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.
You can purchase professional
tax return preparation software from us to prepare Form
1120-POL by clicking here.
Related tax
information about campaign contributions
IRS publications about campaign contributions and
Form 1120-POL: For further information about campaign contributions see IRS Publication 17,Your
Federal Income Tax.
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For further information regarding IRS
rules and regulations and your particular tax or IRS situation you should
consult with a Certified Public Accountant, Enrolled Agent, Attorney, or
other tax advisor.
U.S. Income Tax Return for Certain Political Organizations. 
