If you have made donations to the earthquake relief efforts in Haiti, you may be able to take a deduction for your contributions on your 2009 tax return which is due April 15, 2010, instead of waiting to take the deduction next year. Here are 10 important facts about charitable contributions for Haiti.
- In order to be deductible, contributions must be made to qualified charities and can not be designated for the benefit of specific individuals or families.
- You must itemize your deductions in order to claim donations on your tax return.
- Cash contributions made by text message, check, credit card or debit card may be claimed on your federal tax return.
- Federal law requires that you keep a record of any deductible donations you make. For donations by text message, a telephone bill will meet the record-keeping requirement if it shows the name of the organization receiving your donation, the date of the contribution, and the amount given.
- Contributions made to foreign organizations generally are not deductible.
- A new law allows you to claim donations for Haitian relief on your 2009 tax return, which you will be filing this year.
- The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti.
- To be eligible for a deduction on the 2009 tax return, donations must be made after Jan. 11, 2010 and before March 1, 2010.
- The new law applies only to cash contributions.
- You have the option of deducting these contributions on either your 2009 or 2010 tax return, but not both.
Everybody's heart is with Haiti at this trying time. Make sure your followers are aware of these important facts about their generous donations by tweeting this post!
