An often overlooked charitable deduction is the deduction for mileage driven for charitable purposes.
Taxpayers can take a deduction of 14 cents/mile for mileage driven in giving services to a charitable organization, or taxpayers can take a deduction for the actual cost of gas and oil associated with giving services to a charitable organization. A deduction of 14 cents/mile isn’t huge but it is an extra deduction that’s available.
Iowa taxpayers are allowed to take 39-cents per mile as a deduction. (Technically, the Iowa deduction is the standard 14-cents per mile as an itemized deduction, and then you can take another 25-cents per mile as an additional deduction. The net effect is 39-cents per mile.)
You volunteer to answer the phones once a week for a charitable organization. The organization’s office is 10 miles from your home. You can claim 20 miles (10 miles each way) as a deduction each week. If you do this 52 weeks a year, that would be 1,040 miles. At 14-cents per mile, the charitable mileage deduction would be $146. If you live in Iowa, your total mileage deduction on your Iowa return would amount to $406.