Out-of-Pocket Church expenses

[clarineted]

As a volunteer coordinator of memorials and director of the Church bell choir, I have had expenses hiring an instrumentalist and buying flowers, etc. for memorials and special services.  These expenses are not reimbursed.  Are they deductible per IRS Publication 526?  The way I read it, they might be, but need confirmation from the community.

Thank you.

[Vanessa A]

Yes, these would be deductible as charitable expenses, but only if you itemize your return.

 Itemized expenses include mortgage interest,  charitable contributions, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.  Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI.  This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.  

Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your charitable donations. 

The 2023 Standard Deductions are as follows:

• Married Filing Joint (MFJ)              $27,700
• Married Filing Separate (MFS)      $13,850
• Head of Household (HOH)             $20,800 
• Single                                                     $13,850                                

Blind or over 65 and MFJ or MFS add $1,500

Single or HOH if blind or over 65 add $1,850

Standard versus Itemized Deduction

[clarineted]

Thank you, Vanessa A.  Would they show up on SCH 1 Part II line 24z?  If they don't affect the Fed if the standard deduction is taken, could they not affect the State return if deductions exceed the CA State standard deduction?

[DMarkM1]

No. They will show up on Schedule A, lines 11-14, as itemized deductions on your federal return.  If the itemized deductions you enter in the federal interview exceed your CA standard deduction, itemized will be used on the CA return even if the standard deduction is used on your federal return. 

[Opus 17]

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@clarineted wrote:

Thank you, Vanessa A.  Would they show up on SCH 1 Part II line 24z?  If they don't affect the Fed if the standard deduction is taken, could they not affect the State return if deductions exceed the CA State standard deduction?

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All donations to charity are reported as itemized deductions on schedule A.  You will not actually get a tax benefit unless your total itemized deductions (including mortgage interest, state and local taxes, gifts to charity, and medical expenses) are more than the standard deduction for your filing status.  If you list your itemized deductions, they will be available for both your state and federal return, and Turbotax will pick whether to use the itemized deductions or standard deduction based on which reduces your taxes the most. 

If audited, it would be very helpful to have a letter from the church acknowledging that you provided these supplies and other costs on their behalf and were not reimbursed.  The church will probably not attest to a specific dollar value, you will have your own receipts for that.  But if audited, the IRS will probably want to see some kind of proof that your expenses for memorials, flowers, music, etc. were actually for the benefit of the church and not personal expenses.