Form 1120-POL PDF is an annual income tax return that must be filed by organizations with political organization taxable income exceeding $100 for the taxable year. Only taxable income (generally, the organization's investment income) is reported on Form 1120-POL. A political organization may not deduct the salaries, rents, and other expenses it incurs for its political campaign activity on Form 1120-POL, but only those expenses that are directly related to earning taxable income. For example, the organization may not deduct the salary of its campaign director. If, however, the organization hires a broker to manage its stock portfolio, it can deduct that expense from the taxable dividend and capital gain income derived. Additional information What a taxable political organization reports on Form 1120-POL Deductions Allowed on Form 1120-POL