Not itemizing? Some seniors can still get a tax break for charitable deductions.
Even with the increased standard deduction, some seniors are facing higher tax payments to the IRS. Why? The money they’re required to take from their retirement accounts once they reach 70 ½ counts as taxable income.
A qualified charitable distribution (QCD) can be used to satisfy all or part of the required minimum distribution (RMD) from an IRA. What’s the tax benefit? The funds don’t count as income.
This is a smart way for seniors who are taking advantage of higher standard deduct ions and not itemizing to still get a taxable benefit from their charitable giving. Even for those who are eligible to itemize, the QCD may still be of benefit.
If you are a retiree 70 ½ or older with an IRA subject to RMDs, and you have a passion for St. Andrew and its many ministries, don’t miss out on a great strategy to reduce your income tax. You may use a QCD towards your operating pledge, capital pledge, or as a legacy gift. Please contact the finance office for more information.
*A QCD is a direct transfer of funds from an IRA custodian, payable to a qualified charity as described in the QCD provision in the Internal Revenue Code.