Tax Deduction for Volunteer Work Miles
According to the VolunteeringInAmercia.gov, 62.8 million adults volunteered for various work in 2010. Many likely drove to and from volunteer sites, and they may have neglected to claim the appropriate tax deductions for the miles driven. Transportation to a volunteer site -- like a required uniform or other direct costs resulting from volunteering -- is treated like a cash contribution to the organization for tax purposes.
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Out-of-Pocket Expenses
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Generally, a volunteer may deduct on his or her annual tax return expenses that are directly related to volunteer service for a qualified organization. If the organization reimburses volunteers for out-of-pocket expenses, volunteers may not also deduct those expenses. Personal, family or living expenses are not deductible, but the IRS lists the cost of a required uniform or car expenses associated with travel to and from the volunteer site as costs that may be deductible.
Deduction Amount
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A volunteer may deduct the actual expenses for oil and gas he incurs in traveling to a volunteer engagement. Alternatively, he may deduct a set amount per mile, as determined by the IRS. In 2011, that amount is 14 cents per mile. Volunteers must document the miles incurred to claim the deduction, and they may deduct the actual cost of parking or tolls in addition to the standard rate.
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Substantiation
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The volunteer must substantiate, or account for, a deduction of volunteer miles as if they were a cash contribution to the organization. He or she should record the actual miles traveled, the date and time of the volunteer engagement and the name of the organization. If a volunteer wishes to deduct $250 or more in volunteer mileage expenses, he should receive contemporaneous written documentation of the expense from the organization.
Tax Forms
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To claim the deduction, the volunteer must itemize deductions as part of his annual form 1040. The form 1040 is due by April 15 each year, and deductions for charitable contributions (among other things) are included on Schedule A. Tax payers itemize deductions when the items included on Schedule A exceed the standard deduction amount ($5,800 for individuals in 2011).
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References
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