Volunteer Expenses

[drbilly5191]

Hello,

I am in a graduate program. I received a $5000 grant (reported on 1099-Misc) to go to an area impacted by Covid-19 for an internship and provide aid.

I am curious if there is any way to deduct my non-normal expenses from the income. The $5,000 really just covered travel. I know of course that I cannot deduct my food etc. I was directly performing my profession. 

[Cynthiad66]

Go to Business, Business Income and Expense,

Start with Business Profile 

Then to to Business Income to add the 1099-Misc-

Part I: Income

In this section, you calculate your gross income.

Start by reporting gross receipts or sales for the year, including amounts reported on 1099 forms that  were issued by clients or others for whom you provided services.

Part II: Expenses

This is where good record keeping can really save you money on your taxes. You can write off a wide variety of business expenses you paid during the year, that specifically related to the 1099MISC income.

You can also deduct:

1. Car and truck expenses: You can report these costs in one of two ways: Enter your actual expenses—for gas, oil changes, repairs, insurance, etc.—if you have supporting documentation, or take the IRS standard mileage rate. The rate for 2020 is 57.5 cents per mile.

2. Depreciation and Section 179 expense deduction: The law allows businesses to depreciate—or gradually deduct the cost of —assets such as equipment, fixtures, furniture, etc., that will last more than one year. For these assets, you first fill out Form 4562: Depreciation and Amortization, and enter the result on Schedule C.

You also use Form 4562 if you elect the Section 179 "expensing" deduction. Section 179 lets you deduct the full cost of assets (both new and used) in the year they are placed in service, subject to certain limits.

3. Bonus Depreciation: Bonus depreciation has been changed for qualified assets acquired and placed in service after September 27, 2017.  For qualified assets that were purchased new before September 28, 2017, the old rules of 50% bonus depreciation still apply. The new rules allow for 100% bonus "expensing" of assets that are new or used.