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Self Employment Tax

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Self Employment Tax

Self employment tax 11. Self employment tax   Social Security and Equivalent Railroad Retirement Benefits Table of Contents Introduction Useful Items - You may want to see: Are Any of Your Benefits Taxable? How To Report Your BenefitsHow Much Is Taxable? Examples Deductions Related to Your BenefitsRepayments More Than Gross Benefits Introduction This chapter explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. Self employment tax It explains the following topics. Self employment tax How to figure whether your benefits are taxable. Self employment tax How to use the social security benefits worksheet (with examples). Self employment tax How to report your taxable benefits. Self employment tax How to treat repayments that are more than the benefits you received during the year. Self employment tax Social security benefits include monthly retirement, survivor, and disability benefits. Self employment tax They do not include supplemental security income (SSI) payments, which are not taxable. Self employment tax Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. Self employment tax They are commonly called the social security equivalent benefit (SSEB) portion of tier 1 benefits. Self employment tax If you received these benefits during 2013, you should have received a Form SSA-1099, Social Security Benefit Statement, or Form RRB-1099, Payments by the Railroad Retirement Board. Self employment tax These forms show the amounts received and repaid, and taxes withheld for the year. Self employment tax You may receive more than one of these forms for the same year. Self employment tax You should add the amounts shown on all the Forms SSA-1099 and Forms RRB-1099 you receive for the year to determine the total amounts received and repaid, and taxes withheld for that year. Self employment tax See the Appendix at the end of Publication 915 for more information. Self employment tax Note. Self employment tax When the term “benefits” is used in this chapter, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. Self employment tax What is not covered in this chapter. Self employment tax   This chapter does not cover the tax rules for the following railroad retirement benefits. Self employment tax Non-social security equivalent benefit (NSSEB) portion of tier 1 benefits. Self employment tax Tier 2 benefits. Self employment tax Vested dual benefits. Self employment tax Supplemental annuity benefits. Self employment tax For information on these benefits, see Publication 575, Pension and Annuity Income. Self employment tax   This chapter does not cover the tax rules for social security benefits reported on Form SSA-1042S, Social Security Benefit Statement, or Form RRB-1042S, Statement for Nonresident Alien Recipients of: Payments by the Railroad Retirement Board. Self employment tax For information about these benefits, see Publication 519, U. Self employment tax S. Self employment tax Tax Guide for Aliens, and Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Self employment tax   This chapter also does not cover the tax rules for foreign social security benefits. Self employment tax These benefits are taxable as annuities, unless they are exempt from U. Self employment tax S. Self employment tax tax or treated as a U. Self employment tax S. Self employment tax social security benefit under a tax treaty. Self employment tax Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) 915 Social Security and Equivalent Railroad Retirement Benefits Forms (and Instructions) 1040-ES Estimated Tax for Individuals SSA-1099 Social Security Benefit Statement RRB-1099 Payments by the Railroad Retirement Board W-4V Voluntary Withholding Request Are Any of Your Benefits Taxable? To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. Self employment tax When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Self employment tax S. Self employment tax savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned by bona fide residents of American Samoa or Puerto Rico. Self employment tax Children's benefits. Self employment tax   The rules in this chapter apply to benefits received by children. Self employment tax See Who is taxed , later. Self employment tax Figuring total income. Self employment tax   To figure the total of one-half of your benefits plus your other income, use Worksheet 11-1 later in this discussion. Self employment tax If the total is more than your base amount, part of your benefits may be taxable. Self employment tax    If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. Self employment tax Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. Self employment tax    If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. Self employment tax If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Self employment tax Base amount. Self employment tax   Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er), $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $-0- if you are married filing separately and lived with your spouse at any time during 2013. Self employment tax Worksheet 11-1. Self employment tax   You can use Worksheet 11-1 to figure the amount of income to compare with your base amount. Self employment tax This is a quick way to check whether some of your benefits may be taxable. Self employment tax Worksheet 11-1. Self employment tax A Quick Way To Check if Your Benefits May Be Taxable A. Self employment tax Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Self employment tax Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Self employment tax (If you received more than one form, combine the amounts from box 5 and enter the total. Self employment tax ) A. Self employment tax   Note. Self employment tax If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Self employment tax B. Self employment tax Enter one-half of the amount on line A B. Self employment tax   C. Self employment tax Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Self employment tax   D. Self employment tax Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Self employment tax   E. Self employment tax Add lines B, C, and D E. Self employment tax   Note. Self employment tax Compare the amount on line E to your base amount for your filing status. Self employment tax If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. Self employment tax If the amount on line E is more than your base amount, some of your benefits may be taxable. Self employment tax You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Self employment tax If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits. Self employment tax Example. Self employment tax You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. Self employment tax In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. Self employment tax Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. Self employment tax You also received a taxable pension of $22,800 and interest income of $500. Self employment tax You did not have any tax-exempt interest income. Self employment tax Your benefits are not taxable for 2013 because your income, as figured in Worksheet 11-1, is not more than your base amount ($32,000) for married filing jointly. Self employment tax Even though none of your benefits are taxable, you must file a return for 2013 because your taxable gross income ($23,300) exceeds the minimum filing requirement amount for your filing status. Self employment tax Filled-in Worksheet 11-1. Self employment tax A Quick Way To Check if Your Benefits May Be Taxable A. Self employment tax Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Self employment tax Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Self employment tax (If you received more than one form, combine the amounts from box 5 and enter the total. Self employment tax ) A. Self employment tax $11,000 Note. Self employment tax If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Self employment tax B. Self employment tax Enter one-half of the amount on line A B. Self employment tax 5,500 C. Self employment tax Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Self employment tax 23,300 D. Self employment tax Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Self employment tax -0- E. Self employment tax Add lines B, C, and D E. Self employment tax $28,800 Note. Self employment tax Compare the amount on line E to your base amount for your filing status. Self employment tax If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. Self employment tax If the amount on line E is more than your base amount, some of your benefits may be taxable. Self employment tax You need to complete Worksheet 1 in Publication 915 (or the Social Security Benefits Worksheet in your tax form instructions). Self employment tax If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits. Self employment tax Who is taxed. Self employment tax   Benefits are included in the taxable income (to the extent they are taxable) of the person who has the legal right to receive the benefits. Self employment tax For example, if you and your child receive benefits, but the check for your child is made out in your name, you must use only your part of the benefits to see whether any benefits are taxable to you. Self employment tax One-half of the part that belongs to your child must be added to your child's other income to see whether any of those benefits are taxable to your child. Self employment tax Repayment of benefits. Self employment tax   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Self employment tax It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Self employment tax If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Self employment tax   Your gross benefits are shown in box 3 of Form SSA-1099 or RRB-1099. Self employment tax Your repayments are shown in box 4. Self employment tax The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Self employment tax Use the amount in box 5 to figure whether any of your benefits are taxable. Self employment tax Tax withholding and estimated tax. Self employment tax   You can choose to have federal income tax withheld from your social security benefits and/or the SSEB portion of your tier 1 railroad retirement benefits. Self employment tax If you choose to do this, you must complete a Form W-4V. Self employment tax   If you do not choose to have income tax withheld, you may have to request additional withholding from other income or pay estimated tax during the year. Self employment tax For details, see Publication 505 or the instructions for Form 1040-ES. Self employment tax How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. Self employment tax You cannot use Form 1040EZ. Self employment tax Reporting on Form 1040. Self employment tax   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 20a and the taxable part on line 20b. Self employment tax If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. Self employment tax Reporting on Form 1040A. Self employment tax   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 14a and the taxable part on line 14b. Self employment tax If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. Self employment tax Benefits not taxable. Self employment tax   If you are filing Form 1040EZ, do not report any benefits on your tax return. Self employment tax If you are filing Form 1040 or Form 1040A, report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. Self employment tax Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Self employment tax If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Self employment tax How Much Is Taxable? If part of your benefits are taxable, how much is taxable depends on the total amount of your benefits and other income. Self employment tax Generally, the higher that total amount, the greater the taxable part of your benefits. Self employment tax Maximum taxable part. Self employment tax   Generally, up to 50% of your benefits will be taxable. Self employment tax However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Self employment tax The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Self employment tax You are married filing separately and lived with your spouse at any time during 2013. Self employment tax Which worksheet to use. Self employment tax   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or Form 1040A. Self employment tax You can use either that worksheet or Worksheet 1 in Publication 915, unless any of the following situations applies to you. Self employment tax You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. Self employment tax In this situation, you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. Self employment tax Situation (1) does not apply and you take an exclusion for interest from qualified U. Self employment tax S. Self employment tax savings bonds (Form 8815), for adoption benefits (Form 8839), for foreign earned income or housing (Form 2555 or Form 2555-EZ), or for income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. Self employment tax In this situation, you must use Worksheet 1 in Publication 915 to figure your taxable benefits. Self employment tax You received a lump-sum payment for an earlier year. Self employment tax In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Publication 915. Self employment tax See Lump-sum election next. Self employment tax Lump-sum election. Self employment tax   You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. Self employment tax    This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. Self employment tax No part of the lump-sum death benefit is subject to tax. Self employment tax   Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Self employment tax However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. Self employment tax You can elect this method if it lowers your taxable benefits. Self employment tax Making the election. Self employment tax   If you received a lump-sum benefit payment in 2013 that includes benefits for one or more earlier years, follow the instructions in Publication 915 under Lump-Sum Election to see whether making the election will lower your taxable benefits. Self employment tax That discussion also explains how to make the election. Self employment tax    Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. Self employment tax Do not file an amended return for the earlier year. Self employment tax Examples The following are a few examples you can use as a guide to figure the taxable part of your benefits. Self employment tax Example 1. Self employment tax George White is single and files Form 1040 for 2013. Self employment tax He received the following income in 2013: Fully taxable pension $18,600 Wages from part-time job 9,400 Taxable interest income 990 Total $28,990 George also received social security benefits during 2013. Self employment tax The Form SSA-1099 he received in January 2014 shows $5,980 in box 5. Self employment tax To figure his taxable benefits, George completes the worksheet shown here. Self employment tax Filled-in Worksheet 1. Self employment tax Figuring Your Taxable Benefits 1. Self employment tax Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Self employment tax Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,980 2. Self employment tax Enter one-half of line 1 2,990 3. Self employment tax Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Self employment tax     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 28,990 4. Self employment tax Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Self employment tax Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. Self employment tax Combine lines 2, 3, 4, and 5 31,980 7. Self employment tax Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Self employment tax     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Self employment tax Is the amount on line 7 less than the amount on line 6?     No. Self employment tax None of your social security benefits are taxable. Self employment tax Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Self employment tax   Yes. Self employment tax Subtract line 7 from line 6 31,980 9. Self employment tax If you are: Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 25,000   Note. Self employment tax If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Self employment tax 85) and enter the result on line 17. Self employment tax Then go to line 18. Self employment tax   10. Self employment tax Is the amount on line 9 less than the amount on line 8?     No. Self employment tax None of your benefits are taxable. Self employment tax Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Self employment tax If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Self employment tax     Yes. Self employment tax Subtract line 9 from line 8 6,980 11. Self employment tax Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 9,000 12. Self employment tax Subtract line 11 from line 10. Self employment tax If zero or less, enter -0- -0- 13. Self employment tax Enter the smaller of line 10 or line 11 6,980 14. Self employment tax Enter one-half of line 13 3,490 15. Self employment tax Enter the smaller of line 2 or line 14 2,990 16. Self employment tax Multiply line 12 by 85% (. Self employment tax 85). Self employment tax If line 12 is zero, enter -0- -0- 17. Self employment tax Add lines 15 and 16 2,990 18. Self employment tax Multiply line 1 by 85% (. Self employment tax 85) 5,083 19. Self employment tax Taxable benefits. Self employment tax Enter the smaller of line 17 or line 18. Self employment tax Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $2,990 The amount on line 19 of George's worksheet shows that $2,990 of his social security benefits is taxable. Self employment tax On line 20a of his Form 1040, George enters his net benefits of $5,980. Self employment tax On line 20b, he enters his taxable benefits of $2,990. Self employment tax Example 2. Self employment tax Ray and Alice Hopkins file a joint return on Form 1040A for 2013. Self employment tax Ray is retired and received a fully taxable pension of $15,500. Self employment tax He also received social security benefits, and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. Self employment tax Alice worked during the year and had wages of $14,000. Self employment tax She made a deductible payment to her IRA account of $1,000. Self employment tax Ray and Alice have two savings accounts with a total of $250 in taxable interest income. Self employment tax They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. Self employment tax They find none of Ray's social security benefits are taxable. Self employment tax On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. Self employment tax Filled-in Worksheet 1. Self employment tax Figuring Your Taxable Benefits 1. Self employment tax Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Self employment tax Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $5,600 2. Self employment tax Enter one-half of line 1 2,800 3. Self employment tax Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Self employment tax     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 29,750 4. Self employment tax Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Self employment tax Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. Self employment tax Combine lines 2, 3, 4, and 5 32,550 7. Self employment tax Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Self employment tax     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 1,000 8. Self employment tax Is the amount on line 7 less than the amount on line 6?     No. Self employment tax None of your social security benefits are taxable. Self employment tax Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Self employment tax   Yes. Self employment tax Subtract line 7 from line 6 31,550 9. Self employment tax If you are: Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 32,000   Note. Self employment tax If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Self employment tax 85) and enter the result on line 17. Self employment tax Then go to line 18. Self employment tax   10. Self employment tax Is the amount on line 9 less than the amount on line 8?     No. Self employment tax None of your benefits are taxable. Self employment tax Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Self employment tax If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Self employment tax     Yes. Self employment tax Subtract line 9 from line 8   11. Self employment tax Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013   12. Self employment tax Subtract line 11 from line 10. Self employment tax If zero or less, enter -0-   13. Self employment tax Enter the smaller of line 10 or line 11   14. Self employment tax Enter one-half of line 13   15. Self employment tax Enter the smaller of line 2 or line 14   16. Self employment tax Multiply line 12 by 85% (. Self employment tax 85). Self employment tax If line 12 is zero, enter -0-   17. Self employment tax Add lines 15 and 16   18. Self employment tax Multiply line 1 by 85% (. Self employment tax 85)   19. Self employment tax Taxable benefits. Self employment tax Enter the smaller of line 17 or line 18. Self employment tax Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b   Example 3. Self employment tax Joe and Betty Johnson file a joint return on Form 1040 for 2013. Self employment tax Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. Self employment tax Joe's Form RRB-1099 shows $10,000 in box 5. Self employment tax Betty is a retired government worker and receives a fully taxable pension of $38,000. Self employment tax They had $2,300 in taxable interest income plus interest of $200 on a qualified U. Self employment tax S. Self employment tax savings bond. Self employment tax The savings bond interest qualified for the exclusion. Self employment tax They figure their taxable benefits by completing Worksheet 1. Self employment tax Because they have qualified U. Self employment tax S. Self employment tax savings bond interest, they follow the note at the beginning of the worksheet and use the amount from line 2 of their Schedule B (Form 1040A or 1040) on line 3 of the worksheet instead of the amount from line 8a of their Form 1040. Self employment tax On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). Self employment tax Filled-in Worksheet 1. Self employment tax Figuring Your Taxable Benefits Before you begin: • If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Self employment tax • Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Self employment tax None of your benefits are taxable for 2013. Self employment tax For more information, see Repayments More Than Gross Benefits. Self employment tax • If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Self employment tax S. Self employment tax Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Self employment tax Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Self employment tax 1. Self employment tax Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Self employment tax Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a $10,000 2. Self employment tax Enter one-half of line 1 5,000 3. Self employment tax Combine the amounts from:     Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21. Self employment tax     Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 40,500 4. Self employment tax Enter the amount, if any, from Form 1040 or 1040A, line 8b -0-       5. Self employment tax Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico -0-       6. Self employment tax Combine lines 2, 3, 4, and 5 45,500 7. Self employment tax Form 1040 filers: Enter the amount from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Self employment tax     Form 1040A filers: Enter the amount from Form 1040A, lines 16 and 17 -0- 8. Self employment tax Is the amount on line 7 less than the amount on line 6?     No. Self employment tax None of your social security benefits are taxable. Self employment tax Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Self employment tax   Yes. Self employment tax Subtract line 7 from line 6 45,500 9. Self employment tax If you are: Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 32,000   Note. Self employment tax If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Self employment tax 85) and enter the result on line 17. Self employment tax Then go to line 18. Self employment tax   10. Self employment tax Is the amount on line 9 less than the amount on line 8?     No. Self employment tax None of your benefits are taxable. Self employment tax Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Self employment tax If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Self employment tax     Yes. Self employment tax Subtract line 9 from line 8 13,500 11. Self employment tax Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 12,000 12. Self employment tax Subtract line 11 from line 10. Self employment tax If zero or less, enter -0- 1,500 13. Self employment tax Enter the smaller of line 10 or line 11 12,000 14. Self employment tax Enter one-half of line 13 6,000 15. Self employment tax Enter the smaller of line 2 or line 14 5,000 16. Self employment tax Multiply line 12 by 85% (. Self employment tax 85). Self employment tax If line 12 is zero, enter -0- 1,275 17. Self employment tax Add lines 15 and 16 6,275 18. Self employment tax Multiply line 1 by 85% (. Self employment tax 85) 8,500 19. Self employment tax Taxable benefits. Self employment tax Enter the smaller of line 17 or line 18. Self employment tax Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b $6,275 More than 50% of Joe's net benefits are taxable because the income on line 8 of the worksheet ($45,500) is more than $44,000. Self employment tax Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. Self employment tax Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. Self employment tax Disability payments. Self employment tax   You may have received disability payments from your employer or an insurance company that you included as income on your tax return in an earlier year. Self employment tax If you received a lump-sum payment from SSA or RRB, and you had to repay the employer or insurance company for the disability payments, you can take an itemized deduction for the part of the payments you included in gross income in the earlier year. Self employment tax If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Self employment tax Claim the deduction or credit in the same way explained under Repayments More Than Gross Benefits , later. Self employment tax Legal expenses. Self employment tax   You can usually deduct legal expenses that you pay or incur to produce or collect taxable income or in connection with the determination, collection, or refund of any tax. Self employment tax   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Self employment tax Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. Self employment tax If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Self employment tax Do not use a worksheet in this case. Self employment tax If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. Self employment tax If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. Self employment tax Joint return. Self employment tax   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5, but your spouse's does not, subtract the amount in box 5 of your form from the amount in box 5 of your spouse's form. Self employment tax You do this to get your net benefits when figuring if your combined benefits are taxable. Self employment tax Example. Self employment tax John and Mary file a joint return for 2013. Self employment tax John received Form SSA-1099 showing $3,000 in box 5. Self employment tax Mary also received Form SSA-1099 and the amount in box 5 was ($500). Self employment tax John and Mary will use $2,500 ($3,000 minus $500) as the amount of their net benefits when figuring if any of their combined benefits are taxable. Self employment tax Repayment of benefits received in an earlier year. Self employment tax   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. Self employment tax Deduction $3,000 or less. Self employment tax   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. Self employment tax Claim it on Schedule A (Form 1040), line 23. Self employment tax Deduction more than $3,000. Self employment tax    If this deduction is more than $3,000, you should figure your tax two ways: Figure your tax for 2013 with the itemized deduction included on Schedule A, line 28. Self employment tax Figure your tax for 2013 in the following steps. Self employment tax Figure the tax without the itemized deduction included on Schedule A, line 28. Self employment tax For each year after 1983 for which part of the negative figure represents a repayment of benefits, refigure your taxable benefits as if your total benefits for the year were reduced by that part of the negative figure. Self employment tax Then refigure the tax for that year. Self employment tax Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. Self employment tax Subtract the result in (c) from the result in (a). Self employment tax Compare the tax figured in methods (1) and (2). Self employment tax Your tax for 2013 is the smaller of the two amounts. Self employment tax If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. Self employment tax If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. Self employment tax Check box d and enter “I. Self employment tax R. Self employment tax C. Self employment tax 1341” in the space next to that box. Self employment tax If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. Self employment tax Prev  Up  Next   Home   More Online Publications
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The Self Employment Tax

Self employment tax 24. Self employment tax   Contributions Table of Contents Introduction Useful Items - You may want to see: Organizations That Qualify To Receive Deductible ContributionsTypes of Qualified Organizations Contributions You Can DeductContributions From Which You Benefit Expenses Paid for Student Living With You Out-of-Pocket Expenses in Giving Services Contributions You Cannot DeductContributions to Individuals Contributions to Nonqualified Organizations Contributions From Which You Benefit Value of Time or Services Personal Expenses Appraisal Fees Contributions of PropertyException. Self employment tax Household items. Self employment tax Deduction more than $500. Self employment tax Form 1098-C. Self employment tax Filing deadline approaching and still no Form 1098-C. Self employment tax Exception 1—vehicle used or improved by organization. Self employment tax Exception 2—vehicle given or sold to needy individual. Self employment tax Deduction $500 or less. Self employment tax Right to use property. Self employment tax Tangible personal property. Self employment tax Future interest. Self employment tax Determining Fair Market Value Giving Property That Has Decreased in Value Giving Property That Has Increased in Value When To DeductChecks. Self employment tax Text message. Self employment tax Credit card. Self employment tax Pay-by-phone account. Self employment tax Stock certificate. Self employment tax Promissory note. Self employment tax Option. Self employment tax Borrowed funds. Self employment tax Limits on DeductionsCarryovers Records To KeepCash Contributions Noncash Contributions Out-of-Pocket Expenses How To Report Introduction This chapter explains how to claim a deduction for your charitable contributions. Self employment tax It discusses the following topics. Self employment tax The types of organizations to which you can make deductible charitable contributions. Self employment tax The types of contributions you can deduct. Self employment tax How much you can deduct. Self employment tax What records you must keep. Self employment tax How to report your charitable contributions. Self employment tax A charitable contribution is a donation or gift to, or for the use of, a qualified organization. Self employment tax It is voluntary and is made without getting, or expecting to get, anything of equal value. Self employment tax Form 1040 required. Self employment tax    To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. Self employment tax The amount of your deduction may be limited if certain rules and limits explained in this chapter apply to you. Self employment tax The limits are explained in detail in Publication 526. Self employment tax Useful Items - You may want to see: Publication 526 Charitable Contributions 561 Determining the Value of Donated Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 8283 Noncash Charitable Contributions Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if you make them to a qualified organization. Self employment tax Most organizations other than churches and governments must apply to the IRS to become a qualified organization. Self employment tax How to check whether an organization can receive deductible charitable contributions. Self employment tax   You can ask any organization whether it is a qualified organization, and most will be able to tell you. Self employment tax Or go to IRS. Self employment tax gov. Self employment tax Click on “Tools” and then on “Exempt Organizations Select Check” (www. Self employment tax irs. Self employment tax gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check). Self employment tax This online tool will enable you to search for qualified organizations. Self employment tax You can also call the IRS to find out if an organization is qualified. Self employment tax Call 1-877-829-5500. Self employment tax People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-829-4059. Self employment tax Deaf or hard of hearing individuals can also contact the IRS through relay services such as the Federal Relay Service at www. Self employment tax gsa. Self employment tax gov/fedrelay. Self employment tax Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. Self employment tax A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). Self employment tax It must, however, be organized and operated only for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Self employment tax Certain organizations that foster national or international amateur sports competition also qualify. Self employment tax War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Self employment tax Domestic fraternal societies, orders, and associations operating under the lodge system. Self employment tax (Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Self employment tax ) Certain nonprofit cemetery companies or corporations. Self employment tax (Your contribution to this type of organization is not deductible if it can be used for the care of a specific lot or mausoleum crypt. Self employment tax ) The United States or any state, the District of Columbia, a U. Self employment tax S. Self employment tax possession (including Puerto Rico), a political subdivision of a state or U. Self employment tax S. Self employment tax possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Self employment tax (Your contribution to this type of organization is only deductible if it is to be used solely for public purposes. Self employment tax ) Examples. Self employment tax    The following list gives some examples of qualified organizations. Self employment tax Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Self employment tax Most nonprofit charitable organizations such as the American Red Cross and the United Way. Self employment tax Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. Self employment tax This also includes nonprofit daycare centers that provide childcare to the general public if substantially all the childcare is provided to enable parents and guardians to be gainfully employed. Self employment tax However, if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution, as explained later under Contributions You Cannot Deduct . Self employment tax Nonprofit hospitals and medical research organizations. Self employment tax Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Self employment tax Nonprofit volunteer fire companies. Self employment tax Nonprofit organizations that develop and maintain public parks and recreation facilities. Self employment tax Civil defense organizations. Self employment tax Certain foreign charitable organizations. Self employment tax   Under income tax treaties with Canada, Israel, and Mexico, you may be able to deduct contributions to certain Canadian, Israeli, or Mexican charitable organizations. Self employment tax Generally, you must have income from sources in that country. Self employment tax For additional information on the deduction of contributions to Canadian charities, see Publication 597, Information on the United States–Canada Income Tax Treaty. Self employment tax If you need more information on how to figure your contribution to Mexican and Israeli charities, see Publication 526. Self employment tax Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. Self employment tax A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement. Self employment tax The contributions must be made to a qualified organization and not set aside for use by a specific person. Self employment tax If you give property to a qualified organization, you generally can deduct the fair market value of the property at the time of the contribution. Self employment tax See Contributions of Property , later in this chapter. Self employment tax Your deduction for charitable contributions generally cannot be more than 50% of your adjusted gross income (AGI), but in some cases 20% and 30% limits may apply. Self employment tax See Limits on Deductions , later. Self employment tax In addition, the total of your charitable contribution deduction and certain other itemized deductions may be limited. Self employment tax See chapter 29. Self employment tax Table 24-1 gives examples of contributions you can and cannot deduct. Self employment tax Contributions From Which You Benefit If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Self employment tax Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later. Self employment tax If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. Self employment tax For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Self employment tax Example 1. Self employment tax You pay $65 for a ticket to a dinner-dance at a church. Self employment tax Your entire $65 payment goes to the church. Self employment tax The ticket to the dinner-dance has a fair market value of $25. Self employment tax When you buy your ticket, you know that its value is less than your payment. Self employment tax To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). Self employment tax You can deduct $40 as a contribution to the church. Self employment tax Example 2. Self employment tax At a fundraising auction conducted by a charity, you pay $600 for a week's stay at a beach house. Self employment tax The amount you pay is no more than the fair rental value. Self employment tax You have not made a deductible charitable contribution. Self employment tax Athletic events. Self employment tax   If you make a payment to, or for the benefit of, a college or university and, as a result, you receive the right to buy tickets to an athletic event in the athletic stadium of the college or university, you can deduct 80% of the payment as a charitable contribution. Self employment tax   If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. Self employment tax Subtract the price of the tickets from your payment. Self employment tax You can deduct 80% of the remaining amount as a charitable contribution. Self employment tax Example 1. Self employment tax You pay $300 a year for membership in a university's athletic scholarship program. Self employment tax The only benefit of membership is that you have the right to buy one season ticket for a seat in a designated area of the stadium at the university's home football games. Self employment tax You can deduct $240 (80% of $300) as a charitable contribution. Self employment tax Table 24-1. Self employment tax Examples of Charitable Contributions—A Quick Check Use the following lists for a quick check of whether you can deduct a contribution. Self employment tax See the rest of this chapter for more information and additional rules and limits that may apply. Self employment tax Deductible As  Charitable Contributions Not Deductible  As Charitable Contributions Money or property you give to:  Churches, synagogues, temples, mosques, and other religious organizations Federal, state, and local governments, if your contribution is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park) Nonprofit schools and hospitals The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc. Self employment tax War veterans groups   Expenses paid for a student living with you, sponsored by a qualified organization  Out-of-pocket expenses when you serve a qualified organization as a volunteer Money or property you give to:  Civic leagues, social and sports clubs, labor unions, and chambers of commerce Foreign organizations (except certain Canadian, Israeli, and Mexican charities) Groups that are run for personal profit Groups whose purpose is to lobby for law changes Homeowners' associations Individuals Political groups or candidates for public office   Cost of raffle, bingo, or lottery tickets  Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups  Tuition  Value of your time or services  Value of blood given to a blood bank    Example 2. Self employment tax The facts are the same as in Example 1 except your $300 payment includes the purchase of one season ticket for the stated ticket price of $120. Self employment tax You must subtract the usual price of a ticket ($120) from your $300 payment. Self employment tax The result is $180. Self employment tax Your deductible charitable contribution is $144 (80% of $180). Self employment tax Charity benefit events. Self employment tax   If you pay a qualified organization more than fair market value for the right to attend a charity ball, banquet, show, sporting event, or other benefit event, you can deduct only the amount that is more than the value of the privileges or other benefits you receive. Self employment tax   If there is an established charge for the event, that charge is the value of your benefit. Self employment tax If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Self employment tax Whether you use the tickets or other privileges has no effect on the amount you can deduct. Self employment tax However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. Self employment tax    Even if the ticket or other evidence of payment indicates that the payment is a “contribution,” this does not mean you can deduct the entire amount. Self employment tax If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribution amount. Self employment tax Example. Self employment tax You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Self employment tax Printed on the ticket is “Contribution—$40. Self employment tax ” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). Self employment tax Membership fees or dues. Self employment tax    You may be able to deduct membership fees or dues you pay to a qualified organization. Self employment tax However, you can deduct only the amount that is more than the value of the benefits you receive. Self employment tax    You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations. Self employment tax They are not qualified organizations. Self employment tax Certain membership benefits can be disregarded. Self employment tax   Both you and the organization can disregard the following membership benefits if you receive them in return for an annual payment of $75 or less. Self employment tax Any rights or privileges, other than those discussed under Athletic events , earlier, that you can use frequently while you are a member, such as: Free or discounted admission to the organization's facilities or events, Free or discounted parking, Preferred access to goods or services, and Discounts on the purchase of goods and services. Self employment tax Admission, while you are a member, to events open only to members of the organization, if the organization reasonably projects that the cost per person (excluding any allocated overhead) is not more than $10. Self employment tax 20. Self employment tax Token items. Self employment tax   You do not have to reduce your contribution by the value of any benefit you receive if both of the following are true. Self employment tax You receive only a small item or other benefit of token value. Self employment tax The qualified organization correctly determines that the value of the item or benefit you received is not substantial and informs you that you can deduct your payment in full. Self employment tax Written statement. Self employment tax   A qualified organization must give you a written statement if you make a payment of more than $75 that is partly a contribution and partly for goods or services. Self employment tax The statement must say that you can deduct only the amount of your payment that is more than the value of the goods or services you received. Self employment tax It must also give you a good faith estimate of the value of those goods or services. Self employment tax   The organization can give you the statement either when it solicits or when it receives the payment from you. Self employment tax Exception. Self employment tax   An organization will not have to give you this statement if one of the following is true. Self employment tax The organization is: A governmental organization described in (5) under Types of Qualified Organizations , earlier, or An organization formed only for religious purposes, and the only benefit you receive is an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in commercial transactions outside the donative context. Self employment tax You receive only items whose value is not substantial as described under Token items , earlier. Self employment tax You receive only membership benefits that can be disregarded, as described earlier. Self employment tax Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. Self employment tax You can deduct qualifying expenses for a foreign or American student who: Lives in your home under a written agreement between you and a qualified organization as part of a program of the organization to provide educational opportunities for the student, Is not your relative or dependent, and Is a full-time student in the twelfth or any lower grade at a school in the United States. Self employment tax You can deduct up to $50 a month for each full calendar month the student lives with you. Self employment tax Any month when conditions (1) through (3) are met for 15 days or more counts as a full month. Self employment tax For additional information, see Expenses Paid for Student Living With You in Publication 526. Self employment tax Mutual exchange program. Self employment tax   You cannot deduct the costs of a foreign student living in your home under a mutual exchange program through which your child will live with a family in a foreign country. Self employment tax Table 24-2. Self employment tax Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. Self employment tax All of the rules explained in this chapter also apply. Self employment tax See, in particular, Out-of-Pocket Expenses in Giving Services . Self employment tax Question Answer I volunteer 6 hours a week in the office of a qualified organization. Self employment tax The receptionist is paid $10 an hour for the same work. Self employment tax Can I deduct $60 a week for my time?    No, you cannot deduct the value of your time or services. Self employment tax The office is 30 miles from my home. Self employment tax Can I deduct any of my car expenses for these trips? Yes, you can deduct the costs of gas and oil that are directly related to getting to and from the place where you volunteer. Self employment tax If you don't want to figure your actual costs, you can deduct 14 cents for each mile. Self employment tax I volunteer as a Red Cross nurse's aide at a hospital. Self employment tax Can I deduct the cost of the uniforms I must wear? Yes, you can deduct the cost of buying and cleaning your uniforms if the hospital is a qualified organization, the uniforms are not suitable for everyday use, and you must wear them when volunteering. Self employment tax I pay a babysitter to watch my children while I volunteer for a qualified organization. Self employment tax Can I deduct these costs? No, you cannot deduct payments for childcare expenses as a charitable contribution, even if you would be unable to volunteer without childcare. Self employment tax (If you have childcare expenses so you can work for pay, see chapter 32. Self employment tax ) Out-of-Pocket Expenses in Giving Services Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. Self employment tax The amounts must be: Unreimbursed, Directly connected with the services, Expenses you had only because of the services you gave, and Not personal, living, or family expenses. Self employment tax Table 24-2 contains questions and answers that apply to some individuals who volunteer their services. Self employment tax Conventions. Self employment tax   If a qualified organization selects you to attend a convention as its representative, you can deduct unreimbursed expenses for travel, including reasonable amounts for meals and lodging, while away from home overnight in connection with the convention. Self employment tax However, see Travel , later. Self employment tax   You cannot deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. Self employment tax You also cannot deduct transportation, meals and lodging, and other expenses for your spouse or children. Self employment tax    You cannot deduct your travel expenses in attending a church convention if you go only as a member of your church rather than as a chosen representative. Self employment tax You can, however, deduct unreimbursed expenses that are directly connected with giving services for your church during the convention. Self employment tax Uniforms. Self employment tax   You can deduct the cost and upkeep of uniforms that are not suitable for everyday use and that you must wear while performing donated services for a charitable organization. Self employment tax Foster parents. Self employment tax   You may be able to deduct as a charitable contribution some of the costs of being a foster parent (foster care provider) if you have no profit motive in providing the foster care and are not, in fact, making a profit. Self employment tax A qualified organization must select the individuals you take into your home for foster care. Self employment tax    You can deduct expenses that meet both of the following requirements. Self employment tax They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child. Self employment tax They are incurred primarily to benefit the qualified organization. Self employment tax   Unreimbursed expenses that you cannot deduct as charitable contributions may be considered support provided by you in determining whether you can claim the foster child as a dependent. Self employment tax For details, see chapter 3. Self employment tax Example. Self employment tax You cared for a foster child because you wanted to adopt her, not to benefit the agency that placed her in your home. Self employment tax Your unreimbursed expenses are not deductible as charitable contributions. Self employment tax Car expenses. Self employment tax   You can deduct as a charitable contribution any unreimbursed out-of-pocket expenses, such as the cost of gas and oil, that are directly related to the use of your car in giving services to a charitable organization. Self employment tax You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. Self employment tax    If you do not want to deduct your actual expenses, you can use a standard mileage rate of 14 cents a mile to figure your contribution. Self employment tax   You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. Self employment tax   You must keep reliable written records of your car expenses. Self employment tax For more information, see Car expenses under Records To Keep, later. Self employment tax Travel. Self employment tax   Generally, you can claim a charitable contribution deduction for travel expenses necessarily incurred while you are away from home performing services for a charitable organization only if there is no significant element of personal pleasure, recreation, or vacation in the travel. Self employment tax This applies whether you pay the expenses directly or indirectly. Self employment tax You are paying the expenses indirectly if you make a payment to the charitable organization and the organization pays for your travel expenses. Self employment tax   The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Self employment tax Even if you enjoy the trip, you can take a charitable contribution deduction for your travel expenses if you are on duty in a genuine and substantial sense throughout the trip. Self employment tax However, if you have only nominal duties, or if for significant parts of the trip you do not have any duties, you cannot deduct your travel expenses. Self employment tax Example 1. Self employment tax You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. Self employment tax You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. Self employment tax You participate in the activities of the group and enjoy your time with them. Self employment tax You oversee the breaking of camp and you transport the group home. Self employment tax You can deduct your travel expenses. Self employment tax Example 2. Self employment tax You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. Self employment tax The project is sponsored by a charitable organization. Self employment tax In most circumstances, you cannot deduct your expenses. Self employment tax Example 3. Self employment tax You work for several hours each morning on an archaeological dig sponsored by a charitable organization. Self employment tax The rest of the day is free for recreation and sightseeing. Self employment tax You cannot take a charitable contribution deduction even though you work very hard during those few hours. Self employment tax Example 4. Self employment tax You spend the entire day attending a charitable organization's regional meeting as a chosen representative. Self employment tax In the evening you go to the theater. Self employment tax You can claim your travel expenses as charitable contributions, but you cannot claim the cost of your evening at the theater. Self employment tax Daily allowance (per diem). Self employment tax   If you provide services for a charitable organization and receive a daily allowance to cover reasonable travel expenses, including meals and lodging while away from home overnight, you must include in income any part of the allowance that is more than your deductible travel expenses. Self employment tax You may be able to deduct any necessary travel expenses that are more than the allowance. Self employment tax Deductible travel expenses. Self employment tax   These include: Air, rail, and bus transportation, Out-of-pocket expenses for your car, Taxi fares or other costs of transportation between the airport or station and your hotel, Lodging costs, and The cost of meals. Self employment tax Because these travel expenses are not business-related, they are not subject to the same limits as business-related expenses. Self employment tax For information on business travel expenses, see Travel Expenses in chapter 26. Self employment tax Contributions You Cannot Deduct There are some contributions you cannot deduct, such as those made to specific individuals and those made to nonqualified organizations. Self employment tax (See Contributions to Individuals and Contributions to Nonqualified Organizations , next. Self employment tax ) There are others you can deduct only part of, as discussed later under Contributions From Which You Benefit . Self employment tax Contributions to Individuals You cannot deduct contributions to specific individuals, including the following. Self employment tax Contributions to fraternal societies made for the purpose of paying medical or burial expenses of deceased members. Self employment tax Contributions to individuals who are needy or worthy. Self employment tax You cannot deduct these contributions even if you make them to a qualified organization for the benefit of a specific person. Self employment tax But you can deduct a contribution to a qualified organization that helps needy or worthy individuals if you do not indicate that your contribution is for a specific person. Self employment tax Example. Self employment tax You can deduct contributions to a qualified organization for flood relief, hurricane relief, or other disaster relief. Self employment tax However, you cannot deduct contributions earmarked for relief of a particular individual or family. Self employment tax Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. Self employment tax Expenses you paid for another person who provided services to a qualified organization. Self employment tax Example. Self employment tax Your son does missionary work. Self employment tax You pay his expenses. Self employment tax You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services. Self employment tax Payments to a hospital that are for a specific patient's care or for services for a specific patient. Self employment tax You cannot deduct these payments even if the hospital is operated by a city, a state, or other qualified organization. Self employment tax Contributions to Nonqualified Organizations You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following. Self employment tax Certain state bar associations if: The bar is not a political subdivision of a state, The bar has private, as well as public, purposes, such as promoting the professional interests of members, and Your contribution is unrestricted and can be used for private purposes. Self employment tax Chambers of commerce and other business leagues or organizations (but see chapter 28). Self employment tax Civic leagues and associations. Self employment tax Communist organizations. Self employment tax Country clubs and other social clubs. Self employment tax Most foreign organizations (other than certain Canadian, Israeli, or Mexican charitable organizations). Self employment tax For details, see Publication 526. Self employment tax Homeowners' associations. Self employment tax Labor unions (but see chapter 28). Self employment tax Political organizations and candidates. Self employment tax Contributions From Which You Benefit If you receive or expect to receive a financial or economic benefit as a result of making a contribution to a qualified organization, you cannot deduct the part of the contribution that represents the value of the benefit you receive. Self employment tax See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Self employment tax These contributions include the following. Self employment tax Contributions for lobbying. Self employment tax This includes amounts that you earmark for use in, or in connection with, influencing specific legislation. Self employment tax Contributions to a retirement home for room, board, maintenance, or admittance. Self employment tax Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution. Self employment tax Costs of raffles, bingo, lottery, etc. Self employment tax You cannot deduct as a charitable contribution amounts you pay to buy raffle or lottery tickets or to play bingo or other games of chance. Self employment tax For information on how to report gambling winnings and losses, see Gambling winnings in chapter 12 and Gambling Losses Up to the Amount of Gambling Winnings in chapter 28. Self employment tax Dues to fraternal orders and similar groups. Self employment tax However, see Membership fees or dues , earlier, under Contributions You Can Deduct. Self employment tax Tuition, or amounts you pay instead of tuition. Self employment tax You cannot deduct as a charitable contribution amounts you pay as tuition even if you pay them for children to attend parochial schools or qualifying nonprofit daycare centers. Self employment tax You also cannot deduct any fixed amount you must pay in addition to, or instead of, tuition to enroll in a private school, even if it is designated as a “donation. Self employment tax ” Value of Time or Services You cannot deduct the value of your time or services, including: Blood donations to the American Red Cross or to blood banks, and The value of income lost while you work as an unpaid volunteer for a qualified organization. Self employment tax Personal Expenses You cannot deduct personal, living, or family expenses, such as the following items. Self employment tax The cost of meals you eat while you perform services for a qualified organization unless it is necessary for you to be away from home overnight while performing the services. Self employment tax Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final (but see Adoption Credit in chapter 37, and the instructions for Form 8839, Qualified Adoption Expenses). Self employment tax You also may be able to claim an exemption for the child. Self employment tax See Adopted child in chapter 3. Self employment tax Appraisal Fees You cannot deduct as a charitable contribution any fees you pay to find the fair market value of donated property (but see chapter 28). Self employment tax Contributions of Property If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. Self employment tax However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. Self employment tax See Giving Property That Has Increased in Value , later. Self employment tax For information about the records you must keep and the information you must furnish with your return if you donate property, see Records To Keep and How To Report , later. Self employment tax Clothing and household items. Self employment tax   You cannot take a deduction for clothing or household items you donate unless the clothing or household items are in good used condition or better. Self employment tax Exception. Self employment tax   You can take a deduction for a contribution of an item of clothing or household item that is not in good used condition or better if you deduct more than $500 for it and include a qualified appraisal of it with your return. Self employment tax Household items. Self employment tax   Household items include: Furniture and furnishings, Electronics, Appliances, Linens, and Other similar items. Self employment tax   Household items do not include: Food, Paintings, antiques, and other objects of art, Jewelry and gems, and Collections. Self employment tax Cars, boats, and airplanes. Self employment tax    The following rules apply to any donation of a qualified vehicle. Self employment tax A qualified vehicle is: A car or any motor vehicle manufactured mainly for use on public streets, roads, and highways, A boat, or An airplane. Self employment tax Deduction more than $500. Self employment tax   If you donate a qualified vehicle with a claimed fair market value of more than $500, you can deduct the smaller of: The gross proceeds from the sale of the vehicle by the organization, or The vehicle's fair market value on the date of the contribution. Self employment tax If the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to figure the deductible amount, as described under Giving Property That Has Increased in Value , later. Self employment tax Form 1098-C. Self employment tax   You must attach to your return Copy B of the Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, (or other statement containing the same information as Form 1098-C) you received from the organization. Self employment tax The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. Self employment tax   If you e-file your return, you must: Attach Copy B of Form 1098-C to Form 8453 and mail the forms to the IRS, or Include Copy B of Form 1098-C as a pdf attachment if your software program allows it. Self employment tax   If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. Self employment tax    You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. Self employment tax But if exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Self employment tax Filing deadline approaching and still no Form 1098-C. Self employment tax   If the filing deadline is approaching and you still do not have a Form 1098-C, you have two choices. Self employment tax Request an automatic 6-month extension of time to file your return. Self employment tax You can get this extension by filing Form 4868, Application for Automatic Extension of Time to File U. Self employment tax S. Self employment tax Individual Income Tax Return. Self employment tax  For more information, see Automatic Extension in chapter 1. Self employment tax File the return on time without claiming the deduction for the qualified vehicle. Self employment tax After receiving the Form 1098-C, file an amended return, Form 1040X, claiming the deduction. Self employment tax Attach Copy B of Form 1098-C (or other statement) to the amended return. Self employment tax For more information about amended returns, see Amended Returns and Claims for Refund in chapter 1. Self employment tax Exceptions. Self employment tax   There are two exceptions to the rules just described for deductions of more than $500. Self employment tax Exception 1—vehicle used or improved by organization. Self employment tax   If the qualified organization makes a significant intervening use of or material improvement to the vehicle before transferring it, you generally can deduct the vehicle's fair market value at the time of the contribution. Self employment tax But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. Self employment tax The Form 1098-C (or other statement) will show whether this exception applies. Self employment tax Exception 2—vehicle given or sold to needy individual. Self employment tax   If the qualified organization will give the vehicle, or sell it for a price well below fair market value, to a needy individual to further the organization's charitable purpose, you generally can deduct the vehicle's fair market value at the time of the contribution. Self employment tax But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. Self employment tax The Form 1098-C (or other statement) will show whether this exception applies. Self employment tax   This exception does not apply if the organization sells the vehicle at auction. Self employment tax In that case, you cannot deduct the vehicle's fair market value. Self employment tax Example. Self employment tax Anita donates a used car to a qualified organization. Self employment tax She bought it 3 years ago for $9,000. Self employment tax A used car guide shows the fair market value for this type of car is $6,000. Self employment tax However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Self employment tax Neither exception 1 nor exception 2 applies. Self employment tax If Anita itemizes her deductions, she can deduct $2,900 for her donation. Self employment tax She must attach Form 1098-C and Form 8283 to her return. Self employment tax Deduction $500 or less. Self employment tax   If the qualified organization sells the vehicle for $500 or less and exceptions 1 and 2 do not apply, you can deduct the smaller of: $500, or The vehicle's fair market value on the date of the contribution. Self employment tax But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. Self employment tax   If the vehicle's fair market value is at least $250 but not more than $500, you must have a written statement from the qualified organization acknowledging your donation. Self employment tax The statement must contain the information and meet the tests for an acknowledgment described under Deductions of At Least $250 But Not More Than $500 under Records To Keep, later. Self employment tax Partial interest in property. Self employment tax   Generally, you cannot deduct a charitable contribution of less than your entire interest in property. Self employment tax Right to use property. Self employment tax   A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible. Self employment tax For exceptions and more information, see Partial Interest in Property Not in Trust in Publication 561. Self employment tax Future interests in tangible personal property. Self employment tax   You cannot deduct the value of a charitable contribution of a future interest in tangible personal property until all intervening interests in and rights to the actual possession or enjoyment of the property have either expired or been turned over to someone other than yourself, a related person, or a related organization. Self employment tax Tangible personal property. Self employment tax   This is any property, other than land or buildings, that can be seen or touched. Self employment tax It includes furniture, books, jewelry, paintings, and cars. Self employment tax Future interest. Self employment tax   This is any interest that is to begin at some future time, regardless of whether it is designated as a future interest under state law. Self employment tax Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Self employment tax Publication 561 contains a more complete discussion. Self employment tax Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts. Self employment tax Used clothing and household items. Self employment tax   The fair market value of used clothing and household goods is usually far less than what you paid for them when they were new. Self employment tax   For used clothing, you should claim as the value the price that buyers of used items actually pay in used clothing stores, such as consignment or thrift shops. Self employment tax See Household Goods in Publication 561 for information on the valuation of household goods, such as furniture, appliances, and linens. Self employment tax Example. Self employment tax Dawn Greene donated a coat to a thrift store operated by her church. Self employment tax She paid $300 for the coat 3 years ago. Self employment tax Similar coats in the thrift store sell for $50. Self employment tax The fair market value of the coat is $50. Self employment tax Dawn's donation is limited to $50. Self employment tax Cars, boats, and airplanes. Self employment tax   If you contribute a car, boat, or airplane to a charitable organization, you must determine its fair market value. Self employment tax Certain commercial firms and trade organizations publish used car pricing guides, commonly called “blue books,” containing complete dealer sale prices or dealer average prices for recent model years. Self employment tax The guides may be published monthly or seasonally and for different regions of the country. Self employment tax These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. Self employment tax The prices are not “official” and these publications are not considered an appraisal of any specific donated property. Self employment tax But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area. Self employment tax   You can also find used car pricing information on the Internet. Self employment tax Example. Self employment tax You donate a used car in poor condition to a local high school for use by students studying car repair. Self employment tax A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. Self employment tax However, the guide shows the price for a private party sale of the car is only $750. Self employment tax The fair market value of the car is considered to be $750. Self employment tax Large quantities. Self employment tax   If you contribute a large number of the same item, fair market value is the price at which comparable numbers of the item are being sold. Self employment tax Giving Property That Has Decreased in Value If you contribute property with a fair market value that is less than your basis in it, your deduction is limited to its fair market value. Self employment tax You cannot claim a deduction for the difference between the property's basis and its fair market value. Self employment tax Giving Property That Has Increased in Value If you contribute property with a fair market value that is more than your basis in it, you may have to reduce the fair market value by the amount of appreciation (increase in value) when you figure your deduction. Self employment tax Your basis in property is generally what you paid for it. Self employment tax See chapter 13 if you need more information about basis. Self employment tax Different rules apply to figuring your deduction, depending on whether the property is: Ordinary income property, or Capital gain property. Self employment tax Ordinary income property. Self employment tax   Property is ordinary income property if you would have recognized ordinary income or short-term capital gain had you sold it at fair market value on the date it was contributed. Self employment tax Examples of ordinary income property are inventory, works of art created by the donor, manuscripts prepared by the donor, and capital assets (defined in chapter 14) held 1 year or less. Self employment tax Amount of deduction. Self employment tax   The amount you can deduct for a contribution of ordinary income property is its fair market value minus the amount that would be ordinary income or short-term capital gain if you sold the property for its fair market value. Self employment tax Generally, this rule limits the deduction to your basis in the property. Self employment tax Example. Self employment tax You donate stock you held for 5 months to your church. Self employment tax The fair market value of the stock on the day you donate it is $1,000, but you paid only $800 (your basis). Self employment tax Because the $200 of appreciation would be short-term capital gain if you sold the stock, your deduction is limited to $800 (fair market value minus the appreciation). Self employment tax Capital gain property. Self employment tax   Property is capital gain property if you would have recognized long-term capital gain had you sold it at fair market value on the date of the contribution. Self employment tax It includes capital assets held more than 1 year, as well as certain real property and depreciable property used in your trade or business and, generally, held more than 1 year. Self employment tax Amount of deduction — general rule. Self employment tax   When figuring your deduction for a contribution of capital gain property, you generally can use the fair market value of the property. Self employment tax Exceptions. Self employment tax   In certain situations, you must reduce the fair market value by any amount that would have been long-term capital gain if you had sold the property for its fair market value. Self employment tax Generally, this means reducing the fair market value to the property's cost or other basis. Self employment tax Bargain sales. Self employment tax   A bargain sale of property is a sale or exchange for less than the property's fair market value. Self employment tax A bargain sale to a qualified organization is partly a charitable contribution and partly a sale or exchange. Self employment tax A bargain sale may result in a taxable gain. Self employment tax More information. Self employment tax   For more information on donating appreciated property, see Giving Property That Has Increased in Value in Publication 526. Self employment tax When To Deduct You can deduct your contributions only in the year you actually make them in cash or other property (or in a later carryover year, as explained later under Carryovers ). Self employment tax This applies whether you use the cash or an accrual method of accounting. Self employment tax Time of making contribution. Self employment tax   Usually, you make a contribution at the time of its unconditional delivery. Self employment tax Checks. Self employment tax   A check you mail to a charity is considered delivered on the date you mail it. Self employment tax Text message. Self employment tax   Contributions made by text message are deductible in the year you send the text message if the contribution is charged to your telephone or wireless account. Self employment tax Credit card. Self employment tax    Contributions charged on your credit card are deductible in the year you make the charge. Self employment tax Pay-by-phone account. Self employment tax    Contributions made through a pay-by-phone account are considered delivered on the date the financial institution pays the amount. Self employment tax Stock certificate. Self employment tax   A properly endorsed stock certificate is considered delivered on the date of mailing or other delivery to the charity or to the charity's agent. Self employment tax However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the charity, your contribution is not delivered until the date the stock is transferred on the books of the corporation. Self employment tax Promissory note. Self employment tax   If you issue and deliver a promissory note to a charity as a contribution, it is not a contribution until you make the note payments. Self employment tax Option. Self employment tax    If you grant a charity an option to buy real property at a bargain price, it is not a contribution until the organization exercises the option. Self employment tax Borrowed funds. Self employment tax   If you contribute borrowed funds, you can deduct the contribution in the year you deliver the funds to the charity, regardless of when you repay the loan. Self employment tax Limits on Deductions The amount you can deduct for charitable contributions cannot be more than 50% of your adjusted gross income (AGI). Self employment tax Your deduction may be further limited to 30% or 20% of your AGI, depending on the type of property you give and the type of organization you give it to. Self employment tax If your total contributions for the year are 20% or less of your AGI, these limits do not apply to you. Self employment tax The limits are discussed in detail under Limits on Deductions in Publication 526. Self employment tax A higher limit applies to certain qualified conservation contributions. Self employment tax See Publication 526 for details. Self employment tax Carryovers You can carry over any contributions you cannot deduct in the current year because they exceed your adjusted-gross-income limits. Self employment tax You can deduct the excess in each of the next 5 years until it is used up, but not beyond that time. Self employment tax For more information, see Carryovers in Publication 526. Self employment tax Records To Keep You must keep records to prove the amount of the contributions you make during the year. Self employment tax The kind of records you must keep depends on the amount of your contributions and whether they are: Cash contributions, Noncash contributions, or Out-of-pocket expenses when donating your services. Self employment tax Note. Self employment tax An organization generally must give you a written statement if it receives a payment from you that is more than $75 and is partly a contribution and partly for goods or services. Self employment tax (See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. Self employment tax ) Keep the statement for your records. Self employment tax It may satisfy all or part of the recordkeeping requirements explained in the following discussions. Self employment tax Cash Contributions Cash contributions include those paid by cash, check, electronic funds transfer, debit card, credit card, or payroll deduction. Self employment tax You cannot deduct a cash contribution, regardless of the amount, unless you keep one of the following. Self employment tax A bank record that shows the name of the qualified organization, the date of the contribution, and the amount of the contribution. Self employment tax Bank records may include: A canceled check, A bank or credit union statement, or A credit card statement. Self employment tax A receipt (or a letter or other written communication) from the qualified organization showing the name of the organization, the date of the contribution, and the amount of the contribution. Self employment tax The payroll deduction records described next. Self employment tax Payroll deductions. Self employment tax   If you make a contribution by payroll deduction, you must keep: A pay stub, Form W-2, or other document furnished by your employer that shows the date and amount of the contribution, and A pledge card or other document prepared by or for the qualified organization that shows the name of the organization. Self employment tax If your employer withheld $250 or more from a single paycheck, see Contributions of $250 or More , next. Self employment tax Contributions of $250 or More You can claim a deduction for a contribution of $250 or more only if you have an acknowledgment of your contribution from the qualified organization or certain payroll deduction records. Self employment tax If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that lists each contribution and the date of each contribution and shows your total contributions. Self employment tax Amount of contribution. Self employment tax   In figuring whether your contribution is $250 or more, do not combine separate contributions. Self employment tax For example, if you gave your church $25 each week, your weekly payments do not have to be combined. Self employment tax Each payment is a separate contribution. Self employment tax   If contributions are made by payroll deduction, the deduction from each paycheck is treated as a separate contribution. Self employment tax   If you made a payment that is partly for goods and services, as described earlier under Contributions From Which You Benefit , your contribution is the amount of the payment that is more than the value of the goods and services. Self employment tax Acknowledgment. Self employment tax   The acknowledgment must meet these tests. Self employment tax It must be written. Self employment tax It must include: The amount of cash you contributed, Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), A description and good faith estimate of the value of any goods or services described in (b) (other than intangible religious benefits), and A statement that the only benefit you received was an intangible religious benefit, if that was the case. Self employment tax The acknowledgment does not need to describe or estimate the value of an intangible religious benefit. Self employment tax An intangible religious benefit is a benefit that generally is not sold in commercial transactions outside a donative (gift) context. Self employment tax An example is admission to a religious ceremony. Self employment tax You must get it on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Self employment tax   If the acknowledgment does not show the date of the contribution, you must also have a bank record or receipt, as described earlier, that does show the date of the contribution. Self employment tax If the acknowledgment shows the date of the contribution and meets the other tests just described, you do not need any other records. Self employment tax Payroll deductions. Self employment tax   If you make a contribution by payroll deduction and your employer withholds $250 or more from a single paycheck, you must keep: A pay stub, Form W-2, or other document furnished by your employer that shows the amount withheld as a contribution, and A pledge card or other document prepared by or for the qualified organization that shows the name of the organization and states the organization does not provide goods or services in return for any contribution made to it by payroll deduction. Self employment tax A single pledge card may be kept for all contributions made by payroll deduction regardless of amount as long as it contains all the required information. Self employment tax   If the pay stub, Form W-2, pledge card, or other document does not show the date of the contribution, you must have another document that does show the date of the contribution. Self employment tax If the pay stub, Form W-2, pledge card, or other document shows the date of the contribution, you do not need any other records except those just described in (1) and (2). Self employment tax Noncash Contributions For a contribution not made in cash, the records you must keep depend on whether your deduction for the contribution is: Less than $250, At least $250 but not more than $500, Over $500 but not more than $5,000, or Over $5,000. Self employment tax Amount of deduction. Self employment tax   In figuring whether your deduction is $500 or more, combine your claimed deductions for all similar items of property donated to any charitable organization during the year. Self employment tax   If you received goods or services in return, as described earlier in Contributions From Which You Benefit , reduce your contribution by the value of those goods or services. Self employment tax If you figure your deduction by reducing the fair market value of the donated property by its appreciation, as described earlier in Giving Property That Has Increased in Value , your contribution is the reduced amount. Self employment tax Deductions of Less Than $250 If you make any noncash contribution, you must get and keep a receipt from the charitable organization showing: The name of the charitable organization, The date and location of the charitable contribution, and A reasonably detailed description of the property. Self employment tax A letter or other written communication from the charitable organization acknowledging receipt of the contribution and containing the information in (1), (2), and (3) will serve as a receipt. Self employment tax You are not required to have a receipt where it is impractical to get one (for example, if you leave property at a charity's unattended drop site). Self employment tax Additional records. Self employment tax   You must also keep reliable written records for each item of contributed property. Self employment tax Your written records must include the following information. Self employment tax The name and address of the organization to which you contributed. Self employment tax The date and location of the contribution. Self employment tax A description of the property in detail reasonable under the circumstances. Self employment tax For a security, keep the name of the issuer, the type of security, and whether it is regularly traded on a stock exchange or in an over-the-counter market. Self employment tax The fair market value of the property at the time of the contribution and how you figured the fair market value. Self employment tax If it was determined by appraisal, keep a signed copy of the appraisal. Self employment tax The cost or other basis of the property, if you must reduce its fair market value by appreciation. Self employment tax Your records should also include the amount of the reduction and how you figured it. Self employment tax The amount you claim as a deduction for the tax year as a result of the contribution, if you contribute less than your entire interest in the property during the tax year. Self employment tax Your records must include the amount you claimed as a deduction in any earlier years for contributions of other interests in this property. Self employment tax They must also include the name and address of each organization to which you contributed the other interests, the place where any such tangible property is located or kept, and the name of any person in possession of the property, other than the organization to which you contributed it. Self employment tax The terms of any conditions attached to the contribution of property. Self employment tax Deductions of At Least $250 But Not More Than $500 If you claim a deduction of at least $250 but not more than $500 for a noncash charitable contribution, you must get and keep an acknowledgment of your contribution from the qualified organization. Self employment tax If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that shows your total contributions. Self employment tax The acknowledgment must contain the information in items (1) through (3) under Deductions of Less Than $250 , earlier, and your written records must include the information listed in that discussion under Additional records . Self employment tax The acknowledgment must also meet these tests. Self employment tax It must be written. Self employment tax It must include: A description (but not necessarily the value) of any property you contributed, Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), and A description and good faith estimate of the value of any goods or services described in (b). Self employment tax If the only benefit you received was an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in a commercial transaction outside the donative context, the acknowledgment must say so and does not need to describe or estimate the value of the benefit. Self employment tax You must get it on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Self employment tax Deductions Over $500 You are required to give additional information if you claim a deduction over $500 for noncash charitable contributions. Self employment tax See Records To Keep in Publication 526 for more information. Self employment tax Out-of-Pocket Expenses If you give services to a qualified organization and have unreimbursed out-of-pocket expenses related to those services, the following two rules apply. Self employment tax You must have adequate records to prove the amount of the expenses. Self employment tax If any of your unreimbursed out-of-pocket expenses, considered separately, are $250 or more (for example, you pay $250 or more for an airline ticket to attend a convention of a qualified organization as a chosen representative), you must get an acknowledgment from the qualified organization that contains: A description of the services you provided, A statement of whether or not the organization provided you any goods or services to reimburse you for the expenses you incurred, A description and a good faith estimate of the value of any goods or services (other than intangible religious benefits) provided to reimburse you, and A statement that the only benefit you received was an intangible religious benefit, if that was the case. Self employment tax The acknowledgment does not need to describe or estimate the value of an intangible religious benefit (defined earlier under Acknowledgment ). Self employment tax You must get the acknowledgment on or before the earlier of: The date you file your return for the year you make the contribution, or The due date, including extensions, for filing the return. Self employment tax Car expenses. Self employment tax   If you claim expenses directly related to use of your car in giving services to a qualified organization, you must keep reliable written records of your expenses. Self employment tax Whether your records are considered reliable depends on all the facts and circumstances. Self employment tax Generally, they may be considered reliable if you made them regularly and at or near the time you had the expenses. Self employment tax   For example, your records might show the name of the organization you were serving and the dates you used your car for a charitable purpose. Self employment tax If you use the standard mileage rate of 14 cents a mile, your records must show the miles you drove your car for the charitable purpose. Self employment tax If you deduct your actual expenses, your records must show the costs of operating the car that are directly related to a charitable purpose. Self employment tax   See Car expenses under Out-of-Pocket Expenses in Giving Services, earlier, for the expenses you can deduct. Self employment tax How To Report Report your charitable contributions on Schedule A (Form 1040). Self employment tax If your total deduction for all noncash contributions for the year is over $500, you must also file Form 8283. Self employment tax See How To Report in Publication 526 for more information. Self employment tax Prev  Up  Next   Home   More Online Publications