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Irs 1040ez 2011 Form

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Irs 1040ez 2011 Form

Irs 1040ez 2011 form 35. Irs 1040ez 2011 form   Créditos Tributarios por Estudios Table of Contents Introduction Useful Items - You may want to see: ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Gastos de Estudios CalificadosNo se Permite Beneficio Doble Ajustes a los Gastos de Estudios Calificados Introduction Para 2013, hay dos créditos tributarios para personas que paguen gastos de enseñanza superior (postsecundaria). Irs 1040ez 2011 form Éstos son: El crédito tributario de oportunidad para los estadounidenses y El crédito vitalicio por aprendizaje. Irs 1040ez 2011 form Este capítulo explica en términos generales estos créditos tributarios por estudios. Irs 1040ez 2011 form Para obtener la información detallada que necesitará para reclamar cualquiera de los créditos, y para ver ejemplos aclaratorios, consulte los capítulos 2 y 3 de la Publicación 970, Tax Benefits for Education (Beneficios tributarios por estudios), en inglés. Irs 1040ez 2011 form ¿Puede reclamar más de un crédito por estudios este año?   Puede escoger sólo uno de los créditos por cada estudiante por cada año. Irs 1040ez 2011 form Por ejemplo, si reclama el crédito tributario de oportunidad para los estadounidenses por un hijo en su declaración de impuestos de 2013, no puede tomar el crédito vitalicio por aprendizaje para 2013 si se trata del mismo hijo. Irs 1040ez 2011 form   Si reúne los requisitos del crédito tributario de oportunidad para los estadounidenses y también del crédito vitalicio por aprendizaje por el mismo estudiante durante el mismo año, puede reclamar sólo uno de los dos créditos, pero no ambos. Irs 1040ez 2011 form   Si paga gastos de estudios calificados por más de un estudiante durante el mismo año, puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje basado por cada estudiante y por año. Irs 1040ez 2011 form Esto quiere decir que, por ejemplo, puede reclamar el crédito tributario de oportunidad para los estadounidenses por un estudiante y el crédito vitalicio por aprendizaje por otro estudiante en el mismo año. Irs 1040ez 2011 form    Tabla 35-1. Irs 1040ez 2011 form Comparación de los Créditos Tributarios por Estudios Precaución: Puede reclamar el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje en la misma declaración —pero no por el mismo estudiante. Irs 1040ez 2011 form   Crédito tributario de oportunidad para los estadounidenses Crédito vitalicio por aprendizaje Crédito máximo Un crédito de hasta $2,500 por cada estudiante que reúne los requisitos Un crédito de hasta $2,000 por cada declaración Límite a los ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) $180,000 si es casado que presenta una declaración conjunta;  $90,000 si es soltero, cabeza de familia o viudo que reúne los requisitos $127,000 si es casado que presenta una declaración conjunta;  $63,000 si es soltero, cabeza de familia o viudo que reúne los requisitos Reembolsable o no reembolsable El 40% del crédito podría ser reembolsable El monto del crédito está limitado al monto de impuestos que tiene que pagar sobre sus ingresos sujetos a impuestos Número de años de enseñanza postsecundaria Disponible SÓLO si el estudiante no ha completado los 4 primeros años de enseñanza postsecundaria antes de 2013 Disponible para todo año de enseñanza postsecundaria y cursos para adquirir o mejorar aptitudes en el trabajo Número de años tributarios por los cuales se ofrece el crédito Disponible SÓLO por 4 años por cada estudiante que reúna los requisitos (incluido todo año en el que se haya reclamado el crédito Hope) Disponible por un número ilimitado de años Tipo de programa académico requerido El estudiante tiene que estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado El estudiante no necesita estar cursando un programa de estudios con miras a sacar una licenciatura u otro título o certificado académico acreditado Número de cursos El estudiante tiene que estar matriculado a medio tiempo como mínimo durante al menos un período académico que haya comenzado en el transcurso del año tributario Disponible para uno o más cursos Fallo condenatorio por delito grave de drogas Si para el fin de 2013 no consta fallo condenatorio alguno al estudiante por delito grave de poseer o distribuir drogas Fallos condenatorios por delito grave de drogas no hacen que el estudiante no reúna los requisitos Gastos que reúnen los requisitos Costos de matrícula y gastos de inscripción obligatorios y todos los materiales relacionados con un curso que necesita el estudiante, tanto si son comprados o no en la institución como condición de inscripción o asistencia Costos de matrícula y gastos de inscripción obligatorios (incluidas cantidades que tienen que pagarse a la institución por textos, materiales y equipo relacionados con un curso) Pagos por períodos académicos Pagos efectuados en 2013 para períodos académicos que se iniciaron en 2013 y en los tres primeros meses de 2014 Diferencias entre el crédito tributario de oportunidad para los estadounidenses y el crédito vitalicio por aprendizaje. Irs 1040ez 2011 form   Existen varias diferencias entre estos dos créditos. Irs 1040ez 2011 form Estas diferencias se resumen en la Tabla 35-1, más adelante. Irs 1040ez 2011 form Useful Items - You may want to see: Publicación 970 Tax Benefits for Education (Beneficios tributarios por estudios), en inglés Formulario (e Instrucciones) 8863 Education Credits (American Opportunity and Lifetime Learning Credits) (Créditos tributarios por estudios (crédito tributario de oportunidad para los estadounidenses y crédito vitalicio por aprendizaje)), en inglés ¿Quién Puede Reclamar un Crédito Tributario por Estudios? Tal vez pueda reclamar un crédito tributario por estudios si usted, su cónyuge o un dependiente reclamado en su declaración de impuestos era estudiante matriculado en, o asistió a, una institución de enseñanza superior que reúne los requisitos. Irs 1040ez 2011 form Los créditos se basan en la cantidad de gastos de estudios calificados que hayan sido pagados a nombre del estudiante en 2013 por períodos académicos que comenzaron en 2013 y en los primeros tres meses de 2014. Irs 1040ez 2011 form Por ejemplo, si pagó $1,500 en diciembre de 2013 por una matrícula calificada por el semestre de primavera de 2014 que comience en enero de 2014, tal vez pueda usar los $1,500 en el cálculo del (de los) crédito(s) para 2013. Irs 1040ez 2011 form Período académico. Irs 1040ez 2011 form   Un período académico abarca un semestre, trimestre, cuatrimestre u otro período de estudios (como un curso de escuela de verano) según lo determine de manera razonable una institución de enseñanza superior. Irs 1040ez 2011 form En el caso de una institución de enseñanza superior que no tenga períodos académicos sino horas de crédito u horas de reloj, cada período de pago se puede considerar período académico. Irs 1040ez 2011 form Institución de enseñanza superior que reúne los requisitos. Irs 1040ez 2011 form   Una “institución de enseñanza superior que reúne los requisitos” es todo colegio universitario, universidad, escuela de enseñanza técnica u otra institución de enseñanza superior con derecho a participar en un programa de asistencia financiera al estudiante administrado por el Departamento de Educación de los Estados Unidos. Irs 1040ez 2011 form Esta clase de institución abarca prácticamente todas las instituciones acreditadas de enseñanza superior públicas, sin fines de lucro y las privadas con fines de lucro. Irs 1040ez 2011 form La institución de enseñanza superior debe poder indicarle si reúne los requisitos. Irs 1040ez 2011 form   Determinadas instituciones de enseñanza superior ubicadas en el extranjero participan también en los programas de Federal Student Aid (Asistencia Financiera al Estudiante o FSA, por sus siglas en inglés) del Departamento de Educación de los Estados Unidos. Irs 1040ez 2011 form ¿Quién puede reclamar los gastos de un dependiente?   Si una persona reclama al estudiante como dependiente y se permite una deducción por aquel estudiante en la declaración de dicha persona, se considera que esa persona ha pagado todos los gastos de estudios calificados del estudiante. Irs 1040ez 2011 form Por lo tanto, sólo esa persona puede reclamar un crédito por estudios en nombre del estudiante. Irs 1040ez 2011 form Si un estudiante no es reclamado como dependiente en la declaración de impuestos de otra persona, sólo el estudiante puede reclamar un crédito. Irs 1040ez 2011 form Gastos pagados por un tercero. Irs 1040ez 2011 form   Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Irs 1040ez 2011 form Sin embargo, los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos, se tratan como si hubiesen sido pagados por usted. Irs 1040ez 2011 form Por lo tanto, a usted se le trata como si hubiese pagado los gastos que fueron pagados por el tercero. Irs 1040ez 2011 form Para más información y para ver un ejemplo, vea Who can Claim a Dependent's Expenses (¿Quién puede reclamar los gastos de un dependiente?) en el capítulo 2 ó 3 de la Publicación 970, en inglés. Irs 1040ez 2011 form ¿Quién no puede reclamar el crédito?   No puede tomar un crédito tributario por estudios si alguna de las siguientes situaciones le corresponde: Usted es reclamado como dependiente en la declaración de impuestos de otra persona, como la de sus padres. Irs 1040ez 2011 form Su estado civil para efectos de la declaración es casado que presenta una declaración por separado. Irs 1040ez 2011 form Usted (o su cónyuge) fue extranjero no residente durante cualquier parte de 2013 y no optó por ser tratado como extranjero residente para fines tributarios. Irs 1040ez 2011 form Sus ingresos brutos ajustados modificados (MAGI, por sus siglas en inglés) es uno de los siguientes: Crédito tributario de oportunidad para los estadounidenses: $180,000 o más si es casado que presenta la declaración conjunta, o $90,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Irs 1040ez 2011 form Crédito vitalicio por aprendizaje: $127,000 o más si es casado que presenta la declaración conjunta, o $63,000 o más si es soltero, cabeza de familia o viudo que reúne los requisitos. Irs 1040ez 2011 form   Por lo general, su MAGI es la cantidad de la línea 38 de su Formulario 1040 o la línea 22 del Formulario 1040A. Irs 1040ez 2011 form No obstante, si presenta el Formulario 2555, 2555-EZ o 4563 o si excluye ingresos de fuentes dentro de Puerto Rico, sume la cantidad excluida del ingreso a la cantidad en la línea 38 de su Formulario 1040 o de la línea 22 del Formulario 1040A. Irs 1040ez 2011 form Para más detalles, vea la Publicación 970, en inglés. Irs 1040ez 2011 form   La Figura 35-A podría ser útil al momento de determinar si puede reclamar un crédito tributario por estudios en su declaración de impuestos. Irs 1040ez 2011 form    El crédito tributario de oportunidad para los estadounidenses siempre será mayor que o igual al crédito vitalicio por aprendizaje para todo estudiante que reúna los requisitos para ambos créditos. Irs 1040ez 2011 form Sin embargo, si no se cumplen todos los requisitos correspondientes al crédito tributario de oportunidad para los estadounidenses enumerados anteriormente en la Tabla 35-1, usted no puede reclamar dicho crédito en base de este estudiante. Irs 1040ez 2011 form En lugar de ello, quizás podría reclamar el crédito vitalicio por aprendizaje por una parte o la totalidad de los gastos de estudios calificados de dicho estudiante. Irs 1040ez 2011 form Para obtener información sobre otros beneficios relacionados con los estudios, vea la Publicación 970, en inglés. Irs 1040ez 2011 form Gastos de Estudios Calificados Generalmente, se considera que los gastos de estudios calificados son cantidades pagadas en 2013 por matrícula y gastos escolares obligatorios para matricularse en un curso o asistir al mismo en una institución de enseñanza superior. Irs 1040ez 2011 form No importa si los gastos fueron pagados en efectivo, por cheque, con tarjeta de crédito o débito, o con préstamos. Irs 1040ez 2011 form Sólo reúnen los requisitos ciertos gastos por libros, materiales y equipos relacionados con un curso: Crédito tributario de oportunidad para los estadounidenses: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos necesarios para cursos de un programa de estudios, ya sea o no que se compren estos materiales en la institución de enseñanza como condición para matricularse o asistir a tales cursos. Irs 1040ez 2011 form Crédito vitalicio por aprendizaje: Los gastos de estudios calificados abarcan cantidades gastadas en libros, materiales y equipos sólo si se tienen que pagar a la institución como condición para matricularse o asistir a cursos. Irs 1040ez 2011 form Los gastos de estudios calificados incluyen cuotas no académicas, tales como cuotas por actividades estudiantiles, cuotas por actividades deportivas u otros gastos no relacionados con el curso de instrucción, sólo si la cuota tiene que pagarse a la institución como condición de inscripción o asistencia. Irs 1040ez 2011 form Sin embargo, las cuotas por gastos personales (descritos a continuación) nunca se consideran gastos de estudios calificados. Irs 1040ez 2011 form Los gastos de estudios calificados no incluyen cantidades pagadas por: Gastos personales. Irs 1040ez 2011 form Éstos incluyen gastos de alojamiento y comida, seguros, gastos médicos (incluyendo las cuotas de servicios de salud para estudiantes), transporte y otros gastos personales similares o de familia. Irs 1040ez 2011 form Todo curso u otros estudios que se relacionen con deportes, juegos o pasatiempos o todo curso sin crédito académico, a menos que dicho curso o dichos estudios formen parte del programa de estudios para obtener un título del estudiante o (sólo en el caso del crédito vitalicio por aprendizaje) ayude al estudiante a adquirir o mejorar aptitudes en el trabajo. Irs 1040ez 2011 form Usted debe recibir el Formulario 1098-T, Tuition Statement (Información sobre el pago de matrícula), en inglés, de la institución que informa cualesquiera de los pagos recibidos en 2013 (encasillado 1) o las cantidades facturadas en 2013 (encasillado 2). Irs 1040ez 2011 form Sin embargo, la cantidad pagada (o tratada como pagada) puede ser distinta a la cantidad en el encasillado 1 ó 2 del Formulario 1098-T. Irs 1040ez 2011 form Al completar el Formulario 8863, en inglés, utilice sólo las cantidades que realmente pagó (además de cualquier otra cantidad tratada como pagada) en 2013, reducida cuando sea necesario, como se describe en Ajustes a los Gastos de Estudios Calificados , más adelante. Irs 1040ez 2011 form Los gastos de estudios calificados pagados en nombre del estudiante por una persona que no sea el estudiante (como un pariente) se tratan como si hubiesen sido pagados por dicho estudiante. Irs 1040ez 2011 form Los gastos de estudios calificados pagados (o que se tratan como si hubiesen sido pagados) por un estudiante que es reclamado como dependiente en su declaración de impuestos se tratan como si hubiesen sido pagados por usted. Irs 1040ez 2011 form Al calcular los créditos tributarios por estudios, si usted o el estudiante toman una deducción por gastos de enseñanza superior, tal como en el Anexo A o C (Formulario 1040), no pueden utilizar esos gastos como gastos de estudios calificados. Irs 1040ez 2011 form Los gastos de estudios calificados para cualquier período académico tienen que ser reducidos por toda ayuda económica de estudios exenta de los impuestos asignable a dicho período académico. Irs 1040ez 2011 form Vea Ajustes a los Gastos de Estudios Calificados , más adelante. Irs 1040ez 2011 form Gastos pagados por adelantado. Irs 1040ez 2011 form   Los gastos de estudios calificados pagados en 2013 para un período académico que comienza en los primeros tres meses de 2014 se pueden utilizar sólo en el cálculo del crédito por estudios de 2013. Irs 1040ez 2011 form Vea Período académico , anteriormente. Irs 1040ez 2011 form Por ejemplo, si usted paga $2,000 en diciembre de 2013 para matrícula calificada por el cuatrimestre del invierno de 2014 que comienza en enero de 2014, puede utilizar los $2,000 en el cálculo del crédito por estudios sólo para 2013 (si reúne todos los otros requisitos). Irs 1040ez 2011 form No puede utilizar cantidad alguna que haya pagado en 2012 ó 2014 para calcular su(s) crédito(s) tributario(s) por estudios de 2013. Irs 1040ez 2011 form Gastos pagados con un préstamo. Irs 1040ez 2011 form   Puede reclamar un crédito por estudios en el caso de gastos de estudios calificados que haya pagado con un préstamo. Irs 1040ez 2011 form Utilice los gastos para calcular el crédito tributario por estudios correspondiente al año en que se paguen los gastos y no al año en el que se pague el préstamo. Irs 1040ez 2011 form Trate los pagos del préstamo enviados directamente a la institución de enseñanza superior como si se hubiesen pagado en la fecha en que dicha institución abone los pagos a la cuenta del estudiante. Irs 1040ez 2011 form Si el estudiante se retira de uno o más cursos. Irs 1040ez 2011 form   Puede reclamar un crédito tributario por estudios en el caso de gastos de estudios calificados que no se le devuelvan al estudiante si el estudiante se retira de uno o más cursos. Irs 1040ez 2011 form No se Permite Beneficio Doble No se permite hacer lo siguiente: Deducir gastos de enseñanza superior en su declaración de impuestos sobre los ingresos (por ejemplo, un gasto de negocio) y reclamar también un crédito por estudios basándose en dichos gastos. Irs 1040ez 2011 form Reclamar más de un (1) crédito tributario por estudios basándose en los mismos gastos de estudios calificados. Irs 1040ez 2011 form Reclamar un crédito por estudios basándose en los mismos gastos utilizados para calcular la parte exenta del impuesto de distribuciones de una cuenta de ahorros para estudios Coverdell (Coverdell ESA, por su abreviatura en inglés) o un programa de matrícula calificada (QTP, por sus siglas en inglés). Irs 1040ez 2011 form Reclamar un crédito basándose en gastos de estudios calificados que hayan sido pagados con ayuda para estudios, tal como una beca o subvención o ayuda provista por el empleador, libres de impuestos. Irs 1040ez 2011 form Vea Ajustes a los Gastos de Estudios Calificados, a continuación. Irs 1040ez 2011 form Ajustes a los Gastos de Estudios Calificados Para cada estudiante, se tiene que restar los gastos de estudios calificados, pagados en 2013, por o en nombre de dicho estudiante bajo las siguientes reglas. Irs 1040ez 2011 form El resultado es la cantidad ajustada en gastos de estudios calificados por cada estudiante. Irs 1040ez 2011 form Ayuda económica para estudios exenta de impuestos. Irs 1040ez 2011 form   Si en 2013 recibió ayuda económica para estudios que está exenta de impuestos, reste la cantidad de la ayuda económica para estudios exenta de impuestos asignable para cada período académico de la cantidad de gastos de estudios calificados para cada período académico. Irs 1040ez 2011 form Vea Período académico , anteriormente. Irs 1040ez 2011 form   La ayuda económica para estudios exenta de impuestos incluye: Partes no sujetas a impuestos de becas de estudios y becas de investigación (vea el capítulo 12 de esta publicación y el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de subvenciones federales Pell (vea el capítulo 1 de la Publicación 970, en inglés), La parte no sujeta a impuestos de ayuda económica para estudios provista por el empleador (vea la Publicación 970, en inglés), Ayuda económica para estudios para veteranos (vea el capítulo 1 de la Publicación 970, en inglés) y Cualquier otro pago no sujeto a impuestos (libre de impuestos) (que no sean regalos ni herencias) recibido como ayuda económica para estudios. Irs 1040ez 2011 form   Por lo general, toda beca de estudios o de investigación es tratada como una ayuda económica para estudios exenta de impuestos. Irs 1040ez 2011 form Sin embargo, una beca de estudios o de investigación no será tratada como dicha ayuda al punto de que el estudiante la incluye como ingreso bruto (si el estudiante tiene que presentar una declaración de impuestos) para el año en que reciba la beca de estudios o de investigación y le corresponde uno de los siguientes: La beca de estudios o de investigación (o cualquier parte de dicha beca) tiene que ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés, o La beca de estudios o de investigación (o cualquier parte de dicha beca) puede ser aplicada (por sus condiciones) a gastos (como de alojamiento y comida) que no sean gastos de estudios calificados como se define en el capítulo 1, Qualified education expenses (Gastos de estudios calificados), de la Publicación 970, en inglés. Irs 1040ez 2011 form Podría aumentar el valor combinado del crédito tributario por estudios y cierta ayuda económica para estudios si el estudiante incluye alguna o toda ayuda económica para estudios del ingreso en el año en que recibió dicha ayuda. Irs 1040ez 2011 form Para detalles, vea Adjustments of Qualified Education Expenses (Ajustes a los gastos de estudios calificados) en los capítulos 2 y 3 de la Publicación 970, en inglés. Irs 1040ez 2011 form Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 podría ser tratada como un reembolso de gastos de estudios calificados que se pagaron en 2013. Irs 1040ez 2011 form Esta ayuda económica para estudios exenta de impuestos es toda ayuda económica para estudios exenta de impuestos que usted o cualquier otro ha recibido después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 (o atribuible a la matrícula de una institución de enseñanza superior que reúne los requisitos durante 2013). Irs 1040ez 2011 form Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 pero antes de que presente su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos, más adelante. Irs 1040ez 2011 form Si dicha ayuda económica para estudios exenta de impuestos se recibe después de 2013 y después que presenta su declaración de impuestos sobre los ingresos para 2013, vea Reembolsos recibidos después de 2013 y después que presenta su declaración de impuestos sobre los ingresos, más adelante. Irs 1040ez 2011 form Reembolsos. Irs 1040ez 2011 form   Un reembolso de gastos de estudios calificados puede reducir gastos de estudios calificados por el año tributable o puede requerir que recupere (reintegre) el crédito tributario por estudios que reclamó en un año anterior. Irs 1040ez 2011 form Cierta ayuda económica para estudios exenta de impuestos recibida después de 2013 puede ser tratada como un reembolso. Irs 1040ez 2011 form Vea Ayuda económica para estudios exenta de impuestos, anteriormente. Irs 1040ez 2011 form Reembolsos recibidos en 2013. Irs 1040ez 2011 form   Por cada estudiante, calcule los gastos de estudios calificados ajustados de 2013 sumando todos los gastos de estudios calificados pagados en 2013 y reste todos los reembolsos de esos gastos recibidos de la institución de enseñanza superior que reúne los requisitos durante 2013. Irs 1040ez 2011 form Reembolsos recibidos después de 2013 pero antes de presentar su declaración de impuestos sobre los ingresos. Irs 1040ez 2011 form   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagado en nombre de un estudiante en 2013 y el reembolso es recibido antes de que presente su declaración de impuestos sobre los ingresos de 2013, reste la cantidad de gastos de estudios calificados de 2013 por la cantidad del reembolso. Irs 1040ez 2011 form Reembolsos recibidos después de 2013 y después de presentar su declaración de impuestos sobre los ingresos. Irs 1040ez 2011 form   Si alguien recibe un reembolso después de 2013 por gastos de estudios calificados pagados en nombre de un estudiante en 2013 y el reembolso es recibido después de presentar su declaración de impuestos sobre los ingresos de 2013, podría verse obligado a reintegrar parte o todo el crédito tributario por estudios que reclamó. Irs 1040ez 2011 form Vea Recuperar (reintegrar) el crédito, a continuación. Irs 1040ez 2011 form Recuperar (reintegrar) el crédito. Irs 1040ez 2011 form   Si después de haber presentado su declaración de impuestos sobre los ingresos de 2013, recibe alguna ayuda económica para estudios exenta de impuestos o cualquier reembolso correspondiente a gastos de estudios calificados que haya pagado en 2013, tiene que recuperar (reintegrar) todo crédito en exceso. Irs 1040ez 2011 form Cuando se vuelve a calcular la cantidad de gastos de estudios calificados ajustados de 2013, reste de dichos gastos la cantidad de la ayuda económica para estudios exenta de impuestos o el (los) reembolso(s) que haya recibido. Irs 1040ez 2011 form Entonces se calcula nuevamente su(s) crédito(s) tributario(s) por estudios de 2013 y se calcula la cantidad por la cual su impuesto adeudado de 2013 hubiera aumentado si hubiese reclamado dicho(s) crédito(s) nuevamente calculado(s). Irs 1040ez 2011 form Incluya esa cantidad como un impuesto adicional para el año en que la ayuda económica o el reembolso fueron recibidos. Irs 1040ez 2011 form Ejemplo. Irs 1040ez 2011 form   Usted pagó $8,000 por matrícula y gastos escolares de su hijo en diciembre de 2013 por el semestre de primavera que comienza en enero de 2014. Irs 1040ez 2011 form Usted presentó su declaración de impuestos de 2013 el 3 de febrero de 2014 y reclamó un crédito vitalicio por aprendizaje de $1,600 ($8,000 de gastos de estudios calificados multiplicado por 0. Irs 1040ez 2011 form 20). Irs 1040ez 2011 form Usted no reclamó otros créditos tributarios. Irs 1040ez 2011 form Después de haber presentado su declaración, su hijo se retiró de dos cursos y usted recibió un reembolso de $1,400. Irs 1040ez 2011 form Tiene que volver a calcular su crédito vitalicio por aprendizaje de 2013 usando $6,600 ($1,400 del reembolso que se resta de los gastos de estudios calificados de $8,000). Irs 1040ez 2011 form El crédito nuevamente calculado es $1,320 y su impuesto adeudado aumentó por $280. Irs 1040ez 2011 form Tiene que incluir el resultado de $280 (lo que queda después de que haya restado $1,320 (el crédito nuevamente calculado) de $1,600 (el crédito que había reclamado originalmente)) como un impuesto adicional en su declaración de impuestos sobre los ingresos de 2014. Irs 1040ez 2011 form Para determinar en dónde incluir dicho impuesto adicional, vea las instrucciones de su declaración de impuestos sobre los ingresos de 2014. Irs 1040ez 2011 form    Si también paga gastos de estudios calificados en 2014 para un período académico que comienza en los primeros tres meses de 2014 y recibe ayuda económica para estudios exenta de impuestos o un reembolso como se explicó anteriormente, usted puede escoger reducir sus gastos de estudios calificados para el 2014 en vez de reducir sus gastos para 2013. Irs 1040ez 2011 form Cantidades que no reducen los gastos de estudios calificados. Irs 1040ez 2011 form   No reste de los gastos de estudios calificados las cantidades pagadas con fondos que el estudiante reciba como: Pagos por servicios, como salarios; Un préstamo; Un regalo; Una herencia o Un retiro de la cuenta de ahorros personal del estudiante. Irs 1040ez 2011 form   No reste de los gastos de estudios calificados ninguna beca de estudios o beca de investigación reclamada como ingresos en la declaración de ingresos del estudiante en las siguientes situaciones: El uso del dinero está limitado, por los términos de la beca de estudios o de investigación, a los costos de asistencia (como alojamiento y comida) que no sean gastos de estudios calificados, como se definen en el capítulo 1 de la Publicación 970, en inglés. Irs 1040ez 2011 form El uso del dinero no está limitado. Irs 1040ez 2011 form   Para ver ejemplos, consulte el capítulo 2 de la Publicación 970, en inglés. Irs 1040ez 2011 form Please click here for the text description of the image. Irs 1040ez 2011 form Figura 35-A ¿Puede usted reclamar el crédito por Estudios para 2013? Prev  Up  Next   Home   More Online Publications
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SOI Tax Stats - Estate, Gift and Trust Statistics

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The studies in this section relate to the Federal Transfer tax system (estate and gift taxes) and to trusts, which are an integral part of many estate plans.

Estate Tax Statistics

Estate Tax Statistics OneSheet

This annual study includes information on gross estate and its composition, deductions, and tax, as well as information on the age, sex, and marital status of decedents. Estate tax data are produced by filing year and selected years of death. Data are compiled from Form 706.

Gift Tax

Snapshot of Gift Tax Statistics

This study includes information on gifts to individuals and charities that exceed the annual exclusion. Data are collected for the donor of the gift, the amount of each individual gift reported, the computation of lifetime gifts, and calculation of tax liability. Data are compiled from Form 709.

Income from
Trusts & Estates

Snapshot of Income from Trusts and Estates (Form 1041)

These population data, derived from IRS Master File data, include information on income, deductions, and tax liability reported for estates and domestic trusts. Information on Foreign Trusts is also available. Data are compiled from Form 1041.

Nonresident Alien
Estate Tax

Snapshot of Nonresident Alien Estate Tax

Provides data on estate tax returns filed for non-U.S. citizens who owned at least $60,000 worth of property within the U.S. at time of death. Data are classified by tax status and size of U.S. gross estate. This study is conducted annually and data are compiled from Form 706NA.

Personal Wealth

This periodic study provides estimates of personal wealth of top wealth holders that are generated from estate tax return data using the "estate multiplier" technique, in conjunction with both filing-year and year-of-death estate databases.

Split Interest Trusts

Snapshot of Split Interest Data

Split-interest trusts make distributions to both charitable and non-charitable beneficiaries, while providing tax benefits to their donors. Based on the method and timing of distributions, split-interest trusts are divided into four categories: charitable remainder annuity trusts, charitable remainder unitrusts, charitable lead trusts, and pooled income funds. Data are compiled from Form 5227.

 

Estate and Gift Tax Archive

 

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Page Last Reviewed or Updated: 27-Jan-2014

The Irs 1040ez 2011 Form

Irs 1040ez 2011 form 4. Irs 1040ez 2011 form   Other Section 501(c) Organizations Table of Contents Introduction 501(c)(4) - Civic Leagues and Social Welfare OrganizationsSpecific Organizations 501(c)(5) - Labor, Agricultural and Horticultural OrganizationsLabor Organizations Agricultural and Horticultural Organizations 501(c)(6) - Business Leagues, etc. Irs 1040ez 2011 form Line of business. Irs 1040ez 2011 form Examples. Irs 1040ez 2011 form Improvement of business conditions. Irs 1040ez 2011 form Exception for local legislation. Irs 1040ez 2011 form De minimis exception. Irs 1040ez 2011 form Grass roots lobbying. Irs 1040ez 2011 form 501(c)(7) - Social and Recreation ClubsLimited membership. Irs 1040ez 2011 form Support. Irs 1040ez 2011 form Facilities open to public. Irs 1040ez 2011 form Gross receipts from nonmembership sources. Irs 1040ez 2011 form Gross receipts. Irs 1040ez 2011 form Nontraditional activities. Irs 1040ez 2011 form 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal SocietiesFraternal Beneficiary Societies (501(c)(8)) Domestic Fraternal Societies (501(c)(10)) 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' AssociationsLocal Employees' Associations (501(c)(4)) Voluntary Employees' Beneficiary Associations (501(c)(9)) Supplemental Unemployment Benefit Trusts (501(c)(17)) 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like OrganizationsMembership. Irs 1040ez 2011 form Losses and expenses. Irs 1040ez 2011 form Distributions of proceeds. Irs 1040ez 2011 form The 85% Requirement Local Life Insurance Associations Mutual or Cooperative Associations 501(c)(13) - Cemetery CompaniesBuying cemetery property. Irs 1040ez 2011 form Perpetual care organization. Irs 1040ez 2011 form Care of individual plots. Irs 1040ez 2011 form 501(c)(14) - Credit Unions and Other Mutual Financial OrganizationsState-Chartered Credit Unions Other Mutual Financial Organizations 501(c)(19) - Veterans' Organizations 501(c)(20) - Group Legal Services Plan Organizations 501(c)(21) - Black Lung Benefit TrustsExcise taxes. Irs 1040ez 2011 form 501(c)(2) - Title-Holding Corporations for Single Parent CorporationsExpenses. Irs 1040ez 2011 form Waiver of payment of income. Irs 1040ez 2011 form 501(c)(25) - Title-Holding Corporations or Trusts for Multiple Parent CorporationsUnrelated Business Income 501(c)(26) - State-Sponsored High-Risk Health Coverage Organizations 501(c)(27) - Qualified State-Sponsored Workers' Compensation Organizations 501(c)(29) - CO-OP Health Insurance Issuers New Guidance for IRC 501(c)(29) Qualified Nonprofit Health Insurance Issuers General Requirements for Exemption under 501(c)(29) and Annual Filing Requirement Additional Guidance for Prospective 501(c)(29) Organizations Introduction This chapter contains specific information for certain organizations described in section 501(c), other than those organizations that are described in section 501(c)(3). Irs 1040ez 2011 form Section 501(c)(3) organizations are covered in chapter 3 of this publication. Irs 1040ez 2011 form The Table of Contents at the beginning of this publication, as well as the Organization Reference Chart, may help you locate at a glance the type of organization discussed in this chapter. Irs 1040ez 2011 form 501(c)(4) - Civic Leagues and Social Welfare Organizations If your organization is not organized for profit and will be operated primarily to promote social welfare to benefit the community, you should file Form 1024 to apply for recognition of exemption from federal income tax under section 501(c)(4). Irs 1040ez 2011 form The discussion that follows describes the information you must provide when applying. Irs 1040ez 2011 form For application procedures, see chapter 1. Irs 1040ez 2011 form To qualify for exemption under section 501(c)(4), the organization's net earnings must be devoted primarily to charitable, educational, or recreational purposes. Irs 1040ez 2011 form In addition, no part of the organization's net earnings can inure to the benefit of any private shareholder or individual. Irs 1040ez 2011 form If the organization provides an excess benefit to certain persons, an excise tax may be imposed. Irs 1040ez 2011 form See Excise tax on excess benefit transactions , under Excess Benefit Transactions in chapter 5 for more information about this tax. Irs 1040ez 2011 form Examples. Irs 1040ez 2011 form   Types of organizations that are considered to be social welfare organizations are civic associations and volunteer fire companies. Irs 1040ez 2011 form Nonprofit operation. Irs 1040ez 2011 form   You must submit evidence that your organization is organized and will be operated on a nonprofit basis. Irs 1040ez 2011 form However, such evidence, including the fact that your organization is organized under a state law relating to nonprofit corporations, will not in itself establish a social welfare purpose. Irs 1040ez 2011 form Social welfare. Irs 1040ez 2011 form   To establish that your organization is organized primarily to promote social welfare, you should submit evidence with your application showing that your organization will operate primarily to further (in some way) the common good and general welfare of the people of the community (such as by bringing about civic betterment and social improvements). Irs 1040ez 2011 form   An organization that restricts the use of its facilities to employees of selected corporations and their guests is primarily benefiting a private group rather than the community. Irs 1040ez 2011 form It therefore does not qualify as a section 501(c)(4) organization. Irs 1040ez 2011 form Similarly, an organization formed to represent member-tenants of an apartment complex does not qualify, since its activities benefit the member-tenants and not all tenants in the community. Irs 1040ez 2011 form However, an organization formed to promote the legal rights of all tenants in a particular community may qualify under section 501(c)(4) as a social welfare organization. Irs 1040ez 2011 form Political activity. Irs 1040ez 2011 form   Promoting social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office. Irs 1040ez 2011 form However, if you submit proof that your organization is organized primarily to promote social welfare, it can obtain exemption even if it participates legally in some political activity on behalf of or in opposition to candidates for public office. Irs 1040ez 2011 form See the discussion in chapter 2 under Political Organization Income Tax Return . Irs 1040ez 2011 form Social or recreational activity. Irs 1040ez 2011 form   If social activities will be the primary purpose of your organization, you should not file an application for exemption as a social welfare organization but should file for exemption as a social club described in section 501(c)(7). Irs 1040ez 2011 form Retirement benefit program. Irs 1040ez 2011 form   An organization established by its members that has as its primary activity providing supplemental retirement benefits to its members or death benefits to their beneficiaries does not qualify as an exempt social welfare organization. Irs 1040ez 2011 form It may qualify under another paragraph of section 501(c) depending on all the facts. Irs 1040ez 2011 form   However, a nonprofit association that is established, maintained, and funded by a local government to provide the only retirement benefits to a class of employees may qualify as a social welfare organization under section 501(c)(4). Irs 1040ez 2011 form Tax treatment of donations. Irs 1040ez 2011 form   Donations to volunteer fire companies are deductible on the donor's federal income tax return, but only if made for exclusively public purposes. Irs 1040ez 2011 form Contributions to civic leagues or other section 501(c)(4) organizations generally are not deductible as charitable contributions for federal income tax purposes. Irs 1040ez 2011 form They may be deductible as trade or business expenses, if ordinary and necessary in the conduct of the taxpayer's business. Irs 1040ez 2011 form However, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Irs 1040ez 2011 form for more information. Irs 1040ez 2011 form For more information on social welfare organizations, see Life Cycle of a Social Welfare Organization at IRS. Irs 1040ez 2011 form gov. Irs 1040ez 2011 form Specific Organizations The following information should be contained in the application form and accompanying statements of certain types of civic leagues or social welfare organizations. Irs 1040ez 2011 form Volunteer fire companies. Irs 1040ez 2011 form   If your organization wishes to obtain exemption as a volunteer fire company or similar organization, you should submit evidence that its members are actively engaged in fire fighting and similar disaster assistance, whether it actually owns the fire fighting equipment, and whether it provides any assistance for its members, such as death and medical benefits in case of injury to them. Irs 1040ez 2011 form   If your organization does not have an independent social purpose, such as providing recreational facilities for members, it may be exempt under section 501(c)(3). Irs 1040ez 2011 form In this event, your organization should file Form 1023. Irs 1040ez 2011 form Homeowners' associations. Irs 1040ez 2011 form   A membership organization formed by a real estate developer to own and maintain common green areas, streets, and sidewalks and to enforce covenants to preserve the appearance of the development should show that it is operated for the benefit of all the residents of the community. Irs 1040ez 2011 form The term community generally refers to a geographical unit recognizable as a governmental subdivision, unit, or district thereof. Irs 1040ez 2011 form Whether a particular association meets the requirement of benefiting a community depends on the facts and circumstances of each case. Irs 1040ez 2011 form Even if an area represented by an association is not a community, the association can still qualify for exemption if its activities benefit a community. Irs 1040ez 2011 form   The association should submit evidence that areas such as roadways and park land that it owns and maintains are open to the general public and not just its own members. Irs 1040ez 2011 form It also must show that it does not engage in exterior maintenance of private homes. Irs 1040ez 2011 form   A homeowners' association that is not exempt under section 501(c)(4) and that is a condominium management association, a residential real estate management association, or a timeshare association generally can elect under the provisions of section 528 to receive certain tax benefits that, in effect, permit it to exclude its exempt function income from its gross income. Irs 1040ez 2011 form Other organizations. Irs 1040ez 2011 form   Other nonprofit organizations that qualify as social welfare organizations include: An organization operating an airport that is on land owned by a local government, which supervises the airport's operation, and that serves the general public in an area with no other airport, A community association that works to improve public services, housing, and residential parking; publishes a free community newspaper; sponsors a community sports league, holiday programs, and meetings; and contracts with a private security service to patrol the community, A community association devoted to preserving the community's traditions, architecture, and appearance by representing it before the local legislature and administrative agencies in zoning, traffic, and parking matters, An organization that tries to encourage industrial development and relieve unemployment in an area by making loans to businesses so they will relocate to the area, and An organization that holds an annual festival of regional customs and traditions. Irs 1040ez 2011 form 501(c)(5) - Labor, Agricultural and Horticultural Organizations If you are a member of an organization that wants to obtain recognition of exemption from federal income tax as a labor, agricultural, or horticultural organization, you should submit an application on Form 1024. Irs 1040ez 2011 form You must indicate in your application for exemption and accompanying statements that no part of the organization's net earnings will inure to the benefit of any member. Irs 1040ez 2011 form In addition, you should follow the procedure for obtaining recognition of exempt status described in chapter 1. Irs 1040ez 2011 form Submit any additional information that may be required, as described in this section. Irs 1040ez 2011 form Tax treatment of donations. Irs 1040ez 2011 form   Contributions to labor, agricultural, and horticultural organizations are not deductible as charitable contributions on the donor's federal income tax return. Irs 1040ez 2011 form However, such payments may be deductible as business expenses if they are ordinary and necessary in the conduct of the taxpayer's trade or business. Irs 1040ez 2011 form For more information about certain limits affecting the deductibility of these business expenses, see Deduction not allowed for dues used for political or legislative activities , under 501(c)(6) - Business Leagues, etc. Irs 1040ez 2011 form Labor Organizations A labor organization is an association of workers who have combined to protect and promote the interests of the members by bargaining collectively with their employers to secure better working conditions. Irs 1040ez 2011 form To show that your organization has the purpose of a labor organization, you should include in the articles of organization or accompanying statements (submitted with your exemption application) information establishing that the organization is organized to better the conditions of workers, improve the grade of their products, and develop a higher degree of efficiency in their respective occupations. Irs 1040ez 2011 form In addition, no net earnings of the organization can inure to the benefit of any member. Irs 1040ez 2011 form Composition of membership. Irs 1040ez 2011 form   While a labor organization generally is composed of employees or representatives of the employees (in the form of collective bargaining agents) and similar employee groups, evidence that an organization's membership consists mainly of workers does not in itself indicate an exempt purpose. Irs 1040ez 2011 form You must show in your application that your organization has the purposes described in the preceding paragraph. Irs 1040ez 2011 form These purposes can be accomplished by a single labor organization acting alone or by several organizations acting together through a separate organization. Irs 1040ez 2011 form Benefits to members. Irs 1040ez 2011 form   The payment by a labor organization of death, sick, accident, and similar benefits to its individual members with funds contributed by its members, if made under a plan to better the conditions of the members, does not preclude exemption as a labor organization. Irs 1040ez 2011 form However, an organization does not qualify for exemption as a labor organization if it has no authority to represent members in job-related matters, even if it provides weekly income to its members in the event of a lawful strike by the members' union, in return for an annual payment by the member. Irs 1040ez 2011 form   For more information on labor organizations, see Life Cycle of a Labor Organization at IRS. Irs 1040ez 2011 form gov. Irs 1040ez 2011 form Agricultural and Horticultural Organizations Agricultural and horticultural organizations are connected with raising livestock, forestry, cultivating land, raising and harvesting crops or aquatic resources, cultivating useful or ornamental plants, and similar pursuits. Irs 1040ez 2011 form For the purpose of these provisions, aquatic resources include only animal or vegetable life, but not mineral resources. Irs 1040ez 2011 form The term harvesting, in this case, includes fishing and related pursuits. Irs 1040ez 2011 form Agricultural organizations can be quasi-public in character and are often designed to encourage the development of better agricultural and horticultural products through a system of awards, using income from entry fees, gate receipts, and donations to meet the necessary expenses of upkeep and operation. Irs 1040ez 2011 form When the activities are directed toward the improvement of marketing or other business conditions in one or more lines of business, rather than the improvement of production techniques or the betterment of the conditions of persons engaged in agriculture, the organization must qualify for exemption as a business league, board of trade, or other organization, as discussed next in the section on 501(c)(6) organizations. Irs 1040ez 2011 form The primary purpose of exempt agricultural and horticultural organizations must be to better the conditions of those engaged in agriculture or horticulture, develop more efficiency in agriculture or horticulture, or improve the products. Irs 1040ez 2011 form The following list contains some examples of activities that show an agricultural or horticultural purpose. Irs 1040ez 2011 form Promoting various cooperative agricultural, horticultural, and civic activities among rural residents by a state, farm, or home bureau. Irs 1040ez 2011 form Exhibiting livestock, farm products, and other characteristic features of agriculture and horticulture. Irs 1040ez 2011 form Testing soil for members and nonmembers of the farm bureau on a cost basis, the results of the tests and other recommendations being furnished to the community members to educate them in soil treatment. Irs 1040ez 2011 form Guarding the purity of a specific breed of livestock. Irs 1040ez 2011 form Encouraging improvements in the production of fish on privately owned fish farms. Irs 1040ez 2011 form Negotiating with processors for the price to be paid to members for their crops. Irs 1040ez 2011 form For more information on agricultural or horticultural organizations, see Life Cycle of an Agricultural or Horticultural Organization at IRS. Irs 1040ez 2011 form gov. Irs 1040ez 2011 form 501(c)(6) - Business Leagues, etc. Irs 1040ez 2011 form If your association wants to apply for recognition of exemption from federal income tax as a nonprofit business league, chamber of commerce, real estate board, or board of trade, it should file Form 1024. Irs 1040ez 2011 form For a discussion of the procedure to follow, see chapter 1. Irs 1040ez 2011 form Your organization must indicate in its application form and attached statements that no part of its net earnings will inure to the benefit of any private shareholder or individual and that it is not organized for profit or organized to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only sufficient income to be self-sustaining). Irs 1040ez 2011 form In addition, your organization must be primarily engaged in activities or functions that are the basis for its exemption. Irs 1040ez 2011 form It must be primarily supported by membership dues and other income from activities substantially related to its exempt purpose. Irs 1040ez 2011 form A business league, in general, is an association of persons having some common business interest, the purpose of which is to promote that common interest and not to engage in a regular business of a kind ordinarily carried on for profit. Irs 1040ez 2011 form Trade associations and professional associations are considered business leagues. Irs 1040ez 2011 form Chamber of commerce. Irs 1040ez 2011 form   A chamber of commerce usually is composed of the merchants and traders of a city. Irs 1040ez 2011 form Board of trade. Irs 1040ez 2011 form   A board of trade often consists of persons engaged in similar lines of business. Irs 1040ez 2011 form For example, a nonprofit organization formed to regulate the sale of a specified agricultural commodity to assure equal treatment of producers, warehouse workers, and buyers is a board of trade. Irs 1040ez 2011 form   Chambers of commerce and boards of trade usually promote the common economic interests of all the commercial enterprises in a given trade community. Irs 1040ez 2011 form Real estate board. Irs 1040ez 2011 form   A real estate board consists of members interested in improving the business conditions in the real estate field. Irs 1040ez 2011 form It is not organized for profit and no part of the net earnings inures to the benefit of any private shareholder or individual. Irs 1040ez 2011 form Professional football leagues. Irs 1040ez 2011 form   The Internal Revenue Code specifically defines professional football leagues as exempt organizations under section 501(c)(6). Irs 1040ez 2011 form They are exempt whether or not they administer a pension fund for football players. Irs 1040ez 2011 form General purpose. Irs 1040ez 2011 form   You must indicate in the material submitted with your application that your organization will be devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. Irs 1040ez 2011 form It must be shown that the conditions of a particular trade or the interests of the community will be advanced. Irs 1040ez 2011 form Merely indicating the name of the organization or the object of the local statute under which it is created is not enough to demonstrate the required general purpose. Irs 1040ez 2011 form Line of business. Irs 1040ez 2011 form   This term generally refers either to an entire industry or to all components of an industry within a geographic area. Irs 1040ez 2011 form It does not include a group composed of businesses that market a particular brand within an industry. Irs 1040ez 2011 form Common business interest. Irs 1040ez 2011 form   A common business interest of all members of the organization must be established by the application documents. Irs 1040ez 2011 form Examples. Irs 1040ez 2011 form   Activities that would tend to illustrate a common business interest are: Promotion of higher business standards and better business methods and encouragement of uniformity and cooperation by a retail merchants association, Education of the public in the use of credit, Establishment of uniform casualty rates and compilation of statistical information by an insurance rating bureau operated by casualty insurance companies, Establishment and maintenance of the integrity of a local commercial market, Operation of a trade publication primarily intended to benefit an entire industry, and Encouragement of the use of goods and services of an entire industry (such as a lawyer referral service whose main purpose is to introduce individuals to the use of the legal profession in the hope that they will enter into lawyer-client relationships on a paying basis as a result). Irs 1040ez 2011 form Improvement of business conditions. Irs 1040ez 2011 form   Generally, this must be shown to be the purpose of the organization. Irs 1040ez 2011 form This is not established by evidence of particular services that provide a convenience or economy to individual members in their businesses, such as advertising that carries the name of members, interest-free loans, assigning exclusive franchise areas, operation of a real estate multiple listing system, or operation of a credit reporting agency. Irs 1040ez 2011 form Stock or commodity exchange. Irs 1040ez 2011 form   A stock or commodity exchange is not a business league, chamber of commerce, real estate board, or board of trade and is not exempt under section 501(c)(6). Irs 1040ez 2011 form Legislative activity. Irs 1040ez 2011 form   An organization that is exempt under section 501(c)(6) can work for the enactment of laws to advance the common business interests of the organization's members. Irs 1040ez 2011 form Deduction not allowed for dues used for political or legislative activities. Irs 1040ez 2011 form   A taxpayer cannot deduct the part of dues or other payments to a business league, trade association, labor union, or similar organization that is reported to the taxpayer by the organization as having been used for any of the following activities. Irs 1040ez 2011 form Influencing legislation. Irs 1040ez 2011 form Participating or intervening in a political campaign for, or against, any candidate for public office. Irs 1040ez 2011 form Trying to influence the general public, or part of the general public, with respect to elections, legislative matters, or referendums (also known as grass roots lobbying). Irs 1040ez 2011 form Communicating directly with certain executive branch officials to try to influence their official actions or positions. Irs 1040ez 2011 form See Dues Used for Lobbying or Political Activities under Required Disclosures in chapter 2 for more information. Irs 1040ez 2011 form Exception for local legislation. Irs 1040ez 2011 form   Members can deduct dues (or assessments) to an organization that are for expenses of: Appearing before, submitting statements to, or sending communications to members of a local council or similar governing body with respect to legislation or proposed legislation of direct interest to the member, or Communicating information between the member and the organization with respect to local legislation or proposed legislation of direct interest to the organization or the member. Irs 1040ez 2011 form Legislation or proposed legislation is of direct interest to a taxpayer if it will, or can reasonably be expected to, affect the taxpayer's trade or business. Irs 1040ez 2011 form De minimis exception. Irs 1040ez 2011 form   In-house expenditures of $2,000 or less for the year for activities (1) – (4) listed earlier will not prevent a deduction for dues if the dues meet all other tests to be deductible as a business expense. Irs 1040ez 2011 form Grass roots lobbying. Irs 1040ez 2011 form   A tax-exempt trade association, labor union, or similar organization is considered to be engaging in grass roots lobbying if it contacts prospective members or calls upon its own members to contact their employees and customers for the purpose of urging such persons to communicate with their elected state or Congressional representatives to support the promotion, defeat, or repeal of legislation that is of direct interest to the organization. Irs 1040ez 2011 form Any dues or assessments directly related to such activities are not deductible by the taxpayer, since the individuals being contacted, who are not members of the organization, are a segment of the general public. Irs 1040ez 2011 form Tax treatment of donations. Irs 1040ez 2011 form   Contributions to organizations described in this section are not deductible as charitable contributions on the donor's federal income tax return. Irs 1040ez 2011 form They may be deductible as trade or business expenses if ordinary and necessary in the conduct of the taxpayer's business. Irs 1040ez 2011 form   For more information on business leagues, see Life Cycle of a Business League (Trade Association) on IRS. Irs 1040ez 2011 form gov. Irs 1040ez 2011 form 501(c)(7) - Social and Recreation Clubs If your club is organized for pleasure, recreation, and other similar nonprofitable purposes and substantially all of its activities are for these purposes, it should file Form 1024 to apply for recognition of exemption from federal income tax. Irs 1040ez 2011 form In applying for recognition of exemption, you should submit the information described in this section. Irs 1040ez 2011 form Also see chapter 1 for the procedures to follow. Irs 1040ez 2011 form Typical organizations that should file for recognition of exemption as social clubs include: College alumni associations that are not described in chapter 3 under Alumni association , College fraternities or sororities operating chapter houses for students, Country clubs, Amateur hunting, fishing, tennis, swimming, and other sport clubs, Dinner clubs that provide a meeting place, library, and dining room for members, Hobby clubs, Garden clubs, and Variety clubs. Irs 1040ez 2011 form Discrimination prohibited. Irs 1040ez 2011 form   Your organization will not be recognized as tax exempt if its charter, bylaws, or other governing instrument, or any written policy statement provides for discrimination against any person on the basis of race, color, or religion. Irs 1040ez 2011 form   However, a club that in good faith limits its membership to the members of a particular religion to further the teachings or principles of that religion and not to exclude individuals of a particular race or color will not be considered as discriminating on the basis of religion. Irs 1040ez 2011 form Also, the restriction on religious discrimination does not apply to a club that is an auxiliary of a fraternal beneficiary society (discussed later) if that society is described in section 501(c)(8) and exempt from tax under section 501(a) and limits its membership to the members of a particular religion. Irs 1040ez 2011 form Private benefit prohibited. Irs 1040ez 2011 form   No part of the organization's net earnings can inure to the benefit of any person having a personal and private interest in the activities of the organization. Irs 1040ez 2011 form For purposes of this requirement, it is not necessary that net earnings be actually distributed. Irs 1040ez 2011 form Even undistributed earnings can benefit members. Irs 1040ez 2011 form Examples of this include a decrease in membership dues or an increase in the services the club provides to its members without a corresponding increase in dues or other fees paid for club support. Irs 1040ez 2011 form However, fixed-fee payments to members who bring new members into the club are not an inurement of the club's net earnings, if the payments are reasonable compensation for performance of a necessary administrative service. Irs 1040ez 2011 form Purposes. Irs 1040ez 2011 form   To show that your organization possesses the characteristics of a club within the meaning of the exemption law, you should submit evidence with your application that personal contact, commingling, and fellowship exist among members. Irs 1040ez 2011 form You must show that members are bound together by a common objective of pleasure, recreation, and other nonprofitable purposes. Irs 1040ez 2011 form   Fellowship need not be present between each member and every other member of a club if it is a material part in the life of the organization. Irs 1040ez 2011 form A statewide or nationwide organization that is made up of individual members, but is divided into local groups, satisfies this requirement if fellowship is a material part of the life of each local group. Irs 1040ez 2011 form   The term other nonprofitable purposes means other purposes similar to pleasure and recreation. Irs 1040ez 2011 form For example, a club that, in addition to its social activities, has a plan for the payment of sick and death benefits is not operating exclusively for pleasure, recreation, and other nonprofitable purposes. Irs 1040ez 2011 form Limited membership. Irs 1040ez 2011 form   The membership in a social club must be limited. Irs 1040ez 2011 form To show that your organization has a purpose that would characterize it as a club, you should submit evidence with your application that there are limits on admission to membership consistent with the character of the club. Irs 1040ez 2011 form   A social club that issues corporate membership is dealing with the general public in the form of the corporation's employees. Irs 1040ez 2011 form Corporate members of a club are not the kind of members contemplated by the law. Irs 1040ez 2011 form Gross receipts from these members would be a factor in determining whether the club qualifies as a social club. Irs 1040ez 2011 form See Gross receipts from nonmembership sources , later. Irs 1040ez 2011 form Bona fide individual memberships paid for by a corporation would not have an effect on the gross receipts source. Irs 1040ez 2011 form   The fact that a social club may have an associate (nonvoting) class of membership will not be, in and of itself, a cause for nonrecognition of exemption. Irs 1040ez 2011 form However, if one membership class pays substantially lower dues and fees than another membership class, although both classes enjoy the same rights and privileges in using the club facilities, there may be an inurement of income to the benefited class, resulting in a denial of the club's exemption. Irs 1040ez 2011 form Support. Irs 1040ez 2011 form   In general, your club should be supported solely by membership fees, dues, and assessments. Irs 1040ez 2011 form However, if otherwise entitled to exemption, your club will not be disqualified because it raises revenue from members through the use of club facilities or in connection with club activities. Irs 1040ez 2011 form Business activities. Irs 1040ez 2011 form   If your club will engage in business, such as selling real estate, timber, or other products or services, it generally will be denied exemption. Irs 1040ez 2011 form However, evidence submitted with your application form that your organization will provide meals, refreshments, or services related to its exempt purposes only to its own members or their dependents or guests will not cause denial of exemption. Irs 1040ez 2011 form Facilities open to public. Irs 1040ez 2011 form   Evidence that your club's facilities will be open to the general public (persons other than members or their dependents or guests) may cause denial of exemption. Irs 1040ez 2011 form This does not mean, however, that any dealing with outsiders will automatically deprive a club of exemption. Irs 1040ez 2011 form Gross receipts from nonmembership sources. Irs 1040ez 2011 form   A section 501(c)(7) organization can receive up to 35% of its gross receipts, including investment income, from sources outside of its membership without losing its tax-exempt status. Irs 1040ez 2011 form Income from nontraditional business activity with members is not exempt function income, and thus is included as income from sources outside of the membership. Irs 1040ez 2011 form Of the 35% gross receipts listed above, up to 15% of the gross receipts can be derived from the use of the club's facilities or services by the general public. Irs 1040ez 2011 form If an organization has outside income that is more than these limits, all the facts and circumstances will be taken into account in determining whether the organization qualifies for exempt status. Irs 1040ez 2011 form Gross receipts. Irs 1040ez 2011 form   Gross receipts, for this purpose, are receipts from the normal and usual (traditionally conducted) activities of the club. Irs 1040ez 2011 form These receipts include charges, admissions, membership fees, dues, assessments, investment income, and normal recurring capital gains on investments. Irs 1040ez 2011 form Receipts do not include initiation fees and capital contributions. Irs 1040ez 2011 form Unusual amounts of income, such as from the sale of a clubhouse or similar facility, are not included in gross receipts or in figuring the percentage limits. Irs 1040ez 2011 form Nontraditional activities. Irs 1040ez 2011 form   Activities conducted by a social club need to further its exempt purposes. Irs 1040ez 2011 form Traditional business activities are those that further a social club's exempt purposes. Irs 1040ez 2011 form Nontraditional business activities do not further the exempt purposes of a social club even if conducted solely on a membership basis. Irs 1040ez 2011 form Nontraditional business activities are prohibited (subject to an insubstantial, trivial, and nonrecurrent test) for businesses conducted with both members and nonmembers. Irs 1040ez 2011 form Examples of nontraditional business activities include sale of package liquor, take-out food, and long-term room rental. Irs 1040ez 2011 form Fraternity foundations. Irs 1040ez 2011 form   If your organization is a foundation formed for the exclusive purpose of acquiring and leasing a chapter house to a local fraternity chapter or sorority chapter maintained at an educational institution and does not engage in any social or recreational activities, it may be a title holding corporation (discussed later under section 501(c)(2) organizations and under section 501(c)(25) organizations) rather than a social club. Irs 1040ez 2011 form Tax treatment of donations. Irs 1040ez 2011 form   Donations to exempt social and recreation clubs are not deductible as charitable contributions on the donor's federal income tax return. Irs 1040ez 2011 form 501(c)(8) and 501(c)(10) - Fraternal Beneficiary Societies and Domestic Fraternal Societies This section describes the information to be provided upon application for recognition of exemption by two types of fraternal societies: beneficiary and domestic. Irs 1040ez 2011 form The major distinction is that fraternal beneficiary societies provide for the payment of life, sick, accident, or other benefits to their members or their dependents, while domestic fraternal societies do not provide these benefits but rather devote their earnings to fraternal, religious, charitable, etc. Irs 1040ez 2011 form , purposes. Irs 1040ez 2011 form The procedures to follow in applying for recognition of exemption are described in chapter 1. Irs 1040ez 2011 form If your organization is controlled by a central organization, you should check with your controlling organization to determine whether your unit has been included in a group exemption letter or can be added. Irs 1040ez 2011 form If so, your organization need not apply for individual recognition of exemption. Irs 1040ez 2011 form For more information, see Group Exemption Letter in chapter 1 of this publication. Irs 1040ez 2011 form Tax treatment of donations. Irs 1040ez 2011 form   Donations by an individual to a domestic fraternal beneficiary society or a domestic fraternal society operating under the lodge system are deductible as charitable contributions only if used exclusively for religious, charitable, scientific, literary, or educational purposes or for the prevention of cruelty to children or animals. Irs 1040ez 2011 form Fraternal Beneficiary Societies (501(c)(8)) A fraternal beneficiary society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Irs 1040ez 2011 form The application and accompanying statements should establish that the organization: Is a fraternal organization, Operates under the lodge system or for the exclusive benefit of the members of a fraternal organization itself operating under the lodge system, and Provides for the payment of life, sick, accident, or other benefits to the members of the society, order, or association or their dependents. Irs 1040ez 2011 form Lodge system. Irs 1040ez 2011 form   Operating under the lodge system means carrying on activities under a form of organization that comprises local branches, chartered by a parent organization and largely self-governing, called lodges, chapters, or the like. Irs 1040ez 2011 form Payment of benefits. Irs 1040ez 2011 form   It is not essential that every member be covered by the society's program of sick, accident, or death benefits. Irs 1040ez 2011 form An organization can qualify for exemption if most of its members are eligible for benefits, and the benefits are paid from contributions or dues paid by those members. Irs 1040ez 2011 form   The benefits must be limited to members and their dependents. Irs 1040ez 2011 form If members will have the ability to confer benefits to other than themselves and their dependents, exemption will not be recognized. Irs 1040ez 2011 form Whole-life insurance. Irs 1040ez 2011 form   Whole-life insurance constitutes a life benefit under section 501(c)(8) even though the policy may contain investment features such as a cash surrender value or a policy loan. Irs 1040ez 2011 form Reinsurance pool. Irs 1040ez 2011 form   Payments by a fraternal beneficiary society into a state-sponsored reinsurance pool that protects participating insurers against excessive losses on major medical health and accident insurance will not preclude exemption as a fraternal beneficiary society. Irs 1040ez 2011 form Domestic Fraternal Societies (501(c)(10)) A domestic fraternal society, order, or association must file an application for recognition of exemption from federal income tax on Form 1024. Irs 1040ez 2011 form The application and accompanying statements should establish that the organization: Is a domestic fraternal organization organized in the U. Irs 1040ez 2011 form S. Irs 1040ez 2011 form , Operates under the lodge system, Devotes its net earnings exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes, and Does not provide for the payment of life, sick, accident, or other benefits to its members. Irs 1040ez 2011 form The organization can arrange with insurance companies to provide optional insurance to its members without jeopardizing its exempt status. Irs 1040ez 2011 form 501(c)(4), 501(c)(9), and 501(c)(17) - Employees' Associations This section describes the information to be provided upon application for recognition of exemption by the following types of employees' associations: A voluntary employees' beneficiary association (including federal employees' associations) organized to pay life, sick, accident, and similar benefits to members or their dependents, or designated beneficiaries, if no part of the net earnings of the association inures to the benefit of any private shareholder or individual, and A supplemental unemployment benefit trust whose primary purpose is providing for payment of supplemental unemployment benefits. Irs 1040ez 2011 form Both the application form to file and the information to provide are discussed later under the section that describes your employee association. Irs 1040ez 2011 form Chapter 1 describes the procedures to follow in applying for exemption. Irs 1040ez 2011 form Tax treatment of donations. Irs 1040ez 2011 form   Donations to these organizations are not deductible as charitable contributions on the donor's federal income tax return. Irs 1040ez 2011 form Local Employees' Associations (501(c)(4)) A local association of employees whose membership is limited to employees of a designated person or persons in a particular municipality, and whose income will be devoted exclusively to charitable, educational, or recreational purposes. Irs 1040ez 2011 form A local employees' association must apply for recognition of exemption by filing Form 1024. Irs 1040ez 2011 form The organization must submit evidence that: It is of a purely local character, Its membership is limited to employees of a designated person or persons in a particular locality, and Its net earnings will be devoted exclusively to charitable, educational, or recreational purposes. Irs 1040ez 2011 form A local association of employees that has established a system of paying retirement or death benefits, or both, to its members will not qualify for exemption since the payment of these benefits is not considered as being for charitable, educational, or recreational purposes. Irs 1040ez 2011 form Similarly, a local association of employees that is operated primarily as a cooperative buying service for its members in order to obtain discount prices on merchandise, services, and activities does not qualify for exemption. Irs 1040ez 2011 form Voluntary Employees' Beneficiary Associations (501(c)(9)) An application for recognition of exemption as a voluntary employees' beneficiary association must be filed on Form 1024. Irs 1040ez 2011 form The material submitted with the application must show that your organization: Is a voluntary association of employees, Will provide for payment of life, sick, accident, or other benefits to members or their dependents or designated beneficiaries and substantially all of its operations are for this purpose, and Will not allow any of its net earnings to inure to the benefit of any private individual or shareholder except in the form of scheduled benefit payments. Irs 1040ez 2011 form To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Irs 1040ez 2011 form Note. Irs 1040ez 2011 form Under section 4976, the reversion of funds from a section 501(c)(9) organization to the employer who created the beneficiary association may subject the employer to a 100% penalty excise tax on the amount of the reversion. Irs 1040ez 2011 form Notice requirement. Irs 1040ez 2011 form   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Irs 1040ez 2011 form The organization gives notice by filing Form 1024. Irs 1040ez 2011 form If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before notice is given. Irs 1040ez 2011 form An extension of time for filing the notice can be granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Irs 1040ez 2011 form Membership. Irs 1040ez 2011 form   Membership of a section 501(c)(9) organization must consist of individuals who are employees and have an employment-related common bond. Irs 1040ez 2011 form This common bond can be a common employer (or affiliated employers), coverage under one or more collective bargaining agreements, membership in a labor union, or membership in one or more locals of a national or international labor union. Irs 1040ez 2011 form   The membership of an association can include some individuals who are not employees, provided they have an employment-related bond with the employee-members. Irs 1040ez 2011 form For example, the owner of a business whose employees are members of the association can be a member. Irs 1040ez 2011 form An association will be considered composed of employees if 90% of its total membership on one day of each quarter of its tax year consists of employees. Irs 1040ez 2011 form Employees. Irs 1040ez 2011 form   Employees include individuals who became entitled to membership because they are or were employees. Irs 1040ez 2011 form For example, an individual will qualify as an employee even though the individual is on a leave of absence or has been terminated due to retirement, disability, or layoff. Irs 1040ez 2011 form   Generally, membership is voluntary if an affirmative act is required on the part of an employee to become a member. Irs 1040ez 2011 form Conversely, membership is involuntary if the designation as a member is due to employee status. Irs 1040ez 2011 form However, an association will be considered voluntary if employees are required to be members of the organization as a condition of their employment and they do not incur a detriment (such as a payroll deduction) as a result of their membership. Irs 1040ez 2011 form An employer has not imposed involuntary membership on the employee if membership is required as the result of a collective bargaining agreement or as an incident of membership in a labor organization. Irs 1040ez 2011 form Payment of benefits. Irs 1040ez 2011 form   The information submitted with your application must show that your organization will pay life, sick, accident, supplemental unemployment, or other similar benefits. Irs 1040ez 2011 form The benefits can be provided directly by your association or indirectly by your association through the payments of premiums to an insurance company (or fees to a medical clinic). Irs 1040ez 2011 form Benefits can be in the form of medical, clinical, or hospital services, transportation furnished for medical care, or money payments. Irs 1040ez 2011 form Nondiscrimination requirements. Irs 1040ez 2011 form   An organization that is part of a plan will not be exempt unless the plan meets certain nondiscrimination requirements. Irs 1040ez 2011 form However, if the organization is part of a plan that is a collective bargaining agreement that was the subject of good faith bargaining between employee organizations and employers, the plan need not meet these requirements for the organization to qualify as tax exempt. Irs 1040ez 2011 form   A plan meets the nondiscrimination requirements only if both of the following statements are true. Irs 1040ez 2011 form Each class of benefits under the plan is provided under a classification of employees that is set forth in the plan and does not discriminate in favor of employees who are highly compensated individuals. Irs 1040ez 2011 form The benefits provided under each class of benefits do not discriminate in favor of highly compensated individuals. Irs 1040ez 2011 form A life insurance, disability, severance pay, or supplemental unemployment compensation benefit does not discriminate in favor of highly compensated individuals merely because the benefits available bear a uniform relationship to the total compensation, or the basic or regular rate of compensation, of employees covered by the plan. Irs 1040ez 2011 form   For purposes of determining whether a plan meets the nondiscrimination requirements, the employer can elect to exclude all disability or severance payments payable to individuals who are in pay status as of January 1, 1985. Irs 1040ez 2011 form This will not apply to any increase in such payment by any plan amendment adopted after June 22, 1984. Irs 1040ez 2011 form   If a plan provides a benefit for which there is a nondiscrimination provision provided under Chapter 1 of the Internal Revenue Code as a condition of that benefit being excluded from gross income, these nondiscrimination requirements do not apply. Irs 1040ez 2011 form The benefit will be considered nondiscriminatory only if it meets the nondiscrimination provision of the applicable Code section. Irs 1040ez 2011 form For example, benefits provided under a medical reimbursement plan would meet the nondiscrimination requirements for an association, if the benefits meet the nondiscrimination requirements of section 105(h)(3) and 105(h)(4). Irs 1040ez 2011 form Excluded employees. Irs 1040ez 2011 form   Certain employees who are not covered by a plan can be excluded from consideration in applying these requirements. Irs 1040ez 2011 form These include employees: Who have not completed 3 years of service, Who have not attained age 21, Who are seasonal or less than half-time employees, Who are not in the plan and who are included in a unit of employees covered by a collective bargaining agreement if the class of benefits involved was the subject of good faith bargaining, or Who are nonresident aliens and who receive no earned income from the employer that has United States source income. Irs 1040ez 2011 form Highly compensated individual. Irs 1040ez 2011 form   A highly compensated individual is one who: Owned 5 percent or more of the employer at any time during the current year or the preceding year, Received more than $115,000 in compensation from the employer for the preceding year (the amount is annualized for inflation. Irs 1040ez 2011 form Go to IRS. Irs 1040ez 2011 form gov, and search “Pension Plan Limitation” for the year), and Was among the top 20% of employees by compensation for the preceding year. Irs 1040ez 2011 form However, the employer can choose not to have (3) apply. Irs 1040ez 2011 form Aggregation rules. Irs 1040ez 2011 form   The employer can choose to treat two or more plans as one plan for purposes of meeting the nondiscrimination requirements. Irs 1040ez 2011 form Employees of controlled groups of corporations, trades, or businesses under common control, or members of an affiliated service group, are treated as employees of a single employer. Irs 1040ez 2011 form Leased employees are treated as employees of the recipient. Irs 1040ez 2011 form One employee. Irs 1040ez 2011 form   A trust created to provide benefits to one employee will not qualify as a voluntary employees' beneficiary association under section 501(c)(9). Irs 1040ez 2011 form Supplemental Unemployment Benefit Trusts (501(c)(17)) A trust or trusts forming part of a written plan (established and maintained by an employer, his or her employees, or both) providing solely for the payment of supplemental unemployment compensation benefits must file the application for recognition of exemption on Form 1024. Irs 1040ez 2011 form The trust must be a valid, existing trust under local law and must be evidenced by an executed document. Irs 1040ez 2011 form A conformed copy of the plan of which the trust is a part should be attached to the application. Irs 1040ez 2011 form To be complete, an application must include a copy of the document (such as the trust instrument) by which the organization was created; a full description of the benefits available to participants and the terms and conditions of eligibility for benefits (usually contained in a plan document); and, if providing benefits pursuant to a collective bargaining agreement, a copy of that agreement. Irs 1040ez 2011 form Note. Irs 1040ez 2011 form Under section 4976, the reversion of funds from a section 501(c)(17) organization to the employer who created the supplemental unemployment benefit trust may subject the employer to a 100% penalty excise tax on the amount of the reversion. Irs 1040ez 2011 form Notice requirement. Irs 1040ez 2011 form   An organization will not be considered tax exempt under this section unless the organization gives notice to the IRS that it is applying for recognition of exempt status. Irs 1040ez 2011 form The organization gives notice by filing Form 1024. Irs 1040ez 2011 form If the notice is not given by 15 months after the end of the month in which the organization was created, the organization will not be exempt for any period before such notice is given. Irs 1040ez 2011 form An extension of time for filing the notice is granted under the same procedures as those described for section 501(c)(3) organizations in chapter 3 under Application for Recognition of Exemption . Irs 1040ez 2011 form Types of payments. Irs 1040ez 2011 form   You must show that the supplemental unemployment compensation benefits will be benefits paid to an employee because of the employee's involuntary separation from employment (whether or not the separation is temporary) resulting directly from a reduction-in-force, discontinuance of a plant or operation, or other similar conditions. Irs 1040ez 2011 form In addition, sickness and accident benefits (but not vacation, retirement, or death benefits) may be included in the plan if these are subordinate to the unemployment compensation benefits. Irs 1040ez 2011 form Diversion of funds. Irs 1040ez 2011 form   It must be impossible under the plan (at any time before the satisfaction of all liabilities with respect to employees under the plan) to use or to divert any of the corpus or income of the trust to any purpose other than the payment of supplemental unemployment compensation benefits (or sickness or accident benefits to the extent just explained). Irs 1040ez 2011 form Discrimination in benefits. Irs 1040ez 2011 form   Neither the terms of the plan nor the actual payment of benefits can be discriminatory in favor of the company's officers, stockholders, supervisors, or highly paid employees. Irs 1040ez 2011 form However, a plan is not discriminatory merely because benefits bear a uniform relationship to compensation or the rate of compensation. Irs 1040ez 2011 form Prohibited transactions and exemption. Irs 1040ez 2011 form   If your organization is a supplemental unemployment benefit trust and has received a denial of exemption because it engaged in a prohibited transaction, as defined by section 503(b), it can file a claim for exemption in any tax year following the tax year in which the notice of denial was issued. Irs 1040ez 2011 form It must file the claim on Form 1024. Irs 1040ez 2011 form The organization must include a written declaration that it will not knowingly again engage in a prohibited transaction. Irs 1040ez 2011 form An authorized principal officer of your organization must make this declaration under the penalties of perjury. Irs 1040ez 2011 form   If your organization has satisfied all requirements as a supplemental unemployment benefit trust described in section 501(c)(17), it will be notified in writing that it has been recognized as exempt. Irs 1040ez 2011 form However, the organization will be exempt only for those tax years after the tax year in which the claim for exemption (Form 1024) is filed. Irs 1040ez 2011 form Tax year in this case means the established annual accounting period of the organization or, if the organization has not established an annual accounting period, the calendar year. Irs 1040ez 2011 form For more information about the requirements for reestablishing an exemption previously denied, contact the IRS. Irs 1040ez 2011 form 501(c)(12) - Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like Organizations Each of the following organizations apply for recognition of exemption from federal income tax by filing Form 1024. Irs 1040ez 2011 form Benevolent life insurance associations of a purely local character and like organizations. Irs 1040ez 2011 form Mutual ditch or irrigation companies and like organizations. Irs 1040ez 2011 form Mutual or cooperative telephone companies and like organizations. Irs 1040ez 2011 form A like organization is an organization that performs a service comparable to that performed by any one of the above organizations. Irs 1040ez 2011 form The information to be provided upon application by each of these organizations is described in this section. Irs 1040ez 2011 form For information as to the procedures to follow in applying for exemption, see chapter 1. Irs 1040ez 2011 form General requirements. Irs 1040ez 2011 form   These organizations must use their income solely to cover losses and expenses, with any excess being returned to members or retained to cover future losses and expenses. Irs 1040ez 2011 form They must collect at least 85% of their income from members for the sole purpose of meeting losses and expenses. Irs 1040ez 2011 form Mutual character. Irs 1040ez 2011 form   These organizations, other than benevolent life insurance associations, must be organized and operated on a mutual or cooperative basis. Irs 1040ez 2011 form They are associations of persons or organizations, or both, banded together to provide themselves a mutually desirable service approximately at cost and on a mutual basis. Irs 1040ez 2011 form To maintain the mutual characteristic of democratic ownership and control, they must be so organized and operated that their members have the right to choose the management, to receive services at cost, to receive a return of any excess of payments over losses and expenses, and to share in any assets upon dissolution. Irs 1040ez 2011 form   The rights and interests of members in the annual savings of the organization must be determined in proportion to their business with the organization. Irs 1040ez 2011 form Upon dissolution, gains from the sale of appreciated assets must be distributed to all persons who were members during the period the assets were owned by the organization in proportion to the amount of business done during that period. Irs 1040ez 2011 form The bylaws must not provide for forfeiture of a member's rights and interest upon withdrawal or termination. Irs 1040ez 2011 form Membership. Irs 1040ez 2011 form   Membership of a mutual organization consists of those who join the organization to obtain its services, and have a voice in its management. Irs 1040ez 2011 form In a stock company, the stockholders are members. Irs 1040ez 2011 form However, a mutual life insurance organization cannot have policyholders other than its members. Irs 1040ez 2011 form Losses and expenses. Irs 1040ez 2011 form   In furnishing services substantially at cost, an organization must use its income solely for paying losses and expenses. Irs 1040ez 2011 form Any excess income not retained in reasonable reserves for future losses and expenses belongs to members in proportion to their patronage or business done with the organization. Irs 1040ez 2011 form If such patronage refunds are retained in reasonable amounts for purposes of expanding and improving facilities, retiring capital indebtedness, acquiring other assets, and unexpected expenses, the organization must maintain records sufficient to reflect the equity of each member in the assets acquired with the funds. Irs 1040ez 2011 form Distributions of proceeds. Irs 1040ez 2011 form   The cooperative may distribute the unexpended balance of collections or assessments remaining on hand at the end of the year to members or patrons prorated on the basis of their patronage or business done with the cooperative. Irs 1040ez 2011 form Such distribution represents a refund in the costs of services rendered to the member. Irs 1040ez 2011 form The 85% Requirement All of the organizations listed above must submit evidence with their application that they receive 85% or more of their gross income from their members for the sole purpose of meeting losses and expenses. Irs 1040ez 2011 form Nevertheless, certain items of income are excluded from the computation of the 85% requirement if the organization is a mutual or cooperative telephone or electric company. Irs 1040ez 2011 form Mutual or cooperative telephone company. Irs 1040ez 2011 form   A mutual or cooperative telephone company will exclude from the computation of the 85% requirement any income received or accrued from: A nonmember telephone company for the performance of communication services involving the completion of long distance calls to, from, or between members of the mutual or cooperative telephone company, Qualified pole rentals, The sale of display listings in a directory furnished to its members, or The prepayment of a loan created in 1987, 1988, or 1989, under section 306A, 306B, or 311 of the Rural Electrification Act of 1936. Irs 1040ez 2011 form Mutual or cooperative electric company. Irs 1040ez 2011 form   A mutual or cooperative electric company will exclude from the computation of the 85% requirement any income received or accrued from: Qualified pole rentals, Any provision or sale of electric energy transmission services or ancillary service if the services are provided on a nondiscriminatory open access basis under an open access transmission tariff approved or accepted by the Federal Energy Regulatory Commission (FERC) or under an independent transmission provider agreement approved or accepted by FERC (other than income received or accrued directly or indirectly from a member), The provision or sale of electric energy distribution services or ancillary services if the services are provided on a nondiscriminatory open-access basis to distribute electric energy not owned by the mutual or electric cooperative company: To end-users who are served by distribution facilities not owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), or Generated by a generation facility not owned or leased by the company or any of its members and which is directly connected to distribution facilities owned by the company or any of its members (other than income received or accrued directly or indirectly from a member), Any nuclear decommissioning transaction, or Any asset exchange or conversion transaction. Irs 1040ez 2011 form   An electric cooperative's sale of excess fuel at cost in the year of purchase is not income for purposes of determining compliance with the 85% requirement. Irs 1040ez 2011 form Qualified pole rental. Irs 1040ez 2011 form   The term qualified pole rental means any rental of a pole (or other structure used to support wires) if the pole (or other structure) is used: By the telephone or electric company to support one or more wires that are used by the company in providing telephone or electric services to its members, and Pursuant to the rental to support one or more wires (in addition to wires described in (1)) for use in connection with the transmission by wire of electricity or of telephone or other communications. Irs 1040ez 2011 form   The term rental, for this purpose, includes any sale of the right to use the pole (or other structure). Irs 1040ez 2011 form The 85% requirement is applied on the basis of an annual accounting period. Irs 1040ez 2011 form Failure of an organization to meet the requirement in a particular year precludes exemption for that year, but has no effect upon exemption for years in which the 85% requirement is met. Irs 1040ez 2011 form Gain from the sale or conversion of the organization's property is not considered an amount received from members in determining whether the organization's income consists of amounts collected from members. Irs 1040ez 2011 form Because the 85% income test is based on gross income, capital losses cannot be used to reduce capital gains for purposes of this test. Irs 1040ez 2011 form Example. Irs 1040ez 2011 form   The books of an organization reflect the following for the calendar year. Irs 1040ez 2011 form Collections from members $2,400 Short-term capital gains 600 Short-term capital losses 400 Other income None Gross income ($2,400 + $600 =$3000) 100% Collected from members ($2,400) 80%   Since amounts collected from members do not constitute at least 85% of gross income, the organization is not entitled to exemption from federal income tax for the year. Irs 1040ez 2011 form   Voluntary contributions in the nature of gifts are not taken into account for purposes of the 85% computation. Irs 1040ez 2011 form   Other tax-exempt income besides gifts is considered as income received from other than members in applying the 85% test. Irs 1040ez 2011 form   If the 85% test is not met, your organization, if classifiable under this section, will not qualify for exemption as any other type of organization described in this publication. Irs 1040ez 2011 form Tax treatment of donations. Irs 1040ez 2011 form   Donations to an organization described in this section are not deductible as charitable contributions on the donor's federal income tax return. Irs 1040ez 2011 form Local Life Insurance Associations A benevolent life insurance association or an organization seeking recognition of exemption on grounds of similarity to a benevolent life insurance association must submit evidence upon applying for recognition of exemption that it will be of a purely local character, that its excess funds will be refunded to members or retained in reasonable reserves to meet future losses and expenses, and that it meets the 85% income requirement. Irs 1040ez 2011 form If an organization issues policies for stipulated cash premiums, or if it requires advance deposits to cover the cost of the insurance and maintains investments from which more than 15% of its income is derived, it will not be entitled to exemption. Irs 1040ez 2011 form To establish that your organization is of a purely local character, it should show that its activities will be confined to a particular community, place, or district irrespective of political subdivisions. Irs 1040ez 2011 form If the activities of an organization are limited only by the borders of a state, it cannot be purely local in character. Irs 1040ez 2011 form A benevolent life insurance association that does not terminate membership when a member moves from the local area in which the association operates will qualify for exemption if it meets the other requirements. Irs 1040ez 2011 form A copy of each type of policy issued by your organization should be included with the application for recognition of exemption. Irs 1040ez 2011 form Organizations similar to local benevolent life insurance companies. Irs 1040ez 2011 form   These organizations include those that in addition to paying death benefits also provide for the payment of sick, accident, or health benefits. Irs 1040ez 2011 form However, an organization that pays only sick, accident, or health benefits, but not life insurance benefits, is not an organization similar to a benevolent life insurance association and should not apply for recognition of exemption as described in this section. Irs 1040ez 2011 form Burial and funeral benefit insurance organization. Irs 1040ez 2011 form   This type of organization can apply for recognition of exemption as an organization similar to a benevolent life insurance company if it establishes that the benefits are paid in cash and if it is not engaged directly in the manufacture of funeral supplies or the performance of funeral services. Irs 1040ez 2011 form An organization that provides its benefits in the form of supplies and service is not a life insurance company. Irs 1040ez 2011 form Such an organization can seek recognition of exemption from federal income tax, however, as a mutual insurance company other than life. Irs 1040ez 2011 form Mutual or Cooperative Associations Mutual ditch or irrigation companies, mutual or cooperative telephone companies, and like organizations need not establish that they are of a purely local character. Irs 1040ez 2011 form They can serve noncontiguous areas. Irs 1040ez 2011 form Like organization. Irs 1040ez 2011 form   A like organization is a cooperative or mutual organization that performs a service similar to mutual ditch, irrigation, telephone, or electric companies. Irs 1040ez 2011 form Examples include the following: cooperatives that provide protection of river banks to prevent erosion, water and sewer services, cable television, satellite, television, cellular phone services, two-way radio service, or natural gas services. Irs 1040ez 2011 form 501(c)(13) - Cemetery Companies If your organization wishes to obtain recognition of exemption from federal income tax as a cemetery company or a corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, it must file an application on Form 1024. Irs 1040ez 2011 form For the procedure to follow to file an application, see Application, Approval, and Appeal Procedures in chapter 1. Irs 1040ez 2011 form A nonprofit mutual cemetery company that seeks recognition of exemption should submit evidence with its application that it is owned and operated exclusively for the benefit of its lot owners who hold lots for bona fide burial purposes and not for purposes of resale. Irs 1040ez 2011 form A mutual cemetery company that also engages in charitable activities, such as the burial of paupers, will be regarded as operating within this standard. Irs 1040ez 2011 form The fact that a mutual cemetery company limits its membership to a particular class of individuals, such as members of a family, will not affect its status as mutual so long as all the other requirements of section 501(c)(13) are met. Irs 1040ez 2011 form If your organization is a nonprofit corporation chartered solely for the purpose of the disposal of human bodies by burial or cremation, you should show that it is not permitted by its charter to engage in any business not necessarily incident to that purpose. Irs 1040ez 2011 form Operating a mortuary is not permitted. Irs 1040ez 2011 form However, selling monuments, markers, vaults, and flowers solely for use in the cemetery is permitted if the profits from these sales are used to maintain the cemetery as a whole. Irs 1040ez 2011 form How income can be used. Irs 1040ez 2011 form   You should show that your organization's earnings are or will be used only in one or more of the following ways. Irs 1040ez 2011 form To pay the ordinary and necessary expenses of operating, maintaining, and improving the cemetery or crematorium. Irs 1040ez 2011 form To buy cemetery property. Irs 1040ez 2011 form To create a fund that will provide a source of income for the perpetual care of the cemetery or a reasonable reserve for any ordinary or necessary purpose. Irs 1040ez 2011 form No part of the net earnings of your organization can inure to the benefit of any private shareholder or individual. Irs 1040ez 2011 form Ordinary and necessary expenses in connection with the operation, management, maintenance, and improvement of the cemetery are permitted, as are reasonable fees for the services of a manager. Irs 1040ez 2011 form Buying cemetery property. Irs 1040ez 2011 form   Payments can be made to amortize debt incurred to buy land, but cannot be in the nature of profit distributions. Irs 1040ez 2011 form You must show the method used to finance the purchase of the cemetery property and that the purchase price of the land at the time of its sale to the cemetery was not unreasonable. Irs 1040ez 2011 form   Except for holders of preferred stock (discussed later), no person can have any interest in the net earnings of a tax-exempt cemetery company or crematorium. Irs 1040ez 2011 form Therefore, if property is transferred to the organization in exchange for an interest in the organization's net earnings, the organization will not