February 15, 2008
Tax Deductions for Volunteer Time and Expenses
If you itemize deductions, then maybe this will interest you.
If you are the type that doesn't like to think about filing your tax return until after dinner on April 14th, then maybe it won't interest you.
Some of us begin putting together our returns almost as soon as the year ends. Whenever you decide to think about it, here are some reminders concerning deductions for volunteer services:
This information is taken directly from IRS Publication 526, Charitable Contributions , which you should rely upon rather than some dodgy,unreliable Blog entry.
1. Car expenses are deductible for travel directly to and from the place of your volunteer service. You can deduct either but not both: a)gas and oil directly related to the use of your vehicle in giving services, or b) deduct an amount of $0.14 per mile for the same. Note that this remains the same 14 cents as last year for volunteer activities. (Despite lipservice from congress regarding the value of volunteerism, only business travel deductions have been increasing, up to 48.5 cents per mile in 2007.)
2. Tolls and parking fees are deductible.
3. If the volunteer service required travel overnight, you can deduct lodging and meals, including tips. But the travel must be not have any significant "pleasure trip" component.
4. Personal expenses are not deductible, except meals associated with overnight travel.
5. Personal time or labor is not deductible.
6. You must use Form 1040 to itemize. Deductions are handled differently, depending on the total amount. Deductions up to $500 are submitted on Schedule A, Itemized Deductions. Over that, they are submitted in section A of Form 8283, Noncash Charitable Contributions. There are limits on total deductions, and different categories, too. Consult IRS Pub 526 to see the breakdown and requirements for each category.
7. You must keep records. The requirements are no more than what your 7th grade teacher asked from your notes. Include the name of the "qualifying" charitable organization, time and dates, mileage and costs. Have receipts (photocopies okay). Entries need to be made at or near the time of the expenditure. I create my own table for mileage and expenses and print it directly on a 6x9 envelope to put my receipts in. Generally, I keep one envelope for each organization that I support.
