Charitable Contributions to Haiti Relief

Legislation has been passed allowing itemizing taxpayers to deduct charitable contributions made by March 1st, 2010 to Haiti earthquake relief, on their 2009 returns. The bill also allows use of a taxpayer's phone bill as documentation for text-messaged contributions.

Charitable Contributions to Haiti Relief

When giving to Haiti Relief, remember that, in order to take your donation as an itemized deduction on your tax return,

• it must be made to a U.S.-based tax-exempt charity providing aid to Haiti.

• Donations to foreign organizations are generally not deductible.

Over 60% of taxpayers use a tax professional. Choose a good one!

Preparer licensing starts next year. In the meantime, the IRS wants you to ask the following:

1. Is your preparer taking continuing education courses?
2. Does your preparer subscribe to a Code of Ethics?
3. Does your preparer have a negative history with a state board, or a criminal history?
4. Does your preparer base his fees on a percentage of the refund?
5. Does your preparer claim he can obtain larger refunds than other preparers?
6. Is your preparer in business year round?

A good preparer

• takes continuing education courses
• subscribes to a Code of Ethics
• has no history of complaints with a state board or the BBB, and has no criminal history
• bases fees upon the complexity of the return
• makes no exaggerated claims about getting larger refunds
• is in business year round and available when you get a letter from the IRS or the state.
  

A good preparer wants to see records and receipts, and will question you carefully.

Never sign a blank return, or a blank e-file authorization.

Review your return before signing it. You are responsible for its content.

A paid preparer is required by law to sign tax returns. If he doesn’t, ask why. Is he trying to avoid declaring the income on his tax returns? You’re paying taxes, why shouldn’t he? A good preparer is never afraid to sign a properly prepared return. An ethical preparer will declare all his income on his own tax return.

Misconceptions about filing status

Your marital status on the last day of the year determines your marital status for the entire year.

If you marry on the last day of the year, you are considered married for the entire year. Your filing choices are married filing jointly or married filing separately. If your divorce is final on the last day of the year, you are considered single, or head of household if you pay more than half the cost of maintaining a home for yourself and a qualifying person.

If your spouse died during the year, and you didn’t remarry, you are considered married and can still file jointly with your late spouse for the year of death.

If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.

Tax questions? Call Ameritax at (508) 993-4343, or any of our offices.