January 31 , 2010 - I plan to make a donation to help the victims from the recent earthquake in Haiti. What do I need to claim a deduction on my tax return?

In addition to itemizing your deductions on Schedule A, there are recordkeeping rules discussed below. However, you should also be aware of a new opportunity to deduct your contribution on your 2009 tax return.

On Jan. 22, President Obama signed into law H.R. 4462, which allows taxpayers to claim a charitable contribution deduction in tax year 2009 for donations made through Mar. 1, 2010, for the relief of victims in areas affected by the Jan. 12, 2010 earthquake in Haiti. This option is available only if the contribution is in cash and otherwise meets the requirements for charitable contribution deductions.

Anyone who is contemplating making a contribution to help victims of the earthquake in Haiti should consider doing so before Mar. 1, 2010. If the taxpayer is an individual who itemizes, he will then be in a position to deduct the contribution in either 2009 or 2010, whichever produces the greater tax savings.

A charitable deduction is generally only available for the tax year in which the contribution is made. Thus, for a calendar year taxpayer, the tax benefit of a charitable contribution made in January or February often isn't realized until the following calendar year when the tax return is filed. The Act allows taxpayers to treat charitable contributions of cash made after Jan. 11, 2010, and before Mar. 1, 2010 as contributions made on Dec. 31, 2009, if the contributions were for the purpose of providing relief to victims in areas affected by the earthquake in Haiti.

The new law advises that the general rules on claiming tax deductions for charitable donations still apply: taxpayers must itemize their deductions on Schedule A. Those claiming the standard deduction, including all short-form filers, aren't eligible. IRS also emphasizes that taxpayers can choose to deduct qualifying Haiti earthquake relief donations on either 2009 or 2010 returns, but the same item can't be claimed for both years.

A check mailed by Mar. 1, 2010 will qualify for the 2009 deduction even though the charity doesn't cash it until after that date.

The Act clarifies that for a cash contribution the recordkeeping requirement can be satisfied by a telephone bill if it shows the name of the donee organization, the date of the contribution, and the amount of the contribution. Thus, for example, in the case of a charitable contribution made by text message and chargeable to a telephone or wireless account, a bill from the telecommunications company containing the relevant information will satisfy the recordkeeping requirement. For cash contributions made by other means, taxpayers should keep a bank record, such as a cancelled check, or a receipt from the charity showing the name of the charity and the date and amount of the contribution.

IRS does, however, advise taxpayers to be sure their contributions go to qualified charities. It notes that most organizations eligible to receive tax-deductible donations are listed in a searchable, online database available under "Search for Charities" ( http://www.irs.gov/charities/article/0,,id=96136,00.html ). But some organizations, such as churches or governments, may be qualified even though they're not listed on IRS's website. Also, the IRS website reminds donors that contributions to foreign organizations generally aren't deductible.

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