Friday, February 19, 2010

Donations for Haiti Relief Paid in 2010 may qualify to be Deducted on Your Tax Return in 2009

Certain Cash Contributions for Haiti Relief Can Be Deducted on Your
2009 Tax Return
Congress passed a new law which allows you to choose to deduct certain charitable contributions of
money on your 2009 tax return instead of your 2010 return. The contributions
must have been made after January 11, 2010, and before March 1, 2010, for the
relief of victims in areas affected by the January 12, 2010, earthquake in Haiti.
Contributions of money include contributions made by cash, check, money order,
credit card, charge card, debit card, or via cell phone.
The new law was enacted after the 2009 forms, instructions, and publications
had already been printed. When preparing your 2009 tax return, you may
complete the forms as if these contributions were made on December 31, 2009,
instead of in 2010. To deduct your charitable contributions, you must itemize
deductions on Schedule A (Form 1040) or Schedule A (Form 1040NR).
The contribution must be made to a qualified organization and meet all other
requirements for charitable contribution deductions. However, if you made the
contribution by phone or text message, a telephone bill showing the name of the
donee organization, the date of the contribution, and the amount of the
contribution will satisfy the record keeping requirement. Therefore, for example, if
you made a $10 charitable contribution by text message that was charged to
your telephone or wireless account, a bill from your telecommunications
company containing this information satisfies the record keeping requirement.

Contact us for more information at www.firsttaxsolution.com

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