Presidential election campaign fund checkoff

The presidential election campaign fund checkoff appears on US income tax return forms as the question Do you want $3 of your federal tax to go to the Presidential Election Campaign Fund?

Originally $1 and implemented in the 1970s as an attempt at the public funding of elections, this money provides for the financing of presidential primary and general election campaigns and national party conventions. Beginning with the 1973 tax year, individual taxpayers were able to designate $1 to be applied to the Presidential Election Campaign Fund. Both the Republican and Democratic nominees in the general election receive a fixed amount of checkoff dollars. Nominees from other political parties may qualify for a smaller, proportionate amount of checkoff funds if they receive over five percent of the vote. The national parties used to receive funds to cover the costs of their national conventions. Matching funds are also given for primary candidates for small contributions. The campaign fund reduces a candidate's dependence on large contributions from individuals and special-interest groups. This program is administered by the Federal Election Commission (FEC).

Requirements to be declared eligible include agreeing to an overall spending limit, abiding by spending limits in each state, using public funds only for legitimate campaign-related expenses, keeping financial records and permitting an extensive campaign audit.

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.

The federal government will match up to $250 of an individual's total contributions to an eligible candidate.

Only candidates seeking nomination by a political party to the office of President are eligible to receive primary matching funds. In addition, a candidate must establish eligibility by submitting to the FEC proof that at least $5,000 was raised in each of at least 20 states. Only a maximum of $250 per individual applies toward the $5,000 threshold in each state.

The spending limit increases every cycle due to inflation. The FEC estimates that the limits for the primary election will be $40.9 million, of which a candidate must abide by state limits of 65.4 cents per person of voting age population in a state, or $817,800, whichever is greater. Certain fundraising expenses (up to 20 percent of the expenditure limit) and legal and accounting expenses incurred solely to ensure the campaign's compliance with the law do not count against the expenditure limits.

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