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Newsletter
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By Joshua Goodwin
As many of you have undoubtedly noticed, gas prices have been skyrocketing upward recently and are predicted to continue to do so over the next several months. In fact, at the time of this article oil prices are at a 21 year high. As we enter into the summer travel season these high gas prices make it much more expensive to travel. If you choose to drive, you have to pay more each time you fill up your vehicle. If you choose to fly, you have to pay higher airline ticket prices.
For saints in the Body of Christ, summer is a very busy travel time. It seems like there are meetings scheduled almost every week. Of course we would like to be able to attend everyone of them, but due to budget/time constraints that often isn’t possible. Now with escalating gasoline prices, the costs to attend these meetings are increasing considerably. Unfortunately, this article doesn’t include any secrets about how you can pay less for gasoline. However, there is a way that some people can get Uncle Sam to help reduce the cost of attending a church meeting.
That’s right! The U.S. government can help pay for a portion of your expenses to go to a church meeting.
As many of you probably already know, you are able to deduct charitable contributions that you make throughout the year on Schedule A of your annual tax form. For many Bible-believing individuals that believe AND practice tithing this can be a sizeable sum each year. Many individuals save hundreds and even thousands of dollars each year in taxes due to these charitable contributions. For a tithing family that has an annual household income of $40,000, they would end up reducing their taxes by $600 if they only gave 10% of their income to the Lord. ($4,000 * 15% Marginal Tax Rate = $600)
However, the money that you give to the church via tithes & offerings isn’t the only charitable contribution that you can deduct. The U. S. tax code (Publication 526) also allows you to deduct reasonable travel expenses incurred while doing charitable work. This specifically includes overnight travel as an official delegate to a church meeting.
There are 3 primary requirements that allow you to qualify to deduct these travel expenses. 1) You must be attending the church meeting as an official representative. 2) You must spend a significant amount of engaged in the charitable work. 3) The trip must require you to be out of town overnight.
The first requirement, that you be attending that church meeting as an official delegate/representative, is really key to being able to deduct these travel expenses. You can’t just attend a meeting as regular church member and be able to write the whole trip off as a charitable contribution. However, if you go to a meeting and volunteer as an usher, kitchen worker, nursery worker, etc. you would be able to qualify as an official church representative. This is interpreted as working on the behalf of your local church as an official representative at the church meeting.
The second requirement is that you spend a significant amount of your time engaged in charitable work. This requirement was designed so that only people that are going specifically to the church meeting could deduct their travel expenses. So if you are planning on attending a church meeting while on a family vacation, then you won’t be able to deduct these expenses. The final requirement is that it be an overnight trip. So if the meeting occurs in a location that wouldn’t require you to be gone overnight, then you won’t be able to deduct your travel expenses.
So what benefits do you get from serving the Lord by volunteering your services at church meetings? Well, the I.R.S. identifies the following as deductible travel expenses:
1) Air, rail and bus transportation. 2) Out-of-pocket expenses for your car 3) Taxi fares or other costs of transportation between the airport or station and your hotel 4) Lodging costs 5) The cost of meals
The first and third items are pretty self explainable. You can deduct the amount you spent on the plane ticket to get to the meeting and any expenses incurred in getting to and from your hotel.
For the second item, the I.R.S. allows you the choice of either deducting your actual expenses (gasoline, tolls, etc.) or you can just use a standard mileage rate of $.14/mile. However, you must keep a written record of your expenses. This record will need to include the name of the organization that your volunteering your services to, the dates you used your car for that purpose, and the mileage that you drove to perform this service. Many tax-preparation offices, like H&R Block, offer free mileage record books that allow you to keep track of this information easier.
The last two items (lodging and meals) are slightly more complex. These expenses are only deductible for the person performing the service. So you will need to make sure and keep your expenses separate from the rest of your family.
Example: My family and I drive to a church convention in Toronto, Canada. During the meeting, I volunteer and serve as an usher. This will entitle me to deduct my travel expenses as a charitable contribution, but not those of my family’s. I could claim $.14/mile for the 1800 mile trip. I could also claim my (not my family’s) meal and lodging expenses. These amounts can be included with the amount that I donated to charity (tithes/offerings) on line 15 of Schedule A when I file my tax forms next year.
So there can be more than just spiritual benefits to attending meetings. You just have to be willing to participate and help serve God’s people. If you would like more information on this topic, you can visit the I.R.S. website (www.IRS.gov) and search for Publication 526.
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