Let’s say you are LeBron James. And you/Lebron, volunteer often for your favorite charity. Can you deduct the value of your services?
No, not even a superstar athlete can deduct the value of his services. The IRS does not allow a charitable deduction for volunteering your time. However, out of pocket expenses relating to volunteering are deductible.
Out-of-pocket expenses are deductible if the expenses are:
- directly connected with the services;
- expenses you had only because of the services you gave; and
- not personal, living, or family expenses
Examples of out of pocket charitable expenses which may be deductible include the cost of transportation (including parking fees) and supplies used in the performance of your services.
As with other donations, keep good records. Documentation is key.