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Are Political Contributions Tax Deductible? What the IRS Says About Campaign Donations, Fundraisers, and Political Events

Election season brings campaign advertisements, fundraising emails, political dinners, candidate events, and requests for donations. That can also produce a tax question: Are political contributions tax deductible? For federal income tax purposes, the general answer is no. Giving money to a candidate or political organization ordinarily does not create a charitable contribution deduction. And business [...]

Do You Owe Taxes If You Get Paid in Free Stuff? How the IRS Taxes Products, Meals, Trips, and Other Noncash Compensation

Getting paid does not always mean receiving a paycheck. Maybe you repair someone's car and they give you a television in return. Perhaps a business gives you merchandise in exchange for your work. Maybe a client pays part of your fee with property. Or perhaps someone offers you a free vacation, meals, or another valuable [...]

Is NIL Money Taxable? How College Athletes Are Taxed on Name, Image, and Likeness Income

College athletes can now make money from endorsements, social media promotions, autograph signings, appearances, sponsorships, merchandise, and other uses of their name, image, and likeness. Some athletes may receive thousands or even millions of dollars. Others may receive considerably smaller amounts—or may be compensated with free merchandise, meals, services, gift cards, or other benefits rather [...]

Is Your Charity Gala Ticket Tax Deductible? How the IRS Treats Charity Dinners, Auctions, Tickets, and Other Fundraising Benefits

You pay $500 to attend a charity gala. The organization is a legitimate tax-exempt charity. Your receipt says that you made a $500 payment. The event supports a worthy cause. Can you deduct the entire $500 as a charitable contribution? Not necessarily. One of the most important—and frequently overlooked—rules governing charitable contributions is that a [...]

Is an Employer-Paid Gym Membership Taxable? Understanding the IRS Rules for Employee Fitness Benefits

Employers increasingly offer wellness benefits intended to encourage employees to exercise, stay healthy, and reduce stress. That might mean a gym inside an office building. It might mean access to an employer-owned fitness center. Or it might simply mean that the company pays an employee's monthly membership at a commercial gym. For federal income-tax purposes, [...]

Is a Utility Rebate Taxable Income? How IRC § 136 Treats Energy-Efficiency Rebates and Subsidies

You replace an old air conditioner with a more efficient system. Your electric company sends you a $500 rebate. Or perhaps your utility offers $1,000 toward insulation, weatherization, a heat pump, or another improvement intended to reduce your home's energy consumption. That creates a surprisingly reasonable tax question: Do you have to report the utility [...]

Do You Owe Taxes When You Sell Used Stuff Online? How the IRS Treats eBay, Facebook Marketplace, Poshmark, and Other Personal Sales

Selling your old belongings has never been easier. A person cleaning out a closet might sell clothes online. Someone upgrading a computer might sell the old one. A family moving to a new house may sell furniture through an online marketplace. Collectors routinely sell sneakers, watches, trading cards, toys, and other items they no longer [...]

Are Airline Miles and Hotel Points Taxable? Understanding the IRS Rules for Rewards, Bonuses, and Business Travel

Millions of Americans accumulate airline miles, hotel points, and other loyalty rewards every year. Some people earn them by purchasing airline tickets or staying at hotels. Others accumulate points through credit cards. Business travelers may earn thousands of dollars' worth of travel benefits while their employer pays the underlying expenses. Eventually, those points may be [...]

If Someone Else Pays Your Taxes, Is That Taxable Income? The Strange IRS Rule Behind Tax “Gross-Ups”

Most people understand that receiving money can create taxable income. Your employer pays you a salary. You earn money from a business. You receive interest from a bank. You sell property at a gain. But federal tax law contains a less intuitive rule: You may receive taxable income even when somebody gives the money directly [...]

Is Personal Use of a Company Car Taxable? Understanding Treasury Regulation § 1.61-21

A company car can be a wonderful employee benefit. The employer buys or leases the vehicle, pays the insurance, handles maintenance, and may even pay for the gasoline. But what happens when the employee takes that vehicle home? Or uses it to drive to the grocery store? Or takes the family somewhere on Saturday? The [...]

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