By Robert Moore
With tax time here, I thought a blog on deductions allowed by the Internal Revenue Service (IRS) for volunteers might be timely. The IRS allows several different deductions that volunteers can take advantage of in exchange for their good will.
Use of personal vehicle
Unlike employees, who cannot deduct the cost of commuting as “business expenses”, volunteers can deduct mileage traveled from their home to their volunteer site. Once there, if you use your vehicle on organization-related business (deliveries, running errands, etc.) and you are not reimbursed separately, these expenses are deductible as well. Volunteers can also deduct the full cost of tolls, parking fees, cab fares, bus fares, etc. that were incurred with any charitable service.
Volunteers have two options in determining the amount of deduction for travel-related expenses:
1. Standard mileage rate (14 cents per mile). Most people find this method the simplest way to track expenses. You can create a spreadsheet and track the following information:
• Date
• Purpose
• Odometer Start
• Odometer End
• Total Trip Mileage
• Additional Costs (i.e., parking, tolls)
Keep a copy of the spreadsheet in your car as you accrue mileage. At the end of the year,
add up all of your mileage and multiply by the $0.14 mileage rate.
2. Direct expenses (actual costs of gas and oil). If you use this method, you need to keep some of the same information as above (date, purpose and miles driven), but you must also keep receipts associated with the fuel and oil expenses.
Out-of-pocket expenses
If you pay for some of the organization’s expenses and aren’t reimbursed, these costs can count as charitable deductions as well. This might be buying stamps for a group’s mailings or purchasing office supplies for the organization’s administrative operations. And if your volunteer work requires you to wear a uniform that is not provided by the organization, the cost of the clothing and keeping it clean are deductible. Again, receipts and noting the purpose of the expense is a must.
What volunteers can’t deduct
Under current law, volunteers are prohibited from taking a charitable contribution deduction for the value of the services they provided to charities. That means you can’t take a deduction for the time you spend volunteering. Nor can you deduct any personal expenses (meals, childcare, etc.) that you incur while volunteering.
For more information, review IRS publication 526, Charitable Contributions, or consult with your tax advisor.
Robert Moore is Executive Director of Friends of the Cobbossee Watershed and a featured blogger.
