If you donated to Haitian relief efforts but have not yet filed your 2009 taxes, the IRS wants to remind taxpayers that they can deduct their contributions on their 2009 return – but only for donations made by midnight Sunday, February 28.
Individuals and corporation who made donations to qualifying charities by cash, text message, check, credit card or debit card qualify for this special option, and can claim the contributions on either the 2009 or 2010 tax return – but contributions made after that date but before the end of the year can only be claimed on a 2010 return.
Contributions made to domestic not-for-profit organizations would qualify for federal income tax deduction so long as the American charity has control and complete discretion in the use of these funds. Contributions to foreign charities generally are not deductible.
Donations charged to a credit card before the end of February count for 2009. This is true even if the credit card bill isn’t paid until after February 28. Also, checks count for 2009 as long as they are mailed by the end of this month and clear your financial institution shortly thereafter.
Only cash contributions – as opposed to property or goods – made to these charities after January 11, 2010 and before midnight February 28 are eligible. Contributions made to individuals are not deductible.
Federal law requires that taxpayers keep a record of any deductible donations they make. 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 includes contributions made by text message, credit card or debit card.
Individuals and not-for-profit organizations should check the list of qualifying charities – some organizations, such as churches of governments might qualify – and qualifying relief payments on www.IRS.gov.
