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    cashed out vacation pay for charity

    Just checking; first time I've seen this.

    Client cashed out vacation pay through her employer to make a contribution for the Japanese earthquake and tsunami relief. The employer cashed out the pay at her hourly rate, and the paystub shows a contribution for a dollar figure.

    My take is it's deductible. any thoughts?

    #2
    Well, we don't know if the money went to an org that is qualified for charitable deductions. Or, just to someone who gathered the funds and sent to someone to help the victims.
    You have the right to remain silent. Anything you say will be misquoted, then used against you.

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      #3
      Likely a valid contribution

      There has been a similar thread on here recently.

      Common agreement was: 1) If funds (otherwise taxable and included in W2) were moved and 2) If the organization was indeed a qualifying charity, then there should be no problem claiming such a deduction.

      Your phrase "cashed out" concerns me a bit.

      This is the opposite of "giving a day of vacation" to a needy coworker and hoping for a deduction.

      FE

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        #4
        They way I understand the OP is that vacation was paid through payroll and net amount than was donated.

        As stated, if it is a qualified organization, than you have a potential Schedule A deduction. If the actual amount donated was $250 or more you will need to have a letter from organization (not employer) to make the "potential" convert to "allowable".

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          #5
          Exactly, the vacation pay was converted to cash and the cash amount donated through payroll.

          I'll check about the receipt.

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