How to Claim Political Contributions Against Tax
One of the most important methods of citizen involvement in the US political process comes in the form of contributions and donations made by voters towards political candidates or parties in the form of time or money. Monetary contributions can also be claimed as tax credits but rules vary from state to state regarding limits on the size of contributions and the extent of an applied tax credit or deduction.
- Difficulty:
- Moderate
Instructions
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1
Determine first if your political contribution can be claimed as a tax credit or as deduction in your home state. Each state has different rules regarding whether a contribution to a local or state candidate can be claimed. Consult your state's treasury or revenue department for clarification as to the extent that a contribution qualifies as either a deduction or for a tax credit.
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Understand what's prohibited by the IRS. While there has been ongoing debate, and reforms have been proposed, there is currently no provision within the IRS code to allow for tax credits for political contributions.
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3
Know what is categorically denied. The Internal Revenue Service specifically indicates that contributions to any political candidate, campaign committee or newsletter fund do not qualify for a tax credit nor can such contributions be deducted. This also extends to expenditures made for advertisements in political convention bulletins or contributions to dinners or other politically related functions.
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4
Consult a qualified tax advisor for clarification or further explanation of the tax credit or deductions available by state as each state has its own unique requirements while many states also prohibit, like the IRS, the claiming of a tax credit or deduction for political contributions.
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