OK, I'm starting this because a few questions cropped up about Aux. and Taxes.
First up, everyone read and read some more about Aux. liability, responsibility and benefits in the Aux. Manual, Title 14 and elsewhere. If you want to know what is legal and proper, that's a start. Also, each person please look into his or her state's benefits for volunteers like the Aux. I'll start off with Maryland.
In addition to writing off my expenses associated with legitimate Coast Guard activity working on Aux-specific stuff or augmenting the Active Duty, I (and other Aux., Volunteer Fire Fighters, etc.) also get a tax break from the state of Maryland. After 3 years of bona fide membership and significant participation in the Aux. (you'll have to look up the specifics yourself) all Aux. can qualify for a $3500 tax deduction on Maryland Income Tax.
Strangely enough I believe this is ONLY for volunteer folks. For an Active Duty coast guardsman to get this particular deduction he or she would have to ALSO join the Aux.
Anyone else want to chime in? Anyone from N.Y. or N.C. or FLA? How about you folks in Texas or California or Alaska?