Donating to Haiti Relief Today May Reduce Your Last Year's Tax Liability
In an effort to stimulate charitable giving to Haitian relief organizations, President Obama signed a law on January 23, 2010 which allows taxpayers to claim a charitable deduction on their 2009 income tax returns for donations made to Haiti relief efforts in 2010. This is in contrast to regular charitable deduction rules which require the taxpayer to claim the deduction in the year the donation is made, which, for most people began January 1, 2010.
Under the new law, however, taxpayers can deduct “cash” contributions made to a qualifying charitable Haitian relief organization after January 11, 2010 and before March 1, 2010 on their 2009 income tax returns – expediting the tax benefit to the taxpayer by one year. But remember, if you choose to claim the deduction on your 2009 return, you may not claim it again on your 2010 return!