Identification

• IRS Publication 529, which covers miscellaneous deductions, states that you cannot deduct contributions made to political candidates or campaign committees. In addition, other types of political contributions, such as tickets to fund-raisers and other functions that benefit a candidate or political party are not deductible.
  
  

Prevention/Solution

• Taxpayers cannot deduct presidential or other political contributions, but the IRS does allow you to contribute $3 of your income taxes to the Presidential Election Campaign Fund. Your 1040 income tax return form offers you this choice. If you check "yes," $3 of your taxes go into this fund. Checking "yes" does not increase your income tax liability or reduce the amount of any refund to which you may be entitled.
  
  

Features

• Every four years, the Presidential Election Campaign Fund distributes funds to qualified presidential candidates and national political party committees. The Democratic and Republican presidential nominees receive a set amount of funds from the Presidential Election Campaign Fund. The national political parties receive money from the fund to defray the costs of their national conventions, according to the Federal Elections Commission, which administers the fund. Nominees from minor parties, such as the Libertarian or Green parties, may qualify for money from the fund as well if they receive at least 5 percent of the vote in the general election.
  
  

Benefits

• Candidates in the U.S. presidential primaries also can receive matching funds from the Presidential Election Campaign Fund. The fund matches individual contributions of up to $250, the FEC says. The campaign fund does not match contributions from political parties or political action committees.
  
  

History

• Congress adopted the Presidential Election Campaign Fund checkoff option for taxpayers in the 1970s to reduce the dependence of presidential candidates on large contributions from wealthy contributors. The IRS reports that about 33 million U.S. taxpayers check the "yes" box each year, contributing to the Presidential Election Campaign Fund.