Question

Self Employed Tax deductible Donation Question (Washington State)

Forum|Forum|2 years ago
August 30, 2023
1 reply
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I live and work in Washington State. I have a LLC. I have donated (and am about to do more) some of my services to some nonprofit organizations in my area and I wanted to make sure that I am doing/ receiving everything necessary to make sure the donations qualify for when it comes time to file my taxes.

Previously I have sent an email laying out what the services will be and what the donation amount is and ask for a confirmation from the non-profit, clarifying that they accept the donation. What I don't know is if I need anything more or different than that for tax donation purposes.

Ask the Experts - Self-Employed - Aug 2023

K M W

Hi, KH326!

How wonderful that your business is donating services to local nonprofit organizations!

While serving your community is certainly admirable and encouraged, donated services are not tax-deductible at all for businesses or individuals.

Specifically, in Publication 526, the IRS states: "You can't deduct as a charitable contribution... the value of your time or services". However, to the extent that part of your donations includes supplies, you can take a deduction for those items. You can also take a deduction for any products, costs, or expenses you incur that are related to the donated services.

So, your tax return can't take a deduction for the value of your services, but providing free services to your local charities is a great way to get involved in your community.

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