I would like to share with you, the
following information that I have gathered pertaining to participation
in volunteer organizations and certain tax advantages. More information
can be found in IRS
publication 526. Please read my disclaimer. |
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Out-of-pocket
expenses you incur while doing volunteer work for a qualified
organization are deductible as contributions. These expenses
must be unreimbursed and must benefit the charity.You can deduct
contributions up to 50% of your adjusted gross income which include
the following: |
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Out of pocket expenses: (8.254) |
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You can deduct the cost of materials
and supplies if you spent the money for the benefit of the charitable
organization. This means you can`t deduct the amounts you spend
for your personal expenses such as for your lunch, but you can
deduct the money you spend for materials and supplies to do your
job while you`re volunteering, provided the charitable organization
doesn`t reimburse you. Deduct your out-of-pocket expenses as
"cash contributions". |
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Cost of uniforms: (8.254) |
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You can deduct the cost of your uniforms
and shoes, if you must wear one while you`re performing your
volunteer work. (plus the cost of laundry and dry cleaning) |
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Car mileage: (8.251) |
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The cost of driving your car for
volunteer work is deductible. You may claim either a standard
mileage rate of 14˘ a mile or the actual operating expenses
for gas, oil, and repairs. You may not deduct a portion of general
repairs or maintenance or depreciation. Parking fees and tolls
may also be deducted under either method. |
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Travel away from home: (8.252,
8.253 & 8.254) |
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If your volunteer work takes you
out of town, you may deduct the costs of airfare or other transportation,
plus lodging and 50% meals while you are away. Charity cannot
be a blind for a deductible vacation, though. Your volunteer
expenses are not deductible if a significant element of your
travel is personal pleasure, recreation, or vacation. You are
allowed to have a good time. But you must be actually “on
duty” throughout the trip. You may not claim travel expenses
if (1) you have only nominal duties, or (2) you are not required
to perform services for a significant portion of the trip. Travel
expenses you incur while attending a church or other qualified
organization convention as a chosen delegate are deductible.
If you receive a per diem allowance from the organization, you
may claim the amount of your travel expenses that exceeds your
reimbursement. |
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Other costs deductible as charitable
contributions include:
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- Telephone bills directly related to
business with the organization.
- 50% of the cost of meals while doing
volunteer work out-of-town
- Equipment operating expenses directly
attributable to volunteer use; for example, cost of flying an
airplane in the service of the Civil Air Patrol or operating
radio equipment as a volunteer for the Military Affiliate Radio
System (MARS) |
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You must keep records to prove the amount of the cash and
noncash contributions you make during the year. The kind of records
you must keep depends on the amount of your contributions and
whether they are cash or noncash contributions.
Car expenses. If you claim expenses directly related to
use of your car in giving services to a qualified organization,
you must keep reliable written records of your expenses. Whether
your records are considered reliable depends on all the facts
and circumstances. Generally, they may be considered reliable
if you made them regularly and at or near the time you had the
expenses.
Your records must show the name of the organization you were
serving and the date each time you used your car for a charitable
purpose. If you use the standard mileage rate, your records must
show the miles you drove your car for the charitable purpose.
If you deduct your actual expenses, your records must show the
costs of operating the car that are directly related to a charitable
purpose |
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DISCLAIMER:
This information is provided
only to make you aware of the possibilities which may exist in
the current tax laws. Do not rely on this information to file
your tax return. Research the appropriate IRS publications or seek a professional tax advisor.
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