Tax questions

[citizensoldier]

How do I itemize uniform and travel expenses on my taxes?

Thanks,

CS

[RiverAux]

Just include them with your other charitable donations (assuming you have enough other deductions to come out better than you would with the standard). 

[citizensoldier]

Thanks, Just wanted to make sure.  What is a good source for mileage rates?

CS

[RiverAux]

You might have to pull up the publication on charities for that.  I'm going to claim my CAP milage for the first time this year, so need to find that myself. 

[ascorbate]

IRS Increases Mileage Rates through Dec. 31, 2008
http://www.irs.gov/newsroom/article/0,,id=184163,00.html

At the bottom of the page in the last line of the chart: Charitable - 14 cents per mile

[SarDragon]

Go to the IRS site and download Publication 17. Chapter 24 is your biggest friend.

Speaking of deductions, if you don't have enough itemized deductions to exceed the following figures, it won't help you.

Single - $5,450
Married filing separate - $5,450
Married, filing joint - $10,900
Qualifying widow(er) with dependent child - $10,900
Head of household - $8,000

You can deduct the costs of gas and oil that are directly related to getting to and from the place where you are a volunteer. If you don't want to figure your actual costs, you can deduct 14 cents for each mile (the same as it's been for the last few years). Keeping good records is worth the effort.

"You've got people."

[Cecil DP]

Go to the IRS site and download Publication 17. Chapter 24 is your biggest friend.

Speaking of deductions, if you don't have enough itemized deductions to exceed the following figures, it won't help you.

Single - $5,450
Married filing separate - $5,450
Married, filing joint - $10,900
Qualifying widow(er) with dependent child - $10,900
Head of household - $8,000

You can deduct the costs of gas and oil that are directly related to getting to and from the place where you are a volunteer. If you don't want to figure your actual costs, you can deduct 14 cents for each mile (the same as it's been for the last few years). Keeping good records is worth the effort.

"You've got people."

Don't forget that Uniform allowances cover purchase, maintenance (dry cleaning, patches sewn on, etc. If you attend conferences they're also deductible along with the cost of the hotel and airfares. 

[RRLE]

While Pub 17 is your friend, a better friend in this case is IRS Pub 526 Charitable Contributions.

Some specific issues:

1. Mileage rate. If you participated in the Midwestern disaster area the rate is higher then what was quoted. See page 5 of Pub 526.

2. Uniforms. Sorry guys but not all uniform costs are deductible. If the uniform item can be worn as 'everyday' wear then it is not deductible. The items most likely to fall into this area are uniform pants and shoes. Whether you ever wear them in non-CAP activities is irrelevant to the IRS. The fact that you could is enough to lose the deduction. Shirts, espeicially if they are a special style (aviator) may be deductible. Anything with patches/insignia permanently sewn on is probably deductible.

3. Equipment is an even dicier propositon. It must meet 4 tests to be deductible. The expense must be:

Unreimbursed;
Directly connected with the service;
Expenses you had only because of the the following requirements; and
Not personal, living, or family expenses.

The third test can tough to meet since so much equipment is multi-use. Proving that it was only because of your CAP service could be difficult.

You could take the deducition and hope you are not the 1 in 90 who gets audited. If you do get audited and lose then you would have to pay the back taxes plus possible interest and penalties.