Haiti Relief Donations Qualify for Immediate Tax Relief
The Internal Revenue Service has announced that people who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season (i.e. the return for tax year 2009, which is due April 15, 2010).
Taxpayers who itemize deductions on their 2009 return qualify for this special tax relief provision, enacted Jan. 22. Only cash contributions made to these charities after Jan. 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card.
The new law only applies to cash (as opposed to in-kind) contributions. The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti. Taxpayers have the option of deducting these contributions on either their 2009 or 2010 returns, but not both.
Only taxpayers who itemize their deductions on Schedule A may take advantage of this deduction. Those who claim the standard deduction, including all short-form filers, are not eligible.
Taxpayers should be sure their contributions go to qualified charities. Most organizations eligible to receive tax-deductible donations are listed in a searchable online database available on the site: IRS.gov, under “Search for Charities”. Some organizations, such as churches or governments, may be qualified even though they are not listed on the site: IRS.gov. Donors can find out more about organizations helping Haitian earthquake victims from agencies such as USAID.
Federal law requires that taxpayers keep a record of any deductible donations they make. For donations by text message, a telephone bill will meet the recordkeeping requirement if it shows the name of the donee organization, the date of the contribution and the amount of the contribution. For cash contributions made by other means, be sure to keep a bank record, such as a cancelled check, or a receipt from the charity showing the name of the charity and the date and amount of the contribution. Publication 526 has further details on the recordkeeping rules for cash contributions.