My husband works for a company where they have an employee outreach program to help tragedy stricken employees. The employees have the option to have any amount deducted from their check. My husband doesn't think that this is a "true" deduction because it's within the company. But these "donations" helped the employees that were victims of katrina? What do you think?
2007-02-06 01:41:45 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
This is similar to when the company solicits donations for United Way. These donations are typically deducted post-tax, and the local United Way office sends confirmation of this donation, so you can deduct this cash contribution if you itemize. So, hopefully, the charity that your husband's company is diverting funds to will issue such proof.
2007-02-06 02:47:41 · answer #1 · answered by CMass Stan 6 · 0⤊ 0⤋
I'm not an accountant, but I have done my own taxes for years, including a home based business. They way you describe the donation, I would say that individual contributors cannot take a deduction, but the company might be able to claim a charitable deduction IF they have proper documentation of where the money went.
When collection envelopes go around the office, it is considered a gift, not a charitable donation.
2007-02-06 01:49:39 · answer #2 · answered by not yet 7 · 0⤊ 0⤋
If the donation is specified to go to a particular person, then it's not deductible. And a donation is only deductible if it goes to a charity that has been recognized by the IRS as a charity, so the contributions you mention very likely are not deductible unless the company is passing them through to a recognized charity.
2007-02-06 04:29:11 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
If the outreach program is a registered charitable organization (some are) then it's deductible as a charitable donation. He'll have to ask at work if it's eligible for treatment as a charitable donation. They payroll department will know for sure.
2007-02-06 01:48:53 · answer #4 · answered by Bostonian In MO 7 · 2⤊ 0⤋
The contribution would have to be received by a 501(c) charitable organization or religious organization (while most religious organizations are 501(c), they are not required to be to accept tax deductible contributions).
2007-02-06 02:34:37 · answer #5 · answered by Rob D 5 · 0⤊ 0⤋
before everything, you may in basic terms write off the charitable deduction in case you itemize. Get an appraisal if their fee is that top. that is not a dollar for dollar deduction so i could somewhat sell them.
2016-12-17 03:40:17 · answer #6 · answered by tollefson 4 · 0⤊ 0⤋
no I think it's no different than any other work place collection.
2007-02-06 01:48:41 · answer #7 · answered by Anonymous · 0⤊ 2⤋