IRS Guidelines for Volunteer Mileage Expenses

Volunteer Mileage Tax Deduction

IRS Guidelines for Volunteer Mileage Expenses

Jun 15, 2007

Estela Kennen

People who itemize their tax deductions can deduct the cost of any un-reimbursed mileage and other travel expenses accrued for the purpose of volunteering.

Volunteers have two options in determining what amount of money they can get a tax deduction for:

Direct expenses, such as the cost of gas and oil
The standard mileage rate, which is 14 cents a mile for 2007. (as of 2011 it was still the same. IRS sets this amount for volunteer work).
Volunteers can also deduct the full cost of tolls, parking fees, cab fares, bus fares, etc. that were accrued in charitable service.

Recordkeeping

It is crucial that volunteers maintain good records of their mileage and other travel expenses. The IRS recommends that volunteers keep the following records for each trip you plan on deducting:

The date
The name of the organization you were helping
If using the standard mileage rate: the number of miles you drove in order to volunteer (you can figure this out by writing down the mileage on the odometer at the start and end of the trip)
If using actual expenses: receipts and proof that the costs accrued were directly related to a charitable purpose
Receipts for any additional costs, such as tolls and parking

Most people find it a lot simpler to use the standard mileage rate. You can create a table or spreadsheet with the following information:

Date
Purpose
Odometer Start
Odometer End
Total Trip Mileage
Additional Costs (ie, parking, tolls)

Keep a print copy of the spreadsheet in the car to use as your accrue mileage. Remember to update the information on your computer periodically. At the end of the year, remember to add up all the mileage and multiply by the mileage rate (currently $0.14)

What is eligible for the mileage deduction?

Any mileage accrued in the service of a charitable organization can potentially count. Unlike employees, who cannot deduct the cost of commuting as “business expenses”, volunteers can deduct mileage traveled from their home to their volunteer site. Volunteers can also deduct any un-reimbursed travel expenses done while volunteering (for instance, while visiting homebound seniors, making deliveries as a volunteer, etc.)

People should be careful not to abuse this benefit. Some travel costs are a hybrid of volunteer service and pleasure. For instance, a person may travel to a theater where she volunteers as an usher, and then stay for a free performance. According to the IRS, because the person would have had to travel to attend the performance anyway, that mileage should not be counted for tax deduction purposes. However, if the same person is a volunteer usher at every show, but only attends one, then the mileage for all the other shows would be deductible.

If you are not sure whether you have a legitimate volunteer mileage deduction or not, ask yourself if you would have incurred the travel expenses were you not volunteering. And, of course, when in doubt, ask a tax professional for advice.

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