Page 5

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