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They may attend rallies, canvas their neighborhood, make phone calls or donate to a particular candidate.
The donation may range from $20 to $2,000.
Those whodonateto support their favorite candidate may ask the question, Are political donations tax deductible?
Donations are a way to help fund a candidates campaign throughadvertising, outreach and events.
Types of Political Donations
There are several types of political donations.
Heres a look at the types:
Are Political Contributions 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 donation has to be related to a state-level campaign or candidate.
Arkansas and Ohio allow for a tax credit, while Virginia allows for a deduction.
Check your state to determine if you qualify for a tax credit or deduction.
It also helps you keep track of donations if you donate to multiple campaigns.
If you exceed the contribution limit, you may incurlegal action or fines.
Having proof of your contribution shows youre complying with the limit.
Disclosure
Campaigns are required to publicly disclose your donation.
Anyone can check whether an individual or business donated at theFEC website.
You will need a record of your donation to claim it on your tax return.
The donation has to be to a state level campaign or party.
You may want to consult a tax attorney for advice.
Donations to charitable organizations are tax deductible.
These organizations are usually nonprofits, charitable organizations or religious groups.
Keep records of your donations, whether they are topolitical or charitable organizations, in case you are audited.
FAQ
Takeaway
Finding and working with a financial advisor is a great idea.
A financial advisor will help keep track of your finances and assist you in attaining your financial goals.
Get to know your Financial Advisor options today for Free!
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