Is there anything more rewarding than giving back to your community? Whether it’s making a charitable donation or volunteering your time, knowing that your efforts are helping people in need is such a great feeling. In addition to feeling good about what you’re doing, there also may be tax benefits that you can associate with your good deeds? Every year, millions of Americans volunteer and are generous with their money. If you are one of those people, make sure you take advantage of some of the following tax benefits if you qualify for them. Make it simple by hiring professional tax preparation services.
When it’s difficult to find time to volunteer, it may be easier to make a cash donation to a worthy cause. If you choose to donate this way, you need to provide documentation of how much you donated. Qualifying documents include a canceled check, a bank statement or a receipt from the charity. Keep in mind that if you donate $250 or more, a written acknowledgment from the charity is required.
When volunteering, keep track of gas and oil used or the number of miles your vehicle accumulates that are directly associated with your volunteer efforts. Don’t forget to record any toll or parking fees as well. If you use transportation options such as a city bus, an Uber or a train, make sure you keep your receipts, as you can deduct all of these costs. If your volunteer efforts include a trip away, then track airfare, meal costs, and hotel fees so you can deduct those costs too!
If you are required to wear a uniform while volunteering then you can deduct the cost to purchase it (and any costs associated with cleaning it).
If you’re like most Americans, you likely have clothes that you no longer wear just piled up in your closet. If they’re in good condition, you can donate them to your local Goodwill or another charitable thrift store. When donating clothes, your tax deduction is calculated by determining the value of the clothes now, not what you originally paid for them.
As with anything that relates to your taxes, be sure to employ tax preparation services professionals or contact us to get started today!