2011 Instructions For Schedule A (Form 1040) (Page 7 of 14) in pdf

The allocation rules, explained above,

dustries, Red Cross, Salvation Army,

Alaska Permanent Fund divi-

do not apply to qualified mortgage insur-

dends, including those reported

United Way, etc.

ance provided by the Department of Veter-

•

on Form 8814, are not invest-

Fraternal orders, if the gifts will be

ans Affairs or the Rural Housing Service

ment income.

used for the purposes listed earlier on this

(or their successor organizations).

page.

For more details, see Pub. 550.

•

Veterans’ and certain cultural groups.

You

Limit on amount you can deduct.

•

Nonprofit schools, hospitals, and or-

cannot deduct your mortgage insurance

ganizations whose purpose is to find a cure

premiums if the amount on Form 1040, line

Gifts to Charity

for, or help people who have, arthritis,

38, is more than $109,000 ($54,500 if mar-

asthma, birth defects, cancer, cerebral

ried filing separately). If the amount on

You can deduct contributions or gifts you

palsy, cystic fibrosis, diabetes, heart dis-

Form 1040, line 38, is more than $100,000

gave to organizations that are religious,

ease, hemophilia, mental illness or retarda-

($50,000 if married filing separately), your

charitable, educational, scientific, or liter-

tion, multiple sclerosis, muscular

deduction is limited and you must use the

ary in purpose. You can also deduct what

dystrophy, tuberculosis, etc.

worksheet below to figure your deduction.

you gave to organizations that work to pre-

•

Federal, state, and local governments

vent cruelty to children or animals. Certain

if the gifts are solely for public purposes.

whaling captains may be able to deduct

Line 14

expenses paid in 2011 for Native Alaskan

Contributions You Can

subsistence bowhead whale hunting activi-

Investment Interest

ties. See Pub. 526 for details.

Deduct

To verify an organization’s charitable

Investment interest is interest paid on

Contributions can be in cash, property, or

status, you can:

money you borrowed that is allocable to

out-of-pocket expenses you paid to do vol-

•

property held for investment. It does not

Check with the organization to which

unteer work for the kinds of organizations

include any interest allocable to passive ac-

you made the donation. The organization

described earlier. If you drove to and from

tivities or to securities that generate tax-ex-

should be able to provide you with verifica-

the volunteer work, you can take the actual

empt income.

tion of its charitable status.

cost of gas and oil or 14 cents a mile. Add

•

See Pub. 78 for a list of most qualified

parking and tolls to the amount you claim

Complete and attach Form 4952 to fig-

organizations. You can access Pub. 78 at

under either method. But do not deduct any

ure your deduction.

under Search for

amounts that were repaid to you.

Charities .

•

Exception.

You do not have to file Form

Call our Tax Exempt/Government En-

Gifts from which you benefit.

If you made

4952 if all three of the following apply.

tities Customer Account Services at

a gift and received a benefit in return, such

1-877-829-5500.

1. Your investment interest expense is

as food, entertainment, or merchandise,

not more than your investment income

Examples of Qualified

you can generally only deduct the amount

from interest and ordinary dividends minus

that is more than the value of the benefit.

Charitable Organizations

any qualified dividends.

But this rule does not apply to certain mem-

•

2. You have no other deductible invest-

Churches, mosques, synagogues, tem-

bership benefits provided in return for an

ment expenses.

ples, etc.

annual payment of $75 or less or to certain

•

items or benefits of token value. For de-

3. You have no disallowed investment

Boy Scouts, Boys and Girls Clubs of

tails, see Pub. 526.

interest expense from 2010.

America, CARE, Girl Scouts, Goodwill In-

Mortgage Insurance Premiums Deduction Worksheet—Line 13

Keep for Your Records

Before you begin:

See the instructions for line 13 above to see if you must use this worksheet to figure your

deduction.

1. Enter the total premiums you paid in 2011 for qualified mortgage insurance for a contract issued after

December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 is not limited. Enter the amount from line 1 above on

Schedule A, line 13. Do not complete the rest of this worksheet.

Yes. Subtract line 3 from line 2. If the result is not 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 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

A-7

2011 Instructions For Schedule A (Form 1040) Page 7

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