Presidential Campaign Fund box on 1040 form

[gregintenn]

Who checks this box and why? I never have, but don't really understand how it works.

[taxref]

Checking the box means that you agree to have $3 go to the Presidential Election Campaign Fund.  Its basically a way to designate spending $3 of your tax money for a specific purpose.  Many who contribute are those interested in politics, or concerned about campaign financing.

This law was originally enacted in the early 1970s, due to concerns about how the presidential campaigns were being funded.  The intent was that people could voluntarily start a government fund, which would be given to the top contenders (from both parties) running for president.  The thinking was that the fund would greatly reduce the influence of outside contributors on the elections.  Needless to say, that was a bust.  

There are formulas which determine which candidates get how much from the fund.  Especially since the Citizens United court case, the millions from the "check the box" fund pales in comparison to the amounts donated by vote buyers....er, I mean, large outside contributors.  

[gregintenn]

Thank you very much for the very good explanation.

So who checks it? Should I?

[ArchietheDragon]

From the wiki page:

"Checking the box does not change the amount of an individual's tax or refund. The $3 is paid by the government. In other words, checking the box causes the federal government to receive $3 less in tax revenue for other spending, than if one hadn't checked the box."



That is interesting.   Weird, but interesting. 

[gregintenn]

Jan 14, 2016 15:49:39 GMT -5 ArchietheDragon said:

From the wiki page:

"Checking the box does not change the amount of an individual's tax or refund. The $3 is paid by the government. In other words, checking the box causes the federal government to receive $3 less in tax revenue for other spending, than if one hadn't checked the box."



That is interesting.   Weird, but interesting. 

That's how I always understood it. I think it used to be one dollar many moons ago.

[ArchietheDragon]

Jan 14, 2016 16:03:10 GMT -5 gregintenn said:

Jan 14, 2016 15:49:39 GMT -5 ArchietheDragon said:

From the wiki page:

"Checking the box does not change the amount of an individual's tax or refund. The $3 is paid by the government. In other words, checking the box causes the federal government to receive $3 less in tax revenue for other spending, than if one hadn't checked the box."



That is interesting.   Weird, but interesting. 

That's how I always understood it. I think it used to be one dollar many moons ago.

I thought it was an additional contribution.         Seems strange, to me, the way it is set up. 

[taxref]

From gregintenn: So who checks it? Should I?


No one *has* to check it.  I currently have no clients who make the election.  Its your choice completely, and it doesn't affect your tax return either way.  

"I think it used to be one dollar many moons ago."

It was $1 when it started.  I was in college at the time, and there was some debate over the issue.  Many said it started a bad precedent, amidst worries that tax returns would eventually come with a huge list of check-the-box options.  That has been a problem with some state tax departments, but not the feds.

From ArchietheDragon: "I thought it was an additional contribution. Seems strange, to me, the way it is set up. "

On state returns, one generally cannot make a check-the-box donation to anything unless the taxpayer is getting a refund.  The refund is then reduced by the contribution.  That way, the state treasury loses no funds.  The federal Presidential Election fund is different.

[TheOtherMe]

I have never checked it.

[Deleted]

I don't check off any of these boxes, either. I suppose the idea behind the Federal one was that it would level the playing field and allow candidates with no personal wealth and no big-money interests supporting them to have a fair chance, but I'm not sure it's had an impact.

[teen persuasion]

Jan 15, 2016 17:13:20 GMT -5 taxref said:

From gregintenn: So who checks it? Should I?


No one *has* to check it.  I currently have no clients who make the election.  Its your choice completely, and it doesn't affect your tax return either way.  

"I think it used to be one dollar many moons ago."

It was $1 when it started.  I was in college at the time, and there was some debate over the issue.  Many said it started a bad precedent, amidst worries that tax returns would eventually come with a huge list of check-the-box options.  That has been a problem with some state tax departments, but not the feds.

From ArchietheDragon: "I thought it was an additional contribution. Seems strange, to me, the way it is set up. "

On state returns, one generally cannot make a check-the-box donation to anything unless the taxpayer is getting a refund.  The refund is then reduced by the contribution.  That way, the state treasury loses no funds.  The federal Presidential Election fund is different.

NY is ridiculous, with the number of funds you can contribute to.  They do let you contribute even if you owe - it just gets added onto your total.  Not on my  return!

[tallguy]

I currently have no clients who make the election.

Not surprising.  There is far too much money spent on political campaigning as it is.  Why in the hell would anyone want to put MORE into it?   

[Deleted]

I check it. I think campaign financing should come more from the people and lass from corporations and special interests.

[taxref]

"Why in the hell would anyone want to put MORE into it?"

The original hope was that the Presidential Election Campaign Fund would greatly reduce the influence of special interests in presidential campaigns.  Since the government fund is distributed by formulas, no candidate has to make a deal with anyone to get those funds.  Unhappily, the idea did not work.  The government money now only supplements, rather than replaces, special interest money. 

[tallguy]

Yes, I know.  The question was posed from the basis that the original intent did not at all lead to the desired result.  Hence the .

And we really have no need for supplements here.