cashed out vacation pay for charity

[joanmcq]

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?

[WhiteOleander]

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.

[FEDUKE404]

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

[Gretel]

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".

[joanmcq]

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

I'll check about the receipt.