Volunteer Rewards in Tax Law

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CASA volunteers are working to help kids, not to take tax deductions. To help reduce your taxes, however, these hints about deductions are available to volunteers. CASA Volunteers can deduct certain expenses directly related to their volunteer work on their tax returns.

Auto Mileage Costs

The standard mileage rate deduction available to volunteers who use their own car is 14 cents per mile. Alternately, volunteers can deduct their actual un-reimbursed expenses for gas and oil. In either case, parking fees and tolls and interest or taxes connected with the car can also be deducted. General insurance, maintenance, and repairs cannot be deducted, but specific repairs triggered by the volunteer work are deductible. The general rules for using an automobile may also apply to boats and airplanes that are used for charitable work.

Overnight Lodging

If a volunteer is performing volunteer-related duties out of town overnight, he/she can deduct reasonable expenses for transportation, lodging, and meals. These deductions can be taken as long as there's no significant personal element of recreation or vacation in the trip. If a volunteer chooses to attend a conference as a general member of an organization, however, rather than as that organization's designated representative, the trip is considered personal and is not deductible.

Sponsoring a Party

If your volunteer hosts a party to raise funds for a program, the volunteer can take a deduction for the expenses of hosting the party for others.

Free Use of Property

If a volunteer provides the program with free use of his/her property, he/she can take a charitable deduction for the out of pocket costs related to your use, such as utilities and insurance. However, the volunteer can't take a deduction for value of any rent that was lost as a result of the donation.

Donated Services - Not Deductible

There is no tax deduction for the value of donated services that a volunteer provides to a charity. Assume a lawyer does free legal work for your organization. Even though he/she may have given the program $500 of no-cost legal services, the lawyer receives no tax deduction. Correspondingly, if you sell a gift certificate at an auction for a free haircut, the hair stylist will not get a tax deduction for the value of the cut.

If you have questions about the deductibility of specific services or items, it's best to consult your tax advisor. In addition, IRS Publication 526, which is free, offers guidance on deductions.