March 07, 2014

Hirono bill extends tax deduction deadline for charitable giving to Typhoon Haiyan recovery

The U.S. Senate has passed a bill sponsored by Hawaii Sen. Mazie Hirono and others that would incentivize charitable contributions to Typhoon Haiyan recovery efforts in the Philippines by allowing donors to receive their tax benefits about a year earlier than normal.

The legislation, called the Philippines Charitable Giving Assistance Act, was also introduced in the U.S. House of Representatives, where a vote is expected in the next several months.

Hirono noted that it's been nearly four months since the deadline typhoon swept over the Philippines. As many as 6,000 people died and nearly 1,800 people are still missing.

"This continues to be a heartbreaking situation, and I was moved by the stories shared with me this January by Filipino-American community advocates of their experiences touring damage in the Philippines,” Hirono, D-Hawaii, said in a statement. “Given the great deal of help still needed, the Philippines Charitable Giving Assistance Act will provide tax relief this year for families who have already donated and incentivize others to make new contributions.”

The tax code currently has a delayed incentive. Taxpayers can claim a tax deduction for charitable donations but will not receive it until after they file their tax returns the following year.

The proposed legislation would instead allow donors who contribute before April 15 of this year to take the deduction in their 2013 tax returns.

Read the entire piece here:

By:  Jenna Blakely
Source: Pacific Business News