What are the deductions that a volunteer can take?

Volunteering is a rewarding way to give back to your community, but did you know that some of the costs associated with volunteering can also help reduce your tax burden? While you cannot deduct the value of your time or services, the IRS does allow certain out-of-pocket expenses to be deductible, potentially lowering your taxable income.

Volunteers in action

What Expenses Are Deductible?

If you volunteer for a qualified charitable organization, you may be able to deduct:

• Travel expenses: Mileage driven while performing volunteer work can be deductible at the standard mileage rate for charitable activities. Parking fees and tolls are also included.

• Supplies and materials: Items you purchase specifically for volunteer work (like paint, cleaning supplies, or uniforms) can be deducted.

• Event expenses: Costs associated with fundraising events or charity-related activities, such as tickets purchased for resale, may qualify.

It’s important to keep accurate records of all expenses, including receipts, mileage logs, and dates of service.

What You Cannot Deduct

• The value of your time or services

• Personal expenses not directly related to volunteering

• General travel to and from the charity’s location unless specifically for volunteer duties

How to Claim Volunteering Deductions

1. Itemize deductions: Charitable contributions, including volunteering-related expenses, can only be claimed if you itemize on Schedule A of your tax return.

2. Documentation: Maintain detailed records, including receipts and mileage logs, in case of an IRS audit.

3. Qualified organization: Make sure the charity is recognized by the IRS as a tax-exempt organization (501(c)(3) status in most cases).

Tips for Maximizing Your Deductions

• Combine multiple small expenses into one documented record.

• Track all miles driven for charitable purposes throughout the year.

• Consider consulting a tax professional if your volunteer expenses are significant.

Final Thoughts

While volunteering is primarily about giving back, understanding what expenses are deductible can make your generosity even more rewarding. Careful record-keeping and awareness of IRS rules can ensure you maximize the benefits of your charitable contributions, saving money while supporting causes you care about.