IRS Extends COVID-19 Relief Leave Donations
Article Highlights:
- IRS extends COVID-19 Relief Leave Donations
- Donating unused vacation time, sick leave, and personal time
- Employer’s Function
- Great Donation Opportunity
As part of the emergency disaster declaration made by President Trump on March 13, 2020, it became possible for employees to donate their unused paid vacation time, sick leave, and personal time off to qualified charities that provided COVID-19 relief in 2020.
The IRS recently extended leave donations through 2021. Check with your employer to see if they are participating and for more details. It is an opportunity for you to make donations without costing you out of pocket cash.
Here is how it works: if your employer is participating, you can relinquish any unused and paid vacation time, sick leave, and personal leave for cash payments which your employer will donate to COVID-19 relief charitable organizations. The cash payment will not be treated as wages to you and your employer can deduct the amount donated as a business expense. However, since the income isn’t taxable to you, you will not be allowed to claim the donation as a charitable deduction on your tax return. Even so, excluding income is often worth more as tax savings than a potential tax deduction, especially if you generally claim the standard deduction or are subject to AGI-based limitations.
See the Full Article Here: https://relaxtax.com/blogs/insights/irs-extends-covid-19-relief-leave-donations
