It’s my annual “Taxes from A to Z” series! For the series, I’ll focus on terms that you might see on your tax forms and statements but not necessarily in the headlines. If you’re wondering whether you can claim wardrobe expenses or whether to deduct a capital loss, this is one series you won’t want to miss.
V is for the Value of Time or Services.
When it comes to charitable deductions, you know you can deduct the value of cash or goods that you donate – but what about the value of time or services? The answer? A quick no. You can’t deduct the value of your time or services even if you can easily qualify the value of the time or services. That includes not only the value you might charge for your time or services but also the value of any income that you might have lost while volunteering your services.
The good news is that most out of pocket expenses relating to volunteering your time or services are deductible so long as they’re not reimbursed or considered personal in nature. Out of pocket charitable expenses which might be deductible include the cost of transportation (including parking fees and tolls); travel expenses; uniforms or other related clothing worn as part of your charitable service; and supplies used in the performance of your services. As with other donations, keep good records since documentation is key.
(For more tips on charitable giving, click here.)
