The federal government allows various deductions that can help reduce your taxes but this does not include your political contributions to the campaigns of any organization or individual.
When election season arrives it seems like news and advertisements about the candidate’s political campaigns and the election itself are everywhere. If you are going to donate money, time, or effort to a political campaign you might think “Are Donations to Political Campaigns Tax Deductible”?
National and local political campaigns are indeed depending on donations in order to function and operate. So, you may be wondering whether you deserve a tax cut when you support the democratic process by donating to campaigns.
Americans are encouraged to donate to political campaigns, political parties, and groups that affect the political landscape. But when it is time to file a tax return, many people are surprised to learn what is included in the tax deduction.
If you contribute to a candidate or political campaign, you may be wondering are donations to political campaigns are tax-deductible. Hence, the answer is no – contributions to political candidates are not tax-deductible on your personal or business tax return. Furthemore, the same goes for campaign donations. The IRS is very clear that money donated to politicians or political parties is not tax-deductible.
Are Donations to Political Campaigns Tax Deductible – The IRS Provisions
The following list provides some examples of what the IRS considers non-tax deductible. If you have contributed, contributed, or paid to any of them, it will not be deducted from your taxes:
1. Political candidates
2. Political parties
3. Campaign committee actions
4. Fund Bulletin
5. Advertising in Convention Newsletters
6. Any related activity to dinners or programs that benefit political parties or political candidates
7. Political Action Committee (PAC) : This means you cannot deduct tax expenses if you…
8. Advertise in programs for political conventions or other publications if the results are favorable to the party
9. Attend programs that benefit a political party or candidate
Individual donations to political campaigns
Although political contributions are not tax-deductible, there is always a limit to the amount that can be contributed to a political campaign. Individuals can contribute up to $2,800 per election to the campaign committee up to $5,000 per year for PAC and up to $10,000 per year for local or district party committees.
If someone donates to the national commission they can donate up to $35,000 per year. Also, the Federal Election Commission sets this limit and if someone exceeds this donation, the campaign committees cannot use the funds.
The word “donation” itself can be misleading because only certain donations are actually tax-deductible. So, the question arises, “Are donations to political campaigns tax-deductible?” In general, deductible charitable donations are those made to organizations that are tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is especially forbidden for organizations of this type to try to influence legislation or participate in political campaigns. Therefore, political campaigns or parties will never be included in article 501(c)(3). Then, political contributions cannot be considered as tax-deductible charitable contributions.
What donations are tax-deductible?
Are donations to political campaigns tax deductible? Once again remember, the word donation in political campaigns is actually not quite right. While charitable donations are commonly tax-deductible, donations to political organizations or political candidates are excluded. If you’re not sure whether the nonprofit you want to donate to is eligible, the IRS provides a tax-exempt organization search tool that you can use. Also, you can visit the IRS website for more information about tax-exempt organizations.
If you are looking for a potential tax deduction you may want to look elsewhere as political campaigns don’t seem right. Contributions or charity to military pensions (veterans), medical and nonprofit organizations are some places that can give you the opportunities to reduce your overall taxable income. Common examples of tax deductions from charitable donations include money or property donated to:
- Eligible churches, temples, synagogues, mosques, or other religious organizations
- State or local federal government, if your donation is for a general-purpose only, and if the goal is not to influence the law
- Non-profit schools and hospitals
- Non-profit organizations such as the American Red Cross, Girl Scouts of America, Boy Scouts of America, etc.
List of non-tax deductible contributions
Common examples of what is not included in a charitable contribution for tax deduction include money or property donated to:
1. Groups advocating legal change
2. Political groups or candidates for public positions
3. Civil unions, social and sports clubs, trade union chambers or trade unions
4. Groups with private interests
5. Country clubs, fraternity, owners’ associations, or similar groups
Are Donations to Political Campaigns Tax Deductible – Takeaway
Although political contributions are not deductible from tax cuts. The answer to the question “Are donations to political campaigns tax-deductible? “ is NO. Other deductions can help individuals and businesses save their taxes by making donations to charities. But the world of taxes is not always something easy. So, it would be wise to partner with a financial advisor or tax professional. Financial advisors or tax professionals will be able to help you navigate between what is tax-deductible and what is not. Therefore, help you put your hard-earned money where it is most profitable.
Tips for Maximizing Tax Savings
We already know the answer to our question “Are donations to political campaigns tax-deductible?” is an absolute no. So, if you want to do something that can reduce your tax liability, here’s what you can do about it.
• A financial advisor can help you with many tax questions you may have about donations. Besides, finding a financial advisor is not difficult. Within minutes the tools from SmartAsset can connect you with up to three financial advisors in your area. Well, if you are ready you can start now.
• If you find that you receive a large income tax return each year you may want to adjust your expenses on tax-deductible matters. Also, adjusting your cut can save you more money throughout the year.
That is all you need to know when it comes to