Maximize Deductions For Charity Travel

If you travel for charity, you may be able to lower your taxes.

Here are some tax tips that you should know about deducting charity-related travel expenses:

• Qualified Charities.  To deduct your costs, you must volunteer for a qualified charity. Most groups must apply to the IRS to become qualified. Churches and governments are generally qualified, and do not need to apply to the IRS. Ask the group about its status before you donate. You can also use the Select Check tool on IRS.gov to check a group’s status.
  
  
• Out-of-Pocket Expenses.  You may be able to deduct some of your costs including travel. They must be necessary while you are away from home. All  costs must be:

o Unreimbursed,

o Directly connected with the services,

o Expenses you had only because of the services you gave, and

o Not personal, living or family expenses.

• Genuine and Substantial Duty.  Your charity work has to be real and substantial throughout the trip. You can’t deduct expenses if you only have nominal duties or do not have any duties for significant parts of the trip.
  
  
• Value of Time or Service.  You can’t deduct the value of your time or services that you give to charity. This includes income lost while you serve as an unpaid volunteer for a qualified charity.
  
  
• Travel You Can Deduct.  The types of expenses that you may be able to deduct include: o Air, rail and bus transportation, o Car expenses, o Lodging costs, o Cost of meals, and o Taxi or other transportation costs between the airport or station and your hotel.
  
  
• Travel You Can’t Deduct.  Some types of travel do not qualify for a tax deduction. For example, you can’t deduct your costs if a significant part of the trip involves recreation or  vacation.

For more on these rules, see Publication 526, Charitable Contributions. You can get it on IRS.gov/forms at any time.

IRS Tax Tips provide valuable information throughout the year. IRS.gov offers tax help and info on various topics including common tax scams, taxpayer rights and more.


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IRS Collection Or Audit Notice - Letter: Don't Wait Get The Help You Need

Keep these important points in mind if you get a letter or notice:

• Don’t Ignore It.  You can respond to most IRS notices quickly and easily.
  
  
• Follow Instructions.  Read the notice carefully. It will tell you if you need to take any action. Be sure to follow the instructions. The letter will also have contact information if you have questions.
  
  
• Focus on the Issue.  IRS notices usually deal with a specific issue about your tax return or tax account. Your notice or letter will explain the reason for the contact and give you instructions on how to handle the issue. You can learn more about your notice or letter on IRS.gov.
  
  
• Correction Notice. If the IRS corrected your tax return, you should review the information provided and compare it to your tax return.

If you agree, you don’t need to reply unless a payment is due.

If you don’t agree, it’s important that you respond. Follow the instructions on the notice for the best way to respond to us. You may be able to call us to resolve the issue. Have a copy of your tax return and the notice with you when you call. If you choose to write to us, be sure to include information and any documents you want us to consider. Also, write your taxpayer identification number (Social Security number, employer identification number or individual taxpayer identification number) on each page of the letter you send. Mail your reply to the address shown on the notice. Allow at least 30 days for a response.

• Respond to Requests about the Premium Tax Credit.  The IRS may send you a letter asking you to clarify or verify your premium tax credit information. You should follow the instructions on the letter. For more information about these letters, see the Understanding Your Letter 0012C page on IRS.gov/aca.
  
  
• You Don’t Need to Visit the IRS.  You can handle most notices without visiting the IRS. If you have questions, call the phone number in the upper right corner of the notice. Have a copy of your tax return and the notice when you call.
  
  
• Keep the Notice.  Keep a copy of the IRS notice with your tax records.
  
  
• Watch Out for Scams.  Don’t fall for phone and phishing email scams that use the IRS as a lure. We will contact you about unpaid taxes by mail first – not by phone.  Be aware that the IRS does not initiate contact with taxpayers by email, text or social media.

IRS Tax Tips provide valuable information throughout the year. IRS.gov offers tax help and info on various topics including common tax scams, taxpayer rights and more.
Additional IRS Resources:

• Tax Topic 651 – Notices – What to Do
• Tax Topic 653 – IRS Notices and Bills, Penalties and Interest Charges
• Understanding Your CP2000 Notice
• Understanding Your Letter 0012C

IRS YouTube Videos:

• Receive a Letter from the IRS? – English | Spanish | ASL

For help with your legal needs contact a business, tax, and health care law attorney at the offices of AttorneyBritt.

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