Tax Law Blog
January 26, 2010 / 2009 Deductions Allowed for Haiti Earthquake Donations Made Before March 1, 2010
On January 22, 2010, President Obama signed into law H.R. 4462, which allows taxpayers to claim charitable deductions on their 2009 tax return for contributions made for Haitian earthquake relief, even if the donations were made after January 1, 2010 (although no later than March 1, 2010). However, this special charitable deduction is available only if the contribution is in cash and otherwise meets the requirements for charitable contribution deductions under Internal Revenue Code Section 170 .
The IRS advises that the general rules on claiming a tax deductions for charitable donations still apply, including itemizing deductions on Schedule A and maintaining Haiti earthquake relief contribution records for which 2009 deductions are taken. However, recordkeeping for donations pertaining to the Haiti earthquake relief effort may been unique in some cases, as many wireless telephone carriers offered text-based donations. Presumably, a donor's telephone bill will be required to satisfy Internal Revenue Code Section 170(f)(17) recordkeeping requirements. The bill should evidence the name of the donee organization, the date of the contribution and the amount of the contribution.
Finally, this election is not limited to only individuals. Corporations and other entities also can choose to deduct otherwise deductible earthquake relief contributions as though they were made on December 31, 2009.