Congress Approves Early Tax Deduction for Tsunami Donations
Cantwell: Tax incentive will encourage needed relief
WASHINGTON, D.C. – Taxpayers will be able to deduct donations made to tsunami relief organizations from their 2004 federal income taxes instead of waiting a whole year, after the Senate passed a bill today supported by Senator Maria Cantwell (D-WA).
Cantwell hopes the early tax relief will provide extra incentive for Americans to help victims of the deadly tsunami, which has claimed at least 155,000 lives in South Asia and Eastern Africa.
“The American people have already shown their characteristic generosity through their donations, and I have no doubt that this legislation will continue to encourage these contributions,” Cantwell said. “The proposal represents a simple and cost effective way to encourage immediate cash contributions for life-saving relief, while allowing taxpayers to claim a deduction today rather than next year.”
The bill (HR 241) will allow taxpayers to claim a deduction for cash donations made during the month of January to organizations providing tsunami disaster relief. Instead of waiting until they file their 2005 taxes, taxpayers will be able to claim the donation on their 2004 tax forms, due in April of this year.
Taxpayers who wish to wait and claim the donations on their 2005 tax forms may do so – it's entirely up to them.
The bill, which also passed the House today, will now be sent to the President for his signature.
Next Article Previous Article
