In light of the recent earthquake disaster in Haiti, the U.S government passed legislation that allows taxpayers to deduct contributions, according to
FiLife.
These deductions can be done on 2009 tax return or on 2010’s but not both.
In order to be eligible, contributions must have been made specifically for Haiti relief, after Jan. 11, 2010 and before March 1, 2010 and the money donated must go to legitimate charities.
Although the new law applies mostly to cash contributions, donations via text messaging, check, credit card or debit card may be claimed on your federal tax return.
Donations made to foreign organizations are not tax deductible. If you donated via text, the donation and the organization name should show up on your phone bill as proof of your donation. For donations using check, make sure you keep records of the donation.
To find out more about which organizations aiding Haiti, you can check out the
U.S. Agency for International Development. You can also check out
BBB's Wise Giving Alliance page for more details about which charity to give to and your
local government charity website.
Read the full article at
FiLife by clicking
here.