Unusual damage calls for unusual help! IF you itemize your 2009 individual taxes AND you contribute money to Haiti Relief between January 12 and February 28, 2010, you can deduct it in 2009 or 2010!
This creates an opportunity to receive the benefit of a deduction BEFORE you actually make the deduction!
What do I mean? As an example, say you:
- Are in the 28% federal tax bracket and you want to give $1,000 to help the Haiti Earthquake victims.
- Complete your taxes (using Kwik-E-Tax, of course. Click the button at the top right of the page to start for FREE). Include a $1,000 deduction for Haiti Relief as a charitable contribution on your taxes. Your refund is $280 larger ($1,000 X 28%).
- File ASAP but no later than Feb. 17th.
- File your taxes by January 27. You should get your refund direct deposited to your bank account on Feb. 5!
- That would give you a $280 interest free loan from the federal government that you would have to repay with your $1,000 Haiti Relief charitable contribution 23 days later on 2/28!
BUT…and here’s the fine print, you had better get your $1,000 contribution in to a charitable organization that is providing relief to the Haitian people affected by the earthquake by the Feb. 28th deadline. Miss it, and you are no longer entitled to keep that $280 tax savings.
If you gamble away the $280 at a casino hoping to win $1,000 (or more), tough. Amend your return and pay it back by 4/15/10 or you are committing tax fraud and may be required to run for public office or worse.
Now here’s information about where you can contribute to help the victims of the earthquake in Haiti without getting scammed. http://lifehacker.com/5447987/how-and-where-to-donate-to-haiti-and-avoid-scams
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