Tax Information for Volunteers
If you itemize your deductions and perform services for a qualified charitable
organization, you can deduct your out-of-pocket expenses on your income tax
return (for more information on-line, visit http://www.irs.gov).
How to Report These Expenses:
- You must file Form 1040
- You must itemize deductions on Schedule A
- If your total deduction for all no-cash contributions for the year is over
$500, you must also complete Section A of Form 8283 and attach it to your
Form 1040
- The IRS does not require you to keep your records in a particular way. You
should keep your records in an orderly fashion and in a safe place.
Unreimbursed expenses that volunteers may deduct as a charitable gift might
include:
- Actual car expenses directly related to the use of your car in giving services
or you can use a standard mileage rate to figure your contribution.
- Parking fees, tolls, taxi fares
- Cost of attending a convention or meeting including airfare, registration
fees, meals and lodging only if there is no significant element of personal
pleasure, recreation, or vacation in the travel (Note that charitable travel
expenses are not subject to the same limits as business related expenses and
may be 100% deductible)
- Telephone calls, materials, supplies, the cost of operating or renting equipment
- Cost of ingredients or materials that go into something you donate
Records to Keep
- Keep a written record of trips including the date, purpose of the trip;
starting point, destination and number of miles traveled. To make it easy,
record the starting odometer reading and subtract it from the ending odometer
reading after the trip is completed.
- Keep the receipts for everything you buy for donation for use in providing
a volunteer service.
- Other acceptable types of record include cancelled checks, written receipts,
and reliable written records made at or near the time that the expense was
incurred.
- Write down the details of other items donated including a description or
the item, date donated, and fair value of the item.
- Keep letters you receive that acknowledge your contributions.
- A diary or journal is helpful for jotting down mileage or expense items
as they occur.
Contributions you cannot deduct:
- The value of your time or services
- The value of income lost while you work as an unpaid volunteer
- Personal, living or family expenses
- Contributions from which you benefit
- Contributions to individuals or nonqualified organizations
Limits on Deductions
If your contributions for the year are more than 20% of your adjusted gross
income, including out-of-pocket amounts spent performing services for a charitable
organization, certain limits may apply.
What is a Qualified Organization?
Generally, qualified organizations include nonprofit groups that are religious,
charitable, educational, scientific, or literary in purpose, or that work to
prevent cruelty to children or animals.
Disclaimer
This information is of a general nature. No one should act upon it without
appropriate professional advice and a thorough examination of the fact s of
their particular situation.
