Are Political Donations Tax Deductible? What the IRS Says
Written by
Rudri Patel
Edited by
Elizabeth Constantineau
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Political donations are not tax deductible under federal law, even if you’re contributing to support your favorite candidate or party. This rule applies to individuals and businesses. However, a few states do offer limited credits or deductions for donations made to state-level campaigns.
Are Political Donations Tax Deductible?
Under United States tax laws, political donations are not tax deductible. There is an interest to keep political interests and public funds separate. Businesses are also not allowed to deduct their donations to a candidate or campaign.
The Internal Revenue Service in Section 529 states:
“You cannot deduct contributions made to a political candidate, a campaign committee or a newsletter fund. You also cannot deduct contributions made to a political action committee (PAC) or any organization that attempts to influence the general public about elections, legislative matters or referendums.”
Although federal tax law does not allow for political deductions, some state laws may allow for a tax credit or deduction.
States That Offer Tax Breaks for Political Donations
| State | Type | Details |
|---|---|---|
| Arkansas | Credit | Up to $50 for individuals, $100 for joint filers |
| Ohio | Credit | Up to $50 for individuals, $100 for joint filers |
| Virginia | Deduction | Deduct up to $25 per individual, $50 for joint filers |
What Counts as Political Donations?
Political donations are donations made by individuals, businesses and corporations to support a particular candidate, party or cause.
There are several types of political donations:
- Individual donations: Most individuals will donate to a candidate directly. They might also donate to a political action committee or a political party. There are limits to how much a person can donate.
- Corporate donations: Corporations cannot donate directly to a candidate but can donate to a PAC or form their own PAC.
- In-kind donations: A donation can be given in the form of goods and services. Donations can include office space or food to support a candidate or campaign. These must be reported as monetary contributions.
- PAC donations: PACs will collect money from its members and contribute to a campaign.
Can You Deduct Political Contributions on State Taxes?
Although it is not possible to deduct your political donation from a federal tax return, some states may offer limited credits or deductions for state-related causes.
You will need a record of your donation to claim it on your tax return.
Why Keep Records of Political Contributions?
Although political donations are not tax deductible on a federal return, you may want to keep records in case there is a legal or audit inquiry.
It also helps you keep track of donations if you donate to multiple campaigns.
How To Avoid IRS Issues With Political Giving
Under the Federal Election Commission rules, you’re limited in how much you can donate to a particular candidate or campaign.
If you exceed the contribution limit, you may incur legal action or fines. Having proof of your contribution shows you’re complying with the limit.
Campaigns are required to publicly disclose your donation. Anyone can check whether an individual or business donated at the FEC website.
To verify if your donation is recorded correctly, you can check whether the right amount is posted.
Political Donations vs. Charitable Donations: What’s Deductible?
While political donations aren’t deductible, contributions to qualified charitable organizations typically are — here’s a side-by-side look.
| Donation Type | Tax Deductible? | Examples |
|---|---|---|
| Political contribution | No | Campaigns, political parties |
| Charitable donation | Yes | Nonprofits, 501(c)(3)s |
Final Take
Political donations are a powerful way to support your beliefs — but they won’t reduce your tax bill. A few states offer small tax breaks for local races, so check your state tax laws before filing. When in doubt, consult a tax attorney or expert to make sure you’re following IRS guidelines and maximizing your deductions.
FAQ
Here are the answers to some of the most frequently asked questions about political donations and taxes.- Do political donations count as charitable contributions?
- No, political donations are not considered charitable and are not deductible like donations to 501(c)3) nonprofits.
- How do I report political donations on my tax return?
- You don't -- political donations are not tax deductible and do not need to be included on your federal tax return.
- What's the difference between a PAC and a 501(c)(3) organization?
- PACs fund political candidates or causes and are not tax-exempt. A 501(c)(3) is a nonprofit focused on charitable or educational missions -- donations to these are typically tax-exempt.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Federal Election Commission. "Types of contributions."
- Federal Election Commission. "Individual Contributions."
- IRS. 2024. "Exemption requirements - 501(c)(3) organizations"
- Federal Election Commission. "Contribution limits."
- IRS. 2020. "Publication 529 Miscellaneous Deductions."
