Do I have to pay tax on campaign contributions?

Campaign contributions are not taxable income to a candidate and do not have to be reported on the candidate's tax return unless they are diverted to his or her personal use. To be exempt from tax, the campaign contributions must be spent for campaign purposes or kept in a fund for use in future campaigns.

Excess campaign contributions transferred to an office account must be included in the office holder’s taxable income on his/her tax return, in the tax year transferred.

Interest earned on bank deposits, dividends received on contributed securities, and net gains on sales of contributed securities are taxable and must be reported as taxable income by the political organization on it's tax return, Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations.

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Related tax information about campaign contributions

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IRS publications about campaign contributions and Form 1120-POL:
For further information about campaign contributions see IRS Publication 17,

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