Following a historically crazy election season, more clients are checking the “Yes” box in our Tax Organizer to the question about contributing to the Presidential Election Campaign Fund than have done so during all of my prior 29+ years of practice combined.
While most taxpayers probably aren’t even aware that this option exists, there is a box to check on the top right of the first page of your personal tax return (Form 1040) to designate $3 of your federal tax liability to be earmarked for the Presidential Election Campaign Fund. For joint filers, there is a second box for your spouse to check as well.
Please note that checking this box does not increase your tax liability by $3. Instead, the federal government simply allocates $3 from your total tax liability to the Presidential Election Campaign Fund.
While your specific vote will probably never be the one vote to determine the outcome of an election, taking time to actually vote is critical to our democracy. Same goes for the $3 you allocate to this fund that won’t be enough on its own to make or break anyone’s campaign.
However, having these campaign funds available might make a difference to a candidate who is neither a billionaire nor entrenched as part of the political establishment. Who knows, maybe one day someone as far removed from the political scene as a former surgeon can go on to become president of the United States thanks in part to these public campaign funds.
According to the instructions to the Form 1040:
Presidential Election Campaign Fund
This fund helps pay for Presidential election campaigns. The fund reduces candidates’ dependence on large contributions from individuals and groups and places candidates on an equal financial footing in the general election. The fund also helps pay for pediatric medical research. If you want $3 to go to this fund, check the box. If you are filing a joint return, your spouse can also have $3 go to the fund. If you check a box, your tax or refund won’t change.