You may be able to deduct your mileage when you volunteer
Sunday, September 14th, 2008As a literacy group, we’re not in the habit of discussing the tax code, but in this case we have found some interesting information that we’d like to pass along. As always, check with a tax professional before taking tax advice from any source, including us.
According to the 2007 Instructions for Schedules A & B (Form 1040), deductible contributions
“can be in cash, property, or out-of-pocket expenses you paid to do volunteer work for the kinds of organizations described earlier. If you drove to and from the volunteer work, you can take the actual cost of gas and oil or 14 cents a mile. Add parking and tolls to the amount you claim under either method. But do not deduct any amounts that were repaid to you.”
This means that you can potentially deduct the mileage for your travels to and from your tutoring sessions. With today’s gas prices, we can all use any help we can get.
There are some caveats, however. When considering making a deduction of this nature, there are special considerations, such as whether you received a benefit from this contribution. There also may be further documentation needed if this gift (your travel for us) is of $250 or more. You should consult your tax professional about how these specific items may be applicable to you. To read the details from for yourself, you can click here to open a PDF of the instructions for schedules A and B quoted above.
The current mileage rate for volunteers is $0.14 per mile. A bit paltry when you consider that “As of July 1, if you drive for business, you can deduct 58.5 cents per mile, up from 50.5 cents per mile. Folks who drive to and from medical providers, or move for a job, can deduct 27 cents per mile, up from 19 cents.”
Thankfully, the very same month, a new bill was introduced in Congress to increase the mileage deduction for volunteers. Clearly we’re not the only ones that think volunteers deserve more to offset the expense of today’s gas prices.
For more details about making this deduction, including options for calculating the deduction and the correct way to keep records, read this concise article found on Suite101.com.
