Tax Deductions for International Volunteer Work
Contributing to charitable organizations not only benefits those in need, but you may also qualify for some tax deductions in the process. The IRS has specific rules about what you may deduct from your taxes if you travel internationally to perform volunteer work, which differ from rules surrounding business travel.
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Money, Goods and Time
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The IRS allows you to deduct from your taxes any contributions you make to a charitable organization, as long as what you contribute is considered a good or is money. The IRS considers contributions to charitable organizations such as clothing, food and even vehicles as goods, meaning you may deduct their value from your taxes. If you donate your time to contribute volunteer work internationally, though, the time you spend abroad cannot be deducted from your taxes, even if it means you gave up potential income by spending time volunteering instead of working in your everyday job.
Travel Expenses
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Under IRS rules, you may deduct your travel costs from when you performed volunteer work internationally, even though you cannot deduct your time or professional efforts in the volunteer work. The IRS does require that your travel does not include recreation or vacation activities during your international travel to perform service, otherwise you cannot deduct your travel expenses from your taxes. This means if you are not performing volunteer duties for significant portions of your travels, the travel may be considered vacation or for recreation. The IRS does allow you to deduct your travel expenses whether you pay directly for your travel, or if you give money to the charitable organization, which then uses the money to arrange for your travel.
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Specific Expenses
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You may deduct from your taxes only certain travel expenses, based on IRS rules. These rules do not impose the same limits as for business travel, giving you a little more leeway in what you may claim on your taxes than when you travel for business. If you travel internationally by airplane, bus or train, you may deduct the cost of your fare. Any expenses for meals while you are traveling you may also deduct as well as money you pay for lodging internationally. Money you pay for a taxi or other form of transportation to take you from the airport, train or bus station and your living arrangements also is deductible.
Qualifying Organizations
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The charitable organization you perform volunteer work for must meet certain IRS requirements for you to deduct any expenses for international travel from your taxes. The charitable organization must have a 501(c)3 status with the IRS, meaning the organization is recognized as charitable by the IRS and does not have to pay taxes.
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