Tax Credit for Volunteer Firefighters

Volunteer firefighters receive federal and state tax credits for their service.

Firefighters spend their time fighting fires and saving lives. Due to local budget constraints, communities use volunteer firefighters to assist in keeping the community safe. These individuals put their lives on the line without any payment. Volunteer firefighters have to pay some expenses while on the job. Both federal and state governments acknowledge this contribution and allow tax credits for volunteer firefighters.

Federal Exclusion

The federal government offers volunteer firefighters an exclusion from gross income. As of September 2011, the amount is $30 multiplied by the number of months the individual serves as a volunteer firefighter. In order to receive this benefit, the individual must be a member of a qualified volunteer emergency response organization. If the individual is also taking a charitable deduction for expenses, then the amount for the charitable deduction should be reduced by the payment excluded from gross income.

Expenses

The IRS lets all volunteers deduct certain expenses related to the volunteer work that the individuals pay out of pocket. This includes mileage costs for traveling in the course of their volunteer work. The IRS sets a standard mileage reimbursement rate for volunteers each year. It also includes costs for parking and uniform purchases. These deductions are not allowed if the individual receives reimbursement from the organization. The individual must also be itemizing on his tax return.

Meals

The IRS allows volunteer firefighters to deduct business-related meal expenses because they fall under the hours-of-service limits established by the Department of Transportation. Workers who work in occupations that require meals be taken on the job fall under the hours-of-service limits. This IRS provision allows individuals to deduct up to 80 percent of business-related meal expenses that fall under the hours-of-service limits. The 80 percent limit applies before the requirement that 2 percent of adjusted gross income be exceeded is met.

State Credits

New York State gives volunteer firefighters a $200 state tax credit, as of 2011. Individuals have to be full-time New York State residents and have volunteered for the entire year in which they are requesting the credit. The state of Delaware also gives state tax credits to volunteer firefighters. In 2011, active Delaware volunteer firefighters are entitled to a credit of up to $300 to compensate them for the expense of clothing, equipment and supplies.

References

• Serviceleader.org: Tax Credits for Volunteer Costs
• Huff Post Politics; Surviving an American Economic Crisis: Tax Credit for Volunteering?; Curtis Valentine; Sept. 9, 2011
• Internal Revenue Service: Publication 15-B
• Senator Tom Libous; $200 Tax Credit for Volunteer Firefighters and EMS Workers; March 16, 2010
• Taxes In-Depth: Delaware State Income Taxes
• Internal Revenue Service: Publication 529