Did you know that volunteering your time for a charity could result in potential tax breaks, especially if you incur travel expenses as part of this work? While you can’t claim the value of any of the services you perform or of your time, you may be able to deduct some of the out-of-pocket travel expenses you incur while you’re performing charitable services.
The out-of-pocket costs that may be eligible include:
- Air, rail, and bus transportation
- Lodging expenses
- Car rental expenses (or expenses incurred from the use of your own vehicle)
- Cost of meals
Keep in mind that the IRS has firm rules that you must follow if you want to claim any of these expenses associated with your charitable work. Not only must the volunteer work you do be for a qualified organization, but you must also adhere to strict guidelines for your travel. If there is a significant element of personal pleasure, vacation, or recreation during your trip, then you cannot claim expenses for your volunteer work. Also, if you only have minimal duties, or your duties only last for a short part of your trip, you will not be able to deduct these expenses.
If you plan to travel while doing charity work in the near future, get in touch with Pro Tax Resolution right away. Our seasoned tax help pros will work with you to determine whether you can claim travel expenses that will help lower your taxes. Our initial consultations are free, so don’t hesitate to call now!