Haitian Relief Contributions Made Before March 1, 2010 Can Be Deducted in Either 2009 or 2010
Written by Doug Beecher, MBA, CPA
President Obama signed Public Law 111-126 on January 22, 2010 allowing individuals who make cash charitable contributions for relief of Haitian earthquake victims to choose to claim a tax deduction in either 2009 or 2010, giving donors the opportunity to choose which year will give them a bigger tax savings.
In addition, the normal rules requiring documentation for charitable contributions have been relaxed. Donations can be made by check, credit or debit card, or even by text message. A cancelled check, credit card statement, or telephone bill will satisfy the IRS recordkeeping requirements for Haitian earthquake relief contributions if it shows the name of the donee organization, the date, and the amount of the contribution.
Increasing Your Tax Deductions for Medical Expenses
Written by Doug Beecher, MBA, CPA
Only a few people get to take the traditional medical deduction on their tax returns. First it requires itemizing deductions. Next, you have to subtract 7.5% of your income from your out-of-pocket medical expenses. If there is anything left when you are done subtracting, you get a tax deduction for only the difference. For example, if you itemize deductions and have $3,500 in medical expenses and $40,000 of income, your medical expense deduction will be $500. This is because 7.5% of $40,000 is $3,000, which leaves $500 when subtracted from your total medical expenses of $3,500.
There are several opportunities to claim car or truck expense as a deduction on your income tax return. Most people are familiar with the standard mileage rates, which for the 2009 tax year were 55 cents per mile for business, 24 cents for medical or moving purposes, and 14 cents per mile for charitable purposes. In many cases, you may be able to claim a bigger car write-off than just what the standard mileage rates provide.
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President Obama signed Public Law 111-126 on January 22, 2010 allowing individuals who make cash charitable contributions for relief of Haitian earthquake victims to choose to claim a tax deduction in either 2009 or 2010, giving donors the opportunity to choose which year will give them a bigger tax savings.
