A lot of people these days are enjoying the rewards of volunteering. Although your volunteer efforts don’t come with pay, they may qualify you for certain tax breaks under the rules of charitable giving. If you’re footing the bill for expenses incurred in the course of your volunteer work, chances are you can deduct some of those expenses on your annual income tax return.
The cost of buying and cleaning uniforms is one example of an eligible tax deduction for volunteerism. When you’re paying out of your own pocket to purchase and care for special clothing required for your volunteer role, that would likely meet the criteria for a valid claim. Other examples include travel charges covered while away from home, such as lodging, transportation fares, and meals, as well as any money spent entertaining potential donors on the charity’s behalf. While you’re responsible for your own meal and entertainment costs, you can often deduct what you spend on others. In addition, when you’re picking up the tab for your vehicle’s gas and oil, parking fees, and tolls in your duties for a charitable group, those unreimbursed costs may also be deducted.
Of course, any volunteer-related tax deductions you claim are still subject to regular deduction limits and substantiation rules. It’s also worth noting that travel expenses qualify only when the trip is mainly for performing charitable work (and does not involve lobbying).
To find out whether or not you’re eligible to recover some of the costs associated with being a volunteer, contact the knowledgeable tax professionals at Taxation Solutions, Inc. With 40+ years of experience behind our team, we’re your best bet in Raleigh for reliable tax advice.