This blog usually contains information about the SPACE team’s participation in, donation to, and impact on community-related volunteer opportunities.  Well, this time of year it’s prudent to mention that there’s an added benefit to volunteering:  the miles you travel performing volunteer services are tax deductible!

Depending on the agency or community service group you volunteer with, you can either claim reimbursement from them (if they offer), or keep records and take the deduction when you file your itemized return.  The 2010 IRS mileage rate for using a personal vehicle while performing a volunteer service is $.14/mile. 

If you are not requesting reimbursement from your non-profit and you regularly use your vehicle for charitable purposes, you should keep a mileage log in your vehicle to record dates, locations, and miles so that at tax time, the data is right there.  You can create an Excel spreadsheet with the following information:

• Date
• Purpose
• Odometer Start
• Odometer End
• Total Trip Mileage
• Additional Costs (ie, parking, tolls)

Keep a print copy of the spreadsheet in the car to write in the data as you accrue mileage. Remember to update the information on your computer periodically.  At the end of the year, your spreadsheet will have your totals all set for you to use on your tax return.

Be sure to ask your tax professional for the latest information and regulations regarding this and all deductions.  Every little bit helps!