President Obama recently signed legislation allowing a 2009 tax deduction for cash donations made in early 2010 specific to Haiti relief. The cash donations must be made after January 11, 2010 but before March 1, 2010 and must be for the benefit of areas of Haiti affected by the earthquake on January 12, 2010. Cash includes donations made by check, credit card, debit card, or text message.
Ordinarily, charitable contributions may only be deducted in the year in which they are paid, but this law allows you to choose to take a charitable contribution deduction in either 2009 or 2010. Generally, you should choose to take the deduction in the year in which you will derive the most benefit from it.
It is important to note that all regular rules regarding charitable contributions still apply. For instance, you may only take the charitable contribution deduction if you itemize deductions on your tax return. The contribution must also be made to a qualifying U.S. charity (as donations to foreign organizations generally are not deductible).
If you would like more information on the Haiti Earthquake Relief deduction, please contact the experts listed below at (800) 270-9629.
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