§139B Benefits Provided to Volunteer Firefighters and Emergency Medical Responders

Summary

If you volunteer with a qualified firefighting or emergency medical organization, certain rewards from your state or local government are tax-free. You pay no income tax on property tax or other state and local tax reductions or rebates given for your service, or on payments made to you for serving — up to $50 for each month you perform the services (raised from $30 for tax years beginning after December 31, 2019). A qualified organization is a volunteer group required by written agreement with the state or political subdivision to furnish firefighting or emergency medical services there. Two trade-offs apply: your state and local tax deduction is figured taking the tax break into account, and your volunteer expenses count toward a charitable deduction only to the extent they exceed the payments you excluded. An expiration date once limited this benefit, but it was removed for tax years beginning after December 31, 2020, so the exclusion now applies without a time limit.