Tax Tips on Mileage for Volunteer Work
Volunteering for a charity is its own reward, but if you log numerous miles driving for your charity, it might be worth your time to look into the charity mileage deduction. Using your own car in service of a charity makes you eligible for the deduction, but there are some details to consider, as well as some basic rules to follow.
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Charity Deduction
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The charity deduction for miles driven in your own vehicle, as of 2011, is 14 cents for each mile. It is a comprehensive figure that covers fuel, any work you need done on the car, insurance and other costs. It doesn't include parking or tolls.
Tallying Mileage
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The best method for tallying mileage is to keep contemporaneous records. Reset your trip odometer for each trip. When you have finished the trip, note the miles. There is no need to hold onto gas receipts and the like, as you can't break out those charges. In addition to the miles, log the total car mileage on the main odometer at the beginning and close of the year.
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Rules
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In addition to the raw miles logged, the IRS requires drivers who want to claim mileage to note a few other items. For each trip, write the destination and purpose of the drive. In addition, note the organization for which you volunteer. You needn't turn this information in, but might be asked to provide it should you be audited.
Filing
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To make use of your mileage deduction for volunteer driving, you need to file a 1040. The simpler 1040A or 1040EZ will not do. That means itemizing, which is work. It also means forgoing the standard deduction. For that reason, tally up whether the mileage you consider claiming, along with other potential deductions, actually amount to more than the standard deduction. For regular driving, the miles can add up. This can mean tax savings. For fewer miles, or if you are not already itemizing, it's not likely worth your effort and might even cost you more in federal taxes.
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