Obama Gives Early Deduction For Haiti Relief Contributions

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The tragedy in Haiti left many people wanting to help in any capacity possible.    Congress even called upon all Americans to contribute what they could by passing a new tax incentive.  On January 22, President Obama signed a law to give taxpayers an early deduction for contributions made towards earthquake relief in Haiti.  The contribution must be made after January 11, 2010, and before March 1, 2010.  

If you make a monetary contribution through your cell phone via a text message, you may use your telephone bill to substantiate your contribution. The telephone bill must show the name of the charitable organization, the date of the contribution, and the amount of the contribution.  Otherwise, as normally done, keep record of the receipt you receive for your donation.

Please note that if you claim a Haiti relief deduction on your 2009 return, you may not claim it on your 2010 return.  You should compare the tax benefit of a 2009 deduction or a 2010 deduction. For 2009, higher-income taxpayers have a limit on their total itemized deductions. This limit is eliminated for 2010, so the deduction may actually provide a bigger tax break if taken on your 2010 tax return.

If you need additional information or filing assistance, please contact our office.  Our hearts & prayers go out to the victims of the earthquake and their families.