The Internal Revenue Service has stated that the earthquake in Haiti qualifies as a disaster for federal tax purposes. That means that people and organizations who receive donations that qualify as disaster relief payments may exclude those payments from income on their tax returns.

In response to the generous donations made by many Americans to the Haitian disaster, President Obama signed a bill into law that allows taxpayers to receive the tax benefit from their donations to the Haitian relief effort in tax year 2009, rather than having to wait until tax year 2010. Under the new law, cash donations to the Haitian relief effort given after January 11, 2010, and before March 1, 2010, may be treated as if the contribution was made in tax year 2009. This means that the contribution may be deducted from 2009 income.

The law applies to cash donations, not goods or services. And only people who file itemized returns may benefit from the law. People who file simple returns may not take advantage of the new law. Charitable contributions must be deducted on Schedule A of IRS Form 1040.

The new tax law also gives examples of the types of records and supporting documents that a taxpayer may show in order to take advantage of the new tax benefit for charitable donations. For example, a telephone bill will also satisfy the recordkeeping requirement if it shows the name of the organization that received the donation and the date and amount of the donation. In the case of a charitable contribution made by text message, a bill from a telephone or wireless company may be used to prove the donation.

Please read Claiming the Charitable Contribution Deduction for more information about charitable contributions and tax deductions.

This information last reviewed 2/2/10.