Tax season 2024: Are political contributions tax deductible?

Tax season is here and while in 2023 there were very few elections, many may be considering if their donations to political campaigns will be able to be deducted from their income when filing their taxes next year.

Which donations are tax deductible?

In the US federal tax law, non-profit organizations are categorized into two groups: charitable and political. Charitable organizations that maintain a non-partisan approach are registered as 501(c)3, while those that work with a political agenda are given the 501(c)4 label. Donations made to 501(c)3 organizations are tax deductible, whereas those given to political organizations or campaigns are not. Examples of 501(c)3s include religious, education, and healthcare-related institutions, donations to local, state, or federal government agencies, and other non-profits such as the American Red Cross, St. Jude’s Children’s Hospital, or The Nature Conservancy.

On the other hand, 501(c)4s include organizations that have a political agenda where the donated funds will be used to lobby for legal changes, political campaigns, dues to labor unions or chambers of commerce, and other associations that bring together homeowners.

To determine whether the organization you donate to is tax-exempt and can be deducted, you can use the IRS search tool. 501(c)3 organizations are not allowed to operate for the benefit of private interests. Additionally, no section 501(c)(3) organization’s net earnings can go to any private shareholder or individual. During tax filing, there will be a section to report charitable deductions to the IRS. According to the IRS, individuals can deduct qualified contributions of up to 100% of their adjusted gross income.