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I, too, figure $3.00 per card for Operation Write Home. I feel like that is a fair price also. Doesn't it feel good to know our time and talents that we share with others can also be a tax deduction! An added bonus...but I'd do it even if I couldn't deduct the costs. It's definitely a good feeling to give of oneself.
I get the deduction form from a couple avenues I supply..it is always a very large amount every year. It makes up for the cards I send to the troops that there is no deduction for but LOTS of satisfaction in knowing there are a lot of smiles in every box I send.
blessings.
Technically, you cannot deduct anything for your time. So, if that $3 is including a price on your time, you should not deduct it. Just like you would not take a deduction if you went and volunteered your time at a local homeless shelter. The IRS values things a lot lower than what most people think is reasonable, so be careful. They also require that you keep a record of the items donated, so you should have a record of the paper used, etc. That way you have proof of what the materials used cost. Chances are the IRS will never question it, but if they do, the burden of proof is on you to come up with the records. (ok, I have obviously had too much tax training in the last 2 weeks because I sound like I swallowed the IRS codes - better go stamp so brain returns to normal)
__________________ Martha
"When you recover or discover something that nourishes your soul and brings joy, care enough about yourself to make room for it in your life." Jean Shinoda Bolen
Technically, you cannot deduct anything for your time. So, if that $3 is including a price on your time, you should not deduct it. Just like you would not take a deduction if you went and volunteered your time at a local homeless shelter. The IRS values things a lot lower than what most people think is reasonable, so be careful. They also require that you keep a record of the items donated, so you should have a record of the paper used, etc. That way you have proof of what the materials used cost. Chances are the IRS will never question it, but if they do, the burden of proof is on you to come up with the records. (ok, I have obviously had too much tax training in the last 2 weeks because I sound like I swallowed the IRS codes - better go stamp so brain returns to normal)
I understand what you're saying and you've have much more training in this than I have. I know that the IRS doesn't allow you to deduct the value of your time. But the IRS does allow a deduction for the "fair market value" (FMV) of what is donated, correct? For example, if I donate a pile of lumber, I can only deduct the value of that. But if I turn that pile of lumber into a piece of furniture (like a dresser or a coffee table), I could deduct the FMV of a dresser or coffee table, couldn't I? I'm the one that turned it into furniture, but it's still furniture and has that value to the charity.
You raise an interesting point and it's really a gray area. It's better to be conservative, but I believe Amber (sprtchk) has said she has been audited with no problem.
We were audited a couple years ago (2 I believe) and all of our deductions stood up to the intense scrutiny of the IRS person. I had all my receipts and everything in perfect order. The IRS agent said he was impressed. We had no issues with our return or the amounts we deducted for donations including the very large amount I have every year for card donations.
blessings.
Operation Write Home and other tax donation questions`
