New Law to Allow Taxpayers to Claim Haitian Donations
A newly passed bill will allow taxpayers who make charitable contributions to Haiti relief programs before March 1, 2010, to claim those contributions on their 2009 income tax returns. Charitable contributions to qualified charities are generally deductible for individuals who itemize deductions on their tax returns. Charitable contributions are normally deductible in the year made or charged to a credit card.
The Senate, however, has unanimously passed legislation that allows taxpayers to deduct cash charitable contributions to aid victims of the devastating earthquake in Haiti. The bill was passed January 21, 2010, a day after the House of Representatives also unanimously approved the bill. The president is expected to sign the bill into law.
The bill also provides that a telephone bill will satisfy the recordkeeping requirements if it shows the name of the donee organization, the date of the contribution, and the amount of the contribution. Thus, a charitable contribution made by text message and chargeable to a telephone or wireless account qualifies if the bill from the telecommunications company contains the required information.



