Do you plan to donate your time to charity this summer? If you travel for it, you may be able to lower your taxes. Here are some tax tips that you should know about deducting charity-related travel expenses:
Qualified Charities. To deduct your costs, you must volunteer for a qualified charity. Most groups must apply to the IRS to become qualified
Out-of-Pocket Expenses. You may be able to deduct some of your costs including travel. They must be necessary while you are away from home.
Genuine and Substantial Duty. Your charity work has to be real and substantial throughout the trip.
Value of Time or Service. You can’t deduct the value of your time or services that you give to charity.
Travel You Can Deduct. The types of expenses that you may be able to deduct include: Air, rail and bus transportation, Car expenses, Lodging costs, Cost of meals, and Taxi or other transportation costs between the airport or station and your hotel.
Travel You Can’t Deduct. Some types of travel do not qualify for a tax deduction. For example, you can’t deduct your costs if a significant part of the trip involves recreation or vacation.
Courtesy of IRS
For more information contact Neikirk, Mahoney and Smith at 502-896-2999
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