Contrary to popular knowledge, you cannot deduct political contributions from your taxes. This is true for both individuals and businesses. The IRS specifically notes that these types of donations are not tax-deductible.
While you can’t get a deduction for giving money to a candidate or party, there are other ways to support your favored politician that could save you some money on your taxes. For example, you can deduct the cost of travel expenses incurred while campaigning for a candidate as long as you keep detailed records and receipts. And if you’re self-employed, you can deduct the cost of any supplies or services you donate to a political campaign.
Can You Write off political contributions on your taxes?
Any contributions, donations, or payments to political groups are not tax-deductible, according to the IRS, which has precise criteria for what is and is not deductible. This implies that if you contribute to a political candidate, party, campaign committee, or PAC, your gifts will not be deductible.
Are donations to political parties tax deductible?
No, donations to political parties are not tax-deductible. Only donations to charitable organizations are tax exempt.
A political campaign is not classified as a charity or a 501(c)(3) organization. Furthermore, political donations cannot be likened to tax-deductible contributions in the same way.
Use the IRS Tax-Exempt Organization Search Tool to determine whether a gift you’ve made is political or not. If you’re unsure if a donation you’ve made is considered political, check with the IRS Tax-Exempt Organization Search Tool to see whether the organization you gave to is classified as a 501(c)(3) organization.
Are political contributions tax-deductible for a business?
No, political contributions are not tax-deductible for businesses either. If you’re self-employed, however, you can deduct the cost of any supplies or services you donate to a political campaign. These donations must be itemized on your tax return in order to be deducted.
While businesses cannot deduct political contributions, they can take advantage of other tax breaks to reduce their overall tax liability.
To know more about whether or not campaign contributions are tax-deductible, it is best to consult with a tax professional such as The Oasis Firm. Oasis has a team of tax professionals who are well-versed in the tax code and can help you determine what deductions and credits you qualify for.