New Bill Signed by President Obama Allows Taxpayers to Claim Haiti-Related Contributions on 2009 Tax Return

/PRNewswire/ -- 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."

More information about charitable contributions can be found on the Jackson Hewitt web site at www.jacksonhewitt.com. To find a nearby office or speak with a local tax preparer, call 1-800-234-1040.

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What You Need To Know About Dependents And Exemptions

(SPM Wire) It's that time of year again, when having dependents is a good thing for your wallet.

Before you claim all those dependents on your tax return, however, you need to make sure you're doing so correctly.

Here are some of the top things you'll need to know, from the experts at the IRS:

Dependents may be required to file their own tax return. Even though you are a dependent on someone else's tax return, you may still have to file your own tax return. Whether or not you must file a return depends on several factors, including: the amount of your unearned, earned or gross income, your marital status, any special taxes you owe and any advance Earned Income Credit payments you received.

Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,500 on your 2008 tax return. Exemptions amounts are reduced for taxpayers whose adjusted gross income is above certain levels, which is determined by your filing status.

Dependents may not claim an exemption. If you claim someone as a dependent, such as your child, that dependent may not claim a personal exemption on their own tax return.

Your spouse is never considered your dependent. On a joint return, you may claim one exemption for yourself and one for your spouse. If you're filing a separate return, you may claim the exemption for your spouse only if he or she had no gross income, are not filing a joint return and were not the dependent of another taxpayer.

Some people cannot be claimed as your dependent. Generally, you may not claim a married person as a dependent if he or she files a joint return with their spouse. Also, to claim someone as a dependent, that person must be a U.S. citizen, U.S. resident alien, U.S. national or resident of Canada or Mexico for some part of the year. There is an exception to this rule for certain adopted children.

For more information on dependents and exemptions, including whether or not you or your dependent needs to file a tax return, read IRS Publication 501, entitled "Exemptions, Standard Deduction, and Filing Information" and available online at www.IRS.gov.

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