Do You Volunteer for a Charitable Organization? Tax Deductions may Apply...

If you itemize deductions on your federal income tax return, you may be able to deduct some out-of-pocket expenses.  You are not allowed to deduct the value of your services given to a qualified organization, but you may be able to deduct some of what you spend in giving services to a qualified organization. 

These amounts MUST be:

v  not reimbursed

v  directly connected with the services you are providing

v  expenses you had only because of the services you gave

v  not personal, living or family expenses (such as food consumed during charity work)

v  not considered the value of your time (such as professional fees or blood donations)

Out-of-pocket travel expenses incurred may be deductible.  You can take a deduction for travel expenses, as long as the work is real and substantial throughout the trip and there is no significant element of personal pleasure.  Here are some expenses of travel expenses that may be deductible:

v  Air, rail, and bus transportation

v  Car expense, such as mileage (14 cents/mile)

v  Lodging costs

v  Cost of meals

v  Taxi fares or other transportation costs between the airport or station and your hotel

Example - A lawyer providing pro brono work for Toys for Tots®. The lawyer may normally charge $1,000 for the type of work performed. This $1,000 “fee” is nondeductible. However, any supply costs, mileage driven, and application fees paid would be deductible. Meals the lawyer consumed while working would not be deductible unless he consumed them on an overnight trip.

To learn more about how I can help you directly with your taxes or accounting, visit our website at http://www.cpafirm.cc/

For a search of Qualified Organizations, go to http://apps.irs.gov/app/eos/