J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

14.5 Support of a Student in Your Home

A limited charitable deduction is allowed for support of an elementary or high-school student in your home under an educational program arranged by a charitable organization. If the student is not a relative or your dependent, you may deduct as a charitable contribution your support payments up to $50 for each month the student stays in your home. For this purpose, 15 days or more of a calendar month is considered a full month. You may not deduct any payments received from the charitable organization if any reimbursements are received for the student’s maintenance. The only exception is that if you prepay a “one-time” expense such as a hospital bill or vacation for the child at the request of the child’s parents or the sponsoring charity, and you are later reimbursed for part of your payment, you may deduct your unreimbursed expenses.

To support the deduction, be prepared to show a written agreement between you and the organization relating to the support arrangement. Keep records of amounts spent for such items as food, clothing, medical and dental care, tuition, books, and recreation in order to substantiate your deduction. No deduction is allowed for depreciation on your house.