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Your Time Is Not Deductible

Filed under: Information,web design

I’m not sure why, but I have seen many ads on Craigslist lately asking for free website help from non-profits in exchange for a tax deduction. I sometimes write them back and explain that labor directly donated to a non-profit organization is not tax deductible. Many expenses like buying software to accomplish the task would be, but not  labor.

I believe (I’m not an expert, check with your tax advisor) that someone could pay me to create a site for a legitimate non-profit and they could deduct their payment to me and I would have to declare the income, but I know for sure that I cannot donate my time directly to the non-profit and write it off.

I have had some pretty good exchanges with folks who refuse to believe this, even after I send them to the page on the IRS’s website that explains it in plain language. So, if you are a new designer or someone else who sells your services beware of anyone who tells you your time IS deductible and that you can write off your time as a donation to them.

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