Congress approves 2009 deductions for 2010 Haiti earthquake donations

Congress has passed, and the president has signed, legislation allowing taxpayers to claim a deduction on their 2009 federal tax return for qualified Haiti disaster relief contributions made after January 11, 2010 and before March 1, 2010.

The bill gives taxpayers the option of claiming a deduction on their 2009 or 2010 tax returns for 2010 donations to a domestic U.S. charitable organization assisting Haiti. Taxpayers entitled to the deduction include both individuals and corporations.

However, taxpayers must itemize their deductions in order to take advantage of the early deduction. Additionally, the donation must be monetary. Taxpayers may not claim a 2009 tax deduction for 2010 contributions of marketable securities or other property that is easily convertible into cash. While donations by check or credit qualify, donations of food are not currently eligible. However, at least one Congressional proposal has promised to change this. We will keep you posted.