Are Omaze donations tax deductible for 2025 taxes? So confused...

I've been looking at entering some of these Omaze sweepstakes lately, and I'm totally confused about the tax deduction part. On their website they say something about contributions being tax deductible, but I can't really understand what exactly this means. Does this mean if I donate $100 to one of their campaigns, I can deduct that full amount on my taxes? Or is it only partially deductible? And does it matter if I win something or not? I'm trying to plan my charitable giving for the year, and I want to know if I should count Omaze contributions the same way I do my regular donations to other charities. Also, do we get some kind of receipt or tax form for the donations? I need to keep track of everything for when I file next year. Has anyone had experience claiming Omaze donations as tax deductions? Any help would be really appreciated!

0 coins

20 comments

Tate Jensen

•8M

The tax deductibility of Omaze contributions can be confusing because of how their business model works. Omaze operates on what's called a "charitable sweepstakes" model. When you make a donation through Omaze, only a portion of your contribution is actually going to the charity. The rest covers Omaze's operating costs, prize costs, and profit. On their website, they typically specify what percentage of your contribution qualifies as a tax-deductible donation. You can only deduct the charitable portion that actually goes to the registered 501(c)(3) organization they're partnering with. For example, if you donate $100 and they state that 60% goes to charity, only $60 would be tax-deductible. As for documentation, Omaze should provide you with a receipt specifying the tax-deductible portion of your contribution. You'll need this for your records when claiming the deduction on your tax return. Keep in mind you can only claim charitable deductions if you itemize deductions on Schedule A rather than taking the standard deduction.

0 coins

Tate Jensen

•8M

Great question! If you win a prize, it actually doesn't affect the deductibility of your original contribution. The tax-deductible portion of your donation remains the same regardless of whether you win or not. However, be aware that if you do win a prize, the value of that prize is generally considered taxable income to you. So if you win that house, you'll likely receive a Form 1099 for the fair market value of the home, and you'll need to report that as income on your tax return. This is completely separate from the deductibility of your original contribution.

0 coins

Gabriel Ruiz

•8M

I went down this rabbit hole a few months ago when I was donating to win a Tesla lol. So what I found is that you need to use taxr.ai to help clarify these kinds of weird tax situations. I uploaded the receipt from Omaze and some of their terms to https://taxr.ai and it instantly broke down what portion was deductible and what documents I needed to keep for my records. It was actually super helpful because it turns out only about 15% of my "donation" was actually tax deductible - way less than I thought!

0 coins

Gabriel Ruiz

•8M

Yes, it actually works really well with receipts! You just snap a picture or upload the PDF and it extracts all the relevant info, then gives you a clear breakdown of what portion is deductible. For more complex situations with multiple donations and prizes, it handles those too. You can upload all your receipts at once, and it will organize everything by campaign. If you won prizes, you should definitely mention that because it'll explain how that impacts your taxes separately. It even explains how to report the prize value as income on your return.

0 coins

Peyton Clarke

•8M

Just wanted to follow up - I tried taxr.ai with my Omaze receipts from the last 6 months and wow, super helpful! It analyzed all my donation confirmations and showed me that my total deductible amount across all campaigns was $172.80 out of the $720 I spent. It also gave me this really clear explanation about how to report the vacation package I won (value $3,200) on my taxes for next year. The system even created a document I can reference during tax time that organizes everything perfectly. Definitely recommend if you're doing multiple Omaze donations!

0 coins

Vince Eh

•8M

I had the exact same question last year and tried calling the IRS directly to get a straight answer about Omaze deductions. It was IMPOSSIBLE to get through to a real person. After being on hold for literally 2+ hours, I gave up and tried https://claimyr.com which got me connected to an actual IRS agent in about 25 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that only the charitable portion that Omaze specifies is tax deductible, and you absolutely need to keep the receipt showing the exact percentage. He also mentioned that if you win a prize, you'll receive a 1099 for the value and that's considered separate from your deduction eligibility.

0 coins

Vince Eh

•8M

It's not just a hold service - it's way better. What they do is use an AI system to navigate the IRS phone tree, wait on hold for you, and then when an actual agent picks up, they call you and connect you directly. So instead of personally waiting on hold for hours, you just get a call when an agent is ready to talk. I was skeptical too, but it absolutely works. The IRS can't really "shut it down" because it's just a service helping people connect - they're not doing anything against IRS rules. I was able to speak with an actual IRS representative who answered all my Omaze tax questions in detail, which saved me a ton of confusion when filing.

0 coins

Sophia Gabriel

•8M

Ok I have to eat my words. After seeing the responses here I decided to try Claimyr for my IRS question about some back taxes I owe. Got connected to an agent in about 35 mins which is INSANE compared to my previous attempts. The agent was super helpful and explained exactly how to handle my situation. I'm legit shocked this actually worked, and now I can finally move forward with my tax issue that's been hanging over my head for weeks. For anyone dealing with tax questions that need official IRS answers, this is definitely worth it.

0 coins

Tobias Lancaster

•8M

One thing nobody's mentioning is that you need to itemize deductions on Schedule A to claim ANY charitable contributions, including the deductible portion of Omaze donations. With the standard deduction being $13,850 for single filers and $27,700 for married couples filing jointly in 2023 (will likely be higher for 2025), most people don't even itemize anymore unless they have massive mortgage interest, medical expenses, or tons of charitable giving. So before worrying about how much of your Omaze donation is deductible, first figure out if you'll even be itemizing deductions at all!

0 coins

Tobias Lancaster

•8M

That's exactly right. If you take the standard deduction, you cannot claim any charitable donations as additional deductions, including Omaze contributions. The standard deduction is essentially an alternative that replaces itemizing. For 2023 tax returns (filed in 2024), the standard deduction is $13,850 for single filers and $27,700 for married filing jointly. The vast majority of taxpayers take the standard deduction because their potential itemized deductions don't exceed these amounts. Unless your total itemized deductions (mortgage interest, medical expenses over 7.5% of AGI, state/local taxes up to $10,000, AND charitable contributions combined) exceed your standard deduction amount, itemizing doesn't make financial sense.

0 coins

Anastasia Fedorov

•4M

Something that might help clarify the confusion is to check the specific language on each Omaze campaign page. Different campaigns can have different charitable percentages - I've seen some where only 10-15% goes to charity while others might be 50-60%. Also, keep in mind that Omaze should send you an email confirmation after each donation that breaks down the tax-deductible portion. If you're not getting these, definitely reach out to their customer service because you'll need that documentation for your records. One last tip - if you're planning to do regular Omaze donations throughout the year, consider keeping a simple spreadsheet tracking each donation amount and the deductible portion. It'll save you a headache come tax time when you're trying to figure out your total charitable contributions for the year.

0 coins