Give to Haiti through Feb. 28, get a 2009 tax break
WASHINGTON (AP) – Taxpayers will be able to write off charitable donations to Haiti earthquake relief efforts when they file their 2009 taxes this year under a bill President Barack Obama signed Friday.
The measure sped through Congress, receiving final approval Thursday.
Under current law, donors would have to wait until they file their 2010 returns next year to take the deductions. The bill allows cash donations to charities for the Haitian relief effort given from Jan. 12 to Feb. 28 (described as "before March 1" in some reports) of 2010 to be treated as if the contribution were made on Dec. 31 of last year. That way, the contribution can be deducted from 2009 income.
This measure applies to monetary donations, not goods or services.
Obama has enlisted two former presidents – George W. Bush and Bill Clinton – to help raise money for quake victims. The duo formed the "Clinton Bush Haiti Fund," which joins with other tax-deductible Haitian Relief efforts.
A similar law was enacted in 2005 for donations to victims of the Indian Ocean tsunami in December 2004.
The White House announced this week that the president and first lady Michelle Obama donated $15,000 from their personal bank account to the Haiti relief effort.
Meanwhile, the tax break applies to the nearly $60 million raised for the ABC-telecast "Hope for Haiti Now" telethon Friday evening. Such singers as Beyonce, Madonna and Bruce Springsteen performed, with people able to buy the downloads for 99 cents at iTunes. Because a product of value is received, iTunes purchases are not included in the tax write-off option.
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