Did you know that if you make a donation for Haiti relief efforts from January 11, 2010 to March 1, 2010 you can claim the tax deduction on your individual 2009 tax return? The IRS enacted a special relief provision on January 22, 2010 that allows you to deduct any cash donations made to a qualified charity for Haiti relief on your 2009 or 2010 Schedule A.
What does “cash” donation mean, and what is a “qualified” charity? A cash donation includes any donation made via a check, credit card, debit card or other form of cash payment. It does not mean property donations. A qualified charity is a United States non-profit organization as described in Section 501(c) (3) of the Internal Revenue Code. Many organizations qualify. If you are unsure, just ask.
Once I donate, what records do I need to keep to prove my donation? The best proof is a statement from the organization showing the amount donated, the date of donation, and the organization’s name. Other forms of proof are a cancelled check, credit card statement, or in the case of a text message donation, your phone bill so long as it shows the date of donation, to whom it was donated and the amount of the donation.
Just as with other charitable donations, only taxpayers who itemize their deductions on Schedule A can take the deduction (the phaze out on Schedule A deductions for higher income taxpayers still applies). This means that if you take the standard deduction, you cannot take any charitable donations. However since there is a choice as to the year you take the donation (2009 or 2010), just because you are not itemizing your deductions in 2009, does not mean that you will not be itemizing your deductions in 2010. So hang on to those receipts. For more information you can view a YouTube video on this subject and/or go to irs.gov.
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