Volunteering your time, talents, and other resources for a charitable organization is a noble activity. The IRS honors that by offering tax breaks and deductions for volunteers.
If you paid any out-of-pocket expenses to perform your services, you may deduct them from your taxes. Some of these expenses include travel costs, such as round-trip tickets, hotels, and meals, provided that your primary reason for travel was the volunteer activity. If you hosted an event on behalf of a charity, you may deduct the expenses of food and beverages. Or if your car was used during your volunteer activity, you can deduct whatever you had to pay for gas, tolls, and parking fees. There are countless other examples of charitable tax deductions, but we think you get the idea.
Before you can claim deductions for volunteer activity, though, you have to make sure your organization actually qualifies as “charitable” in the eyes of the IRS. Many organizations qualify, such as nonprofit schools, hospitals, fire departments, and public facilities. Religious organizations and war veterans’ organizations also qualify, among many others. Check with the IRS to confirm that your volunteer activity qualifies before you try to claim any tax breaks.
Of course, you can always have the specialists at Taxation Solutions, Inc. check everything out for you before you submit your returns. We’ll look over your returns and verify that your deductions are above board and in total compliance with the IRS’s rules. You can also give us a call with any questions you may have!