Anyone wishing to claim their donations for Haitian Earthquake Relief on their 2009 tax return must make those donations by the end of this week. Individuals and corporations have until midnight on Sunday, February 28th, to make cash contributions to charities providing earthquake relief in Haiti. These contributions can be claimed on either a 2009 or 2010 return, but not both. Contributions made after that date but before the end of the year can only be claimed on a 2010 return.
Contributions made by text message, check, credit card or debit card qualify for this special option. Donations charged to a credit card before the end of February count for 2009. This is true even if the credit card bill is not paid until after February 28th. Also, checks count for 2009 as long as they are mailed by the end of this month and clear your financial institution shortly thereafter.
Individuals must itemize their deductions on Schedule A to receive the tax benefit. Those who claim the standard deduction, including all short-form filers, are not eligible. This special deadline does not apply to contributions of property. Eligible contributions must be made specifically for the relief of victims in areas affected by the January 12th earthquake in Haiti. Gifts made directly to individual victims are not deductible. Taxpayers should be sure their contributions go to qualified charities. Contributions to foreign organizations generally are not deductible.
Taxpayers are required to 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. In addition, for text message donations of $250 or more, taxpayers must obtain a written acknowledgement from the charity. 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.
If you have questions relating to the upcoming deadline or what can be claimed as a charitable contribution, please contact your Cherry, Bekaert & Holland tax advisor.
Click here for a list of organizations providing relief to Haiti.
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