Question

Chairtable contributions are: (all that apply)

A) reported on the employer's taxes

B) deducted pre-tax

C) reported on the employee's itemized tax return

D) deducted post-tax

Answer 1

Charitable donations are generally deducted post-tax and reported on the employee's itemized tax return. They are not typically included in the employer's taxes nor deducted pre-tax from an employee's wages.

Step-by-step explanation:

Charitable contributions can be handled in different ways for tax purposes depending on the situation:

Charitable contributions are typically reported on the employee's itemized tax return (Option C) and may be deductible if the taxpayer itemizes deductions.They are deducted post-tax (Option D) from an employee's wages. This means that the donation is made from net income, after all the taxes have been applied.The contributions are generally not reported on the employer's taxes (Option A), as they are not a direct business expense of the employer.They are also generally not deducted pre-tax (Option B) unless a specific pre-tax charitable contribution arrangement is set up, which is not standard practice.

t is important to note that payroll taxes such as Social Security and Medicare are split between the employer and employee and are a separate consideration from charitable contributions.