Unreimbursed employee business expenses as contribution

[NECPA in NEBRASKA]

I am still trying to research this, but have not been able to find anything definite to show my client. She wants to know if she can use unreimbursed employee business expenses as a charitable contribution because she is employed by a non-profit. I don't know what kind of expenses they are. I will find out more when she actually gives me the information for the two years of back taxes. I'm didn't find anything that tells me that she can't deduct them. If she wrote them a check, it would be a contribution. I do think that if meals and entertainment are involved, they should only be deducted at 50%. Does anyone know if there is a reason that she is unable to write them off as a contribution, instead of as employee business expenses?

Thank you.

[Jack from Ohio]

Non-profit does not mean charitable. Charitable donations must be given to a charitable organization in order to be deductible. Must be a track and documentation of the gift, including value.

I believe the simple answer is no.

[NECPA in NEBRASKA]

I'm sorry. It is a charitable organization on the IRS list as a 501c(3).

[Jack from Ohio]

http://www.irs.gov/C...e-Contributions

http://www.irs.gov/p...s-pdf/p1771.pdf

These answer all the questions. I stick with my NO answer. No direct donation involved.

The organization could reimburse her, then she can contribute the amount. Otherwise, no.

[NECPA in NEBRASKA]

Thanks, Jack. I forgot about the acknowledgements needed. She definitely could not get a written acknowledgement, if needed, because they were from 2010. Most likely, she didn't ask them to reimburse her in a timely fashion and wants to avoid the 2% haircut, because she makes a very good living working there.

[Jack from Ohio]

Thanks, Jack. I forgot about the acknowledgements needed. She definitely could not get a written acknowledgement, if needed, because they were from 2010. Most likely, she didn't ask them to reimburse her in a timely fashion and wants to avoid the 2% haircut, because she makes a very good living working there.

If the organization will reimburse her, she can then get the Sched A deduction if she donates the amount back to them. We run into this all the time at our church. We follow the same protocol. Give us the receipts, we will reimburse you, then you make the donation. Church does not pay for the associated items or services, and the member gets a legitimate deduction. The budget committee prefers it as well so that they have accurate information about expenses.

[NECPA in NEBRASKA]

Thank you, Jack. That is very helpful.

Bonnie

[jainen]

>>she didn't ask them to reimburse her in a timely fashion<<

I'm not sure you can take a tax deduction for an expense that is otherwise reimbursable.

The question of charitable contribution has been kicked around for teachers. The general consensus (and IRS position) is that these are employee expenses, that is, for the production of income, and therefore benefit the wage earner. However, if you can get by that issue, substantiation of less than $250 does not necessarily require a receipt.

[NECPA in NEBRASKA]

I have not heard back from her if they are reimbursable or if she chose not to ask for the money. She wanted to know if she could still get an acknowledgment from them, but I explained that it was too late. If they turn out to be legitimate employee expenses, she can use them as an itemized deduction, since she procrastinated.