Travel While Serving a Charity
Posted on Wednesday, August 28, 2013
Although you cannot deduct the value of personal services given to a qualified organization, some of the expenses paid in providing those services may be able to be deducted on your 1040.
The amounts must be:
2. Directly connected with the services,
3. Expenses you had only because of the expenses you gave, and
4. Not personal, living, or family expenses.
One of the more common of these expenses is travel. The IRS recently released five tax tips relating to taxpayers who travel for charity work.
1. You must volunteer to work for a qualified organization. To determine if the organization is qualified, ask the charity about its tax exempt status or you can also visit IRS.gov and use the Select Check tool.
2. You may be able to deduct unreimbursed travel expenses you pay while serving as a volunteer. You can't deduct the value of your time or services.
3. The deduction qualifies only if there is no significant element of personal pleasure, recreation or vacation in the travel. However, the deduction will qualify even if you enjoy the trip.
4. You can deduct your travel expenses if your work is real and substantial throughout the trip. You can't deduct expenses if you only have nominal duties or do not have any duties for significant parts of the trip.
5. Deductible travel expenses may include:
- Air, rail and bus transportation
- Car expenses
- Lodging costs
- The cost of meals
- Taxi fares or other transportation costs between the airport or station and your hotel.
Posted by: Carrie Minnich, CPA
Posted in Mission Minded Nonprofits
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