1098-C – Contributions of Motor Vehicles, Boats and Airplanes

You will receive this statement if you donated a vehicle, boat, or airplane with a claimed value of over $500 to a charitable organization.  If the charity (donee) sold the vehicle, box 4a should be checked and the charity should send you this form within 30 days after the sale.  In this case, you can take an itemized deduction for a charitable contribution for the gross proceeds from the sale, as reported in box 4c, or the fair market value of the vehicle on the date you contributed it to the charity, whichever is lower.  But if your basis in the vehicle was less, your deduction may be limited to that amount.

The charitable organization is required to report what it does with the vehicle, boat or airplane you donated.  If the charity did not sell it, either box 5a or 5b should be checked.  The charity may use the vehicle in its work or may make substantial improvements (box 5a).  Or it may donate the vehicle to a needy individual, as part of its charitable purpose (box 5b).  In these cases, you can generally take a deduction for the fair market value of the vehicle on the date you donated it, or your basis in the vehicle, whichever is lower.

You must attach Copy B of Form 1099-C to your tax return in order to claim this deduction.  Otherwise, the deduction will be disallowed.  Generally, you would also have to file Form 8283, Noncash Charitable Contributions.

1098-E – Student Loan Interest Statement

The amount of interest you paid on a qualified student loan is reported in box 1 of this statement.  If your modified adjusted gross income is less than a certain maximum amount, you can deduct this interest as an adjustment to income on Form 1040 or 1040A.  The student must be you, your spouse, or your dependent, and must be enrolled in a degree program at qualified educational institution at least half-time.  The proceeds from the loan must have been used to pay qualified education expenses.  For purposes of this deduction, qualified education expenses include tuition and fees, room and board, books and supplies, and other necessary expenses, including transportation.