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.




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.
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