Tax Tip: How Volunteering Can Lower Your Tax Bill
Today's tax tip answers a question you were too embarrassed to ask.
— -- While volunteering can be rewarding for both you and those you help, you shouldn't expect to receive much more than gratitude in return when it comes time to file your taxes.
There are "not big benefits from a tax standpoint,” said Tom Wheelwright, the CEO and founder of the CPA firm ProVision.
“Your time is not deductible,” he said, and here's why: "You don’t have to pick up any income for it."
However, you may be able to write off some taxable expenses.
“With your volunteering there are some other things that you can take advantage of, depending on the nature of it,” said Kathy Pickering, executive director of The Tax Institute at H&R Block.
For instance, you can deduct the costs associated with your travel, especially if you're using your car.
“Say, for example, you’re volunteering for Meals on Wheels, where you’re required to travel as a part of your volunteer services. You’re able to deduct that mileage," Pickering said.
And, she adds, volunteering is always good for the soul.