Tax Alert: Retroactive 2009 Tax Deductions Available
1/28/2010
Taxpayers making contributions in calendar 2010 to charities providing earthquake relief in Haiti can claim these deductions on their 2009 income tax returns. Taxpayers itemizing their deductions on their 2009 returns qualify for this special relief provision, enacted January 22.
“Americans have opened their hearts to help those affected by the Haiti earthquake,” said IRS Commissioner Doug Schulman. “This new law provides an immediate benefit for the many taxpayers who have made generous donations.”
A similar provision was enacted early in 2005 for the Indian Ocean Tsunami donations.
Only cash contributions made after January 11, 2010 and before March 1, 2010 are eligible. This includes contributions made by text message, check, credit or debit card. Property contributions are not eligible. The contributions must be made specifically for the relief of victims in areas affected by the January 12, 2010 earthquake in Haiti.
Federal law requires taxpayers keep a record of any deductible donations they make. For donations made by text message, a telephone bill will meet the recordkeeping requirement if it shows the name of the donee organization, the date of the contribution and the amount. For cash contributions made by other means, be sure to keep a bank record with similar information.
Taxpayers have the option of deducting these contributions on either their 2009 or 2010 returns, but NOT both.
For further guidance on this and other tax issues, please contact George Sparacio or your J.H. Cohn engagement partner at 877-704-3500.
A. George Sparacio, CPA, is a J.H. Cohn tax partner and the Firm's Federal Tax Practice Director. He can be reached via email or at 973-618-6240.
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