Deduct more for mileage--except when you volunteer
The IRS recently took the unusual step of announcing a mid-year increase in the standard deductible mileage rate for business, medical, and employee moving expenses. The main reason--no surprise--is the recent dramatic increase in oil prices. As of July 1, if you drive for business, you can deduct 58.5 cents per mile, up from 50.5 cents per mile. Folks who drive to and from medical providers, or move for a job, can deduct 27 cents per mile, up from 19 cents.
The IRS hasn't changed the deductible charitable mileage rate, however. It remains at 14 cents per mile. The IRS says it cannot alter that rate because it's set by statute.
That seems unfair to the millions of volunteers who contribute time (non-deductible) and energy (also non-deductible) to good works for charitable organizations. Especially as the economy sours and charitable organizations may be asked to do more with less, volunteers deserve the same break as folks who drive for business or medical needs. Congress should change the law to allow the IRS to make inflationary changes to deductible charitable mileage as often as it changes other deductible mileage rates. It's only fair.
What's your view? Should volunteers get the same break as businesses, folks going to the doctor, and individuals who move for a job?
--Tobie Stanger
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Posted by: Nunya Bidness | Jun 24, 2008 5:44:37 PM
Get rid of the income tax and the IRS, and you don't have to worry about deductions. See www.fairtax.org.
Posted by: Mark Espinola | Jun 25, 2008 3:30:02 AM
This latest IRS standard deductible mileage rate is a joke, considering gasoline is over $4 a gallon and in some states well over $5 a gallon. Based on the current pump prices the IRS mileage rate should be no less than 80 cents per mile, not 58.5 cents a mile.
Posted by: kathy | Jun 25, 2008 12:42:51 PM
NO don't think so
Posted by: Ken | Jun 25, 2008 2:23:12 PM
Why shouldn't people who volunteer for charitable orginizations get less? When I traveled for business but got milage, I was paid while I traveled. Now that I give my time freely to help others, I get less allowed for my travel. At $4 per gallon, I thought about giving up my volunteer work. But that would only hurt the people I serve.
Posted by: taxguru | Jun 25, 2008 7:47:54 PM
There is an interesting business tool provided by this web site http://www.MileageLogger.com that will capture that business mileage automatically, no need for pen and paper.
Posted by: KatiMarie | Jul 12, 2008 8:34:55 PM
Some non-profits are composed of 95% volunteers (like Red Cross & Meals-on-Wheels). Imagine where we would be without them! This pitiful deduction combined with the increase in the cost of gas (& everything else) has already caused me and a number of my retired friends to drastically cut back or cease volunteering for these organizations. We are already on fixed incomes with no COLAs. The very least the gov't could do is raise this deduction.
Posted by: Irene | Oct 16, 2008 11:22:34 PM
If the non-profit organization for which one volunteers has not applied for formal tax-exempt status (called 501(c)(3) status, for the section of the federal tax code that non-profits qualify, there's no guarantee that the IRS will consider contributions like mileage, tax-deductible.
The non-profit for which I volunteer finds the IRS application process and maintenance of 501(c)(3)status cumbersome, complicated and costly (accountant's fee).
There is no guarantee that the mileage deduction will be allowed if, as and when the volunteer's tax return is audited.