PARSIPPANY, N.J., Jan. 24 /PRNewswire-FirstCall/ -- Taxpayers wishing to lend their support to relief efforts in Haiti now have an additional incentive to do so, thanks to new legislation signed into law by President Obama.
Through the new bill, H.R. 4462, taxpayers have two options regarding monetary contributions for Haitian Earthquake Relief. They can either deduct contributions made after January 11, 2010 and before March 1, 2010 on their 2009 return or can wait and claim the deduction on their 2010 return. In addition to allowing the contributions to be deducted on a 2009 tax return, the bill also includes a provision that recognizes donations made to a charitable organization via text message, provided that a copy of the phone bill showing the date, time, organization name, and donation amount is available.
"The nation of Haiti is suffering a devastating humanitarian crisis, and millions of Americans have already been moved to donate money to charities that are taking part in relief efforts," said Mark Steber, Chief Tax Officer, Jackson Hewitt Tax Service Inc. "Having the President specifically designate that Haiti-related monetary contributions may be acknowledged on a 2009 tax return, even though the calendar year has passed, is a powerful way to encourage this kind of giving – while also reminding taxpayers of the financial benefits of charitable contributions."
Here are some tips from Jackson Hewitt on how to make and record charitable donations and claim them on a 2009 tax return:
- There are several ways to make a tax-deductible contribution to a qualified charitable organization: through a cash payment, a check, a credit card charge or by making a payroll deduction to a charity. The Internal Revenue Service allows taxpayers to search for a qualified organization on its Web site at http://www.irs.gov/app/pub-78/
- Keep records of your donations. Acceptable records include a receipt from the organization that states the date, name, address, location, and amount of the donation; a cancelled check; or other bank documents that provide the same information.
- Don't forget to claim all the household items and clothing you donated to your church, school, or other local charity during the year. The fair-market value of all items in good or better condition that are donated to a qualified organization are deductible. Make sure you keep a list of all items donated and their value when you contributed them.
- If you volunteer, you can also deduct out-of-pocket expenses you have that are directly related to your volunteer work.
- Out-of-pocket expenses include mileage related to charitable work (at present, 14 cents per mile), the cost of uniforms required while doing the volunteer work (such as for scout leaders, EMTs, firefighters, etc), and any supplies needed to do this work. Remember to keep your receipts with the date and the organization's name for your records.
- If you are claiming mileage, make sure you have a record of the miles driven, the date, and the organization's name. You should also indicate starting point and destination.
"Charitable contributions claimed on a 2009 tax return must have been contributed in the 2009 tax year," notes Steber. "The new Haiti legislation is an exception."
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. (NYSE: JTX), with more than 6,000 franchised and company-owned offices throughout the United States, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated. Jackson Hewitt is based in Parsippany, New Jersey. More information may be obtained at www.jacksonhewitt.com. To locate the Jackson Hewitt Tax Service® office nearest to you, call 1-800-234-1040.
SOURCE Jackson Hewitt Tax Service Inc.