Deducting your charitable contributions

By Gerri Willis, personal finance editor


NEW YORK (CNN) -- 1. Deduct your contributions now

The Senate just passed a new bill that will let you deduct the donations you sent to Haiti relief efforts in THIS tax season. President Obama is expected to sign this into law as soon as next week. A similar measure passed after the Tsunami in 2005.

home_rich_cover.03.jpg
For more information on managing your largest investment, check out Gerri Willis' 'Home Rich,' now in bookstores.
CDs & Money Market
MMA 0.40%
$10K MMA 0.36%
6 month CD 0.39%
1 yr CD 0.70%
5 yr CD 1.50%

Find personalized rates:
 

Rates provided by Bankrate.com.

There are rules though. For example, you must have contributed to the Haitian crisis from January 11 to March 1st. A lot of folks donated to organizations via text messaging. This bill also allows taxpayers to substantiate deductions made by cell phone with a phone bill that shows the date, amount and name of the organization receiving the contribution.

2. Future tax benefits

After Hurricane Katrina, there were a number of tax benefits. And some of those benefits could be reinstated. For example, in this tax year, it may be easier for individuals and corporations to deduct the value of food donations. The IRS typically has strict rules about deducting food donations.

Of course, it's important to know just what you CAN'T deduct too. Aid to an individual, a foreign government or donations to overseas charities with no presence in the U.S. does not qualify for a deduction.

Make sure you collect receipts from all the charities you donate to. For a list of charities helping out in Haiti, go to CNN.com/impact.

-- CNN's Jen Haley contributed to this article. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.01%4.03%
15 yr fixed3.12%2.97%
5/1 ARM3.11%2.99%
30 yr refi4.04%4.09%
15 yr refi3.15%3.05%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,804.80 26.65 0.15%
Nasdaq 4,765.38 16.98 0.36%
S&P 500 2,070.65 9.42 0.46%
Treasuries 2.18 -0.03 -1.27%
Data as of 3:58pm ET
Company Price Change % Change
Bank of America Corp... 17.62 0.09 0.51%
Apple Inc 111.78 -0.87 -0.77%
General Electric Co 25.62 0.48 1.91%
Intel Corp 36.37 -0.65 -1.76%
Microsoft Corp 47.66 0.14 0.29%
Data as of Dec 19

Sections

New York Magazine reporter Jessica Pressler, who has been caught up in controversy this past week, will not be moving on to a new job at Bloomberg News. More

Investors beware: These 5 global crises are likely to rattle the stock market and world economy. More

Forums in dark corners of the web sell the kinds of hacks that befell Sony. More

Unilever sued Hampton Creek over its egg-free mayonnaise spread Just Mayo. But the company behind Best Foods and Hellman's mayonnaise has now dropped the lawsuit. More

The income of the top 1% jumped significantly in 2012, far outpacing inflation. Not only did this group make a larger share of the country's income, their share of total taxes also jumped from 35% to 38%. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.