In California, USA, for federal and state taxes, are services performed by a paid employee or contractor (who receives compensation for that time from the company as regular/overtime wages/salary or billable hours) charitable donations which are tax deductible?
-
@seamux While federal taxes are more prevalent, it may be worth adding a state as well. (I have no idea but) it may be a possible deduction at the state level even if not the federal (or vice versa, also good to know)– TCooperCommented Aug 11, 2021 at 21:12
-
Donate to whom (a political campaign or a 503(c) charity)?– RonJohnCommented Aug 12, 2021 at 1:47
-
Also, this might be off-topic to Personal Finance & Money.– RonJohnCommented Aug 12, 2021 at 1:50
-
@RonJohn Is there a financial instrument more personal than the donation of one’s own time?– LawrenceCommented Aug 12, 2021 at 4:44
-
1@Lawrence there is when the person is being paid by someone else (IOW, the person is not donating time/money; the company is.)– RonJohnCommented Aug 12, 2021 at 12:58
|
Show 3 more comments
2 Answers
answered Aug 12, 2021 at 15:41
If a person volunteers their own time to a charity, they can't take the value of their time as a donation. So if a person volunteers with a soup kitchen, the value of their hour per week is not deductible. Though if they have any expenses (such as driving), there are ways to deduct those expenses.
Now if you pay your employee to do charity work, then the the money you spend for that hour a week was already used to reduce your business taxes, so there is no added benefit if those are hours spent at a charity.
The business can deduct things or money that is donated to the charity.
answered Aug 12, 2021 at 15:49
