Noah gave $750 to a good friend whose house was destroyed by an earthquake.In addition, Noah contributed his time, valued at $250, in the cleanup effort.Noah may claim a charitable deduction of $1,000 on his tax return for the current year.

Question

Quizplus · Accepted Answer

Although Noah gave money and time to a good cause, only the monetary donation can be claimed as a charitable deduction on his tax return. The value of his time is not eligible for a deduction. Therefore, he can only claim a charitable deduction of $750, not $1,000.

Noah Gave $750 to a Good Friend Whose House Was