tsunami relief donation tax deduction

tsunami relief donation tax deduction

Congress working on tax deductions for donors in Haiti

Shah Nirve
nshah@MiamiHerald.com

Taxpayers may be able to write their cash donations to relief efforts in Haiti in 2009 income tax returns.The U.S. House approved unanimously on Wednesday a bill that would make the donations made after January 11 and a deductible before March 2009.

The objective is encourage donations beyond the $ 275,000,000 already given, according to estimates by The Chronicle of Philanthropy.

The Senate should adopt the bill. Without changes, donations made this year could not be deducted from income taxes until 2010 to file returns for taxpayers. In 2005 a similar law was created to encourage donations to tsunami victims in the ocean Indian held in late 2004.

Contributions to the United States, the tax-exempt organizations that provide charitable assistance to the foreign countries may be considered as deductible contributions the federal income tax return. Gifts to foreign organizations are generally not deductible.

Only taxpayers who itemize deductions on Form 1040, Schedule A, you can claim deductions for charities. Whatever the amount of a donation, taxpayers must register bank or a written communication from the charity indicating the date and amount of your donation.

With millions raised for charities through text messages, the House bill specifies that taxpayers could use a phone bill, a receipt. Some donations text can be verified with receipts www.mgive.org / reception.

Other proposals for contributions to Haiti includes the possibility of an exemption to the amount of income taxpayer may deduct in one year - if cash donations are specifically designated for relief in Haiti. The current limit is 50 percent. A company can donate up to 10 percent.

Another proposal is to allow companies to donate food to the relief effort to deduct the market value of the gift, instead of cost of food production.

This fee break expired at the end of 2009.

http://versatiletax.com/tax_preparation.php

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Haiti donations and tax deductions?

A friend reminded me today that following the tsunami of Boxing Day 2004, Congress passed a law allowing donations to be deductible for both the 2004 and 2005 fiscal years. Has there been a similar law passed this year for the relief of Haiti? Links are appreciated. Thanks, I'm in the U.S.. Boxing Day is everywhere, just not really held in the U.S..

Yes, donations to aid the earthquake Haiti made after January 11, 2010 and before March 1, 2010 are deductible in both 2009 and 2010 (but not twice, mind.) If you choose to deduct in 2009 his return, treatment of donations has been made on December 31, 2009. Of course, should be detailed, the recipient must be a qualifying organization, blah, blah, blah.

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tsunami relief donation tax deduction

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