Tab 2
Page 2-24:
Gifts by Cash or Check
Taxpayers who itemize their deductions and who make charitable donations after January 11, 2010, and before March 1, 2010, for the relief of victims of the earthquake in Haiti that occurred on January 12, 2010, may choose to deduct those donations as if they were made on December 31, 2009. P.L. 111-126 was enacted on January 22, 2010, and permits taxpayers to choose to deduct such contributions on either their 2009 or 2010 returns (but not both). This provision applies only to cash (as opposed to property) contributions made to qualified charities. Contributions to foreign organizations generally are not deductible. Cash contributions include contributions made by text message, check, credit card or debit card. Contributions must be specifically designated for the relief of victims in areas affected by the Haiti earthquake.
Taxpayers must keep a record of any deductible donations they make. For donations by text message, a telephone bill will meet the recordkeeping requirement if it shows (1) the name of the donee organization, (2) the date of the contribution and (3) the amount of the contribution (IRS News Release IR-2010-12, 1-25-10).
Planning Tip. For tax years beginning after 2009, the limitation on itemized deductions for higher income individuals is repealed (see page 2-36). For the 2009 tax year, the limitation is reduced by two-thirds. Consequently, some individuals may find it more beneficial to claim their contributions to Haiti earthquake relief when they file their 2010 returns in 2011 than claiming the contribution as a deduction on their 2009 returns.
Tab 9
Page 9-11:
Annual Retirement Contribution Limits for Individuals
| |
2009 |
2010 |
| IRA contributions |
5000 |
$5,000* |
| Catch-up IRA contributions |
1000 |
1,000* |
| Total standard deferrals to 401(k), 403(b), and 501(c)(18) plans, SIMPLEs and SEPs |
16,500/11,500 |
16,500/11,500* |
| Standard deferrals to SIMPLEs |
11500 |
11,500* |
| Catch-up deferrals to SIMPLE accounts |
2500 |
2,500* |
| Catch-up deferrals to 401(k), 403(b) and 457 plans |
5500 |
5,500* |
