How to Deduct Political Contributions

Deduct political contributions on form 1040.

You cannot deduct political contributions for federal elections, and most state revenue agencies do not allow deductions for state or federal political contributions. You also cannot deduct contributions made to organizations that directly lobby for political candidates or specific legislative bills. However, if you interpret "political contributions" a little more broadly, you can monetarily influence public policy and public awareness and still get the deduction you are looking for. All you need is a little information about the difference between 501(c)(3), 501(c)(4) and other 501(c) organizations. In other words, you need to find and identify organizations that support your political cause indirectly so that you can get your money back come tax season.

Instructions

1. Identify the political candidates who support your particular views and pet issues. Also identify the types of legislative bills you would like to see passed by your local, state or federal government.

2. Seek out 503(c)(3) and 501(c)(4) organizations that seem to support your philosophies. A 501(c)(3) organization is one that does not directly lobby for a candidate or bill. A 501(c)(4) is one that is allowed to spend up to $1,000,000 a year on lobbying. Both tend to do research and publish material advocating for certain positions and political philosophies. All other 501(c) bodies are governed by specific sets of rules about whether you can deduct contributions and how much.

3. Ask the organization whether your contribution is tax-deductible. Ask them whether they research, publish or lobby on behalf of the political views you espouse.

4. Itemize your contributions on Schedule A of Form 1040. Retain receipts and canceled checks for verification; you do not need to send in this proof with your tax return.

Tips & Warnings

• Some states have instituted publicly funded campaigns. When filling out your tax form, look for a check box to indicate whether you would like to earmark a few bucks -- usually about $5 -- to publicly funded campaigns at no cost to you.

References

• WorldWideWeb Tax: Do I Have to Pay Tax on Campaign Contributions?

Resources

• IRS: Tips for Deducting Charitable Contributions
• IRS: Table of Contents for Charitable Contributions Guidelines