Accounting for the rest of us

Congress working on tax deduction for Haiti donors

Taxpayers may be able to write off cash donations made to relief efforts in Haiti on their 2009 income tax returns.
The U.S. House unanimously passed a bill January 20 that would make donations made after January 11 and before March 1 deductible for 2009.
The goal is to encourage donations beyond the $275 million already given, according to estimates by The Chronicle of Philanthropy.The Senate is expected to pass the bill as well.

Don't assume donations are tax deductible, IRS says
If you make a donation to a Haiti relief effort and you are wondering whether it's tax-deductible, the IRS offered a few things to keep in mind.
Contributions to U.S.-based, tax-exempt charities that provide assistance to those in foreign countries can be counted as tax-deductible contributions on your federal income tax.
But donations to foreign organizations generally aren't deductible, and neither are contributions to specific individuals or families.

House votes for faster tax breaks for Haiti gifts
The U.S. House has passed a bill allowing taxpayers to write off donations to Haiti earthquake relief efforts when they file their 2009 taxes this spring.
Under current law, donors would have to wait until they file their 2010 returns next year to take the deductions. The bill would allow donations made by the end of February to be deducted from 2009 returns.
Last week's quake killed an estimated 200,000 people in Haiti. The bill passed the on a voice vote Wednesday, with no opposition. The Senate is expected to vote on the measure soon.

Donations to Haiti deductible for 2009
By NIRVI SHAH nshah@MiamiHerald.com
Cash donations to Haiti relief efforts are now officially deductible on 2009 tax filings.

President Barack Obama on Friday signed a bill passed by Congress to encourage Americans to continue giving to the beleaguered nation following a devastating Jan. 12 earthquake.

For an exemption, only monetary donations made specifically for Haiti relief made between Jan. 11 and March 1 qualify.

Contributions made by text message, check, credit card or debit card are acceptable. To claim the benefit, taxpayers must itemize their deductions on Schedule A.

Keep a record of any deductible donations you make. For texted donations, a telephone bill meets the requirement if it shows the name of the organization that benefited, as well as the date and amount of the donation.

For other contributions, keep a bank record, such as a canceled check, or a receipt from the charity showing its name and the date and amount of the contribution.

Remember that donations to foreign organizations generally are not deductible.

If you wish, you can deduct the contributions in 2010, but only if you didn't deduct them on you 2009 tax returns.