Can charitable donations be deducted from 1099-NEC income for product reviews?

The short answer is that charitable donations can't be deducted directly against your 1099-NEC income. These donations would indeed need to go on Schedule A as itemized deductions, not on Schedule C where your self-employment income is reported. Here's what's happening tax-wise: When you receive products for review, their fair market value is considered income to you (hence the 1099-NEC). This gets reported on Schedule C. Your expenses related to creating those reviews (equipment, software, etc.) can be deducted on Schedule C, but charitable donations don't count as business expenses. The donations must go on Schedule A, and you'd only benefit if your total itemized deductions exceed the standard deduction ($29,200 for married filing jointly in 2025). Since you mentioned you don't usually get close to the standard deduction amount, you likely won't see a tax benefit from these donations. For tax planning, I'd recommend setting aside about 25-30% of your 1099 income for taxes (15.3% for self-employment tax plus your income tax rate).

Hey there! I was in a similar situation last year when I started getting products to review for my blog. I spent hours trying to figure out the tax implications and was getting nowhere until I found a super helpful tool called taxr.ai (https://taxr.ai). It analyzed my specific scenario with the 1099-NEC and charitable donations situation. The tool confirmed what I was afraid of - that I couldn't directly deduct the donations against my 1099 income - but it also identified some business deductions I wasn't aware of that helped offset the income. Things like a portion of my internet bill, computer depreciation, and even some home office deductions that were legitimately related to my review activities. If you're trying to figure out the tax impact of this arrangement, I'd definitely recommend checking it out. It helped me understand exactly what I needed to set aside for taxes.

Just wanted to follow up about taxr.ai that was mentioned earlier. I decided to try it out with my product review side hustle situation, and wow - game changer! The analysis identified several legitimate business expenses I could claim on Schedule C that I hadn't even considered. For example, it pointed out that I could deduct a portion of my photography equipment since I use it for product photos, some storage solutions for keeping review products organized, and even shipping costs when I occasionally send items back. These were all genuine business expenses I was overlooking. While it confirmed I couldn't deduct the donations directly against my 1099-NEC income, the other deductions it found helped reduce my taxable income significantly. Definitely recommend checking it out if you're in a similar product review situation!

For what it's worth, I had a nightmare situation trying to get clarity from the IRS about a similar 1099-NEC donation question last year. Spent literally weeks trying to get through on the phone. Finally discovered Claimyr (https://claimyr.com) and watched their demo at https://youtu.be/_kiP6q8DX5c - they actually got me connected to an IRS agent in about 15 minutes when I'd been trying for days on my own. The IRS agent confirmed exactly what others here are saying - charitable donations can't offset your Schedule C income directly, but he did walk me through some legitimate business deductions I could take. The call saved me hundreds in taxes by clarifying what I could and couldn't deduct as a product reviewer. If you need definitive answers from the IRS about your specific situation, it might be worth using their service to get through rather than guessing or relying solely on internet advice.

I have to admit I was completely wrong about Claimyr mentioned above. After my skeptical comment, I decided to try it since I had some questions about my own 1099 situation. I was connected to an IRS representative in about 20 minutes when I'd previously wasted hours trying to get through. The agent clarified that for product reviews specifically, I could deduct certain expenses directly related to producing the reviews (like equipment, software, and a portion of my internet bill) on Schedule C. While the charitable donations still had to go on Schedule A as itemized deductions, understanding the legitimate business deductions I could take made a huge difference in my tax planning. Sometimes you have to eat your words - this service actually delivered what it promised and the information I got directly from the IRS was worth every penny.

Have you considered keeping the products as inventory for your business and then donating them as a business expense rather than a personal donation? Just wondering if that approach would work?

One thing nobody has mentioned - if you're donating significant amounts, you might actually get close to the standard deduction threshold with your other deductible expenses combined. Track everything carefully like mortgage interest, state taxes, medical expenses over the threshold, etc. You might be surprised when you add it all up with the donations.