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Ny Tax Forms 2009

Question: Taxes on volunteer work?

My mother drives elderly folks to appointment as a volunteer for Clinton County. The county (in NY) now tells her (in 2010) that she needs to give them her SS# so they can do up a 1099 form for her for the year 2009. She was never informed that she would be held responsible for any taxes as this was volunteer work. They reimburse her for mileage and the paperwork states as such…. it’s volunteer. Can she be held responsible for taxes on the funds that were reimbursed to her for mileage even though the paperwork states it’s volunteer? If not, what would the 1099 be for? I’m worried because she is on a fixed income. This would be a major blow to her. Thanks!

Answer: As a charitable organization, THEY have to report their expenditures, which is what the 1099 form is. It is “income” for your mother and her mileage qualilfies as a deduction. I’ll check into what she needs to do if she files only an abbreviated Tax Return.
It looks like she will have to include a Schedule A document with her return, no matter which 1040 version she files. The IRS allows $0.14 per mile (plus any actual costs incurred such as tolls and parking) for driving in support of volunteer work. Any amount she receives in reimbursement ABOVE that allowance is considered taxable income.

Rochester NY Tax Day Tea Party April 15th 2009 Montage.