We have a "required" Secret Santa every year at my work. I would rather not do it, especially since they keep going up on the amount we "have" to spend. Furthermore, this comes right after they cut out our incentive pay.
So can I keep the receipt for what I've spent and write it off my taxes???
2006-12-08 00:35:12 · 3 answers · asked by redslippers 4 in Business & Finance ➔ Taxes ➔ United States
No, you cannot claim a deduction for the Secret Santa gift, even if it is a requirement for the job. If you were to claim the deduction, then you should be claiming the gift you receive in return as income as well. The gift is considered a personal gift to the person you are giving it to.
2006-12-08 04:18:15 · answer #1 · answered by jseah114 6 · 2⤊ 0⤋
I would advise against trying to deduct this amount, since it still is more of a gift than anything else.
However, you could possibly make a case that it's an Employee Business Expense and include it on Form 2106. The downside is that Employee Business Expenses are considered Miscellaneous Itemized Deductions subject to the 2% of AGI floor (see a copy of Schedule A for more information), so it's unlikely that this amount will actually find its way to the Form 1040. If you have other substantial employee expenses or miscellaneous deductions it's possible, but regular wage earners usually don't have enough.
2006-12-08 09:06:53 · answer #2 · answered by jinenglish68 5 · 0⤊ 0⤋
I agree with the first answer. If it is a "requirement" it is an expense of being employed. The 2%-of-AGI restriction will likely mess you up, unfortunately. In any case, you can only deduct a maximum of $25 per gift.
It is not worth the effort if this is going to be your only business expense, but if you have others, take a look at the link below, as a start.
2006-12-08 10:06:08 · answer #3 · answered by skip 6 · 0⤊ 0⤋