Unfortunately, raising money is a critically important component of any political campaign. Fortunately, a tax credit is available for contributions of up to $50 for an individual and $100 on a married/joint tax return. For 2011 the credit is on line 55 on the Ohio IT 1040 and explained on page 31 of the Ohio IT 1040 booklet. This is a dollar-for-dollar full credit. Therefore, the donation costs the donor nothing. If you would like this tax credit and wish to help me, I need your check dated by December 31st. Please make it payable to: Friends of Becker, 925 Locust Lane, Cincinnati, OH 45245-1313. I can also accept credit card and/or PayPal contributions by clicking the above "Donate" button. Please do so before the end of the year for the 2011 credit. For more details, I've created a tax credit page.
As you know, I am running for the Ohio House in 2012. It is the 65th House District and encompasses the northwestern corner of Clermont County. Joe Uecker is currently my State Representative. Due to term limits, he will not be running for re-election. (However, he is running for State Senate.)
Many of you have contributed to my campaign and I thank you for that. The rest of this letter is for those who have not.
This is your opportunity to take advantage of the line 55 Ohio IT 1040 Political Contributions Tax Credit. That credit has helped me to raise nearly all of my donations so far. Few people take advantage of this credit. Most people don’t understand it. Or they don’t understand how a contribution could be FREE to them.
All Ohio taxpayers file a federal 1040 and a state 1040. Most people have a tax professional do the work for them and may not fully understand the differences between the federal deductions & credits and the state deductions & credits. They are all different.
Political contributions have no value on the federal 1040. They are not deductible from gross income and there is no credit available.
However, on the Ohio 1040, a line 55 credit is available for contributions to “state” candidates. State candidates include all statewide offices with the exception of US Senate. The General Assembly (both State House and State Senate) and state school board are also included.
A credit is not a deduction from taxable income like a charitable donation. A credit is a reduction of the tax itself and therefore far superior. It's off the bottom line. In basic terms, the math works as follows:
Gross Income (Salary, Interest, Dividends, etc.)
Less Deductions and Exemptions
= Taxable Income
A tax is then derived from the tax table.
= Tax Liability
Less Tax Payments (Withholdings)
= Refund or Amount Due
Please do me a favor and take advantage of the Ohio Political Contributions tax credit. It is dollar-for-dollar and worth $50 per taxpayer. It is worth $100 on a married/joint tax return. The above calculations demonstrate why you can donate to my campaign for FREE. I will mail you a receipt for your tax records.
Another way to think of it is that you will decide how to allocate your tax dollars. You can send me $50 ($100 for married/joint filers) and reduce what the state government collects from you by $50 per taxpayer. Or do nothing and let the state government keep your money.
If you prefer to use a credit card, you must do so by 12/31/2011 for you to take advantage of the 2011 credit. Please use this secured link:
If you prefer to send me a check or money order, it must be dated by 12/31/2011 for you to take advantage of the 2011 credit. The postmark is not important. Please send to:
Friends of Becker
925 Locust Ln.
Cincinnati, OH 45245-1313
Thank you very much for your consideration. All the best!