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    #1

    Haiti Contributions

    I want to be clear that this has NOT YET passed, as of this writing.

    There was unanimous passage in the Senate of a proposal to allow contributions to Haiti to be DEDUCTIBLE ON THE 2009 RETURN. Most of you have already heard of this if you listen to TV news. Why do they do this to us?

    There are people who have already filed their taxes. Do they get amended returns? Of course, if this passes.

    Many of you may be thinking "Ron, quit complaining and use this as a chance to charge more for amended returns and the associated filing that will come out of this."

    Some "golden opportunities" are not worth it. It is bad enough that last-minute legislation goes on until Christmas every year and we are supposed to keep up with it. Now they get to extend their legislative wheeling/dealing INTO THE TAX SEASON. If you think the few dollars we get for a few amended returns are worth this kind of grief, you're not thinking straight.

    Am I against a special tax break for Haiti contributions? Of course not! Instead of screwing with our tax season while it is ongoing, why not allow an above-the-line deduction for Haiti contributions by virtue of an expanded standard deduction just like property taxes on the 2010 return? That would be better for all parties, including the tax preparation community.
    Tags: None
    #2
    Haiti

    I think I read that one senator introduced a bill to postpone the earthquake, but it never got out of committee...

    Now they're trying to fix the problem retroactively.

    BMK
    Burton M. Koss
    koss@usakoss.net

    ____________________________________
    The map is not the territory...
    and the instruction book is not the process.

    Comment

      #3
      Agree with your frustration. It's sort of like playing a ball game, leaving to celebration and forgetting about it. Then 2 weeks later, they change the rules of the game and tell you that according to the new rules, you lost the game. Stupid, stupid, stupid.

      LT
      Only in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".

      Comment

        #4
        Originally posted by Koss View Post
        I think I read that one senator introduced a bill to postpone the earthquake, but it never got out of committee...

        Now they're trying to fix the problem retroactively.

        BMK
        KOSS, you are too much!!! As for as the original issue, how many people will have filed already? And how short are our memories, wasn't the same the thing done in 2005 for Tsunami victims?

        Comment

          #5
          Why couldn't

          the taxpayer just take it next year if they've already filed?

          If it's a large amount, I could see maybe paying for an amended return. I wouldn't pay for an amended for a $25 contribution.

          Just a thought.

          Peachie

          Comment

            #6
            Haiti Contributions

            I would suppose it is to try to generate the immediate contributions, much the same as the prior major disasters.

            They need contributions and money now - not later!

            However, if I recall correctly we had a choice to either claim on the current year return - (which for Haiti would be the 2009 or actually claim the following year 2010) so therefore an amended return would not be needed for t/p's that HAVE already filed their 2009 return as of 1/20/2010.

            Sandy

            Comment

              #7
              Just how many itemizing deductions on schedule a have already filed anyway?
              ChEAr$,
              Harlan Lunsford, EA n LA

              Comment

                #8
                Thousands Every Day

                Many have made their point that it is early in the tax season and not many will need to have their taxes re-done.

                Note that we can't deduct this yet. Even though it unanimously cleared the Senate, it has not yet been voted on by the House. It is NOT LAW, not yet anyway.

                So I believe the relevant question is not how many returns have been filed in these first few days, but how many will have been filed by the time the House gets around to voting on this. Then the President has to sign it (of course he will, but sometimes this takes another couple days).

                Comment

                  #9
                  And once the media hypes the story, I can see how it's going to play out for us. The day after this passes and is signed into law, probably well into tax season, we will be getting calls from everyone who's already filed saying "I texted $10 for Haiti relief on my cell phone two different times - how soon can you amend my return so I'll get credit for it?"
                  "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

                  Comment

                    #10
                    I agree with Snaggletooth's comments

                    While i'm sympathetic towards those in Haiti I don't recommend complicating the tax law anymore than it is. It's already difficult enough to justify why i spend more time on a 1040 than "quickie tax drive through" does and why my client and i might be better off trudging through an 8 page organizer. Don't muddy the water anymore than it already is.

                    Comment

                      #11
                      Originally posted by JohnH View Post
                      And once the media hypes the story, I can see how it's going to play out for us. The day after this passes and is signed into law, probably well into tax season, we will be getting calls from everyone who's already filed saying "I texted $10 for Haiti relief on my cell phone two different times - how soon can you amend my return so I'll get credit for it?"
                      I normally don't text so I don't have a calling plan that includes any number of free text messages, instead I pay $.75 for each incoming and outgoing text message. So I text the Red Cross to send them $10. They text me back to confirm requiring another TM on my part to confirm. Then they TM to thank me, followed by another TM asking me if I want daily updates by TM requiring yet another TM on my part to decline. So my $10 donation cost me another $4.5 in TM charges. Next time I'll mail a check.
                      In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
                      Alexis de Tocqueville

                      Comment

                        #12
                        Better yet, just do directly to the Red Cross web site and make a direct donation there. It's much simpler and they don't have to wait for the phone companies to release the funds. I know that some phone providers are saying they are releasing some of the funds early, but I still expect to hear stories in the future about how all the money didn't make it due to some sort of foul-ups. And we'll never know whether some of those foul-ups are intentional or unintentional.

                        On the other hand, I'm sure that lots of people making those $10 contributions will add up - especially those who'd never take the time to either go to a web site or write a check. So all things considered, I guess texting as another way to give isn't so bad. What I don't understand is why people would give to lesser-known organizations or telethons run by publicity-seeking performers when it's very simple and dependable to just donate to the Red Cross. After all, they're already geared up to do this sort of thing and they would be the ones I'd hope to see coming if I were caught up in some sort of disaster.
                        "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

                        Comment

                          #13
                          Originally posted by JohnH View Post
                          why people would give to lesser-known organizations . . . when it's very simple and dependable to just donate to the Red Cross.
                          One reason- higher admin costs of TRC may mean dilution of one's donation. Some of the lesser known organizations have a better rating on use of dollars.
                          Last edited by BP.; 01-21-2010, 01:01 PM.

                          Comment

                            #14
                            Yes, they always claim that they're more efficient than Red Cross - that's one way they keep operating. It may even be true in some cases but I generally disregard such claims unless I'm thoroughly familiar with the organization.
                            "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

                            Comment

                              #15
                              The Internet tells me Partners In Health (Zanmi Lasante) has the advantages of being locally run, with a high percentage of funds going directly to services.

                              Partners In Health - Injustice has a Cure
                              https://donate.pih.org/page/contribute/haiti_earthquake
                              We believe quality health care is a universal human right. Around the world, Partners In Health fights injustice by providing care first to those who need it most.

                              Partners In Health a Nonprofit Corporation - GuideStar Profile
                              http://tinyurl.com/yg876m2
                              GuideStar connects donors and grantmakers to non-profit organizations.
                              Sandy >^..^<

                              Comment

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