Can I deduct donations my company makes based on my volunteering time?

That makes sense but kinda stinks! What about expenses related to volunteering? Like if I drove to the shelter or bought supplies for a volunteer event? Can those be deducted at least?

You can absolutely deduct certain expenses related to volunteering! Out-of-pocket expenses like mileage driven in service of a qualified charity can be deducted (at 14 cents per mile for 2024). You can also deduct unreimbursed expenses for items you purchased directly for the charity's use, as long as you kept receipts and weren't reimbursed. Just make sure the organization qualifies as a charitable organization under IRS rules, and remember that these deductions are only available if you itemize deductions rather than taking the standard deduction on your tax return.

How exactly does that work? Does it just look at receipts and tell you what's deductible or does it actually help with filing too? I volunteer at an animal shelter and spend a ton on supplies.

Sounds interesting but isn't that just what any tax software does? I use TurboTax and it asks about charitable donations and expenses. What makes this different?

It analyzes your receipts, bank statements, and other documents to identify deductible expenses you might have missed. For volunteering specifically, it caught things like special equipment I bought and even a portion of my cell phone bill that was used exclusively for coordinating volunteer activities - stuff I would have never thought to deduct. Unlike regular tax software that only processes what you manually enter, this actually looks for deductions proactively. It's especially helpful with the documentation requirements for charitable deductions since it organizes everything according to IRS guidelines.

Wait, so this service actually gets a human IRS agent on the phone? I've tried calling them 3 times about my charitable deductions and was on hold for over an hour each time before giving up. How much does this cost?

This sounds like complete BS to me. Nobody can magically get through to the IRS faster. They're notoriously understaffed and overwhelmed. I'll believe it when I see it.

Yes, they use some system that navigates the IRS phone tree and waits on hold for you, then calls you when they have an agent on the line. It literally saved me hours of hold time. They're a legitimate service that's been featured in major publications. I was skeptical too until I tried it, but they really do get you through to an actual IRS agent much faster than waiting on hold yourself.

How much do you need to contribute to make a Donor Advised Fund worthwhile? Is there a minimum? I typically donate around $3-4k per year plus volunteering.

Most major investment firms that offer DAFs have minimums around $5,000 to open one, but some are as low as $1,000. At your donation level, it might be worth it especially if you're on the edge of itemizing vs standard deduction. The real benefit comes from "bunching" - where you contribute several years' worth of planned donations in a single tax year to itemize deductions, then take the standard deduction in subsequent years while still distributing money to charities from your DAF over time. This strategy works particularly well with the higher standard deduction amounts under current tax law.

Thanks for mentioning that! I had no idea about the property tax breaks. Do you know how many hours are typically required to qualify? I own a house in Tacoma and would definitely look into that.

It varies by city, but typically ranges from 40-100 hours annually. Tacoma specifically has a "Community Service Property Tax Exemption" program - you'll want to check with Pierce County's assessor office for the exact requirements. Some cities also have utility bill discounts for volunteers. Seattle has a pretty generous program if you're willing to look at other municipalities too. The applications usually need to be submitted by a certain deadline each year, so don't wait too long to look into it!