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charitable contribution deduction to charity X c. Preferred access to goods or serv- Expenses Paid for Student
can’t exceed $300 ($1,000 donation - $700 ices, and Living With You
state tax credit). The reduction applies even if d. Discounts on the purchase of goods
you can’t claim the state tax credit for that year. and services. You may be able to deduct some expenses of
Your deductible charitable contribution to char- having a student live with you. You can deduct
ity X is $300. Your total contributions may still But, item (1) doesn’t include rights to qualifying expenses for a foreign or American
be subject to limitations. See Limits on Deduc- purchase tickets for seating at an athletic student who:
tions, later. event in an athletic stadium of a college or
university as a result of a contribution to 1. Lives in your home under a written agree-
Example 2. You donate a painting to char- such institution. ment between you and a qualified organi-
ity Y, a qualified organization. At the time of the zation (defined later) as part of a program
donation, the painting has a FMV of $100,000. 2. Admission, while you are a member, to of the organization to provide educational
In return for the painting, you receive or expect events open only to members of the or- opportunities for the student,
to receive a state tax credit of 10% of the FMV ganization if the organization reasonably
of the painting. The state tax credit is $10,000 projects that the cost per person (exclud- 2. Isn't your relative (defined later) or de-
pendent (also defined later), and
(10% of $100,000). The amount of your state ing any allocated overhead) isn't more
tax credit does not exceed 15% of the FMV of than $11.70. 3. Is a full-time student in the twelfth or any
the painting. As a result, your charitable contri- lower grade at a school in the United
bution deduction to charity Y is not reduced. States.
Your deductible charitable contribution for your Token items. You don't have to reduce your
noncash contribution to charity Y is $100,000. contribution by the value of any benefit you re- You can deduct up to $50 a month for
However, your total contributions may still be ceive if both of the following are true. TIP each full calendar month the student
subject to limitations. See Limits on Deductions, lives with you. Any month when condi-
later. 1. You receive only a small item or other ben- tions (1) through (3) are met for 15 or more days
efit of token value. counts as a full month.
State or local tax deduction. If you make a 2. The qualified organization correctly deter-
payment or transfer property to a qualified or- mines that the value of the item or benefit Qualified organization. For these purposes,
ganization and receive or expect to receive a you received isn't substantial and informs a qualified organization can be any of the or-
state or local tax deduction in return, then the you that you can deduct your payment in ganizations described earlier under Types of
amount of your charitable contribution deduc- full. Qualified Organizations, except those in (4) and
tion to the organization may be reduced in (5). For example, if you are providing a home
some circumstances. If the amount of the state The organization determines whether the value for a student as part of a state or local govern-
or local tax deduction exceeds the amount of of an item or benefit is substantial by using Rev- ment program, you can't deduct your expenses
your cash contribution or the FMV of the trans- enue Procedures 90-12 and 92–49 and the in- as charitable contributions. But see Foster pa-
ferred property, then your charitable contribu- flation adjustment in Revenue Procedure rents under Out-of-Pocket Expenses in Giving
tion deduction is reduced. However, if the 2021-45. Services, later, if you provide the home as a
amount of the state or local tax deduction foster parent.
doesn’t exceed the amount of your payment or Written statement. A qualified organization
the FMV of the transferred property, then no re- must give you a written statement if you make a Relative. The term “relative” means any of the
duction is necessary. payment of more than $75 that is partly a contri- following persons.
bution and partly for goods or services. The • Your child, stepchild, foster child, or a de-
Example 1. You make a cash contribution statement must say you can deduct only the scendant of any of them (for example, your
of $1,000 to charity Z, a qualified organization. amount of your payment that is more than the grandchild). A legally adopted child is con-
Under state law, you are entitled to receive a value of the goods or services you received. It sidered your child.
state tax deduction of $1,000 in return for your must also give you a good faith estimate of the • Your brother, sister, half brother, half sis-
payment. The amount of your charitable contri- value of those goods or services. ter, stepbrother, or stepsister.
bution deduction to charity Z isn’t reduced. Your The organization can give you the statement • Your father, mother, grandparent, or other
charitable contribution deduction to charity Z is either when it solicits or when it receives the direct ancestor.
$1,000. However, your total contributions may payment from you. • Your stepfather or stepmother.
still be subject to limitations. See Limits on De- • A son or daughter of your brother or sister.
ductions, later. Exception. An organization won't have to • A brother or sister of your father or mother.
give you this statement if one of the following is • Your son-in-law, daughter-in-law, fa-
Membership fees or dues. You may be able true. ther-in-law, mother-in-law, brother-in-law,
to deduct membership fees or dues you pay to 1. The organization is: or sister-in-law.
a qualified organization. However, you can de-
duct only the amount that is more than the value a. A governmental organization descri- Dependent. For this purpose, the term “de-
of the benefits you receive. bed in (5) under Types of Qualified pendent” means:
You can't deduct dues, fees, or assess- Organizations, earlier, or
ments paid to country clubs and other social or- b. An organization formed only for reli- 1. A person you can claim as a dependent,
or
ganizations. They aren't qualified organizations. gious purposes, and the only benefit
Certain membership benefits can be dis- you receive is an intangible religious 2. A person you could have claimed as a de-
pendent except that:
regarded. Both you and the organization can benefit (such as admission to a reli-
gious ceremony) that generally isn't
disregard the following membership benefits if a. He or she received gross income of
you get them in return for an annual payment of sold in commercial transactions out- $4,400 or more;
side the donative context.
$75 or less. b. He or she filed a joint return; or
1. Any rights or privileges that you can use 2. You receive only items whose value isn't c. You, or your spouse if filing jointly,
frequently while you are a member, such substantial, as described under Token could be claimed as a dependent on
as: items, earlier. someone else's 2022 return.
a. Free or discounted admission to the 3. You receive only membership benefits that
can be disregarded, as described under
organization's facilities or events, Membership fees or dues, earlier.
b. Free or discounted parking,

Page 4 Publication 526 (2022)