| WASHINGTON - People who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season or use the deductions on their 2010 tax returns, but not both, according to the Internal Revenue Service. The new law, which only applies to cash contributions and not to donations of property, is for taxpayers who are itemizing their deductions and not for those who are claiming the standard deduction.
Taxpayers who itemize deductions on their 2009 return qualify for this special tax relief provision, enacted Jan. 22. Only cash contributions made to these charities after Jan. 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card.
Taxpayers should be sure their contributions go to qualified charities. Most organizations eligible to receive tax-deductible donations are listed in a searchable online database available here although some organizations, such as churches or governments, may be qualified even though they are not listed on IRS.gov.
The IRS reminds donors that contributions to foreign organizations generally are not deductible. IRS Publication 526 provides specific information on making contributions to charities.
Federal law requires that taxpayers keep a record of any deductible donations they make. For donations 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 of the contribution. For cash contributions made by other means, be sure to keep a bank record, such as a cancelled check, or a receipt from the charity showing the name of the charity and the date and amount of the contribution.
This year's special Haiti relief provision is modeled on a 2005 law that, in the wake of the Dec. 26, 2004 Indian Ocean tsunami, allowed taxpayers to deduct donations they made during January 2005 as if they made the donations in 2004.
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