How much can I deduct on my tax return for miles I drive for charity? I’ve been driving two hours every weekend to help build houses for a local charity and am wondering if I can take a charitable deduction for the mileage.
In 2016, you can deduct 14 cents per mile you drive to do work for an eligible charity, as well as the cost of parking and tolls. Keep a log of the starting and ending mileage, the date, the name of the charity and the purpose of the trip.
You can deduct charitable contributions only if you itemize, and the charity must be eligible to receive tax-deductible contributions. You can look up the charity's status by using the IRS's exempt organizations search tool.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
You can also deduct other out-of-pocket costs you incur while doing work for a charity, such as the cost of building materials, ingredients for dinner at a homeless shelter, and stamps for a fund-raising mailing. Keep your receipts. You must get an acknowledgement from the charity for out-of-pocket expenses of $250 or more.
See IRS Publication 526, Charitable Contributions, for more information about what you can deduct and the records you must keep.
-
To Future-Proof Retirement Security, We Need Better StrategiesWith retirees living longer and the inequalities that affect women and people of color, the retirement system needs some optimization. Here’s what would help.
-
Here's Why We All Win When Charitable Dollars Go to WomenGiving to charities for women and girls not only has a lasting impact on their lives — it also benefits society as a whole. Here’s how to start investing.
-
It’s Not Too Late to Boost Retirement Savings for 2018retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
-
How to Correct a Mistake on Your RMDs from IRAsretirement If you didn't take out the correct required minimum distribution because your brokerage firm made a mistake, the IRS may show some leniency.
-
Ways to Spend Your Flexible Spending Account Money by March 15 Deadline
spending Many workers will be hitting the drugstore in the next few days to use up leftover flexible spending account money from 2018 so they don’t lose it.
-
Making the Most of a Health Savings Account Once You Turn Age 65
Making Your Money Last You’ll face a stiff penalty and taxes if you tap your health savings account for non-medical expenses before the age of 65. After that, the rules change.
-
Reporting Charitable IRA Distributions on Tax Returns Can Be Confusing
IRAs Taxpayers need to be careful when reporting charitable gifts from their IRA on their tax returns, or they may end up overpaying Uncle Sam.
-
When You Can Expect to Receive Your Tax Refund
taxes The quickest way to receive your tax refund is to file electronically and have the money directly deposited into your bank account.
-
How a Move Can Change Your 529 Plan Tax Deduction
529 Plans The tax deduction you get for contributing to your state’s 529 plan can disappear if you move to another state.
-
Tap an IRA Tax-Free With an HSA Rollover
IRAs You can convert tax-deferred money in a traditional IRA into tax-free cash by rolling it over to a health savings account and using it to pay for medical bills.
