Tax Breaks For Volunteer Work
If you are a volunteer worker for a charity, you should be aware that your generosity may entitle you to some tax breaks. Some deductions are permitted for out-of-pocket costs you incur while performing the services. This includes items such as:
No charitable deduction is allowed for a contribution of $250 or more unless you substantiate the contribution by a written acknowledgment from the charitable organization. You can safeguard your deductions as follows:
- Away-from-home travel expenses while performing services for a charity. These deductible travel expenses include travel cost, taxi fares or other costs of transportation between the airport or station and your hotel, and lodging and meals. However, you cannot deduct expenses if they only have nominal duties or do not have any duties for significant parts of the trip, such as your personal expenses (sightseeing, fishing parties, theater tickets, etc.).
- If you use your car while performing services for a charitable organization you may deduct your actual unreimbursed expenses directly attributable to the services, such as gas and oil costs. Alternatively, you may deduct a flat 14¢ per mile for charitable use of your car. In either event, you may also deduct parking fees and tolls.
- You can deduct the cost of a uniform you wear when you do volunteer work for the charity, as long as the uniform has no general utility (e.g., a volunteer ambulance worker's jumpsuit). You can also deduct the cost of cleaning the uniform.
No charitable deduction is allowed for a contribution of $250 or more unless you substantiate the contribution by a written acknowledgment from the charitable organization. You can safeguard your deductions as follows:
- Get written documentation from the charity which must include the amount of cash, a description of any property contributed, and whether you got anything in return for your contribution.
- Maintain detailed records of your out-of-pocket expenses—receipts plus a written record of the time, place, amount, and charitable purpose of the expense.
- Submit a statement of expenses and, preferably, a copy of the receipts, to the charity, and arrange for the charity to acknowledge in writing the amount of the contribution.