Last Updated: January 25, 2010 

A new tax relief law allows people who contributed in 2010 to charities providing earthquake relief in Haiti to take a tax deduction for the contribution on their 2009 tax return instead of their 2010 return, according to the Internal Revenue Service (IRS). This means that you can receive an immediate tax benefit, rather than having to wait until you file next year's return, the IRS said.

Of note, certain requirements apply, according to the IRS' Web site:

• Only cash contributions made to these charities after January 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card.
• The contributions must be made specifically for the relief of victims in areas affected by the January 12 earthquake in Haiti.
• You may deduct these contributions on either your 2009 or 2010 returns, but not both.
• Learn more about the new law. Also of note, the organization to which you donate must be a qualified charity. See if the charity is qualified.

FPA member Michael Anderson, JD, MS, CFP®, of True North Advisors, LLC, recommendeds that you consider the following when deciding whether to take the charitable deduction on your 2009 tax return or your 2010 tax return.

• Every situation is unique and it's important to check with your tax preparer whether it makes sense to take the deduction in 2009 or 2010.
• If you had larger-than-expected income in 2009 and you expect it to be far less in 2010, then taking the charitable deduction on your 2009 return makes sense.
• Because of the market fallout in 2008, there were already plenty of tax incentives put in place for your 2009 return. So, it might make sense to review and use the charitable deduction in 2010. 
• Review your 'gain and loss situation' for the 2009 tax year. While the investment market place had a great year, if you were in many of the same funds you were in 2008, you may not be as far ahead as you think since many funds simply made up a lot of ground. Also, if you did some extensive tax-loss trading in 2008 or 2009, you may have considerable loss carry forward deductions to offset gains or other income, and thus may not need to take the deduction. 
• A charitable contribution deduction is allowed if you itemize your deductions. According the IRS, generally, you must decide whether to itemize deductions or to use the standard deduction. You should itemize deductions if your allowable itemized deductions are more than your standard deduction. If you don't itemize, then don't even worry about a charitable deduction. Learn more about itemized deductions. 
• Make sure you donate to a reputable organization that will give you clear proof of your contribution.

Find a financial planner who can help you evaluate your charitable contributions.