Qualified Charitable Deductions, Part 3


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J

JoeTaxpayer

QCDs are a direct donation to an established charity from an IRA without impacting Adjusted Gross Income. It does count toward Required Minimum Distribution.

It appears they may be renewed:
http://www.kiplinger.com/columns/ask/archive/do-not-transfer-ira-distributions-to-charity-yet.html
Nice article. If I recall, last year Congress approved the QCD very late
in the year. Maybe it's not a priority, of course, but for those
impacted, it's an important thing to know, sooner than later.
For retirees whose generosity is large, but don't break trough the
standard deduction, this was a great perk.
http://www.joetaxpayer.com/donating-your-ira-rmd/

Joe
 
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J

JoeTaxpayer

For retirees who have to pay Medicare premiums, the fact that
QCDs do not increase AGI can also be helpful. Taking $X in
in cash (thereby increasing AGI) from an IRA, making a charitable
donation of $X and deducting $X on Schedule A is not as good as
having $X sent directly to the charity as a QCD, no increase in AGI,
and no deduction on Schedue A, especially if the increased AGI
causes an increase in Medicare premiums. And yes, I do know
that Medicare premiums are determined by MAGI (which also
increases when AGI increases) and not by AGI. A similar calculation
to taxability of Social Security benefits also.

Dilip Sarwate
A reader commented that on my site. Excellent to bring it up here. The
QCD is a great perk, I hope they continue it.
 

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