Tax deduction for paying down U.S. debt

June 4, 2010

This is one of my favorite off-beat tax breaks: voluntary payments to the ease the public debt.

Yep, as I noted back in April, such gifts to the U.S. Treasury are tax deductible.

It's not a well known, or very popular, tax break. Most folks aren't inclined to give the federal government more than they already pay in taxes.


Uncle sam hat with money3 But every now and then the voluntary debt reduction program's existence gets some attention.

I bring it up again today because this morning on NPR's Morning Edition show, I heard a Planet Money feature on the national debt donation option.

David Kestenbaum talked with Kay Fishburn, a Wisconsin nurse who tried to rally thousands of ordinary Americans to join her in donating more than just their annual tax dollars to help reduce the debt.

Fishburn hasn't sent in any checks since 1993. That year, she figured she had paid off her share of the national debt.

But Uncle Sam still will take your money if you want to send it along via snail mail.

Or you now can donate online at Pay.gov, making your gift either through a direct debit from a bank account or by charging it to a credit card.

If you opt for the plastic payment, though, please be sure to pay off that personal charge in full as soon as you get your credit card bill. There's just something wrong about people going into interest-accruing personal debt to help pay off our federal debt.

And however you contribute extra to the U.S. Treasury, if you itemize on your tax return, be sure to claim that amount as a charitable deduction.

Related posts:

Want to tell your friends about this
blog post? Click the Tweet
This
or Digg This
buttons below or use the
Share
This
icon to spread the word via e-mail,
Facebook and other popular applications. Thanks!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
Inflation helps Social Security beneficiaries some, but hurts retirees more

June 10, 2026

Inflation is a double-edged sword for retirees. Cost-of-living increases will bump up Social Security payments…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments