Form 8914
ProSeries Professional
Form 8914 - Exemption Amount for Taxpayers Housing Midwestern Displaced Individuals
The Heartland Disaster Tax Relief Act of 2008 contained special tax provisions for volunteers and donors. One of the provisions is an additional exemption of $500 for housing each displaced Midwestern disaster individual (up to a maximum of 4 people) for an additional maximum exemption amount of $2,000 ($1,000 if married filing separately).
Use Form 8914 to report the information related to housing displaced Midwestern disaster individuals and to calculate the amount of exemptions allowed.
- The person must be a qualified displaced individual. This individual must have lived in the core disaster area and cannot be your client's spouse or dependent.
- Your client must have provided housing in their main home to the displaced individual for at least 60 consecutive days ending in the tax year for which your client is claiming the exemption.
- Your client cannot receive rent from any source for providing the housing. However, your client may receive reimbursement for expenses not related to normal housing costs, such as food, clothing, personal items consumed by the displaced individual, long distance telephone calls made by the displaced individual, and gasoline for the displaced individual's use of your client's vehicle.
Fill out the information about the displaced individual(s) on Part I. The rest of the form will calculate automatically based on your entries in Part I and on the information in the tax return.
