Do you invest considerable time travelling when you perform your charity work? If so depending upon the circumstances, your travel expenses may be deductible. There are several criteria which must be met before an individual is able to deduct his or her mileage.
First, the charity where you volunteer your time or perform your services must be a recognized non-profit organization. If you are uncertain, ask the charity about its qualifications and maintain this proof in your tax documents. If the government has granted the charity a tax-exempt status, any mileage you incur while volunteering is deductible. Unfortunately, the value of your time or the value of any services you perform for the charity is not deductible, just any unreimbursed travel expenses.
Additionally, the travel mileage you deduct cannot involve any travel spent on vacation, recreation, or personal pleasure you derive from the activity although hopefully you will enjoy your charity work.
If you are involved in extended travel, your charity work must be significant, real, and substantial throughout the entire trip in order for your travel mileage to be deductible. If you travel a great distance and spend very little time conducting charity work, the mileage is not deductible as charity mileage.
There are other expenses which also may be included in any deductible travel expenses. These include any required air, rail, and bus transportation. If the means of transportation is an automobile, any car expenses associated with your charity work may be deducted. These would include any parking fees and toll road costs.
Also, if your charity work requires an overnight stay or several overnight stays, your lodging costs may be deductible. The cost of any meals while you are away from home would also be deductible as well as any taxi fees or other transportation costs you might incur between the charity site and an airport, bus station or your hotel. But remember, the charity work you perform must be substantial and must encompass a majority of your time before you may deduct any associated expenses.
Any travel expenses you are able to deduct is an added bonus to the pleasure you obtain from volunteering your time and services – just make sure you keep accurate records and can verify any deductions you might take for your volunteering expenses.
Submitted by Kathryn Shrader
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