E-File Magic 1099 Software – Blog

My heart goes out to all the victims and their families involved with the Earthquake that occurred in Haiti earlier this week. The television and internet are flooded with organizations committed to providing support for those in need. Your donations may be tax deductible – however you need to be sure the organization you are giving money to is in fact a qualified charity. This is what the IRS webpage says about your charitable donations:

Contributions to domestic, tax-exempt, charitable organizations that provide assistance to individuals in foreign lands qualify as tax-deductible contributions for federal income tax purposes, provided that the U.S. organization has full control and discretion over the uses of such funds. Contributions to foreign organizations generally are not deductible. Contributions to benefit specific individuals or families are also not deductible.

Contributions are deductible in the year made. To deduct any charitable donation of money, regardless of amount, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. For individuals, only taxpayers who itemize their deductions on Form 1040 Schedule A can claim deductions for charitable contributions.

IRS Publication 526, Charitable Contributions, provides information on making contributions to charities. Pub. 3833, Disaster Relief: Providing Assistance through Charitable Organizations, explains how the public can use charitable organizations to help victims of disasters

Donors should ensure that their contributions go to qualified charities. Taxpayers who have a specific charity in mind can make sure it’s a qualified charity by doing a search on IRS.gov. Some organizations, such as churches or governments, may be qualified even though they are not listed on IRS.gov.

E-File Magic’s Print and Mail Order Deadline for Tax Year 2009 is January 18, 2010. Download the Free 1099 Software now to get started!