IMPORTANT: Haiti Earthquake Relief

Taxpayers making charitable cash contributions in early 2010 to help Haiti after the devastating January 12 earthquake can claim a deduction on their 2009 federal tax returns. The House of Representatives unanimously passed H.R. 4462 on January 20 to allow taxpayers to claim a charitable deduction on their 2009 returns for qualified Haiti disaster relief contributions made after January 11, 2010 and before March 1, 2010. The Senate approved the measure on January 21, and President Obama promptly signed it into law on January 22.

The new law makes a special exception to the general rule for cash donations to help Haiti recover from the January 12 earthquake. Taxpayers who make a cash contribution to a qualified charitable organization after January 11, 2010 and before March 1, 2010 may claim the contribution as a deduction on their 2009 or 2010 federal income tax returns. Taxpayers may not deduct the same contributions on both their 2009 and 2010 returns.

The new law gives taxpayers an immediate benefit for their generosity rather than having to wait until they f le their 2010 returns in 2011. Of course, taxpayers can turn down this option and elect not to accelerate their deductions for qualified contributions to charities providing earthquake relief in Haiti. However, the same contribution cannot be deducted on a taxpayer’s 2009 and 2010 returns.