All Rights Reserved. Causes as diverse as political parties, conservation, medical research and public monuments all vie for the taxpayer's largesse. Every state with a broad-based income tax allows at least one checkoff, according to Sally Adams, JD, state tax analyst and editor, CCH State Tax Review .
Some states allow taxpayers to use a checkoff to make a donation by adding on to the taxes they owe.
In other states, checkoffs can be taken only from tax refunds. In both these instances, the only cost to the state is administrative. However, many states allow a political campaign contribution, which may come out of the taxpayer's tax liability. Most states follow the federal pattern, in which checkoffs direct how a portion of the individual's taxes will be spent, but do not affect the amount of refunds or taxes due. While some states follow the federal pattern of allowing only fixed dollar amounts through checkoffs, others present the taxpayer with a blank line that may be filled in with any amount.