Determine first if your political contribution can be claimed as a tax credit or as deduction in your home state. Each state has different rules regarding whether a contribution to a local or state candidate can be claimed. Consult your state's treasury or revenue department for clarification as to the extent that a contribution qualifies as either a deduction or for a tax credit.
Understand what's prohibited by the IRS. While there has been ongoing debate, and reforms have been proposed, there is currently no provision within the IRS code to allow for tax credits for political contributions.
Know what is categorically denied. The Internal Revenue Service specifically indicates that contributions to any political candidate, campaign committee or newsletter fund do not qualify for a tax credit nor can such contributions be deducted. This also extends to expenditures made for advertisements in political convention bulletins or contributions to dinners or other politically related functions.
Consult a qualified tax advisor for clarification or further explanation of the tax credit or deductions available by state as each state has its own unique requirements while many states also prohibit, like the IRS, the claiming of a tax credit or deduction for political contributions.
|Nevada||New Hampshire||New Jersey|
|New Mexico||New York||North Carolina|
|South Carolina||South Dakota||Tennessee|