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us/form/irs/ty2020 — Axiom

(f8863)Form 8863, Education Credits (2020)#

(f8863)(document-1)#

Form 8863 Department of the Treasury Internal Revenue Service (99) Education Credits (American Opportunity and Lifetime Learning Credits) ▶ Attach to Form 1040 or 1040-SR. ▶ Go to www.irs.gov/Form8863 for instructions and the latest information. OMB No. 1545-0074 2020 Attachment Sequence No. 50 Name(s) shown on return Your social security number ▲ ! CAUTION Complete a separate Part III on page 2 for each student for whom you’re claiming either credit before you complete Parts I and II. Part I Refundable American Opportunity Credit 1 After completing Part III for each student, enter the total of all amounts from all Parts III, line 30 . . 1 2 Enter: $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying widow(er) . . . . . . . . . . . . . . . . . . 2 3 Enter the amount from Form 1040 or 1040-SR, line 11. If you’re filing Form 2555 or 4563, or you’re excluding income from Puerto Rico, see Pub. 970 for the amount to enter . . . . . . . . . . . . . . . . . . . 3 4 Subtract line 3 from line 2. If zero or less, stop; you can’t take any education credit . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er) . . . . . . . . . . . . . . . . . . . 5 6 If line 4 is: • Equal to or more than line 5, enter 1.000 on line 6 . . . . . . . . . . . . . • Less than line 5, divide line 4 by line 5. Enter the result as a decimal (rounded to at least three places) . . . . . . . . . . . . . . . . . . . . . . } . . . 6 . 7 Multiply line 1 by line 6. Caution: If you were under age 24 at the end of the year and meet the conditions described in the instructions, you can’t take the refundable American opportunity credit; skip line 8, enter the amount from line 7 on line 9, and check this box . . . . . . . . ▶ 7 8 Refundable American opportunity credit. Multiply line 7 by 40% (0.40). Enter the amount here and on Form 1040 or 1040-SR, line 29. Then go to line 9 below. . . . . . . . . . . . . . . 8 Part II Nonrefundable Education Credits 9 Subtract line 8 from line 7. Enter here and on line 2 of the Credit Limit Worksheet (see instructions) . 9 10 After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17, enter -0- on line 18, and go to line 19 . . . . . . . . . . . 10 11 Enter the smaller of line 10 or $10,000 . . . . . . . . . . . . . . . . . . . . . 11 12 Multiply line 11 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Enter: $138,000 if married filing jointly; $69,000 if single, head of household, or qualifying widow(er) . . . . . . . . . . . . . . . . . . . 13 14 Enter the amount from Form 1040 or 1040-SR, line 11. If you're filing Form 2555 or 4563, or you’re excluding income from Puerto Rico, see Pub. 970 for the amount to enter . . . . . . . . . . . . . . . . . . . 14 15 Subtract line 14 from line 13. If zero or less, skip lines 16 and 17, enter -0- on line 18, and go to line 19 . . . . . . . . . . . . . . . . . 15 16 Enter: $20,000 if married filing jointly; $10,000 if single, head of household, or qualifying widow(er) . . . . . . . . . . . . . . . . . . . 16 17 If line 15 is: • Equal to or more than line 16, enter 1.000 on line 17 and go to line 18 • Less than line 16, divide line 15 by line 16. Enter the result as a decimal (rounded to at least three places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17 . 18 Multiply line 12 by line 17. Enter here and on line 1 of the Credit Limit Worksheet (see instructions) ▶ 18 19 Nonrefundable education credits. Enter the amount from line 7 of the Credit Limit Worksheet (see instructions) here and on Schedule 3 (Form 1040), line 3 . . . . . . . . . . . . . . . 19 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 25379M Form 8863 (2020)

Form 8863 (2020) Page 2 Name(s) shown on return Your social security number ▲ ! CAUTION Complete Part III for each student for whom you’re claiming either the American opportunity credit or lifetime learning credit. Use additional copies of page 2 as needed for each student. Part III Student and Educational Institution Information. See instructions. 20 Student name (as shown on page 1 of your tax return) 21 Student social security number (as shown on page 1 of your tax return) 22 Educational institution information (see instructions) a. Name of first educational institution (1) Address. Number and street (or P.O. box). City, town or post office, state, and ZIP code. If a foreign address, see instructions. (2) Did the student receive Form 1098-T from this institution for 2020? Yes No (3) Did the student receive Form 1098-T from this institution for 2019 with box 7 checked? Yes No (4) Enter the institution’s employer identification number (EIN) if you’re claiming the American opportunity credit or if you checked “Yes” in (2) or (3). You can get the EIN from Form 1098-T or from the institution. – b. Name of second educational institution (if any) (1) Address. Number and street (or P.O. box). City, town or post office, state, and ZIP code. If a foreign address, see instructions. (2) Did the student receive Form 1098-T from this institution for 2020? Yes No (3) Did the student receive Form 1098-T from this institution for 2019 with box 7 checked? Yes No (4) Enter the institution’s employer identification number (EIN) if you’re claiming the American opportunity credit or if you checked “Yes” in (2) or (3). You can get the EIN from Form 1098-T or from the institution. – 23 Has the Hope Scholarship Credit or American opportunity credit been claimed for this student for any 4 tax years before 2020? Yes — Stop! Go to line 31 for this student. No — Go to line 24. 24 Was the student enrolled at least half-time for at least one academic period that began or is treated as having begun in 2020 at an eligible educational institution in a program leading towards a postsecondary degree, certificate, or other recognized postsecondary educational credential? See instructions. Yes — Go to line 25. No — Stop! Go to line 31 for this student. 25 Did the student complete the first 4 years of postsecondary education before 2020? See instructions. Yes — Stop! Go to line 31 for this student. No — Go to line 26. 26 Was the student convicted, before the end of 2020, of a felony for possession or distribution of a controlled substance? Yes — Stop! Go to line 31 for this student. No — Complete lines 27 through 30 for this student. ▲ ! CAUTION You can't take the American opportunity credit and the lifetime learning credit for the same student in the same year. If you complete lines 27 through 30 for this student, don’t complete line 31. American Opportunity Credit 27 Adjusted qualified education expenses (see instructions). Don’t enter more than $4,000 . . . . . 27 28 Subtract $2,000 from line 27. If zero or less, enter -0-. . . . . . . . . . . . . . . . . 28 29 Multiply line 28 by 25% (0.25) . . . . . . . . . . . . . . . . . . . . . . . . 29 30 If line 28 is zero, enter the amount from line 27. Otherwise, add $2,000 to the amount on line 29 and enter the result. Skip line 31. Include the total of all amounts from all Parts III, line 30, on Part I, line 1 . 30 Lifetime Learning Credit 31 Adjusted qualified education expenses (see instructions). Include the total of all amounts from all Parts III, line 31, on Part II, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . 31 Form 8863 (2020)

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(f8863)Form 8863, Education Credits (2020)#

(f8863)(document-1)#

(f8917)Form 8917, Tuition and Fees Deduction (Rev. January 2020)#

(f8917)(document-1)#

Form 8917 (Rev. January 2020) Tuition and Fees Deduction Department of the Treasury Internal Revenue Service ▶ Attach to Form 1040 or 1040-SR. ▶ Go to www.irs.gov/Form8917 for the latest information. OMB No. 1545-0074 Attachment Sequence No. 60 Name(s) shown on return Your social security number ▲ ! CAUTION Use this form for qualified tuition and fees paid in 2018, 2019, or 2020, and later years if legislation extends the deduction (see instructions). File a separate Form 8917 for each year after 2017 for which you qualify to take the deduction.

You can’t take both an education credit from Form 8863 and the tuition and fees deduction from this form for the same student for the same tax year. Before you begin: ✔To see if you qualify for this deduction, see Who Can Take the Deduction in the instructions below. ✔If you file Form 1040 or 1040-SR, figure any write-in adjustments. • For 2018: Figure any write-in adjustments to be entered on the dotted line next to Schedule 1 (Form 1040), line 36. • For 2019: Figure any write-in adjustments to be entered on the dotted line next to Schedule 1 (Form 1040 or 1040-SR), line 22. • For 2020 and later years: Figure any write-in adjustments for Schedule 1 (Form 1040 or 1040-SR); see the Instructions for Forms 1040 and 1040-SR. 1

(a) Student’s name (as shown on page 1 of your tax return)

First name Last name (b) Student’s social security number (as shown on page 1 of your tax return) (c) Adjusted qualified expenses (see instructions) 2 Add the amounts on line 1, column (c), and enter the total . . . . . . . . . . . . . 2 3 Enter the amount from your “total income” line of Form 1040 or 1040-SR . . . . . . . . . . . . . . . . . . .

3 4

• For 2018: Enter the total of the amounts on your 2018 Schedule 1 (Form 1040), lines 23 through 33, plus any write-in adjustments you entered on the dotted line next to Schedule 1 (Form 1040), line 36. • For 2019 and 2020: Enter the total of the amounts on your 2019 Schedule 1 (Form 1040 or 1040-SR), lines 10 through 20, plus any write-in adjustments you entered on the dotted line next to Schedule 1 (Form 1040 or 1040-SR), line 22. • For later years: See www.irs.gov/Form8917 to find out if the line references above for 2019 have changed . . . . . . . . 4 5 Subtract line 4 from line 3.* If the result is more than $80,000 ($160,000 if married filing jointly), stop; you can’t take the deduction for tuition and fees . . . . . . . . . . . . . . * If you’re filing Form 2555, 2555-EZ, or 4563, or you’re excluding income from Puerto Rico, see Effect of the Amount of Your Income on the Amount of Your Deduction in Pub. 970 to figure the amount to enter on line 5. 5 6 Tuition and fees deduction. Is the amount on line 5 more than $65,000 ($130,000 if married filing jointly)? Yes. Enter the smaller of line 2, or $2,000. No. Enter the smaller of line 2, or $4,000. } . . . . . . . . . . . . . . . 6 Also enter this amount on line 21 of the 2019 and 2020 Schedule 1 (Form 1040 or 1040-SR), or line 34 of the 2018 Schedule 1 (Form 1040). See www.irs.gov/Form8917 to find out if the line references above for 2019 have changed. For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37728P Form 8917 (Rev. 1-2020)

Form 8917 (Rev. 1-2020) Page 2 General Instructions Section references are to the Internal Revenue Code unless otherwise noted. What’s New Deduction extended. The tuition and fees deduction is extended for qualified tuition and fees paid in calendar years 2018, 2019, and 2020. Don’t claim the deduction for expenses paid after 2020 unless the credit is extended again. Use Form 8917 (Rev. January 2020) and these instructions for years after 2017, unless a newer revision is issued indicating it is succeeding this revision. Periodic updating. Form 8917 will no longer be updated annually. Instead, it will only be updated when necessary. For previous years, use the applicable Form 8917 for that year. Example 1. Use the 2017 Form 8917 for your 2017 qualified tuition and fees expenses deduction on your 2017 original or amended return. Form 1040-SR. Form 1040-SR is a new form for 2019 and later years, with larger print and available for taxpayers 65 years or older. Although it’s often mentioned with Form 1040 on Form 8917 and in these instructions, it isn’t available for 2018. Future Developments For the latest information about developments related to Form 8917 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form8917. Reminders Form 1098-T requirement. To be eligible to claim the tuition and fees deduction, American opportunity credit, or the lifetime earning credit, the law requires a taxpayer (or a dependent) to have received a Form 1098-T from an eligible educational institution. However, a taxpayer may claim one of these education benefits if the student doesn’t receive a Form 1098-T because the student’s educational institution isn’t required to send a Form 1098-T to the student under existing rules (for example, if the student is a nonresident alien, has qualified education expenses paid entirely with scholarships, or has qualified education expenses paid under a formal billing arrangement). If a student’s educational institution isn’t required to provide a Form 1098-T to the student, a taxpayer may claim one of these education benefits without a Form 1098-T if the taxpayer otherwise qualifies, can demonstrate that the taxpayer (or a dependent) was enrolled at an eligible educational institution, and can substantiate the payment of qualified tuition and related expenses. Purpose of Form Use Form 8917 (Rev. January 2020) to figure and take the deduction for tuition and fees expenses paid in calendar years 2018, 2019, and 2020, and later years if the deduction is extended. This deduction is based on adjusted qualified education expenses paid to an eligible educational institution (postsecondary). See Qualified Education Expenses, later, for more information. TIP You may be able to take the American opportunity credit or lifetime learning credit for your education expenses instead of the tuition and fees deduction. See Form 8863, Education Credits, and Pub. 970, Tax Benefits for Education, for more information about these credits. Who Can Take the Deduction You may be able to take the deduction if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. The deduction is based on the amount of qualified education expenses you paid for the student in the current year for academic periods beginning in the current year or beginning in the first 3 months of the following year. Generally, in order to claim the deduction for education expenses for a dependent, you must have paid the expenses in the current year and must claim the student as a dependent on your current year tax return (the “Dependents” line of Form 1040 or 1040-SR). For additional information, see Pub. 970. You can’t claim the tuition and fees deduction if any of the following apply. • Your filing status is married filing separately. • Another person can claim an exemption for you as a dependent on his or her tax return. You can’t take the deduction even if the other person doesn’t actually claim that exemption. • Your modified adjusted gross income (MAGI), as figured on line 5, is more than $80,000 ($160,000 if filing a joint return). • You were a nonresident alien for any part of the year and didn’t elect to be treated as a resident alien for tax purposes. More information on nonresident aliens can be found in Pub. 519, U.S. Tax Guide for Aliens. You can’t claim a tuition and fees deduction for any student if you or anyone else claims an American opportunity or lifetime learning credit (Form 8863) in the current year for expenses of the student for whom the qualified education expenses were paid. However, a state tax credit won’t disqualify you from claiming a tuition and fees deduction. Qualified Education Expenses Generally, qualified education expenses are amounts paid in the current year for tuition and fees required for the student’s enrollment or attendance at an eligible educational institution. Required fees include amounts for books, supplies, and equipment used in a course of study if required to be paid to the institution as a condition of enrollment or attendance. It doesn’t matter whether the expenses were paid in cash, by check, by credit or debit card, or with borrowed funds. Qualified education expenses include nonacademic fees, such as student activity fees, athletic fees, or other expenses unrelated to the academic course of instruction, only if the fee must be paid to the institution as a condition of enrollment or attendance. However, fees for personal expenses (described below) are never qualified education expenses. Qualified education expenses don’t include amounts paid for the following. • Personal expenses. This means room and board, insurance, medical expenses (including student health fees), transportation, and other similar personal, living, or family expenses. • Any course or other education involving sports, games, or hobbies, or any noncredit course, unless such course or other education is part of the student’s degree program or helps the student acquire or improve job skills. Qualified education expenses don’t include any expenses for which you take any other deduction, such as on Schedule A (Form 1040 or 1040-SR) or Schedule C (Form 1040 or 1040-SR).

Form 8917 (Rev. 1-2020) Page 3 You may receive Form 1098-T, Tuition Statement, from the institution reporting either payments received in the current year or amounts billed in the current year. However, the amounts may be different from the amount you paid (or are treated as having paid). In completing Form 8917, use only the amounts you actually paid (plus any amounts you’re treated as having paid) in the current year (reduced, as necessary, as described in Adjusted Qualified Education Expenses, later). See Pub. 970 for more information on Form 1098-T. Qualified education expenses paid directly to the institution by someone other than you or the student are treated as paid to the student and then paid by the student to the institution. Academic Period An academic period is any quarter, semester, trimester, or any other period of study as reasonably determined by an eligible educational institution. If an eligible educational institution uses credit hours or clock hours and doesn’t have academic terms, each payment period may be treated as an academic period. Prepaid Expenses Qualified education expenses paid in the current year for an academic period that begins in the first 3 months of the following year can be used in figuring the tuition and fees deduction for the current year only. Example 2. Qualified education expenses paid in 2018 for an academic period that begins in the first 3 months of 2019 can be used in figuring the tuition and fees deduction for 2018 only. See Academic Period, earlier. Example 3. If you pay $2,000 in December 2019 for qualified tuition for the 2020 winter quarter that begins in January 2020, you can use that $2,000 in figuring the tuition and fees deduction for 2019 only (if you meet all the other requirements). ▲ ! CAUTION You can’t use any amount you paid in the previous or future year to figure the qualified education expenses you use to figure your current year tuition and fees deduction. Example 4. You can’t use any amount you paid in 2017 or 2019 to figure the qualified deduction expenses you use to figure your 2018 tuition and fees deduction. Adjusted Qualified Education Expenses For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. The result is the amount of adjusted qualified education expenses for each student. Tax-free educational assistance. For tax-free educational assistance received in the current year, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. See Academic Period, earlier. Tax-free educational assistance includes: 1. The tax-free part of any scholarship or fellowship grant (including Pell grants); 2. The tax-free part of any employer-provided educational assistance; 3. Veterans’ educational assistance; and 4. Any other educational assistance that is excludable from gross income (tax free), other than as a gift, bequest, devise, or inheritance. TIP You may be able to increase the combined value of your tuition and fees deduction and certain educational assistance if the student includes some or all of the educational assistance in income in the year it is received. For details, see Pub. 970. Generally, any scholarship or fellowship grant is treated as tax-free educational assistance. However, a scholarship or fellowship grant isn’t treated as tax-free educational assistance to the extent the student includes it in gross income (the student may or may not be required to file a tax return) for the year the scholarship or fellowship grant is received and either: • The scholarship or fellowship grant (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. 970; or • The scholarship or fellowship grant (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. 970. Tax-free educational assistance treated as a refund. Some tax-free educational assistance received after the current year may be treated as a refund of qualified education expenses paid in the current year. This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after the current year for qualified education expenses paid on behalf of a student in the current year (or attributable to enrollment at an eligible educational institution during the current year). If this tax-free educational assistance is received after the current year but before you file your current year income tax return, see Refunds received after the current year but before your income tax return is filed, later. If this tax-free educational assistance is received after the current year and after you file your current year income tax return, see Refunds received after the current year and after your income tax return is filed, later. Refunds. A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or may require you to include some or all of the refund in your gross income for the year the refund is received. See Pub. 970 for more information. Some tax-free educational assistance received after the current year may be treated as a refund. See Tax-free educational assistance treated as a refund, earlier. Refunds received in the current year. For each student, figure the adjusted qualified education expenses for the current year by adding all the qualified education expenses paid in the current year and subtracting any refunds of those expenses received from the eligible educational institution during the current year. Refunds received after the current year but before your income tax return is filed. If anyone receives a refund after the current year of qualified education expenses you paid on behalf of a student in the current year and the refund is received before you file your current year income tax return, reduce the amount of qualified education expenses for the current year by the amount of the refund. Refunds received after the current year and after your income tax return is filed. If anyone receives a refund after the current year of qualified education expenses you paid on behalf of a student in the current year and the refund is received after you file your current year income tax return, you may need to include some or all of the refund in your gross income for the year the refund is received. See Pub. 970 for more information. Coordination with Coverdell education savings accounts and qualified tuition programs. Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program.

Form 8917 (Rev. 1-2020) Page 4 Eligible Educational Institution An eligible educational institution is generally any accredited public, nonprofit, or proprietary (private) college, university, vocational school, or other postsecondary institution. Also, the institution must be eligible to participate in a student aid program administered by the Department of Education. Virtually all accredited postsecondary institutions meet this definition. An eligible educational institution also includes certain educational institutions located outside the United States that are eligible to participate in a student aid program administered by the Department of Education. TIP The educational institution should be able to tell you if it is an eligible institution. Additional Information See Pub. 970 for more information about the tuition and fees deduction. Specific Instructions Line 1 Complete columns (a) through (c) on line 1 for each student for whom you elect to take the tuition and fees deduction. Note: If you have more than three students who qualify for the tuition and fees deduction, enter “See attached” next to line 1 and attach a statement with the required information for each additional student. Include the amounts from line 1, column (c), for all students in the total you enter on line 2. Column (c) For each student, enter the amount of adjusted qualified education expenses. The expenses must have been paid for the student in the current year for academic periods beginning in the current year but before April 1 of the following year.

(i1040sca)Instructions for Schedule A (Form 1040), Itemized Deductions (2020)#

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Department of the Treasury Internal Revenue Service 2020 Instructions for Schedule A Itemized Deductions Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your federal income tax will be less if you take the larger of your itemized deductions or your standard deduction. If you itemize, you can deduct a part of your medical and dental expenses, and amounts you paid for certain taxes, interest, contributions, and other expenses. You can also deduct certain casualty and theft losses. If you and your spouse paid expenses jointly and are filing separate returns for 2020, see Pub. 504 to figure the portion of joint expenses that you can claim as itemiz- ed deductions. Don't include on Schedule A items deducted elsewhere, such as on Form 1040, Form 1040-SR, or Schedule C, E, or F. CAUTION ! Section references are to the Internal Revenue Code unless otherwise noted. Future Developments. For the latest information about developments related to Schedule A (Form 1040) and its in- structions, such as legislation enacted af- ter they were published, go to IRS.gov/ ScheduleA. What's New Qualified contributions. For 2020 and 2021, you may be able to elect a tempo- rary suspension of certain limitations that apply to cash contributions made during the year. See Line 11, later, and Pub. 526 for more information. Standard mileage rates. The standard mileage rate allowed for operating ex- penses for a car when you use it for medical reasons decreased to 17 cents a mile. The 2020 rate for use of your vehi- cle to do volunteer work for certain charitable organizations remains at 14 cents a mile. Medical and Dental Expenses You can deduct only the part of your medical and dental expenses that ex- ceeds 7.5% of the amount of your adjus- ted gross income on Form 1040 or 1040-SR, line 11. If you received a distribution from a health savings account or a medical savings account in 2020, see Pub. 969 to figure your deduc- tion. Deceased taxpayer. Certain medical expenses paid out of a deceased taxpay- er's estate can be claimed on the de- ceased taxpayer's final return. See Pub. 502 for details. More information. Pub. 502 discusses the types of expenses you can and can’t deduct. It also explains when you can deduct capital expenses and special care expenses for disabled persons. Examples of Medical and Dental Payments You Can Deduct To the extent you weren't reimbursed, you can deduct what you paid for: • Insurance premiums for medical and dental care, including premiums for qualified long-term care insurance con- tracts as defined in Pub. 502. But see Limit on long-term care premiums you can deduct, later. Reduce the insurance premiums by any self-employed health insurance deduction you claimed on Schedule 1 (Form 1040), line 16. You can't deduct insurance premiums paid by making a pre-tax reduction to your em- ployee compensation because these amounts are already being excluded from your income by not being included in box 1 of your Form(s) W-2. If you are a retired public safety officer, you can't deduct any premiums you paid to the ex- CAUTION ! tent they were paid for with a tax-free distribution from your retirement plan. If, during 2020, you were an el- igible trade adjustment assis- tance (TAA) recipient, an alter- native TAA (ATAA) recipient, reemploy- ment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) payee, you must reduce your insurance premiums by any amounts used to figure the health coverage tax credit. See Line 1, later. • Prescription medicines or insulin. • Acupuncturists, chiropractors, den- tists, eye doctors, medical doctors, occu- pational therapists, osteopathic doctors, physical therapists, podiatrists, psychia- trists, psychoanalysts (medical care on- ly), and psychologists. • Medical examinations, X-ray and laboratory services, and insulin treat- ments your doctor ordered. • Diagnostic tests, such as a full-body scan, pregnancy test, or blood sugar test kit. • Nursing help (including your share of the employment taxes paid). If you paid someone to do both nursing and housework, you can deduct only the cost of the nursing help. • Hospital care (including meals and lodging), clinic costs, and lab fees. • Qualified long-term care services (see Pub. 502). • The supplemental part of Medicare insurance (Medicare B). • The premiums you pay for Medi- care Part D insurance. CAUTION ! A-1 Jan 04, 2021 Cat. No. 53061X

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• A program to stop smoking and for prescription medicines to alleviate nico- tine withdrawal. • A weight-loss program as treat- ment for a specific disease (including obesity) diagnosed by a doctor. • Medical treatment at a center for drug or alcohol addiction. • Medical aids such as eyeglasses, contact lenses, hearing aids, braces, crutches, wheelchairs, and guide dogs, including the cost of maintaining them. • Surgery to improve defective vi- sion, such as laser eye surgery or radial keratotomy. • Lodging expenses (but not meals) while away from home to receive medi- cal care provided by a physician in a hospital or a medical care facility related to a hospital, provided there was no sig- nificant element of personal pleasure, recreation, or vacation in the travel. Don't deduct more than $50 a night for each person who meets the requirements in Pub. 502 under Lodging. • Ambulance service and other trav- el costs to get medical care. If you used your own car, you can claim what you spent for gas and oil to go to and from the place you received the care; or you can claim 17 cents a mile. Add parking and tolls to the amount you claim under either method. • Cost of breast pumps and supplies that assist lactation. Limit on long-term care premiums you can deduct. The amount you can deduct for qualified long-term care in- surance contracts (as defined in Pub. 502) depends on the age, at the end of 2020, of the person for whom the premi- ums were paid. See the following chart for details. IF the person was, at the end of 2020, age . . . THEN the most you can deduct is . . . . 40 or under $ 430 41–50 $ 810 51–60 $ 1,630 61–70 $ 4,350 71 or older $ 5,430 Examples of Medical and Dental Payments You Can't Deduct • The cost of diet food. • Cosmetic surgery unless it was necessary to improve a deformity related to a congenital abnormality, an injury from an accident or trauma, or a disfig- uring disease. • Life insurance or income protec- tion policies. • The Medicare tax on your wages and tips or the Medicare tax paid as part of the self-employment tax or household employment taxes. If you were age 65 or older but not entitled to social security benefits, you can deduct premi- ums you voluntarily paid for Medicare A coverage. • Nursing care for a healthy baby. But you may be able to take a credit for the amount you paid. See the Instruc- tions for Form 2441. • Illegal operations or drugs. • Imported drugs not approved by the U.S. Food and Drug Administration (FDA). This includes foreign-made ver- sions of U.S.-approved drugs manufac- tured without FDA approval. • Nonprescription medicines, other than insulin (including nicotine gum and certain nicotine patches). • Travel your doctor told you to take for rest or a change. • Funeral, burial, or cremation costs. Line 1 Medical and Dental Expenses Enter the total of your medical and den- tal expenses, after you reduce these ex- penses by any payments received from insurance or other sources. See Reim- bursements, later. If advance payments of the premium tax credit were made, or you think you may be eligible to claim a premium tax credit, fill out Form 8962 before filling out Schedule A, line 1. See Pub. 502 for how to figure your medical and dental expenses deduction. TIP Don't forget to include insur- ance premiums you paid for medical and dental care. How- ever, if you claimed the self-employed health insurance deduction on Schedule 1 (Form 1040), line 16, reduce the pre- miums by the amount on line 16. If, during 2020, you were an el- igible trade adjustment assis- tance (TAA) recipient, an alter- native TAA (ATAA) recipient, reemploy- ment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) payee, you must complete Form 8885 before completing Schedule A, line 1. When figuring the amount of insurance premiums you can deduct on Sched- ule A, don’t include any of the following. • Any amounts you included on Form 8885, line 4 or on Form 14095 (The Health Coverage Tax Credit (HCTC) Reimbursement Request Form). • Any qualified health insurance coverage premiums you paid to "U.S. Treasury–HCTC" for eligible coverage months for which you received the bene- fit of the advance monthly payment pro- gram. • Any advance monthly payments your health plan administrator received from the IRS, as shown on Form 1099-H (Health Coverage Tax Credit (HCTC) Advance Payments). Whose medical and dental expenses can you include? You can include medical and dental bills you paid in 2020 for anyone who was one of the fol- lowing either when the services were provided or when you paid for them. • Yourself and your spouse. • All dependents you claim on your return. • Your child whom you don't claim as a dependent because of the rules for children of divorced or separated pa- rents. See Child of divorced or separa- ted parents in Pub. 502 for more infor- mation. • Any person you could have claim- ed as a dependent on your return except that person received $4,300 or more of gross income or filed a joint return. • Any person you could have claim- ed as a dependent except that you, or your spouse if filing jointly, can be claimed as a dependent on someone else's 2020 return. TIP CAUTION ! A-2

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Example. You provided over half of your mother's support but can't claim her as a dependent because she received wa- ges of $4,300 in 2020. You can include on line 1 any medical and dental expen- ses you paid in 2020 for your mother. Insurance premiums for certain non- dependents. You may have a medical or dental insurance policy that also cov- ers an individual who isn't your depend- ent (for example, a nondependent child under age 27). You can't deduct any pre- miums attributable to this individual, un- less he or she is a person described un- der Whose medical and dental expenses can you include, earlier. However, if you had family coverage when you add- ed this individual to your policy and your premiums didn't increase, you can enter on line 1 the full amount of your medical and dental insurance premiums. See Pub. 502 for more information. Reimbursements. If your insurance company paid the provider directly for part of your expenses, and you paid only the amount that remained, include on line 1 only the amount you paid. If you received a reimbursement in 2020 for medical or dental expenses you paid in 2020, reduce your 2020 expenses by this amount. If you received a reimburse- ment in 2020 for prior year medical or dental expenses, don't reduce your 2020 expenses by this amount. However, if you deducted the expenses in the earlier year and the deduction reduced your tax, you must include the reimbursement in income on Schedule 1 (Form 1040), line 8. See Pub. 502 for details on how to figure the amount to include. Cafeteria plans. You can’t deduct amounts that have already been exclu- ded from your income; so, don’t include on line 1 insurance premiums paid by an employer-sponsored health insurance plan (cafeteria plan) unless the premi- ums are included in box 1 of your Form(s) W-2. Also, don't include any other medical and dental expenses paid by the plan unless the amount paid is in- cluded in box 1 of your Form(s) W-2. Taxes You Paid Taxes You Can't Deduct • Federal income and most excise taxes. • Social security, Medicare, federal unemployment (FUTA), and railroad re- tirement (RRTA) taxes. • Customs duties. • Federal estate and gift taxes. How- ever, see Line 16, later, if you had in- come in respect of a decedent. • Certain state and local taxes, in- cluding tax on gasoline, car inspection fees, assessments for sidewalks or other improvements to your property, tax you paid for someone else, and license fees (for example, marriage, driver's, and pet). • Foreign personal or real property taxes. Line 5 The deduction for state and local taxes is generally limited to $10,000 ($5,000 if married filing separately). State and lo- cal taxes subject to this limit are the tax- es that you include on lines 5a, 5b, and 5c. Safe harbor for certain charitable contributions made in exchange for a state or local tax credit. If you made a charitable contribution in exchange for a state or local tax credit and your charita- ble contribution deduction must be re- duced as a result of receiving or expect- ing to receive the tax credit, you may qualify for a safe harbor that allows you to treat some or all of the disallowed charitable contribution as a payment of state and local taxes. The safe harbor applies if you meet the following conditions. 1. You made a cash contribution to an entity described in section 170(c). 2. In return for the cash contribu- tion, you received a state or local tax credit. 3. You must reduce your charitable contribution amount by the amount of the state or local tax credit you receive. If you meet these conditions, and to the extent you apply the state or local tax credit to this or a prior year's state or lo- cal tax liability, you may include this amount on line 5a, 5b, or 5c, whichever is appropriate. To the extent you apply a portion of the credit to offset your state or local tax liability in a subsequent year (as permitted by law), you may treat this amount as state or local tax paid in the year the credit is applied. For more information about this safe harbor and examples, see Notice 2019-12 at IRS.gov/irb/ 2019-27_IRB#NOT-2019-12. U.S. possession taxes. Include taxes imposed by a U.S. possession with your state and local taxes on lines 5a, 5b, and 5c. However, don't include any U.S. possession taxes you paid that are allo- cable to excluded income. You may want to take a credit for U.S. possession tax instead of a deduction. See the instruc- tions for Schedule 3 (Form 1040), line 1, for details. Line 5a You can elect to deduct state and local general sales taxes instead of state and local in- come taxes. You can't deduct both. State and Local Income Taxes If you don't elect to deduct general sales taxes, include on line 5a the state and lo- cal income taxes listed next. • State and local income taxes with- held from your salary during 2020. Your Form(s) W-2 will show these amounts. Forms W-2G, 1099-G, 1099-R, 1099-MISC, and 1099-NEC may also show state and local income taxes with- held; however, don't include on line 5a any withheld taxes you deducted on oth- er forms, such as Schedule C, E or F. • State and local income taxes paid in 2020 for a prior year, such as taxes paid with your 2019 state or local in- come tax return. Don't include penalties or interest. • State and local estimated tax pay- ments made during 2020, including any part of a prior year refund that you chose to have credited to your 2020 state or lo- cal income taxes. • Mandatory contributions you made to the California, New Jersey, or New York Nonoccupational Disability Bene- fit Fund, Rhode Island Temporary Disa- bility Benefit Fund, or Washington State Supplemental Workmen's Compensation Fund. • Mandatory contributions to the Alaska, California, New Jersey, or Penn- sylvania state unemployment fund. • Mandatory contributions to state family leave programs, such as the New TIP CAUTION ! A-3

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Jersey Family Leave Insurance (FLI) program and the California Paid Family Leave program. Don't reduce your deduction by any: • State or local income tax refund or credit you expect to receive for 2020, or • Refund of, or credit for, prior year state and local income taxes you actually received in 2020. Instead, see the in- structions for Schedule 1 (Form 1040), line 1. State and Local General Sales Taxes If you elect to deduct state and local general sales taxes instead of income taxes, you must check the box on line 5a. To figure your state and local general sales tax deduction, you can use either your actual expenses or the op- tional sales tax tables. Actual Expenses Generally, you can deduct the actual state and local general sales taxes (in- cluding compensating use taxes) you paid in 2020 if the tax rate was the same as the general sales tax rate. Food, clothing, and medical supplies. Sales taxes on food, clothing, and medi- cal supplies are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. Motor vehicles. Sales taxes on motor vehicles are deductible as a general sales tax even if the tax rate was different than the general sales tax rate. However, if you paid sales tax on a motor vehicle at a rate higher than the general sales tax, you can deduct only the amount of the tax that you would have paid at the gen- eral sales tax rate on that vehicle. In- clude any state and local general sales taxes paid for a leased motor vehicle. Motor vehicles include cars, motor- cycles, motor homes, recreational vehi- cles, sport utility vehicles, trucks, vans, and off-road vehicles. You must keep your actual re- ceipts showing general sales taxes paid to use this method. Trade or business items. Don't include sales taxes paid on items used in your trade or business. Instead, go to the in- structions for the form you are using to report business income and expenses to see if you can deduct these taxes. CAUTION ! Refund of general sales taxes. If you received a refund of state or local gener- al sales taxes in 2020 for amounts paid in 2020, reduce your actual 2020 state and local general sales taxes by this amount. If you received a refund of state or local general sales taxes in 2020 for prior year purchases, don't reduce your 2020 state and local general sales taxes by this amount. However, if you deduc- ted your actual state and local general sales taxes in the earlier year and the de- duction reduced your tax, you may have to include the refund in income on Schedule 1 (Form 1040), line 8. See Re- coveries in Pub. 525 for details. Optional Sales Tax Tables Instead of using your actual expenses, you can use the 2020 Optional State Sales Tax Table and the 2020 Optional Local Sales Tax Tables at the end of these instructions to figure your state and local general sales tax deduction. You may also be able to add the state and local general sales taxes paid on cer- tain specified items. To figure your state and local general sales tax deduction using the tables, complete the State and Local General Sales Tax Deduction Worksheet or use the Sales Tax Deduction Calculator at IRS.gov/SalesTax. If your filing status is married filing separately, both you and your spouse elect to deduct sales taxes, and your spouse elects to use the optional sales tax tables, you al- so must use the tables to figure your state and local general sales tax deduc- tion. Instructions for the State and Local General Sales Tax Deduction Worksheet Line 1. If you lived in the same state for all of 2020, enter the applicable amount, based on your 2020 income and family size, from the 2020 Optional State Sales Tax Table for your state. Read down the “At least–But less than” columns for your state and find the line that includes your 2020 income. If mar- ried filing separately, don't include your spouse's income. CAUTION ! Note. The family size column refers to the number of dependents listed on page 1 of Form 1040 or Form 1040-SR (and any continuation sheets) plus you and, if you are filing a joint return, your spouse. If you are married and not filing a joint return, you can include your spouse in family size only in certain cir- cumstances, which are described in Pub. 501. Income. Your 2020 income is the amount shown on your Form 1040 or 1040-SR, line 11, plus any nontaxable items, such as the following. • Tax-exempt interest. • Veterans' benefits. • Nontaxable combat pay. • Workers' compensation. • Nontaxable part of social security and railroad retirement benefits. • Nontaxable part of IRA, pension, or annuity distributions. Don't include rollovers. • Public assistance payments. What if you lived in more than one state? If you lived in more than one state during 2020, use the following steps to figure the amount to put on line 1 of the worksheet. 1. Look up the table amount for each state using the rules stated earlier. (If there is no table for a state, the table amount for that state is considered to be zero.) 2. Multiply the table amount of each state by a fraction, the numerator of which is the number of days you lived in the state during 2020 and the denomina- tor of which is the total number of days in the year (366). 3. If you also lived in a locality dur- ing 2020 that imposed a local general sales tax, complete a separate worksheet for each state you lived in using the pro- rated amount from step (2) for that state on line 1 of its worksheet. Otherwise, combine the prorated table amounts from step (2) and enter the total on line 1 of a single worksheet. Example. You lived in State A from January 1 through August 31, 2020 (244 days), and in State B from September 1 through December 31, 2020 (122 days). The table amount for State A is $500. The table amount for State B is $400. You would figure your state general sales tax as follows. A-4

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State and Local General Sales Tax Deduction Worksheet—Line 5a Keep for Your Records TIP Instead of using this worksheet, you can find your deduction by using the Sales Tax Deduction Calculator at IRS.gov/SalesTax. See the instructions for line 1 of the worksheet if you: Lived in more than one state during 2020, or Had any nontaxable income in 2020. Before you begin:

1. Enter your state general sales taxes from the 2020 Optional State Sales Tax Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. $ Next. If, for all of 2020, you lived only in Connecticut, the District of Columbia, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Jersey, or Rhode Island, skip lines 2 through 5, enter -0- on line 6, and go to line 7. Otherwise, go to line 2. 2. Did you live in Alaska, Arizona, Arkansas, Colorado, Georgia, Illinois, Louisiana, Mississippi, Missouri, New York, North Carolina, South Carolina, Tennessee, Utah, or Virginia in 2020? No. Enter -0-. . . . . . . . . . . . . . . 2. $ Yes. Enter your base local general sales taxes from the 2020 Optional Local Sales Tax Tables. 3. Did your locality impose a local general sales tax in 2020? Residents of California and Nevada, see the instructions for line 3 of the worksheet. No. Skip lines 3 through 5, enter -0- on line 6, and go to line 7. Yes. Enter your local general sales tax rate, but omit the percentage sign. For example, if your local general sales tax rate was 2.5%, enter 2.5. If your local general sales tax rate changed or you lived in more than one locality in the same state during 2020, see the instructions for line 3 of the worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . 4. Did you enter -0- on line 2? No. Skip lines 4 and 5 and go to line 6. Yes. Enter your state general sales tax rate (shown in the table heading for your state), but omit the percentage sign. For example, if your state general sales tax rate is 6%, enter 6.0 . . . . . . . . . . . . . . . . 4. . 5. Divide line 3 by line 4. Enter the result as a decimal (rounded to at least three places) . . . . . . . . . . . . . . . . 5. . 6. Did you enter -0- on line 2? No. Multiply line 2 by line 3. . . . . . . . . . . . . . . . . . . . . 6. $ Yes. Multiply line 1 by line 5. If you lived in more than one locality in the same state during 2020, see the instructions for line 6 of the worksheet. 7. Enter your state and local general sales taxes paid on specified items, if any. See the instructions for line 7 of the worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. $ 8. Deduction for general sales taxes. Add lines 1, 6, and 7. Enter the result here and the total from all your state and local general sales tax deduction worksheets, if you completed more than one, on Schedule A, line 5a. Be sure to check the box on that line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. $ A-5

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State A: $500 x 244/366 = $333 State B: $400 x 122/366 = 133 Total = $466 If none of the localities in which you lived during 2020 imposed a local gen- eral sales tax, enter $466 on line 1 of your worksheet. Otherwise, complete a separate worksheet for State A and State B. Enter $333 on line 1 of the State A worksheet and $133 on line 1 of the State B worksheet. Line 2. If you checked the “No” box, enter -0- on line 2, and go to line 3. If you checked the “Yes” box and lived in the same locality for all of 2020, enter the applicable amount, based on your 2020 income and family size, from the 2020 Optional Local Sales Tax Tables for your locality. Read down the “At least–But less than” columns for your locality and find the line that includes your 2020 income. See the instructions for line 1 of the worksheet to figure your 2020 income. The family size column refers to the number of dependents listed on page 1 of Form 1040 or Form 1040-SR (and any continuation sheets) plus you and, if you are filing a joint re- turn, your spouse. If you are married and not filing a joint return, you can include your spouse in family size only in cer- tain circumstances, which are described in Pub. 501. What if you lived in more than one locality? If you lived in more than one locality during 2020, look up the table amount for each locality using the rules stated earlier. If there is no table for your locality, the table amount is consid- ered to be zero. Multiply the table amount for each locality you lived in by a fraction. The numerator of the fraction is the number of days you lived in the locality during 2020 and the denomina- tor is the total number of days in the year (366). If you lived in more than one locality in the same state and the local general sales tax rate was the same for each locality, enter the total of the prora- ted table amounts for each locality in that state on line 2. Otherwise, complete a separate worksheet for lines 2 through 6 for each locality and enter each prora- ted table amount on line 2 of the appli- cable worksheet. Example. You lived in Locality 1 from January 1 through August 31, 2020 (244 days), and in Locality 2 from Sep- tember 1 through December 31, 2020 (122 days). The table amount for Locali- ty 1 is $100. The table amount for Lo- cality 2 is $150. You would figure the amount to enter on line 2 as follows. Note that this amount may not equal your local sales tax deduction, which is figured on line 6 of the worksheet. Locality 1: $100 x 244/366 = $ 67 Locality 2: $150 x 122/366 = 50 Total = $117 Line 3. If you lived in California, check the “No” box if your combined state and local general sales tax rate is 7.2500%. Otherwise, check the “Yes” box and in- clude on line 3 only the part of the com- bined rate that is more than 7.2500%. If you lived in Nevada, check the “No” box if your combined state and lo- cal general sales tax rate is 6.8500%. Otherwise, check the “Yes” box and in- clude on line 3 only the part of the com- bined rate that is more than 6.8500%. What if your local general sales tax rate changed during 2020? If you checked the “Yes” box and your local general sales tax rate changed during 2020, figure the rate to enter on line 3 as follows. Multiply each tax rate for the period it was in effect by a fraction. The numerator of the fraction is the number of days the rate was in effect during 2020 and the denominator is the total number of days in the year (366). Enter the total of the prorated tax rates on line 3. Example. Locality 1 imposed a 1% local general sales tax from January 1 through September 30, 2020 (274 days). The rate increased to 1.75% for the peri- od from October 1 through December 31, 2020 (92 days). You would enter “1.189” on line 3, figured as follows. January 1 – September 30: 1.00 x 274/366 = 0.749 October 1 – December 31: 1.75 x 92/366 = 0.440 Total = 1.189 What if you lived in more than one locality in the same state during 2020? Complete a separate worksheet for lines 2 through 6 for each locality in your state if you lived in more than one local- ity in the same state during 2020 and each locality didn't have the same local general sales tax rate. To figure the amount to enter on line 3 of the worksheet for each locality in which you lived (except a locality for which you used the 2020 Optional Local Sales Tax Tables to figure your local general sales tax deduction), multiply the local general sales tax rate by a frac- tion. The numerator of the fraction is the number of days you lived in the locality during 2020 and the denominator is the total number of days in the year (366). Example. You lived in Locality 1 from January 1 through August 31, 2020 (244 days), and in Locality 2 from Sep- tember 1 through December 31, 2020 (122 days). The local general sales tax rate for Locality 1 is 1%. The rate for Locality 2 is 1.75%. You would enter “0.667” on line 3 for the Locality 1 worksheet and “0.583” for the Locality 2 worksheet, figured as follows. Locality 1: 1.00 x 244/366 = 0.667 Locality 2: 1.75 x 122/366 = 0.583 Line 6. If you lived in more than one locality in the same state during 2020, you should have completed line 1 only on the first worksheet for that state and separate worksheets for lines 2 through 6 for any other locality within that state in which you lived during 2020. If you checked the “Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by the amount that you entered on line 1 for that state on the first worksheet. Line 7. Enter on line 7 any state and lo- cal general sales taxes paid on the fol- lowing specified items. If you are com- pleting more than one worksheet, include the total for line 7 on only one of the worksheets. 1. A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). Also include any state and local general sales taxes paid for a leased motor vehicle. If the state sales tax rate on these items is higher than the general sales tax rate, only in- clude the amount of tax you would have paid at the general sales tax rate. A-6

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2. An aircraft or boat, but only if the tax rate was the same as the general sales tax rate. 3. A home (including a mobile home or prefabricated home) or substan- tial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies. a. Your state or locality imposes a general sales tax directly on the sale of a home or on the cost of a substantial ad- dition or major renovation. b. You purchased the materials to build a home or substantial addition or to perform a major renovation and paid the sales tax directly. c. Under your state law, your con- tractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. The contract must state that the contractor is authorized to act in your name and must follow your direc- tions on construction decisions. In this case, you will be considered to have pur- chased any items subject to a sales tax and to have paid the sales tax directly. Don't include sales taxes paid on items used in your trade or business. If you received a refund of state or local general sales taxes in 2020, see Refund of general sales taxes, earlier. Line 5b State and Local Real Estate Taxes If you are a homeowner who received assistance under a State Housing Finance Agency Hardest Hit Fund program or an Emer- gency Homeowners' Loan program, see Pub. 530 for the amount you can include on line 5b. Enter on line 5b the state and local taxes you paid on real estate you own that wasn't used for business, but only if the taxes are assessed uniformly at a like rate on all real property throughout the community, and the proceeds are used for general community or governmental purposes. Pub. 530 explains the deduc- tions homeowners can take. Don't include the following amounts on line 5b. TIP • Foreign taxes you paid on real es- tate. • Itemized charges for services to specific property or persons (for exam- ple, a $20 monthly charge per house for trash collection, a $5 charge for every 1,000 gallons of water consumed, or a flat charge for mowing a lawn that had grown higher than permitted under a lo- cal ordinance). • Charges for improvements that tend to increase the value of your prop- erty (for example, an assessment to build a new sidewalk). The cost of a property improvement is added to the basis of the property. However, a charge is deductible if it is used only to main- tain an existing public facility in service (for example, a charge to repair an exist- ing sidewalk, and any interest included in that charge). If your mortgage payments include your real estate taxes, you can include only the amount the mortgage company actually paid to the taxing authority in 2020. If you sold your home in 2020, any real estate tax charged to the buyer should be shown on your settlement statement and in box 6 of any Form 1099-S you received. This amount is considered a refund of real estate taxes. See Refunds and rebates, later. Any real estate taxes you paid at closing should be shown on your settlement statement. You must look at your real es- tate tax bill to decide if any nondeductible itemized charg- es, such as those listed earlier, are in- cluded in the bill. If your taxing authori- ty (or lender) doesn't furnish you a copy of your real estate tax bill, ask for it. Prepayment of next year's property taxes. Only taxes paid in 2020 and as- sessed prior to 2021 can be deducted for 2020. State or local law determines whether and when a property tax is as- sessed, which is generally when the tax- payer becomes liable for the property tax imposed. Refunds and rebates. If you received a refund or rebate in 2020 of real estate taxes you paid in 2020, reduce your de- duction by the amount of the refund or rebate. If you received a refund or rebate in 2020 of real estate taxes you paid in an earlier year, don't reduce your deduc- tion by this amount. Instead, you must CAUTION ! include the refund or rebate in income on Schedule 1 (Form 1040), line 8, if you deducted the real estate taxes in the earlier year and the deduction reduced your tax. See Recoveries in Pub. 525 for details on how to figure the amount to include in income. Line 5c State and Local Personal Property Taxes Enter on line 5c the state and local per- sonal property taxes you paid, but only if the taxes were based on value alone and were imposed on a yearly basis. Example. You paid a yearly fee for the registration of your car. Part of the fee was based on the car's value and part was based on its weight. You can deduct only the part of the fee that was based on the car's value. Prepayment of next year's property taxes. Only taxes paid in 2020 and as- sessed prior to 2021 can be deducted for 2020. State or local law determines whether and when a property tax is as- sessed, which is generally when the tax- payer becomes liable for the property tax imposed. Line 6 Other Taxes Enter only one total on line 6, but list the type and amount of each tax included. Include on this line income taxes you paid to a foreign country and generation skipping tax (GST) imposed on certain income distributions. You may want to take a credit for the foreign tax instead of a deduction. See the instructions for Schedule 3 (Form 1040), line 1, for details. Don't include taxes you paid to a U.S. possession on this line; instead, include U.S. possession taxes on the appropriate state and local tax line. Don't include federal estate tax on in- come in respect of a decedent on this line; instead, include it on line 16. TIP A-7

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Interest You Paid The rules for deducting interest vary, de- pending on whether the loan proceeds are used for business, personal, or in- vestment activities. See Pub. 535 for more information about deducting busi- ness interest expenses. See Pub. 550 for more information about deducting in- vestment interest expenses. You can't deduct personal interest. However, you can deduct qualified home mortgage in- terest (on your Schedule A) and interest on certain student loans (on Schedule 1 (Form 1040), line 20), as explained in Pub. 936 and Pub. 970. If you use the proceeds of a loan for more than one purpose (for example, personal and business), you must allo- cate the interest on the loan to each use. You allocate interest on a loan in the same way as the loan is allocated. You do this by tracing disbursements of the debt proceeds to specific uses. For more information on allocating interest, see Pub. 535. In general, if you paid interest in 2020 that applies to any period after 2020, you can deduct only amounts that apply for 2020. Use Schedule A to deduct qualified home mortgage interest and investment interest. Line 8 Home Mortgage Interest If you are a homeowner who received assistance under a State Housing Finance Agency Hardest Hit Fund program or an Emer- gency Homeowners' Loan program, see Pub. 530 for the amount you can deduct on line 8a or 8b. A home mortgage is any loan that is se- cured by your main home or second home, regardless of how the loan is la- beled. It includes first and second mort- gages, home equity loans, and refi- nanced mortgages. A home can be a house, condomini- um, cooperative, mobile home, boat, or similar property. It must provide basic living accommodations including sleep- ing space, toilet, and cooking facilities. TIP Check the box on line 8 if you had one or more home mortgages in 2020 with an outstanding balance and you didn't use all of your home mortgage proceeds from those loans to buy, build, or substantially improve your home. In- terest paid on home mortgage proceeds used for other purposes isn’t deductible on lines 8a or 8b. See Limits on home mortgage inter- est, later, for more information about what interest you can include on lines 8a and 8b. If you used any home mortgage proceeds for a business or in- vestment purpose, interest you paid that is allocable to those proceeds may still be deductible as a business or investment expense elsewhere on your return. Limits on home mortgage interest. Your deduction for home mortgage in- terest is subject to a number of limits. If one or more of the following limits ap- plies, see Pub. 936 to figure your deduc- tion. Limit for loan proceeds not used to buy, build, or substantially improve your home. You can only deduct home mortgage interest to the extent that the loan proceeds from your home mortgage are used to buy, build, or substantially improve the home securing the loan ("qualifying debt"). Make sure to check the box on line 8 if you had one or more home mortgages in 2020 with an out- standing balance and you didn't use all of the loan proceeds to buy, build, or substantially improve the home. The on- ly exception to this limit is for loans tak- en out on or before October 13, 1987; the loan proceeds for these loans are treated as having been used to buy, build, or substantially improve the home. See Pub. 936 for more informa- tion about loans taken out on or before October 13, 1987. See Pub. 936 to figure your deduction if you must check the box on line 8. Limit on loans taken out on or be fore December 15, 2017. For qualify- ing debt taken out on or before Decem- ber 15, 2017, you can only deduct home mortgage interest on up to $1,000,000 ($500,000 if you are married filing sepa- rately) of that debt. The only exception is for loans taken out on or before Octo- ber 13, 1987; see Pub. 936 for more in- TIP formation about loans taken out on or before October 13, 1987. See Pub. 936 to figure your deduction if you have loans taken out on or before December 15, 2017, that exceed $1,000,000 ($500,000 if you are married filing separately). Limit on loans taken out after De cember 15, 2017. For qualifying debt taken out after December 15, 2017, you can only deduct home mortgage interest on up to $750,000 ($375,000 if you are married filing separately) of that debt. If you also have qualifying debt subject to the $1,000,000 limitation discussed un- der Limit on loans taken out on or be- fore December 15, 2017, earlier, the $750,000 limit for debt taken out after December 15, 2017, is reduced by the amount of your qualifying debt subject to the $1,000,000 limit. An exception exists for certain loans taken out after December 15, 2017, but before April 1, 2018. If the exception applies, your loan may be treated in the same manner as a loan taken out on or before December 15, 2017; see Pub. 936 for more infor- mation about this exception. See Pub. 936 to figure your deduction if you have loans taken out after October 13, 1987, that exceed $750,000 ($375,000 if you are married filing sepa- rately). Limit when loans exceed the fair market value of the home. If the total amount of all mortgages is more than the fair market value of the home, see Pub. 936 to figure your deduction. Line 8a Enter on line 8a mortgage interest and points reported to you on Form 1098 un- less one or more of the limits on home mortgage interest apply to you. For more information about these limits, see Limits on home mortgage interest, earli- er. Home mortgage interest limited. If your home mortgage interest deduction is limited, see Pub. 936 to figure the amount of mortgage interest and points reported to you on Form 1098 that are deductible. Only enter on line 8a the de- ductible mortgage interest and points that were reported to you on Form 1098. Refund of overpaid interest. If your Form 1098 shows any refund of over- paid interest, don't reduce your A-8

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deduction by the refund. Instead, see the instructions for Schedule 1 (Form 1040), line 8. More than one borrower. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was your home, you can only deduct your share of the interest. Shared interest reported on your Form 1098. If the shared interest was reported on the Form 1098 you received, deduct only your share of the interest on line 8a. Let each of the other borrowers know what his or her share is. Shared interest reported on someone else's Form 1098. If the shared interest was reported on the other person's Form 1098, report your share of the interest on line 8b (as explained in Line 8b, later). Form 1098 doesn’t show all interest paid. If you paid more interest to the re- cipient than is shown on Form 1098, in- clude the larger deductible amount on line 8a and explain the difference. If you are filing a paper return, explain the dif- ference by attaching a statement to your paper return and printing “See attached” to the right of line 8a. If you are claiming the mort- gage interest credit (for holders of qualified mortgage credit certificates issued by state or local gov- ernmental units or agencies), subtract the amount shown on Form 8396, line 3, from the total deductible interest you paid on your home mortgage. Enter the result on line 8a. Line 8b If you paid home mortgage interest to a recipient who didn’t provide you a Form 1098, report your deductible mortgage interest on line 8b. Your deductible mortgage interest may be less than what you paid if one or more of the limits on home mortgage interest apply to you. For more information about these limits, see Limits on home mortgage interest, earlier. Seller financed mortgage. If you paid home mortgage interest to the person from whom you bought the home and that person didn’t provide you a Form 1098, write that person's name, identify- ing number, and address on the dotted lines next to line 8b. If the recipient of CAUTION ! your home mortgage payment(s) is an individual, the identifying number is his or her social security number (SSN). Otherwise, it is the employer identifica- tion number (EIN). You must also let the recipient know your SSN. If you don't show the required information about the recipient or let the recipient know your SSN, you may have to pay a $50 penalty. Interest reported on someone else’s Form 1098. If you and at least one oth- er person (other than your spouse if fil- ing jointly) were liable for and paid in- terest on the mortgage, and the home mortgage interest paid was reported on the other person’s Form 1098, identify the name and address of the person or persons who received a Form 1098 re- porting the interest you paid. If you are filing a paper return, identify the person by attaching a statement to your paper return and printing “See attached” to the right of line 8b. Line 8c Points Not Reported on Form 1098 Points are shown on your settlement statement. Points you paid only to bor- row money are generally deductible over the life of the loan. See Pub. 936 to figure the amount you can deduct. Points paid for other purposes, such as for a lender's services, aren't deductible. Refinancing. Generally, you must de- duct points you paid to refinance a mort- gage over the life of the loan. This is true even if the new mortgage is secured by your main home. If you used part of the proceeds to improve your main home, you may be able to deduct the part of the points rela- ted to the improvement in the year paid. See Pub. 936 for details. If you paid off a mortgage ear- ly, deduct any remaining points in the year you paid off the mortgage. However, if you refinanced your mortgage with the same lender, see Mortgage ending early in Pub. 936 for an exception. CAUTION ! TIP Line 8d Mortgage Insurance Premiums Enter the qualified mortgage insurance premiums you paid under a mortgage in- surance contract issued after December 31, 2006, in connection with home ac- quisition debt that was secured by your first or second home. Box 5 of Form 1098 shows the amount of premiums you paid in 2020. If you and at least one other person (other than your spouse if filing jointly) were liable for and paid the premiums in connection with the loan, and the premiums were reported on the other person's Form 1098, report your share of the premiums on line 8d. See Prepaid mortgage insurance premi- ums, later, if you paid any premiums al- locable to any period after 2020. Qualified mortgage insurance is mortgage insurance provided by the De- partment of Veterans Affairs, the Feder- al Housing Administration, or the Rural Housing Service (or their successor or- ganizations), and private mortgage in- surance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). Mortgage insurance provided by the Department of Veterans Affairs and the Rural Housing Service is commonly known as a funding fee and guarantee fee, respectively. These fees can be de- ducted fully in 2020 if the mortgage in- surance contract was issued in 2020. Contact the mortgage insurance issuer to determine the deductible amount if it isn't included in box 5 of Form 1098. Prepaid mortgage insurance premi- ums. If you paid qualified mortgage in- surance premiums that are allocable to periods after 2020, you must allocate them over the shorter of: • The stated term of the mortgage, or • 84 months, beginning with the month the insurance was obtained. The premiums are treated as paid in the year to which they are allocated. If the mortgage is satisfied before its term, no deduction is allowed for the unamor- tized balance. See Pub. 936 for details. The allocation rules, explained earli- er, don't apply to qualified mortgage in- surance provided by the Department of Veterans Affairs or the Rural Housing A-9

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Service (or their successor organiza- tions). Limit on amount you can deduct. You can't deduct your mortgage insurance premiums if the amount on Form 1040 or 1040-SR, line 11, is more than $109,000 ($54,500 if married filing sep- arately). If the amount on Form 1040 or 1040-SR, line 11, is more than $100,000 ($50,000 if married filing separately), your deduction is limited and you must use the Mortgage Insurance Premiums Deduction Worksheet to figure your de- duction. Line 9 Investment Interest Investment interest is interest paid on money you borrowed that is allocable to property held for investment. It doesn't include any interest allocable to passive activities or to securities that generate tax-exempt income. Complete and attach Form 4952 to figure your deduction. Exception. You don't have to file Form 4952 if all three of the following apply. 1. Your investment interest expense is less than your investment income from interest and ordinary dividends mi- nus any qualified dividends. 2. You have no other deductible in- vestment expenses. 3. You have no disallowed invest- ment interest expense from 2019. Alaska Permanent Fund divi- dends, including those reported on Form 8814, aren't invest- ment income. For more details, see Pub. 550. Gifts to Charity You can deduct contributions or gifts you gave to organizations that are reli- gious, charitable, educational, scientific, or literary in purpose. You can also de- duct what you gave to organizations that work to prevent cruelty to children or animals. Certain whaling captains may be able to deduct expenses paid in 2020 for Native Alaskan subsistence bowhead whale hunting activities. See Pub. 526 for details. To verify an organization's charitable status, you can: • Check with the organization to which you made the donation. The or- ganization should be able to provide you with verification of its charitable status. • Use our online search tool at IRS.gov/TEOS to see if an organization CAUTION ! is eligible to receive tax-deductible con- tributions (Publication 78 data). Examples of Qualified Charitable Organizations The following list gives some examples of qualified organizations. See Pub. 526 for more examples. • Churches, mosques, synagogues, temples, and other religious organiza- tions. • Boy Scouts, Boys and Girls Clubs of America, CARE, Girl Scouts, Good- will Industries, Red Cross, Salvation Ar- my, and United Way. • Fraternal orders, if the gifts will be used for the purposes listed under Gifts to Charity, earlier. • Veterans' and certain cultural groups. • Nonprofit hospitals and medical research organizations. • Most nonprofit educational organi- zations, such as colleges, but only if your contribution isn't a substitute for tuition or other enrollment fees. • Federal, state, and local govern- ments if the gifts are solely for public purposes. Amounts You Can Deduct Contributions can be in cash, property, or out-of-pocket expenses you paid to do volunteer work for the kinds of organi- zations described earlier. If you drove to Mortgage Insurance Premiums Deduction Worksheet—Line 8d Keep for Your Records See the instructions for line 8d to see if you must use this worksheet to figure your deduction. Before you begin:

1. Enter the total premiums you paid in 2020 for qualified mortgage insurance for a contract issued after December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Enter the amount from Form 1040 or 1040-SR, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter $100,000 ($50,000 if married filing separately) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Is the amount on line 2 more than the amount on line 3? No. Your deduction isn't limited. Enter the amount from line 1 of this worksheet on Schedule A, line 8d. Don't complete the rest of this worksheet. Yes. Subtract line 3 from line 2. If the result isn't a multiple of $1,000 ($500 if married filing separately), increase it to the next multiple of $1,000 ($500 if married filing separately). For example, increase $425 to $1,000, increase $2,025 to $3,000; or if married filing separately, increase $425 to $500, increase $2,025 to $2,500, etc. . . . . . . . . . . . . . . . . 4.

5. Divide line 4 by $10,000 ($5,000 if married filing separately). Enter the result as a decimal. If the result is 1.0 or more, enter 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. . 6. Multiply line 1 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7. Mortgage insurance premiums deduction. Subtract line 6 from line 1. Enter the result here and on Schedule A, line 8d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. A-10

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and from the volunteer work, you can take the actual cost of gas and oil or 14 cents a mile. Add parking and tolls to the amount you claim under either meth- od. But don't deduct any amounts that were repaid to you. Gifts from which you benefit. If you made a gift and received a benefit in re- turn, such as food, entertainment, or merchandise, you can generally only de- duct the amount that is more than the value of the benefit. But this rule doesn't apply to certain membership benefits provided in return for an annual pay- ment of $75 or less or to certain items or benefits of token value. For details, see Pub. 526. Example. You paid $70 to a charita- ble organization to attend a fund-raising dinner and the value of the dinner was $40. You can deduct only $30. Gifts of $250 or more. You can deduct a gift of $250 or more only if you have a contemporaneous written acknowledg- ment from the charitable organization showing the information in (1) and (2) next. 1. The amount of any money con- tributed and a description (but not value) of any property donated. 2. Whether the organization did or didn’t give you any goods or services in return for your contribution. If you did receive any goods or services, a descrip- tion and estimate of the value must be included. If you received only intangible religious benefits (such as admission to a religious ceremony), the organization must state this, but it doesn't have to de- scribe or value the benefit. In figuring whether a gift is $250 or more, don't combine separate donations. For example, if you gave your church $25 each week for a total of $1,300, treat each $25 payment as a separate gift. If you made donations through pay- roll deductions, treat each deduction from each paycheck as a separate gift. See Pub. 526 if you made a separate gift of $250 or more through payroll deduc- tion. To be contemporaneous, you must get the written acknowledgment from the charitable organization by the date you file your return or the due date (in- cluding extensions) for filing your re- turn, whichever is earlier. Don't attach the contemporaneous written acknowl- edgment to your return. Instead, keep it for your records. Limit on the amount you can deduct. See Pub. 526 to figure the amount of your deduction if any of the following applies. 1. Your cash contributions or contri- butions of ordinary income property are more than 30% of the amount on Form 1040 or 1040-SR, line 11. 2. Your gifts of capital gain property are more than 20% of the amount on Form 1040 or 1040-SR, line 11. 3. You gave gifts of property that increased in value or gave gifts of the use of property. Amounts You Can't Deduct • Certain contributions to charitable organizations, to the extent that you re- ceive a state or local tax credit in return for your contribution. See Pub. 526 for more details and exceptions. See Safe harbor for certain charitable contributions made in exchange for a state or local tax credit, earlier under Line 5, if your cash contribution is disallowed because you received or expected to receive a credit. • An amount paid to or for the bene- fit of a college or university in exchange for the right to purchase tickets to an athletic event in the college or universi- ty's stadium. • Travel expenses (including meals and lodging) while away from home performing donated services, unless there was no significant element of per- sonal pleasure, recreation, or vacation in the travel. • Political contributions. • Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups. • Cost of raffle, bingo, or lottery tickets. But you may be able to deduct these expenses on line 16. See Line 16, later, for more information on gambling losses. • Value of your time or services. • Value of blood given to a blood bank. • The transfer of a future interest in tangible personal property. Generally, no deduction is allowed until the entire interest has been transferred. • Gifts to individuals and groups that are operated for personal profit. TIP • Gifts to foreign organizations. However, you may be able to deduct gifts to certain U.S. organizations that transfer funds to foreign charities and certain Canadian, Israeli, and Mexican charities. See Pub. 526 for details. • Gifts to organizations engaged in certain political activities that are of di- rect financial interest to your trade or business. See section 170(f)(9). • Gifts to groups whose purpose is to lobby for changes in the laws. • Gifts to civic leagues, social and sports clubs, labor unions, and chambers of commerce. • Value of benefits received in con- nection with a contribution to a charita- ble organization. See Pub. 526 for ex- ceptions. • Cost of tuition. However, you may be able to deduct this as part of the tui- tion and fees deduction (see Schedule 1 (Form 1040), line 21) or take an educa- tion credit (see Form 8863). Line 11 Gifts by Cash or Check Enter on line 11 the total value of gifts you made in cash or by check (including out-of-pocket expenses), unless a limit on deducting gifts applies to you. For more information about the limits on de- ducting gifts, see Limit on the amount you can deduct, earlier. If your deduc- tion is limited, you may have a carry- over to next year. See Pub. 526 for more information. Deduction for gifts by cash or check limited. If your deduction for the gifts you made in cash or by check is limited, see Pub. 526 to figure the amount you can deduct. Only enter on line 11 the de- ductible value of gifts you made in cash or by check. Recordkeeping. For any contribution made in cash, regardless of the amount, you must maintain as a record of the contribution a bank record (such as a canceled check or credit card statement) or a written record from the charity. The written record must include the name of the charity, date, and amount of the con- tribution. If you made contributions through payroll deduction, see Pub. 526 for information on the records you must keep. Don't attach the record to your tax return. Instead, keep it with your other tax records. A-11

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For contributions of $250 or more, you must also have a contemporaneous written acknowledgment from the chari- table organization. See Gifts of $250 or more, earlier, for more information. You will still need to keep a record of when you made the cash contribution if the contemporaneous written acknowledg- ment doesn't include that information. Qualified Contributions In general, you can elect to treat gifts by cash or check as qualified contributions if the gift was paid in 2020 to a qualified charitable organization. This election isn't available for contributions to an or- ganization described in IRC 509(a)(3) or for the establishment of a new, or main- tenance of an existing, donor advised fund. For details, see Pub. 526. Qualified contributions are not sub- ject to a limitation based on a percentage of adjusted gross income; however, cer- tain limits may apply if your qualified contributions are more than the amount on Form 1040 or 1040-SR, line 11, mi- nus all other allowable contributions. For details, see Pub. 526. Include any contributions that you elect to treat as qualified contributions in the total amount reported on line 11. In- dicate the election by also entering the amount of your qualified contributions on the dotted line next to the line 11 en- try space. Line 12 Other Than by Cash or Check Enter on line 12 the total value of your contributions of property other than by cash or check, unless a limit on deduct- ing gifts applies to you. For more infor- mation about the limits on deducting gifts, see Limit on the amount you can deduct, earlier. If your deduction is limi- ted, you may have a carryover to next year. See Pub. 526 for more informa- tion. Deduction for gifts other than by cash or check limited. If your deduction for the contributions of property other than by cash or check is limited, see Pub. 526 to figure the amount you can deduct. Only enter on line 12 the deductible val- ue of your contributions of property oth- er than by cash or check. Valuing contributions of used items. If you gave used items, such as clothing or furniture, deduct their fair market val- ue at the time you gave them. Fair mar- ket value is what a willing buyer would pay a willing seller when neither has to buy or sell and both are aware of the conditions of the sale. For more details on determining the value of donated property, see Pub. 561. Deduction more than $500. If the amount of your deduction is more than $500, you must complete and attach Form 8283. For this purpose, the “amount of your deduction” means your deduction before applying any income limits that could result in a carryover of contributions. Contribution of motor vehicle, boat, or airplane. If you deduct more than $500 for a contribution of a motor vehi- cle, boat, or airplane, you must also at- tach a statement from the charitable or- ganization to your paper return. The or- ganization may use Form 1098-C to pro- vide the required information. If your to- tal deduction is over $5,000 ($500 for certain contributions of clothing and household items (discussed next)), you may also have to get appraisals of the values of the donated property. See Form 8283 and its instructions for de- tails. Contributions of clothing and house- hold items. A deduction for these con- tributions will be allowed only if the items are in good used condition or bet- ter. However, this rule doesn't apply to a contribution of any single item for which a deduction of more than $500 is claimed and for which you include a qualified appraisal and Form 8283 with your tax return. Recordkeeping. If you gave property, you should keep a receipt or written statement from the organization you gave the property to, or a reliable written record, that shows the organization's name and address, the date and location of the gift, and a description of the prop- erty. For each gift of property, you should also keep reliable written records that include: • How you figured the property's value at the time you gave it. If the value was determined by an appraisal, keep a signed copy of the appraisal. • The cost or other basis of the prop- erty if you must reduce it by any ordina- ry income or capital gain that would have resulted if the property had been sold at its fair market value. • How you figured your deduction if you chose to reduce your deduction for gifts of capital gain property. • Any conditions attached to the gift. If the gift of property is $250 or more, you must also have a contempora- neous written acknowledgment from the charity. See Gifts of $250 or more, earli- er, for more information. Form 8283 doesn't satisfy the contemporaneous written acknowledgment requirement, and a contemporaneous written ac- knowledgment isn't a substitute for the other records you may need to keep if you gave property. If your total deduction for gifts of property is over $500, you gave less than your entire inter- est in the property, or you made a quali- fied conservation contribution, your re- cords should contain additional infor- mation. See Pub. 526 for details. Line 13 Carryover From Prior Year You may have contributions that you couldn't deduct in an earlier year be- cause they exceeded the limits on the amount you could deduct. In most cases, you have 5 years to use contributions that were limited in an earlier year. The same limits apply this year to your car- ryover amounts as applied to those amounts in the earlier year. After apply- ing those limits, enter the amount of your carryover that you are allowed to deduct this year. See Pub. 526 for de- tails. Casualty and Theft Losses Line 15 Complete and attach Form 4684 to fig- ure the amount of your loss. Only enter the amount from Form 4684, line 18, on line 15. CAUTION ! A-12

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Don't enter a net qualified dis- aster loss from Form 4684, line 15, on line 15. Instead, en- ter that amount, if any, on line 16. See Line 16, later, for information about re- porting a net qualified disaster loss. You can only deduct personal casual- ty and theft losses attributable to a feder- ally declared disaster to the extent that: 1. The amount of each separate casualty or theft loss is more than $100, and 2. The total amount of all losses during the year (reduced by the $100 limit discussed in (1)) is more than 10% of the amount on Form 1040 or 1040-SR, line 11. See the Instructions for Form 4684 and Pub. 547 for more information. Other Itemized Deductions Line 16 Increased Standard Deduction Reporting If you have a net qualified disaster loss on Form 4684, line 15, and you aren’t itemizing your deductions, you can claim an increased standard deduction using Schedule A by doing the follow- ing. 1. List the amount from Form 4684, line 15, on the dotted line next to line 16 as "Net Qualified Disaster Loss," and at- tach Form 4684. 2. List your standard deduction amount on the dotted line next to line 16 as "Standard Deduction Claimed With Qualified Disaster Loss." CAUTION ! 3. Combine the two amounts on line 16 and enter on Form 1040 or 1040-SR, line 12. Do not enter an amount on any other line of Schedule A. For more informa- tion on how to determine your increased standard deduction, see Pub. 976. Net Qualified Disaster Loss Reporting If you have a net qualified disaster loss on Form 4684, line 15, and you are itemizing your deductions, list the amount from Form 4684, line 15, on the dotted line next to line 16 as "Net Quali- fied Disaster Loss" and include with your other miscellaneous deductions on line 16. Also be sure to attach Form 4684. Don't include your net qualified disaster loss on line 15. Other Itemized Deductions List the type and amount of each ex- pense from the following list next to line 16 and enter the total of these ex- penses on line 16. If you are filing a pa- per return and you can't fit all your ex- penses on the dotted lines next to line 16, attach a statement instead show- ing the type and amount of each ex- pense. Only the expenses listed next can be deducted on line 16. For more information about each of these expenses, see Pub. 529. • Gambling losses (gambling losses include, but aren't limited to, the cost of non-winning bingo, lottery, and raffle tickets), but only to the extent of gam- bling winnings reported on Schedule 1 (Form 1040), line 8. CAUTION ! CAUTION ! • Casualty and theft losses of in- come-producing property from Form 4684, lines 32 and 38b, or Form 4797, line 18a. • Federal estate tax on income in re- spect of a decedent. • A deduction for amortizable bond premium (for example, a deduction al- lowed for a bond premium carryforward or a deduction for amortizable bond pre- mium on bonds acquired before October 23, 1986). • An ordinary loss attributable to a contingent payment debt instrument or an inflation-indexed debt instrument (for example, a Treasury Inflation-Protected Security). • Deduction for repayment of amounts under a claim of right if over $3,000. See Pub. 525 for details. • Certain unrecovered investment in a pension. • Impairment-related work expenses of a disabled person. Total Itemized Deductions Line 18 If you elect to itemize for state tax or other purposes even though your itemiz- ed deductions are less than your stand- ard deduction, check the box on line 18. Be sure to consider the adjust- ment to income for charitable contributions on Form 1040 or 1040-SR, line 10b, when deciding whether to itemize. You can only claim that adjustment to income if you take the standard deduction. TIP A-13

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2020 Optional State Sales Tax Tables Income Family Size Family Size Family Size At least But less than 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 Alabama 1 4.0000% Arizona 2 5.6000% Arkansas 2 6.5000% $0 $20,000 282 327 358 382 401 429 280 304 318 329 338 350 359 389 407 421 432 446 $20,000 $30,000 393 456 498 530 557 594 419 453 475 491 505 522 536 580 608 628 644 666 $30,000 $40,000 448 519 567 603 634 676 491 531 557 576 591 612 628 679 712 735 755 780 $40,000 $50,000 495 573 625 665 698 745 552 598 626 648 665 688 707 764 801 828 849 878 $50,000 $60,000 536 620 676 719 755 805 607 657 688 712 730 756 777 840 880 910 933 965 $60,000 $70,000 572 661 721 767 805 858 657 710 744 769 790 817 840 908 952 983 1009 1044 $70,000 $80,000 605 699 762 810 850 906 702 759 796 823 844 874 897 971 1017 1051 1079 1116 $80,000 $90,000 636 734 800 850 892 951 744 805 843 872 895 926 951 1029 1078 1114 1143 1182 $90,000 $100,000 664 766 835 888 931 992 784 848 888 918 942 975 1002 1084 1135 1173 1204 1245 $100,000 $120,000 702 809 881 937 982 1047 837 905 948 980 1005 1040 1069 1156 1211 1252 1284 1328 $120,000 $140,000 750 864 940 999 1048 1116 905 979 1025 1059 1087 1125 1156 1251 1310 1354 1389 1437 $140,000 $160,000 794 914 995 1057 1109 1180 969 1047 1097 1134 1163 1203 1236 1338 1401 1448 1486 1537 $160,000 $180,000 834 960 1045 1110 1164 1239 1028 1111 1163 1202 1233 1276 1311 1418 1486 1535 1575 1629 $180,000 $200,000 872 1003 1091 1159 1215 1294 1083 1170 1225 1266 1299 1344 1381 1494 1565 1618 1660 1716 $200,000 $225,000 911 1048 1139 1210 1268 1350 1140 1232 1290 1333 1368 1415 1454 1573 1648 1703 1747 1807 $225,000 $250,000 953 1095 1190 1264 1325 1410 1202 1299 1359 1405 1441 1491 1532 1657 1736 1794 1841 1904 $250,000 $275,000 992 1139 1238 1314 1377 1466 1260 1361 1425 1472 1510 1562 1605 1737 1819 1880 1929 1995 $275,000 $300,000 1028 1181 1283 1362 1427 1518 1315 1421 1487 1537 1576 1630 1675 1812 1898 1962 2013 2082 $300,000 or more 1242 1423 1544 1638 1716 1824 1641 1772 1854 1916 1965 2032 2087 2258 2365 2445 2508 2594 Income California 3 7.2500% Colorado 2 2.9000% Connecticut 4 6.3500% $0 $20,000 360 390 408 422 433 448 146 157 164 169 173 179 270 283 290 296 300 306 $20,000 $30,000 529 572 599 619 635 657 216 233 243 251 257 265 401 420 431 439 445 454 $30,000 $40,000 616 665 696 720 738 763 253 272 284 293 300 310 469 490 503 513 520 530 $40,000 $50,000 690 745 780 806 826 855 284 306 319 329 337 348 526 551 565 576 584 595 $50,000 $60,000 756 816 854 882 905 935 312 335 350 361 370 382 578 604 620 632 641 653 $60,000 $70,000 815 880 920 951 975 1008 337 362 378 390 399 412 624 652 670 682 692 706 $70,000 $80,000 869 938 981 1013 1039 1074 360 387 404 416 426 440 666 697 715 729 739 753 $80,000 $90,000 919 992 1038 1072 1099 1136 381 410 428 441 452 466 705 738 757 772 783 798 $90,000 $100,000 966 1043 1090 1126 1155 1193 401 431 450 464 475 490 742 776 797 812 824 839 $100,000 $120,000 1029 1110 1160 1198 1229 1270 428 460 480 495 506 523 791 827 849 865 878 895 $120,000 $140,000 1110 1197 1251 1292 1324 1369 462 497 518 534 547 564 854 893 917 934 948 966 $140,000 $160,000 1185 1277 1335 1378 1413 1460 494 531 554 571 585 603 913 955 980 999 1013 1032 $160,000 $180,000 1253 1351 1412 1458 1495 1544 524 563 587 605 619 639 967 1011 1038 1058 1073 1093 $180,000 $200,000 1318 1421 1485 1533 1571 1623 552 593 618 637 652 673 1018 1064 1093 1113 1129 1151 $200,000 $225,000 1386 1493 1560 1611 1651 1706 581 623 650 670 686 708 1070 1119 1149 1171 1188 1211 $225,000 $250,000 1458 1570 1641 1694 1736 1793 612 657 685 706 722 745 1127 1178 1210 1233 1251 1275 $250,000 $275,000 1525 1643 1717 1772 1816 1876 641 688 717 739 757 780 1180 1234 1267 1291 1309 1335 $275,000 $300,000 1590 1712 1789 1846 1892 1954 668 717 748 771 789 814 1230 1287 1321 1346 1366 1392 $300,000 or more 1968 2118 2212 2282 2338 2415 832 892 930 958 981 1011 1527 1598 1640 1671 1695 1728 Income District of Columbia 4 6.0000% Florida 1 6.0000% Georgia 2 4.0000% $0 $20,000 241 250 255 258 261 265 307 329 342 352 360 370 199 215 226 233 239 247 $20,000 $30,000 360 372 380 385 389 395 463 495 515 529 541 557 298 321 336 347 356 368 $30,000 $40,000 422 436 445 451 456 462 543 581 604 622 635 654 349 376 394 407 417 431 $40,000 $50,000 475 491 500 507 513 520 613 655 682 701 717 738 392 423 443 457 469 485 $50,000 $60,000 522 539 550 557 563 571 675 721 750 772 789 812 431 465 487 503 515 533 $60,000 $70,000 564 583 594 602 609 617 731 781 813 836 854 879 466 503 526 543 557 576 $70,000 $80,000 603 623 635 644 651 660 782 836 870 895 914 941 498 538 562 581 595 615 $80,000 $90,000 639 660 673 682 690 699 830 887 923 949 970 999 528 570 596 615 631 652 $90,000 $100,000 673 695 709 719 726 736 875 935 973 1000 1023 1052 556 600 627 648 664 686 $100,000 $120,000 718 742 756 767 775 786 935 999 1039 1069 1092 1124 594 640 669 691 709 732 $120,000 $140,000 776 802 818 829 838 849 1013 1082 1125 1157 1183 1217 642 692 724 747 766 792 $140,000 $160,000 831 858 875 887 896 909 1085 1159 1206 1240 1267 1304 687 741 774 799 820 847 $160,000 $180,000 881 910 927 940 950 963 1152 1230 1279 1316 1345 1384 729 785 821 847 869 897 $180,000 $200,000 928 958 977 990 1001 1015 1215 1298 1349 1387 1418 1459 768 827 865 893 915 945 $200,000 $225,000 977 1009 1028 1043 1054 1068 1280 1367 1422 1462 1494 1538 809 871 911 940 963 995 $225,000 $250,000 1029 1063 1084 1098 1110 1126 1350 1442 1500 1542 1576 1622 852 918 959 990 1015 1048 $250,000 $275,000 1079 1114 1136 1151 1163 1179 1416 1513 1573 1617 1653 1701 893 962 1005 1038 1063 1099 $275,000 $300,000 1126 1163 1185 1201 1214 1231 1479 1580 1643 1689 1726 1776 932 1004 1049 1083 1110 1146 $300,000 or more 1403 1449 1477 1497 1512 1533 1851 1977 2055 2113 2160 2222 1163 1252 1308 1349 1383 1428 Income Hawaii 1,6 4.0000% Idaho 1 6.0000% Illinois 2 6.2500% $0 $20,000 321 367 396 419 437 463 421 485 527 560 587 625 313 342 361 375 387 403 $20,000 $30,000 464 529 571 604 630 667 596 685 745 790 828 880 459 500 527 548 564 587 $30,000 $40,000 536 611 660 698 728 770 684 786 854 905 948 1008 534 582 613 636 655 682 $40,000 $50,000 598 681 736 777 811 858 759 871 945 1003 1050 1116 598 651 686 712 733 762 $50,000 $60,000 652 743 802 847 884 935 824 945 1026 1088 1139 1210 655 713 750 779 802 834 $60,000 $70,000 700 798 861 910 950 1005 883 1012 1098 1164 1218 1294 706 768 808 839 864 898 $70,000 $80,000 745 848 916 967 1009 1068 936 1073 1163 1233 1291 1371 753 819 862 894 920 956 $80,000 $90,000 785 894 966 1020 1064 1126 985 1128 1224 1297 1357 1441 797 866 911 945 972 1010 $90,000 $100,000 824 938 1012 1069 1116 1180 1031 1181 1280 1356 1419 1507 838 910 957 992 1021 1061 $100,000 $120,000 874 995 1074 1135 1184 1252 1091 1249 1354 1435 1501 1594 892 968 1018 1056 1086 1129 $120,000 $140,000 939 1069 1154 1219 1272 1345 1169 1338 1450 1536 1607 1705 962 1044 1097 1138 1170 1216 $140,000 $160,000 999 1137 1228 1296 1353 1431 1241 1419 1538 1629 1704 1808 1027 1114 1171 1213 1248 1296 $160,000 $180,000 1054 1200 1295 1368 1427 1509 1307 1494 1618 1714 1792 1902 1087 1179 1238 1283 1320 1370 $180,000 $200,000 1106 1258 1358 1434 1497 1583 1369 1564 1693 1793 1875 1990 1144 1239 1302 1349 1387 1440 $200,000 $225,000 1159 1319 1424 1504 1569 1659 1432 1636 1771 1875 1961 2080 1202 1302 1367 1417 1457 1512 $225,000 $250,000 1216 1384 1494 1577 1646 1740 1500 1713 1854 1963 2052 2177 1265 1370 1438 1489 1532 1590 $250,000 $275,000 1270 1444 1559 1646 1717 1816 1564 1785 1932 2045 2138 2267 1324 1433 1504 1558 1602 1662 $275,000 $300,000 1320 1502 1621 1712 1786 1888 1624 1853 2005 2122 2218 2353 1380 1493 1567 1623 1668 1731 $300,000 or more 1616 1838 1983 2093 2184 2309 1975 2249 2432 2572 2688 2849 1710 1847 1937 2004 2060 2136 A-14

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Income Family Size Family Size Family Size At least But less than 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 Indiana 4 7.0000% Iowa 1 6.0000% Kansas 1 6.5000% $0 $20,000 370 403 423 439 451 468 334 363 381 395 406 421 471 548 599 638 671 716 $20,000 $30,000 544 593 623 645 663 688 494 537 564 584 600 622 660 766 836 891 936 999 $30,000 $40,000 634 690 725 751 772 801 576 626 658 682 700 726 754 874 954 1016 1068 1139 $40,000 $50,000 710 773 813 842 865 897 646 703 738 765 786 815 832 965 1053 1122 1178 1257 $50,000 $60,000 778 847 890 922 948 983 709 771 810 839 862 893 901 1044 1140 1214 1274 1359 $60,000 $70,000 839 913 960 994 1022 1060 765 832 874 905 930 964 963 1115 1217 1295 1360 1451 $70,000 $80,000 895 974 1023 1060 1090 1130 817 888 933 966 993 1029 1018 1179 1287 1370 1438 1534 $80,000 $90,000 947 1030 1083 1122 1153 1195 864 940 987 1023 1051 1089 1070 1239 1351 1438 1510 1610 $90,000 $100,000 995 1083 1138 1179 1212 1256 909 988 1038 1075 1105 1145 1117 1293 1411 1502 1576 1681 $100,000 $120,000 1059 1152 1211 1255 1290 1337 968 1053 1106 1146 1177 1220 1180 1366 1490 1585 1664 1774 $120,000 $140,000 1142 1243 1306 1353 1391 1442 1045 1137 1194 1236 1271 1317 1261 1459 1591 1692 1776 1894 $140,000 $160,000 1219 1326 1394 1444 1484 1539 1116 1214 1275 1321 1357 1407 1335 1544 1683 1791 1880 2003 $160,000 $180,000 1290 1403 1475 1528 1570 1628 1182 1285 1350 1398 1437 1489 1403 1622 1768 1881 1974 2104 $180,000 $200,000 1356 1476 1551 1606 1651 1712 1244 1352 1420 1471 1512 1567 1466 1695 1847 1965 2062 2197 $200,000 $225,000 1425 1551 1630 1688 1735 1798 1308 1422 1494 1547 1590 1647 1531 1770 1929 2051 2152 2294 $225,000 $250,000 1499 1631 1714 1775 1824 1891 1376 1496 1572 1628 1673 1734 1600 1849 2015 2143 2249 2396 $250,000 $275,000 1568 1706 1793 1857 1909 1979 1440 1566 1645 1704 1751 1815 1665 1924 2096 2229 2339 2492 $275,000 $300,000 1634 1778 1868 1935 1989 2062 1502 1633 1715 1776 1825 1892 1726 1994 2173 2310 2424 2582 $300,000 or more 2021 2198 2309 2392 2458 2548 1861 2024 2126 2201 2262 2344 2081 2401 2614 2779 2915 3104 Income Kentucky 4 6.0000% Louisiana 2 4.4500% Maine 4 5.5000% $0 $20,000 318 343 359 370 380 392 231 247 256 264 269 277 230 246 256 264 270 278 $20,000 $30,000 478 516 539 556 570 589 347 371 385 396 405 416 335 358 373 383 392 404 $30,000 $40,000 562 606 633 653 670 692 408 435 452 465 475 489 388 415 432 444 454 468 $40,000 $50,000 634 683 714 737 755 780 460 491 510 524 535 551 434 464 483 497 508 522 $50,000 $60,000 698 752 786 811 831 858 506 540 561 577 589 606 475 507 528 543 555 571 $60,000 $70,000 756 814 851 878 900 929 548 585 608 625 638 656 511 546 568 584 597 614 $70,000 $80,000 809 871 911 940 963 995 586 626 650 668 683 702 545 582 605 622 635 654 $80,000 $90,000 859 925 966 997 1022 1055 622 664 690 709 724 745 576 615 639 657 671 691 $90,000 $100,000 905 975 1018 1051 1077 1112 656 700 727 747 763 785 605 645 671 690 705 725 $100,000 $120,000 967 1041 1088 1122 1150 1188 701 747 777 798 815 839 643 686 713 733 749 770 $120,000 $140,000 1047 1128 1178 1215 1245 1286 759 809 841 864 883 908 693 739 768 789 806 829 $140,000 $160,000 1122 1208 1262 1302 1334 1377 813 867 901 926 946 973 739 788 818 841 859 884 $160,000 $180,000 1191 1282 1339 1382 1416 1462 862 920 956 982 1003 1032 781 833 865 889 908 934 $180,000 $200,000 1256 1352 1412 1457 1493 1541 909 970 1008 1036 1058 1088 821 875 909 934 954 981 $200,000 $225,000 1324 1425 1488 1535 1573 1624 958 1022 1062 1091 1115 1146 862 919 954 980 1001 1029 $225,000 $250,000 1396 1503 1570 1619 1659 1713 1011 1078 1120 1151 1176 1209 906 965 1002 1030 1052 1082 $250,000 $275,000 1465 1576 1646 1698 1740 1796 1060 1131 1175 1207 1233 1268 947 1009 1048 1077 1099 1130 $275,000 $300,000 1530 1646 1719 1774 1817 1876 1107 1181 1227 1260 1287 1324 987 1051 1091 1121 1145 1177 $300,000 or more 1916 2061 2152 2219 2273 2346 1385 1477 1534 1576 1610 1656 1218 1296 1345 1381 1410 1449 Income Maryland 4 6.0000% Massachusetts 4 6.2500% Michigan 4 6.0000% $0 $20,000 265 290 306 318 327 341 273 294 307 317 325 336 292 315 329 339 347 359 $20,000 $30,000 393 428 450 468 482 501 400 430 449 464 475 491 436 470 490 506 518 535 $30,000 $40,000 458 499 525 545 561 584 465 500 522 539 552 570 511 550 574 592 607 626 $40,000 $50,000 515 560 589 611 629 654 521 559 584 602 617 637 575 619 646 666 683 704 $50,000 $60,000 565 614 646 670 690 717 570 612 639 659 675 697 633 680 710 732 750 774 $60,000 $70,000 610 662 697 723 744 773 614 659 688 710 727 750 684 736 768 792 811 837 $70,000 $80,000 651 707 743 771 793 824 654 703 733 756 774 799 732 786 821 846 867 895 $80,000 $90,000 690 749 787 816 840 872 692 743 775 799 818 845 776 834 870 897 919 948 $90,000 $100,000 726 787 828 858 883 917 727 780 814 839 860 887 817 878 916 945 967 998 $100,000 $120,000 774 839 882 914 940 976 774 830 866 893 914 943 872 937 978 1008 1032 1065 $120,000 $140,000 836 906 952 986 1014 1053 834 895 933 962 985 1016 943 1013 1057 1090 1116 1152 $140,000 $160,000 894 968 1017 1053 1083 1125 890 954 995 1026 1050 1083 1009 1084 1131 1166 1194 1232 $160,000 $180,000 947 1025 1076 1115 1147 1190 941 1009 1052 1084 1110 1145 1070 1150 1200 1236 1266 1306 $180,000 $200,000 997 1079 1133 1173 1206 1252 989 1061 1106 1139 1166 1203 1128 1212 1264 1303 1334 1376 $200,000 $225,000 1049 1135 1191 1234 1268 1316 1040 1114 1161 1197 1225 1264 1188 1276 1331 1372 1404 1449 $225,000 $250,000 1105 1195 1254 1298 1335 1385 1093 1171 1221 1258 1287 1328 1252 1344 1402 1445 1480 1526 $250,000 $275,000 1158 1251 1312 1359 1397 1449 1143 1225 1277 1315 1346 1388 1312 1409 1470 1515 1551 1599 $275,000 $300,000 1208 1305 1369 1417 1456 1511 1191 1276 1330 1370 1402 1446 1370 1471 1534 1581 1618 1669 $300,000 or more 1503 1621 1698 1757 1805 1872 1472 1576 1641 1690 1729 1783 1709 1834 1912 1971 2017 2080 Income Minnesota 1 6.8750% Mississippi 2 7.0000% Missouri 2 4.2250% $0 $20,000 323 340 351 359 365 373 518 595 646 685 716 761 225 247 261 271 280 292 $20,000 $30,000 489 515 531 543 552 564 732 840 911 965 1010 1072 333 366 386 402 414 431 $30,000 $40,000 576 606 625 639 650 664 840 962 1043 1106 1156 1227 389 427 451 469 484 504 $40,000 $50,000 651 685 706 722 734 750 930 1065 1155 1223 1280 1358 437 479 506 527 543 565 $50,000 $60,000 717 755 779 796 809 827 1009 1156 1253 1327 1388 1472 480 526 556 578 596 620 $60,000 $70,000 777 819 844 863 877 897 1079 1236 1340 1419 1484 1574 518 568 600 624 643 669 $70,000 $80,000 833 877 904 924 940 961 1143 1309 1419 1503 1571 1667 554 607 641 666 686 715 $80,000 $90,000 885 932 960 982 998 1021 1203 1377 1492 1580 1652 1752 586 643 678 705 727 757 $90,000 $100,000 933 983 1013 1035 1053 1077 1258 1440 1560 1652 1727 1832 617 676 714 742 765 796 $100,000 $120,000 998 1051 1083 1107 1126 1151 1330 1522 1649 1746 1826 1936 658 721 761 791 815 848 $120,000 $140,000 1081 1139 1175 1200 1221 1248 1424 1629 1764 1868 1953 2071 711 778 821 854 880 916 $140,000 $160,000 1160 1221 1259 1287 1309 1339 1509 1727 1870 1980 2070 2195 760 832 878 912 940 978 $160,000 $180,000 1232 1297 1338 1367 1391 1422 1588 1816 1966 2082 2176 2307 805 881 930 966 996 1036 $180,000 $200,000 1300 1369 1412 1443 1468 1501 1661 1900 2057 2177 2276 2413 848 928 979 1017 1048 1090 $200,000 $225,000 1371 1444 1489 1522 1548 1583 1737 1986 2150 2276 2379 2522 892 976 1030 1070 1102 1147 $225,000 $250,000 1447 1524 1572 1606 1634 1671 1817 2078 2249 2381 2488 2638 939 1028 1084 1126 1161 1207 $250,000 $275,000 1518 1600 1649 1686 1715 1753 1893 2164 2342 2479 2591 2746 984 1076 1135 1179 1215 1264 $275,000 $300,000 1587 1672 1724 1762 1792 1832 1964 2245 2430 2571 2688 2849 1026 1122 1184 1230 1267 1318 $300,000 or more 1992 2098 2164 2212 2250 2301 2378 2715 2938 3108 3248 3442 1276 1395 1471 1527 1573 1636 A-15

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Income Family Size Family Size Family Size At least But less than 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 Nebraska 1 5.5000% Nevada 5 6.8500% New Jersey 4 6.6250% $0 $20,000 292 314 328 338 346 357 341 370 389 402 413 428 312 326 335 341 346 353 $20,000 $30,000 439 472 493 508 521 537 503 546 572 592 608 630 474 495 508 517 525 535 $30,000 $40,000 515 554 579 597 612 631 587 636 667 690 708 733 558 583 599 610 619 631 $40,000 $50,000 581 625 653 673 690 712 658 713 747 773 794 822 631 659 677 689 700 713 $50,000 $60,000 639 688 719 741 759 784 722 781 819 847 870 900 697 728 747 761 772 787 $60,000 $70,000 692 745 778 802 822 848 779 843 883 914 938 971 755 789 810 825 837 853 $70,000 $80,000 740 797 833 859 880 908 831 899 942 975 1000 1036 810 846 868 884 897 914 $80,000 $90,000 786 846 884 911 933 963 880 952 997 1031 1058 1096 860 899 922 939 953 972 $90,000 $100,000 828 892 931 960 984 1015 925 1001 1048 1084 1113 1152 908 948 973 991 1006 1025 $100,000 $120,000 884 952 995 1026 1051 1084 985 1066 1117 1154 1185 1226 971 1014 1041 1060 1076 1097 $120,000 $140,000 958 1031 1077 1111 1138 1174 1063 1150 1205 1245 1278 1323 1054 1100 1129 1150 1167 1190 $140,000 $160,000 1026 1105 1154 1190 1219 1258 1136 1228 1286 1330 1365 1412 1130 1181 1211 1234 1252 1276 $160,000 $180,000 1088 1172 1224 1263 1293 1335 1203 1300 1361 1407 1444 1494 1201 1254 1287 1311 1330 1356 $180,000 $200,000 1148 1236 1291 1331 1364 1408 1265 1368 1432 1480 1519 1571 1268 1324 1359 1384 1404 1431 $200,000 $225,000 1209 1302 1360 1403 1437 1483 1331 1438 1506 1556 1597 1652 1338 1397 1434 1460 1482 1510 $225,000 $250,000 1275 1373 1435 1480 1516 1564 1400 1513 1584 1637 1680 1737 1412 1475 1514 1542 1564 1594 $250,000 $275,000 1337 1440 1504 1552 1589 1640 1466 1584 1658 1713 1758 1818 1483 1549 1589 1619 1642 1674 $275,000 $300,000 1397 1504 1571 1621 1660 1713 1528 1651 1728 1786 1832 1895 1550 1619 1661 1692 1717 1750 $300,000 or more 1747 1881 1965 2027 2076 2143 1895 2046 2141 2212 2269 2346 1949 2035 2088 2127 2158 2199 Income New Mexico 1 5.1250% New York 2 4.0000% North Carolina 2 4.7500% $0 $20,000 326 346 358 367 374 384 192 202 208 213 216 221 284 318 339 356 369 388 $20,000 $30,000 487 517 535 549 559 573 290 305 314 321 327 334 411 458 489 513 532 558 $30,000 $40,000 571 605 627 643 655 672 341 359 370 378 384 393 475 530 565 592 614 644 $40,000 $50,000 642 681 706 723 737 756 385 405 417 426 434 443 530 590 630 660 684 717 $50,000 $60,000 706 749 776 795 811 831 424 446 460 470 478 489 578 644 687 719 746 782 $60,000 $70,000 763 810 839 860 876 899 460 483 498 509 518 529 621 692 738 772 801 840 $70,000 $80,000 816 866 897 919 937 961 492 518 533 545 554 567 661 735 784 821 851 892 $80,000 $90,000 865 918 951 975 993 1019 522 550 566 579 588 602 697 776 827 866 898 941 $90,000 $100,000 911 967 1001 1026 1046 1073 551 580 597 610 621 634 731 814 867 908 941 987 $100,000 $120,000 972 1032 1068 1095 1116 1145 589 619 638 652 663 678 776 864 920 963 998 1047 $120,000 $140,000 1052 1116 1156 1184 1207 1238 638 671 692 707 719 735 835 928 989 1035 1073 1124 $140,000 $160,000 1125 1194 1236 1267 1292 1325 684 719 741 757 770 788 888 988 1052 1101 1141 1196 $160,000 $180,000 1193 1266 1311 1344 1370 1405 726 764 787 804 818 836 938 1042 1110 1162 1204 1262 $180,000 $200,000 1257 1334 1381 1416 1443 1480 766 806 830 848 863 882 984 1094 1165 1219 1263 1323 $200,000 $225,000 1323 1404 1454 1491 1519 1558 808 850 876 894 910 930 1032 1147 1221 1278 1324 1387 $225,000 $250,000 1395 1480 1532 1571 1601 1642 853 897 924 944 960 981 1083 1203 1281 1340 1389 1455 $250,000 $275,000 1461 1551 1606 1646 1678 1721 895 941 969 990 1007 1029 1131 1257 1338 1399 1449 1519 $275,000 $300,000 1525 1619 1676 1718 1751 1796 935 983 1013 1035 1052 1075 1177 1307 1391 1455 1507 1579 $300,000 or more 1901 2018 2089 2141 2183 2239 1172 1232 1269 1297 1318 1348 1444 1602 1704 1782 1845 1932 Income North Dakota 1 5.0000% Ohio 1 5.7500% Oklahoma 1 4.5000% $0 $20,000 239 260 273 283 292 303 304 323 336 345 352 362 305 350 380 403 422 448 $20,000 $30,000 355 385 405 420 432 448 455 484 502 516 526 541 435 497 539 571 597 634 $30,000 $40,000 415 450 473 490 504 523 533 568 589 604 617 634 500 571 618 655 685 727 $40,000 $50,000 467 506 531 551 566 587 601 639 663 681 695 714 556 634 686 726 760 806 $50,000 $60,000 513 556 583 604 621 644 661 703 729 749 764 785 605 689 745 789 825 875 $60,000 $70,000 554 600 630 652 671 696 715 760 789 810 826 849 648 738 798 845 883 937 $70,000 $80,000 592 641 673 697 716 743 765 813 844 866 884 908 688 783 847 896 936 993 $80,000 $90,000 627 679 712 738 758 786 811 862 895 918 937 962 725 824 891 943 985 1045 $90,000 $100,000 660 715 750 776 798 827 854 909 942 967 987 1014 759 863 933 986 1031 1093 $100,000 $120,000 704 762 799 827 850 881 912 970 1006 1032 1053 1082 804 914 987 1044 1091 1156 $120,000 $140,000 761 823 863 894 918 952 987 1049 1088 1117 1140 1171 863 980 1058 1119 1169 1238 $140,000 $160,000 814 880 923 955 981 1017 1056 1123 1165 1195 1220 1253 917 1040 1123 1187 1240 1314 $160,000 $180,000 863 933 978 1012 1039 1077 1120 1191 1235 1268 1294 1329 966 1096 1183 1250 1305 1383 $180,000 $200,000 909 982 1029 1065 1094 1134 1181 1256 1302 1336 1363 1400 1013 1148 1239 1309 1367 1447 $200,000 $225,000 957 1034 1083 1120 1151 1193 1244 1322 1371 1407 1436 1474 1061 1202 1296 1370 1430 1514 $225,000 $250,000 1008 1089 1141 1180 1212 1255 1311 1394 1445 1483 1513 1554 1112 1259 1358 1434 1497 1585 $250,000 $275,000 1057 1140 1195 1236 1269 1315 1374 1461 1515 1555 1586 1629 1160 1313 1416 1495 1560 1652 $275,000 $300,000 1103 1190 1246 1289 1323 1371 1435 1525 1581 1623 1656 1700 1206 1364 1470 1552 1620 1715 $300,000 or more 1374 1480 1549 1602 1644 1703 1792 1904 1974 2025 2066 2121 1471 1661 1788 1886 1968 2081 Income Pennsylvania 1 6.0000% Rhode Island 4 7.0000% South Carolina 2 6.0000% $0 $20,000 271 291 303 312 319 329 333 359 374 386 395 408 313 337 352 364 373 385 $20,000 $30,000 399 427 444 457 468 482 487 523 546 563 577 595 461 497 519 536 549 567 $30,000 $40,000 464 496 517 532 544 561 565 607 634 653 669 690 537 579 605 624 639 660 $40,000 $50,000 520 556 579 595 609 628 632 679 708 730 748 772 601 649 678 699 717 740 $50,000 $60,000 569 608 633 652 667 687 691 742 774 798 817 843 659 711 743 766 785 811 $60,000 $70,000 613 656 682 702 718 740 744 799 834 859 880 908 711 766 801 826 847 874 $70,000 $80,000 654 699 727 749 766 789 792 851 888 915 937 967 758 817 854 881 903 932 $80,000 $90,000 692 739 769 791 809 834 837 899 938 967 990 1021 802 865 904 932 955 986 $90,000 $100,000 727 777 808 832 850 876 879 944 985 1015 1039 1072 843 909 950 980 1004 1037 $100,000 $120,000 774 827 860 885 905 932 934 1003 1047 1079 1105 1139 898 968 1011 1043 1069 1104 $120,000 $140,000 834 891 927 954 975 1004 1006 1080 1127 1161 1189 1227 968 1044 1091 1125 1153 1190 $140,000 $160,000 890 951 989 1017 1040 1071 1072 1151 1201 1238 1267 1307 1034 1114 1164 1201 1231 1271 $160,000 $180,000 942 1006 1046 1076 1100 1133 1133 1217 1269 1308 1339 1381 1094 1179 1232 1271 1302 1344 $180,000 $200,000 990 1057 1100 1131 1156 1191 1190 1278 1333 1374 1406 1451 1150 1240 1295 1336 1369 1414 $200,000 $225,000 1041 1111 1155 1188 1215 1251 1249 1341 1399 1442 1476 1523 1209 1303 1361 1405 1439 1486 $225,000 $250,000 1094 1168 1215 1249 1277 1315 1312 1409 1470 1515 1551 1600 1271 1370 1432 1477 1514 1563 $250,000 $275,000 1145 1222 1270 1306 1335 1375 1372 1473 1536 1583 1621 1672 1330 1434 1498 1546 1583 1635 $275,000 $300,000 1193 1273 1323 1361 1391 1432 1428 1533 1599 1648 1687 1740 1386 1494 1561 1611 1650 1704 $300,000 or more 1474 1573 1634 1680 1717 1768 1758 1887 1968 2028 2076 2141 1715 1848 1931 1992 2041 2107 A-16

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Income Family Size Family Size Family Size At least But less than 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 South Dakota 1 4.5000% Tennessee 2 7.0000% Texas 1 6.2500% $0 $20,000 344 395 429 454 475 504 442 495 529 555 577 606 339 368 387 400 411 426 $20,000 $30,000 493 566 613 649 679 721 641 717 766 803 834 876 502 546 574 594 610 633 $30,000 $40,000 569 652 706 748 782 830 742 829 886 930 965 1013 587 638 670 694 713 739 $40,000 $50,000 632 724 785 831 869 922 828 925 989 1037 1076 1130 659 717 753 780 801 830 $50,000 $60,000 688 788 854 904 946 1003 904 1010 1079 1131 1174 1232 724 787 826 856 879 911 $60,000 $70,000 738 845 916 970 1014 1075 972 1086 1160 1216 1261 1324 781 849 892 924 949 984 $70,000 $80,000 784 897 972 1029 1076 1141 1034 1155 1233 1293 1341 1408 835 907 953 987 1014 1051 $80,000 $90,000 826 945 1024 1084 1134 1202 1092 1219 1302 1364 1416 1486 884 961 1009 1045 1074 1113 $90,000 $100,000 865 990 1073 1136 1187 1259 1146 1279 1366 1431 1485 1558 930 1011 1062 1099 1130 1171 $100,000 $120,000 917 1049 1137 1203 1258 1334 1217 1358 1450 1520 1576 1654 991 1077 1132 1172 1204 1248 $120,000 $140,000 984 1126 1219 1291 1349 1431 1309 1461 1559 1634 1694 1778 1071 1164 1222 1266 1300 1348 $140,000 $160,000 1046 1196 1295 1371 1433 1520 1395 1555 1660 1739 1804 1893 1144 1244 1306 1353 1390 1440 $160,000 $180,000 1102 1260 1365 1445 1510 1601 1473 1642 1752 1836 1904 1998 1212 1317 1383 1433 1472 1526 $180,000 $200,000 1155 1321 1430 1514 1582 1677 1546 1724 1839 1926 1998 2096 1276 1387 1456 1508 1550 1606 $200,000 $225,000 1210 1383 1497 1585 1657 1756 1622 1808 1929 2021 2095 2198 1342 1459 1532 1586 1630 1689 $225,000 $250,000 1268 1449 1569 1661 1736 1840 1703 1898 2025 2121 2199 2307 1413 1536 1613 1670 1716 1778 $250,000 $275,000 1322 1512 1636 1732 1810 1919 1780 1983 2115 2215 2296 2409 1479 1608 1689 1749 1797 1862 $275,000 $300,000 1374 1571 1700 1799 1880 1993 1852 2063 2200 2304 2389 2506 1543 1677 1761 1824 1874 1942 $300,000 or more 1675 1914 2071 2191 2290 2426 2275 2532 2699 2826 2929 3071 1916 2082 2187 2265 2327 2411 Income Utah 2 4.8130% Vermont 1 6.0000% Virginia 2 4.3000% $0 $20,000 308 344 367 385 400 419 216 221 224 227 228 231 229 254 270 282 292 306 $20,000 $30,000 448 500 533 559 580 608 314 322 326 330 332 336 336 372 395 413 427 447 $30,000 $40,000 519 579 618 647 671 704 364 373 378 382 385 389 391 433 460 480 497 519 $40,000 $50,000 580 646 690 722 749 786 407 417 423 427 430 435 438 484 514 537 556 581 $50,000 $60,000 634 706 753 789 818 858 445 456 462 466 470 475 479 530 563 588 608 636 $60,000 $70,000 682 760 810 848 879 922 479 490 497 502 506 511 517 571 607 633 655 685 $70,000 $80,000 726 808 862 903 936 981 509 522 529 534 538 544 551 609 647 675 698 730 $80,000 $90,000 766 854 910 953 988 1036 538 551 559 564 569 574 583 644 684 714 738 771 $90,000 $100,000 805 896 955 1000 1036 1087 565 578 586 592 597 603 612 677 718 750 775 810 $100,000 $120,000 855 952 1015 1062 1101 1154 600 615 623 629 634 641 652 720 764 798 825 862 $120,000 $140,000 920 1024 1092 1143 1184 1241 646 661 671 677 682 689 703 776 824 860 889 928 $140,000 $160,000 980 1091 1163 1217 1261 1322 688 705 714 722 727 734 750 828 879 917 948 990 $160,000 $180,000 1036 1152 1228 1285 1332 1396 727 744 755 762 768 776 794 876 929 970 1002 1047 $180,000 $200,000 1088 1210 1289 1349 1398 1465 763 782 793 800 806 815 835 921 977 1019 1053 1100 $200,000 $225,000 1142 1270 1353 1415 1467 1537 801 820 832 840 846 855 877 968 1027 1071 1107 1156 $225,000 $250,000 1199 1333 1420 1486 1540 1614 841 861 873 882 889 898 923 1018 1079 1126 1163 1215 $250,000 $275,000 1253 1393 1484 1553 1608 1685 879 900 913 922 929 938 966 1065 1129 1177 1217 1270 $275,000 $300,000 1305 1450 1544 1616 1674 1754 915 937 950 959 967 976 1006 1110 1176 1226 1267 1323 $300,000 or more 1605 1782 1897 1984 2055 2153 1125 1152 1168 1179 1188 1200 1245 1372 1453 1515 1565 1633 Income Washington 1 6.5000% West Virginia 1 6.0000% Wisconsin 1 5.0000% $0 $20,000 347 373 390 402 412 426 319 347 365 378 389 403 273 294 307 316 324 334 $20,000 $30,000 521 561 586 604 619 639 485 527 554 574 590 612 408 439 458 472 483 498 $30,000 $40,000 612 658 687 709 727 750 571 622 654 677 696 722 477 513 536 552 566 584 $40,000 $50,000 690 742 775 799 819 845 646 703 739 766 787 816 537 578 603 621 636 656 $50,000 $60,000 759 817 853 880 901 930 713 776 815 845 869 901 590 635 662 683 699 721 $60,000 $70,000 822 884 923 952 975 1007 773 842 885 916 942 977 638 686 716 738 756 780 $70,000 $80,000 880 946 988 1019 1044 1077 829 902 948 982 1010 1047 682 733 765 789 808 833 $80,000 $90,000 933 1004 1048 1081 1107 1143 881 959 1008 1044 1073 1113 723 777 811 836 856 883 $90,000 $100,000 984 1058 1104 1139 1167 1204 929 1012 1063 1102 1133 1174 761 818 854 880 901 930 $100,000 $120,000 1050 1130 1179 1216 1246 1286 994 1082 1138 1179 1212 1256 812 873 911 939 962 992 $120,000 $140,000 1138 1223 1277 1317 1349 1392 1079 1174 1234 1279 1315 1363 877 944 985 1015 1040 1073 $140,000 $160,000 1218 1310 1368 1410 1444 1491 1157 1260 1324 1372 1411 1463 939 1010 1054 1086 1112 1147 $160,000 $180,000 1293 1390 1451 1496 1533 1582 1230 1339 1407 1458 1499 1555 995 1070 1117 1151 1179 1216 $180,000 $200,000 1363 1466 1530 1578 1616 1668 1298 1413 1486 1540 1583 1641 1048 1127 1176 1213 1242 1281 $200,000 $225,000 1437 1544 1612 1662 1702 1757 1370 1491 1568 1624 1670 1732 1103 1187 1238 1277 1307 1348 $225,000 $250,000 1515 1628 1700 1753 1795 1852 1446 1575 1655 1715 1763 1829 1162 1250 1305 1345 1377 1421 $250,000 $275,000 1589 1708 1782 1838 1882 1942 1518 1653 1738 1801 1852 1920 1218 1310 1367 1409 1443 1488 $275,000 $300,000 1659 1783 1861 1919 1965 2028 1587 1728 1817 1883 1936 2008 1271 1367 1426 1470 1506 1553 $300,000 or more 2075 2230 2327 2399 2457 2535 1996 2173 2285 2368 2435 2525 1582 1702 1776 1831 1875 1934 Income Wyoming 1 4.0000% Note: Residents of Alaska do not have a state sales tax, but should follow the instructions on the next page to determine their local sales tax amount. 1. Use the Ratio Method to determine your local sales tax deduction. Your state sales tax rate is provided next to the state name. 2. Follow the instructions on the next page to determine your local sales tax deduction. 3. The California table includes the 1.25% uniform local sales tax rate in addition to the 6.00% state sales tax rate for a total of 7.25%. Some California localities impose a larger local sales tax. Taxpayers who reside in those jurisdictions should use the Ratio Method to determine their local sales tax deduction. The denominator of the correct ratio is 7.25%, and the numerator is the total sales tax rate minus 7.25%. 4. This state does not have a local general sales tax, so the amount in the state table is the only amount to be deducted. 5. The Nevada table includes the 2.25% uniform local sales tax rate in addition to the 4.60% state sales tax rate for a total of 6.85%. Some Nevada localities impose a larger local sales tax. Taxpayers who reside in those jurisdictions should use the Ratio Method to determine their local sales tax deduction. The denominator of the correct ratio is 6.85%, and the numerator is the total sales tax rate minus 6.85%. 6. The 4.0% rate for Hawaii is actually an excise tax but is treated as a sales tax for purpose of this deduction. $0 $20,000 207 221 230 237 242 249 $20,000 $30,000 311 332 345 355 363 373 $30,000 $40,000 364 389 405 416 425 438 $40,000 $50,000 410 438 456 469 479 493 $50,000 $60,000 452 482 502 516 527 542 $60,000 $70,000 489 522 543 558 570 587 $70,000 $80,000 523 558 580 597 610 627 $80,000 $90,000 554 592 616 633 647 665 $90,000 $100,000 584 624 649 667 681 701 $100,000 $120,000 624 666 692 712 727 748 $120,000 $140,000 675 721 749 770 787 810 $140,000 $160,000 723 772 802 825 843 867 $160,000 $180,000 767 819 851 875 894 919 $180,000 $200,000 808 863 897 922 942 969 $200,000 $225,000 852 909 945 971 992 1021 $225,000 $250,000 898 958 996 1024 1046 1076 $250,000 $275,000 941 1005 1044 1073 1096 1128 $275,000 $300,000 983 1049 1090 1120 1145 1178 $300,000 or more 1228 1310 1361 1399 1429 1470 A-17

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Which Optional Local Sales Tax Table Should I Use? IF you live in the state of… AND you live in… THEN use Local Table… Alaska Juneau, Kenai, Ketchikan, Kodiak, Sitka, Wasilla or any locality that imposes a local sales tax C Arizona Chandler, Gilbert, Glendale, Mesa, Peoria, Phoenix, Scottsdale, Tempe, Tucson, Yuma or any other locality that imposes a local sales tax B Arkansas Any locality that imposes a local sales tax C Colorado Adams County, Arapahoe County, Aurora, Boulder County, Centennial, Colorado Springs, Denver City, El Paso County, Larimer County, Pueblo City, Pueblo County or any other locality that imposes a local sales tax A Arvada, Boulder, Fort Collins, Greeley, Jefferson County, Lakewood, Longmont, Thornton or Westminster. B Georgia Any locality that imposes a local sales tax A Illinois Arlington Heights, Bloomington, Champaign, Chicago, Cicero, Decatur, Evanston, Elgin, Joliet, Palatine, Peoria, Schaumburg, Skokie, Springfield, Waukegan or any other locality that imposes a local sales tax A Aurora B Louisiana East Baton Rouge Parish B Ascension Parish, Bossier Parish, Caddo Parish, Calcasieu Parish, Iberia Parish, Jefferson Parish, Lafayette Parish, Lafourche Parish, Livingston Parish, Orleans Parish, Ouachita Parish, Rapides Parish, St. Bernard Parish, St. Landry Parish, St Tammany Parish, Tangipahoa Parish, Terrebonne Parish or any other locality that imposes a local sales tax C Mississippi City of Jackson only A City of Tupelo only C Missouri Any locality that imposes a local sales tax B New York Counties: Chautauqua, Chenango, Columbia, Delaware, Greene, Hamilton, Tioga Cities: New York, Norwich (Chenango County) A Counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chemung, Clinton, Cortland, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Nassau, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Rockland, St. Lawrence, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, Steuben, Suffolk, Sullivan, Tompkins, Ulster, Warren, Washington, Wayne, Westchester, Wyoming or Yates Cities: Auburn, Glens Falls, Gloversville, Ithaca, Johnstown, Mount Vernon, New Rochelle, Olean, Oneida (Madison County), Oswego, Rome, Salamanca, Saratoga Springs, Utica, White Plains, Yonkers B Any other locality that imposes a local sales tax D* North Carolina Any locality that imposes a local sales tax A South Carolina Aiken County, Anderson County, Greenwood County, Horry County, Lexington County, Myrtle Beach, Newberry County, Orangeburg County, Spartanburg County and York County A Allendale County, Bamberg County, Barnwell County, Calhoun County, Charleston County, Cherokee County, Chester County, Chesterfield County, Colleton County, Darlington County, Dillon County, Florence County, Hampton County, Jasper County, Kershaw County, Lancaster County, Lee County, Marion County, Marlboro County, McCormick County, Saluda County, Sumter County and Williamsburg County B Abbeville County, Beaufort County, Berkeley County, Clarendon County, Dorchester County, Edgefield County, Fairfield County, Laurens County, Pickens County, Richland County, Union County or any other locality that imposes a local sales tax C Tennessee Any locality that imposes a local sales tax B Utah Any locality that imposes a local sales tax A Virginia Any locality that imposes a local sales tax B * Note: Local Table D is just 25% of the NY State table. 2020 Optional Local Sales Tax Tables Income Family Size Family Size Family Size Family Size At least But less than 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 1 2 3 4 5 Over 5 Local Table A Local Table B Local Table C Local Table D $0 $20,000 48 52 54 56 57 59 60 68 73 77 80 84 74 85 92 97 102 108 48 51 52 53 54 55 20,000 30,000 72 77 80 83 85 87 86 97 104 110 114 120 105 120 130 137 144 152 73 76 79 80 82 84 30,000 40,000 84 90 94 96 99 102 99 112 120 126 131 138 121 138 149 157 164 174 85 90 93 95 96 98 40,000 50,000 94 101 105 108 111 114 110 124 133 140 146 154 134 153 165 174 182 193 96 101 104 107 109 111 50,000 60,000 103 110 115 119 121 125 120 135 145 153 159 167 145 166 179 189 197 209 106 112 115 118 120 122 60,000 70,000 111 119 124 128 131 135 129 145 156 164 170 179 156 177 191 202 211 223 115 121 125 127 130 132 70,000 80,000 119 127 133 137 140 144 137 154 165 174 181 190 165 188 203 214 224 237 123 130 133 136 139 142 80,000 90,000 126 135 140 145 148 153 144 162 174 183 191 201 174 197 213 225 235 249 131 138 142 145 147 151 90,000 100,000 132 142 148 152 156 161 151 170 183 192 200 210 182 206 223 235 246 260 138 145 149 153 155 159 100,000 120,000 141 151 157 162 166 171 161 180 194 203 212 223 192 218 236 249 260 275 147 155 160 163 166 170 120,000 140,000 152 163 170 175 179 185 172 194 208 218 227 239 206 234 252 266 278 294 160 168 173 177 180 184 140,000 160,000 163 174 182 187 191 197 183 206 221 232 241 254 218 248 267 282 295 312 171 180 185 189 193 197 160,000 180,000 173 185 192 198 203 209 193 217 233 244 254 268 230 261 281 297 310 328 182 191 197 201 205 209 180,000 200,000 182 194 202 208 213 220 203 228 244 256 266 280 240 273 294 311 324 343 192 202 208 212 216 221 200,000 225,000 191 205 213 219 224 231 212 238 255 268 279 294 251 285 308 325 339 358 202 213 219 224 228 233 225,000 250,000 201 215 224 231 236 243 223 250 268 281 292 308 263 299 322 340 355 375 213 224 231 236 240 245 250,000 275,000 211 226 235 242 247 255 233 261 279 294 305 321 274 311 335 354 369 390 224 235 242 248 252 257 275,000 300,000 220 235 245 252 258 266 242 271 290 305 317 333 285 323 348 367 383 405 234 246 253 259 263 269 300,000 or more 273 292 304 313 320 329 296 331 354 372 387 407 345 391 421 445 464 490 293 308 317 324 330 337 A-18

(p526)Publication 526 (2020), Charitable Contributions#

(p526)(page-1)Page 1#

Contents What's New . . . . . . . . . . . . . . . . . . 1 Reminders . . . . . . . . . . . . . . . . . . . 1 Introduction . . . . . . . . . . . . . . . . . . 2 Organizations That Qualify To Receive Deductible Contributions . . . . . . . . . . . . . . 2 Contributions You Can Deduct . . . . . . 3 Contributions You Can't Deduct . . . . . . 7 Contributions of Property . . . . . . . . . . 8 When To Deduct . . . . . . . . . . . . . . 14 Limits on Deductions . . . . . . . . . . . 14 Substantiation Requirements . . . . . . 20 How To Report . . . . . . . . . . . . . . . 22 How To Get Tax Help . . . . . . . . . . . 23 Index . . . . . . . . . . . . . . . . . . . . . 26 Future Developments For the latest information about developments related to Pub. 526 (such as legislation enacted after we release it), go to IRS.gov/Pub526. What's New Cash contributions if you don’t itemize de- ductions. If you don’t itemize your deductions on Schedule A (Form 1040), you may qualify to take a deduction for contributions of up to $300. See Cash contributions for individuals who do not itemize deductions, later. Temporary suspension of limits for cash contributions. Certain cash contributions you made are not subject to the 60% limit for cash contributions. See Qualified cash contributions for 2020, later. Temporary increase in limits on contribu- tions of food inventory. The limit on contribu- tions of food inventory has increased from 15% to 25% for business taxpayers. See Food In- ventory, later. Reminders Disaster relief. You can deduct contributions for flood relief, hurricane relief, or other disaster relief to a qualified organization (defined under Organizations That Qualify To Receive Deducti- ble Contributions). However, you can't deduct contributions earmarked for relief of a particular individual or family. See Pub. 976, Disaster Re- lief, for more information. Pub. 3833, Disaster Relief, Providing Assis- tance Through Charitable Organizations, has more information about disaster relief, including Department of the Treasury Internal Revenue Service Publication 526 Cat. No. 15050A Charitable Contributions For use in preparing 2020 Returns Get forms and other information faster and easier at: • IRS.gov (English) • IRS.gov/Spanish (Español) • IRS.gov/Chinese (中文) • IRS.gov/Korean (한국어) • IRS.gov/Russian (Pусский) • IRS.gov/Vietnamese (Tiếng Việt) Mar 03, 2021

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how to establish a new charitable organization. You can also find more information on IRS.gov. Enter “disaster relief” in the search box. Qualified disaster area. A 2020 qualified dis- aster area is any area in which a major disaster was declared before February 26, 2021, by the President under section 401 of the Stafford Act and that occurred after December 27, 2019, and before December 28, 2020. However, a qualified disaster area doesn’t include any area declared a disaster only because of the Coro- navirus Disease (COVID-19). See Temporary suspension of limits, later, for additional infor- mation about 2018 and 2019 disasters. Temporary suspension of limits. Certain cash contributions you made for relief efforts for 2018 and 2019 disasters are not subject to the 60% limit for cash contributions. See Qualified contributions for relief efforts for 2018 and 2019 disasters, later. Virginia Beach Strong Act. A special rule ap- plies to cash contributions made on or after May 31, 2019, and before June 1, 2021, for the relief of the families of dead or wounded victims of the mass shooting in Virginia Beach, Virginia, on May 31, 2019. See Contributions You Can Deduct, later. Reduced deductibility of state and local tax credits. If you make a payment or transfer property to or for the use of a qualified organiza- tion and you receive or expect to receive a state or local tax credit or a state or local tax deduc- tion in return, your charitable contribution de- duction may be reduced. See State or local tax credit, later. Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Pho- tographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 800-THE-LOST (800-843-5678) or visiting www.missingkids.com if you recognize a child. Introduction This publication explains how individuals claim a deduction for charitable contributions. It dis- cusses the types of organizations to which you can make deductible charitable contributions and the types of contributions you can deduct. It also discusses how much you can deduct, what records you must keep, and how to report chari- table contributions. A charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or ex- pecting to get, anything of equal value. Qualified organizations. Qualified organiza- tions include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to chil- dren or animals. You will find descriptions of these organizations under Organizations That Qualify To Receive Deductible Contributions. Schedule A (Form 1040) required. Gener- ally, to deduct a charitable contribution, you must itemize deductions on Schedule A (Form 1040). The amount of your deduction may be limited if certain rules and limits explained in this publication apply to you. Exception: You may be eligible to deduct a cash contribution even if you don’t itemize de- ductions on Schedule A (Form 1040). See Cash contributions for individuals who do not itemize deductions, next. Cash contributions for individuals who do not itemize deductions. For tax years begin- ning in 2020, cash contributions up to $300 can be claimed on Form 1040 or 1040-SR, line 10b. Enter the total amount of your contribution on line 10b. Don’t enter more than: • $300 if single, head of household, or quali- fying widow(er); • $300 if married filing jointly; or • $150 if married filing separately. In order to claim the contribution, you must meet the following requirements. 1. You cannot itemize deductions on Sched- ule A (Form 1040); and 2. The charitable contribution must be: a. Paid in cash or by check. b. Be paid to an organization described later under First category of qualified organizations (50% limit organiza- tions) (other than certain private foun- dations described in section 509(a)(3) or for the establishment of a new, or maintenance of an existing, donor ad- vised fund as described in section 4966(d)(2)). Contributions of noncash property and contribu- tions carried forward from prior years don’t qualify for this deduction. For records you must keep, see Substantia- tion Requirements, later. Note. You cannot claim the deduction on Form 1040 or 1040-SR, line 10b, and file Schedule A (Form 1040). You may benefit from itemizing deductions if your itemized deduc- tions are greater than the standard deduction. If you have a choice, you should generally use the method that gives you the lower tax. Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions. You can send us comments through IRS.gov/FormComments. Or, you can write to: Internal Revenue Service, Tax Forms and Pub- lications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instruc- tions, and publications. Do not send tax ques- tions, tax returns, or payments to the above ad- dress. Getting answers to you tax questions. If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS In- teractive Tax Assistant page at IRS.gov/ Help/ITA where you can find topics by using the search feature or viewing the categories listed. Getting tax forms, instructions, and pub- lications. Visit IRS.gov/Forms to download current and prior-year forms, instructions, and publications. Ordering tax forms, instructions, and publications. Go to IRS.gov/OrderForms to order current forms, instructions, and publica- tions; call 800-829-3676 to order prior-year forms and instructions. The IRS will process your order for forms and publications as soon as possible. Do not resubmit requests you’ve already sent us. You can get forms and publica- tions faster online. Useful Items You may want to see: Publication 561 Determining the Value of Donated Property 976 Disaster Relief Forms (and Instructions) Schedule A (Form 1040) Itemized Deductions 8283 Noncash Charitable Contributions See How To Get Tax Help near the end of this publication for information about getting these publications and forms. Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if you make them to a qualified organization. How to check whether an organization can receive deductible charitable contributions. You can ask any organization whether it is a qualified organization, and most will be able to tell you. You can also check by going to IRS.gov/TEOS. This online tool will enable you to search for qualified organizations. Types of Qualified Organizations Generally, only the following types of organiza- tions can be qualified organizations. 1. 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 pos- session of the United States (including Pu- erto Rico). It must, however, be organized and operated only for charitable, religious, scientific, literary, or educational purpo- ses, or for the prevention of cruelty to chil- dren or animals. Certain organizations that foster national or international amateur sports competition also qualify. 2. War veterans' organizations, including posts, auxiliaries, trusts, or foundations, 561 976 Schedule A (Form 1040) 8283 Page 2 Publication 526 (2020)

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organized in the United States or any of its possessions (including Puerto Rico). 3. Domestic fraternal societies, orders, and associations operating under the lodge system. (Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scien- tific, literary, or educational purposes, or for the prevention of cruelty to children or animals.) 4. Certain nonprofit cemetery companies or corporations. (Your contribution to this type of organization isn't deductible if it can be used for the care of a specific lot or mausoleum crypt.) 5. The United States or any state, the District of Columbia, a U.S. possession (including Puerto Rico), a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that perform substantial government func- tions. (Your contribution to this type of or- ganization is deductible only if it is to be used solely for public purposes.) Example 1. You contribute cash to your city's police department to be used as a reward for information about a crime. The city police department is a qualified organization, and your contribution is for a public purpose. You can deduct your con- tribution. Example 2. You make a voluntary contribution to the social security trust fund, not earmarked for a specific ac- count. Because the trust fund is part of the U.S. Government, you contributed to a qualified organization. You can deduct your contribution. Examples. The following list gives some ex- amples of qualified organizations. • Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. • Most nonprofit charitable organizations such as the American Red Cross and the United Way. • Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and muse- ums. This also includes nonprofit daycare centers that provide childcare to the gen- eral public if substantially all the childcare is provided to enable parents and guardi- ans to be gainfully employed. However, if your contribution is a substitute for tuition or other enrollment fee, it isn't deductible as a charitable contribution, as explained later under Contributions You Can't De- duct. • Nonprofit hospitals and medical research organizations. • Utility company emergency energy pro- grams, if the utility company is an agent for a charitable organization that assists indi- viduals with emergency energy needs. • Nonprofit volunteer fire companies. • Nonprofit organizations that develop and maintain public parks and recreation facili- ties. • Civil defense organizations. Canadian charities. You may be able to de- duct contributions to certain Canadian charita- ble organizations covered under an income tax treaty with Canada. To deduct your contribution to a Canadian charity, you must generally have income from sources in Canada. See Pub. 597, Information on the United States–Canada In- come Tax Treaty, for information on how to fig- ure your deduction. Mexican charities. Under the U.S.–Mexico in- come tax treaty, a contribution to a Mexican charitable organization may be deductible, but only if and to the extent the contribution would have been treated as a charitable contribution to a public charity created or organized under U.S. law. To deduct your contribution to a Mexi- can charity, you must have income from sour- ces in Mexico. The limits described in Limits on Deductions, later, apply and are figured using your income from Mexican sources. Israeli charities. Under the U.S.–Israel in- come tax treaty, a contribution to an Israeli charitable organization is deductible if and to the extent the contribution would have been treated as a charitable contribution if the organi- zation had been created or organized under U.S. law. To deduct your contribution to an Isra- eli charity, you must have income from sources in Israel. The limits described in Limits on De- ductions, later, apply. The deduction is also limited to 25% of your adjusted gross income from Israeli sources. Contributions You Can Deduct Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the quali- fied organization or in a similar legal arrange- ment. The contributions must be made to a quali- fied organization and not set aside for use by a specific person. Virginia Beach Strong Act. If you made a contribution for the relief of the families of the dead or wounded victims of the mass shooting in Virginia Beach, Virginia, on May 31, 2019, you may be able to deduct that contribution. In order to deduct the contribution, it must have been made: • In cash or check; • Between May 31, 2019, and June 1, 2021; and • For the relief of the families of dead or wounded victims of the mass shooting in Virginia Beach, Virginia, on May 31, 2019. If you made your contribution by phone, keep your phone bill showing the name of who you made the dona- tion to, the date you made the contribution, and the amount of the contribution. See Substantia- tion Requirements, later. If you give property to a qualified organiza- tion, you can generally deduct the fair market value (FMV) of the property at the time of the TIP Examples of Charitable Contributions—A Quick Check Use the following lists for a quick check of whether you can deduct a contribution. See the rest of this publication for more information and additional rules and limits that may apply. Deductible As Charitable Contributions Not Deductible As Charitable Contributions Money or property you give to: 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. • 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 • 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 Table 1. Publication 526 (2020) Page 3

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contribution. See Contributions of Property, later. Your deduction for charitable contributions generally can't be more than 60% of your adjus- ted gross income (AGI), but in some cases 20%, 30%, or 50% limits may apply. The 60% limit is suspended for certain cash contributions. See Qualified cash contributions for 2020 and Qualified contributions for relief efforts for 2018 and 2019 disasters, later. Table 1 gives examples of contributions you can and can't deduct. 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 re- ceive. Also see Contributions From Which You Benefit under Contributions You Can't Deduct, later. If you pay more than fair market value to a qualified organization for goods or services, the excess may be a charitable contribution. For the excess amount to qualify, you must pay it with the intent to make a charitable contribution. Example 1. You pay $65 for a ticket to a dinner dance at a church. Your entire $65 pay- ment goes to the church. The ticket to the din- ner dance has a fair market value of $25. When you buy your ticket, you know its value is less than your payment. To figure the amount of your charitable contribution, subtract the value of the benefit you receive ($25) from your total payment ($65). You can deduct $40 as a chari- table contribution to the church. Example 2. At a fundraising auction con- ducted by a charity, you pay $600 for a week's stay at a beach house. The amount you pay is no more than the fair rental value. You haven't made a deductible charitable contribution. Charity benefit events. 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 re- ceive. If there is an established charge for the event, that charge is the value of your benefit. If there is no established charge, the reasonable value of the right to attend the event is the value of your benefit. Whether you use the tickets or other privileges has no effect on the amount you can deduct. However, if you return the ticket to the qualified organization for resale, you can deduct the entire amount you paid for the ticket. TIP Even if the ticket or other evidence of payment indicates that the payment is a “contribution,” this doesn't mean you can deduct the entire amount. If the ticket shows the price of admission and the amount of the contribution, you can deduct the contribu- tion amount. Example. You pay $40 to see a special showing of a movie for the benefit of a qualified organization. Printed on the ticket is “Contribu- tion—$40.” If the regular price for the movie is $8, your contribution is $32 ($40 payment − $8 regular price). State or local tax credit. If you make a pay- ment or transfer property to or for the use of a qualified organization and receive or expect to receive a state or local tax credit in return, then the amount treated as a charitable contribution deduction is reduced by the amount of the state or local tax credit you receive or expect to re- ceive in consideration for your payment or transfer, but an exception may apply. If an ex- ception doesn’t apply, you must reduce your charitable contribution deduction even if you can’t claim the state tax credit in the year. Exception. If the state or local tax credit you receive or expect to receive doesn’t exceed 15% of your payment amount or 15% of the fair market value of the transferred property, then your charitable contribution deduction isn’t re- duced. Example 1. You make a cash contribution of $1,000 to charity X, a qualified organization. In return for your payment you receive or expect to receive a state tax credit of 70% of your $1,000 contribution. The amount of your chari- table contribution to charity X is reduced by $700 (70% of $1,000). The result is your chari- table contribution deduction to charity X can’t exceed $300 ($1,000 donation - $700 state tax credit). The reduction applies even if you can’t claim the state tax credit for that year. Your de- ductible charitable contribution to charity X is $300. Your total contributions may still be sub- ject to limitations. See Limits on Deductions, later. Example 2. You donate a painting to char- ity Y, a qualified organization. At the time of the donation, the painting has a fair market value of $100,000. In return for the painting, you receive or expect to receive a state tax credit of 10% of the fair market value of the painting. The state tax credit is $10,000 (10% of $100,000). The amount of your state tax credit does not exceed 15% of the fair market value of the painting. As a result, your charitable contribution deduction to charity Y is not reduced. Your deductible charitable contribution for your noncash contri- bution to charity Y is $100,000. However, your total contributions may still be subject to limita- tions. See Limits on Deductions, later. State or local tax deduction. If you make a payment or transfer property to a qualified or- ganization and receive or expect to receive a state or local tax deduction in return, then the amount of your charitable contribution deduc- tion to the organization may be reduced in some circumstances. If the amount of the state CAUTION ! or local tax deduction exceeds the amount of your cash contribution or the fair market value of the transferred property, then your charitable contribution deduction is reduced. However, if the amount of the state or local tax deduction doesn’t exceed the amount of your payment or the fair market value of the transferred property, then no reduction is necessary. Example 1. You make a cash contribution of $1,000 to charity Z, a qualified organization. Under state law, you are entitled to receive a state tax deduction of $1,000 in return for your payment. The amount of your charitable contri- bution deduction to charity Z isn’t reduced. Your charitable contribution deduction to charity Z is $1,000. However, your total contributions may still be subject to limitations. See Limits on De- ductions, later. Membership fees or dues. You may be able to deduct membership fees or dues you pay to a qualified organization. However, you can de- duct only the amount that is more than the value of the benefits you receive. You can't deduct dues, fees, or assess- ments paid to country clubs and other social or- ganizations. They aren't qualified organizations. Certain membership benefits can be dis- regarded. Both you and the organization can disregard the following membership benefits if you get them in return for an annual payment of $75 or less. 1. Any rights or privileges that you can use frequently while you are a member, such as: a. Free or discounted admission to the organization's facilities or events, b. Free or discounted parking, c. Preferred access to goods or serv- ices, and d. Discounts on the purchase of goods and services. But, item (1) doesn’t include rights to purchase tickets for seating at an athletic event in an athletic stadium of a college or university as a result of a contribution to such institution. 2. Admission, while you are a member, to events open only to members of the or- ganization if the organization reasonably projects that the cost per person (exclud- ing any allocated overhead) isn't more than $11.20. Token items. You don't have to reduce your contribution by the value of any benefit you re- ceive if both of the following are true. 1. You receive only a small item or other ben- efit of token value. 2. The qualified organization correctly deter- mines that the value of the item or benefit you received isn't substantial and informs you that you can deduct your payment in full. Page 4 Publication 526 (2020)

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The organization determines whether the value of an item or benefit is substantial by using Rev- enue Procedures 90-12 and 92-49 and the in- flation adjustment in Revenue Procedure 2019-44. Written statement. A qualified organization must give you a written statement if you make a payment of more than $75 that is partly a contri- bution and partly for goods or services. The statement must say you can deduct only the amount of your payment that is more than the value of the goods or services you received. It must also give you a good faith estimate of the value of those goods or services. The organization can give you the statement either when it solicits or when it receives the payment from you. Exception. An organization won't have to give you this statement if one of the following is true. 1. The organization is: a. A governmental organization descri- bed in (5) under Types of Qualified Organizations, earlier, or b. An organization formed only for reli- gious purposes, and the only benefit you receive is an intangible religious benefit (such as admission to a reli- gious ceremony) that generally isn't sold in commercial transactions out- side the donative context. 2. You receive only items whose value isn't substantial, as described under Token items, earlier. 3. You receive only membership benefits that can be disregarded, as described under Membership fees or dues, earlier. Expenses Paid for Student Living With You You may be able to deduct some expenses of having a student live with you. You can deduct qualifying expenses for a foreign or American student who: 1. Lives in your home under a written agree- ment between you and a qualified organi- zation (defined later) as part of a program of the organization to provide educational opportunities for the student, 2. Isn't your relative (defined later) or de- pendent (also defined later), and 3. Is a full-time student in the twelfth or any lower grade at a school in the United States. You can deduct up to $50 a month for each full calendar month the student lives with you. Any month when condi- tions (1) through (3) are met for 15 or more days counts as a full month. Qualified organization. For these purposes, a qualified organization can be any of the organi- zations described earlier under Types of Quali- fied Organizations, except those in (4) and (5). For example, if you are providing a home for a student as part of a state or local government program, you can't deduct your expenses as charitable contributions. But see Foster parents under Out-of-Pocket Expenses in Giving Serv- ices, later, if you provide the home as a foster parent. Relative. The term “relative” means any of the following persons. • Your child, stepchild, foster child, or a de- scendant of any of them (for example, your grandchild). A legally adopted child is con- sidered your child. • Your brother, sister, half brother, half sis- ter, stepbrother, or stepsister. • Your father, mother, grandparent, or other direct ancestor. • Your stepfather or stepmother. • A son or daughter of your brother or sister. • A brother or sister of your father or mother. • Your son-in-law, daughter-in-law, fa- ther-in-law, mother-in-law, brother-in-law, or sister-in-law. Dependent. For this purpose, the term “de- pendent” means: 1. A person you can claim as a dependent, or 2. A person you could have claimed as a de- pendent except that: a. He or she received gross income of $4,300 or more; TIP b. He or she filed a joint return; or c. You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2020 return. Foreign students brought to this coun- try under a qualified international edu- cation exchange program and placed in American homes for a temporary period gen- erally aren't U.S. residents and can't be claimed as dependents. Qualifying expenses. You may be able to de- duct the cost of books, tuition, food, clothing, transportation, medical and dental care, enter- tainment, and other amounts you actually spend for the well-being of the student. Expenses that don't qualify. You can't de- duct depreciation on your home, the fair market value of lodging, and similar items not consid- ered amounts actually spent by you. Nor can you deduct general household expenses, such as taxes, insurance, and repairs. Reimbursed expenses. In most cases, you can't claim a charitable contribution deduc- tion if you are compensated or reimbursed for any part of the costs of having a student live with you. However, you may be able to claim a charitable contribution deduction for the unreim- bursed portion of your expenses if you are reim- bursed only for an extraordinary or one-time item, such as a hospital bill or vacation trip, you paid in advance at the request of the student's parents or the sponsoring organization. Mutual exchange program. You can't de- duct 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. Reporting expenses. For a list of what you must file with your return if you deduct expen- ses for a student living with you, see Reporting expenses for student living with you under How To Report, later. Out-of-Pocket Expenses in Giving Services TIP Volunteers' Questions and Answers If you volunteer for a qualified organization, the following questions and answers may apply to you. All of the rules explained in this publication also apply. See, in particular, Out-of-Pocket Expenses in Giving Services. Question Answer I volunteer 6 hours a week in the office of a qualified organization. The receptionist is paid $10 an hour for the same work. Can I deduct $60 a week for my time? No, you can't deduct the value of your time or services. The office is 30 miles from my home. 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. If you don't want to figure your actual costs, you can deduct 14 cents for each mile. I volunteer as a Red Cross nurse's aide at a hospital. 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 aren't suitable for everyday use, and you must wear them when volunteering. I pay a babysitter to watch my children while I volunteer for a qualified organization. Can I deduct these costs? No, you can't deduct payments for childcare expenses as a charitable contribution, even if you would be unable to volunteer without childcare. (If you have childcare expenses so you can work for pay, see Pub. 503, Child and Dependent Care Expenses.) Table 2. Publication 526 (2020) Page 5

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Although you can't 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. 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. Table 2 contains questions and answers that apply to some individuals who volunteer their services. Underprivileged youths selected by charity. You can deduct reasonable unreimbursed out-of-pocket expenses you pay to allow under- privileged youths to attend athletic events, mov- ies, or dinners. The youths must be selected by a charitable organization whose goal is to re- duce juvenile delinquency. Your own similar ex- penses in accompanying the youths aren't de- ductible. Conventions. If a qualified organization se- lects you to attend a convention as its represen- tative, you can deduct your unreimbursed ex- penses for travel, including reasonable amounts for meals and lodging, while away from home overnight for the convention. How- ever, see Travel, later. You can't deduct personal expenses for sightseeing, fishing parties, theater tickets, or nightclubs. You also can't deduct travel, meals and lodging, and other expenses for your spouse or children. You can't deduct your travel expenses in at- tending a church convention if you go only as a member of your church rather than as a chosen representative. You can, however, deduct unre- imbursed expenses that are directly connected with giving services for your church during the convention. Uniforms. You can deduct the cost and up- keep of uniforms that aren't suitable for every- day use and that you must wear while perform- ing donated services for a qualified organization. Foster parents. 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 aren't, in fact, making a profit. A quali- fied organization must select the individuals you take into your home for foster care. You can deduct expenses that meet both of the following requirements. 1. They are unreimbursed out-of-pocket ex- penses to feed, clothe, and care for the foster child. 2. They are incurred primarily to benefit the qualified organization. Unreimbursed expenses that you can't de- duct as charitable contributions may be consid- ered support provided by you in determining whether you can claim the foster child as a de- pendent. For details, see Pub. 501, Depend- ents, Standard Deduction, and Filing Informa- tion. Example. You cared for a foster child be- cause you wanted to adopt her, not to benefit the agency that placed her in your home. Your unreimbursed expenses aren't deductible as charitable contributions. Church deacon. You can deduct as a charita- ble contribution any unreimbursed expenses you have while in a permanent diaconate pro- gram established by your church. These expen- ses include the cost of vestments, books, and transportation required in order to serve in the program as either a deacon candidate or an or- dained deacon. Car expenses. You can deduct as a charitable contribution any unreimbursed out-of-pocket expenses, such as the cost of gas and oil, di- rectly related to the use of your car in giving services to a charitable organization. You can't deduct general repair and maintenance expen- ses, depreciation, registration fees, or the costs of tires or insurance. If you don't want to deduct your actual ex- penses, you can use a standard mileage rate of 14 cents a mile to figure your contribution. You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. You must keep reliable written records of your car expenses. For more information, see Car expenses under Substantiation Require- ments, later. Travel. Generally, you can claim a charitable contribution deduction for travel expenses nec- essarily incurred while you are away from home performing services for a qualified organization only if there is no significant element of per- sonal pleasure, recreation, or vacation in the travel. This applies whether you pay the expen- ses directly or indirectly. You are paying the ex- penses indirectly if you make a payment to the qualified organization and the organization pays for your travel expenses. The deduction for travel expenses won't be denied simply because you enjoy providing services to the qualified organization. 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. However, if you have only nominal duties, or if for significant parts of the trip you don't have any duties, you can't de- duct your travel expenses. Example 1. You are a troop leader for a tax-exempt youth group and you take the group on a camping trip. You are responsible for over- seeing the setup of the camp and for providing adult supervision for other activities during the entire trip. You participate in the activities of the group and enjoy your time with them. You over- see the breaking of camp and you transport the group home. You can deduct your travel expen- ses. Example 2. You sail from one island to an- other and spend 8 hours a day counting whales and other forms of marine life. The project is sponsored by a qualified organization. In most circumstances, you can't deduct your expen- ses. Example 3. You work for several hours each morning on an archeological dig spon- sored by a qualified organization. The rest of the day is free for recreation and sightseeing. You can't take a charitable contribution deduc- tion even though you work very hard during those few hours. Example 4. You spend the entire day at- tending a qualified organization's regional meet- ing as a chosen representative. In the evening you go to the theater. You can claim your travel expenses as charitable contributions, but you can't claim the cost of your evening at the thea- ter. Daily allowance (per diem). If you provide services for a qualified organization and receive a daily allowance to cover reasonable travel ex- penses, 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. You may be able to deduct any necessary travel expen- ses that are more than the allowance. Deductible travel expenses. These in- clude: • 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 ho- tel; • Lodging costs; and • The cost of meals. Because these travel expenses aren't busi- ness-related, they aren't subject to the same limits as business-related expenses. For infor- mation on business travel expenses, see Travel in Pub. 463, Travel, Gift, and Car Expenses. Expenses of Whaling Captains You may be able to deduct as a charitable con- tribution any reasonable and necessary whaling expenses you pay during the year to carry out sanctioned whaling activities. The deduction is limited to $10,000 a year. To claim the deduc- tion, you must be recognized by the Alaska Es- kimo Whaling Commission as a whaling captain charged with the responsibility of maintaining and carrying out sanctioned whaling activities. Sanctioned whaling activities are subsis- tence bowhead whale hunting activities con- ducted under the management plan of the Alaska Eskimo Whaling Commission. Whaling expenses include expenses for: • Acquiring and maintaining whaling boats, weapons, and gear used in sanctioned whaling activities; • Supplying food for the crew and other pro- visions for carrying out these activities; and • Storing and distributing the catch from these activities. You must keep records showing the time, place, date, amount, and nature of the expenses. For details, see Reve- nue Procedure 2006-50, 2006-47 I.R.B. 944, available at IRS.gov/irb/ 2006-47_IRB#RP-2006-50. RECORDS Page 6 Publication 526 (2020)

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Contributions You Can't Deduct There are some contributions you can't deduct and others you can deduct only in part. You can't deduct as a charitable contribu- tion: 1. A contribution to a specific individual, 2. A contribution to a nonqualified organiza- tion, 3. The part of a contribution from which you receive or expect to receive a benefit, 4. The value of your time or services, 5. Your personal expenses, 6. A qualified charitable distribution from an individual retirement arrangement (IRA), 7. Appraisal fees, 8. Certain contributions to donor-advised funds, or 9. Certain contributions of partial interests in property. Detailed discussions of these items follow. Contributions to Individuals You can't deduct contributions to specific indi- viduals, including the following. • Contributions to fraternal societies made for the purpose of paying medical or burial expenses of members. • Contributions to individuals who are needy or worthy. You can't deduct these contribu- tions even if you make them to a qualified organization for the benefit of a specific person. But you can deduct a contribution to a qualified organization that helps needy or worthy individuals if you don't indicate that your contribution is for a specific per- son. Example. You can deduct contribu- tions to a qualified organization for flood relief, hurricane relief, or other disaster re- lief. However, you can’t deduct contribu- tions earmarked for relief of a particular in- dividual or family. • Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses. • Expenses you paid for another person who provided services to a qualified organiza- tion. Example. Your son does missionary work. You pay his expenses. You can't claim a deduction for your son's unreim- bursed expenses related to his contribu- tion of services. • Payments to a hospital that are for a spe- cific patient's care or for services for a spe- cific patient. You can't deduct these pay- ments even if the hospital is operated by a city, state, or other qualified organization. If you made a contribution for the relief of the families of victims of the mass shooting in Virginia Beach, Virginia, on May 31, 2019, and meet the requirements, de- scribed earlier under Virginia Beach Strong Act, this contribution isn’t considered a contribution to a specific individual. Contributions to Nonqualified Organizations You can't deduct contributions to organizations that aren't qualified to receive tax-deductible contributions, including the following. 1. Certain state bar associations if: a. The bar isn't a political subdivision of a state; b. The bar has private, as well as public, purposes, such as promoting the pro- fessional interests of members; and c. Your contribution is unrestricted and can be used for private purposes. 2. Chambers of commerce and other busi- ness leagues or organizations. 3. Civic leagues and associations. 4. Country clubs and other social clubs. 5. Foreign organizations other than certain Canadian, Israeli, or Mexican charitable organizations. (See Canadian charities, Mexican charities, and Israeli charities un- der Organizations That Qualify To Receive Deductible Contributions, earlier.) Also, you can't deduct a contribution you made to any qualifying organization if the contri- bution is earmarked to go to a foreign or- ganization. However, certain contributions to a qualified organization for use in a pro- gram conducted by a foreign charity may be deductible as long as they aren't ear- marked to go to the foreign charity. For the contribution to be deductible, the qualified organization must approve the program as furthering its own exempt purposes and must keep control over the use of the con- tributed funds. The contribution is also de- ductible if the foreign charity is only an ad- ministrative arm of the qualified organization. 6. Homeowners' associations. 7. Labor unions. 8. Political organizations and candidates. Contributions From Which You Benefit If you receive or expect to receive a financial or economic benefit as a result of making a contri- bution to a qualified organization, you can't de- duct the part of the contribution that represents the value of the benefit you receive. See Contri- butions From Which You Benefit under Contri- butions You Can Deduct, earlier. These contri- butions include the following. • Contributions to a college or university if the amount paid is to (or for the benefit of) a college or university in exchange for TIP tickets (or the right to buy tickets) to an ath- letic event in an athletic stadium of the col- lege or university. • Contributions from which you receive or expect to receive a credit or deduction against state or local taxes unless an ex- ception applies. See State or local tax credit and State or local tax deduction, ear- lier. • Contributions for lobbying. This includes amounts you earmark for use in, or in con- nection with, influencing specific legisla- tion. • Contributions to a retirement home for room, board, maintenance, or admittance. Also, if the amount of your contribution de- pends on the type or size of apartment you will occupy, it isn't a charitable contribu- tion. • Costs of raffles, bingo, lottery, etc. You can't deduct as a charitable contribution amounts you pay to buy raffle or lottery tickets or to play bingo or other games of chance. For information on how to report gambling winnings and losses, see Expen- ses You Can Deduct in Pub. 529. • Dues to fraternal orders and similar groups. However, see Membership fees or dues under Contributions From Which You Benefit, earlier. • Tuition, or amounts you pay instead of tui- tion. You can't deduct as a charitable con- tribution amounts you pay as tuition even if you pay them for children to attend paro- chial schools or qualifying nonprofit day- care centers. You also can't 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 “dona- tion.” • Contributions connected with split-dollar insurance arrangements. You can't deduct any part of a contribution to a qualified or- ganization if, in connection with the contri- bution, the organization directly or indi- rectly pays, has paid, or is expected to pay any premium on any life insurance, annu- ity, or endowment contract for which you, any member of your family, or any other person chosen by you (other than a quali- fied charitable organization) is a benefi- ciary. Example. You donate money to a qualified organization. The charity uses the money to purchase a cash value life insur- ance policy. The beneficiaries under the in- surance policy include members of your family. Even though the charity may even- tually get some benefit out of the insurance policy, you can't deduct any part of the donation. Qualified Charitable Distributions A qualified charitable distribution (QCD) is a distribution made directly by the trustee of your individual retirement arrangement (IRA), other than a SEP or SIMPLE IRA, to certain qualified organizations. You must have been at least age 701/2 when the distribution was made. Your total QCDs for the year can't be more than $100,000. If all the requirements are met, a QCD is non- taxable, but you can't claim a charitable contri- bution deduction for a QCD. See Pub. 590-B, Publication 526 (2020) Page 7

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Distributions from Individual Retirement Ar- rangements (IRAs), for more information about QCDs. Value of Time or Services You can't deduct the value of your time or serv- ices, 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 organi- zation. Personal Expenses You can't deduct personal, living, or family ex- penses, such as the following items. • The cost of meals you eat while you per- form services for a qualified organization, unless it is necessary for you to be away from home overnight while performing the services. • Adoption expenses, including fees paid to an adoption agency and the costs of keep- ing a child in your home before the adop- tion is final. However, you may be able to claim a tax credit for these expenses. Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expen- ses. See Form 8839, Qualified Adoption Expenses, and its instructions, for more in- formation. Appraisal Fees You can't deduct as a charitable contribution any fees you pay to find the fair market value of donated property. Contributions to Donor-Advised Funds You can't deduct a contribution to a donor-ad- vised fund if: • The qualified organization that sponsors the fund is a war veterans' organization, a fraternal society, or a nonprofit cemetery company; or • You don't have an acknowledgment from that sponsoring organization that it has ex- clusive legal control over the assets con- tributed. There are also other circumstances in which you can't deduct your contribution to a do- nor-advised fund. Generally, a donor-advised fund is a fund or account in which a donor can, because of being a donor, advise the fund how to distribute or in- vest amounts held in the fund. For details, see Internal Revenue Code section 170(f)(18). Partial Interest in Property Generally, you can't deduct a contribution of less than your entire interest in property. For de- tails, see Partial Interest in Property under Con- tributions of Property, later. Contributions of Property If you contribute property to a qualified organi- zation, the amount of your charitable contribu- tion is generally the fair market value of the property at the time of the contribution. How- ever, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. See Giving Property That Has Increased in Value, later. For information about the records you must keep and the information you must furnish with your return if you donate property, see Substan- tiation Requirements and How To Report, later. Contributions Subject to Special Rules Special rules apply if you contribute: • Clothing or household items, • A car, boat, or airplane, • Taxidermy property, • Property subject to a debt, • A partial interest in property, • A fractional interest in tangible personal property, • A qualified conservation contribution, • A future interest in tangible personal prop- erty, • Inventory from your business, or • A patent or other intellectual property. These special rules are described next. Clothing and Household Items You can't take a deduction for clothing or household items you donate unless the clothing or household items are in good used condition or better. Exception. You can take a deduction for a contribution of an item of clothing or a house- hold item that isn't in good used condition or better if you deduct more than $500 for it, and include a qualified appraisal prepared by a qualified appraiser and a completed Form 8283, Section B. Household items. Household items include: • Furniture and furnishings, • Electronics, • Appliances, • Linens, and • Other similar items. Household items don't include: • Food; • Paintings, antiques, and other objects of art; • Jewelry and gems; and • Collections. Fair market value. To determine the fair mar- ket value of these items, use the rules under Determining Fair Market Value, later. Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. 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. Deduction more than $500. 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. If the vehicle's fair mar- ket 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 Prop- erty That Has Increased in Value, later. Form 1098-C. You must attach to your re- turn Copy B of the Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes (or other statement containing the same informa- tion as Form 1098-C) you received from the or- ganization. The Form 1098-C (or other state- ment) will show the gross proceeds from the sale of the vehicle. If you e-file your return, you must: • Attach Copy B of Form 1098-C to Form 8453, U.S. Individual Income Tax Trans- mittal for an IRS e-file Return, and mail the forms to the IRS; or • Include Copy B of Form 1098-C as a pdf attachment if your software program allows it. If you don't attach Form 1098-C (or other statement), you can't deduct your contribution. You must get Form 1098-C (or other state- ment) within 30 days of the sale of the vehicle. But if Exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Filing deadline approaching and still no Form 1098-C. If the filing deadline is ap- proaching and you still don't have a Form 1098-C, you have two choices. 1. Request an automatic 6-month extension of time to file your return. You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. For more information, see the Instructions for Form 4868. 2. File the return on time without claiming the deduction for the qualified vehicle. After receiving the Form 1098-C, file an amen- ded return, Form 1040-X, Amended U.S. Individual Income Tax Return, claiming the deduction. Attach Copy B of Form 1098-C (or other statement) to the amended re- turn. Exceptions. 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Exception 1—Vehicle used or improved by organization. If the qualified organization makes a significant intervening use of, or mate- rial improvement to, the vehicle before transfer- ring it, you can generally deduct the vehicle's fair market value at the time of the contribution. 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 deducti- ble amount, as described under Giving Property That Has Increased in Value, later. The Form 1098-C (or other statement) will show whether this exception applies. Exception 2—Vehicle given or sold to needy individual. If the qualified organization will give the vehicle, or sell it for a price well be- low fair market value, to a needy individual to further the organization's charitable purpose, you can generally deduct the vehicle's fair mar- ket value at the time of the contribution. But if the vehicle's fair market value was more than your cost or other basis, you may have to re- duce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value, later. The Form 1098-C (or other statement) will show whether this exception applies. This exception doesn't apply if the organiza- tion sells the vehicle at auction. In that case, you can't deduct the vehicle's fair market value. Example. Anita donates a used car to a qualified organization. She bought it 3 years ago for $9,000. A used car guide shows the fair market value for this type of car is $6,000. How- ever, Anita gets a Form 1098-C from the organi- zation showing the car was sold for $2,900. Nei- ther Exception 1 nor Exception 2 applies. If Anita itemizes her deductions, she can deduct $2,900 for her donation. She must attach Form 1098-C and Form 8283, Noncash Charitable Contributions, to her return. Deduction $500 or less. If the qualified or- ganization sells the vehicle for $500 or less and Exceptions 1 and 2 don't apply, you can deduct the smaller of: • $500, or • The vehicle's fair market value on the date of the contribution. 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 Prop- erty That Has Increased in Value, later. 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 organiza- tion acknowledging your donation. The state- ment must contain the information and meet the tests for an acknowledgment described under Deductions of at Least $250 but Not More Than $500 under Substantiation Requirements, later. Fair market value. To determine a vehicle's fair market value, use the rules described under Determining Fair Market Value, later. Donations of inventory. The vehicle donation rules just described don't apply to donations of inventory. For example, these rules don't apply if you are a car dealer who donates a car you had been holding for sale to customers. See In- ventory, later. Taxidermy Property If you donate taxidermy property to a qualified organization, your deduction is limited to your basis in the property or its fair market value, whichever is less. This applies if you prepared, stuffed, or mounted the property or paid or in- curred the cost of preparing, stuffing, or mount- ing the property. Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Your basis doesn't include transporta- tion or travel costs. It also doesn't include the di- rect or indirect costs for hunting or killing an ani- mal, such as equipment costs. In addition, it doesn't include the value of your time. Taxidermy property means any work of art that: • Is the reproduction or preservation of an animal, in whole or in part; • Is prepared, stuffed, or mounted to recre- ate one or more characteristics of the ani- mal; and • Contains a part of the body of the dead an- imal. Property Subject to a Debt If you contribute property subject to a debt (such as a mortgage), you must reduce the fair market value of the property by: 1. Any allowable deduction for interest you paid (or will pay) that is attributable to any period after the contribution, and 2. If the property is a bond, the lesser of: a. Any allowable deduction for interest you paid (or will pay) to buy or carry the bond that is attributable to any pe- riod before the contribution, or b. The interest, including bond discount, receivable on the bond that is attribut- able to any period before the contribu- tion, and that isn't includible in your in- come due to your accounting method. This prevents you from deducting the same amount as both investment interest and a chari- table contribution. If the recipient (or another person) assumes the debt, you must also reduce the fair market value of the property by the amount of the out- standing debt assumed. The amount of the debt is also treated as an amount realized on the sale or exchange of property for purposes of figuring your taxable gain (if any). For more information, see Bargain Sales under Giving Property That Has In- creased in Value, later. Partial Interest in Property Generally, you can't deduct a charitable contri- bution of less than your entire interest in prop- erty. Right to use property. A contribution of the right to use property is a contribution of less than your entire interest in that property and isn't deductible. Example 1. You own a 10-story office building and donate rent-free use of the top floor to a qualified organization. Because you still own the building, you have contributed a partial interest in the property and can't take a deduction for the contribution. Example 2. Mandy White owns a vacation home at the beach that she sometimes rents to others. For a fundraising auction at her church, she donated the right to use the vacation home for 1 week. At the auction, the church received and accepted a bid from Lauren Green equal to the fair rental value of the home for 1 week. Mandy can't claim a deduction because of the partial interest rule. Lauren can't claim a deduc- tion either, because she received a benefit equal to the amount of her payment. See Con- tributions From Which You Benefit, earlier. Exceptions. You can deduct a charitable con- tribution of a partial interest in property only if that interest represents one of the following items. • A remainder interest in your personal home or farm. A remainder interest is one that passes to a beneficiary after the end of an earlier interest in the property. Example. You keep the right to live in your home during your lifetime and give your church a remainder interest that be- gins upon your death. You can deduct the value of the remainder interest. • An undivided part of your entire interest. This must consist of a part of every sub- stantial interest or right you own in the property and must last as long as your in- terest in the property lasts. But see Frac- tional Interest in Tangible Personal Prop- erty, later. Example. You contribute voting stock to a qualified organization but keep the right to vote the stock. The right to vote is a substantial right in the stock. You haven't contributed an undivided part of your entire interest and can't deduct your contribution. • A partial interest that would be deductible if transferred to certain types of trusts. • A qualified conservation contribution (de- fined later). For information about how to figure the value of a contribution of a partial interest in property, see Partial Interest in Property Not in Trust in Pub. 561. Fractional Interest in Tangible Personal Property You can't deduct a charitable contribution of a fractional interest in tangible personal property unless all interests in the property are held im- mediately before the contribution by: • You, or • You and the qualifying organization receiv- ing the contribution. Publication 526 (2020) Page 9

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If you make an additional contribution later, the fair market value of that contribution will be determined by using the smaller of: • The fair market value of the property at the time of the initial contribution, or • The fair market value of the property at the time of the additional contribution. Tangible personal property is defined later under Future Interest in Tangible Personal Property. A fractional interest in property is an undivided portion of your entire interest in the property. Example. An undivided one-quarter inter- est in a painting that entitles an art museum to possession of the painting for 3 months of each year is a fractional interest in the property. Recapture of deduction. You must recapture your charitable contribution deduction by in- cluding it in your income if both of the following statements are true. 1. You contributed a fractional interest in tan- gible personal property after August 17, 2006. 2. You don't contribute the rest of your inter- ests in the property to the original recipient or, if it no longer exists, another qualified organization on or before the earlier of: a. The date that is 10 years after the date of the initial contribution, or b. The date of your death. Recapture is also required if the qualified or- ganization hasn't taken substantial physical possession of the property and used it in a way related to the organization's purpose during the period beginning on the date of the initial contri- bution and ending on the earlier of: 1. The date that is 10 years after the date of the initial contribution, or 2. The date of your death. Additional tax. If you must recapture your deduction, you must also pay interest and an additional tax equal to 10% of the amount re- captured. Qualified Conservation Contribution A qualified conservation contribution is a contri- bution of a qualified real property interest to a qualified organization to be used only for con- servation purposes. Qualified organization. For purposes of a qualified conservation contribution, a qualified organization is: • A governmental unit; • A publicly supported charity; or • An organization controlled by, and oper- ated for the exclusive benefit of, a govern- mental unit or a publicly supported charity. The organization must also have a commitment to protect the conservation purposes of the donation and must have the resources to en- force the restrictions. A publicly supported charity is an organiza- tion of the type described in (1) under Types of Qualified Organizations, earlier, that normally receives a substantial part of its support, other than income from its exempt activities, from di- rect or indirect contributions from the general public or from governmental units. Qualified real property interest. This is any of the following interests in real property. 1. Your entire interest in real estate other than a mineral interest (subsurface oil, gas, or other minerals, and the right of ac- cess to these minerals). 2. A remainder interest. 3. A restriction (granted in perpetuity) on the use that may be made of the real property. Conservation purposes. Your contribution must be made only for one of the following con- servation purposes. • Preserving land areas for outdoor recrea- tion by, or for the education of, the general public. • Protecting a relatively natural habitat of fish, wildlife, or plants, or a similar ecosys- tem. • Preserving open space, including farmland and forest land, if it yields a significant pub- lic benefit. The open space must be pre- served either for the scenic enjoyment of the general public or under a clearly de- fined federal, state, or local governmental conservation policy. • Preserving a historically important land area or a certified historic structure. Building in registered historic district. If a building in a registered historic district is a certi- fied historic structure, a contribution of a quali- fied real property interest that is an easement or other restriction on the exterior of the building is deductible only if it meets all of the following conditions. 1. The restriction must preserve the entire exterior of the building (including its front, sides, rear, and height) and must prohibit any change to the exterior of the building that is inconsistent with its historical char- acter. 2. You and the organization receiving the contribution must enter into a written agreement certifying, under penalty of per- jury, that the organization: a. Is a qualified organization with a pur- pose of environmental protection, land conservation, open space pres- ervation, or historic preservation, and b. Has the resources to manage and en- force the restriction and a commit- ment to do so. 3. You must include with your return: a. A Qualified appraisal, performed by a Qualified appraiser; b. Photographs of the building's entire exterior; and c. A description of all restrictions on de- velopment of the building, such as zoning laws and restrictive covenants. If you claimed the rehabilitation credit for the building for any of the 5 years before the year of the contribution, your charitable deduction is re- duced. For more information, see Form 3468, Investment Credit, and Internal Revenue Code section 170(f)(14). If you claim a deduction of more than $10,000, your deduction won't be allowed un- less you pay a $500 filing fee. See Form 8283-V, Payment Voucher for Filing Fee Under Section 170(f)(13), and its instructions. More information. For information about de- termining the fair market value of qualified con- servation contributions, see Pub. 561. For infor- mation about the limits that apply to deductions for this type of contribution, see Limits on De- ductions, later. For more information about qualified conservation contributions, see Regu- lations section 1.170A-14. Future Interest in Tangible Personal Property You can't deduct the value of a charitable con- tribution 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. But see Frac- tional Interest in Tangible Personal Property, earlier, and Tangible personal property put to unrelated use, later. Related persons include your spouse, chil- dren, grandchildren, brothers, sisters, and pa- rents. Related organizations may include a part- nership or corporation in which you have an interest, or an estate or trust with which you have a connection. Tangible personal property. This is any property, other than land or buildings, that can be seen or touched. It includes furniture, books, jewelry, paintings, and cars. Future interest. This is any interest that is to begin at some future time, regardless of whether it is designated as a future interest un- der state law. Example. You own an antique car that you contribute to a museum. You give up owner- ship, but retain the right to keep the car in your garage with your personal collection. Because you keep an interest in the property, you can't deduct the contribution. If you turn the car over to the museum in a later year, giving up all rights to its use, possession, and enjoyment, you can take a deduction for the contribution in that later year. Inventory If you contribute inventory (property you sell in the course of your business), the amount you can deduct is the smaller of its fair market value on the day you contributed it or its basis. The basis of contributed inventory is any cost incur- red for the inventory in an earlier year that you would otherwise include in your opening inven- tory for the year of the contribution. You must remove the amount of your charitable Page 10 Publication 526 (2020)

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contribution deduction from your opening inven- tory. It isn't part of the cost of goods sold. If the cost of donated inventory isn't included in your opening inventory, the inventory's basis is zero and you can't claim a charitable contri- bution deduction. Treat the inventory's cost as you would ordinarily treat it under your method of accounting. For example, include the pur- chase price of inventory bought and donated in the same year in the cost of goods sold for that year. A special rule applies to certain donations of food inventory. See Food Inventory, later. Patents and Other Intellectual Property If you donate intellectual property to a qualified organization, your deduction is limited to the ba- sis of the property or the fair market value of the property, whichever is smaller. Intellectual prop- erty means any of the following. • Patents. • Copyrights (other than a copyright descri- bed in Internal Revenue Code sections 1221(a)(3) or 1231(b)(1)(C)). • Trademarks. • Trade names. • Trade secrets. • Know-how. • Software (other than software described in Internal Revenue Code section 197(e)(3) (A)(i)). • Other similar property or applications or registrations of such property. Additional deduction based on income. You may be able to claim additional charitable contribution deductions in the year of the contri- bution and years following, based on the in- come, if any, from the donated property. The following table shows the percentage of income from the property that you can deduct for each of your tax years ending on or after the date of the contribution. In the table, “tax year 1,” for example, means your first tax year end- ing on or after the date of the contribution. How- ever, you can take the additional deduction only to the extent the total of the amounts figured us- ing this table is more than the amount of the de- duction claimed for the original donation of the property. After the legal life of the intellectual property ends, or after the 10th anniversary of the dona- tion, whichever is earlier, no additional deduc- tion is allowed. The additional deductions can't be taken for intellectual property donated to certain private foundations. Tax year Deductible percentage 1 100% 2 100% 3 90% 4 80% 5 70% 6 60% 7 50% 8 40% 9 30% 10 20% 11 10% 12 10% Reporting requirements. You must inform the organization at the time of the donation that you intend to treat the donation as a contribu- tion subject to the provisions just discussed. The organization is required to file an infor- mation return showing the income from the property, with a copy to you. This is done on Form 8899, Notice of Income From Donated In- tellectual Property. Determining Fair Market Value This section discusses general guidelines for determining the fair market value of various types of donated property. Pub. 561 contains a more complete discussion. Fair market value is the price at which prop- erty 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. Used clothing. The fair market value of used clothing and other personal items is usually far less than the price you paid for them. There are no fixed formulas or methods for finding the value of items of clothing. You should claim as the value the price that buyers of used items actually pay in used cloth- ing stores, such as consignment or thrift shops. Also see Clothing and Household Items, earlier. Example. Kristin donated a coat to a thrift store operated by her church. She paid $300 for the coat 3 years ago. Similar coats in the thrift store sell for $50. The fair market value of the coat is $50. Kristin's donation is limited to $50. Household items. The fair market value of used household items, such as furniture, appli- ances, and linens, usually is much lower than the price paid when new. These items may have little or no market value because they are in a worn condition, out of style, or no longer useful. For these reasons, formulas (such as using a percentage of the cost to buy a new re- placement item) aren't acceptable in determin- ing value. You should support your valuation with pho- tographs, canceled checks, receipts from your purchase of the items, or other evidence. Maga- zine or newspaper articles and photographs that describe the items and statements by the recipients of the items are also useful. Don't in- clude any of this evidence with your tax return. If the property is valuable because it is old or unique, see the discussion under Paintings, An- tiques, and Other Objects of Art in Pub. 561. Also see Clothing and Household Items, earlier. Article of clothing or household item over $500 not in good used condition. You must file Form 8283, Section B, if you are con- tributing a single article of clothing or household item over $500 that is not in good used condi- tion. See the Form 8283 instructions for more information. Cars, boats, and airplanes. If you contribute a car, boat, or airplane to a qualified organiza- tion, you must determine its fair market value. Qualified vehicle donation. You don’t need a written appraisal for a qualified vehi- cle — such as a car, boat, or airplane — if your deduction for the qualified vehicle is limited to the gross proceeds from its sale and you ob- tained a contemporaneous written acknowl- edgement (defined later). If you donate a quali- fied vehicle with a claimed value of more than $500, you can’t claim a deduction unless you attach to Form 8283 a copy of the contempora- neous written acknowledgement you received from the donee organization. See Qualified Ve- hicle Donations in the Instructions for Form 8283. Boats. Except for small, inexpensive boats, the valuation of boats should be based on an appraisal by a marine surveyor or appraiser be- cause the physical condition is critical to the value. Cars. Certain commercial firms and trade organizations publish used car pricing guides, commonly called “blue books,” containing com- plete dealer sale prices or dealer average pri- ces for recent model years. The guides may be published monthly or seasonally, and for differ- ent regions of the country. These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical con- dition. The prices aren't “official” and these pub- lications aren't considered an appraisal of any specific donated property. But they do provide clues for making an appraisal and suggest rela- tive prices for comparison with current sales and offerings in your area. These publications are sometimes available from public libraries, or from the loan officer at a bank, credit union, or finance company. You can also find used car pricing information on the Internet. To find the fair market value of a donated car, use the price listed in a used car guide for a private party sale, not the dealer retail value. However, the fair market value may be less if the car has engine trouble, body damage, high mileage, or any type of excessive wear. The fair market value of a donated car is the same as the price listed in a used car guide for a private party sale only if the guide lists a sales price for a car that is the same make, model, and year, sold in the same area, in the same condition, with the same or similar options or accessories, Publication 526 (2020) Page 11

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and with the same or similar warranties as the donated car. Example. You donate a used car in poor condition to a local high school for use by stu- dents studying car repair. A used car guide shows the dealer retail value for this type of car in poor condition is $1,600. However, the guide shows the price for a private party sale of the car is only $750. The fair market value of the car is considered to be $750. Large quantities. 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. Example. You purchase 500 bibles for $1,000. The person who sells them to you says the retail value of these bibles is $3,000. If you contribute the bibles to a qualified organization, you can claim a deduction only for the price at which similar numbers of the same bible are currently being sold. Your charitable contribu- tion is $1,000, unless you can show that similar numbers of that bible were selling at a different price at the time of the contribution. 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 de- duction is limited to its fair market value. You can't claim a deduction for the difference be- tween the property's basis and its fair market value. Your basis in property is generally what you paid for it. If you need more information about basis, see Pub. 551, Basis of Assets. You may want to see Pub. 551 if you contribute property that you: • Received as a gift or inheritance; • Used in a trade, business, or activity con- ducted for profit; or • Claimed a casualty loss deduction for. Common examples of property that de- crease in value include clothing, furniture, appli- ances, and cars. 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. Your basis in property is generally what you paid for it. If you need more information about basis, see Pub. 551. Different rules apply to figuring your deduc- tion, depending on whether the property is: • Ordinary income property, or • Capital gain property. Ordinary Income Property 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. Ex- amples of ordinary income property are inven- tory, works of art created by the donor, manu- scripts prepared by the donor, and capital assets (defined later, under Capital Gain Prop- erty) held 1 year or less. Property used in a trade or business. Property used in a trade or business is consid- ered ordinary income property to the extent of any gain that would have been treated as ordi- nary income because of depreciation had the property been sold at its fair market value at the time of contribution. See chapter 3 of Pub. 544, Sales and Other Dispositions of Assets, for the kinds of property to which this rule applies. Amount of deduction. 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. Generally, this rule lim- its the deduction to your basis in the property. Example. You donate stock you held for 5 months to your church. The fair market value of the stock on the day you donate it is $1,000, but you paid only $800 (your basis). Because the $200 of appreciation would be short-term capi- tal gain if you sold the stock, your deduction is limited to $800 (fair market value minus the ap- preciation). Exception. Don't reduce your charitable contribution if you include the ordinary or capital gain income in your gross income in the same year as the contribution. See Ordinary or capital gain income included in gross income under Capital Gain Property next, if you need more in- formation. Capital Gain Property 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. Capital gain property includes cap- ital assets held more than 1 year. Capital assets. Capital assets include most items of property you own and use for personal purposes or investment. Examples of capital assets are stocks, bonds, jewelry, coin or stamp collections, and cars or furniture used for per- sonal purposes. For purposes of figuring your charitable con- tribution, capital assets also include certain real property and depreciable property used in your trade or business and, generally, held more than 1 year. You may, however, have to treat this property as partly ordinary income property and partly capital gain property. See Property used in a trade or business under Ordinary In- come Property, earlier. Real property. Real property is land and generally anything built on, growing on, or at- tached to land. Depreciable property. Depreciable prop- erty is property used in business or held for the production of income and for which a deprecia- tion deduction is allowed. For more information about what is a capital asset, see chapter 2 of Pub. 544. Amount of deduction—General rule. When figuring your deduction for a contribution of cap- ital gain property, you can generally use the fair market value of the property. Exceptions. However, 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 mar- ket value. Generally, this means reducing the fair market value to the property's cost or other basis. You must do this if: 1. The property (other than qualified appreci- ated stock) is contributed to certain private nonoperating foundations, 2. You choose the 50% limit instead of the 30% limit for capital gain property given to 50% limit organizations, discussed later, 3. The contributed property is intellectual property (as defined earlier under Patents and Other Intellectual Property), 4. The contributed property is certain taxi- dermy property as explained earlier, or 5. The contributed property is tangible per- sonal property (defined earlier) that: a. Is put to an unrelated use (defined later) by the charity, or b. Has a claimed value of more than $5,000 and is sold, traded, or other- wise disposed of by the qualified or- ganization during the year in which you made the contribution, and the qualified organization hasn't made the required certification of exempt use (such as on Form 8282, Donee Infor- mation Return, Part IV). See also Re- capture if no exempt use, later. Contributions to private nonoperating foun- dations. The reduced deduction applies to contributions to all private nonoperating founda- tions other than those qualifying for the 50% limit, discussed later. However, the reduced deduction doesn't ap- ply to contributions of qualified appreciated stock. Qualified appreciated stock is any stock in a corporation that is capital gain property and for which market quotations are readily availa- ble on an established securities market on the day of the contribution. But stock in a corpora- tion doesn't count as qualified appreciated stock to the extent you and your family contrib- uted more than 10% of the value of all the out- standing stock in the corporation. Tangible personal property put to unrelated use. Tangible personal property is defined ear- lier under Future Interest in Tangible Personal Property. Unrelated use. The term “unrelated use” means a use unrelated to the exempt purpose or function of the qualified organization. For a governmental unit, it means the use of the con- tributed property for other than exclusively pub- lic purposes. Example. If a painting contributed to an ed- ucational institution is used by that organization Page 12 Publication 526 (2020)

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for educational purposes by being placed in its library for display and study by art students, the use isn't an unrelated use. But if the painting is sold and the proceeds are used by the organi- zation for educational purposes, the use is an unrelated use. Deduction limited. Your deduction for a contribution of tangible personal property may be limited. See (5) under Exceptions, earlier. Recapture if no exempt use. You must re- capture part of your charitable contribution de- duction by including it in your income if all the following statements are true. 1. You donate tangible personal property with a claimed value of more than $5,000, and your deduction is more than your ba- sis in the property. 2. The organization sells, trades, or other- wise disposes of the property after the year it was contributed but within 3 years of the contribution. 3. The organization doesn't provide a written statement (such as on Form 8282, Part IV), signed by an officer of the organiza- tion under penalty of perjury, that either: a. Certifies its use of the property was substantial and related to the organi- zation's purpose, or b. Certifies its intended use of the prop- erty became impossible. If all the preceding statements are true, in- clude in your income: 1. The deduction you claimed for the prop- erty, minus 2. Your basis in the property when you made the contribution. Include this amount in your income for the year the qualified organization disposes of the prop- erty. Report the recaptured amount on Sched- ule 1 (Form 1040), line 8. Ordinary or capital gain income included in gross income. You don't reduce your charita- ble contribution if you include the ordinary or capital gain income in your gross income in the same year as the contribution. This may hap- pen when you transfer installment or discount obligations or when you assign income to a qualified organization. If you contribute an obli- gation received in a sale of property that is re- ported under the installment method, see Pub. 537, Installment Sales. Example. You donate an installment note to a qualified organization. The note has a fair market value of $10,000 and a basis to you of $7,000. As a result of the donation, you have a short-term capital gain of $3,000 ($10,000 − $7,000), which you include in your income for the year. Your charitable contribution is $10,000. Food Inventory Special rules apply to certain donations of food inventory to a qualified organization. These rules apply if all the following conditions are met. 1. You made a contribution of apparently wholesome food from your trade or busi- ness. Apparently wholesome food is food intended for human consumption that meets all quality and labeling standards imposed by federal, state, and local laws and regulations even though the food may not be readily marketable due to appear- ance, age, freshness, grade, size, surplus, or other conditions. 2. The food is to be used only for the care of the ill, the needy, or infants. 3. The use of the food is related to the organ- ization's exempt purpose or function. 4. The organization doesn't transfer the food for money, other property, or services. 5. You receive a written statement from the organization stating it will comply with re- quirements (2), (3), and (4). 6. The organization isn't a private nonoperat- ing foundation. 7. The food satisfies any applicable require- ments of the Federal Food, Drug, and Cosmetic Act and regulations on the date of transfer and for the previous 180 days. If all the conditions just described are met, use the following worksheet to figure your de- duction. Worksheet 1. Donations of Food Inventory See separate Worksheet instructions. (Keep for your records) 1. Enter fair market value of the donated food . . . . . . . . . . . . . . . . .

2. Enter basis of the donated food . . . . . . . . . . . . . . . . . . . . . . .

3. Subtract line 2 from line 1. If the result is zero or less, stop here. Don't complete the rest of this worksheet. Your charitable contribution deduction for food is the amount on line 1 . . . . . . . . . . . . . . .

4. Enter one-half of line 3 . . . . . . . . . .

5. Subtract line 4 from line 1 . . . . . . . .

6. Multiply line 2 by 2.0 . . . . . . . . . . . .

7. Subtract line 6 from line 5. If the result is less than zero, enter -0- . . . . . . . .

8. Add lines 4 and 7 . . . . . . . . . . . . . .

9. Compare line 3 and line 8. Enter the smaller amount . . . . . . . . . . . . . . .

10. Subtract line 9 from line 1 . . . . . . . .

11. Enter 25% of your total net income for the year from all trades or businesses from which food inventory was donated . . . . . . . . . .

12. Compare line 10 and line 11. Enter the smaller amount. This is your charitable contribution deduction for the food . . . . . . . . . . . . . . . . . .

Worksheet instructions. When determining the fair market value to enter on line 1 of the worksheet, take into account the price at which the same or substantially the same food items (as to both type and quality) were sold by you at the time of the contribution. Don’t reduce this amount because the food wasn’t or couldn’t be sold by reason of your internal standards, lack of market, or similar circumstances. Also, don’t reduce this amount even though you produced the food exclusively for the purpose of transfer- ring the food to a qualified organization. If you don’t account for inventories under section 471 and you aren’t required to capitalize indirect costs under section 263A, you may elect, solely for the purpose of line 2 of the worksheet, to treat the basis of any apparently wholesome food as being equal to 25% of the fair market value of such food. Enter on line 11 of the worksheet 25% of your net income for the year from all sole pro- prietorships, S corporations, or partnerships (or other entity that isn't a C corporation) from which contributions of food inventory were made. Figure net income before any deduction for a charitable contribution of food inventory. If you made more than one contribution of food inventory, complete a separate worksheet for each contribution. Complete lines 11 and 12 on only one worksheet. On that worksheet, complete line 11. Then compare line 11 and the total of the line 10 amounts on all worksheets and enter the smaller of those amounts on line 12. If line 11 is smaller than line 10, you can carry over the excess as a qualifying food in- ventory contribution to the following year. You may be able to include the excess in your chari- table contribution deduction for the food in each of the next 5 years in order of time until it is used up, but not beyond that time. More information. See Inventory, earlier, for information about determining the basis of do- nated inventory and the effect on cost of goods sold. For additional details, see section 170(e) (3) of the Internal Revenue Code. Bargain Sales A bargain sale of property is a sale or exchange for less than the property's fair market value. A bargain sale to a qualified organization is partly a charitable contribution and partly a sale or ex- change. Part that is a sale or exchange. The part of the bargain sale that is a sale or exchange may result in a taxable gain. For more information on figuring the amount of any taxable gain, see Bargain sales to charity in chapter 1 of Pub. 544. Part that is a charitable contribution. Figure the amount of your charitable contribution in three steps. Step 1. Subtract the amount you received for the property from the property's fair market value at the time of sale. This gives you the fair market value of the contributed part. Step 2. Find the adjusted basis of the con- tributed part. It equals: Adjusted basis of entire property Fair market value of contributed part Fair market value of entire property Publication 526 (2020) Page 13

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Step 3. Determine whether the amount of your charitable contribution is the fair market value of the contributed part (which you found in Step 1) or the adjusted basis of the contributed part (which you found in Step 2). Generally, if the property sold was capital gain property, your charitable contribution is the fair market value of the contributed part. If it was ordinary income property, your charitable contribution is the adjusted basis of the contributed part. See Ordinary Income Property and Capital Gain Property, both earlier, for more information. Example. You sell ordinary income prop- erty with a fair market value of $10,000 to a church for $2,000. Your basis is $4,000 and your adjusted gross income is $20,000. You make no other contributions during the year. The fair market value of the contributed part of the property is $8,000 ($10,000 − $2,000). The adjusted basis of the contributed part is $3,200 ($4,000 × ($8,000 ÷ $10,000)). Because the property is ordinary income property, your char- itable deduction is limited to the adjusted basis of the contributed part. You can deduct $3,200. Penalty You may be liable for a penalty if you overstate the value or adjusted basis of contributed prop- erty. 20% penalty. The penalty is 20% of the amount by which you underpaid your tax be- cause of the overstatement, if: 1. The value or adjusted basis claimed on your return is 150% or more of the correct amount, and 2. You underpaid your tax by more than $5,000 because of the overstatement. 40% penalty. The penalty is 40%, rather than 20%, if: 1. The value or adjusted basis claimed on your return is 200% or more of the correct amount, and 2. You underpaid your tax by more than $5,000 because of the overstatement. 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 ex- plained under How To Figure Your Deduction When Limits Apply, later). This applies whether you use the cash or an accrual method of ac- counting. Time of making contribution. Usually, you make a contribution at the time of its uncondi- tional delivery. Checks. A check you mail to a charity is considered delivered on the date you mail it. Text message. 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. Credit card. Contributions charged on your bank credit card are deductible in the year you make the charge. Pay-by-phone account. Contributions made through a pay-by-phone account are con- sidered delivered on the date the financial insti- tution pays the amount. This date should be shown on the statement the financial institution sends you. Stock certificate. 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. However, if you give a stock certificate to your agent or to the issuing corporation for transfer to the name of the char- ity, your contribution isn't delivered until the date the stock is transferred on the books of the corporation. Promissory note. If you issue and deliver a promissory note to a charity as a contribution, it isn't a contribution until you make the note payments. Option. If you grant a charity an option to buy real property at a bargain price, it isn't a contribution until the charity exercises the op- tion. Borrowed funds. If you contribute bor- rowed funds, you can deduct the contribution in the year you deliver the funds to the charity, re- gardless of when you repay the loan. Conditional gift. If your contribution de- pends on a future act or event to become effec- tive, you can't take a deduction unless there is only a negligible chance the act or event won't take place. If your contribution would be undone by a later act or event, you can't take a deduction un- less there is only a negligible chance the act or event will take place. Example 1. You contribute cash to a local school board, which is a political subdivision of a state, to help build a school gym. The school board will refund the money to you if it doesn't collect enough to build the gym. You can't de- duct your contribution until there is no chance (or only a negligible chance) of a refund. Example 2. You donate land to a city for as long as the city uses it for a public park. The city plans to use the land for a park, and there is no chance (or only a negligible chance) of the land being used for any different purpose. You can deduct your charitable contribution in the year you make the contribution. Limits on Deductions If your total contributions for the year are 20% or less of your adjusted gross income, you don't need to read the rest of this section. The remaining limits discussed in this section don't apply to you. The amount you can deduct for charitable contributions is generally limited to no more than 60% of your adjusted gross income (AGI). Your deduction may be further limited to 50%, 30%, or 20% of your AGI, depending on the TIP type of property you give and the type of organi- zation you give it to. A higher limit applies to certain qualified conservation contributions and qualified cash contributions for 2020. These limits are described in detail in this section. Your AGI is the amount on Form 1040 or 1040-SR, line 11. If your contributions are more than any of the limits that apply, see Carryovers under How To Figure Your Deduction When Limits Apply, later. Out-of-pocket expenses. Amounts you spend performing services for a charitable or- ganization may be deductible as a contribution to a qualified organization. If so, your deduction is subject to the limit applicable to donations to that organization. For example, the 30% limit applies to amounts you spend on behalf of a private nonoperating foundation. Types of Qualified Organizations For the purpose of applying the deduction limits to your charitable contributions, qualified organ- izations can be divided into two categories. First category of qualified organizations (50% limit organizations). The first category includes only the following types of qualified or- ganizations. (These organizations are also sometimes referred to as “50% limit organiza- tions.”) 1. Churches and conventions or associations of churches. 2. Educational organizations with a regular faculty and curriculum that normally have a regularly enrolled student body attend- ing classes on site. 3. Hospitals and certain medical research or- ganizations associated with these hospi- tals. 4. Organizations that are operated only to re- ceive, hold, invest, and administer prop- erty and to make expenditures to or for the benefit of state and municipal colleges and universities and that normally receive substantial support from the United States or any state or their political subdivisions, or from the general public. 5. The United States or any state, the District of Columbia, a U.S. possession (including Puerto Rico), a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that perform substantial government func- tions. 6. Publicly supported charities, defined ear- lier under Qualified Conservation Contri- bution. 7. Organizations that may not qualify as “publicly supported” but that meet other tests showing they respond to the needs of the general public, not a limited number of donors or other persons. They must normally receive more than one-third of their support either from organizations Page 14 Publication 526 (2020)

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described in (1) through (6), or from per- sons other than “disqualified persons.” 8. Most organizations operated or controlled by, and operated for the benefit of, those organizations described in (1) through (7). 9. Private operating foundations. 10. Private nonoperating foundations that make qualifying distributions of 100% of contributions within 21/2 months following the year they receive the contribution. A deduction for charitable contributions to any of these private nonoperating founda- tions must be supported by evidence from the foundation confirming it made the qualifying distributions timely. Attach a copy of this supporting data to your tax re- turn. 11. A private foundation whose contributions are pooled into a common fund, if the foundation would be described in (8) but for the right of substantial contributors to name the public charities that receive con- tributions from the fund. The foundation must distribute the common fund's income within 21/2 months following the tax year in which it was realized and must distribute the corpus not later than 1 year after the donor's death (or after the death of the do- nor's surviving spouse if the spouse can name the recipients of the corpus). You can ask any organization whether it is a 50% limit organization, and most will be able to tell you. Also see How to check whether an or- ganization can receive deductible charitable contributions, earlier. Second category of qualified organizations. The second category includes any type of quali- fied organization that isn’t in the first category. Limits The limit that applies to a contribution depends on the type of property you give and which cate- gory of qualified organization you give it to. The amount of a contribution you can deduct is gen- erally limited to a percentage of your adjusted gross income (AGI), but may be further reduced if you make contributions that are subject to more than one of the limits discussed in this section. Your total deduction of charitable contribu- tions can’t exceed your AGI. If your contribu- tions are subject to more than one of the limits, you include all or part of each contribution in a certain order, carrying over any excess to a subsequent year (if allowed). See How To Fig- ure Your Deduction When Limits Apply and Carryovers, later, for more information about or- dering and carryovers. Limits based on 100% of adjusted gross income There are three 100% limits that may apply to your contributions. Qualified conservation contributions of farmers and ranchers. If you are a qualified farmer or rancher, your deduction for a qualified conservation contribution (QCC) is limited to 100% of your AGI minus your deduction for all other charitable contributions. However, if the donated property is used in agriculture or live- stock production (or is available for such pro- duction), the contribution must be subject to a restriction that the property remain available for such production. If not, the limit is 50%. For more information about applying the 50% limit to a QCC, see Qualified conservation contribu- tions, later, under Limits based on 50% of ad- justed gross income. Qualified farmer or rancher. You are a qualified farmer or rancher if your gross income from the trade or business of farming is more than 50% of your gross income for the year. Qualified cash contributions for 2020. If you make a qualified cash contribution for tax year 2020, your deduction for the cash contribution is limited to 100% of your adjusted gross in- come (AGI) minus your deduction for all other contributions. A qualified cash contribution must meet the following criteria. • It is a charitable contribution paid in cash or by check after December 31, 2019. • It is paid to an organization described ear- lier under First category of qualified organi- zations (50% limit organizations) (other than certain private foundations described in section 509(a)(3)). • The taxpayer elected to have this limitation apply to such contribution. Exception. Qualified contributions don’t in- clude a contribution to a segregated fund or ac- count for which you (or any person you appoint or designate) have or expect to have advisory privileges with respect to distributions or invest- ments based on your contribution. Carryover rule. You can carry over any qualified contributions you aren’t able to deduct in 2020 because of this limit. Qualified contributions for relief efforts for 2018 and 2019 disasters. If you make a quali- fied contribution for relief efforts in a qualified disaster area, your deduction for the qualified contribution is limited to 100% of your adjusted gross income minus your deduction for all other contributions. For purposes of this section, a qualified disaster is a major disaster that was declared before February 19, 2020, by the President under section 401 of the Stafford Act and that occurred in 2018 and before Decem- ber 21, 2019. However, a qualified disaster doesn't include California wildfires in January 2018 (which received special relief). A qualified contribution must meet the fol- lowing criteria. • It is a charitable contribution paid in cash or by check before February 19, 2020. • It is paid to an organization described ear- lier under First category of qualified organi- zations (50% limit organizations)(other than certain private foundations described in section 509(a)(3)). • It is payable for relief efforts in a qualified disaster area described above. • The taxpayer obtains contemporaneous written acknowledgement (within the meaning of section 170(f)(8)) from the or- ganization that such contribution was used for relief efforts. • The taxpayer elected to have qualified dis- aster area tax relief apply to such contribu- tion. Exception. Qualified contributions don’t in- clude a contribution to a segregated fund or ac- count for which you (or any person you appoint or designate) have or expect to have advisory privileges with respect to distributions or invest- ments based on your contribution. Carryover rule. You can carry over any qualified contributions you aren’t able to deduct in 2020 because of this limit. Limit based on 60% of adjusted gross income (AGI) If you make cash contributions during the year to an organization described earlier under First category of qualified organizations (50% limit organizations), and you elect not to treat it as Qualified cash contributions for 2020, your de- duction for the cash contributions is 60% of your AGI. This 60% limit doesn’t apply to noncash charitable contributions. See Noncash contribu- tions to 50% limit organizations, later, if you contribute something other than cash to a 50% limit organization. Example 1. You gave your church a $200 cash contribution that you elected not to treat as Qualified cash contributions for 2020.. The limit based on 60% of AGI will apply to the cash contribution to the church because it is an or- ganization described earlier under First cate- gory of qualified organizations (50% limit organ- izations) and because the contribution was cash. Example 2. You donated clothing to your church with a fair market value of $200. The limit based on 60% of AGI doesn’t apply be- cause the contribution is not cash. Instead, a limit based on 50% of AGI discussed later will apply to the contribution to the church because it is an organization described earlier under First category of qualified organizations (50% limit organizations). “For the use of” contribution exception. A 30% limit applies to cash contributions that are “for the use of” the qualified organizations instead of “to” the qualified organization. A con- tribution is “for the use of” a qualified organiza- tion when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement. See Contributions to the second category of qualified organiztions or “for the use of” any qualified organization, later, under Lim- its based on 30% of adjusted gross income, for more information. Limits based on 50% of adjusted gross income (AGI) There are two 50% limits that may apply to your contributions. Publication 526 (2020) Page 15

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Noncash contributions to 50% limit organi- zations. If you make noncash contributions to organizations described earlier under First cate- gory of qualified organizations (50% limit organ- izations), your deduction for the noncash contri- butions is limited to 50% of your AGI minus your cash contributions subject to the 60% limit. Capital gain property exception. A 30% limit applies to noncash contributions of capital gain property if you figure your deduction using fair market value without reduction for apprecia- tion. See Certain capital gain property contribu- tions to 50% limit organizations, later, under Limits based on 30% of adjusted gross income, for more information. “For the use of” contribution exception. A 20% or 30% limit applies to noncash contribu- tions that are “for the use of” the qualified or- ganization instead of “to” the qualified organiza- tion. A contribution is “for the use of” a qualified organization when it is held in a legally enforce- able trust for the qualified organization or in a similar legal arrangement. If the noncash contri- bution is capital gain property, see Limit based on 20% of adjusted gross income, later, for more information; otherwise, see Contributions to the second category of qualified organiza- tions or “for the use of” any qualified organiza- tion, later, under Limits based on 30% of adjus- ted gross income, for more information. Qualified conservation contributions. Your deduction for qualified conservation contribu- tions (QCCs) is limited to 50% of your AGI mi- nus your deduction for all other charitable con- tributions. If you are a farmer or rancher, go to Qualified conservation contributions of farmers or ranchers, earlier, under Lim- its based on 100% of adjusted gross income, to see if that limit applies to your QCC instead. Limits based on 30% of adjusted gross income (AGI) These are two 30% limits that may apply to your contributions. The 30% limit for capital gain property contributions to a 50% limit organiza- tion is separate from the 30% limit that applies to your other contributions. Both are separately reduced by contributions made to a 50% limit organization, but the amount allowed after ap- plying one of the 30% limits doesn't reduce the amount allowed after applying the other 30% limit. However, as a result of applying the sepa- rate limits, the total contributions subject to a 30% limit will never be more than 50% of your AGI. Example. Your AGI is $50,000. During the year, you gave capital gain property with a fair market value of $15,000 to an organization de- scribed earlier under First category of qualified organizations (50% limit organizations). You don’t choose to reduce the property’s fair mar- ket value by its appreciation in value. You also gave $10,000 cash to a qualified organization that is described earlier under Second category of qualified organizations (meaning it isn’t a 50% limit organization). The $15,000 contribu- tion of capital gain property is subject to one 30% limit and the $10,000 cash contribution is TIP subject to the other 30% limit. The $10,000 cash contribution is fully deductible because the contribution is not more than the smaller of (i) 30% of your AGI ($15,000) and (ii) 50% of your AGI minus all contributions to a 50% limit organ- ization ($25,000 - $15,000 = $10,000). The $15,000 is also fully deductible because the contribution is not more than 30% of your AGI minus all contributions to a 50% limit organiza- tion subject to the 60% or 50% limit (other than qualified conservation contributions) ($25,000 - $10,000 = $15,000). Neither amount is reduced by the other, so the total deductible contribution is $25,000 (which is also not more than $50,000 of your AGI). Contributions to the second category of qualified organizations or “for the use of” any qualified organization. If you make cash contributions or noncash contributions (other than capital gain property) during the year (1) to an organization described earlier under Second category of qualified organizations, or (2) “for the use of” any qualified organization, your de- duction for those contributions is limited to 30% of your AGI, or if less, 50% of your AGI minus all your contributions to 50% limit organizations (other than contributions subject to a 100% limit or qualified conservation contributions). For this purpose, contributions to 50% limit organiza- tions include all capital gain property contribu- tions to a 50% limit organization (other than qualified conservation contributions), even those that are subject to the 30% limit, dis- cussed later. A contribution is “for the use of” a qualified organization when it is held in a legally enforce- able trust for the qualified organization or in a similar legal arrangement. If you make a contribution of capital gain property to an organization other than a 50% limit organization or “for the use of” any qualified organization, see Limit based on 20% of adjus- ted gross income, later. Student living with you. Deductible amounts you spend on behalf of a student living with you are subject to this 30% limit. These amounts are considered a contribution for the use of a qualified organization. See Expenses Paid for Student Living With You, earlier, for more information. Certain capital gain property contributions to 50% limit organizations. Your noncash contributions of capital gain property to 50% limit organizations is limited to 30% of your ad- justed gross income minus all your contribu- tions to 50% limit organizations that are subject to the 60% and 50% limits (other than qualified conservation contributions). The limit that ap- plies to capital gain property contributions to 50% limit organizations doesn’t apply to quali- fied conservation contributions. If you are mak- ing a qualified conservation contribution (QCC), see Qualified conservation contributions and Qualified conservation contributions of farmers and ranchers, earlier, for the limits to apply to a QCC. Election to apply the 50% limit. You may choose the 50% limit for contributions of capital gain property to organizations described earlier under First category of qualified organizations (50% limit organizations) instead of the 30% limit that would otherwise apply. See Capital gain property election, later, under How To Fig- ure Your Deduction When Limits Apply, for more information about making this election and how to adjust the amount of your contribu- tion. Limit based on 20% of adjusted gross income (AGI) If you make noncash contributions of capital gain property during the year (1) to an organiza- tion described earlier under Second category of qualified organizations, or (2) “for the use of” any qualified organization, your deduction for those contributions is limited to 20% of your AGI or, if less, the smallest of the following. 1. 30% of your AGI minus all your contribu- tions that are subject to a limit based on 30% of AGI. 2. 30% of your AGI minus all your capital gain contributions that are subject to the limit based on 30% of AGI. 3. 50% of your AGI minus all contributions subject to the limits based on 60%, 50%, and 30% of AGI (other than qualified con- servation contributions). A contribution is “for the use of” a qualified organization when it is held in a legally enforce- able trust for the qualified organization or in a similar legal arrangement. How To Figure Your Deduction When Limits Apply If your contributions are subject to more than one of the limits discussed earlier, use the fol- lowing steps to figure the amount of your contri- butions that you can deduct. 1. Cash contributions that you elected not to treat as Qualified cash contributions for 2020, subject to the limit based on 60% of adjusted gross income (AGI). Deduct the contributions that don't exceed 60% of your AGI. 2. Noncash contributions (other than quali- fied conservation contributions) subject to the limit based on 50% of AGI. Deduct the contributions that don’t exceed 50% of your AGI minus your cash contributions to a 50% limit organization (other than contri- butions subject to a limit based on 100% of AGI). 3. Cash and noncash contributions (other than capital gain property) subject to the limit based on 30% of AGI. Deduct the contributions that don’t exceed the smaller of: a. 30% of your AGI, or b. 50% of your AGI minus your contribu- tions to a 50% limit organization (other than contributions subject to a limit based on 100% of AGI or qualified conservation contributions), including capital gain property subject to the limit based on 30% of AGI. Page 16 Publication 526 (2020)

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4. Contributions of capital gain property sub- ject to the limit based on 30% of AGI. De- duct the contributions that don’t exceed the smaller of: a. 30% of your AGI, or b. 50% of your AGI minus your contribu- tions subject to the limits based on 60% or 50% of AGI (other than quali- fied conservation contributions). 5. Contributions of capital gain property sub- ject to the limit based on 20% of AGI. De- duct the contributions that don’t exceed the smaller of: a. 20% of your AGI, b. 30% of your AGI minus your contribu- tions of capital gain property subject to the limit based on 30% of AGI, c. 30% of your AGI minus your other contributions subject to the limit based on 30% of AGI, or d. 50% of your AGI minus your contribu- tions subject to the limits based on 60%, 50%, and 30% of AGI (other than qualified conservation contribu- tions). 6. Qualified conservation contributions sub- ject to the limit based on 50% of AGI. De- duct the contributions that don’t exceed 50% of your AGI minus any deductible contributions figured in (1) through (5). 7. Qualified conservation contributions sub- ject to the limit based on 100% of AGI. De- duct the contributions that don't exceed 100% of your AGI minus any deductible contributions figured in (1) through (6). 8. Qualified cash contributions for 2020 plus qualified contributions for relief efforts in a qualified disaster area subject to the limit based on 100% of AGI. Deduct the contri- butions that don't exceed 100% of your AGI minus all your other deductible contri- butions. These steps are incorporated into Work- sheet 2. Example. Your AGI is $50,000. In March, you gave your church $2,000 cash that you elected not to treat as Qualified cash contribu- tions for 2020, and land with a fair market value of $28,000 and a basis of $22,000. You held the land for investment purposes for more than 1 year. You don't make the capital gain property election for this year. See Capital gain property election, later. Therefore, the amount of your charitable contribution for the land would be its fair market value of $28,000. You also gave $5,000 cash to a private nonoperating founda- tion to which the 30% limit applies. The $2,000 cash donated to the church is considered first and is fully deductible. Your contribution to the private nonoperating founda- tion is considered next. Because the total of your cash contribution of $2,000 and your capi- tal gain property of $28,000 to a 50% limit or- ganization ($30,000) is more than $25,000 (50% of $50,000), your contribution to the pri- vate nonoperating foundation isn't deductible for the year. It can be carried over to later years. See Carryovers, later. The contribution of land is considered next. Your deduction for the land is limited to $15,000 (30% × $50,000). The un- used part of the contribution ($13,000) can be carried over. For this year, your deduction is limited to $17,000 ($2,000 + $15,000). Capital gain property election. You may choose the 50% limit for contributions of capital gain property to qualified organizations descri- bed earlier under First category of qualified or- ganizations (50% limit organizations) instead of the 30% limit that would otherwise apply. If you make this choice, you must reduce the fair mar- ket value of the property contributed by the ap- preciation in value that would have been long-term capital gain if the property had been sold. This choice applies to all capital gain prop- erty contributed to 50% limit organizations dur- ing a tax year. It also applies to carryovers of this kind of contribution from an earlier tax year. For details, see Carryover of capital gain prop- erty, later. You must make the choice on your original return or on an amended return filed by the due date for filing the original return. Example. In the previous example, if you choose to have the 50% limit apply to the land (the 30% capital gain property) given to your church, you must reduce the fair market value of the property by the appreciation in value. Therefore, the amount of your charitable contri- bution for the land would be its basis to you of $22,000. You add this amount to the $2,000 cash contributed to the church. You can now deduct $1,000 of the amount donated to the pri- vate nonoperating foundation because the total of your contributions of cash ($2,000) and capi- tal gain property ($22,000) to 50% limit organi- zations is $1,000 less than the limit based on 50% of AGI. Your total deduction for the year is $25,000 ($2,000 cash to your church, $22,000 for property donated to your church, and $1,000 cash to the private nonoperating foundation). You can carry over to later years the part of your contribution to the private nonoperating foundation that you couldn't deduct ($4,000). Instructions for Worksheet 2 You can use Worksheet 2 if you made charita- ble contributions during the year, and one or more of the limits described in this publication under Limits on Deductions apply to you. You can't use this worksheet if you have a carryover of a charitable contribution from an earlier year. If you have a carryover from an earlier year, see Carryovers, later. The following list gives instructions for com- pleting the worksheet. • The terms used in the worksheet are ex- plained earlier in this publication. • If the result on any line is less than zero, enter zero. • For contributions of property, enter the property's fair market value unless you elected (or were required) to reduce the fair market value as explained under Giv- ing Property That Has Increased in Value. In that case, enter the reduced amount. Publication 526 (2020) Page 17

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Worksheet 2. Applying the Deduction Limits Caution: Don’t use this worksheet to figure the contributions you can deduct this year if you have a carryover of a charitable contribution from an earlier year. Step 1. Enter any qualified conservation contributions (QCCs) made during the year. 1. If you are a qualified farmer or rancher, enter any QCCs subject to the limit based on 100% of adjusted gross income (AGI) . . . . . . . . . . . . . . . . . . . 1 2. Enter any QCCs not entered on line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Step 2. Enter your other charitable contributions made during the year. 3. Enter cash contributions that you elect to treat as qualified contributions plus cash contributions payable for relief efforts in qualified disaster areas that you elected to treat as qualified contributions. Don’t include this amount on line 4 below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4. Enter your contributions of capital gain property "for the use of" any qualified organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5. Enter your other contributions "for the use of" any qualified organization. Don't include any contributions you entered on a previous line . . . . . . . . . . . . 5 6. Enter your contributions of capital gain property to qualified organizations that aren't 50% limit organizations. Don't include any contributions you entered on a previous line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7. Enter your other contributions to qualified organizations that aren't 50% limit organizations. Don't include any contributions you entered on a previous line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8. Enter your contributions of capital gain property to 50% limit organizations deducted at fair market value. Don't include any contributions you entered on a previous line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9. Enter your noncash contributions to 50% limit organizations other than capital gain property you deducted at fair market value. Be sure to include contributions of capital gain property to 50% limit organizations if you reduced the property's fair market value. Don't include any contributions you entered on a previous line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10. Enter your cash contributions to 50% limit organizations that you elected not to treat as qualified contributions. Don't include any contributions you entered on a previous line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Step 3. Figure your deduction for the year (if any result is zero or less, enter -0-) 11. Enter your adjusted gross income (AGI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Cash contributions subject to the limit based on 60% of AGI (If line 10 is zero, enter -0- on lines 12 through 14.) 12. Multiply line 11 by 0.6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13. Deductible amount. Enter the smaller of line 10 or line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14. Carryover. Subtract line 13 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Noncash contributions subject to the limit based on 50% of AGI (If line 9 is zero, enter -0- on lines 15 through 18.) 15. Multiply line 11 by 0.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 16. Subtract line 13 from line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17. Deductible amount. Enter the smaller of line 9 or line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18. Carryover. Subtract line 17 from line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Contributions (other than capital gain property) subject to limit based on 30% of AGI (If lines 5 and 7 are both zero, enter -0- on lines 19 through 25.) 19. Multiply line 11 by 0.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 20. Add lines 8, 9, and 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21. Subtract line 20 from line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 22. Multiply line 11 by 0.3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 23. Add lines 5 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 24. Deductible amount. Enter the smallest of line 21, 22, or 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 25. Carryover. Subtract line 24 from line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Contributions of capital gain property subject to limit based on 30% of AGI (If line 8 is zero, enter -0- on lines 26 through 31.) 26. Multiply line 11 by 0.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 27. Add lines 9 and 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 28. Subtract line 27 from line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 29. Multiply line 11 by 0.3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 30. Deductible amount. Enter the smallest of line 8, 28, or 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 31. Carryover. Subtract line 30 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Contributions subject to the limit based on 20% of AGI (If lines 4 and 6 are both zero, enter -0- on lines 32 through 41.) 32. Multiply line 11 by 0.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 33. Add lines 13, 17, 24, and 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 34. Subtract line 33 from line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 35. Multiply line 11 by 0.3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 36. Subtract line 24 from line 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 37. Subtract line 30 from line 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 38. Multiply line 11 by 0.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 39. Add lines 4 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 40. Deductible amount. Enter the smallest of line 34, 36, 37, 38, or 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 41. Carryover. Subtract line 40 from line 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 QCCs subject to limit based on 50% of AGI (If line 2 is zero, enter -0- on lines 42 through 46.) 42. Multiply line 11 by 0.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 43. Add lines 13, 17, 24, 30, and 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 44. Subtract line 43 from line 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 45. Deductible amount. Enter the smaller of line 2 or line 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 46. Carryover. Subtract line 45 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Note: Worksheet 2 continues on the next page. Page 18 Publication 526 (2020)

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Carryovers You can carry over any contributions you can't deduct in the current year because they exceed the limits based on your adjusted gross income (AGI). Except for qualified conservation contri- butions, you may be able to deduct the excess in each of the next 5 years until it is used up, but not beyond that time. A carryover of a qualified conservation con- tribution can be carried forward for 15 years. Contributions you carry over are subject to the same percentage limits in the year to which they are carried. For example, contributions subject to the 20% limit in the year in which they are made are 20% limit contributions in the year to which they are carried. But see Carryover of capital gain property, later. For each category of contributions, you de- duct carryover contributions only after deduct- ing all allowable contributions in that category for the current year. If you have carryovers from 2 or more prior years, use the carryover from the earlier year first. Note. A carryover of a contribution to a 50% limit organization must be used before contribu- tions in the current year to organizations other than 50% limit organizations. See Example 2. Example 1. Last year, you made cash con- tributions of $11,000 to 50% limit organizations. Because of the limit based on 60% of AGI, you deducted only $10,000 and carried over $1,000 to this year. This year, your AGI is $20,000 and you made cash contributions that you elected not to treat as qualified cash contributions for 2020 of $9,500 to 50% limit organizations. The limit based on 60% of AGI applies to your cur- rent year cash contribution of $9,500 and carry- over contribution of $1,000. You can deduct this year’s cash contribution and your carryover cash contribution in full because your total cash contributions of $10,500 ($9,500 + $1,000) is less than $12,000 (60% of $20,000). Example 2. This year, your AGI is $24,000. You make cash contributions of $6,000 that you elected not to treat as qualified cash contribu- tions for 2020, so the 60% limit applies and $3,000 to which the 30% limit applies. You have a contribution carryover from last year of $5,000 for capital gain property contributed to a 50% limit organization and subject to the special 30% limit for contributions of capital gain prop- erty. Your cash contribution of $6,000 is fully de- ductible because it is less than $14,400 (which is 60% of your AGI). The deduction for your 30% limit contribu- tions of $3,000 is limited to $1,000. This is the lesser of: 1. $7,200 (30% of $24,000), or 2. $1,000 ($12,000 minus $11,000). (The $12,000 amount is 50% of $24,000, your AGI. The $11,000 amount is the sum of your current and carryover contributions to 50% limit organizations, $6,000 + $5,000.) The deduction for your $5,000 carryover is subject to the special 30% limit for contributions of capital gain property. This means it is limited to the smaller of: 1. $7,200 (your 30% limit), or 2. $5,000 ($12,000, your 50% limit, minus your allowable cash contributions to which the 60% limit applies ($6,000) and minus your allowable contribution to which the 30% limit applies ($1,000)). Because your $5,000 carryover contribution does not exceed the smaller limit of $5,000, you can deduct it in full. Your deduction is $12,000 ($6,000 + $1,000 + $5,000). You carry over the $2,000 balance of your 30% limit contributions for this year to next year. Carryover of capital gain property. If you carry over contributions of capital gain property subject to the special 30% limit and you choose in the next year to use the 50% limit and take appreciation into account, you must refigure the carryover. Reduce the fair market value of the property by the appreciation and reduce that re- sult by the amount actually deducted in the pre- vious year. Example. Last year, your AGI was $50,000 and you contributed capital gain property val- ued at $27,000 to a 50% limit organization and didn't choose to use the 50% limit. Your basis in the property was $20,000. Your deduction was limited to $15,000 (30% of $50,000), and you carried over $12,000. This year, your AGI is $60,000 and you contribute capital gain prop- erty valued at $25,000 to a 50% limit organiza- tion. Your basis in the property is $24,000 and you choose to use the 50% limit. You must re- figure your carryover as if you had taken appre- ciation into account last year as well as this year. Because the amount of your contribution last year would have been $20,000 (the proper- ty's basis) instead of the $15,000 you actually deducted, your refigured carryover is $5,000 ($20,000 − $15,000). Your total deduction this year is $29,000 (your $24,000 current contribu- tion plus your $5,000 carryover). Additional rules for carryovers. Special rules exist for computing carryovers if you: • Are married in some years but not others, • Have different spouses in different years, • Change from a separate return to a joint re- turn in a later year, • Change from a joint return to a separate re- turn in a later year, • Have a net operating loss, • Claim the standard deduction in a carry- over year, or Worksheet 2—continued

QCCs subject to limit based on 100% of AGI (If line 1 is zero, enter -0- on lines 47 through 51.) 47. Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 48. Add lines 13, 17, 24, 30, 40, and 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 49. Subtract line 48 from line 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 50. Deductible amount. Enter the smaller of line 1 or line 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 51. Carryover. Subtract line 50 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Qualified cash contributions for 2020 and qualified contributions for certain disaster relief efforts (If line 3 is zero, enter -0- on lines 52 through 56.) 52. Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 53. Add lines 13, 17, 24, 30, 40, 45, and 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 54. Subtract line 53 from line 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 55. Deductible amount. Enter the smaller of line 3 or line 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 56. Carryover. Subtract line 55 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Deduction for the year 57. Add lines 13, 17, 24, 30, 40, 45, 50, and 55. Enter the total here and include the deductible amounts on Schedule A (Form 1040), line 11 or line 12, whichever is appropriate. Also, enter the amount from line 55 on the dotted line next to the line 11 entry space . . . . . . . . . 57 Note. Any amounts in the carryover column are not deductible this year but can be carried over to next year. See Carryovers, later, for more information about how you will use them next year. Publication 526 (2020) Page 19

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• Become a widow or widower. Because of their complexity and the limited number of taxpayers to whom these additional rules apply, they aren't discussed in this publi- cation. If you need to figure a carryover and you are in one of these situations, you may want to consult with a tax practitioner. Substantiation Requirements You must keep records to prove the amount of the contributions you make during the year. 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. Note. An organization must generally 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. (See Contributions From Which You Benefit un- der Contributions You Can Deduct, earlier.) Keep the statement for your records. It may sat- isfy all or part of the recordkeeping require- ments explained in the following discussions. Cash Contributions Cash contributions include payments made by cash, check, electronic funds transfer, online payment service, debit card, credit card, payroll deduction, or a transfer of a gift card redeema- ble for cash. You can't deduct a cash contribution, re- gardless of the amount, unless you keep one of the following. 1. A bank record that shows the name of the qualified organization, the date of the con- tribution, and the amount of the contribu- tion. Bank records may include: a. A canceled check. b. A bank or credit union statement. c. A credit card statement. d. An electronic fund transfer receipt. e. A scanned image of both sides of a canceled check obtained from a bank or credit union website. 2. A receipt (or a letter or other written com- munication such as an email) from the qualified organization showing the name of the organization, the date of the contri- bution, and the amount of the contribution. 3. The payroll deduction records described next. Payroll deductions. If you make a contribu- tion by payroll deduction, you must keep: 1. A pay stub, Form W-2, or other document furnished by your employer that shows the date and amount of the contribution; and 2. A pledge card or other document prepared by or for the qualified organization that shows the name of the organization and states the organization doesn’t provide goods or services in return for any contri- bution made to it by payroll deduction. If your employer withheld $250 or more from a single paycheck, see Contributions of $250 or More next. Contributions of $250 or More You can claim a deduction for a contribution of $250 or more only if you have a contemporane- ous written acknowledgment of your contribu- tion from the qualified organization or certain payroll deduction records. See Contemporane- ous written acknowledgement, later, for a de- scription of when a written acknowledgement is considered “contemporaneous” with your con- tribution. If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledg- ment that lists each contribution and the date of each contribution and shows your total contri- butions. Amount of contribution. In figuring whether your contribution is $250 or more, don't com- bine separate contributions. For example, if you gave your church $25 each week, your weekly payments don't have to be combined. Each payment is a separate contribution. If contributions are made by payroll deduc- tion, the deduction from each paycheck is trea- ted as a separate contribution. 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. Acknowledgment. The acknowledgment must meet these tests. 1. It must be written. 2. It must include: a. The amount of cash you contributed, b. Whether the qualified organization gave you any goods or services as a result of your contribution (other than certain token items and membership benefits), c. A description and good faith estimate of the value of any goods or services described in (b). If the only benefit you received was an intangible religious benefit (such as admission to a reli- gious ceremony) that generally isn’t sold in a commercial transaction out- side the donative context, the ac- knowledgement must say so and doesn’t need to describe or estimate the value of the benefit. If the acknowledgment doesn't 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. If the acknowledgment shows the date of the contri- bution and meets the other tests just described, you don't need any other records. Contemporaneous written acknowledg- ment. Organizations typically send written ac- knowledgements to donors no later than Janu- ary 31 of the year following the donation. For the written acknowledgement to be considered contemporaneous with the contribution it must meet both of the following requirements. 1. Meet all the tests described under Ac- knowledgment, earlier; and 2. You must get it on or before the earlier of: a. The date you file your return for the year you make the contribution; or b. The due date, including extensions, for filing the return. Payroll deductions. If you make a contribu- tion by payroll deduction and your employer withholds $250 or more from a single paycheck, you must keep: 1. A pay stub, Form W-2, or other document furnished by your employer that shows the amount withheld as a contribution; and 2. A pledge card or other document prepared by or for the qualified organization that shows the name of the organization and states the organization doesn't provide goods or services in return for any contri- bution made to it by payroll deduction. A single pledge card may be kept for all contri- butions made by payroll deduction regardless of amount as long as it contains all the required information. If the pay stub, Form W-2, pledge card, or other document doesn't show the date of the contribution, you must have another document that does show the date of the contribution. If the pay stub, Form W-2, pledge card, or other document shows the date of the contribution, you don't need any other records except those just described in (1) and (2). Noncash Contributions Substantiation requirements for contributions not made in cash depend on whether your de- duction for the contribution is: 1. Less than $250, 2. At least $250 but not more than $500, 3. Over $500 but not more than $5,000, or 4. Over $5,000. The substantiation requirements for non- cash contributions of more than $500 also apply to any return filed for any carryover year. Amount of deduction. In figuring whether your deduction is $500 or more, combine your claimed deductions for all similar items of prop- erty donated to any qualified organization dur- ing the year. 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. If you Page 20 Publication 526 (2020)

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figure your deduction by reducing the fair mar- ket value of the donated property by its appreci- ation, as described earlier in Giving Property That Has Increased in Value, your contribution is the reduced amount. Deductions of Less Than $250 Except as provided below, no deduction will be allowed for a noncash contribution of less than $250 unless you get and keep a receipt from the qualified organization showing: 1. The name and address of the qualified or- ganization to which you contributed; 2. The date and location of the charitable contribution; 3. A description of the property in sufficient detail under the circumstances (taking into account the value of the property) for a person not generally familiar with the type of property to understand that the descrip- tion is of the contributed property; and 4. For a security, the name of the issuer, the type of security, and whether it is publicly traded as of the date of the contribution. For example, a security is generally con- sidered to be publicly traded if the security is (a) listed on a recognized stock ex- change whose quotations are published daily, (b) regularly traded on a national or regional over-the-counter market, or (c) quoted daily in a national newspaper of general circulation in the case of mutual fund shares. A letter or other written communication from the qualified organization acknowledging receipt of the contribution and containing the information in (1), (2), (3), and (4) will serve as a receipt. If it is impractical to get a receipt (for exam- ple, if you leave property at a charity’s unatten- ded drop site), you may satisfy the substantia- tion requirements by maintaining reliable written records for each item of the donated property. Your reliable written records must include the following information. 1. The information in (1), (2), (3), and (4) above. 2. If you claim a deduction for clothing or a household item, a description of the condi- tion of the clothing or item. 3. The fair market value of the property at the time of the contribution and how you fig- ured the fair market value. 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 contri- bution, you must get and keep a contemporane- ous written acknowledgment of your contribu- tion from the qualified organization. If you made more than one contribution of $250 or more, you must have either a separate acknowledg- ment for each or one acknowledgment that shows your total contributions. See Contempo- raneous written acknowledgement, earlier, for a description of when a written acknowledgement is considered “contemporaneous” with your contribution. The acknowledgment must: 1. Be written. 2. Include: a. A description (but not necessarily the value) of any property you contrib- uted, b. 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 c. A description and good faith estimate of the value of any goods or services described in (b). If the only benefit you received was an intangible religious benefit (such as admission to a reli- gious ceremony) that generally isn't sold in a commercial transaction out- side the donative context, the ac- knowledgment must say so and doesn't need to describe or estimate the value of the benefit. 3. Be received by you on or before the earlier of: a. The date you file your return for the year you make the contribution, or b. The due date, including extensions, for filing the return. Deductions Over $500 but Not Over $5,000 If you claim a deduction over $500 but not over $5,000 for a noncash charitable contribution, you must complete Form 8283 and have the Contemporaneous written acknowledgment (defined earlier). Your completed Form 8283 must include: 1. Your name and taxpayer identification number, 2. The name and address of the qualified or- ganization, 3. The date of the charitable contribution, and 4. The following information about the con- tributed property: a. A description of the property in suffi- cient detail under the circumstances (taking into account the value of the property) for a person not generally familiar with the type of property to un- derstand that the description is of the contributed property; b. The fair market value of the property on the contribution date and the method used in figuring the fair mar- ket value; c. In the case of real or tangible prop- erty, its condition; d. In the case of tangible personal prop- erty, whether the donee has certified it for a use related to the purpose or function constituting the donee’s ba- sis for exemption under Section 501 of the Internal Revenue Code or, in the case of a governmental unit, an exclusively public purpose; e. In the case of securities, the name of the issuer, the type of securities, and whether they were publicly traded as of the date of the contribution; f. How you got the property, for exam- ple, by purchase, gift, bequest, inheri- tance, or exchange; g. The approximate date you got the property or, if created, produced, or manufactured by or for you, the ap- proximate date the property was sub- stantially completed; and h. The cost or other basis, and any ad- justments to the basis, of property held less than 12 months and, if avail- able, the cost or other basis of prop- erty held 12 months or more. This re- quirement, however, doesn't apply to publicly traded securities. Deductions Over $5,000 If you claim a deduction of over $5,000 for a noncash charitable contribution, you must have the Contemporaneous written acknowledgment (defined earlier), obtain a qualified written ap- praisal of the donated property from a qualified appraiser, and complete Form 8283. A qualified appraisal is not required for contributions of qualified vehicles for which you obtain a con- temporaneous written acknowledgement, cer- tain inventory, publicly traded securities, or cer- tain intellectual property. See Deductions of More Than $5,000 in Pub. 561 for more infor- mation. In addition to, or in lieu of, the items descri- bed in Deductions Over $500 but Not Over $5,000 earlier, your completed Form 8283 must include: 1. The qualified organization’s taxpayer iden- tification number, signature, the date signed by the qualified organization, and the date the qualified organization re- ceived the property; 2. The appraiser’s name, address, taxpayer identification number, appraiser declara- tion, signature, and the date signed by the appraiser; and 3. The following additional information about the contributed property: a. The fair market value on the valuation effective date; and b. A statement explaining whether the charitable contribution was made by means of a bargain sale and, if so, the amount of any consideration received for the contribution. Note. The appraiser declaration must in- clude the following statement: “I understand that my appraisal will be used in connection with a return or claim for refund. I also under- stand that, if there is a substantial or gross Publication 526 (2020) Page 21

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valuation misstatement of the value of the prop- erty claimed on the return or claim for refund that is based on my appraisal, I may be subject to a penalty under section 6695A of the Internal Revenue Code, as well as other applicable pen- alties. I affirm that I have not been at any time in the 3-year period ending on the date of the ap- praisal barred from presenting evidence or testi- mony before the Department of the Treasury or the Internal Revenue Service pursuant to 31 U.S.C. 330(c).” Qualified Conservation Contribution If the contribution was a qualified conservation contribution, your records must also include the fair market value of the underlying property be- fore and after the contribution and the conser- vation purpose furthered by the contribution. For more information, see Qualified Conser- vation Contribution, earlier, and in Pub. 561. Out-of-Pocket Expenses If you give services to a qualified organization and have unreimbursed out-of-pocket expen- ses, considered separately, of $250 or more (for example, you pay $250 for an airline ticket to attend a convention of a qualified organiza- tion as a chosen representative), related to those services, the following two rules apply. 1. You must have adequate records to prove the amount of the expenses. 2. You must get an acknowledgment from the qualified organization that contains: a. A description of the services you pro- vided, b. A statement of whether or not the or- ganization provided you any goods or services to reimburse you for the ex- penses you incurred, c. A description and a good faith esti- mate of the value of any goods or services (other than intangible reli- gious benefits) provided to reimburse you, and d. A statement that the only benefit you received was an intangible religious benefit, if that was the case. The ac- knowledgment doesn't need to de- scribe or estimate the value of an in- tangible religious benefit (defined earlier under Acknowledgment). You must get the acknowledgment on or before the earlier of: 1. The date you file your return for the year you make the contribution, or 2. The due date, including extensions, for fil- ing the return. Car expenses. 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. Whether your records are considered reliable depends on all the facts and circumstances. Generally, they may be considered reliable if you made them regularly and at or near the time you had the ex- penses. For example, your records might show the name of the organization you were serving and the dates you used your car for a charitable pur- pose. 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. If you deduct your actual expenses, your records must show the costs of operating the car that are directly related to a charitable purpose. See Car expenses under Out-of-Pocket Ex- penses in Giving Services, earlier, for the ex- penses you can deduct. How To Report Report your charitable contributions on Sched- ule A (Form 1040), lines 11 through 14. If you made noncash contributions, you may also be required to fill out parts of Form 8283. See Noncash contributions, later. Cash contributions and out-of-pocket ex- penses. Enter your cash contributions, includ- ing out-of-pocket expenses, on Schedule A (Form 1040), line 11. Reporting expenses for student living with you. If you claim amounts paid for a stu- dent who lives with you, as described earlier un- der Expenses Paid for Student Living With You, you must submit with your return: 1. A copy of your agreement with the organi- zation sponsoring the student placed in your household, 2. A summary of the various items you paid to maintain the student, and 3. A statement that gives: a. The date the student became a mem- ber of your household, b. The dates of his or her full-time at- tendance at school, and c. The name and location of the school. Noncash contributions. Enter your noncash contributions on Schedule A (Form 1040), line 12. Total deduction over $500. If your total deduction for all noncash contributions for the year is over $500, you must complete Form 8283 and attach it to your Form 1040 or 1040-SR. Use Section A of Form 8283 to report noncash contributions for which you claimed a deduction of $5,000 or less per item (or group of similar items). Also use Section A to report contributions of publicly traded securities. See Deduction over $5,000 next, for the items you must report on Section B. The IRS may disallow your deduction for noncash charitable contributions if it is more than $500 and you don't submit Form 8283 with your return. Deduction over $5,000. You must com- plete Section B of Form 8283 for each item or group of similar items for which you claim a de- duction of over $5,000. (However, if you con- tributed publicly traded securities, complete Section A instead.) In figuring whether your de- duction for a group of similar items was more than $5,000, consider all items in the group, even if items in the group were donated to more than one organization. However, you must file a separate Form 8283, Section B, for each organ- ization. The organization that received the prop- erty must complete and sign Part IV of Sec- tion B. Vehicle donations. If you donated a car, boat, airplane, or other vehicle, you may have to attach a copy of Form 1098-C (or other state- ment) to your return. For details, see Cars, Boats, and Airplanes, earlier. Clothing and household items not in good used condition. You must include with your return a Qualified appraisal, which is pre- pared by a Qualified appraiser, of any single do- nated item of clothing or any donated house- hold item that isn't in good used condition or better and for which you deduct more than $500. See Clothing and Household Items, ear- lier. Qualified appraisal. A qualified appraisal is an appraisal document that: • Is made, signed, and dated by a qualified appraiser (defined later) in accordance with generally accepted appraisal stand- ards; • Meets the relevant requirements of Regu- lations section 1.170A-17(a); • Has a valuation effective date no earlier than 60 days before the date of the contri- bution and no later than the date of the contribution. For an appraisal report dated on or after the date of the contribution, the valuation effective date must be the date of the contribution; and • Does not involve a prohibited appraisal fee. You must receive the qualified appraisal be- fore the due date, including extensions, of the return on which a charitable contribution deduc- tion is first claimed for the donated property. If the deduction is first claimed on an amended return, the qualified appraisal must be received before the date on which the amended return is filed. Qualified appraiser. A qualified appraiser is an individual with verifiable education and ex- perience in valuing the type of property for which the appraisal is performed. 1. The individual: a. Has earned an appraisal designation from a generally recognized profes- sional appraiser organization, or b. Has met certain minimum education requirements and 2 or more years of experience. To meet the minimum ed- ucation requirement, the individual must have successfully completed professional or college-level course- work obtained from: i. A professional or college-level educational organization, Page 22 Publication 526 (2020)

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ii. A professional trade or appraiser organization that regularly offers educational programs in valuing the type of property, or iii. An employer as part of an em- ployee apprenticeship or educa- tion program similar to professio- nal or college-level courses. 2. The individual regularly prepares apprais- als for which he or she is paid. 3. The individual is not an excluded individ- ual. See Pub. 561 for more information. Easement on building in historic district. If you claim a deduction for a qualified conser- vation contribution for an easement on the exte- rior of a building in a registered historic district, you must include a qualified appraisal (defined earlier), photographs, and certain other informa- tion with your return. See Qualified Conserva- tion Contribution, earlier. Deduction over $500,000. If you claim a deduction of more than $500,000 for a contribu- tion of property, you must attach a Qualified ap- praisal, which is prepared by a Qualified ap- praiser, of the property to your return. This doesn't apply to contributions of cash, qualified vehicles for which you obtained a contempora- neous written acknowledgement, certain inven- tory, publicly traded securities, or intellectual property. See Regulations section 1.170A-16(e) (2). In figuring whether your deduction is over $500,000, combine the claimed deductions for all similar items donated to any qualified organi- zation during the year. If you don't attach the appraisal, you can't deduct your contribution, unless your failure to attach it is due to reasonable cause and not to willful neglect. Form 8282. An organization must file Form 8282 if, within 3 years of receiving property for which it was required to sign a Form 8283, it sells, exchanges, consumes, or otherwise dis- poses of the property. The organization must also send you a copy of the form. However, the organization need not file Form 8282 to report the sale of an item if you signed a statement on Section B of Form 8283 stating that the ap- praised value of the item, or a specific item within a group of similar items, was $500 or less. For this purpose, all shares of nonpublicly traded stock or securities, or items that form a set (such as a collection of books written by the same author or a group of place settings), are considered to be one item. How To Get Tax Help If you have questions about a tax issue, need help preparing your tax return, or want to down- load free publications, forms, or instructions, go to IRS.gov and find resources that can help you right away. Preparing and filing your tax return. After receiving all your wage and earnings state- ments (Form W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return. Free options for tax preparation. Go to IRS.gov to see your options for preparing and filing your return online or in your local commun- ity, if you qualify, which include the following. • Free File. This program lets you prepare and file your federal individual income tax return for free using brand-name tax-prep- aration-and-filing software or Free File filla- ble forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or payment options. • VITA. The Volunteer Income Tax Assis- tance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-Eng- lish-speaking taxpayers who need help preparing their own tax returns. Go to IRS.gov/VITA, download the free IRS2Go app, or call 800-906-9887 for information on free tax return preparation. • TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help to all taxpayers, particularly those who are 60 year of age and older. TCE volunteers spe- cialize in answering questions about pen- sions and retirement-related issues unique to seniors. Go to IRS.gov/TCE, download the free IRS2Go app, or call 888-227-7669 for information on free tax return prepara- tion. • MilTax. Members of the U.S. Armed Forces and qualified veterans may use Mil- Tax, a free tax service offered by the De- partment of Defense through Military One- Source. Also, the IRS offers Free Fillable Forms, which can be completed online and then filed electronically regardless of income. Using online tools to help prepare your re- turn. Go to IRS.gov/Tools for the following. • The Earned Income Tax Credit Assistant (IRS.gov/EITCAssistant) determines if you’re eligible for the earned income credit (EIC). • The Online EIN Application (IRS.gov/EIN) helps you get an employer identification number (EIN). • The Tax Withholding Estimator (IRS.gov/ W4app) makes it easier for everyone to pay the correct amount of tax during the year. The tool is a convenient, online way to check and tailor your withholding. It’s more user-friendly for taxpayers, including retirees and self-employed individuals. The features include the following. – Easy to understand language. – The ability to switch between screens, correct previous entries, and skip screens that don’t apply. – Tips and links to help you determine if you qualify for tax credits and deduc- tions. – A progress tracker. – A self-employment tax feature. – Automatic calculation of taxable social security benefits. • The First Time Homebuyer Credit Account Look-up (IRS.gov/HomeBuyer) tool pro- vides information on your repayments and account balance. • The Sales Tax Deduction Calculator (IRS.gov/SalesTax) figures the amount you can claim if you itemize deductions on Schedule A (Form 1040). Getting answers to your tax ques- tions. On IRS.gov, you can get up-to-date information on current events and changes in tax law. • IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions. • IRS.gov/ITA: The Interactive Tax Assistant, a tool that will ask you questions on a num- ber of tax law topics and provide answers. • IRS.gov/Forms: Find forms, instructions, and publications. You will find details on 2020 tax changes and hundreds of interac- tive links to help you find answers to your questions. • You may also be able to access tax law in- formation in your electronic filing software. Need someone to prepare your tax return? There are various types of tax return preparers, including tax return preparers, enrolled agents, certified public accountants (CPAs), attorneys, and many others who don’t have professional credentials. If you choose to have someone preparer your tax return, chose that preparer wisely. A paid tax preparer is: • Primarily responsible for the overall sub- stantive accuracy of your return, • Required to sign the return, and • Required to include their preparer tax iden- tification number (PTIN). Although the tax preparer always signs the return, you’re ultimately responsible for provid- ing all the information required for the preparer to accurately prepare your return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more information on how to choose a tax pre- parer, go to Tips for Choosing a Tax Preparer on IRS.gov. Coronavirus. Go to IRS.gov/Coronavirus for links to information on the impact of the corona- virus, as well as tax relief available for individu- als and families, small and large businesses, and tax-exempt organizations. Tax reform. Tax reform legislation affects indi- viduals, businesses, and tax-exempt and gov- ernment entities. Go to IRS.gov/TaxReform for information and updates on how this legislation affects your taxes. Employers can register to use Business Services Online. The Social Security Adminis- tration (SSA) offers online service at SSA.gov/ employer for fast, free, and secure online W-2 Publication 526 (2020) Page 23

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filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement, and Form W-2c, Corrected Wage and Tax Statement. IRS social media. Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are paramount. We use these tools to share public information with you. Don’t post your SSN or other confidential information on social media sites. Always protect your identity when using any social networking site. The following IRS YouTube channels pro- vide short, informative videos on various tax-re- lated topics in English, Spanish, and ASL. • Youtube.com/irsvideos. • Youtube.com/irsvideosmultilingua. • Youtube.com/irsvideosASL. Watching IRS videos. The IRS Video portal (IRSVideos.gov) contains video and audio pre- sentations for individuals, small businesses, and tax professionals. Online tax information in other languages. You can find information on IRS.gov/ MyLanguage if English isn’t your native lan- guage. Free interpreter service. Multilingual assis- tance, provided by the IRS, is available at Tax- payer Assistance Centers (TACs) and other IRS offices. Over-the-phone interpreter service is accessible in more than 350 languages. Getting tax forms and publications. Go to IRS.gov/Forms to view, download, or print all of the forms, instructions, and publications you may need. You can also download and view popular tax publications and instructions (in- cluding the Instructions for Forms 1040 and 1040-SR) on mobile devices as an eBook at IRS.gov/eBooks. Or you can go to IRS.gov/ OrderForms to place an order. Access your online account (individual tax- payers only). Go to IRS.gov/Account to se- curely access information about your federal tax account. • View the amount you owe, pay online, or set up an online payment agreement. • Access your tax records online. • Review your payment history. • Go to IRS.gov/SecureAccess to review the required identity authentication process. Using direct deposit. The fastest way to re- ceive a tax refund is to file electronically and choose direct deposit, which securely and elec- tronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their re- funds. The IRS issues more than 90% of re- funds in less than 21 days. Getting a transcript of your return. The quickest way to get a copy of your tax transcript is to go to IRS.gov/Transcripts. Click on either “Get Transcript Online” or “Get Transcript by Mail” to order a free copy of your transcript. If you prefer, you can order your transcript by call- ing 800-908-9946. Reporting and resolving your tax-related identity theft issues. • Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be af- fected if your SSN is used to file a fraudu- lent return or to claim a refund or credit. • The IRS doesn’t initiate contact with tax- payers by email, text messages, telephone calls, or social media channels to request personal or financial information. This in- cludes requests for personal identification numbers (PINs), passwords, or similar in- formation for credit cards, banks, or other financial accounts. • Go to IRS.gov/IdentityTheft, the IRS Iden- tity Theft Central webpage, for information on identity theft and data security protec- tion for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take. • Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to eli- gible taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax re- turn with your SSN. To learn more, go to IRS.gov/IPPIN. Checking on the status of your refund. • Go to IRS.gov/Refunds. • The IRS can’t issue refunds before mid-February 2021 for returns that claimed the EIC or the additional child tax credit (ACTC). This applies to the entire refund, not just the portion associated with these credits. • Download the official IRS2Go app to your mobile device to check your refund status. • Call the automated refund hotline at 800-829-1954. Making a tax payment. The IRS uses the lat- est encryption technology to ensure your elec- tronic payments are safe and secure. You can make electronic payments online, by phone, and from a mobile device using the IRS2Go app. Paying electronically is quick, easy, and faster than mailing in a check or money order. Go to IRS.gov/Payments for information on how to make a payment using any of the following options. • IRS Direct Pay: Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you. • Debit or Credit Card: Choose an approved payment processor to pay online, by phone, or by mobile device. • Electronic Funds Withdrawal: Offered only when filing your federal taxes using tax re- turn preparation software or through a tax professional. • Electronic Federal Tax Payment System: Best option for businesses. Enrollment is required. • Check or Money Order: Mail your payment to the address listed on the notice or in- structions. • Cash: You may be able to pay your taxes with cash at a participating retail store. • Same-Day Wire: You may be able to do same-day wire from your financial institu- tion. Contact your financial institution for availability, cost, and cut-off times. What if I can’t pay now? Go to IRS.gov/ Payments for more information about your op- tions. • Apply for an online payment agreement (IRS.gov/OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive imme- diate notification of whether your agree- ment has been approved. • Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compro- mise program, go to IRS.gov/OIC. Filing an amended return. You can now file Form 1040-X electronically with tax filing soft- ware to amend 2019 Forms 1040 and 1040-SR. To do so, you must have e-filed your original 2019 return. Amended returns for all prior years must be mailed. See Tips for taxpayers who need to file an amended tax return and go to IRS.gov/Form1040X for information and up- dates. Checking the status of your amended re- turn. Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns. Please note that it can take up to 3 weeks from the date you filed your amended return for it to show up in our system, and processing it can take up to 16 weeks. Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter. Contacting your local IRS office. Keep in mind, many questions can be answered on IRS.gov without visiting an IRS Taxpayer Assis- tance Center (TAC). Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, IRS TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Be- fore you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Lo- cal Offices.” The Taxpayer Advocate Service (TAS) Is Here To Help You What Is TAS? TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer Page 24 Publication 526 (2020)

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rights. Their job is to ensure that every taxpayer is treated fairly and that you know and under- stand your rights under the Taxpayer Bill of Rights. How Can You Learn About Your Taxpayer Rights? The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them. What Can TAS Do For You? TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do every- thing possible to resolve your issue. TAS can help you if: • Your problem is causing financial difficulty for you, your family, or your business; • You face (or your business is facing) an immediate threat of adverse action; or • You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised. How Can You Reach TAS? TAS has offices in every state, the District of Columbia, and Puerto Rico. Your local advo- cate’s number is in your local directory and at TaxpayerAdvocate.IRS.gov/Contact-Us. You can also call them at 877-777-4778. How Else Does TAS Help Taxpayers? TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to them at IRS.gov/SAMS. TAS for Tax Professionals TAS can provide a variety of information for tax professionals, including tax law updates and guidance, TAS programs, and ways to let TAS know about systemic problems you’ve seen in your practice. Low Income Taxpayer Clinics (LITCs) LITCs are independent from the IRS. LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, clinics can pro- vide information about taxpayer rights and re- sponsibilities in different languages for individu- als who speak English as a second language. Services are offered for free or a small fee for eligible taxpayers. To find a clinic near you, visit TaxpayerAdvocate.IRS.gov/about/LITC or see IRS Pub. 4134, Low Income Taxpayer Clinic List. Publication 526 (2020) Page 25

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To help us develop a more useful index, please let us know if you have ideas for index entries. See “Comments and Suggestions” in the “Introduction” for the ways you can reach us. Index

A Acknowledgment 20 Contemporaneous 20 Adoption expenses 8 Airplanes, donations of 8 Appraisal fees 8 Assistance (See Tax help) B Bargain sales 13 Blood donated 8 Boats, donations of 8 Boats, fair market value 11 C Canadian charity 3 Capital gain property 12 Car expenses 6, 22 Carryovers 19 Cars, donations of 8 Cash contributions, substantiation requirements 20 Charity benefit events 4 Church deacon 6 Clothing: Fair market value of 11 Contributions from which you benefit 4, 7 Contributions of property 8 Contributions subject to special rules: Car, boat, or airplane: 1098–C 8 Clothing 8 Fractional interest in tangible personal property 8 Future interest in tangible personal property 8 Household items 8 Inventory from your business 8 Partial interest in property 8 Patent or other intellectual property 8 Property subject to a debt 8 Qualified conservation contribution 8 Taxidermy property 8 Contributions to nonqualified organizations: Foreign organizations 7 Contributions you can deduct 3 Conventions of a qualified organization 6 D Daily allowance (per diem) from a charitable organization 6 Deduction limits 14 Determining fair market value 11 Disaster relief 1 Donor-advised funds 8 E Easement 10 F Food inventory 13 Foreign organizations: Canadian 3 Israeli 3 Mexican 3 Form: 8282 23 8283 22 Foster parents 6 Future interests in property 10 H Historic building 10 Household items: Fair market value of 11 How to report 22 Noncash contributions 22 I Introduction 2 Inventory 13 Israeli charity 3 L Legislation, influencing 7 Limit on itemized deductions 1 Limits on deductions 14 Calculation 16 M Meals 8 Membership fees or dues 4 Mexican charity 3 Motor vehicles, donations of 8 Motor vehicles, fair market value 11 N Noncash contributions 20 How to report 22 Substantiation requirements 20 Nondeductible contributions 7 O Ordinary income property 12 Out-of-pocket expenses 14 Out-of-pocket expenses in giving services 5 P Payroll deductions 20 Penalty, valuation overstatement 14 Personal expenses 8 Private foundation 15 Private nonoperating foundation 12, 15 Private operating foundation 15 Property: Bargain sales 13 Basis 12 Capital gain 12 Capital gain election 17 Decreased in value 12 Future interests 10 Increased in value 12 Inventory 13 Ordinary income 12 Unrelated use 12 Publications (See Tax help) Q Qualified appraisal 22 Qualified appraiser 22 Qualified charitable distributions 7 Qualified organizations: Foreign qualified organizations: Canadian 2 Israeli 2 Mexican 2 Types 2 R Raffle or bingo 7 Recapture: No exempt use 13 Recapture of deduction of fractional interest in tangible personal property: Additional tax 10 Reminders: Disaster relief 1 Reporting 22 Retirement home 7 S Services, value of 8 Split-dollar insurance arrangements 7 Student 5 Exchange program 5 Student living with you 5, 22 Substantiation requirements 20 T Tangible personal property: Future interest in 10 Tax help 23 Time, value of 8 Token items 4 Travel expenses 6 Travel expenses for charitable services 6 Tuition 7 U Underprivileged youths 6 Uniforms 6 Unrelated use 12 V Volunteers 6 W Whaling captain 6 When to deduct 14 Page 26 Publication 526 (2020)

(p972)Publication 972 (2020), Child Tax Credit and Credit for Other Dependents#

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Department of the Treasury Internal Revenue Service Publication 972 Cat. No. 26584R — OMB No. 1545-0074 Child Tax Credit and Credit for Other Dependents For use in preparing 2020 Returns Get forms and other information faster and easier at: • IRS.gov (English) • IRS.gov/Spanish (Español) • IRS.gov/Chinese (中文) • IRS.gov/Korean (한국어) • IRS.gov/Russian (Pусский) • IRS.gov/Vietnamese (TiếngViệt) Future Developments For the latest information about developments related to Pub. 972, such as legislation enacted after it was published, go to IRS.gov/Pub972. What’s New Election to use 2019 earned income to figure 2020 additional child tax credit. Recent legislation provided an election to use your 2019 earned income to figure your 2020 additional child tax credit. For more information, see the Instructions for Form 8812. Reminders Abbreviations used throughout this publication. The following abbreviations will be used in this publication when appropriate. • ACTC means additional child tax credit. • ATIN means adoption taxpayer identification number. • CTC means child tax credit. • ITIN means individual taxpayer identification number. • ODC means credit for other dependents. • SSN means social security number. • TIN means taxpayer identification number. Other abbreviations may be used in this publication and will be defined as needed. Delayed refund for returns claiming the EIC or ACTC. The IRS cannot issue refunds before mid-February 2021 for returns that properly claim the earned income credit (EIC) or the ACTC. This time frame applies to the entire refund, not just the portion associated with these credits. Photographs of missing children. The Internal Reve- nue Service is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) or visiting www.missingkids.org if you recognize a child. Introduction This publication has worksheets for figuring the CTC and ODC. It also has a worksheet for figuring earned income. These worksheets are intended primarily for individuals sent to this publication by the instructions to Form 1040, 1040-SR, or 1040-NR, or Schedule 8812. Anyone can choose to use the worksheets in this publication, but most Jan 11, 2021

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individuals can use a simpler worksheet in their tax return instructions. If you were sent here from your Instructions for Forms 1040 and 1040-SR, or your Instructions for Form 1040-NR. Start with the Child Tax Credit and Credit for Other Dependents Worksheet later in this publi- cation. If you were sent here from your Instructions for Schedule 8812. Complete the Earned Income Work- sheet later in this publication. You only need to complete the other worksheets in this publication if you also were sent here from the Instructions for Forms 1040 and 1040-SR, or the Instructions for Form 1040-NR. (If you are required to use this worksheet to figure earned income, be sure to follow the special instructions under the asterisk in the worksheet about attaching a Schedule SE to your re- turn if those instructions apply to you.) If you have not read your Instructions for Forms 1040 and 1040-SR, or your Instructions for Form 1040-NR. Read the explanation of who must use this publication next. If you find that you are not required to use this publication to figure your CTC and ODC, you can use the simpler worksheet in the Instructions for Forms 1040 and 1040-SR, or the Instructions for Form 1040-NR, to figure these credits. Who must use this publication. If you answer “Yes” to either of the following questions, you must use this publi- cation to figure your CTC and ODC. 1. Are you excluding income from Puerto Rico or filing any of the following forms? a. Form 2555 (relating to foreign earned income). b. Form 4563 (exclusion of income for residents of American Samoa). 2. Are you claiming any of the following credits? a. Mortgage interest credit, Form 8396. b. Adoption credit, Form 8839. c. Residential energy efficient property credit, Form 5695, Part I. d. District of Columbia first-time homebuyer credit, Form 8859. Comments and suggestions. We welcome your com- ments about this publication and your suggestions for fu- ture editions. You can send us comments through IRS.gov/ FormComments. Or, you can write to: Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Although we can’t respond individually to each com- ment received, we do appreciate your feedback and will consider your comments as we revise our tax forms, in- structions, and publications. We can’t answer tax ques- tions sent to the above address. Tax questions. If you have a tax question not an- swered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS Inter- active Tax Assistant page at IRS.gov/Help/ITA where you can find topics using the search feature or by viewing the categories listed. Getting tax forms, instructions, and publications. Visit IRS.gov/Forms to download current and prior-year forms, instructions, and publications. Ordering tax forms, instructions, and publications. Go to IRS.gov/OrderForms to order current forms, instruc- tions, and publications; call 800-829-3676 to order prior-year forms and instructions. Your order should arrive within 10 business days. Taxpayer Identification Number Requirements You must have a TIN by the due date of your return. If you, or your spouse if filing jointly, do not have an SSN or ITIN issued on or before the due date of your 2020 re- turn (including extensions), you cannot claim the CTC, ODC, or ACTC on either your original or an amended 2020 return. If you apply for an ITIN on or before the due date of your 2020 return (including extensions) and the IRS is- sues you an ITIN as a result of the application, the IRS will consider your ITIN as issued on or before the due date of your return. Each qualifying child you use for the CTC or ACTC must have the required SSN. If you have a qualifying child who does not have the required SSN, you cannot use the child to claim the CTC or ACTC on either your original or an amended 2020 return. The required SSN is one that is valid for employment and is issued before the due date of your 2020 return (including extensions). If your qualifying child does not have the required SSN, but has another type of taxpayer identification number is- sued on or before the due date of your 2020 return (in- cluding extensions), you may be able to claim the ODC for that child. See Credit for Other Dependents (ODC), later. Each dependent you use for the ODC must have a TIN by the due date of your return. If you have a de- pendent who does not have an SSN, ITIN, or ATIN issued on or before the due date of your 2020 return (including extensions), you cannot use that dependent to claim the ODC on either your original or an amended 2020 return. If you apply for an ITIN or ATIN for the dependent on or before the due date of your 2020 return (including exten- sions) and the IRS issues the ITIN or ATIN as a result of the application, the IRS will consider the ITIN or ATIN as issued on or before the due date of your return. Page 2 Publication 972 (2020)

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Improper Claims If you erroneously claim the CTC, ODC, or ACTC even though you are not eligible for the credit, and it is later determined that your error was due to reckless or intentional disregard of the CTC, ODC, or ACTC rules, you will not be allowed to claim any of these credits for 2 years. If it is determined that your error was due to fraud, you will not be allowed to claim any of these credits for 10 years. You may also have to pay penalties. Form 8862 may be required. If your CTC, ODC, or ACTC for a year after 2015 was denied or reduced for any reason other than a math or clerical error, you must attach Form 8862 to your tax return to claim the CTC, ACTC, or ODC unless an exception applies. See Form 8862, Infor- mation to Claim Certain Credits After Disallowance, and its instructions for more information, including whether an exception applies. Child Tax Credit (CTC) This credit is for individuals who claim a child as a de- pendent if the child meets additional conditions (descri- bed later). It is in addition to the credit for child and de- pendent care expenses (on Schedule 3 (Form 1040), line 2, and the earned income credit (on Form 1040 or 1040-SR, line 27)). The maximum amount you can claim for the credit is $2,000 for each child who qualifies you for the CTC. But, see Limits on the CTC and ODC, later. For more information about claiming the CTC, see Claiming the CTC and ODC, later. Qualifying Child for the CTC A child qualifies you for the CTC if the child meets all of the following conditions. 1. The child is your son, daughter, stepchild, eligible fos- ter child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew). 2. The child was under age 17 at the end of 2020. 3. The child did not provide over half of his or her own support for 2020. 4. The child lived with you for more than half of 2020 (see Exceptions to time lived with you, later). 5. The child is claimed as a dependent on your return. See Pub. 501 for more information about claiming someone as a dependent. 6. The child does not file a joint return for the year (or files it only to claim a refund of withheld income tax or estimated tax paid). 7. The child was a U.S. citizen, U.S. national, or U.S. resident alien. For more information, see Pub. 519, U.S. Tax Guide for Aliens. If the child was adopted, see Adopted child, later. Example. Your son turned 17 on December 30, 2020. He is a citizen of the United States and you claimed him as a dependent on your return. You cannot use him to claim the CTC because he was not under age 17 at the end of 2020. If your child is age 17 or older at the end of 2020, see Credit for Other Dependents (ODC), later. Adopted child. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. If you are a U.S. citizen or U.S. national and your adop- ted child lived with you all year as a member of your household in 2020, that child meets condition (7), earlier, to be a qualifying child for the CTC (or condition (3), later, to be a qualifying person for the ODC). Exceptions to time lived with you. A child is consid- ered to have lived with you for more than half of 2020 if the child was born or died in 2020 and your home was this child's home for more than half the time he or she was alive. Temporary absences by you or the child for special circumstances, such as school, vacation, business, medi- cal care, military service, or detention in a juvenile facility, count as time the child lived with you. There are also exceptions for kidnapped children and children of divorced or separated parents. For details, see your tax return instructions for column (4) of the section on Dependents. Qualifying child of more than one person. Special rules apply if a child is the qualifying child of more than one person. For details, see your tax return instructions for column (4) of the section on Dependents, and Pub. 501. Required SSN In addition to being a qualifying child for the CTC (defined earlier), your child must have the required SSN. The re- quired SSN is one that is valid for employment and is is- sued by the Social Security Administration before the due date of your 2020 return (including extensions). If your child was a U.S. citizen when the child received the SSN, the SSN is valid for employment. If “Not Valid for Employment” is printed on your child's social security card and your child's immigration status has changed so that your child is now a U.S. citizen or permanent resident, ask the SSA for a new social security card without the legend. However, if “Valid for Work Only With DHS Authorization” is printed on your child's social security card, your child has the required SSN only as long as the DHS authoriza- tion is valid. If your dependent child was born and died in 2020 and you do not have an SSN for the child, enter “Died” in col- umn (2) of the Dependents section of your tax return and include a copy of the child's birth certificate, death TIP Publication 972 (2020) Page 3

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certificate, or hospital records. The document must show the child was born alive. If your child does not have the required SSN, you can- not use the child to claim the CTC (or ACTC) on either your original or amended 2020 tax return. If your child is a qualifying child for the CTC, but does not have the required SSN, see Credit for Other Dependents (ODC) next. Credit for Other Dependents (ODC) This credit is for individuals with a dependent who meets additional conditions (described later). This credit is in ad- dition to the credit for child and dependent care expenses (on Schedule 3 (Form 1040), line 2, and the earned in- come credit (on Form 1040 or 1040-SR, line 27)). The maximum amount you can claim for the credit is $500 for each dependent who qualifies for the ODC. But, see Limits on the CTC and ODC, later. For more information about claiming the ODC, see Claiming the CTC and ODC, later. Qualifying Person for the ODC A person qualifies you for the ODC if the person meets all of the following conditions. 1. The person is claimed as a dependent on your return. See Pub. 501 for more information about claiming someone as a dependent. 2. The person cannot be used by you to claim the CTC or ACTC. See Child Tax Credit (CTC), earlier. 3. The person was a U.S. citizen, U.S. national, or U.S. resident alien. For more information, see Pub. 519. If the person is your adopted child, see Adopted child, earlier. Example. Your 10-year-old nephew lives in Mexico and qualifies as your dependent. He is not a U.S. citizen, U.S. national, or U.S. resident alien. You cannot use him to claim ODC. You cannot use the same child to claim both the CTC (or ACTC) and ODC. Timely Issued TIN In addition to being a qualifying person for the ODC (de- fined earlier), the person must have an SSN, ITIN, or ATIN issued to the dependent on or before the due date of your 2020 return (including extensions). If the person has not been issued an SSN, ITIN, or ATIN by that date, you can- not use the person to claim the ODC. For more informa- tion, see Taxpayer Identification Number Requirements, earlier. TIP CAUTION ! Limits on the CTC and ODC The maximum credit amount of your CTC or ODC may be reduced if either (1) or (2) applies. 1. The amount on line 18 of your Form 1040, 1040-SR, or Form 1040-NR, is less than the total of both credits. If this amount is zero, you cannot take either credit be- cause there is no tax to reduce. But you may be able to take the ACTC if you are claiming the CTC (you cannot take the ACTC if you are only claiming the ODC). See Additional Child Tax Credit (ACTC), later. 2. Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. a. Married filing jointly—$400,000. b. All other filing statuses—$200,000. Modified AGI. For purposes of the CTC and ODC, your modified AGI is your AGI plus the following amounts that may apply to you. • Any amount excluded from income because of the ex- clusion of income from Puerto Rico. On the dotted line next to Form 1040 or 1040-SR, line 11, enter the amount excluded and identify it as “EPRI.” Also attach a copy of any Form(s) 499R-2/W-2PR to your return. • Any amount on line 45 or line 50 of Form 2555, For- eign Earned Income. • Any amount on line 15 of Form 4563, Exclusion of In- come for Bona Fide Residents of American Samoa. If you do not have any of the above, your modified AGI is the same as your AGI. AGI. Your AGI is the amount on line 11 of your Form 1040, 1040-SR, or 1040-NR. Claiming the CTC and ODC To claim the CTC or ODC, be sure you meet the following requirements. • You must file Form 1040, 1040-SR, or 1040-NR and include the name and TIN of each dependent for whom you are claiming the CTC or ODC. • You must file Form 8862 if applicable. See Improper Claims, earlier. • You must enter a timely issued TIN on your tax return for you and your spouse (if filing jointly). See Taxpayer Identification Number Requirements, earlier. • For each qualifying child under 17 for whom you are claiming the CTC, you must enter the required SSN for the child in column (2) of the Dependents section of your tax return and check the Child tax credit box in column (4). See Child Tax Credit (CTC), earlier. • For each dependent for whom you are claiming the ODC, you must enter the timely issued TIN for the Page 4 Publication 972 (2020)

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dependent in column (2) of the Dependents section of your tax return and check the Credit for other depend- ents box in column (4). See Credit for Other Depend- ents (ODC), earlier. Do not check both the Child tax credit box and the Credit for other dependents box for the same per- son. Earned Income You will need to figure your earned income using the Earned Income Worksheet later in this publication, if you are completing the Line 14 Worksheet, later, or you were sent to Pub. 972 from your Schedule 8812 instructions. Additional Child Tax Credit (ACTC) This credit is for certain individuals who get less than the full amount of the CTC. The ACTC may give you a refund even if you do not owe any tax. The ODC cannot be used to figure the ACTC. Only your CTC can be used to figure the ACTC. If you are claiming the ODC but not the CTC, you cannot claim the ACTC. Election to use your prior year earned income. You may be able to use your 2019 earned income to figure your ACTC if your 2019 earned income is more than your 2020 earned income. See the Instructions for Form 8812 for more information. Foreign earned income. If you file Form 2555 (relating to foreign earned income), you cannot claim the ACTC. How to claim the additional child tax credit. To claim the ACTC, follow the steps below. 1. Be sure you figured the amount, if any, of your CTC and ODC using the appropriate Child Tax Credit and Credit for Other Dependents Worksheet. 2. If you answered “Yes” on line 11 or line 12 of the Child Tax Credit and Credit for Other Dependents Work- sheet in your Instructions for Forms 1040 and CAUTION ! CAUTION ! 1040-SR or Instructions for Form 1040-NR (or on line 16 of the Child Tax Credit and Credit for Other Dependents Worksheet in this publication) and line 1 of that worksheet is more than zero, use Schedule 8812 to see if you can take the ACTC. 3. If you have an ACTC on line 15 of Schedule 8812, carry it to line 28 of your Form 1040, 1040-SR, or 1040-NR. 4. For each qualifying child under 17 for whom you are claiming the ACTC, be sure to enter the required SSN for the child in column (2) of the Dependents section of your tax return and check the Child tax credit box in column (4). If the amount on line 1 of your Child Tax Credit and Credit for Other Dependents Worksheet is zero, your ACTC is also zero. You don't need to complete Schedule 8812. Paperwork Reduction Act Notice We ask for the information on the worksheets in this publi- cation to carry out the Internal Revenue laws of the United States. You are required to give us the information if re- quested. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information reques- ted on a form (or worksheet in this publication) that is sub- ject to the Paperwork Reduction Act unless the form (or publication) displays a valid OMB control number. Books or records relating to a form, its instructions, or this publi- cation must be retained as long as their contents may be- come material in the administration of any Internal Reve- nue law. Generally, tax returns and return information are confidential, as required by section 6103. The average time and expenses required to complete these worksheets will vary depending on individual cir- cumstances. For the estimated averages, see the instruc- tions for your income tax return. If you have suggestions for making these worksheets simpler, we would be happy to hear from you. See Com- ments and suggestions, earlier. TIP Publication 972 (2020) Page 5

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Child Tax Credit and Credit for Other Dependents Worksheet Figure the amount of any credits you are claiming on Schedule 3, lines 1 through 4; Form 5695, line 30; Form 8910, line 15; Form 8936, line 23; or Schedule R. Before you begin: 1. Number of qualifying children under 17 with the required social security number: 1 $2,000. Enter the result. 4. Enter the amount from line 11 of your Form 1040, 1040-SR, or 1040-NR. 4 No. STOP 10. Is the amount on line 3 more than the amount on line 9? Yes. Subtract line 9 from line 3. Enter the result. Go to Part 2 on the next page. 10 5. 1040 and 1040-SR ﬁlers. Enter the total of any— • Exclusion of income from Puerto Rico; and • Amounts from Form 2555, lines 45 and 50, and Form 4563, line 15. 5 1040-NR ﬁlers. Enter -0-. 6. Add lines 4 and 5. Enter the total. 6 7. Enter the amount shown below for your ﬁling status. • Married ﬁling jointly—$400,000 • All other ﬁling statuses—$200,000 7 8. Is the amount on line 6 more than the amount on line 7? Yes. Subtract line 7 from line 6. No. Leave line 8 blank. Enter -0- on line 9. If the result is not a multiple of $1,000, increase it to the next multiple of $1,000. For example, increase $425 to $1,000, increase $1,025 to $2,000, etc. 8 9. Multiply the amount on line 8 by 5% (0.05). Enter the result. 9 Part 1 2. Number of other dependents, including qualifying children who are not under 17 or who do not have the required social security number: 2 $500. Caution: Do not include yourself, your spouse, or anyone who is not a U.S. citizen, U.S. national, or U.S. resident alien. Also, do not include anyone you included on line 1. 3. Add lines 1 and 2.

3 Enter the result. You cannot take the child tax credit or credit for other dependents on line 19 of your Form 1040, 1040-SR, or 1040-NR. You also cannot take the additional child tax credit on line 28 of your Form 1040, 1040-SR, or 1040-NR. Complete the rest of your Form 1040, 1040-SR, or 1040-NR. Page 6 Publication 972 (2020)

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Child Tax Credit and Credit for Other Dependents Worksheet—Continued 11. 12. 11 12 Enter the amount from line 18 of your Form 1040, 1040-SR, or 1040-NR. Add the following amounts (if applicable) from: 14. Are you claiming any of the following credits? • Residential energy efﬁcient property credit, Form 5695, Part I. 14 15. Part 2 16. Is the amount on line 10 of this worksheet more than the amount on line 15? Yes. Enter the amount from line 15. See the TIP below. No. Enter the amount from line 10. This is your child tax credit and credit for other dependents. Enter this amount on Form 1040, line 19; Form 1040-SR, line 19; or Form 1040-NR, line 19. You may be able to take the additional child tax credit on line 28 of your Form 1040, 1040-SR, or 1040-NR, only if you answered “Yes” on line 16 and line 1 is more than zero. • First, complete your Form 1040, 1040-SR, or 1040-NR through line 27 (also complete Schedule 3, line 10). 16 Yes. If you are ﬁling Form 2555, enter -0-. Otherwise, complete the Line 14 Worksheet, later, to ﬁgure the amount to enter here. No. Enter -0-. 15

Enter the total. + TIP 1040-SR 1040-NR • Mortgage interest credit, Form 8396. • District of Columbia ﬁrst-time homebuyer credit, Form 8859. Form 8910, line 15 . . . . . . . . . . Form 8936, line 23 . . . . . . . . . . Schedule R, line 22 . . . . . . . . . . + + + + + + • Adoption credit, Form 8839. Form 5695, line 30 . . . . . . . . . . + • Then, use Schedule 8812 to ﬁgure any additional child tax credit. 13. Subtract line 12 from line 11. 13 1040

Subtract line 14 from line 13. Enter the result. Schedule 3, line 1 . . . . . . . . . . . Schedule 3, line 2 . . . . . . . . . . . Schedule 3, line 3 . . . . . . . . . . . Schedule 3, line 4 . . . . . . . . . . . Publication 972 (2020) Page 7

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Line 14 Worksheet Complete the Earned Income Worksheet, later in this publication. 6. 8. 7 If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA taxes, use the Additional Medicare Tax and RRTA Tax Worksheet to ﬁgure the amount to enter; otherwise enter the total of the following amounts from Form(s) W-2. Enter the total of any— • Amounts from Schedule 1, line 14, and Schedule 2, line 5; and • Any taxes that you identiﬁed using code “UT” and entered on Schedule 2, line 8. 8 9. Add lines 7 and 8. Enter the total. 9 • Social security tax withheld from box 4, and • Medicare tax withheld from box 6. Use this worksheet only if you answered “Yes” on line 14 of the Child Tax Credit and Credit for Other Dependents Worksheet earlier and are not ﬁling Form 2555. Before you begin: 3. 3 Enter your earned income from line 7 of the Earned Income Worksheet. No. Leave line 4 blank, enter -0- on line 5, and go to line 6. 4. Is the amount on line 3 more than $2,500? Yes. Subtract $2,500 from the amount on line 3. Enter the result. 5. Multiply the amount on line 4 by 15% (0.15) and enter the result. On line 2 of this worksheet, is the amount $4,200 or more? No. 4 5 If married ﬁling jointly, include your spouse’s amounts with yours when completing lines 7 and 8. Yes. If line 5 above is equal to or more than line 1 above, leave lines 7 through 10 blank, enter -0- on line 11, and go to line 12. Otherwise, go to line 7. 7. CAUTION • If line 2 or line 5 above is zero, enter the amount from line 1 above on line 14 of this worksheet. Do not complete the rest of this worksheet. Instead, go back to the Child Tax Credit and Credit for Other Dependents Worksheet and do the following. Enter -0- on line 14, and complete lines 15 and 16. • If both line 2 and line 5 are more than zero, leave lines 7 through 10 blank, enter -0- on line 11, and go to line 12. 1040 and 1040-SR ﬁlers. Complete line 27; Schedule 2, line 5; and Schedule 3, line 10 of your return if they apply to you. 1040-NR ﬁlers. Complete Schedule 2, line 5 and Schedule 3, line 10 of your return if they apply to you. 1. Enter the amount from line 10 of the Child Tax Credit and Credit for Other Dependents Worksheet . . . . . . . . . . . . . . . . . . . 1 2. 2 TIP: The number of children you use for this line is the same as the number of children you used for line 1 of the Child Tax Credit and Credit for Other Dependents Worksheet. Number of qualifying children under 17 with the required social security number: × $1,400. Enter the result. Page 8 Publication 972 (2020)

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14. 14 Is the amount on line 13 of this worksheet more than the amount on line 1? 15. Enter the total of the amounts from— • Form 5695, line 15, and 15 Yes. Enter -0-. No. Subtract line 13 from line 1. Enter the result. Next, ﬁgure the amount of any of the following credits that you are claiming. • Residential energy efﬁcient property credit, Form 5695, Part I. Then, go to line 15. 12. Enter the larger of line 5 or line 11. 12 • Mortgage interest credit, Form 8396. • Form 8396, line 9, and 11. Subtract line 10 from line 9. If the result is zero or less, enter -0-. 11

• District of Columbia ﬁrst-time homebuyer credit, Form 8859. • Form 8859, line 3. • Adoption credit, Form 8839. • Form 8839, line 16, and 10. 1040 and 1040-SR ﬁlers. Enter the total of the amounts from Form 1040 or 1040-SR, line 27, and Schedule 3, line 10. 10 1040-NR ﬁlers. Enter the amount from Schedule 3, line 10. 13. Enter the smaller of line 2 or line 12. 13 Enter this amount on line 14 of the Child Tax Credit and Credit for Other Dependents Worksheet. Publication 972 (2020) Page 9

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Earned Income Worksheet (for line 3 of the Line 14 Worksheet or line 6a of Schedule 8812, Additional Child Tax Credit) Keep for Your Records Before you begin: Use this worksheet only if you were sent here from the Line 14 Worksheet earlier in this publication or line 6a of Schedule 8812, Additional Child Tax Credit. Disregard community property laws when figuring the amounts to enter on this worksheet. If married filing jointly, include your spouse's amounts with yours when completing this worksheet. CAUTION ! If you elect to use prior year earned income, complete this worksheet using only 2019 amounts, including any amount: • On line 1b of this worksheet, of nontaxable combat pay received in 2019; • On line 2a of this worksheet, from a 2019 Schedule C-EZ, line 1; • On line 2b of this worksheet, from a 2019 Schedule C-EZ, line 3, or from a Schedule K-1 (Form 1065-B), box 9, code J1,* received in 2019; and • On line 5 of this worksheet, from a 2019 Schedule 1, line 27, instead of line 14 of that Schedule 1. 1. a. Enter the amount from line 1 of Form 1040 or 1040-SR, or line 1a of Form 1040-NR . . . . . . . . . . . . . 1a. b. Enter the amount of any nontaxable combat pay received. Also enter this amount on Schedule 8812, line 6b. This amount should be shown in Form(s) W-2, box 12, with code Q . . . . . . . . 1b. Next, if you are filing Schedule C, F, or SE, or you received a Schedule K-1 (Form 1065), go to line 2a. Otherwise, skip lines 2a through 2e and go to line 3. 2. a. Enter any statutory employee income reported on line 1 of Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . 2a. b. Enter any net profit or (loss) from Schedule C, line 31, and Schedule K-1 (Form 1065), box 14, code A (other than farming). Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. Do not include on this line any statutory employee income or any other amounts exempt from self-employment tax. Options and commodities dealers must add any gain or subtract any loss (in the normal course of dealing in or trading section 1256 contracts) from section 1256 contracts or related property . . . . . . . . . . . . . . . 2b. c. Enter any net farm profit or (loss) from Schedule F, line 34, and from farm partnerships, Schedule K-1 (Form 1065), box 14, code A*. Reduce any Schedule K-1 amounts as described in the instructions for completing Schedule SE in the Partner's Instructions for Schedule K-1. Do not include on this line any amounts exempt from self-employment tax . . . . . . . . . . . . . . . . . . . . . . . . . 2c. d. If you used the farm optional method to figure net earnings from self-employment, enter the amount from Schedule SE, line 15. Otherwise, skip this line and enter on line 2e the amount from line 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d. e. If line 2c is a profit, enter the smaller of line 2c or line 2d. If line 2c is a (loss), enter the (loss) from line 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e. 3. Combine lines 1a, 1b, 2a, 2b, and 2e. If zero or less, stop. Do not complete the rest of this worksheet. Instead, enter -0- on line 3 of the Line 14 Worksheet or line 6a of Schedule 8812, whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Enter any amount included on line 1a that is: a. A scholarship or fellowship grant not reported on Form W-2 . . . . . . . . . . . . . . . . . . 4a. b. For work done while an inmate in a penal institution (enter “PRI” and this amount on the dotted line next to line 1 of Form 1040 or 1040-SR, or line 1a of Form 1040-NR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b. c. A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (enter “DFC” and this amount on the dotted line next to line 1 of Form 1040 or 1040-SR, or line 1a of Form 1040-NR). This amount may be shown in box 11 of your Form W-2. If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4c. d. Enter any amount included on Form 1040 or 1040-SR, line 1, that is a Medicaid waiver payment you exclude from income (see the instructions for Schedule 1, line 8), unless you choose to include this amount in earned income, in which case enter zero . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4d. 5. Enter the amount from Schedule 1 (Form 1040), line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Add lines 4a, 4b, 4c, 4d, and 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7. Subtract line 6 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. • If you were sent here from the Line 14 Worksheet, enter this amount on line 3 of that worksheet. • If you were sent here from Schedule 8812, enter this amount on line 6a of that form. *If you have any Schedule K-1 amounts and you are not required to file Schedule SE, complete the appropriate line(s) of Schedule SE, Section A. Put your name and social security number on Schedule SE and attach it to your return. Page 10 Publication 972 (2020)

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Additional Medicare Tax and RRTA Tax Worksheet (for line 7 of the Line 14 Worksheet) Keep for Your Records If your employer withheld or you paid Additional Medicare Tax or Tier 1 RRTA taxes, use this worksheet to figure the amount to enter on line 7 of the Line 14 Worksheet. Social security tax, Medicare tax, and Additional Medicare Tax on wages. 1. Enter the social security tax withheld (Form(s) W-2, box 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Enter the Medicare tax withheld (Form(s) W-2, box 6). Box 6 includes any Additional Medicare Tax . . . . . . . . . . . . . . . . . 2.

3. Enter any amount from Form 8959, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Enter the Additional Medicare Tax withheld (Form 8959, line 22) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

Additional Medicare Tax on Self-Employment Income. 7. Enter one-half of the Additional Medicare Tax, if any, on self-employment income (one-half of Form 8959, line 13) . . . . . . . 7.

Tier 1 RRTA taxes as an employee of a railroad (enter amounts on lines 8, 9, 10, and 11) or employee representative (enter amounts on lines 12, 13, 14, and 15). Do not include amounts in Form W-2, box 14, that are identified as Additional Medicare Tax or Tier 2 tax. Do not include amounts shown on Form CT-2 on line 3 for Additional Medicare Tax or line 4 for Tier 2 tax. 8. Enter the Tier 1 tax (Form(s) W-2, box 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Enter the Medicare tax (Form(s) W-2, box 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Enter the Additional Medicare Tax, if any, on RRTA compensation as an employee (Form 8959, line 17). Do not use the same amount from Form 8959, line 17, for both this line and line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. Add lines 8, 9, and 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.

12. Enter one-half of Tier 1 tax (one-half of Form(s) CT-2, line 1, for all 4 quarters of 2020) . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

13. Enter one-half of Tier 1 Medicare tax (one-half of Form(s) CT-2, line 2, for all 4 quarters of 2020) . . . . . . . . . . . . . . . . . . . 13.

14. Enter one-half of the Additional Medicare Tax, if any, on RRTA compensation as an employee representative (one-half of Form 8959, line 17). Do not use the same amount from Form 8959, line 17, for both this line and line 10 . . . . . . . . . . . . . . 14.

15. Add lines 12, 13, and 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.

Line 6 amount 16. Add lines 6, 7, 11, and 15. Enter here and on line 7 of the Line 14 Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

How To Get Tax Help If you have questions about a tax is- sue, need help preparing your tax re- turn, or want to download free publica- tions, forms, or instructions, go to IRS.gov and find resources that can help you right away. Preparing and filing your tax return. After receiving all your wage and earn- ings statements (Form W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation state- ments (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return your- self, see if you qualify for free tax prep- aration, or hire a tax professional to prepare your return. Free options for tax preparation. Go to IRS.gov to see your options for preparing and filing your return online or in your local community, if you qual- ify, which include the following. • Free File. This program lets you prepare and file your federal indi- vidual income tax return for free us- ing brand-name tax-prepara- tion-and-filing software or Free File fillable forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/ FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or pay- ment options. • VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-Eng- lish-speaking taxpayers who need help preparing their own tax re- turns. Go to IRS.gov/VITA, down- load the free IRS2Go app, or call 800-906-9887 for information on free tax return preparation. • TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particu- larly those who are 60 years of age and older. TCE volunteers special- ize in answering questions about pensions and retirement-related is- sues unique to seniors. Go to IRS.gov/TCE, download the free IRS2Go app, or call 888-227-7669 for information on free tax return preparation. • MilTax. Members of the U.S. Armed Forces and qualified veter- ans may use MilTax, a free tax service offered by the Department of Defense through Military One- Source. Publication 972 (2020) Page 11

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Also, the IRS offers Free Fillable Forms, which can be completed online and then filed electronically regardless of income. Using online tools to help prepare your return. Go to IRS.gov/Tools for the following. • The Earned Income Tax Credit Assistant (IRS.gov/EITCAssistant) determines if you’re eligible for the earned income credit (EIC). • The Online EIN Application (IRS.gov/EIN) helps you get an employer identification number (EIN). • The Tax Withholding Estimator (IRS.gov/W4app) makes it easier for everyone to pay the correct amount of tax during the year. The tool is a convenient, online way to check and tailor your withholding. It’s more user-friendly for taxpay- ers, including retirees and self-em- ployed individuals. The features in- clude the following. – Easy to understand language. – The ability to switch between screens, correct previous en- tries, and skip screens that don’t apply. – Tips and links to help you deter- mine if you qualify for tax credits and deductions. – A progress tracker. – A self-employment tax feature. – Automatic calculation of taxable social security benefits. • The First Time Homebuyer Credit Account Look-up (IRS.gov/ HomeBuyer) tool provides informa- tion on your repayments and ac- count balance. • The Sales Tax Deduction Calculator (IRS.gov/SalesTax) fig- ures the amount you can claim if you itemize deductions on Sched- ule A (Form 1040). Getting answers to your tax questions. On IRS.gov, you can get up-to-date information on current events and changes in tax law. • IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions. • IRS.gov/ITA: The Interactive Tax Assistant, a tool that will ask you questions on a number of tax law topics and provide answers. • IRS.gov/Forms: Find forms, in- structions, and publications. You will find details on 2020 tax changes and hundreds of interac- tive links to help you find answers to your questions. • You may also be able to access tax law information in your electronic filing software. Need someone to prepare your tax return? There are various types of tax return preparers, including tax pre- parers, enrolled agents, certified public accountants (CPAs), attorneys, and many others who don’t have professio- nal credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is: • Primarily responsible for the overall substantive accuracy of your re- turn, • Required to sign the return, and • Required to include their preparer tax identification number (PTIN). Although the tax preparer always signs the return, you're ultimately re- sponsible for providing all the informa- tion required for the preparer to accu- rately prepare your return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov. Coronavirus. Go to IRS.gov/ Coronavirus for links to information on the impact of the coronavirus, as well as tax relief available for individuals and families, small and large busi- nesses, and tax-exempt organizations. Tax reform. Tax reform legislation af- fects individuals, businesses, and tax-exempt and government entities. Go to IRS.gov/TaxReform for informa- tion and updates on how this legisla- tion affects your taxes. Employers can register to use Busi- ness Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure online W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement, and Form W-2c, Corrected Wage and Tax Statement. IRS social media. Go to IRS.gov/ SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and se- curity are paramount. We use these tools to share public information with you. Don’t post your SSN or other con- fidential information on social media sites. Always protect your identity when using any social networking site. The following IRS YouTube chan- nels provide short, informative videos on various tax-related topics in English, Spanish, and ASL. • Youtube.com/irsvideos. • Youtube.com/irsvideosmultilingua. • Youtube.com/irsvideosASL. Watching IRS videos. The IRS Video portal (IRSVideos.gov) contains video and audio presentations for individuals, small businesses, and tax professio- nals. Online tax information in other lan- guages. You can find information on IRS.gov/MyLanguage if English isn’t your native language. Free interpreter service. Multilingual assistance, provided by the IRS, is available at Taxpayer Assistance Cen- ters (TACs) and other IRS offices. Over-the-phone interpreter service is accessible in more than 350 lan- guages. Getting tax forms and publications. Go to IRS.gov/Forms to view, down- load, or print all of the forms, instruc- tions, and publications you may need. You can also download and view pop- ular tax publications and instructions (including the Instructions for Forms 1040 and 1040-SR) on mobile devices as an eBook at IRS.gov/eBooks. Or you can go to IRS.gov/OrderForms to place an order. Access your online account (indi- vidual taxpayers only). Go to IRS.gov/Account to securely access Page 12 Publication 972 (2020)

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information about your federal tax ac- count. • View the amount you owe, pay on- line, or set up an online payment agreement. • Access your tax records online. • Review your payment history. • Go to IRS.gov/SecureAccess to re- view the required identity authenti- cation process. Using direct deposit. The fastest way to receive a tax refund is to file electronically and choose direct de- posit, which securely and electronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, or returned unde- liverable to the IRS. Eight in 10 taxpay- ers use direct deposit to receive their refunds. The IRS issues more than 90% of refunds in less than 21 days. Getting a transcript of your return. The quickest way to get a copy of your tax transcript is to go to IRS.gov/ Transcripts. Click on either “Get Tran- script Online” or “Get Transcript by Mail” to order a free copy of your tran- script. If you prefer, you can order your transcript by calling 800-908-9946. Reporting and resolving your tax-related identity theft issues. • Tax-related identity theft happens when someone steals your per- sonal information to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudu- lent return or to claim a refund or credit. • The IRS doesn’t initiate contact with taxpayers by email, text mes- sages, telephone calls, or social media channels to request per- sonal or financial information. This includes requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other fi- nancial accounts. • Go to IRS.gov/IdentityTheft, the IRS Identity Theft Central web- page, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related iden- tity theft, you can learn what steps you should take. • Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to eligible taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN. Checking on the status of your re- fund. • Go to IRS.gov/Refunds. • The IRS can’t issue refunds before mid-February 2021 for returns that claimed the EIC or the additional child tax credit (ACTC). This ap- plies to the entire refund, not just the portion associated with these credits. • Download the official IRS2Go app to your mobile device to check your refund status. • Call the automated refund hotline at 800-829-1954. Making a tax payment. The IRS uses the latest encryption technology to en- sure your electronic payments are safe and secure. You can make electronic payments online, by phone, and from a mobile device using the IRS2Go app. Paying electronically is quick, easy, and faster than mailing in a check or money order. Go to IRS.gov/Payments for information on how to make a pay- ment using any of the following op- tions. • IRS Direct Pay: Pay your individual tax bill or estimated tax payment directly from your checking or sav- ings account at no cost to you. • Debit or Credit Card: Choose an approved payment processor to pay online, by phone, or by mobile device. • Electronic Funds Withdrawal: Of- fered only when filing your federal taxes using tax return preparation software or through a tax profes- sional. • Electronic Federal Tax Payment System: Best option for busi- nesses. Enrollment is required. • Check or Money Order: Mail your payment to the address listed on the notice or instructions. • Cash: You may be able to pay your taxes with cash at a participating retail store. • Same-Day Wire: You may be able to do same-day wire from your fi- nancial institution. Contact your fi- nancial institution for availability, cost, and cut-off times. What if I can’t pay now? Go to IRS.gov/Payments for more informa- tion about your options. • Apply for an online payment agreement (IRS.gov/OPA) to meet your tax obligation in monthly in- stallments if you can’t pay your taxes in full today. Once you com- plete the online process, you will receive immediate notification of whether your agreement has been approved. • Use the Offer in Compromise Pre- Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more infor- mation on the Offer in Compromise program, go to IRS.gov/OIC. Filing an amended return. You can now file Form 1040-X electronically with tax filing software to amend 2019 Forms 1040 and 1040-SR. To do so, you must have e-filed your original 2019 return. Amended returns for all prior years must be mailed. See Tips for taxpayers who need to file an amended tax return and go to IRS.gov/ Form1040X for information and up- dates. Checking the status of your amen- ded return. Go to IRS.gov/WMAR to track the status of Form 1040-X amen- ded returns. Please note that it can take up to 3 weeks from the date you filed your amended return for it to show up in our system, and processing it can take up to 16 weeks. Understanding an IRS notice or let- ter you’ve received. Go to IRS.gov/ Notices to find additional information about responding to an IRS notice or letter. Contacting your local IRS office. Keep in mind, many questions can be answered on IRS.gov without visiting Publication 972 (2020) Page 13

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an IRS Taxpayer Assistance Center (TAC). Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, IRS TACs provide tax help when a tax issue can’t be han- dled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/ TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connec- ted tab, choose the Contact Us option and click on “Local Offices.” The Taxpayer Advocate Service (TAS) Is Here To Help You What Is TAS? TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and under- stand your rights under the Taxpayer Bill of Rights. How Can You Learn About Your Taxpayer Rights? The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them. What Can TAS Do For You? TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do ev- erything possible to resolve your issue. TAS can help you if: • Your problem is causing financial difficulty for you, your family, or your business; • You face (or your business is fac- ing) an immediate threat of ad- verse action; or • You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised. How Can You Reach TAS? TAS has offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at TaxpayerAdvocate.IRS.gov/Contact- Us. You can also call them at 877-777-4778. How Else Does TAS Help Taxpayers? TAS works to resolve large-scale prob- lems that affect many taxpayers. If you know of one of these broad issues, please report it to them at IRS.gov/ SAMS. TAS for Tax Professionals TAS can provide a variety of informa- tion for tax professionals, including tax law updates and guidance, TAS pro- grams, and ways to let TAS know about systemic problems you’ve seen in your practice. Low Income Taxpayer Clinics (LITCs) LITCs are independent from the IRS. LITCs represent individuals whose in- come is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax col- lection disputes. In addition, clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Serv- ices are offered for free or a small fee for eligible taxpayers. To find a clinic near you, visit www.TaxpayerAdvocate.IRS.gov/ about-us/Low-Income-Taxpayer- Clinics-LITC/ or see IRS Pub. 4134, Low Income Taxpayer Clinic List. To help us develop a more useful index, please let us know if you have ideas for index entries. See “Comments and Suggestions” in the “Introduction” for the ways you can reach us. Index

A Additional child tax credit (ACTC) 5 Assistance (See Tax help) C Child tax credit (CTC) 3 Claiming the credits 4 Credit for other dependents (ODC) 4 E Earned income 5 I Improper Claims 3 L Limits on the credits 4 O ODC (Credit for other dependents) 4 P Publications (See Tax help) Q Qualifying child for the CTC 3 Qualifying person for the ODC 4 R Required SSN 3 T Tax help 11 Taxpayer Identification Number Requirements 2 Timely Issued TIN 4 Page 14 Publication 972 (2020)