Deduction for Time Off Donations Ends Dec. 31

Unused vacation, personal days and sick days can be converted into a contribution to a favorite charity under a special rule established by the Internal Revenue Service after the Sept. 11, 2001, terrorist attacks. But this is the last year the option, known officially as IRS Notice 2001-69, can be used, and the conversion has to be done by the end of the year. The employee converting the unused time-off doesn’t get to deduct the donated amount, but they also don’t have to count the amount as part of their income.

The employer doesn’t have to pay its share of payroll taxes on the amount, according to Beall Barclay & Company PLC.