Mileage Deduction for Volunteers Won't Change in 2009

December 01, 2008

Mileage Deduction for Volunteers Won't Change in 2009

People who drive their own vehicles as part of their volunteer work for charities will not be getting any extra tax incentives for their efforts in 2009.

The Internal Revenue Service, in its newly released list of 2009 standard mileage rates, said volunteers could take a deduction of 14 cents a mile on their federal taxes.

The rate is fixed by law. Congress had been considering legislation that would have increased the rate to compensate for increases in fuel prices.

But those efforts have stalled.

According to the IRS, taxpayers are eligible to deduct 55 cents per mile for business miles driven and 24 cents per mile driven for medical or moving purposes.

Do you think Congress should increase the mileage rate for charity volunteers? Click on the comments link below this post to share your thoughts.

— Peter Panepento

Comments

This is a terrible dis-incentive to the many volunteers who not only give their time and talent to charitable organizations, but must now do so in an environment of rising fuel and operating costs. It is another way ordinary citizens are at a disadvantage compared to the wealthy, who receive considerable incentives for monetary contributions and planned gifts. It makes one wonder how much value is really placed on all of hundreds of volunteer hours that keep programs running.

— Pamela Cooper Dec 1, 03:18 PM #
could people maybe volunteer their time and energy at places that are within reach of public transportation, walking, or bicycling? maybe we should also do away with subsidizing the use of the private automobile for business travel.

— r Dec 1, 03:30 PM #
Only allowing volunteers to deduct 14 cents a mile is a disgrace. Their time, the wear and tear on their vehicles, and the fuel cost is just as important as “medical or moving” purposes! Shame on Congress! To encourage volunteering, the rate should as least attempt to keep up with the economic times.

— Laurie M Dec 1, 03:30 PM #
It is almost embarassing to have to tell a volunteer that they can deduct .14/mile. I have been working with volunteers since 1985 and believe that this was the rate when I started. We expect volunteers to fill in the gaps in social service programs but provide no incentive to do so. PS -many areas have no public transportation.

— Carolyn W Dec 1, 04:06 PM #
For shame! Here is another example of destructive policy-making. Volunteers are providing valuable, even life-saving services across the country. Once again the Bush administration evinces callous disregard for valuable services—unless they are provided by the wealthy!

— Richard S. Thill Dec 1, 04:39 PM #
The tax agency said the optional standard rate to calculate deductible operating costs for business vehicles will rise from 50.5 cents a mile to 58.5 cents for the final six months of 2008.

That rate also applies to businesses and others entitled to depreciation allowances that operate automobiles for charitable, medical or moving purposes.
http://www.msnbc.msn.com/id/25335751/
The solution to this inequitable practice is to discharge Congress enacting legislation for rates of charitable organization’s mileage. Instead, IRS includes rate at 50% of volunteer business rate or 29.25 cents a mile.

— Charlotte Liebel, M.Ed.& Psych. Dec 1, 05:10 PM #
There are many reasons that people choose to volunteer their time and talent but it is almost always out of their own selflessness and desire to make a difference in other people’s lives. Being able to take a fair deduction for real expenses incurred is the least that our government could do to show its appreciation for our sacrifices. I’m lucky in that I don’t need the money but I take it as an affront that our time and talent is worth so little to the government as we collectively work to serve the public good.

— Greg Schuckman Dec 1, 10:31 PM #
The real issue here is the fact that from national community service agencies down to local volunteers the message that community service workers receive from their government time and time again is that their time and efforts have little value because volunteering does not produce any monetary profit. It seems that the federal government regards volunteers as a source of free labor to do the work that may not be as glamorous as trading intangible “stocks” on wall street, or as profitable as patenting a new drug that fixes a nonexistent aliment. The real problem here is a question of what we as a nation choose to value. If we say we value volunteerism and community service and outreach then why wouldn’t the actions of the federal government reflect that? It usually is the case that when someone or their work is highly valued the amount of pay, benefits, or recognition they receive is proportionate. This does not seem to be the case with the federal government who are willing to hand out more and more money to corporations who handled their businesses improperly, but will be the first to cut the budget of national service to pay for it.

— Danielle Dec 2, 12:14 PM #

Commenting is closed for this article.

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