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Haiti tax breaks and texts


There’s a cool provision in the bill the House passed yesterday to make it easier to donate to charities that are helping Haiti.

If you gave by text message over your cell phone, the government will accept your bill as proof of the donation.

Ordinarily, the record has to be a paper check or a statement from the charity.

So text messages get into tax law. The House bill now moves to the Senate where it is expected to be taken up quickly.

If this law passes, it will speed up the tax break donors can get for making contributions to benefit Haiti. Instead of waiting until next year to take the write off on their 2010 tax return, donors can take the deductions now, on their 2009 taxes, which are due in April.

Under its provisions, donations must be made between Jan. 12 and the end of February. They have to be in cash or by check, credit card or text message.

Remember this: If you intend to take a tax deduction to a charity involved in Haiti relief, it must be a U.S.-based charity. Contributions to foreign-based groups don’t qualify. And you must take itemized deductions on your tax return in order to benefit.

Unfortunately, “Contributions to benefit specific individuals or families are not deductible,” according to a briefing from CCH, a Wolters Kluwer business that is a provider of tax and audit information.

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You've got the job of managing your money. No one in school taught you how. But you and I, we can teach each other, how to handle it, how to save for retirement, how to make money last, how to educate the kids, how to make a budget work. The conversations I have with my readers are fun. Money's important, but discussing it does not have to be boring.

Harriet Johnson Brackey Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.

Brackey has worked at Business Week magazine and at USA TODAY, where she was a founder and part of the original staff of the Money section at the country's first national newspaper. After nearly 11 years there - spent covering the 1980s bull market, the insider trading scandals, the 1987 crash - Brackey left Washington, D.C., and came to The Miami Herald. She spent the next decade writing a column about personal finance that chronicled the stock market's Internet boom and bust, as well as the popular Money Makeover features.

Brackey also has done commentaries for Marketplace Money, which airs on National Public Radio and The Nightly Business Report which is broadcast on more than 250 PBS television stations nationwide. She also has been a radio guest on WLRN’s Miami Herald News.
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