Political contribution credits

Contributions made to a political candidate, a campaign committee, a lobbyist, or a newsletter fund cannot be used as deductions on your return. However, many states may offer their own tax incentives to encourage more small campaign contributions and reduce the power of big contributors and special interest groups. Contributions can include loans, gifts, deposits, donations, pledges, payments, transfers of funds between political committees, or anything of value, including personal and professional services. If you ever decide to run for office, you most likely won't be taxed on contributions made to you and your campaign. For more information on political contribution credits, consult a tax advisor or call the toll-free number for Federal Tax Information and Assistance at 1-800-829-1040.