Question

Andrew volunteered for the American Red Cross after a recent hurricane. He traveled 200 miles and helped the victims of the disaster in the clean up for five days. He also donated $1,500 to the American Red Cross, but charged the amount of the donation on his credit card. He plans to pay $300 plus interest each month on the credit card charge, so he will pay $900 of the $1,500 charge by the end of the year. What amounts will Andrew be able to deduct for his charitable contributions

Answer 1

Answer:

B) Mileage for the 200 miles he drove to the ravaged area

C) $1,500 charged to the credit card during the year

E) The cost of lodging while he is volunteering

Explanation:

The IRS allows Andrew to claim a deduction on most of their travelling expenses as long as they do not include personal pleasure or recreational activities.

• Mileage for the 200 miles he drove to the ravaged area : the standard mileage deduction for charitable service is still 14 cents (hasn't changed in many years) = 200 miles x $0.14 per mile = $28
• $1,500 charged to the credit card during the year : it doesn't matter when Andrew finishes paying his credit card bill
• The cost of lodging while he is volunteering: he could also deduct the cost of meals, and other out of pocket expenses as long as he keeps detailed records of them.

Answer 2

Answer: 1.

Mileage for the 200 miles he drove to the ravaged area

2.$1,500 charged to the credit card during the year

3.The cost of lodging while he is volunteering

Explanation: