Bush Tax Plan Promotes Charitable Giving

Citing a desire to make it easier for faith-based and community organizations to offer social welfare programs, President Bush is moving ahead with an initiative to allow non-itemizers a tax deduction for charitable donations.

House Ways and Means Committee member Jennifer Dunn (R-Washington) has indicated her willingness to introduce the legislation. A similar bill introduced by Dunn in the 106th never reached fruition. The proposed legislation will enable single taxpayers to deduct up to $500 of charitable contributions without itemizing deductions; married taxpayers filing joint returns will be able to deduct up to $1,000 in donations.

The bill will give taxpayers until April 15 of the following year to make donations and claim them as a deduction on their prior year tax return. Another provision of the bill will allow older taxpayers an opportunity to rollover funds from tax-deferred retirement accounts to charitable organizations, bypassing the income tax on the donated amounts.

In addition, the proposed legislation will increase the corporate giving level from 10% of taxable income to 15%.

Finally, the legislation will encourage states to provide a credit of up to 50% of the first $500 donated (the first $1,000 for married taxpayers filing jointly), such funds to be diverted from the states' Temporary Assistance to Needy Families programs.

The proposed legislation is expected to be introduced into the House of Representatives in February.

You may like these other stories...

School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...
Many senior US tax professionals believe that a streamlined audit process will be the top benefit resulting from the IRS Transfer Pricing Audit Roadmap, a new toolkit organized around a notional 24-month audit timeline,...
Tax accounting to be simplified for money-market fundsThe US Securities and Exchange Commission (SEC) voted 3-2 on Wednesday for sweeping changes to institutional money-market funds, Emily Chasan, senior editor of...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.