People’s hearts have been moved to really help out with the very tragic earthquake in Haiti. Donations are pouring in from every source. Now the IRS is looking to assist us. Typically, you can deduct your charitable donations in the year that follows your donation. However, for the Haitian effort specifically, you can deduct your donations on this tax return. Here are a few things that you need to know to take advantage of the deduction:
- A new law allows you to claim donations for Haitian relief on your 2009 tax return, which you will be filing this year.
- The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti.
- To be eligible for a deduction on the 2009 tax return, donations must be made after Jan. 11, 2010 and before March 1, 2010.
- In order to be deductible, contributions must be made to qualified charities and can not be designated for the benefit of specific individuals or families.
- The new law applies only to cash contributions.
- Cash contributions made by text message, check, credit card or debit card may be claimed on your federal tax return.
To see the complete article that the IRS has posted, please feel free to refer to the following link: http://www.irs.gov/newsroom/article/0,,id=218678,00.html.