Under recently enacted legislation, you may be able to deduct charitable contributions for Haiti earthquake relief made early in 2010 from your 2009 taxes. To qualify for a 2009 deduction, you must have made the donations after January 11, 2010, and on or before February 28, 2010. Normally, those contributions would be deductible only on your 2010 tax return, to be filed in 2011. Here's what you should know about this new legislation:

To qualify for the accelerated deduction treatment, the contribution must have been made in cash or by check, credit or debit card, or text message. Donations of property don't qualify. The contribution must have been specifically for the relief of victims in areas affected by the January 12 Haitian earthquake.

The contribution must have gone to a qualified domestic charity. Contributions to foreign organizations generally aren't deductible. To see whether an organization qualifies, visit IRS's website (IRS.gov) and look under "Search for Charities." However, some qualified charities aren't listed on the site.

To claim the benefit, you must itemize your deductions. Taxpayers who claim the standard deduction aren't eligible.

The accelerated treatment is optional. Most taxpayers will prefer to deduct the contribution in 2009, to receive the tax benefit as soon as possible. Other taxpayers, because of their anticipated income and deductions for 2010, would benefit from keeping the deduction on the 2010 return. If you think you might fall into the latter camp, I would be happy to run the numbers for you.

If you have already filed your 2009 return, that's not a problem. You can still take advantage of the 2009 deduction by filing an amended return (on Form 1040-X), or if you prefer you can simply wait until next year to claim your deduction.

As always, remember to keep your receipts. For cash contributions of less than $250, a bank record or written communication from the charity will suffice. It should include the charity's name, along with the date and amount of the contribution. Text-messaging donations can be validated by providing a telephone bill that shows the name of the organization and the date and amount of the donation. If the contribution was $250 or more, you'll need to get a written acknowledgment from the charity that includes certain information about the donation.

I hope this information is helpful. If you would like more details about this or any aspect of your charitable contributions, please do not hesitate to call.

Very truly yours,
Paresky Flitt & Company, LLP

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