Americans Get Early Tax Break for Tsunami Donations

[Rose Siding]

WASHINGTON (Reuters) - President Bush (news - web sites) signed legislation on Friday giving Americans an early tax break for donations to charities supporting Asian tsunami relief efforts.

The legislation, approved by both houses of Congress, allows taxpayers to claim a deduction on their 2004 return due in April for cash donations for tsunami disaster relief made before Jan. 31.

Without the change, taxpayers would have to wait until they file their tax returns in 2006 to claim a tax deduction for tsunami-related gifts made this month.

At the same time, the White House released a series of advertisements to encourage Americans to make cash donations to reliable international relief organizations helping victims of the Dec. 26 tsunami.

The ads feature two former presidents, George Bush (news - web sites), the current president's father, and Bill Clinton (news - web sites).

http://story.news.yahoo.com/news?tmpl=story2&u=/nm/20050107/pl_nm/quake_usa_dc

President Bush...has contributed $10,000 from his personal funds to the relief effort, his spokesman said Wednesday.
http://sfgate.com/cgi-bin/article.cgi?f=/news/a/2005/01/05/national1340EST0579.DTL

[Mika]

1. Can we drown it in the bathtub yet? Is it weakened enough?

By any means neccessary

[eleonora]

2. $10,000?

(sarcasm)Woo, what a contribution for a man of his worth. The PRESIDENT OF THE US(/sarcasm)

[Cronus Protagonist]

3. He's our leader, der fuhrer, Herr Busch the Generous

[latebloomer]

6. Priceless!! n/t

[Coventina]

10. Yeah, Bush gives 1% of what Michael Schumacher gave

and we're supposed to be impressed!
:eyes:

[truthseeker1]

4. $10,000

It's a disgrace. Makes me want to :puke:

[recovering democrat]

5. charitable donation

Actually I am glad they passed this, so you can can deduct the amount of a charitable donation that you make prior to January 31st for the Tsunami disaster relief on your 2004 tax return. Be sure to keep your credit card bill or record, especially for an on-line donation, just in case you need it. (and don't forget when you do your taxes or to tell your tax preparer if you use one!)

Remember you don't lose it if you don't take it this year. You are still able to count it as a 2005 deduction next year if you want to do so.

I am not positive, but I believe people were surprised about how low the Bush charitable contributions were when they saw the figure form his tax return last year. $10,000 doesn't surprise me that it is so low - for him, it surprises me that it is this high!

[girl gone mad]

7. You still have to itemize youre deductions to get the tax break..

Most people use the standard decuction.

I wonder whatever happened to the idea of letting everyone deduct charitable gifts without having to itemize?

[HuckleB]

8. I don't know. But it should have happened long ago.

And I am saying that as someone who does itemize. There was a time when I didn't, and I know how ridiculous it is for those who usually make less not to get this deduction.

[recovering democrat]

9. itemized deductions

The charitable credit went away with one of the previous "tax cuts" our government handed to us. Always fascinates me that changes in the tax system balance out to still take more money out of my pocket while promising "tax breaks" to one group or the other when they vote on it.

Lots of things have gone away that now make it more difficult to itemize deductions for the average American. Lots of new good business credits though!

In my original post, I meant to say that it was possible to keep it for 2005 especially if you aren't able to itemize deductions this year - who knows, it may change next year!

[diatribe]

11. Think about the loopholes this is going to create.....

I would definitely itemize your deductions if you in the position to do so.

If you're in the right position, you can pay $0 in Federal taxes. Actually, you can even get money BACK due to the beauty of refundable credits.

And you don't have to be rich to do it.

[llmart]

12. I'm not singling you out or anything.....

but I just have to ask, why can't we just donate to causes we care about without always having to think "what's in it for me?" Americans should donate to causes they care about and not expect the fanfare, tax deduction etc. Of course, you-know-who gave his measly $10,000 and made sure it was all over the news, so we know what kind of a charitable give he is.

I can't itemize any more, but it doesn't stop me from giving to causes I believe in.