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New Member
posted May 31, 2019 5:58:29 PM

I am a volunteer driver for a company that provides medical transportation services. I am reimbursed for my mileage at less than the federal rate. Is this taxable?

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8 Replies
Level 15
May 31, 2019 5:58:29 PM

If you volunteer for a non-profit organization, the amount you can deduct for mileage spent on their behalf is 17 cents per mile, much lower than the standard rate for employees and self-employed.

If you volunteer for a for-profit company you can't take a charity deduction for your mileage.

Whether you volunteer for a company or a non-profit, you do not need to report their reimbursement of your expenses as taxable income as long as the reimbursement is "accountable."  That means you have to submit proof in the form of expense records, a mileage diary, trip reports, or something similar.  They can reimburse you up to your actual cost and it is not taxable income to you.  If the reimbursement is not accountable (such as, they pay you a stipend regardless of how many miles you travel) then you are an employee or contract worker and the payments are taxable.

Since you are not an employee, you can't take an additional tax deduction for the difference between the reimbursement and the standard rate.  You just get what you get.  (If you are volunteering for a qualified non-profit and the reimbursement is less than 17 cents, you can claim that difference as a donation to charity.)

Alumni
May 31, 2019 5:58:31 PM
New Member
May 31, 2019 5:58:33 PM

So, if I understand Opus 17 correctly, If I am submitting a daily mileage report prior to reimbursement, it is not considered taxable income?

Level 15
May 31, 2019 5:58:35 PM

right.

Alumni
May 31, 2019 5:58:37 PM

it is not considered taxable income?

I'm assuming you're not an employee.  The IRS "accountable plan" rules wouldn't apply to you.  As noted in Publication 463, in an accountable plan  "Your expenses must have a business connection — that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer."  Nonetheless, I can't see any income from the plan you propose.  If you're reimbursed for your costs at less than the business rate you wouldn't have a deduction (as the charitable rate is $0.14/mile), but that still doesn't make any reimbursement under the business rate to be treated as income.




Level 15
May 31, 2019 5:58:38 PM

I do think the "accountability" rule applies to charities (as I was a treasurer of one) insofar as determining whether money paid to staff (including volunteers) is income or reimbursement.  Someone who was paid (let's say) $50 per day to drive patients, without any accountability, would probably be considered to be receiving compensation subject to a 1099.  By taking receipts and only reimbursing for actual mileage, and as long as the reimbursement is not excessive (the inurement principle) the charity avoids this problem and the money is not taxable income to the volunteer.

If the mileage reimbursement was more than the federal rate, the difference might be taxable income.  If the mileage is less than the federal rate, it's just a non-taxable reimbursement.

Level 9
May 31, 2019 5:58:40 PM

This link seems to indicate volunteers qualify for an Accountable Plan:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/charities-non-profits/exempt-organizations-compensation-of-officers">https://www.irs.gov/charities-non-profits/exempt-organizations-compensation-of-officers</a>

I suspect "business connection" is referring to fulfilling the purposes of the organization, excluding any personal mileage.

Alumni
May 31, 2019 5:58:41 PM

Good find, Bill - Thanks.