Hatian Relief Donations Qualify for 2009 Deduction

Taxpayers who make cash donations to charities providing earthquake relief in Haiti between January 11, 2010 and February 28, 2010 can choose to deduct these donations on their 2009 or 2010 tax returns, but not both. This deduction does not cover donations of property, but only cash given to local, not foreign, organizations.

You must itemize your deductions if you wish to claim this deduction. The Federal record keeping requirements are in effect. A copy of your telephone bill showing the name of the donee organization, the date of donation, and the amount of the donation will be acceptable for text donations. For all other cash donations, you need the bank record (cancelled check)or a receipt from the charity showing the name of the organization, the date of donation, and the amount of donation.

2009 Ohio Tax Changes

Ohio Governor Ted Strickland and the ohio legislature has postponed for two years (2009 and 2010) the scheduled tax rate reduction for 2009. By not lowering the tax rate for 2009 and 2010, Ohio has effectively raised your taxes for these two years.

Ohio now requires that all 2009 and later income tax returns to be filed electronically.

Beginning January 1, 2010 Sales tax is now sourced to the location where the order is recieved, not where it is delivered. This does not apply to sales of autos, trucks, boats or sales of out-of-state vendors which will still be sourced to the point of delivery.

2009 Ohio Income Tax Changes

2009 Homebuyer's Credit

The IRS has issued new instructions about the documentation that must be attached to your 2009 Federal Income Tax Return if you wish to claim the new homebuyer's tax credit. All taxpayers must attach a copy of the settlement statement showing all parties' names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed form HUD-1 Settlement Statement.

In addition, those taxpayers who qualify for the long-time resident of the same main home, must attach the following documentation covering a five-consecutive-year period. Form 1098 Mortgage Interest Statement, or Property Tax Records, or Homeowner's Insurance Records.

If the required documentation is not attached, the claim will be denied! The need to attach this documentation to your Federal return means that you will not be able to E-file your Federal return. Ohio residents are required to E-file their Ohio state income tax returns. Also, the IRS expects those returns claiming this credit to take at least an extra 3 weeks to process.