Charitable Tax Break Changes May Be ComingNovember 20th, 2013
Congress is considering changes to the charitable contributions tax deductions for 2012. Possible changes could include imposing a dollar cap on all itemized deductions, limiting the tax rate and replacing the deduction with a credit.
“We want to ensure that whichever policies we ultimately decide to pursue are crafted in a way that makes the tax code simpler, fairer and easier to comply with,” said Representative Dave Camp, chairman of the House Ways and Means Committee. “We want to hear from this community before considering proposals.”
Critics of the tax break site that it only benefits about one-third of the taxpayers who itemize deductions and most helps those with the highest incomes.
According to the Tax Policy Center in Washington, by 2015 82.3 percent of the tax benefits will go to the top 20 percent of taxpayers and about half to the top 1 percent. Nonprofits fear that eliminating or reducing the deduction will result in reduced giving, to the detriment to many underprivileged groups that benefit from charitable giving.
Tucson CPA and Tax Firm, Flower Rieger and Associates, P.L.L.C. offers tax preparation for businesses and individuals. The CPAs of Flowers Rieger are also offers aggressive tax strategies and planning, accounting and bookkeeping, financial statement preparation, estate and trust tax preparation and more CPA services.