Congress working on tax deduction for Haiti donors

[Judi Lynn]

Source: Miami Herald

Posted on Thursday, 01.21.10
Congress working on tax deduction for Haiti donors
The U.S. House passed a bill to allow charitable contributions made for Haiti before March 1 to be deductible on 2009 tax returns.

By NIRVI SHAH
[e-mail]
Taxpayers may be able to write off cash donations made to relief efforts in Haiti on their 2009 income tax returns.

The U.S. House unanimously passed a bill Wednesday that would make donations made after Jan. 11 and before March 1 deductible for 2009.

The goal is to encourage donations beyond the $275 million already given, according to estimates by The Chronicle of Philanthropy.

The Senate is expected to pass the bill as well. Without a change, donations made this year couldn't be deducted from income taxes until taxpayers file 2010 returns. In 2005, a similar law was created to encourage donations to victims of a tsunami in the Indian Ocean that happened at the end of 2004.

Contributions to U.S.-based, tax-exempt charities that provide assistance to foreign countries can be counted as tax-deductible contributions on federal income tax returns. Donations to foreign organizations generally are not deductible.


Read more: http://www.miamiherald.com/business/story/1436916.html

[dipsydoodle]

1. Works differently in the UK

The charities can reclaim the tax which had already been paid by the donors direct from the government. That substantially increases the aggregate funds which the charities receive. Been like that for as long as I can remember.

[M155Y_A1CH]

2. Charity is already tax deductable

This is to allow 2010 charity to be claimed in 2009. Too bad I already filed my 2009.

[RantinRavin]

5. File an amended return

Pretty simple to do, and a refund.

[M155Y_A1CH]

6. It can wait till next year

It will still be a 2010 deduction.
I've already stowed all that stuff away for the year. I'll have my refund in a couple days so it can just wait.

[M155Y_A1CH]

3. While on the subject of tax returns

Make sure to fill out the new schedule M (making work pay credit) Almost everyone can benefit with this one.
Also new, the schedule L, often referred to as schedule A-lite. Even if you elect to use the standard deduction, you can still claim up to $500 real estate taxes in addition to the standard deduction with this form.

[brendan120678]

4. Are there going to be any controls in place to be sure...

people don't claim the contribution twice (this year and next)?

I really don't get what the point of this is. The donations will still be just as tax-deductible next year. Why the rush to do it this year?

[Posteritatis]

7. They probably want the donations to happen sooner rather than later. (nt)