During February and March,Jade spends approximately 90 hours of her time volunteering her time at the Salvation Army (a public charity)preparing tax returns for low-income families.As a CPA,Jade normally bills her clients at $130 per hour for her time.Jade also drives her car a total of 800 miles in performing her voluntary work.Jade's deductible contribution is
A)$0.
B)$112.
C)$11,700.
D)$11,812.

Question

Quizplus · Accepted Answer

Jade cannot deduct the value of her time, even though as a CPA she usually bills her clients at $130 per hour. However, she may deduct expenses incurred in performing her voluntary work.

The standard mileage rate for tax year 2020 is 14 cents per mile. To calculate her mileage deduction, we multiply her total miles driven (800) by the standard mileage rate (0.14), giving us $112.

Therefore, Jade's deductible contribution is $112.

During February and March,Jade Spends Approximately 90 Hours of Her