Tax Tips – Is It Tax Deductible? – Volunteer Services

Tax TipsLearn tax tips so you will be informed and can save money on taxes!

Question – Are volunteering services Tax Deductible?

Example – You are volunteering your services as a carpenter to a non-profit community home-builder. Nice tax deduction, right?

Answer – True or False?

 

The answer is FALSE.

There is no deduction for the value of your time or labor donated to a charity. (Think about it: If you were paid for your labor, you’d have to add that amount to your taxable income. If you then turned around and donated the cash back to the charity, you would earn a charitable deduction to offset the tax bill on the income. The no pay/no deduction rule leaves you in the same position.)Gifts to Charity Donation Tax ReturnBut you can deduct the cost of any materials you donate and 14 cents per mile for using your car in connection with your charitable work.

 

 

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