The IRS announced a Special Relief program designed to help support Leave-Based Donation Programs to aid victims of Hurricane Matthew.
The IRS advised that, “Under these programs, employees may forgo their vacation, sick or personal leave in exchange for cash payments the employer makes, before Jan. 1, 2018, to charitable organizations providing relief for the victims of this disaster.” Therefore, if you are an eligible taxpayer, optimize your tax experience by notifying your Tax Professional of this tax benefit on your upcoming tax return.
The IRS also advised employers and employees that are donating their vacation, sick, or personal leave to victims of Hurricane Matthew that, “…the donated leave will not be included in the income or wages of the employees.” Note, however, that employers will be allowed to deduct the cash payments as a business expenses. (IRS).
It’s a WIN for the victims; it’s a WIN for the employees; and it’s a WIN for the employers.
With Thanksgiving in the air, this is a ‘Right on Time’ tax benefit for those affected.