Tax Tip of the Day: Charitable Tax Breaks

The Internal Revenue Service allows several different ways to take tax advantage of your good will.

Driving Home Deductions

Volunteer work itself does not produce a tax deduction. However, your travel expenses getting to and from the volunteer location are deductible. If you use your car to help out once you get there—for example, delivering food to the needy for your church— that counts, too.

You can take a standard deduction of 14 cents per mile on your tax return. Or, if it’s more advantageous and you kept track, you can deduct the actual cost of your gas for your philanthropic driving. With either choice, you also can include any parking fees or tolls paid.

Out-of-Pocket Expenses

If you pay for some of a qualified organization’s expenses and aren’t reimbursed, these costs can count as charitable deductions. This might be buying stamps for a group’s mailings or purchasing office supplies for the organization’s administrative operations.

If your volunteer work requires you wear a uniform—say, as a Red Cross hospital aide—the cost of the clothing and of keeping it clean are deductible.

Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

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About Berrios & Associates, Inc.

Since 1999, Berrios & Associates, Inc. has been providing a distinctive mixture of leadership-knowledge, and customer service satisfying client needs in advisory, tax, and outsourcing. Serving a diverse client base from individuals and sole proprietors to private corporations with nationwide and international locations. In the domain of accounting firms, Berrios & Associates has engraved a distinctive business based on diverse solutions through the interpersonal relationship of corporate and personal tax, corporate back office support, and business growth advisory. The firm directs clients through their everyday operations to ensure they have the right business model in place to meet their business goals.