Tax Deductions for Volunteers

Volunteers may deduct non-reimbursed, out-of-pocket expenses directly related to their volunteer services, if they itemize deductions. Volunteer service or other charitable donations must have been contributed to, what the Internal Revenue Service terms, a qualifying organization. This includes government agencies and organizations operated only for charitable, religious, educational, scientific or literary purposes.

Examples of the types of expenditures that volunteers may deduct on their tax returns include:

• Bus and cab transportation expenses
• Personal auto mileage or expenses for gas and oil
• Parking costs and toll fees
• The cost and expenses of the upkeep of special uniforms
• Supplies purchased to perform volunteer duties
• Non-cash contributions of property
  (e.g. clothing, books, household items, equipment, etc.)

Volunteers may deduct auto expenses at the standard rate (check current IRS rate for mileage reimbursement) or on an actual expense basis (cost of gas and oil). Volunteers may not deduct general auto repair and maintenance expenses. Good record keeping is a must for volunteers who intend to claim auto-related deductions. For specifics, check with the local IRS office.

Reprinted from the North Carolina PTA Guide for Volunteers Handbook, 2005
For more information, please refer to IRS Document 526, “Charitable Contributions”