5 ms·

ha, I had a job interview recently and they had me do a take home thing. They offered to pay me for it, just a few hundred dollars for the time I put in. That's

ha, I had a job interview recently and they had me do a take home thing. They offered to pay me for it, just a few hundred dollars for the time I put in. That's cool. But in the email they asked if I wanted the money, or I could donate it. Right now I could use the money, but now I feel just a little bad about it.

spython 8y ago
So you replied that you'll donate the money yourself to the charity of your choosing?
- notyourwork 8y ago
  To which they replied, "no worries let me know your favorite charity and we'll send it over right away!" LOL
  - spython 8y ago
    Here the potential employer is clearly looking for an indication of the financial situation of the candidate, to be in the position of power when negotiating the salary. So it would be important to deny this data. A simple "Here's my bank account, I'll donate it myself" should be enough.
    - cliffordthedog 8y ago
      They had already rejected me, so who cares. Though I do appreciate your well cultivated sense of suspicion and cynicism. Keep it up!
- fma 8y ago
  Before Trump's tax law which upped the standard deduction to the point very few have the ability to deduct... a benefit of donating yourself is your can deduct it from your taxes.
  - smileysteve 8y ago
    But, you'd have to recognize it as earned income; and you'd have to pay self employment taxes on it; making the donation cost you money. -- OR -- You file it as income to your sole proprietorship or llc; you "sponsor" something charitable as an expense. Either way, the deduction and the income are at best 0 sum. Though, if it's less than $600; they may not file a 1099 and you may "forget" to report it.
    - fma 8y ago
      I'm a little confused on your comment? Is this in regards to how to deduct a donation post-Trump tax law? I'm a regular salaried employee, all my income is reported on a W2. Pre-Trump, if I donated $ to my favorite charity...it's deductible if I exceed standard deduction.
      - smileysteve 8y ago
        Pre 2018 or post are the same for how the deduction is a deduction and not a credit. That is to say that on w2 income you will pay payroll tax and on 1099 you may pay self employment tax -- in addition to income tax. You then get to deduct the income tax only. So the presented case, to get paid a small sum as a contractor that either you or the company will donate to a charity; it's going to be a net 0 or net negative to take the income and then donate it 100% compared to letting the company donate it. The relevant changes were to the standard deduction and the % cap (if you're donating >50% of your income). Technically, the standard deduction doesn't matter here at all, that's a choice, it would be a net negative for the filer to choose itemized over the standard if they don't exceed the standard. The 2018 changes also effect the pass through rate, so there is a small possibility that if you took payment in your pte, you'd be taxed at 21% cap, your business didn't make enough to pay self employment tax, and then you donate the money from your normal earned income at the 22 or 24% rate.

spython 8y ago

So you replied that you'll donate the money yourself to the charity of your choosing?

notyourwork 8y ago
To which they replied, "no worries let me know your favorite charity and we'll send it over right away!" LOL
- spython 8y ago
  Here the potential employer is clearly looking for an indication of the financial situation of the candidate, to be in the position of power when negotiating the salary. So it would be important to deny this data. A simple "Here's my bank account, I'll donate it myself" should be enough.
  - cliffordthedog 8y ago
    They had already rejected me, so who cares. Though I do appreciate your well cultivated sense of suspicion and cynicism. Keep it up!
fma 8y ago
Before Trump's tax law which upped the standard deduction to the point very few have the ability to deduct... a benefit of donating yourself is your can deduct it from your taxes.
- smileysteve 8y ago
  But, you'd have to recognize it as earned income; and you'd have to pay self employment taxes on it; making the donation cost you money. -- OR -- You file it as income to your sole proprietorship or llc; you "sponsor" something charitable as an expense. Either way, the deduction and the income are at best 0 sum. Though, if it's less than $600; they may not file a 1099 and you may "forget" to report it.
  - fma 8y ago
    I'm a little confused on your comment? Is this in regards to how to deduct a donation post-Trump tax law? I'm a regular salaried employee, all my income is reported on a W2. Pre-Trump, if I donated $ to my favorite charity...it's deductible if I exceed standard deduction.
    - smileysteve 8y ago
      Pre 2018 or post are the same for how the deduction is a deduction and not a credit. That is to say that on w2 income you will pay payroll tax and on 1099 you may pay self employment tax -- in addition to income tax. You then get to deduct the income tax only. So the presented case, to get paid a small sum as a contractor that either you or the company will donate to a charity; it's going to be a net 0 or net negative to take the income and then donate it 100% compared to letting the company donate it. The relevant changes were to the standard deduction and the % cap (if you're donating >50% of your income). Technically, the standard deduction doesn't matter here at all, that's a choice, it would be a net negative for the filer to choose itemized over the standard if they don't exceed the standard. The 2018 changes also effect the pass through rate, so there is a small possibility that if you took payment in your pte, you'd be taxed at 21% cap, your business didn't make enough to pay self employment tax, and then you donate the money from your normal earned income at the 22 or 24% rate.