It seems like everywhere you turn, there is more campaign propaganda being thrown at you. Many people can’t wait for this election year to come to a close because of all the contentious swinging that is taking place. Others are right in the thick of it and loving every minute of it. Rather than showing your solidarity at the polls, many people also offer campaign contributions to help their presidential nominee get put into office. This may lead you to ask whether or not your donation can be tax deductible. Mark Dicus & Company is here to talk answer some of the questions that surround donations and which ones you can deduct from your taxes this year.
Political Donations Are Not Tax Deductible
While your passion for politics and support for your candidate may leave you to donate to the cause, it doesn’t mean that you can deduct it from your taxes. In fact, the IRS clearly states that political action committees (PACs) do not fall under the organizations that qualify to receive tax deductible contributions or donations. This goes for businesses that make political donations as well. It cannot be deducted from taxes.
Political Volunteer Expenses
There are many ways you can volunteer to help out a political candidate. Whether you are volunteering for the candidate directly, the campaign or PAC, the expenses that are associated with your volunteer work cannot be deducted from your taxes.
Support for the Presidential Campaign Fund
There is a section of your 1040 Form that allows you to have $3 withheld from your federal income tax return. You will need to check that box on the form to participate. It is important to note that if you decide to do this, it won’t have any effect on your tax return.
Political Contribution Limits
If you do decide that you are interested in supporting a candidate, there are limits that you need to be aware of. According to the Federal Election Commissions you can donate:
– Up to $2800 per candidate in one election
– Up to $10000 to district, state and local parties combined in a calendar year
– Up to $106500 to a national political party per account each year
Donations That Are Tax Deductible
When you donate to a true charitable contribution, it is tax deductible. This means that it needs to be a non-profit organization. If you volunteer, give cash or donate items to a 501©(3) organization, it would qualify as a tax deduction. You can find out of your contribution meets the criteria on the IRS website.
Tax Preparation, Filing, Resolution & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you have tax questions or don’t know where to start organizing your documents for taxes this year, you can call on the experts at Mark Dicus & Company to help you not only keep your books, but get you ready for your taxes as well. We can answer any questions you may have. Call us today!