Individuals and businesses will be allowed to take a deduction for donations given to charities providing relief to the victims of the earthquake in Haiti, if President Obama signs into law HR 4462, Haiti Charitable Deduction Bill. The House passed the bill on January 20, 2010; the Senate approved the bill on January 21. The bill now goes to Obama for signature. Obama signed the bill into law on January 22, 2010. You can read the full text of the actual bill (don't worry it's only two pages long).
Taxpayers are able to deduct on their 2009 tax returns donations given to charities providing relief efforts in Haiti. Donations of money or property given between January 12 and February 28, 2010, qualify for this retroactive deduction. Thus taxpayers will have the option to deduct these charitable contributions on either their 2009 returns or on their 2010 returns.
As with all charitable donations, people should keep receipts for their donations, including any canceled checks or receipts. Blogger Kay Bell reminds taxpayers to obtain a receipt for any donations made through texting.
Related news from other tax bloggers:
- U.S. Senate approves rapid tax deduction for Haiti relief contributions (AccountingWeb)
- Congress OKs accelerated tax deductions for donations to Haiti (Don't Mess With Taxes)
- Don't Give Special Tax Breaks for Haiti Relief (TaxVox)
- Haiti Earthquake Relief (CCH Tax Briefing)