topic Re: Self-employed in Get your taxes done using TurboTax

Self-employed

Kee22 — Mon, 09 Mar 2026 04:20:50 GMT

I provide a client appreciation day, a so-called coupon for free service hours to my client. Can I still recoup those labor costs on my taxes? Perhaps as charity or some other way to deduct my "gift" to my client?

Re: Self-employed

Contented — Thu, 27 Jan 2022 00:01:43 GMT

You can deduct mileage and material expenses. To clarify, are you paying anyone else to do the labor?

Re: Self-employed

AliciaP1 — Thu, 27 Jan 2022 00:01:08 GMT

Yes! You can claim "gift" expense at a reasonable cost rate for your time of service when given. So, if you give a coupon in 2021 for 1 hour of free service you will expense/recoup the service cost when the coupon is cashed in not when given. You expense the rate that you would normally pay an employee or contractor to perform the service.

For instance, if you provide 1 hour of service to your customer/client for $100 but would pay an employee/contractor $30 to perform the service, you will expense $30 at the time the customer receives the service and turns in the coupon.

Re: Self-employed

Kee22 — Thu, 27 Jan 2022 00:02:23 GMT

No. We (my employee) and I "donate" our time to appreciate the client. A way to give back to them for the work we have done for them.

Re: Self-employed

Kee22 — Thu, 27 Jan 2022 00:06:22 GMT

Thank you. What about my time/labor cost for that "coupon?" Can I consider myself an employee in that circumstance and expense my rate as well?

Re: Self-employed

ThomasM125 — Thu, 27 Jan 2022 00:07:44 GMT

You can't deduct the value of your time. You can only deduct actually money spent to provide products or services.

Re: Self-employed

Kee22 — Thu, 27 Jan 2022 00:23:39 GMT

So I assume that would apply to the initial free consultation with a client when I access the job? Mileage and the potential expense of my employee's time?

Re: Self-employed

DaveF1006 — Thu, 27 Jan 2022 00:28:46 GMT

Mileage but not the potential expense of your employee's time.