Tax Tip #229

The IRS does not allow a charitable deduction for volunteering your services, even if you can easily put a dollar amount on your time. 

So if, as a CPA, you usually charge $390 per hour and use that time to help a qualified charitable organization, you're allowed a deduction of $0 — that's not a typo. 

However, there is a 14-cent charitable mileage rate. Drive 100 miles round-trip to volunteer for a charitable organization and that is a $14 tax deduction IF you itemize. Moreover, IF you are in the top federal tax bracket of 37 percent, the tax savings is approximately $5 — perhaps enough to cover that cup of coffee purchased on the way to the organization.