Question

Paris and Nicole have been friends since elementary school. For the past 6 months Paris has been working with Nicole on her campaign for mayor of their hometown. Paris has not been paid for this work – she has been an unpaid consultant. As the election gets closer, Nicole convinced Paris to make a contribution to the campaign fund. Paris was happy to provide the contribution to her friend Nicole’s campaign for mayor, especially after she learned from another friend that charitable contributions are tax deductible. Paris has come to you for advice on filing her federal income tax return.

What is the question for the tax scenario?

Answer 1

Donations to political candidates are not tax deductible on your personal or business tax return. The same goes for campaign contributions.

Donations to qualified charities are tax-deductible expenses that can reduce your taxable income and lower your tax bill.

To Claim a Deduction
One can claim a tax deduction for charitable giving on Schedule A. The total of Schedule A then transfers to line 8 of the new 2018 Form 1040 that was introduced for tax year 2018. One can claim the total of your Schedule A deductions in lieu of claiming the standard deduction. One can't both itemize and claim the standard deduction as well.
The schedule isn't just for claiming charitable donations. It includes and calculates all itemized deductions one is eligible for. Other possible itemized deductions include things like medical and dental expenses paid for oneself or dependents over the course of the year, including many insurance premiums. They also include state and local taxes you might have paid and home mortgage interest.

Restrictions
There are restrictions on charitable contributions that relate to documentation and contribution limits. You should keep records of any donation you make, just in case of an audit.
If the value of a single donation exceeds $250, you must acquire written acknowledgment from the qualified organization. Each contribution counts as a separate itemized deduction.
If your total deduction for non-cash contributions exceeds $500, you must fill out Form 8283 Section A.
If your contribution of non-cash property exceeds $5,000, you may be required to obtain a third party appraisal of the value. If that is the case, you will also have to fill out Form 8283 Section B.