Mt Whitney Zone Forums General Discussion Tax Credit For SAR Volunteers in Canada

Source.

"In today's federal budget, there was a specific tax credit in memory of the late North Shore Rescue team leader Tim Jones.

Jones died suddenly on January 19. He oversaw the busiest search and rescue team in Canada, saving countless lives. Jones started volunteering with the organization in 1987 and participated in over 1,800 search and rescue operations.

The federal government announced today a tax credit for all search and rescue volunteers across Canada. The following image is an excerpt from the 2014 Budget.

Members who volunteer more than 200 hours a year will get a $1,500 tax credit on $3,000 worth of taxable income. This works out to roughly $450.

North Shore Rescue said on its website Tuesday that the tax credit is appreciated:

"Today's announcement is a huge honour for all the men and women who volunteer to carry out search and rescue in Canada. However, NSR is particularly proud because the tax credit specifically honoured our late team leader and my father, Tim Jones."

Not sure what I think about that.

Right now, any expenses incurred involving volunteer activities for 501(c)3 organizations in the US can be written off. There are limits.

But the credit is essentially payment by taxpayers. I don't think volunteers are generally looking for this. Of course, we're all human, and it would be pretty hard for many to turn it down, if offered.

But it would easily be started to be thought of as an "entitlement" that was "earned". And that can be corrosive thinking.

I think that the write-off, the free federal lands pass, and the recognition by the White House is enough....but I could see it the other way, as well.

Most volunteers do it because they want to give back...altruism. However, there are cost involved in volunteering. The government does not provide uniforms or specialized gear but the benefit by not having to employee people.

As for tax treatment, not everyone itemizes their taxes and all they have is the standard deduction. Also, not being able to deduct mileage and vehicle depreciation at the same rate as business does not seem right to me.

Ken wrote:
> But the credit is essentially payment by taxpayers. I don't think volunteers are generally looking for this. Of course, we're all human, and it would be pretty hard for many to turn it down, if offered.

I've seen arguments saying tax credits are payments. But they aren't -- they are a reduction in the taxes someone pays on the income they earned. The person has to first earn the income to get the tax credits. No income earned, no tax credit.

Governments use tax credits to lighten the tax burden for items that the particular government deems beneficial. This covers many areas: tax-free bond investments; home loan interest, oil depletion allowances, property depreciation for businesses, solar energy credits... the list is practically endless.

I could say it's MY money that is going to the tax deductions for others, but it isn't really. I see it more as an adjustment of the burden of supporting the government, which benefits us all.