Donations to Haiti Tax Deductible for 2009 Returns

The IRS published new information this week on a law IR-2010-12 that allows donations to qualified U.S. charities for relief in Haiti may be deductible for you on your 2009 tax return.

This means that your donations made after January 11, 2010 and before March 1, 2010 specifically given to organizations providing relief work in Haiti after the earthquake, can be taken as contributions on you 2009 tax return due April 15, 2010 instead of waiting until next year.

Here are some additional items you will need to consider:

• You must itemize your deductions on your 2009 tax return on Schedule A in order
  to take the additional contributions on your return.
• The contributions must be made specifically for relief of those in affected areas
  by the January 12, 2009 Haiti earthquake.
• The contributions must be made to charities that qualify for contribution
  deductions. Gifts to specific individuals do not qualify as a tax deductible
  contribution. Contributions to foreign organizations are not generally
  deductible. You can visit www.irs.gov and use the keyword "Search for
  Charities" to see if a particular organization qualifies.
• Only cash contributions qualify for this provision. Cash contributions can be
  made by the text message options, writing a check to the organization, or using a
  debit or credit card to give cash to a qualifying organization.

This new law provision gives you the taxpayer, the option to take contributions made for relief efforts in Haiti on your 2009 tax return or to take them as you normally would on your 2010 tax return to be filed next April 2011.

IRS Publication 526 can provide you with more detailed information on Charitable Giving Contributions and can be found at the www.IRS.gov website.

2009 / 2010 Homebuyer Tax Credit Extended

2009 / 2010 Homebuyer Tax Credit Extended

As part of the economic stimulus in 2009, a tax credit was created for first time homebuyers to help people buy a new home in the stressed economy. On November 6, 2009 the Worker, Homeownership and Business Assistance Act of 2009 extended the First Time Homebuyer Tax Credit.

Home Buyers who are looking to purchase a home before April 30, 2010 may be able to take advantage of the extended credit.

Here are some things you need to know to see if you might qualify:

• First-time Homebuyer is someone who has not owned a home in the last 3 years.
• Any home bought for a principal residence for a price of equal or less than $800,000 will qualify for the credit.
• The tax credit can be up to $8,000 or 10% of the purchase price, whichever is less.
• The extended dates will qualify homes purchased between Nov 6, 2009 through April 30, 2010.
• Taxpayers that qualify for thefull credit will be buyers with incomes up to $125,000 for a
  single homebuyer or incomes of up to $225,000 for couples. Taxpayers who make more
  than these income levels, will qualify for a prorated amount of the credit. This income
  range for the extended tax credit is higher than the original income ranges for homes
  purchased before Nov. 6 2009.
• A written binding contract to purchase a home in effect on April 30, 2010 will have until
  June 10, 2010 to complete the purchase and still qualify for the credit.
• The taxpayer will not be required to repay the tax credit if they occupy the home for
  three years or more. If the property is sold before that time period, a prorated portion
  of the credit will have to be repaid.

Tax credit details can also be found on the IRS website at www.irs.gov.

2010 Blessings: May you be in Health

January. A month that is filled will getting back into the swing of things after joyous holidays. We need rest about now, a little quiet time, maybe even a little alone time. Then we try to re-focus and re-adjust our priorities for the future. We are full of hopeful change.

I like to spend the whole month of January pondering adjustments to what I do, think, and pursue. So here I begin to share a few Blessings for the New Year for you to ponder as you look to the new year with hopeful change. They may not all sound financial in focus for a dollarplanning blog, but all either affect our finances or our finances affect them. Your health and the health of your family is certainly affected by things like debt in that debt causes stress, or debt may prevent you from being able to join the local recreation center. So consider the fruit of getting your finances in order this year before you tackle the dreaded tasks of managing your money. Set your sites on hope.

For 2010, May your family be in health -

May your household be full of activity that keeps the body strong, and full of love and care for one another throughout the year. May you be protected from injury and illness, and when you do suffer from either, may you recover completely. May you find the foods and acitivities that bring life to your body and soul.

3 John 1:2[NASB] is a prayer to consider for yourself this year:

Beloved, I pray that in all respects you may prosper and be in good
health, just as your soul prospers.

Happy New Year 2010

Ok, I realize it's January 2nd and not January 1st, but I am still wishing you a Happy New Year.

Do you feel like you are starting this year a day late and a dollar short? If so, you are among friends. 2009 was a rough year financially for many people with job loss or job uncertainty along with many financial changes. Your 401k retirement savings may have lost what seems like dramatic amounts late in 2008. The fund seems to have bounced back but not completely in 2009 so you may still be at a loss starting 2010.

One thing we learn in 2009 is that things can change and we are not always prepared. So in 2010, I hope to make some wiser decisions. Take advantage of that New Year feeling. You know the feeling of hope, or at least I hope this year is better than last. This year is what you make of it and you can make it a Happy New Year.