Any taxpayer, who makes a contribution to church, or qualified charity, is entitled to take a charitable deduction on their income tax return. This is subject to certain limits, but generally if you itemize deductions on your tax return you get the deduction. Before arriving at the tax deductible amount, you must make a careful examination of the question what is a charitable deduction?

A contribution in cash or check would qualify and this is generally known. There are some other things not so obvious that are also deductible. If you contribute merchandise or other stuff this is also a deduction. For instance if you contribute a table and chairs to church, the fair market value would be a charitable contribution. The value of a turkey you donate to the thanksgiving dinner would also be a deduction. A contribution in kind is a tax deductible charitable contribution. Mileage is another church contribution many church members make. The IRS allows 14 per mile driven as an allowable charitable deduction. You must however keep a written record. Generally marking your calendar and noting the trips made for church business is an acceptable method. You must be driving; you do not get a mileage deduction for being a passenger. When is mileage allowed as a deduction?

Driving to church for a worship service is not a deduction this is considered a personal expense and does not benefit the organization. Members who drive to church for a work Saturday most certainly qualify for the charitable mileage deduction. Church council or committee members driving to church for meetings would also qualify to deduct mileage. Generally anytime you drive to church and work for the organization, the mileage would be considered a charitable contribution. Miles driven that benefit a specific individual are not a contribution to the church. Therefore picking up someone and driving them to church is not deductible as mileage.

The dividing line on what is deductible can get a little fuzzy out on the edges. The communion assistant and organist on Sundays when they are performing services have deductible mileage. Sunday school teachers probably can deduct mileage; ushers probably cannot because the work content of their duties at church is outweighed by the personal benefit of their attendance. A written record of activities should be kept. If they look hard, and keep some records most active church members can usually find more deductions than just the cash and checks they put in the offering plate.

John Murray is a Minnesota CPA who has practiced public accounting for over 30 years. He is the author of numerous tax articles, has taught accounting at the community college level and is the author of a book Lake Superior Wow! A kids guide to 99 fun things to do in Duluth and along the North Shore, Marlor Press 1993. http://www.JohnMurrayCPA.com

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