Washingtonians: What Happens to Your $3 Presidential Fund Tax Contribution?

Washingtonians: What Happens to Your $3 Presidential Fund Tax Contribution?

Have you ever noticed the Presidential Election campaign check box on your tax form?

Do You Check The Presidential Election Campaign Fund On Your Tax Form?

It might surprise you to know where that tax deduction began and why you may or may not want to check that box on your next tax return. For years I checked the box but the ten years or so I haven't when I prepare my taxes.

A lot of people in Washington State don't check the box thinking that it will affect their refund but here is the real reason behind the Presidential Election campaign box on your tax form.

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The Presidential Election Campaign Fund was established in 1966 as a way to provide public funding for presidential elections.

When taxpayers check off the box on their tax return form to donate three dollars, that money goes into this fund.

However, it's important to note that donating to this fund does not increase your taxes or decrease your refund—it's simply a voluntary contribution.

One of the main ways that the Presidential Election Campaign Fund is used is to provide matching funds for eligible presidential candidates.

Candidates who agree to limit their spending and accept public funding are eligible for matching funds from this account.

This helps level the playing field for candidates who may not have access to large donor networks or personal wealth.

In addition, the fund also provides grants for party-nominating conventions and general election expenses.

Despite its original intentions, the use of public financing for presidential campaigns has declined in recent years. Many candidates now opt out of public funding in favor of raising money through private donations and Super PACs.

Do you realize that back in 1977, 29% of taxpayers donated $1 to the fund?

That number has drastically declined especially since they moved it from $1 to $3 in 1994.

On average, 2.9% of taxpayers check the box in 2023 because some taxpayers believe that it affects their tax return.

So when you get ready to do your taxes next year and want a competitive election that includes more than just the Republicans and Democrats, that's one way you can contribute to the election process by checking the box on your tax form.

You can read more here.