By: D. Laird Blue
On January 22, 2010 President Obama signed into law a bill allowing taxpayers to claim a charitable deduction on their 2009 income tax return for cash donations made between January 11, 2010 and March 1, 2010 for the relief of victims of the January 12, 2010 earthquake in Haiti. The taxpayer has the option of taking the deduction in 2009 or in 2010. This new law is modeled on the law passed to aid victims of the 2004 Indian Ocean Tsunami.
As with all charitable contributions, to be deductible the contribution must meet the requirements of Section 170 of the internal Revenue Code. The contribution must be in cash to qualify, the law states that cash includes contributions by check, credit card, debit card or cellular phone text messages. Most importantly, the contribution must be to a qualified charity and be earmarked for Haitian earthquake relief. Many qualified charitable organizations allow the taxpayer to make donations specifically for the relief of victims of the Haiti earthquake. You can find more information about the deduction at the IRS website.
Always consult your tax adviser if you have questions, including about whether the charitable organization is a qualified charitable organization and whether your deduction can be taken on your 2009 tax return.
The Law of Business 