How to Lower Income Tax via NRA Payroll Deduction Donations

Imagine being rewarded for a good deed. The much dreaded Internal Revenue Service gives taxpayers that option by allowing Federal income tax deductions based on contributions to charitable organizations. If you are not yet taking advantage of this facility, but wished to make a contribution as a matter of principle, this can be an added incentive to do what you long desired to do.

It is a win-win situation for the taxpayer and charities. One particular organization that can benefit from this gesture is the National Rifle Association (NRA). However, simply making the contribution by payroll deduction is not sufficient to access this benefit. The IRS typically requires certain criteria be met before you can use this as an income-tax reduction strategy.

Just making a broad contribution to the National Rifle Association is not the option. According to the NRA’s website, three affiliates facilitate this concept of “workplace giving.” The NRA Special Contribution Fund, the NRA Civil Rights Defense Fund, and The NRA Foundation are all non-profits that qualify for this tax incentive scheme.

There are many taxpayers who are already members of the NRA, but you do not have to be a member to qualify; you only need to contribute to one of the qualified affiliates. You would be contributing to a good cause because the National Rifle Association can fund programs for firearm safety, hunter education, crime prevention and other programs that benefit community and society.

The IRS has certain record-keeping standards that must be followed, however. First, the taxpayer must maintain a record of the contributions, namely the amount, date of contribution, and the name of the NRA affiliate. In addition, the contributions need to be substantiated by a W2 Form, pay-stub, or “employer furnished document,” along with a pledge card or some acknowledgement of the contribution by the NRA.

Government employees can participate in workplace giving campaigns at the federal, state or local level. Interested persons in independent corporations and non-government agencies must find out if their employer offers workplace giving and whether the NRA affiliates are designated in that campaign.

To summarize, one does not have to be a member of the NRA to participate in the workplace giving program. Those who participate (whether they are members or not) would have to retain proper documentation of the contributions, from the employers and the NRA. Such contributions are a good way to contribute to a worthy cause while getting back something for your efforts.