 2010 Payments to a hospital that are for a specific patient's care or for services for a specific patient. Tax 2010 You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization. Tax 2010 Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Tax 2010 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. Tax 2010 Chambers of commerce and other business leagues or organizations. Tax 2010 Civic leagues and associations. Tax 2010 Communist organizations. Tax 2010 Country clubs and other social clubs. Tax 2010 Foreign organizations other than certain Canadian, Israeli, or Mexican charitable organizations. Tax 2010 (See Canadian charities , Mexican charities , and Israeli charities under Organizations That Qualify To Receive Deductible Contributions, earlier. Tax 2010 ) Also, you cannot deduct a contribution you made to any qualifying organization if the contribution is earmarked to go to a foreign organization. Tax 2010 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. Tax 2010 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. Tax 2010 The contribution is also deductible if the foreign charity is only an administrative arm of the qualified organization. Tax 2010 Homeowners' associations. Tax 2010 Labor unions. Tax 2010 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). Tax 2010 See Publication 529, Miscellaneous Deductions. Tax 2010 Political organizations and candidates. Tax 2010 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. Tax 2010 See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Tax 2010 These contributions include the following. Tax 2010 Contributions for lobbying. Tax 2010 This includes amounts you earmark for use in, or in connection with, influencing specific legislation. Tax 2010 Contributions to a retirement home for room, board, maintenance, or admittance. Tax 2010 Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Tax 2010 Costs of raffles, bingo, lottery, etc. Tax 2010 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. Tax 2010 For information on how to report gambling winnings and losses, see Deductions Not Subject to the 2% Limit in Publication 529. Tax 2010 Dues to fraternal orders and similar groups. Tax 2010 However, see Membership fees or dues under Contributions From Which You Benefit, earlier. Tax 2010 Tuition, or amounts you pay instead of tuition. Tax 2010 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. Tax 2010 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. Tax 2010 ” Contributions connected with split-dollar insurance arrangements. Tax 2010 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. Tax 2010 Example. Tax 2010 You donate money to a charitable organization. Tax 2010 The charity uses the money to purchase a cash value life insurance policy. Tax 2010 The beneficiaries under the insurance policy include members of your family. Tax 2010 Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation. Tax 2010 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. Tax 2010 You must have been at least age 70½ when the distribution was made. Tax 2010 Your total QCDs for the year cannot be more than $100,000. Tax 2010 If all the requirements are met, a QCD is nontaxable, but you cannot claim a charitable contribution deduction for a QCD. Tax 2010 See Publication 590, Individual Retirement Arrangements (IRAs), for more information about QCDs. Tax 2010 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. Tax 2010 Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Tax 2010 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. Tax 2010 Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. Tax 2010 However, you may be able to claim a tax credit for these expenses. Tax 2010 Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. Tax 2010 See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. Tax 2010 You also may be able to claim an exemption for the child. Tax 2010 See Exemptions for Dependents in Publication 501 for more information. Tax 2010 Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property. Tax 2010 But you can claim them, subject to the 2%-of-adjusted-gross-income limit, as a miscellaneous itemized deduction on Schedule A (Form 1040). Tax 2010 See Deductions Subject to the 2% Limit in Publication 529 for more information. Tax 2010 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. Tax 2010 There are also other circumstances in which you cannot deduct your contribution to a donor-advised fund. Tax 2010 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. Tax 2010 For details, see Internal Revenue Code section 170(f)(18). Tax 2010 Partial Interest in Property Generally, you cannot deduct a contribution of less than your entire interest in property. Tax 2010 For details, see Partial Interest in Property under Contributions of Property, later. Tax 2010 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. Tax 2010 However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Tax 2010 See Giving Property That Has Increased in Value , later. Tax 2010 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. Tax 2010 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. Tax 2010 These special rules are described next. Tax 2010 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. Tax 2010 Exception. Tax 2010   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. Tax 2010 Household items. Tax 2010   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Tax 2010   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Tax 2010 Fair market value. Tax 2010   To determine the fair market value of these items, use the rules under Determining Fair Market Value , later. Tax 2010 Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. Tax 2010 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. Tax 2010 Deduction more than $500. Tax 2010   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. Tax 2010 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. Tax 2010 Form 1098-C. Tax 2010   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. Tax 2010 The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Tax 2010   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453, U. Tax 2010 S. Tax 2010 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. Tax 2010   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Tax 2010    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Tax 2010 But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Tax 2010 Filing deadline approaching and still no Form 1098-C. Tax 2010   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Tax 2010 Request an automatic 6-month extension of time to file your return. Tax 2010 You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U. Tax 2010 S. Tax 2010 Individual Income Tax Return. Tax 2010 For more information, see the instructions for Form 4868. Tax 2010 File the return on time without claiming the deduction for the qualified vehicle. Tax 2010 After receiving the Form 1098-C, file an amended return, Form 1040X, Amended U. Tax 2010 S. Tax 2010 Individual Income Tax Return, claiming the deduction. Tax 2010 Attach Copy B of Form 1098-C (or other statement) to the amended return. Tax 2010 Exceptions. Tax 2010   There are two exceptions to the rules just described for deductions of more than $500. Tax 2010 Exception 1—vehicle used or improved by organization. Tax 2010   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. Tax 2010 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. Tax 2010 The Form 1098-C (or other statement) will show whether this exception applies. Tax 2010    Exception 2—vehicle given or sold to needy individual. Tax 2010   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. Tax 2010 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. Tax 2010 The Form 1098-C (or other statement) will show whether this exception applies. Tax 2010   This exception does not apply if the organization sells the vehicle at auction. Tax 2010 In that case, you cannot deduct the vehicle's fair market value. Tax 2010 Example. Tax 2010 Anita donates a used car to a qualified organization. Tax 2010 She bought it 3 years ago for $9,000. Tax 2010 A used car guide shows the fair market value for this type of car is $6,000. Tax 2010 However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Tax 2010 Neither exception 1 nor exception 2 applies. Tax 2010 If Anita itemizes her deductions, she can deduct $2,900 for her donation. Tax 2010 She must attach Form 1098-C and Form 8283 to her return. Tax 2010 Deduction $500 or less. Tax 2010   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. Tax 2010 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. Tax 2010   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. Tax 2010 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. Tax 2010 Fair market value. Tax 2010   To determine a vehicle's fair market value, use the rules described under Determining Fair Market Value , later. Tax 2010 Donations of inventory. Tax 2010   The vehicle donation rules just described do not apply to donations of inventory. Tax 2010 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. Tax 2010 See Inventory , later. Tax 2010 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. Tax 2010 This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property. Tax 2010 Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Tax 2010 Your basis does not include transportation or travel costs. Tax 2010 It also does not include the direct or indirect costs for hunting or killing an animal, such as equipment costs. Tax 2010 In addition, it does not include the value of your time. Tax 2010 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. Tax 2010 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. Tax 2010 This prevents you from deducting the same amount as both investment interest and a charitable contribution. Tax 2010 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. Tax 2010 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). Tax 2010 For more information, see Bargain Sales under Giving Property That Has Increased in Value, later. Tax 2010 Partial Interest in Property Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Tax 2010 Right to use property. Tax 2010   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Tax 2010 Example 1. Tax 2010 You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Tax 2010 Because you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution. Tax 2010 Example 2. Tax 2010 Mandy White owns a vacation home at the beach that she sometimes rents to others. Tax 2010 For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. Tax 2010 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. Tax 2010 Mandy cannot claim a deduction because of the partial interest rule. Tax 2010 Lauren cannot claim a deduction either, because she received a benefit equal to the amount of her payment. Tax 2010 See Contributions From Which You Benefit , earlier. Tax 2010 Exceptions. Tax 2010   You can deduct a charitable contribution of a partial interest in property only if that interest represents one of the following items. Tax 2010 A remainder interest in your personal home or farm. Tax 2010 A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property. Tax 2010 Example. Tax 2010 You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death. Tax 2010 You can deduct the value of the remainder interest. Tax 2010 An undivided part of your entire interest. Tax 2010 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. Tax 2010 But see Fractional Interest in Tangible Personal Property , later. Tax 2010 Example. Tax 2010 You contribute voting stock to a qualified organization but keep the right to vote the stock. Tax 2010 The right to vote is a substantial right in the stock. Tax 2010 You have not contributed an undivided part of your entire interest and cannot deduct your contribution. Tax 2010 A partial interest that would be deductible if transferred to certain types of trusts. Tax 2010 A qualified conservation contribution (defined later). Tax 2010 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. Tax 2010 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. Tax 2010 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. Tax 2010 Tangible personal property is defined later under Future Interest in Tangible Personal Property . Tax 2010 A fractional interest in property is an undivided portion of your entire interest in the property. Tax 2010 Example. Tax 2010 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. Tax 2010 Recapture of deduction. Tax 2010   You must recapture your charitable contribution deduction by including it in your income if both of the following statements are true. Tax 2010 You contributed a fractional interest in tangible personal property after August 17, 2006. Tax 2010 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. Tax 2010   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. Tax 2010 Additional tax. Tax 2010   If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount recaptured. Tax 2010 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. Tax 2010 Qualified organization. Tax 2010   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. Tax 2010 The organization also must have a commitment to protect the conservation purposes of the donation and must have the resources to enforce the restrictions. Tax 2010   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. Tax 2010 Qualified real property interest. Tax 2010   This is any of the following interests in real property. Tax 2010 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). Tax 2010 A remainder interest. Tax 2010 A restriction (granted in perpetuity) on the use that may be made of the real property. Tax 2010 Conservation purposes. Tax 2010   Your contribution must be made only for one of the following conservation purposes. Tax 2010 Preserving land areas for outdoor recreation by, or for the education of, the general public. Tax 2010 Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosystem. Tax 2010 Preserving open space, including farmland and forest land, if it yields a significant public benefit. Tax 2010 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. Tax 2010 Preserving a historically important land area or a certified historic structure. Tax 2010 Building in registered historic district. Tax 2010   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. Tax 2010 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. Tax 2010 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. Tax 2010 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. Tax 2010   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. Tax 2010 For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). Tax 2010   If you claim a deduction of more than $10,000, your deduction will not be allowed unless you pay a $500 filing fee. Tax 2010 See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. Tax 2010 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). Tax 2010 See Deductions Subject to the 2% Limit in Publication 529 for more information. Tax 2010 More information. Tax 2010   For information about determining the fair market value of qualified conservation contributions, see Publication 561. Tax 2010 For information about the limits that apply to deductions for this type of contribution, see Limits on Deductions , later. Tax 2010 For more information about qualified conservation contributions, see Regulations section 1. Tax 2010 170A-14. Tax 2010 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. Tax 2010 But see Fractional Interest in Tangible Personal Property , earlier, and Tangible personal property put to unrelated use , later. Tax 2010 Related persons include your spouse, children, grandchildren, brothers, sisters, and parents. Tax 2010 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. Tax 2010 Tangible personal property. Tax 2010   This is any property, other than land or buildings, that can be seen or touched. Tax 2010 It includes furniture, books, jewelry, paintings, and cars. Tax 2010 Future interest. Tax 2010   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. Tax 2010 Example. Tax 2010 You own an antique car that you contribute to a museum. Tax 2010 You give up ownership, but retain the right to keep the car in your garage with your personal collection. Tax 2010 Because you keep an interest in the property, you cannot deduct the contribution. Tax 2010 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. Tax 2010 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. Tax 2010 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. Tax 2010 You must remove the amount of your charitable contribution deduction from your opening inventory. Tax 2010 It is not part of the cost of goods sold. Tax 2010 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. Tax 2010 Treat the inventory's cost as you would ordinarily treat it under your method of accounting. Tax 2010 For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. Tax 2010 A special rule applies to certain donations of food inventory. Tax 2010 See Food Inventory, later. Tax 2010 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. Tax 2010 Intellectual property means any of the following: Patents. Tax 2010 Copyrights (other than a copyright described in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)). Tax 2010 Trademarks. Tax 2010 Trade names. Tax 2010 Trade secrets. Tax 2010 Know-how. Tax 2010 Software (other than software described in Internal Revenue Code section 197(e)(3)(A)(i)). Tax 2010 Other similar property or applications or registrations of such property. Tax 2010 Additional deduction based on income. Tax 2010   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. Tax 2010   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. Tax 2010 In the table, “tax year 1,” for example, means your first tax year ending on or after the date of the contribution. Tax 2010 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. Tax 2010   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. Tax 2010 The additional deductions cannot be taken for intellectual property donated to certain private foundations. Tax 2010 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. Tax 2010   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. Tax 2010   The organization is required to file an information return showing the income from the property, with a copy to you. Tax 2010 This is done on Form 8899, Notice of Income From Donated Intellectual Property. Tax 2010 Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Tax 2010 Publication 561 contains a more complete discussion. Tax 2010 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. Tax 2010 Used clothing. Tax 2010   The fair market value of used clothing and other personal items is usually far less than the price you paid for them. Tax 2010 There are no fixed formulas or methods for finding the value of items of clothing. Tax 2010   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. Tax 2010      Also see Clothing and Household Items , earlier. Tax 2010 Example. Tax 2010    Kristin donated a coat to a thrift store operated by her church. Tax 2010 She paid $300 for the coat 3 years ago. Tax 2010 Similar coats in the thrift store sell for $50. Tax 2010 The fair market value of the coat is $50. Tax 2010 Kristin's donation is limited to $50. Tax 2010 Household items. Tax 2010   The fair market value of used household items, such as furniture, appliances, and linens, is usually much lower than the price paid when new. Tax 2010 These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. Tax 2010 For these reasons, formulas (such as using a percentage of the cost to buy a new replacement item) are not acceptable in determining value. Tax 2010   You should support your valuation with photographs, canceled checks, receipts from your purchase of the items, or other evidence. Tax 2010 Magazine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Tax 2010 Do not include any of this evidence with your tax return. Tax 2010   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. Tax 2010   Also see Clothing and Household Items , earlier. Tax 2010 Cars, boats, and airplanes. Tax 2010   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Tax 2010 Boats. Tax 2010   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. Tax 2010 Cars. Tax 2010   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. Tax 2010 The guides may be published monthly or seasonally, and for different regions of the country. Tax 2010 These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Tax 2010 The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Tax 2010 But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Tax 2010   These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. Tax 2010 You can also find used car pricing information on the Internet. Tax 2010   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. Tax 2010 However, the fair market value may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. Tax 2010 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. Tax 2010 Example. Tax 2010 You donate a used car in poor condition to a local high school for use by students studying car repair. Tax 2010 A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Tax 2010 However, the guide shows the price for a private party sale of the car is only $750. Tax 2010 The fair market value of the car is considered to be $750. Tax 2010 Large quantities. Tax 2010   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. Tax 2010 Example. Tax 2010 You purchase 500 bibles for $1,000. Tax 2010 The person who sells them to you says the retail value of these bibles is $3,000. Tax 2010 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. Tax 2010 Your charitable contribution is $1,000, unless you can show that similar numbers of that bible wer
Español

A-Z Index of U.S. Government Departments and Agencies

The Tax 2010

Tax 2010 Publication 521 - Main Content Table of Contents Who Can Deduct Moving ExpensesMove Related to Start of Work Distance Test Time Test Retirees or Survivors Who Move to the United States Deductible Moving ExpensesMoves to Locations in the United States Moves to Locations Outside the United States Nondeductible Expenses ReimbursementsTypes of Reimbursement Plans Tax Withholding and Estimated Tax How and When To ReportForm 3903 When To Deduct Expenses Illustrated Example Members of the Armed Forces How To Get Tax Help Who Can Deduct Moving Expenses You can deduct your moving expenses if you meet all three of the following requirements. Tax 2010 Your move is closely related to the start of work. Tax 2010 You meet the distance test. Tax 2010 You meet the time test. Tax 2010 After you have read these rules, you may want to use Figure B to help you decide if you can deduct your moving expenses. Tax 2010 Retirees, survivors, and Armed Forces members. Tax 2010   Different rules may apply if you are a member of the Armed Forces or a retiree or survivor moving to the United States. Tax 2010 These rules are discussed later in this publication. Tax 2010 Move Related to Start of Work Your move must be closely related, both in time and in place, to the start of work at your new job location. Tax 2010 Closely related in time. Tax 2010   In most cases, you can consider moving expenses incurred within 1 year from the date you first reported to work at the new location as closely related in time to the start of work. Tax 2010 It is not necessary that you arrange to work before moving to a new location, as long as you actually go to work in that location. Tax 2010    Figure A. Tax 2010 Illustration of Distance Test Please click here for the text description of the image. Tax 2010 Figure A   If you do not move within 1 year of the date you begin work, you ordinarily cannot deduct the expenses unless you can show that circumstances existed that prevented the move within that time. Tax 2010 Example. Tax 2010 Your family moved more than a year after you started work at a new location. Tax 2010 You delayed the move for 18 months to allow your child to complete high school. Tax 2010 You can deduct your moving expenses. Tax 2010 Closely related in place. Tax 2010   You can generally consider your move closely related in place to the start of work if the distance from your new home to the new job location is not more than the distance from your former home to the new job location. Tax 2010 If your move does not meet this requirement, you may still be able to deduct moving expenses if you can show that: You are required to live at your new home as a condition of your employment, or You will spend less time or money commuting from your new home to your new job location. Tax 2010 Home defined. Tax 2010   Your home means your main home (residence). Tax 2010 It can be a house, apartment, condominium, houseboat, house trailer, or similar dwelling. Tax 2010 It does not include other homes owned or kept up by you or members of your family. Tax 2010 It also does not include a seasonal home, such as a summer beach cottage. Tax 2010 Your former home means your home before you left for your new job location. Tax 2010 Your new home means your home within the area of your new job location. Tax 2010 Retirees or survivors. Tax 2010   You may be able to deduct the expenses of moving to the United States or its possessions even though the move is not related to the start of work at a new job location. Tax 2010 You must have worked outside the United States or be a survivor of someone who did. Tax 2010 See Retirees or Survivors Who Move to the United States, later. Tax 2010 Distance Test Your move will meet the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home. Tax 2010 For example, if your old main job location was 3 miles from your former home, your new main job location must be at least 53 miles from that former home. Tax 2010 You can use Worksheet 1 to see if you meet this test. Tax 2010 Worksheet 1. Tax 2010 Distance Test   Note. Tax 2010 Members of the Armed Forces may not have to meet this test. Tax 2010 See Members of the Armed Forces. Tax 2010     1. Tax 2010 Enter the number of miles from your old home to your new workplace 1. Tax 2010 miles 2. Tax 2010 Enter the number of miles from your old home to your old workplace 2. Tax 2010 miles 3. Tax 2010 Subtract line 2 from line 1. Tax 2010 If zero or less, enter -0- 3. Tax 2010 miles 4. Tax 2010 Is line 3 at least 50 miles? □ Yes. Tax 2010 You meet this test. Tax 2010  □ No. Tax 2010 You do not meet this test. Tax 2010 You cannot deduct your moving expenses. Tax 2010 The distance between a job location and your home is the shortest of the more commonly traveled routes between them. Tax 2010 The distance test considers only the location of your former home. Tax 2010 It does not take into account the location of your new home. Tax 2010 See Figure A, earlier. Tax 2010 Example. Tax 2010 You moved to a new home less than 50 miles from your former home because you changed main job locations. Tax 2010 Your old main job location was 3 miles from your former home. Tax 2010 Your new main job location is 60 miles from that home. Tax 2010 Because your new main job location is 57 miles farther from your former home than the distance from your former home to your old main job location, you meet the distance test. Tax 2010 First job or return to full-time work. Tax 2010   If you go to work full time for the first time, your place of work must be at least 50 miles from your former home to meet the distance test. Tax 2010   If you go back to full-time work after a substantial period of part-time work or unemployment, your place of work also must be at least 50 miles from your former home. Tax 2010 Armed Forces. Tax 2010   If you are in the Armed Forces and you moved because of a permanent change of station, you do not have to meet the distance test. Tax 2010 See Members of the Armed Forces, later. Tax 2010 Main job location. Tax 2010   Your main job location is usually the place where you spend most of your working time. Tax 2010 This could be your office, plant, store, shop, or other location. Tax 2010 If there is no one place where you spend most of your working time, your main job location is the place where your work is centered, such as where you report for work or are otherwise required to “base” your work. Tax 2010 Union members. Tax 2010   If you work for several employers on a short-term basis and you get work under a union hall system (such as a construction or building trades worker), your main job location is the union hall. Tax 2010 More than one job. Tax 2010   If you have more than one job at any time, your main job location depends on the facts in each case. Tax 2010 The more important factors to be considered are: The total time you spend at each place, The amount of work you do at each place, and How much money you earn at each place. Tax 2010    Table 1. Tax 2010 Satisfying the Time Test for Employees and Self-Employed Persons IF you are. Tax 2010 . Tax 2010 . Tax 2010 THEN you satisfy the time test by meeting the. Tax 2010 . Tax 2010 . Tax 2010 an employee 39-week test for employees. Tax 2010 self-employed 78-week test for self-employed persons. Tax 2010 both self-employed and an employee at the same time 78-week test for a self-employed person or the 39-week  test for an employee. Tax 2010 Your principal place of work  determines which test applies. Tax 2010 both self-employed and an employee, but unable to satisfy the 39-week test for employees 78-week test for self-employed persons. Tax 2010 Time Test To deduct your moving expenses, you also must meet one of the following two time tests. Tax 2010 The time test for employees. Tax 2010 The time test for self-employed persons. Tax 2010 Both of these tests are explained below. Tax 2010 See Table 1, below, for a summary of these tests. Tax 2010 You can deduct your moving expenses before you meet either of the time tests. Tax 2010 See Time Test Not Yet Met, later. Tax 2010 Time Test for Employees If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location (39-week test). Tax 2010 Full-time employment depends on what is usual for your type of work in your area. Tax 2010 For purposes of this test, the following four rules apply. Tax 2010 You count only your full-time work as an employee, not any work you do as a self-employed person. Tax 2010 You do not have to work for the same employer for all 39 weeks. Tax 2010 You do not have to work 39 weeks in a row. Tax 2010 You must work full time within the same general commuting area for all 39 weeks. Tax 2010 Temporary absence from work. Tax 2010   You are considered to have worked full time during any week you are temporarily absent from work because of illness, strikes, lockouts, layoffs, natural disasters, or similar causes. Tax 2010 You are also considered to have worked full time during any week you are absent from work for leave or vacation provided for in your work contract or agreement. Tax 2010 Seasonal work. Tax 2010   If your work is seasonal, you are considered to be working full time during the off-season only if your work contract or agreement covers an off-season period of less than 6 months. Tax 2010 For example, a school teacher on a 12-month contract who teaches on a full-time basis for more than 6 months is considered to have worked full time for the entire 12 months. Tax 2010    Figure B. Tax 2010 Can You Deduct Expenses for a Non-Military Move Within the United States? Please click here for the text description of the image. Tax 2010 Figure B Time Test for Self-Employed Persons If you are self-employed, you must work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you arrive in the general area of your new job location (78-week test). Tax 2010 For purposes of the time test for self-employed persons, the following three rules apply. Tax 2010 You count any full-time work you do either as an employee or as a self-employed person. Tax 2010 You do not have to work for the same employer or be self-employed in the same trade or business for the 78 weeks. Tax 2010 You must work within the same general commuting area for all 78 weeks. Tax 2010 Example. Tax 2010 You are a self-employed accountant who moves from Atlanta to New York City, and begin to work there on December 1, 2013. Tax 2010 You pay moving expenses in 2013 and 2014 in connection with this move. Tax 2010 On April 15, 2014, when you file your income tax return for the year 2013, you have been performing services as a self-employed individual on a full-time basis in New York City for approximately 20 weeks. Tax 2010 Although you have not satisfied the 78-week employment condition at this time, you can deduct your 2013 moving expenses on your 2013 income tax return as there is still sufficient time remaining before December 1, 2015, to satisfy such condition. Tax 2010 You can deduct any moving expenses you pay in 2014 on your 2014 income tax return even if you have not met the 78-week test. Tax 2010 You have until December 1, 2015, to satisfy this requirement. Tax 2010 Self-employment. Tax 2010   You are self-employed if you work as the sole owner of an unincorporated business or as a partner in a partnership carrying on a business. Tax 2010 You are not considered self-employed if you are semi-retired, are a part-time student, or work only a few hours each week. Tax 2010 Full-time work. Tax 2010   You can count only those weeks during which you work full time as a week of work. Tax 2010 Whether you work full time during any week depends on what is usual for your type of work in your area. Tax 2010 For example, you are a self-employed dentist and maintain office hours 4 days a week. Tax 2010 You are considered to perform services full time if maintaining office hours 4 days a week is not unusual for other self-employed dentists in your area. Tax 2010 Temporary absence from work. Tax 2010   You are considered to be self-employed on a full-time basis during any week you are temporarily absent from work because of illness, strikes, natural disasters, or similar causes. Tax 2010 Seasonal trade or business. Tax 2010   If your trade or business is seasonal, the off-season weeks when no work is required or available may be counted as weeks during which you worked full time. Tax 2010 The off-season must be less than 6 months and you must work full time before and after the off-season. Tax 2010 Example. Tax 2010 You own and operate a motel at a beach resort. Tax 2010 The motel is closed for 5 months during the off-season. Tax 2010 You work full time as the operator of the motel before and after the off-season. Tax 2010 You are considered self-employed on a full-time basis during the weeks of the off-season. Tax 2010   If you were both an employee and self-employed, see Table 1 earlier, for the requirements. Tax 2010 Example. Tax 2010 Justin quit his job and moved from the east coast to the west coast to begin a full-time job as a cabinet-maker for C and L Cabinet Shop. Tax 2010 He generally worked at the shop about 40 hours each week. Tax 2010 Shortly after the move, Justin also began operating a cabinet-installation business from his home for several hours each afternoon and all day on weekends. Tax 2010 Because Justin's principal place of business is the cabinet shop, he can satisfy the time test by meeting the 39-week test. Tax 2010    If Justin is unable to satisfy the requirements of the 39-week test during the 12-month period immediately following his arrival in the general location of his new principal place of work, he can satisfy the 78-week test. Tax 2010 Joint Return If you are married, file a joint return, and both you and your spouse work full-time, either of you can satisfy the full-time work test. Tax 2010 However, you cannot add the weeks your spouse worked to the weeks you worked to satisfy that test. Tax 2010 Time Test Not Yet Met You can deduct your moving expenses on your 2013 tax return even though you have not met the time test by the date your 2013 return is due. Tax 2010 You can do this if you expect to meet the 39-week test in 2014 or the 78-week test in 2014 or 2015. Tax 2010 If you do not deduct your moving expenses on your 2013 return, and you later meet the time test, you can file an amended return for 2013 to take the deduction. Tax 2010 See When To Deduct Expenses later, for more details. Tax 2010 Failure to meet the time test. Tax 2010    If you deduct moving expenses but do not meet the time test in 2014 or 2015, you must either: Report your moving expense deduction as other income on your Form 1040 for the year you cannot meet the test, or Use Form 1040X to amend your 2013 return, figuring your tax without the moving expense deduction. Tax 2010 Example. Tax 2010 You arrive in the general area of your new job location, as an employee, on September 15, 2013. Tax 2010 You deduct your moving expenses on your 2013 return, the year of the move, even though you have not yet met the time test by the date your return is due. Tax 2010 If you do not meet the 39-week test during the 12-month period following your arrival in the general area of your new job location, you must either: Report your moving expense deduction as other income on your Form 1040 for 2014, or Use Form 1040X to amend your 2013 return, figuring your tax without the moving expense deduction. Tax 2010 Exceptions to the Time Test You do not have to meet the time test if one of the following applies. Tax 2010 You are in the Armed Forces and you moved because of a permanent change of station. Tax 2010 See Members of the Armed Forces , later. Tax 2010 Your main job location was outside the United States and you moved to the United States because you retired. Tax 2010 See Retirees or Survivors Who Move to the United States, later. Tax 2010 You are the survivor of a person whose main job location at the time of death was outside the United States. Tax 2010 See Retirees or Survivors Who Move to the United States, later. Tax 2010 Your job at the new location ends because of death or disability. Tax 2010 You are transferred for your employer's benefit or laid off for a reason other than willful misconduct. Tax 2010 For this exception, you must have obtained full-time employment and you must have expected to meet the test at the time you started the job. Tax 2010 Retirees or Survivors Who Move to the United States If you are a retiree who was working abroad or a survivor of a decedent who was working abroad and you move to the United States or one of its possessions, you do not have to meet the time test, discussed earlier. Tax 2010 However, you must meet the requirements discussed below under Retirees who were working abroad or Survivors of decedents who were working abroad. Tax 2010 If you are living in the United States, retire, and then move and remain retired, you cannot claim a moving expense deduction for that move. Tax 2010 United States defined. Tax 2010   For this section of this publication, the term “United States” includes the possessions of the United States. Tax 2010 Retirees who were working abroad. Tax 2010   You can deduct moving expenses for a move to a new home in the United States when you permanently retire. Tax 2010 However, both your former main job location and your former home must have been outside the United States. Tax 2010 Permanently retired. Tax 2010   You are considered permanently retired when you cease gainful full-time employment or self-employment. Tax 2010 If, at the time you retire, you intend your retirement to be permanent, you will be considered retired even though you later return to work. Tax 2010 Your intention to retire permanently may be determined by: Your age and health, The customary retirement age for people who do similar work, Whether you receive retirement payments from a pension or retirement fund, and The length of time before you return to full-time work. Tax 2010 Decedents. Tax 2010   Qualified deductible moving expenses are allowed on a final return (Form 1040 or 1040NR) when a taxpayer has moved and dies within the same calendar year. Tax 2010 The personal representative filing on behalf of that taxpayer should complete and attach Form 3903 to the final return. Tax 2010   A personal representative can be an executor, administrator, or anyone who is in charge of the deceased person's property. Tax 2010 For more information, see Publication 559, Survivors, Executors, and Administrators. Tax 2010 Survivors of decedents who were working abroad. Tax 2010   If you are the spouse or the dependent of a person whose main job location at the time of death was outside the United States, you can deduct moving expenses if the following five requirements are met. Tax 2010 The move is to a home in the United States. Tax 2010 The move begins within 6 months after the decedent's death. Tax 2010 (When a move begins is described below. Tax 2010 ) The move is from the decedent's former home. Tax 2010 The decedent's former home was outside the United States. Tax 2010 The decedent's former home was also your home. Tax 2010 When a move begins. Tax 2010   A move begins when one of the following events occurs. Tax 2010 You contract for your household goods and personal effects to be moved to your home in the United States, but only if the move is completed within a reasonable time. Tax 2010 Your household goods and personal effects are packed and on the way to your home in the United States. Tax 2010 You leave your former home to travel to your new home in the United States. Tax 2010 Deductible Moving Expenses If you meet the requirements discussed earlier under Who Can Deduct Moving Expenses, you can deduct the reasonable expenses of: Moving your household goods and personal effects (including in-transit or foreign-move storage expenses), and Traveling (including lodging but not meals) to your new home. Tax 2010 You cannot deduct any expenses for meals. Tax 2010 Reasonable expenses. Tax 2010   You can deduct only those expenses that are reasonable for the circumstances of your move. Tax 2010 For example, the cost of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. Tax 2010 If during your trip to your new home, you stop over, or make side trips for sightseeing, the additional expenses for your stopover or side trips are not deductible as moving expenses. Tax 2010 Example. Tax 2010 Beth's employer transferred her from Boston, Massachusetts, to Buffalo, New York. Tax 2010 On her way to Buffalo, Beth drove into Canada to visit the Toronto Zoo. Tax 2010 Since Beth's excursion into Canada was away from the usual Boston-Buffalo route, the expenses paid or incurred for the excursion are not deductible. Tax 2010 Beth can only deduct what it would have cost to drive directly from Boston to Buffalo. Tax 2010 Likewise, Beth cannot deduct any expenses, such as the cost of a hotel room, caused by the delay for sightseeing. Tax 2010 Travel by car. Tax 2010   If you use your car to take yourself, members of your household, or your personal effects to your new home, you can figure your expenses by deducting either: Your actual expenses, such as the amount you pay for gas and oil for your car, if you keep an accurate record of each expense, or The standard mileage rate of 24 cents per mile. Tax 2010 Whether you use actual expenses or the standard mileage rate to figure your expenses, you can deduct the parking fees and tolls you pay to move. Tax 2010 You cannot deduct any part of general repairs, general maintenance, insurance, or depreciation for your car. Tax 2010 Member of your household. Tax 2010   You can deduct moving expenses you pay for yourself and members of your household. Tax 2010 A member of your household is anyone who has both your former and new home as his or her home. Tax 2010 It does not include a tenant or employee, unless that person is your dependent. Tax 2010 Moves to Locations in the United States If you meet the requirements under Who Can Deduct Moving Expenses, earlier, you can deduct expenses for a move to the area of a new main job location within the United States or its possessions. Tax 2010 Your move may be from one U. Tax 2010 S. Tax 2010 location to another or from a foreign country to the United States. Tax 2010 Household goods and personal effects. Tax 2010   You can deduct the cost of packing, crating, and transporting your household goods and personal effects and those of the members of your household from your former home to your new home. Tax 2010 For purposes of moving expenses, the term “personal effects” includes, but is not limited to, movable personal property that the taxpayer owns and frequently uses. Tax 2010   If you use your own car to move your things, see Travel by car, earlier. Tax 2010   You can deduct any costs of connecting or disconnecting utilities required because you are moving your household goods, appliances, or personal effects. Tax 2010   You can deduct the cost of shipping your car and your household pets to your new home. Tax 2010   You can deduct the cost of moving your household goods and personal effects from a place other than your former home. Tax 2010 Your deduction is limited to the amount it would have cost to move them from your former home. Tax 2010 Example. Tax 2010 Paul Brown has been living and working in North Carolina for the last 4 years. Tax 2010 Because he has been renting a small apartment, he stored some furniture at his parents' home in Georgia. Tax 2010 Paul got a job in Washington, DC. Tax 2010 It cost him $900 to move the furniture from his North Carolina apartment to Washington and $3,000 to move the stored furniture from Georgia to Washington. Tax 2010 It would have cost $1,800 to ship the stored furniture from North Carolina to Washington. Tax 2010 He can deduct only $1,800 of the $3,000 he paid. Tax 2010 The amount he can deduct for moving his furniture is $2,700 ($900 + $1,800). Tax 2010 You cannot deduct the cost of moving furniture you buy on the way to your new home. Tax 2010   Storage expenses. Tax 2010   You can include the cost of storing and insuring household goods and personal effects within any period of 30 consecutive days after the day your things are moved from your former home and before they are delivered to your new home. Tax 2010 Travel expenses. Tax 2010   You can deduct the cost of transportation and lodging for yourself and members of your household while traveling from your former home to your new home. Tax 2010 This includes expenses for the day you arrive. Tax 2010    The day of arrival is the day you secure lodging at the new place of residence, even if the lodging is on a temporary basis. Tax 2010   You can include any lodging expenses you had in the area of your former home within one day after you could no longer live in your former home because your furniture had been moved. Tax 2010   The members of your household do not have to travel together or at the same time. Tax 2010 However, you can only deduct expenses for one trip per person. Tax 2010 If you use your own car, see Travel by car, earlier. Tax 2010 Example. Tax 2010   In February 2013, Josh and Robyn Black moved from Minneapolis to Washington, DC, where Josh was starting a new job. Tax 2010 Josh drove the family car to Washington, DC, a trip of 1,100 miles. Tax 2010 His expenses were $264. Tax 2010 00 for mileage (1,100 miles x 24 cents per mile) plus $40 for tolls and $150 for lodging, for a total of $454. Tax 2010 00. Tax 2010 One week later, Robyn flew from Minneapolis to Washington, DC. Tax 2010 Her only expense was her $400 plane ticket. Tax 2010 The Blacks' deduction is $854. Tax 2010 00 (Josh's $454. Tax 2010 00 + Robyn's $400). Tax 2010 Moves to Locations Outside the United States To deduct expenses for a move outside the United States, you must move to the area of a new place of work outside the United States and its possessions. Tax 2010 You must meet the requirements under Who Can Deduct Moving Expenses , earlier. Tax 2010 Deductible expenses. Tax 2010   If your move is to a location outside the United States and its possessions, you can deduct the following expenses. Tax 2010 The cost of moving household goods and personal effects from your former home to your new home. Tax 2010 The cost of traveling (including lodging) from your former home to your new home. Tax 2010 The cost of moving household goods and personal effects to and from storage. Tax 2010 The cost of storing household goods and personal effects while you are at the new job location. Tax 2010 The first two items were explained earlier under Moves to Locations in the United States . Tax 2010 The last two items are discussed, later. Tax 2010 Moving goods and effects to and from storage. Tax 2010   You can deduct the reasonable expenses of moving your personal effects to and from storage. Tax 2010 Storage expenses. Tax 2010   You can deduct the reasonable expenses of storing your household goods and personal effects for all or part of the time the new job location remains your main job location. Tax 2010 Moving expenses allocable to excluded foreign income. Tax 2010   If you live and work outside the United States, you may be able to exclude from income part or all of the income you earn in the foreign country. Tax 2010 You may also be able to claim a foreign housing exclusion or deduction. Tax 2010 If you claim the foreign earned income or foreign housing exclusion, you cannot deduct the part of your moving expenses that relates to the excluded income. Tax 2010    Publication 54, Tax Guide for U. Tax 2010 S. Tax 2010 Citizens and Resident Aliens Abroad, explains how to figure the part of your moving expenses that relates to excluded income. Tax 2010 You can get the publication from most U. Tax 2010 S. Tax 2010 embassies and consulates, or see How To Get Tax Help at the end of this publication. Tax 2010 Nondeductible Expenses You cannot deduct the following items as moving expenses. Tax 2010 Any part of the purchase price of your new home. Tax 2010 Car tags. Tax 2010 Driver's license. Tax 2010 Expenses of buying or selling a home (including closing costs, mortgage fees, and points). Tax 2010 Expenses of entering into or breaking a lease. Tax 2010 Home improvements to help sell your home. Tax 2010 Loss on the sale of your home. Tax 2010 Losses from disposing of memberships in clubs. Tax 2010 Mortgage penalties. Tax 2010 Pre-move househunting expenses. Tax 2010 Real estate taxes. Tax 2010 Refitting of carpet and draperies. Tax 2010 Return trips to your former residence. Tax 2010 Security deposits (including any given up due to the move). Tax 2010 Storage charges except those incurred in transit and for foreign moves. Tax 2010 No double deduction. Tax 2010   You cannot take a moving expense deduction and a business expense deduction for the same expenses. Tax 2010 You must decide if your expenses are deductible as moving expenses or as business expenses. Tax 2010 For example, expenses you have for travel, meals, and lodging while temporarily working at a place away from your regular place of work may be deductible as business expenses if you are considered away from home on business. Tax 2010 In most cases, your work at a single location is considered temporary if it is realistically expected to last (and does in fact last) for one year or less. Tax 2010   See Publication 463, Travel, Entertainment, Gift, and Car Expenses, for information on deducting your business expenses. Tax 2010 Reimbursements This section explains how to report a reimbursement (including advances and allowances) on your tax return. Tax 2010 It covers reimbursements for any of your moving expenses discussed in this publication. Tax 2010 It also explains the types of reimbursements on which your employer must withhold income, social security, and Medicare taxes. Tax 2010 Types of Reimbursement Plans If you receive a reimbursement for your moving expenses, how you report this amount and your expenses depends on whether the reimbursement is paid to you under an accountable plan or a nonaccountable plan. Tax 2010 For a quick overview of how to report your reimbursement and moving expenses, see Table 2 in the section on How and When To Report, later. Tax 2010 Your employer should tell you what method of reimbursement is used and what records are required. Tax 2010 Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. Tax 2010 Your expenses must have a business connection – that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Tax 2010 Two examples of this are the reasonable expenses of moving your possessions from your former home to your new home, and traveling from your former home to your new home. Tax 2010 You must adequately account to your employer for these expenses within a reasonable period of time. Tax 2010 You must return any excess reimbursement or allowance within a reasonable period of time. Tax 2010 Adequate accounting. Tax 2010   You adequately account for your moving expenses by giving your employer documentation of those expenses, such as a statement of expense, an account book, a diary, or a similar record in which you entered each expense at or near the time you had it. Tax 2010 Documentation includes receipts, canceled checks, and bills. Tax 2010 Reasonable period of time. Tax 2010   What constitutes a “reasonable period of time” depends on the facts and circumstances of your situation. Tax 2010 However, regardless of the facts and circumstances, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Tax 2010 You receive an advance within 30 days of the time you have an expense. Tax 2010 You adequately account for your expenses within 60 days after they were paid or incurred. Tax 2010 You return any excess reimbursement within 120 days after the expense was paid or incurred. Tax 2010 You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. Tax 2010 Excess reimbursement. Tax 2010   This includes any amount you are paid (including advances and allowances) that is more than the moving expenses that you adequately accounted for to your employer within a reasonable period of time. Tax 2010 Returning excess reimbursements. Tax 2010   You must be required to return any excess reimbursement for your moving expenses to the person paying the reimbursement. Tax 2010 Excess reimbursement includes any amount for which you did not adequately account within a reasonable period of time. Tax 2010 For example, if you received an advance and you did not spend all the money on deductible moving expenses, or you do not have proof of all your expenses, you have an excess reimbursement. Tax 2010 You meet accountable plan rules. Tax 2010   If for all reimbursements you meet the three rules for an accountable plan (listed earlier), your employer should not include any reimbursements of expenses in your income in box 1 of your Form W-2, Wage and Tax Statement. Tax 2010 Instead, your employer should include the reimbursements in box 12 of your Form W-2. Tax 2010 Example. Tax 2010 You lived in Boston and accepted a job in Atlanta. Tax 2010 Under an accountable plan, your employer reimbursed you for your actual traveling expenses from Boston to Atlanta and the cost of moving your furniture to Atlanta. Tax 2010 Your employer will include the reimbursement on your Form W-2, box 12, with Code P. Tax 2010 If your moving expenses are more than your reimbursement, you may be able to deduct your additional expenses (see How and When To Report, later). Tax 2010 You do not meet accountable plan rules. Tax 2010   You may be reimbursed by your employer, but you may not meet all three rules for part of your expenses. Tax 2010   If your deductible expenses are reimbursed under an otherwise accountable plan but you do not return, within a reasonable period, any reimbursement of expenses for which you did not adequately account, then only the amount for which you did adequately account is considered as paid under an accountable plan. Tax 2010 The remaining expenses are treated as having been reimbursed under a nonaccountable plan (discussed below). Tax 2010 Reimbursement of nondeductible expenses. Tax 2010   You may be reimbursed by your employer for moving expenses, some of which are deductible expenses and some of which are not deductible. Tax 2010 The reimbursements you receive for the nondeductible expenses and any allowances for miscellaneous or unspecified expenses are treated as paid under a nonaccountable plan (see below) and are included in your income. Tax 2010 If you are reimbursed by your employer for the taxes you must pay (including social security and Medicare taxes) because you have received taxable moving expense reimbursements, you must pay tax on this reimbursement as well, and it is treated as paid under a nonaccountable plan. Tax 2010 Nonaccountable Plans A nonaccountable plan is a reimbursement arrangement that does not meet the three rules listed earlier under Accountable Plans. Tax 2010 In addition, the following payments will be treated as paid under a nonaccountable plan. Tax 2010 Excess reimbursements you fail to return to your employer. Tax 2010 Reimbursements of nondeductible expenses. Tax 2010 See Reimbursement of nondeductible expenses, earlier. Tax 2010 If an arrangement pays for your moving expenses by reducing your wages, salary, or other pay, the amount of the reduction will be treated as a payment made under a nonaccountable plan. Tax 2010 This is because you are entitled to receive the full amount of your pay regardless of whether you had any moving expenses. Tax 2010 If you are not sure if the moving expense reimbursement arrangement is an accountable or nonaccountable plan, ask your employer. Tax 2010 Your employer will add the amount of any reimbursement paid to you under a nonaccountable plan to your wages, salary, or other pay. Tax 2010 Your employer will report the total in box 1 of your Form W-2. Tax 2010 Example. Tax 2010 To get you to work in another city, your new employer reimburses you under an accountable plan for the $7,500 loss on the sale of your home. Tax 2010 Because this is a reimbursement of a nondeductible expense, it is treated as paid under a nonaccountable plan and must be included as income in box 1 of your Form W-2. Tax 2010 Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Do not include in income any moving expense payment you received under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Tax 2010 These payments are made to persons displaced from their homes, businesses, or farms by federal projects. Tax 2010 Tax Withholding and Estimated Tax Your employer must withhold income, social security, and Medicare taxes from reimbursements and allowances paid to you that are included in your income. Tax 2010 See Reimbursements included in income, later. Tax 2010 Reimbursements excluded from income. Tax 2010   Your employer should not include in your wages reimbursements paid under an accountable plan (explained earlier) for moving expenses that you: Could deduct if you had paid or incurred them, and Did not deduct in an earlier year. Tax 2010 These reimbursements are fringe benefits excludable from your income as qualified moving expense reimbursements. Tax 2010 Your employer should report these reimbursements on your Form W-2, box 12, with Code P. Tax 2010    You cannot claim a moving expense deduction for expenses covered by reimbursements excluded from income (see Accountable Plans under Types of Reimbursement Plans, earlier). Tax 2010 Expenses deducted in earlier year. Tax 2010   If you receive a reimbursement this year for moving expenses deducted in an earlier year, and the reimbursement is not included as wages in box 1 of your Form W-2, you must include the reimbursement in income on Form 1040, line 21. Tax 2010 Your employer should show the amount of your reimbursement in box 12 of your Form W-2. Tax 2010 Reimbursements included in income. Tax 2010   Your employer must include in your income any reimbursements made (or treated as made) under a nonaccountable plan, even though they are for deductible moving expenses. Tax 2010 See Nonaccountable Plans under Types of Reimbursement Plans, earlier. Tax 2010 Your employer also must include in your gross income as wages any reimbursements of, or payments for, nondeductible moving expenses. Tax 2010 This includes amounts your employer reimbursed you under an accountable plan (explained earlier) for meals, househunting trips, and real estate expenses. Tax 2010 It also includes reimbursements that exceed your deductible expenses and that you do not return to your employer. Tax 2010 Reimbursement for deductible and nondeductible expenses. Tax 2010    If your employer reimburses you for both deductible and nondeductible moving expenses, your employer must determine the amount of the reimbursement that is not taxable and not subject to withholding. Tax 2010 Your employer must treat any remaining amount as taxable wages and withhold income, social security, and Medicare taxes. Tax 2010 Amount of income tax withheld. Tax 2010   If the reimbursements or allowances you receive are taxable, the amount of income tax your employer will withhold depends on several factors. Tax 2010 It depends in part on whether income tax is withheld from your regular wages, on whether the reimbursements and allowances are added to your regular wages, and on any information you have given to your employer on Form W-4, Employee's Withholding Allowance Certificate. Tax 2010   Your employer can treat your reimbursements as supplemental wages and not include the reimbursements and allowances in your regular wages. Tax 2010 The employer can withhold income tax on supplemental wages at a flat rate which may be different from your regular tax rate. Tax 2010 Estimated tax. Tax 2010    If you must make estimated tax payments, you need to take into account any taxable reimbursements and deductible moving expenses in figuring your estimated tax. Tax 2010 For details about estimated taxes, see Publication 505, Tax Withholding and Estimated Tax. Tax 2010 How and When To Report This section explains how and when to report your moving expenses and any reimbursements or allowances you received for your move. Tax 2010 For a quick overview, see Table 2, later. Tax 2010 Form 3903 Use Form 3903 to figure your moving expense deduction. Tax 2010 Use a separate Form 3903 for each move for which you are deducting expenses. Tax 2010 Do not file Form 3903 if all of the following apply. Tax 2010 You moved to a location outside the United States in an earlier year. Tax 2010 You are claiming only storage fees while you were away from the United States. Tax 2010 Any amount your employer paid for the storage fees is included as wages in box 1 of your Form W-2. Tax 2010 Instead, enter the storage fees (after the reduction for the part that is allocable to excluded income) on Form 1040, line 26, and enter “Storage” on the dotted line next to the amount. Tax 2010 If you meet the special rules for members of the Armed Forces, see How to complete Form 3903 for members of the Armed Forces under Members of the Armed Forces, later. Tax 2010 Completing Form 3903. Tax 2010   Complete Worksheet 1, earlier, or the Distance Test Worksheet in the instructions for Form 3903 to see whether you meet the distance test. Tax 2010 If so, complete lines 1 through 3 of the form using your actual expenses (except, if you use your own car, you can figure expenses based on the standard mileage rate, instead of actual amounts for gas and oil). Tax 2010 Enter on line 4 the total amount of your moving expense reimbursement that was excluded from your wages. Tax 2010 This excluded amount should be identified on Form W-2, box 12, with code P. Tax 2010 Expenses greater than reimbursement. Tax 2010   If line 3 is more than line 4, subtract line 4 from line 3 and enter the result on line 5 and on Form 1040, line 26. Tax 2010 This is your moving expense deduction. Tax 2010 Expenses equal to or less than reimbursement. Tax 2010    If line 3 is equal to or less than line 4, you have no moving expense deduction. Tax 2010 Subtract line 3 from line 4 and, if the result is more than zero, include it as income on Form 1040, line 7. Tax 2010 Table 2. Tax 2010 Reporting Your Moving Expenses and Reimbursements IF your Form W-2 shows. Tax 2010 . Tax 2010 . Tax 2010 AND you have. Tax 2010 . Tax 2010 . Tax 2010 THEN. Tax 2010 . Tax 2010 . Tax 2010 your reimbursement reported only  in box 12 with code P moving expenses greater than the  amount in box 12 file Form 3903 showing all allowable  expenses* and reimbursements. Tax 2010 your reimbursement reported only  in box 12 with code P moving expenses equal to the amount  in box 12 do not file Form 3903. Tax 2010 your reimbursement divided  between box 12 and box 1 moving expenses greater than the  amount in box 12 file Form 3903 showing all allowable  expenses,* but only the  reimbursements reported in box 12 of  Form W-2. Tax 2010 your entire reimbursement reported  as wages in box 1 moving expenses file Form 3903 showing all allowable  expenses,* but do not show any  reimbursements. Tax 2010 no reimbursement moving expenses file Form 3903 showing all allowable  expenses. Tax 2010 * * See Deductible Moving Expenses, earlier, for allowable expenses. Tax 2010    Where to deduct. Tax 2010   Deduct your moving expenses on Form 1040, line 26. Tax 2010 The amount of moving expenses you can deduct is shown on Form 3903, line 5. Tax 2010    You cannot deduct moving expenses on Form 1040EZ or Form 1040A. Tax 2010   When To Deduct Expenses You may have a choice of when to deduct your moving expenses. Tax 2010 Expenses not reimbursed. Tax 2010   If you were not reimbursed, deduct your moving expenses in the year you paid or incurred the expenses. Tax 2010 Example. Tax 2010 In December 2012, your employer transferred you to another city in the United States, where you still work. Tax 2010 You are single and were not reimbursed for your moving expenses. Tax 2010 In 2012, you paid for moving your furniture and deducted these expenses on your 2012 tax return. Tax 2010 In January 2013, you paid for travel to the new city. Tax 2010 You can deduct these additional expenses on your 2013 tax return. Tax 2010 Expenses reimbursed. Tax 2010   If you are reimbursed for your expenses and you use the cash method of accounting, you can deduct your expenses either in the year you paid them or in the year you received the reimbursement. Tax 2010 If you use the cash method of accounting, you can choose to deduct the expenses in the year you are reimbursed even though you paid the expenses in a different year. Tax 2010 See Choosing when to deduct, next. Tax 2010   If you deduct your expenses and you receive the reimbursement in a later year, you must include the reimbursement in your income on Form 1040, line 21. Tax 2010 Choosing when to deduct. Tax 2010   If you use the cash method of accounting, which is used by most individuals, you can choose to deduct moving expenses in the year your employer reimburses you if: You paid the expenses in a year before the year of reimbursement, or You paid the expenses in the year immediately after the year of reimbursement but by the due date, including extensions, for filing your return for the reimbursement year. Tax 2010 How to make the choice. Tax 2010   You choose to deduct moving expenses in the year you received reimbursement by taking the deduction on your return, or amended return, for that year. Tax 2010    You cannot deduct any moving expenses for which you received a reimbursement that was not included in your income. Tax 2010 Illustrated Example Tom and Peggy Smith are married and have two children. Tax 2010 They owned a home in Detroit where Tom worked. Tax 2010 On February 8, 2013, Tom's employer told him that he would be transferred to San Diego as of April 10 that year. Tax 2010 Peggy flew to San Diego on March 1 to look for a new home. Tax 2010 She put a down payment of $25,000 on a house being built and returned to Detroit on March 4. Tax 2010 The Smiths sold their Detroit home for $1,500 less than they paid for it. Tax 2010 They contracted to have their personal effects moved to San Diego on April 3. Tax 2010 The family drove to San Diego where they found that their new home was not finished. Tax 2010 They stayed in a nearby motel until the house was ready on May 1. Tax 2010 On April 10, Tom went to work in the San Diego plant where he still works. Tax 2010 Their records for the move show: 1) Peggy's pre-move househunting  trip:       Travel and lodging   $ 449       Meals   75   $ 524 2) Down payment on San Diego  home 25,000 3) Real estate commission paid on  sale of Detroit home 3,500 4) Loss on sale of Detroit home (not  including real estate commission) 1,500 5) Amount paid for moving personal  effects (furniture, other household  goods, etc. Tax 2010 ) 8,000 6) Expenses of driving to San Diego:       Mileage (Start 14,278;  End 16,478) 2,200 miles at 24 cents a mile   $ 528       Lodging   180       Meals   320   1,028 7) Cost of temporary living  expenses in San Diego:       Motel rooms   $1,450       Meals   2,280   3,730 Total $43,282   Tom was reimbursed $10,907 under an accountable plan. Tax 2010 His employer gave him the following breakdown of the reimbursement that was allowed under the employer's plan. Tax 2010 Moving personal effects   $6,800 Travel (and lodging) to San Diego   708 Travel (and lodging) for househunting trip   449 Lodging for temporary quarters   1,450 Loss on sale of home   1,500 Total reimbursement   $10,907 The employer included this reimbursement on Tom's Form W-2 for the year. Tax 2010 The reimbursement of allowable expenses, $7,508 for moving household goods and travel to San Diego, was included in box 12 of Form W-2. Tax 2010 His employer identified this amount with code P. Tax 2010 The employer included the balance, $3,399 reimbursement of nonallowable expenses, in box 1 of Form W-2 with Tom's other wages. Tax 2010 Tom must include this amount on Form 1040, line 7. Tax 2010 The employer withholds taxes from the $3,399, as discussed under Reimbursement for deductible and nondeductible expenses under Tax Withholding and Estimated Tax, earlier. Tax 2010 Also, Tom's employer could have given him a separate Form W-2 for his moving expense reimbursement. Tax 2010 To figure his tax deduction for moving expenses, Tom enters the following amounts on Form 3903. Tax 2010 Item 5 — moving personal effects (line 1)   $8,000 Item 6 — driving to San Diego ($528 + $180)  (line 2)   708 Total tax deductible moving expenses (line 3)   $8,708 Minus: Reimbursement included in box 12  of Form W-2 (line 4)   7,508 Tax deduction for moving expenses (line 5)   $1,200   Tom's Form 3903 is shown, later. Tax 2010 He also enters his deduction, $1,200, on Form 1040, line 26. Tax 2010 Nondeductible expenses. Tax 2010   Of the $43,282 expenses that Tom and Peggy incurred, the following items totaling $34,574 ($43,282 – $8,708) cannot be deducted. Tax 2010 Item 1 — pre-move househunting expenses of $524. Tax 2010 Item 2 — the $25,000 down payment on the San Diego home. Tax 2010 If any part of it were for payment of deductible taxes or interest on the mortgage on the house, that part would be deductible as an itemized deduction. Tax 2010 Item 3 — the $3,500 real estate commission paid on the sale of the Detroit home. Tax 2010 The commission is used to figure the gain or loss on the sale. Tax 2010 Item 4 — the $1,500 loss on the sale of the Detroit home. Tax 2010 Item 6 — the $320 expense for meals while driving to San Diego. Tax 2010 (However, the lodging and car expenses are deductible. Tax 2010 ) Item 7 — temporary living expenses of $3,730. Tax 2010    This image is too large to be displayed in the current screen. Tax 2010 Please click the link to view the image. Tax 2010 2012 Form 3903 Moving Expenses Members of the Armed Forces If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you do not have to meet the distance and time tests, discussed earlier. Tax 2010 You can deduct your unreimbursed moving expenses. Tax 2010 A permanent change of station includes: A move from your home to your first post of active duty, A move from one permanent post of duty to another, and A move from your last post of duty to your home or to a nearer point in the United States. Tax 2010 The move must occur within one year of ending your active duty or within the period allowed under the Joint Travel Regulations. Tax 2010 Spouse and dependents. Tax 2010   If a member of the Armed Forces dies, is imprisoned, or deserts, a permanent change of station for the spouse or dependent includes a move to: The place of enlistment, The member's, spouse's, or dependent's home of record, or A nearer point in the United States. Tax 2010   If the military moves you, your spouse, and dependents, to or from separate locations, the moves are treated as a single move to your new main job location. Tax 2010 Services or reimbursements provided by government. Tax 2010   Do not include in income the value of moving and storage services provided by the government because of a permanent change of station. Tax 2010 In general, if the total reimbursements or allowances you receive from the government because of the move are more than your actual moving expenses, the government must include the excess in your wages on Form W-2. Tax 2010 However, the excess portion of a dislocation allowance, a temporary lodging allowance, a temporary lodging expense, or a move-in housing allowance is not included in income and should not be included in box 1 of Form W-2. Tax 2010   If your reimbursements or allowances are less than your actual moving expenses, do not include the reimbursements or allowances in income. Tax 2010 You can deduct the expenses that are more than your reimbursements. Tax 2010 See Deductible Moving Expenses, earlier. Tax 2010 How to complete Form 3903 for members of the Armed Forces. Tax 2010    Take the following steps. Tax 2010 Complete lines 1 through 3 of the form, using your actual expenses. Tax 2010 Do not include any expenses for moving services provided by the government. Tax 2010 Also, do not include any expenses that were reimbursed by an allowance you do not have to include in your income. Tax 2010 Enter on line 4 the total reimbursements and allowances you received from the government for the expenses claimed on lines 1 and 2. Tax 2010 Do not include the value of moving or storage services provided by the government. Tax 2010 Also, do not include any part of a dislocation allowance, a temporary lodging allowance, a temporary lodging expense, or a move-in housing allowance. Tax 2010 Complete line 5. Tax 2010 If line 3 is more than line 4, subtract line 4 from line 3 and enter the result on line 5 and on Form 1040, line 26. Tax 2010 This is your moving expense deduction. Tax 2010 If line 3 is equal to or less than line 4, you do not have a moving expense deduction. Tax 2010 Subtract line 3 from line 4 and, if the result is more than zero, enter it on Form 1040, line 7. Tax 2010 If the military moves you, your spouse and dependents, to or from different locations, treat these moves as a single move. Tax 2010    Do not deduct any expenses for moving or storage services provided by the government. Tax 2010 How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. Tax 2010 Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Tax 2010 Free help with your tax return. Tax 2010   Free help in preparing your return is available nationwide from IRS-certified volunteers. Tax 2010 The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Tax 2010 The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Tax 2010 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Tax 2010 Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Tax 2010 To find the nearest VITA or TCE site, visit IRS. Tax 2010 gov or call 1-800-906-9887. Tax 2010   As part of the TCE program, AARP offers the Tax-Aide counseling program. Tax 2010 To find the nearest AARP Tax-Aide site, visit AARP's website at www. Tax 2010 aarp. Tax 2010 org/money/taxaide or call 1-888-227-7669. Tax 2010   For more information on these programs, go to IRS. Tax 2010 gov and enter “VITA” in the search box. Tax 2010 Internet. Tax 2010 IRS. Tax 2010 gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Tax 2010 Apply for an Employer Identification Number (EIN). Tax 2010 Go to IRS. Tax 2010 gov and enter Apply for an EIN in the search box. Tax 2010 Request an Electronic Filing PIN by going to IRS. Tax 2010 gov and entering Electronic Filing PIN in the search box. Tax 2010 Check the status of your 2013 refund with Where's My Refund? Go to IRS. Tax 2010 gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Tax 2010 If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Tax 2010 Check the status of your amended return. Tax 2010 Go to IRS. Tax 2010 gov and enter Where's My Amended Return in the search box. Tax 2010 Download forms, instructions, and publications, including some accessible versions. Tax 2010 Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Tax 2010 gov or IRS2Go. Tax 2010 Tax return and tax account transcripts are generally available for the current year and past three years. Tax 2010 Figure your income tax withholding with the IRS Withholding Calculator on IRS. Tax 2010 gov. Tax 2010 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Tax 2010 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Tax 2010 gov. Tax 2010 Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Tax 2010 gov or IRS2Go. Tax 2010 Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Tax 2010 An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Tax 2010 Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Tax 2010 If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Tax 2010 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Tax 2010 Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Tax 2010 gov. Tax 2010 Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Tax 2010 The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Tax 2010 Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Tax 2010 AARP offers the Tax-Aide counseling program as part of the TCE program. Tax 2010 Visit AARP's website to find the nearest Tax-Aide location. Tax 2010 Research your tax questions. Tax 2010 Search publications and instructions by topic or keyword. Tax 2010 Read the Internal Revenue Code, regulations, or other official guidance. Tax 2010 Read Internal Revenue Bulletins. Tax 2010 Sign up to receive local and national tax news by email. Tax 2010 Phone. Tax 2010 You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Tax 2010 Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Tax 2010 Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Tax 2010 Call to locate the nearest volunteer help site, 1-800-906-9887. Tax 2010 Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Tax 2010 The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Tax 2010 Most VITA and TCE sites offer free electronic filing. Tax 2010 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Tax 2010 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Tax 2010 Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Tax 2010 The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Tax 2010 If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Tax 2010 Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Tax 2010 Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Tax 2010 Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Tax 2010 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Tax 2010 Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Tax 2010 You should receive your order within 10 business days. Tax 2010 Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Tax 2010 Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Tax 2010 Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Tax 2010 Call to ask tax questions, 1-800-829-1040. Tax 2010 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Tax 2010 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Tax 2010 These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Tax 2010 gsa. Tax 2010 gov/fedrelay. Tax 2010 Walk-in. Tax 2010 You can find a selection of forms, publications and services — in-person, face-to-face. Tax 2010 Products. Tax 2010 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Tax 2010 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Tax 2010 Services. Tax 2010 You can walk in to your local TAC most business days for personal, face-to-face tax help. Tax 2010 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Tax 2010 If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Tax 2010 No appointment is necessary—just walk in. Tax 2010 Before visiting, check www. Tax 2010 irs. Tax 2010 gov/localcontacts for hours of operation and services provided. Tax 2010 Mail. Tax 2010 You can send your order for forms, instructions, and publications to the address below. Tax 2010 You should receive a response within 10 business days after your request is received. Tax 2010  Internal Revenue Service 1201 N. Tax 2010 Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Tax 2010   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Tax 2010 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Tax 2010 What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Tax 2010 We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Tax 2010 You face (or your business is facing) an immediate threat of adverse action. Tax 2010 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Tax 2010   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Tax 2010 Here's why we can help: TAS is an independent organization within the IRS. Tax 2010 Our advocates know how to work with the IRS. Tax 2010 Our services are free and tailored to meet your needs. Tax 2010 We have offices in every state, the District of Columbia, and Puerto Rico. Tax 2010 How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Tax 2010 irs. Tax 2010 gov/advocate, or call us toll-free at 1-877-777-4778. Tax 2010 How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Tax 2010 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Tax 2010 irs. Tax 2010 gov/sams. Tax 2010 Low Income Taxpayer Clinics. Tax 2010   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Tax 2010 Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Tax 2010 Visit www. Tax 2010 TaxpayerAdvocate. Tax 2010 irs. Tax 2010 gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Tax 2010 Prev  Up  Next   Home   More Online Publications