What Volunteers Can Deduct when filing their taxes
You Can not Deduct
- The cost of time for your services
- The value of any
compensation or gifts you receive from the nonprofit you are volunteering
for must be subtracted off of any deductions
What Deductions can you claim?
- If the supplies
that you use to perform a function of the NBBA are not reimbursed
the cost of those supplies may be deductible.
to or from an event is deductible. Qualifying expenses include gasoline
for your car and fares for taxis or public transportation.
If you drive your own vehicle to transport players or equipment,
you can use a special IRS mileage rate to calculate a charitable contribution
use of your car. This special rate is currently 14 cents per mile.
- The costs for
traveling, rooms, and meals while serving as a delegate for a nonprofit
organization can be deducted.
- Umpires and field officials traveling to the World Series can deduct
the cost of airfare and rooms minus the cost of reimbursement.
- Other expenses
that may be deducted are the cost of uniforms and training equipment.
- When making a donation of money, it's a good rule of thumb to pay
by check, rather than cash, and make sure that the check is payable
to the charity--not the person collecting the money or a company
of another name. Also be sure to get a receipt for your donation and
keep it with
your cancelled check.
- If you take a deduction for out-of-pocket expenses you incurred incident
to your performance of services for a charity, it is important
to have receipts to document expenses. It is also a good idea to get
acknowledgement from the charity for the services you provide.
- If you use the
IRS Mileage Rate for your deduction of transportation keep detailed
records of your Mileage for each trip.
- If you give more than $250 – either
in cash, property, or expenses you had to pay in order to volunteer,
you must obtain a written
acknowledgement or receipt describing what you gave from the charity
itself. If you
received goods or services in exchange for a contribution of $250
or more, the
acknowledgement should describe them, and estimate their value
(unless they would be considered insubstantial). You will need
to subtract their estimated value from the amount you claim as
a deduction. You should not attach the acknowledgment to your income
tax return, but
must keep it in your personal records in case you are asked to
your contribution later. There are additional rules regarding
gifts of non-cash items worth more than $500. Please consult an accountant
IRS for more details.
The above info was gathered from Traderstatus.com for
the 2005 tax year. To be eligible to deduct volunteer expenses you have
to itemize your deductions. Please consult an accountant or the Internal
Service for more information.