Tax Facts

8912 / How did the 2017 tax reforms impact the treatment of length of service awards for bona fide volunteers?

The 2017 tax reform legislation increased the aggregate amount of length of service awards that may accrue for a bona fide volunteer with respect to any year of service to $6,000 (from $3,000) for tax years beginning after December 31, 2017.1 The $6,000 amount will be adjusted for inflation in $500 increments ($6,500 in 2022, $7,000 in 2023 and $7,500 in 2024).

1. IRC § 457(e)(11)(B).

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