How to Deduct Mileage When Driving for a Charitable Purpose
The mileage that you put on your vehicle is built up from a variety of daily tasks. Your driving experience may take you to volunteer opportunities or other charitable purposes in between home and work. There is a specific way to deduct mileage that can help you save money.
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Things You'll Need
- Schedules A and B
- Mileage book
- Receipts for parking and tolls
- Form 1040
Instructions
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Reduce Tax Burdens Using Mileage Deductions From Charitable Enterprises
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1
Stay updated on the Internal Revenue Service's (IRS) price per mile for charitable driving. This price typically hovers between 12 and 24 cents per mile and is reimbursed for every mile you drive for charitable activities.
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2
Research state mileage rates for charitable driving when a special purpose is involved. The use of your automobile for disaster relief or state-run functions often has a higher rate of reimbursement than the basic federal-mileage rate.
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3
Check private charities and non-profit organizations for tax status and applicability for mileage deductions. The organization must be formed for non-profit education, social services or relief purposes. Some organizations, like veterans groups, even have favored status from the IRS.
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4
Store receipts for parking fees and tolls when driving for a charitable purpose. You can claim all of these expenses, along with your mileage reimbursement, when you file your taxes as long as they are necessary to complete volunteer activities.
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Determine whether your mileage deductions will push you above the standard deduction when using Schedules A and B. This IRS form, available at IRS.gov, allows you to itemize expenses and deductions for the past fiscal year (see Resources below). Your charitable driving may not be worth noting if you have driven short distances and donated few items in the past year.
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Compare the miles you have driven for recreation and work with mileage you accrue when conducting charitable business. You can simply track the start and end mileage of your volunteer driving to subtract from the total mileage during tax time.
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Add mileage for a charitable purpose to cash donations you have made to deduct the appropriate amount from your taxes. You can apply the total amount of donations to help deduct your financial generosity from your overall burden.
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Tips & Warnings
Ask third parties at the beginning and end of your driving experience to sign a mileage book. You can use a simple spreadsheet or the manufacturer's handbook to document your mileage for each trip you take. People who sign your document can attest to the honesty of your records and provide a contact point if tax issues arise.
