My friend mentioned it last week, and today I read a good post from Outright detailing how your donations to the Haiti relief effort can be tax deductible for your 2009 return.
- Federal law requires that you keep a record of any donations you make.
- To be deductible, contributions must be made to qualified charities. Donations can not be designated for the benefit of a specific individual or family.
- Generally contributions to foreign organizations are not deductible.
- In order to claim charitable deductions, you must itemize your deductions on Schedule A of Form 1040.
- A new law allows you to claim donations for Haitian relief on your 2009 tax return, which you will be filing in 2010.
- 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 your 2009 tax return, donations must be made between Jan. 11, 2010 and March 1, 2010.
- Only cash contributions will qualify to be deducted on your 2009 return under this new law.
- Contributions made by text message, check, credit card or debit card qualify. 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.
- You have the option to take a deduction on either your 2009 or 2010 tax return, but not both.