Volunteer Mileage Reimbursement

Reimbursement payments for mileage to a volunteer driver are excluded from income only to the extent of the amount that the volunteer would be able to deduct as a charitable contribution. The amount that can be deducted as charitable mileage for 2011 is 14 cents per mile. If the actual payments to the volunteer are greater than the 14 cents per mile, the excess amount must be reported as gross income on the volunteer's income tax return. For example, the volunteer drove 500 miles during the year and is reimbursed $150 (30 cents per mile). The volunteer may exclude $70 (500 x 14 cents per mile) and must report as income on his/her tax return $80 (500 x 16 cents per mile).

The income must be reported on a Form 1099 by the payer if it totals $600 or more in a year. The volunteer must report as income all taxable payments received during a year, even if the volunteer did not receive a Form 1099 because such payments were less than $600. Federal Form W-9 is used to request the volunteer's taxpayer identification number.

July 27, 2011