TOP DRAWER ARTICLE
Tax Info for Volunteers
by
HL Carpenter
Helping others is worthwhile work with many rewards, and it’s unlikely you volunteer solely for tax benefits. But rising gasoline prices and other out-of-pocket expenses may make you wonder if you can take a deduction on your return.
Here’s an overview of what’s deductible and what’s not:
Transportation. Typically, if you itemize on your federal income tax return, you can take a deduction for the automobile expenses you incur while performing services for a charitable organization. The deduction can be for actual expenses or you can base the amount on a standard mileage rate. Either way, you should keep records, though you’re not required to attach the support to your return.
Supplies. You may be able to deduct purchases of certain items if the organization would have had to lay out the money itself. For example, when you donate building materials to help repair your local VFW post, you can deduct the amount you spent.
Personal expenses. Personal expenses, such as transportation costs driving to and from the building site in the above example, are not deductible. The value of your time and services is also nondeductible.
Originally published February 2006
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HL Carpenter, an experienced investor and a CPA, specializes in reader friendly financial and tax topics for individuals and small businesses, and publishes Top Drawer Ink, a newsletter that's chock full of humor and common sense information.
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This information should not be considered legal, investment or tax advice. Top Drawer
Ink Corp. does not provide legal, investment or tax advice. Always
consult your legal, investment and/or tax advisor regarding your
personal situation. |
Last update: December 30, 2009
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