K M W
Employee Tax Expert

Self employed

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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