Haiti Relief = Tax Deduction for 2009 Taxes

Normally, a charitable contribution must be made during the tax year (1/1 – 12/31) in order to claim it on your taxes.  However, on January 22, President Obama signed HR 4462 into law.

Basically, taxpayers  can choose to deduct any charitable contributions made to help the earthquake victims in Haiti on their 2009 tax return rather than waiting until their 2010 return (thus getting the tax benefit of their contribution sooner).

Qualifications for 2009 Return Deduction:

• Contributions must be made between January 11, 2010 and March 1, 2010.
• Cash contributions only (other contributions can still be claimed on the 2010 return).
• Only contributions for the relief of victims in areas affected by the earthquake in Haiti on 1/12/10.
• The contribution must meet all other requirements for deducting cash contributions.

Records Required for the IRS:

• For those that made a $10 contribution via text message, a telephone bill showing the name of the donee organization, the date of the contribution, and the amount of the contribution is sufficient
• Contributions less than $250: You need a bank record such as canceled check, bank statement or credit card statement, a receipt from the organization, or a payroll deduction record
• Contributions greater than $250: You need written acknowledgement from the charitable organization or payroll deduction record

I know that most of us don’t make charitable contributions solely for the tax write off, but do you plan on deducting them in 2009 or would you rather wait until 2010?  For more frugal ideas, please visit Life as Mom.

Of course, please consult your personal tax adviser to determine when it would be most beneficial for you to take the deduction.