Every election, thousands of taxpayers support their candidates in several different ways. Taxpayers may wear clothes promoting their candidate or put their signs in their front yard, others will make a financial contribution to their candidate’s campaign. Now although the contribution may seem like a donation to you, it is important to know that political donations are not tax deductible. So it’s important you don’t try to deduct any political contribution on your income tax return.
Taxpayers cannot deduct contributions made to a political candidate, a campaign committee or a newsletter fund. This also means you cannot deduct the cost for advertisements in convention bulletins or the cost of admission to dinners or programs that benefit a political party or political candidate. Keep in mind you can deduct contributions made to Political Action Committees (PAC). Now while you can’t deduct those contributions, you can set aside $3 of your taxes to go to the Presidential Election Campaign Fund. This money is split between the parties and helps finance the presidential primary and general election campaigns.
Along with not being able to deduct your political contribution, you also have limits on what you can contribute. The Federal Election Commission says that you can donate up to $2,700 per candidate per election, up to $10,000 to state, district, and local parties combined each year, and up to $101,700 to a national political party, per account, per year. Donations to PACs are capped at $5,000 per year.