Volunteer Mileage Reimbursement

A volunteer driver transports persons or goods on behalf of a nonprofit entity or governmental unit in a private passenger vehicle and receives no compensation for services provided other than reimbursement of actual expenses.

Employees receiving wage compensation are not considered volunteer drivers if providing the same type of services they are employed to provide.

How much can I pay them for mileage?
You can reimburse for mileage at any amount. The volunteer may owe tax if the reimbursement rate is more than 14 cents per mile.

Do I need to issue them a federal Form 1099-MISC?
You must issue a Form 1099-MISC to a volunteer if both of these apply:

• You reimbursed the volunteer more than 14 cents per mile
• You paid the volunteer $600 or more during the calendar year

If you received mileage reimbursement in volunteer service for an organization eligible for a charitable contribution under Internal Revenue Code, section 170(c), you may subtract the amount you received. For details about qualified organizations for deductible contributions, see IRS Publication 526.​

You may subtract any amount exceeding the 14-cent-per-mile volunteer mileage rate on your Minnesota return, up to the 2021 cap of 56 cents per mile.

Complete Schedule M1M, Income Additions and Subtractions, to claim this subtraction from Minnesota income.

For more information, see Minnesota Statute 290.0132, subdivision 30.