Ever notice that these things come in bunches? A client serves as a volunteer for a 501(c)(3) organization. It involves his being away from home all day on Saturdays. His wife has developed cognitive impairment and can no longer be left home alone all day. The organization values his services to such an extent that they are willing to reimburse him for his out-of-pocket expenses in obtaining the services of a daycare provider for these periods. My questions are:
1) Will such an arrangement cause tax problems for the organization?
2) Will the reimbursement be taxable income to the volunteer?
1) Will such an arrangement cause tax problems for the organization?
2) Will the reimbursement be taxable income to the volunteer?