Limitations

• Although the IRS allows you to take deductions for certain expenses related to your volunteer work, you cannot deduct the value of the work itself. For example, if you're a plumber by trade and you help your church build a dwelling for the homeless, or if you're a seamstress and create a quilt for a children's orphanage, you cannot deduct the equivalent of the wages you would receive for these services.
  
  

Deductible Expenses

• While your time is not deductible, any out-of-pocket expenses you incur in service to your church are deductible. This includes materials you purchase to complete projects or supplies you donate to the church: for example, stamps or stationery, fabric you use to sew uniforms or toys you donate to the church nursery.
  
  The IRS also allows you to deduct your mileage in driving to and from your church volunteer work; as of September 2011, the rate was 14 cents per mile. If you don't drive but take a taxi or public transportation to perform your duties, the cost of your fare is deductible.
  
  

You Must Itemize Your Deductions

• To take any deductions related to church volunteer duties, you must itemize them on Schedule A and enter them on Form 1040. The amount of your deduction for materials or out-of-pocket expenses is limited to 50 percent of your adjusted gross income, which is the amount on Form 1040, line 38. You may also deduct cash donations given to your church throughout the year. The church treasurer can provide you with a donation slip documenting your cash contributions.
  
  

Contributions From Which You Benefit

• If you receive a gift or benefit in exchange for your contribution to the church, you may deduct only the amount of your contribution that exceeds the value of the benefit. For example; if you donate materials to your church's car wash and you receive a T-shirt from the event, you must deduct the value of the T-shirt from the cost of your donated supplies.