Tax Deductions Charity Volunteers Should Claim This Year
Tax deductions for volunteering expenses:
Many people often look for meaningful ways to spend their money. Volunteering can be the right solution for this. Whether you use your free time to engage in a fundraising event or love participating in volunteer work to help those in need, you are eligible for tax deduction claims to cover some of your volunteering expense.
With such benefits in place, you can pursue your interests and help people by doing some charity work. If you have clients who constantly work for a charity to support their favorite cause, then they should be getting the tax deduction benefit from the IRS for the expenses they bear for the volunteering work. Although all personal expenses are non-deductible, charity workers can get tax deductions for all out-of-pocket expenses incurred while participating in fundraisers and charitable duties.
What types of expenses can be claimed?
To be exact, the expenses we are talking about include everything from your travel cost to the amount you spend in organizing an event for fundraising or charity work purposes. The expenses also include all types of small items, including stamps, postage for fundraising mailer, baking expenses for a church bake fundraiser.
The tax deductions rules for larger costs made towards buying and using hardware and lumber used in building projects are also covered under this criterion. In short, the tax deductions on charitable expenses don’t have any dollar limit. However, there are a few other rules still applicable for charitable deductions.
List of expenses for tax deduction:
To make it easy for volunteers of charitable events in filing their claims, here is a list of expenses commonly included under the tax deduction claims.
- Travel expenses:
This is the most common expense often done towards a charitable contribution deduction. Volunteers can claim taxi fares, bus or railway fare and produce gas bills if using their own cars for traveling. Most of the time, the incurred travel expenses also include flight transfer expenses when the volunteers are away from home to perform services. Travel expenses also include out-of-pocket expenses, taxi fares, lodging costs, meal costs and other transportation costs between the airport or railway station to the destination. As per the IRS approved flat rate, its 14 cents per mile when volunteers use their own cars for charitable driving.
- Business Expenses:
Such type of expense includes all types of material and service costs made towards the charitable events and the promotion of the business.
Volunteers who are attending conventions for promoting a charity or fundraising for a nonprofit organization can reimburse expenses done towards this purpose. This expense includes the travel expense made towards attending the convention, expenses for lodging and meals and fees to attend the convention.
- Telephone expenses:
Tax deduction list from the IRS also include telephone expenses, which also include fax bills, bills of long-distance telephone calls and cell phone charges. If the volunteer has a separate phone connection exclusively for charity calls, he can include the bill under this expense list and file claims.
- Underprivileged youths:
This is another benefit for volunteers participating in charity events. If you are supporting some underprivileged youths selected by a charitable organization to attend educational competitions, athletic events and entertainment events, then you can get the benefits of tax deductions from the IRS. The youths who you support should be selected by a charity organization that works towards reducing youth delinquency.
The expenses under this category includes all expenses made toward hosting a fundraising event, which includes dinner, party, entertainment cost, and all out-of-pocket expenses made for charitable functions. There is no limit on entertainment expenses as with the 50% cutoff in case of the travel expenses.
- Uniform costs:
If volunteers use a certain type of uniform while performing charitable events, they can get tax deduction benefits for the expenses they bear to upkeep, clean and buy the uniform.
- Exchange Students:
Under this category, volunteers are eligible to file expenses that they bear to house a foreign-exchange student. The student should be selected by a charitable organization and must be living in your house under a written agreement.
- Foster parents:
Foster care providers are eligible for tax deductions for certain expenses that they bear for nonprofit foster care.
To get the full benefit of tax deductions, volunteers must consider keeping all bills and expense reports. If under any circumstances the expenses exceed $250, volunteers should have a written acknowledgement from the charitable organization they work with.
This written letter should include details about service descriptions, expenses made, and statements of claims. The statement should also include an estimate of the goods and services offered and received with all other details supporting your eligibility for tax deduction claims. Keeping this in mind and taking all the above discussed factors into consideration, volunteers can file their claims this year.
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