Can volunteers deduct COVID-19 related expenses?

by Arpit U. Tax Accountant

COVID-19 has got under control because a lot of efforts were put into it. Volunteers played a very important role in achieving it. In this blog, we are going to talk about the expenses where the volunteers can get a deduction. On many occasions, volunteers spend money from their pockets. As everyone is facing a shortage of cash right now, this article becomes very important for all. In case of any doubt, they can go to the official site of tax accountant Melbourne for more information.

These are the things that should be considered by Valerie:

Travel Expenses: This is the first thing that you do when you are a volunteer. Once you get out of your home, you can have the travel expenses but there are some suitable habits that any volunteer should have. Once you get out of the home, you should save every receipt that you get after making a payment. Deductions are very easy to get if you are eligible for that but in times of audit, all that you have are those receipts.

If a volunteer is driving his/her own vehicle, no deductions are available for insurance and other repair costs. Though they can get a deduction for the gas they have used in these charitable works. Deductions for repairs are allowed only when the repair is required for the charitable works. Keep in mind that the eligible vehicles for this purpose include motorcycles, panel truck, pickup, and a van.

All the documents that you are about to present for getting a deduction should be as per the norms set by the IRS. The standard rate for mileage allowance that you can get is 14 cents for a mile.

Valerie may also get deductions for the parking fees and the money that you pay for road tolls. And Valerie is advised to drive carefully as there are no deductions for traffic tickets.

No matter how much money you spend during this process, you should always keep in mind that record keeping will be very helpful for cases when the authorities doubt your claims.

The rules set for getting a deduction in this process are such that any Valerie will get deductions only when her primary purpose is volunteering not anything else.

Source: https://theaccountantsmelbourne.wordpress.com/2020/11/17/can-volunteers-deduct-covid-19-related-expenses/