New Tax Break for Contributions to Haiti Earthquake Relief

Congress passed a new tax relief law allowing taxpayers who contribute in 2010 to charities providing earthquake relief in Haiti to take a tax deduction for the contribution on their 2009 tax return instead of their 2010 return.  This affords them an immediate tax benefit, rather than having to wait until next year.  The following requirements apply:

• Only cash contributions made to these charities after January 11, 2010, and before March 1, 2010, are eligible.  A cash contribution is considered to be a text message, cash, check, credit card or debit card charge.  
• The contributions must be made specifically for the relief of vicitims in areas affected by the January 12 earthquake in Haiti.  
• You may deduct these contributions on either your 2009 or 2010 returns, but not both.
• You must itemize your deductions on Schedule A.
• You must keep a record of any deductible donations you make.  Telephone records, receipts from the charity, cancelled checks and credit card statements will qualify as records.  

Make sure your contribution goes to a qualified charity.  Contributions to foreign organizations generally are not deductible.  Most organizations eligible to receive tax-deductible donations are listed in a searchable, online database available under "Search for Charities".  Some organizations, such as churches or governments, may be qualified even though they're not listed on IRS.gov.  

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