Volunteer Mileage Rules Examined
February 22, 2010 | Read Time: 1 minute
The federal Congressional Research Service has issued a report that outlines the basic questions the House and Senate should consider in reviewing the tax provisions for people who use their cars and other vehicles as part of their volunteer efforts. Under federal law, volunteers who drive their car for charitable purposes may deduct 14 cents a mile for their car costs or they can be reimbursed by a charity at that rate tax-free. That rate has remained the same since 1998. In recent years, key members of Congress have sought to increase the standard mileage rate for charitable activities.
The Internal Revenue Service continually adjusts the mileage rate for business, medical, and moving expenses to account for inflation and other costs, but it has not had the authority to change the volunteer rate without Congressional approval since 1984.
The business rate is currently 50 cents per mile; the rate for medical and moving expenses is 16.5 cents.
The Congressional Research Service report was made available by the Pennsylvania Association of Nonprofit Organizations on its Web site, which provides background and analysis of the topic at http://www.pano.org/publicpolicy/publicpolicy-irs_CRR. php.
