IRS experts - why isn't 'volunteer' time tax-deductible?

[Tre]

If I donate money to a non-profit, it's tax-deductible.

If I donate time - even valued at minimum wage - it's not.

Please explain.  Thanks in advance.

[Heywood]

If I donate money to a non-profit, it's tax-deductible.

If I donate time - even valued at minimum wage - it's not.

Please explain.  Thanks in advance.

Your time is not deductible because Congress says it is not.

If you have out-of-pocket expenses, keep the receipts, and those can be deducted as cash contributions to a charitable org.  Auto mileage may be taken at $0.14/mile - the charitable standard rate.

[erokyrwrld]

Because your "time" has no intrinsic value unless you are working in a professional capacity.  As a lawyer, I bill out at $300/hour.  If I'm slopping food into bowls at the local soup kitchen, is my time worth as much?  Perhaps morally yes, but in reality no.  Its called voluteer work because you are voluteering your time with no expectation of remuneration.  A tax deduction is a form of remuneration.

[Man of Steel]

If I donate money to a non-profit, it's tax-deductible.

If I donate time - even valued at minimum wage - it's not.

Please explain.  Thanks in advance.

I think it amounts to being able to apply a true value to your time spent volunteering (sure you can use minimum wage to apply value), but that time could be completely unsupervised and without boundaries so the majority of it could be spent drinking beer.  If you donate $3 you have a direct measure/offset with which to calculate deductibility, but with time it's difficult.   I suppose you could keep a log of hours volunteered and apply a value based on minimum wage much like people keep mileage logs for business use of cars.   Really it's not that different than donating clothes and stuff to the Salvation Army, receiving a receipt and then applying your own value of the donated items and using that value for a tax deduction.  I guess because you can exactly measure the value of cash and approximate a fair value of something like a clothing donation it's allowed (there's a tangible offset to the value you apply), but the value of time is both subjective and somewhat intangible.....it's easier to exaggerate and/or fabricate a value.

[Heywood]

Offhand, I cannot think of anywheres in the Internal Revenue Code where one can deduct one's time used in an activity.

For example, let's say you start a business and devote 1,000 hours to it.  You make very little money in it, and you must pay tax on it.  You cannot deduct your time spent in that business.  You have no tax basis in your time.

[dr.chimps]

If I donate money to a non-profit, it's tax-deductible.

If I donate time - even valued at minimum wage - it's not.

Please explain.  Thanks in advance.

Hehe. Sainthood is not for everyone, Tre. 

[Tre]

Hehe. Sainthood is not for everyone, Tre. 

True, true.

What this means is that I'm better off working and earning more in order to take a larger deduction each year. 

I'm the first to admit that I don't volunteer nearly enough these days.  Back when I was younger and thought I was white (j/k!), I used to do a lot of volunteer work.  And of course, I was broke. 

Now, it's easier to just write a check to the groups I wish to support.  I know it sounds wrong of me, but if there was a tax credit for it, I'd be more likely to do more volunteer work.  I think the same is probably true for a lot of people.  And if you think about it, if non-profits had more volunteer labor at their disposal, they'd be able to more effectively pursue their missions.

[Alex23]

on form 1092 section 3 also known as the "Bluto clause":

"All expenses resulting from volunteering at 'men only establishments' such as day spa, massage parlors or glory hole studios cannot be added as deductions."

[gordiano]

on form 1092 section 3 also known as the "Bluto clause":

"All expenses resulting from volunteering at 'men only establishments' such as day spa, massage parlors or glory hole studios cannot be added as deductions."

LOL

How about Gay-4-Charity?

[E N A N T H A T O R]

If I donate money to a non-profit, it's tax-deductible.

If I donate time - even valued at minimum wage - it's not.

Please explain.  Thanks in advance.

Let me explain


















Live with it bitch!

[danielson]

Hmm, volunteering to moderate on Getbig 60 20 hours a week, that could add up.