If you are donating to charities providing earthquake relief in Haiti, you may be able to claim those donations on your 2009 tax return. Here are 10 important facts the Internal Revenue Service wants you to know about this special provision.
- A new law allows you to claim donations for Haitian relief on your 2009 tax return, which you will be filing this year.
- The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti.
- To be eligible for a deduction on the 2009 tax return, donations must be made after Jan. 11, 2010 and before March 1, 2010.
- In order to be deductible, contributions must be made to qualified charities and can not be designated for the benefit of specific individuals or families.
- The new law applies only to cash contributions.
- Cash contributions made by text message, check, credit card or debit card may be claimed on your federal tax return.
- You must itemize your deductions in order to claim these donations on your tax return.
- You have the option of deducting these contributions on either your 2009 or 2010 tax return, but not both.
- Contributions made to foreign organizations generally are not deductible. You can find out more about organizations helping Haitian earthquake victims from agencies such as the U.S. Agency for International Development ( www.usaid.gov).
- Federal law requires that you keep a record of any deductible donations you make. For donations by text message, a telephone bill will meet the record-keeping requirement if it shows the name of the organization receiving your donation, the date of the contribution, and the amount given. For cash contributions made by other means, be sure to keep a bank record, such as a cancelled check or a receipt from the charity. Receipts should show the name of the charity, the date and amount of the contribution.
For more information see IRS Publication 526, Charitable Contributions and Publication 3833 , Disaster Relief: Providing Assistance through Charitable Organizations. To determine if an organization is a qualified charity visit IRS.gov, keyword “Search for Charities”. Note that some organizations, such as churches or governments, may be qualified even though they are not listed on IRS.gov.
So it got lost in my inbox (oops!) but here is another tip from my good friend Simone…
OK, so I just posted this on a friend’s FB (because there was a post strain about labels on appliances and cars) and no one else seemed to know it. Did you know that on your car’s gas gauge, there is a little arrow pointing to either the left or the right? And that little arrow tells you on which side your gas tank is. So the next time you are driving a rental car in Colorado and pull into a gas station, only realize when you get out that you have to move your car because the tank is on the opposite side and you haven’t parked close enough to pull the nozzle around, you can avoid all that by just looking at your gauge. Not that I’ve ever done that. *Ahem.* Or, if you just forget. Or drive your husband’s car. You get the picture.
Got Kids? They may have an impact on your tax situation. Listed below are the top 10 things the IRS wants you to consider if you have children.
- Dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.
- Child Tax Credit You may be able to take this credit on your tax return for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. The Additional Child Tax Credit is a refundable credit and may give you a refund even if you do not owe any tax. For more information see IRS Publication 972, Child Tax Credit.
- Child and Dependent Care Credit You may be able to claim the credit if you pay someone to care for your child under age 13 so that you can work or look for work. For more information see IRS Publication 503, Child and Dependent Care Expenses.
- Earned Income Tax Credit The EITC is a benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund. For more information see IRS Publication 596, Earned Income Credit.
- Adoption Credit You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. For more information see the instructions for IRS Form 8839, Qualified Adoption Expenses.
- Children with Earned Income If your child has income earned from working they may be required to file a tax return. For more information see IRS Publication 501.
- Children with Investment Income Under certain circumstances a child’s investment income may be taxed at the parent’s tax rate. For more information see IRS Publication 929, Tax Rules for Children and Dependents.
- Coverdell Education Savings Account This savings account is used to pay qualified educational expenses at an eligible educational institution. Contributions are not deductible, however, qualified distributions generally are tax-free. For more information see IRS Publication 970, Tax Benefits for Education.
- Higher Education Credits Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credit are education credits that reduce your federal income tax dollar-for-dollar, unlike a deduction, which reduces your taxable income. For more information see IRS Publication 970.
- Student Loan Interest You may be able to deduct interest you pay on a qualified student loan. The deduction is claimed as an adjustment to income so you do not need to itemize your deductions. For more information see IRS Publication 970.
The forms and publications on these topics can also be found on IRS.gov or by calling 800-TAX-FORM (800-829-3676).
- January 5, 2010 – 12:50 pm
- Posted in Just Me
So the year has started slower than pouring molasses (and I had my first experience with pouring molasses this holiday season with a new recipe of cookies) – anywho – S-L-O-W. I feel like someone turned the dial on my brain and life is moving faster than I can think. As many of you know, not good! I have a very fast paced life and therefore need to think – FAST. I usually have 17 balls in the air and the past two days I can’t even manage two. UGH! I spent the weekend lolling on the couch watching a CSI/Law and Order marathon and having a “jammie party” with my six year old. The rules of the party were that you needed to stay in your jammies from the time you got up until the time you went to bed – sounds good to me!
All of these things I had planned for the new year – organization, style, flair – nope. I got nothing. Maybe next year?
- January 2, 2010 – 4:45 pm
- Posted in Just Me
Okay, so it doesn’t take any special genius to figure out that I have been slacking on the blogging. I would like to blame it on the holidays but let’s face it, my last post was in October (HOLY CRAP!). I am going to try and make a better effort in 2010.
So 2009 ended on not a great note for me. My long time puddy-tat friend, Mity, took her last breath on December 28th. She lived a nice long 22+ years and held on long enough for the family to say their goodbyes – still sucks!
I finished all of my holiday baking and delivered goodie baskets a bit later this year (due to a full day of baking where everything I touched turning to shit-OY!), received a few requests to cease the tradition due to more than a few pounds gained but I don’t think that is going to happen.
Spent the Eve of Christmas wrapping presents for charity at the local Best Buy with the MOMS Club of Coon Rapids-North (of which I have been a member for almost six years now). The club raised over $1500 to redistribute back into the community in various service projects. It is a fantastic way to kick off the holiday celebrations and I look forward to doing it for many years to come.
I am in the process of “gearing up” for tax season. This year I have decided not to go back to work at the private tax service I have been working with the last two years and instead went back to the “Nationally known” company (which can not be named by name due to a confidentially contract that was signed) where I got my start in taxes with three years ago. I took a $20/hour pay cut but I am hoping the trade off will help me be able to get what I want out of tax season – keeping up my knowledge and helping people realize their maximum possible refund or lowest legal tax liability along with “teaching” them even more ways to achieve those goals (while NOT working 90 hours a week). I met my office leader and fellow staffers last week and it should be an interesting season, it has been a LONG time since I have worked as a “true” employee.
I am also looking at adding an “Ask the Bookkeeper” section to my website where you can ask bookkeeping and tax related questions which will be added to a refence page on my site (yet to be named, any ideas?) with answers. I find that I enjoy sharing my knowledge and also the research involved in finding answers to questions I may not have the immediate answers to – I also find that many people ask me the same questions and it would be nice to be able to send them a link as a reference.
My website will be going over some revamping in the coming year and I haven’t decided if I want a complete overhaul or just some tweaks – I get a few comments on it each year and most are positive so probably just some tweaking.
I keep saying that 2010 is going to be a big year for me so I am looking forward to the challange.
