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Helping Haiti: How to claim donations in 2009 – Tax Tip of the Week February 3, 2010

Posted by bradstreetblogger in : Uncategorized , trackback

Haiti_textIf you are donating to charities providing earthquake relief in Haiti, you may be able to claim those donations on your 2009 tax return.  Here is what the IRS wants you to know:

1. A new law allows you to claim donations for Haitian relief on your 2009 tax return, which you will be filing this year.
2. The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12th earthquake in Haiti.
3. To be eligible for a deduction on your 2009 tax return, donations must be made after January 11, 2010 and before March 1, 2010.
4. In order to be deductible, contributions must be made to qualified charities and cannot be designated for the benefit of specific individuals or families.
5. The new law applies only to cash contributions.
6. Cash contributions made by text message, check, credit card or debit card may be claimed on your tax return.
7. You must be able to itemize your deductions in order to claim these donations on your tax return.
8. You have the option to deduct these donations on either your 2009 or 2010 tax return, but not both.
9. Contributions made to foreign organizations are generally not deductible.  You can find out more about organizations helping earthquake victims such the U.S. Agency for International Development (www.usaid.gov)
10. As always, keep your receipts to document your donations.

We wish the people of Haiti the best as they recover from this disaster.

As always, give us a call if you have any questions. In Dayton, call 937-436-3133 and in Xenia, call 937-372-3504. Or visit http://www.bradstreetcpas.com.

Rick Prewitt – the guy behind TTW

…until next week.


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