Charitable contributions to Haiti

I am sure everyone has heard the heartbreaking stories concerning the horrific earthquakes that struck Haiti on January 12, 2010. I am also certain many generous individuals made charitable contributions to charities providing earthquake relief. Generally, taxpayers can only deduct charitable contributions on their 2009 tax return that are actually paid in 2009. However, due to the terrible tragedy in Haiti the government has ruled that taxpayers who made contributions after January 11, 2010 and before March 1, 2010 to charities providing earthquake relief are eligible to be deducted on taxpayers 2009 tax returns. This is a great tax saving tip because you get to accelerate the deduction much quicker then waiting until filing your 2010 tax return.

Please keep in mind that contributions to foreign organizations are generally not deductible. Also, please note that this new law only applies to cash contributions, not property contributions. In other words payments made by cash, check, credit or debit card will all be eligible. However, donating a bunch of nonperishable food products will not be eligible for a 2009 tax deduction. Lastly, you will want to keep a record of the deductible charitable contributions (i.e. cancelled check, receipt from the charity or other applicable bank record).