topic We started a 501c3 non profit in 2023. Can the start up costs out of pocket be tax deductible? in Deductions & credits

We started a 501c3 non profit in 2023. Can the start up costs out of pocket be tax deductible?

nala07 — Tue, 10 Feb 2026 11:08:19 GMT

Re: We started a 501c3 non profit in 2023. Can the start up costs out of pocket be tax deductible?

Vanessa A — Wed, 21 Feb 2024 01:23:24 GMT

Donations to charity would be deductible as itemized expenses.

Itemized expenses include mortgage interest, donations to charity, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss. Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI. This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.

Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your insurance premium payments.

The 2023 Standard Deductions are as follows:

Married Filing Joint (MFJ) $27,700
Married Filing Separate (MFS) $13,850
Head of Household (HOH) $20,800
Single $13,850

Blind and MFJ or MFS add $1,500

Single or HOH if blind add $1,850

Itemized Deductions.

Re: We started a 501c3 non profit in 2023. Can the start up costs out of pocket be tax deductible?

Critter-3 — Wed, 21 Feb 2024 01:33:46 GMT

If you are asking that question I highly recommend you get some professional guidance. Did you file the proper paperwork with the IRS to get your exemption yet?

https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations

https://www.irs.gov/charities-non-profits/private-foundations/life-cycle-of-a-private-foundation-starting-out