Are Your Political Campaign Contributions Tax Deductible?

The presidential election is here and political ads were jamming the airwaves, and your email and voice mail may have been filled with pleas from candidates for money to help them get elected.

Election

Election

We all know that donations to charities are deductible. But if you contributed to a candidate or political party or a PAC (Political Action Committee), is your contribution deductible? In a word, NO. Political contributions aren’t deductible even if you are running for office and spending money on your own political race.

You’ll find the official word from the IRS in IRS Publication 529 [Miscellaneous Deductions]: “You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible.”

There aren’t many ways to get around these rules. Lobbying expenses you incur trying to influence legislation or political campaigns aren’t deductible. Costs of mailers that you pay directly don’t pass muster. Fundraising dinners and events don’t qualify for tax deduction. And contributions to organizations whose primary purpose is influencing legislation won’t be deductible either.

About the only way to fund a political campaign with funds on which you haven’t paid taxes is to check the box on your tax return that asks if you want to donate $3 to the Presidential Election Campaign Fund. The funds raised are distributed to the two parties and their two presidential candidates during the months leading up to each presidential election. If you decide to make this donation it won’t affect your tax liability or refund.
If you truly want to use your time and influence to make a difference, here’s my best advice: VOTE!

Comments (3) Leave your comment

  1. It is beginning to look like all this so called IRS scandal is really an attempt by some folks to try to shelter thier political contributions from taxation by setting up these phony Tea Party “social welfare’ organizations. I’m still waitng to see what sort of charitable work these Tea Party groups perform? Amaxing that the Republicans are making themselves the grand protectors of the tax cheaters .

  2. In India it all toghether different, Indian Income tax Act allows deduction for contribuiting to political parties which are registeted under trust act, societies act, companies act. An individual can get tax deduction u/s 80GGC of the Income Tac Act for the donations given to political parties.

    Regards
    Harshal Kulkarn

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