Are You a Volunteer? You Could Benefit from Tax Breaks
By Taxation Solutions, Inc. on 2016-12-27
Have you volunteered your time for a charity in the past year? If the answer is yes, you could qualify for some tax breaks that will help to lower your taxable income!
If you’ve volunteered at a charity this tax year, there are certain expenses you may be able to write off on your taxes. While you cannot claim a tax break for the value of the services you performed while doing charity work, you can claim some out-of-pocket expenses incurred while you were performing the services. These expenses can include:
- Travel expenses, such as airfare or taxi fare
- Entertainment expenses, such as meals
- Transportation expenses, such as gas, tolls, and parking fees
Keep in mind, though, that there are certain restrictions when it comes to taking such tax breaks. For each one of the aforementioned expenses, your primary purpose must have been in serving the charitable organization. If, for example, you traveled via plane to do work for a charitable organization, you can only claim the tax break if that was your only purpose on the trip and your services did not involve lobbying.
Because there are deduction limits and substantiation rules to comply with, it’s always best to talk to a tax planning specialist before claiming any tax breaks for charitable work. If you’ve been considering writing off some expenses related to charitable work that you’ve done this past year, contact Taxation Solutions, Inc. today. We’re ready to discuss any questions you might have and help you find tax breaks that apply to you!