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Connie C
Level 2

Donate 10% of my sales

I have started an online training/coaching business. I want to donate 10% of my sales to charity. 

?? how is this donation captured on my taxes? With my business or personal taxes? 

 

Thanks so much for sharing your time and expertise. 

Wishing you a blessed day!

2 Best answer

Accepted Solutions
Donna F 77
Employee Tax Expert

Donate 10% of my sales

As a self-employed individual, your business income and expenses are a schedule (Schedule C) on your personal tax return.  Schedule C does not allow for charitable donations, but your personal tax return does.  You can claim charitable donations as an Itemized Deduction on Schedule A.  For Tax Year 2021, you are able to deduct up to $600 for Married Filing Jointly and up to $300 for other filing statuses even if you aren't able to itemize.

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Donna F 77
Employee Tax Expert

Donate 10% of my sales

You do not need to differentiate between the two, nor keep them separate.  All charitable donations will go in the same place on your tax return whether they were made with "personal" income or "business" income.

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3 Replies
Donna F 77
Employee Tax Expert

Donate 10% of my sales

As a self-employed individual, your business income and expenses are a schedule (Schedule C) on your personal tax return.  Schedule C does not allow for charitable donations, but your personal tax return does.  You can claim charitable donations as an Itemized Deduction on Schedule A.  For Tax Year 2021, you are able to deduct up to $600 for Married Filing Jointly and up to $300 for other filing statuses even if you aren't able to itemize.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Connie C
Level 2

Donate 10% of my sales

Thank You @Donna F 77 

 

I get confused on what I need to keep 'separate' between my business and personal taxes. From your response, my charitable donations from my business sales will be recorded on my personal taxes Schedule A. 

 

? What documentation do I need to differentiate the charity donations made with income from my business vs. the charity donations made from our other income? 

 

Wishing you a fantabulous day!

Donna F 77
Employee Tax Expert

Donate 10% of my sales

You do not need to differentiate between the two, nor keep them separate.  All charitable donations will go in the same place on your tax return whether they were made with "personal" income or "business" income.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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