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Ten Facts About Claiming Donations Made to
Haiti
The devastation in
Haiti has been horrific and I have been fielding many calls
regarding donations to assist those impacted by the tragedy.
Congress has enacted a new law that actually may benefit you this
tax season for donations made in 2010
If you are donating
to charities providing earthquake relief in Haiti, you may be able
to claim those donations on your 2009 tax return. Here are 10
important facts to know about this special provision.
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A new law allows you to claim donations for Haitian relief on
your 2009 tax return, which you will be filing this year.
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The contributions must be made specifically for the relief of
victims in areas affected by the Jan. 12 earthquake in Haiti.
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To be eligible for a deduction on the 2009 tax return, donations
must be made after Jan. 11, 2010 and before March 1, 2010.
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In order to be deductible, contributions must be made to
qualified charities and cannot be designated for the benefit of
specific individuals or families.
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The new law applies only to cash contributions.
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Cash contributions made by text message, check, credit card or
debit card may be claimed on your federal tax return.
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You must itemize your deductions in order to claim these
donations on your tax return.
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You have the option of deducting these contributions on either
your 2009 or 2010 tax return, but not both.
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Contributions made to foreign organizations generally are not
deductible. You can find out more about organizations helping
Haitian earthquake victims from agencies such as the U.S. Agency
for International Development (www.usaid.gov).
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Federal law requires that you keep a record
of any deductible donations you make. For donations by text
message, a telephone bill will meet the record-keeping
requirement if it shows the name of the organization receiving
your donation, the date of the contribution, and the amount
given. 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. Receipts should show the name of the charity, the
date and amount of the contribution.
Feel free to contact our office
if you have any questions about this new law
Michael T. McCormick, JD, LL.M.
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