Walter & Shuffain, P.C.
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Good news for those who are donating to the Haiti relief efforts. The IRS has announced that donations made between January 12 and March 1, 2010 are eligible to be claimed as a charitable donation on their 2009 tax return. The contributions must be specifically for the relief of victims in areas affected by Haiti's January 12th earthquake and paid to qualified charities and cannot be designated for specific individuals or families. Contributions made to foreign entities are generally not deductible, but you can find out more about organizations helping Haitian earthquake victims from agencies such as the U.S. Agency for International Development.
In order to be claimed on your Federal tax return, you must itemize your deductions. The contributions must have been made in cash, check, text message, credit card, or debit card. Federal Law requires that you retain a record of your deductible donations. For cash contributions, a receipt will suffice. For cash paid by other methods, such as debit, or check, a bank statement or cancelled check would suffice as proof of payment. For text message donations, a telephone bill satisfies the records requirement. Each receipt should show the name of the qualified charity, the date of the contribution, and the amount.
You have the option of deducting the contributions on either your 2009 or 2010 tax return, but not both. Keep in mind the requirements to retain appropriate records is the same in both years.
If you would like more detailed information, please do not hesitate to contact us.