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Deducting volunteer expenses

If you volunteer at your local charity, any out of pocket expenses you have might be deductible – including your mileage. Most people don’t think of mileage used to go back and forth from volunteering activities as a deductible expense.

Deductible expenses

Some expenses that are eligible for deduction while volunteering are:

  • Mileage expense (computed at 14 cents per mile)
  • Parking fees and tolls
  • Meals: Unlike business expenses, meals are not subject to 50% limitation
  • Lodging: Lodging are deductible for overnight stays.
  • Supplies
  • Conferences and seminars
  • Uniforms
  • Any other out of pocket expense that is directly related to your charity work

Conditions required for deduction

Un-reimbursed charitable expenses are only deductible if the following conditions are met:

  • The organization must be qualified as a charity by the IRS.
  • You cannot receive reimbursement for the charity and deduct at the same time
  • The expenses have to be directly related to services you provide for the charity
  • The expenses cannot be personal in nature
  • You are not allowed to deduct the value of your time or service.

Deducting un-reimbursed expenses for charity

You must keep good records to recognize un-reimbursed volunteer expenses. The record should include the time, place, date, amount and nature of expense. Moreover, receipts, bank and credit card statements should also be kept as further proof.

For each volunteer expense of $250 or more, the taxpayer must obtain an acknowledgment from the charity before filing the tax return. The acknowledgement should include the following:

  • Description of services provided
  • Whether reimbursement was provided or not
  • A statement saying no benefits were obtained in exchange for unreimbursed services.

Volunteer expenses are treated as cash rather than non-cash contributions on the Schedule A of the individual tax return. This will be added to other cash charitable contributions made by the taxpayer.

As always consult your Certified Public Accountant (CPA) for more specific advice.