Presidential Election Campaign Fund

[jainen]

Here's a subject we haven't discussed recently. Intuit and HRB are working with the Campaign Finance Institute to more accurately present the Presidential Election Campaign Fund to taxpayers. The new term is "designate" instead of "contribute." They will also explain it as, “The fund reduces candidates’ dependence on large contributions from individuals and groups and places candidates on an equal footing in the general election.”
press release at http://www.cfinst.org/pr/111005.html

Personally, I welcome a bit of industry guidance on this checkbox. I've always felt awkward about it.

[Armando Beaujolais]

The $3 checkoff irks me. The concept is wonderful. As with so many things, what seems like a great idea quickly loses its luster when you examine the details.

A taxpayer referendum on how their tax dollars are spent? What a great concept! The $3 designation allows taxpayers to "vote" with their dollars and how they're spent. Sounds wonderful.

Why Presidential election public financing? Isn't health care important? What about national defense? Highways? Education? Immigration?

Start answering the question "why" this $3 designation is on the tax form and other choices aren't, and you'll start running into all sorts of trouble with the concept. You can bet the checkoff isn't on the form because political opponents of public financing wanted it there.

I wish they'd stop using Form 1040 to forward a political agenda. It's messed up enough as it is.

[Bees Knees]

States do that sort of thing all the time. Some states devote half the back side of their tax return to all kinds of worthy causes. Of course those will cost you extra tax, unlike the Presidential Election Campaign fund.

[wv112]

States do that sort of thing all the time. Some states devote half the back side of their tax return to all kinds of worthy causes. Of course those will cost you extra tax, unlike the Presidential Election Campaign fund.

That $3 doesn't come out of the refund nor is it added to tax due. So where does it come from??? It's still the taxpayer's money that can go to other federal progams.

I have never marked YES on any tax return I prepare.

[B C]

Extra Contributions

States do that sort of thing all the time. Some states devote half the back side of their tax return to all kinds of worthy causes. Of course those will cost you extra tax, unlike the Presidential Election Campaign fund.

California is a great one for that. You can choose from 13 or so on the last page of the tax return. They want to put more on but now they have to remove some. I guess if they don't get a big response then they drop them and put on a new one. It's almost as bad as they are now collecting taxes on out of state purchases from companies that didn't charge sales tax. I guess any way to get more money is ok. Of course the taxpayer will be more than happy to report all purchases that they didn't pay sales tax on the pay them on their tax return.

[jainen]

extra tax

>>those will cost you extra tax<<

Contributing to these programs doesn't cost any tax at all. They are charitable contributions and deductible as such. When clients use this feature you must adjust their numbers for deductible state tax payments and taxable refunds.

[Black Bart]

Good Question

That $3 doesn't come out of the refund nor is it added to tax due. So where does it come from??? It's still the taxpayer's money that can go to other federal progams.

I have never marked YES on any tax return I prepare.

Where does that money come from? Most of the state stuff comes out of the refund.

I always mark it no also--taxpayers don't seem to care one way or the other.

[Unregistered]

New clients I ask. Old clients SALY unless they've changed it on their organizer or specifically mention it . About 5% want to designate, most of the rest indicate there disinclination in rather strong fashion.

[John of PA]

Donations

Such questions, in my opinion do not belong on a tax return. Taxes are complicated enough,without adding more confusion with these questions. Why should we as preparers, trying to do an efficient job for our clients, take that extra few seconds to ask this question, or to expain what it means? Some preparers, I notice, just leave it blank and have the client fill it out, if they wish. Ever had to re print a tax return becasue the client picked up that the question is answered wrong? Wow, what a waist of time during our busy season. The worthiness of the casue is not the issue, it does not belong on a tax return. Also there is no representation from citizens who are not required to file or who pay no tax, unfair indeed.

[jainen]

feel the same

John, do you feel the same way when your clients give the money directly to an organization and then use the tax return Sch. A to report it?

[Ken]

Ken

I could'nr agree more with Armando. If they want us to contribute to something, then put some choices in there that the common people actually care about.

[Black Bart]

Aridzona Man

Where've you been? I thought maybe you got lost in the Mojave Desert looking for the"Lost Dutchman" mine.

[Snaggletooth]

Me Too

Good grief, it's Ken! I, too, thought he has been lost in the Superstition Mountains.

I have always viewed the Political CheckOffs as a nuisance. During the process of preparing the return, there are always speed bumps which can literally stop a Greyhound Bus. None of these speed bumps are as useless as the Political Designation, which doesn't increase or decrease your tax.

If you REALLY want to waste time, how many of you actually found ANY interest at all pertaining to the choice of whether the taxpayer wants to designate $1 or $3? This is the depth of stupidity on part of the government. I don't even blame the IRS for this - it is our congressmen trying to band-aid a hemmoraging poltical problem of campaign financing. Typical of their "solutions."

[Armando Beaujolais]

Good grief, it's Ken! I, too, thought he has been lost in the Superstition Mountains.

I have always viewed the Political CheckOffs as a nuisance. During the process of preparing the return, there are always speed bumps which can literally stop a Greyhound Bus. None of these speed bumps are as useless as the Political Designation, which doesn't increase or decrease your tax.

If you REALLY want to waste time, how many of you actually found ANY interest at all pertaining to the choice of whether the taxpayer wants to designate $1 or $3? This is the depth of stupidity on part of the government. I don't even blame the IRS for this - it is our congressmen trying to band-aid a hemmoraging poltical problem of campaign financing. Typical of their "solutions."

I old enough to have done a lot of tax returns with a pencil (old fashioned writing implement - replaced the quill pen). Is it my imagination, maybe someone else can recall.

Didn't the old Form 1040 have a checkoff where you could make a contribution to retire the national debt? I know it was either on the form or in the instructions.

Right.

[John of PA]

$ 3.00 and rising

Jainen, no I don't feel the same way about deducting charity on Sch A becasue deducting it on Sch. A effects the amount of taxes your paying which makes it relevant, where the check-off box does not, the check off box is simply pure politics. A.B., Yes I remember where (and I think is is still true today) you can donate your refund or a portion of it to the national debt; simply by writing such next to the refund line. I have seen this done by clients who have, say a three dollar refund and do not want to be bothered with the paperwork, so they donate it to the national debt.