Travel for Charity Work May Help Reduce Your Taxes
Are you traveling while doing charity work this summer? Many of my fellow staff members and I volunteer in organizations in our communities, and we know from talking with clients during the year that they are also doing volunteer work to support those in need in their communities.
But did you know that travel expenses may help lower your taxes if you itemize deductions when you file next year? Here are five tax tips from the IRS about travel while serving a charity.
1. You must volunteer to work for a qualified organization. Ask the charity about its tax-exempt status. You can also visit IRS.gov and use the Select Check tool to see if the group is qualified.
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; meal costs; and taxi fares or other transportation costs between the airport or station and your hotel.
If you have need further clarification about travel expenses related to your charity work, contact your Whalen tax adviser.