Donation to Public Debt- Deductible?

[taxea]

I just read an article posted on Bargaineering.com. The posted article talked about a guy that sent a check to pay down the public debt and wanted to use that money to pay his tax debt. The suggestion was that he take the amount as a charitable deduction.
Really, is the US Government a non-profit? How is this possible? Does the "donation" to the public debt qualify as a deductible donation? Could you explain how?
Thanks

[JohnH]

It's been possible to send a payment to apply to the national debt for decades, and it is deductible as a contribution. Just read the form 1040 instructions.

The payment can't be applied to one's personal tax liability, because it's a voluntary payment "over and above" the income tax due. But it is clearly deductible as a contribution.

I used to carry the instructions for this around in my pocket, especially when Warren Buffet, Bill Clinton, and others were pontificating about how they weren't paying enough tax. Whenever someone would start parroting that nonsense I'd pull out those instructions and make the point that anyone who thinks they aren't paying enough tax has a perfectly legitimate way to up their own bill - a chance to put their money where their mouth is. Plus they get a tax deduction for their honesty and integrity in backing up their rhetoric with action. Of course, nobody ever actually did that (including Clinton and Buffet), which proved they were just spouting nonsense.

[New York Enrolled Agent]

§170(c)

(c) Charitable contribution defined
For purposes of this section, the term "charitable contribution" means a contribution or gift to or for the use of--


(1) A State, a possession of the United States, or any political subdivision of any of the foregoing, or the United States or the District of Columbia, but only if the contribution or gift is made for exclusively public purposes.

...

[taxxcpa]

Spouting nonsense

I'm not sure that Buffett's failure to contribute a big sum to pay the national debt proves he is spouting nonsense. He may really believe that he and others like him should pay more, but if he, and he alone, paid more, that would not be the same as if all billionaires paid more.

In my opinion, however, raising the tax on all billionaires, is not the solution, since it would not pay off the national debt even if they were taxed at 99% of their income. It might not eliminate the national debt, but it would sure eliminate billionaires.

The way to pay off the national debt would be to raise everyone's tax or drastically cut government expenditures or do both.

Of course, there is always the printing press--just print enough money to pay off the debt. Then no one would ever loan the government any more money and we could get on a pay-as-you-go basis.

They should also make tax returns simple enough for anyone to prepare their own taxes and put us out of business. There is a two-line tax form someone designed:

Line 1: How much did you make?
Line 2: Send it in.

That wouild kill two birds with one stone--simplify taxes and pay off the national debt.

[Golden Rocket]

Legitimate Donee

§170(c)

(c) Charitable contribution defined
For purposes of this section, the term "charitable contribution" means a contribution or gift to or for the use of--


(1) A State, a possession of the United States, or any political subdivision of any of the foregoing, or the United States or the District of Columbia, but only if the contribution or gift is made for exclusively public purposes.

...

And of course, make sure the recipient is a legitimate 501(c)(3) non-profit..........

[JohnH]

I think he's spouting nonsense.
He says "I should pay more".
He has a simple mechanism available to pay more, but he doesn't do it.

Now, if he said "I should pay 10% more, and to demonstrate my commitment I voluntarily added 10% to my tax bill. You should do the same", then I'd say he is being honest & acting with integrity. He might even inspire someone else to imitate his commitment. Absent any meaningful action, he's just another disingenuous loudmouth on this issue.

Now someone might say he isn't obligated pay any more than he's legally required to pay, and they would be right. But I would say if he honestly believes he isn't paying enough and has a way to correct that situation, he should take the honorable course. He should act according to his principles even if everyone else in the country doesn't. Unless of course they really aren't his principles and he's just grabbing a few headlines.

[taxea]

And of course, make sure the recipient is a legitimate 501(c)(3) non-profit..........


You meant to say "if it isn't a government agency", right?

I didn't find the resource until after I posted. thanks, ya all

[Gene V]

Donations

Kiplinger news letter dated Oct.26 mention this very same topic.

Voluntary contributions to pay down the federal debt are tax deductible,
IRS privately rules, because the payments to the Bureau of the Public Debt
are treated as made exclusively for public purposes. The bureau will provide donors
with a written acknowledgment so the contribution is substantiated for tax purposes.