Income Tax Benefit of Making Charitable Contributions

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Current tax law allows certain IRA owners to make tax free distributions to charity. Here are some key points about this provision:

  • If you are an IRA owner age 72 for IRA owners reaching age 70½ after December 31, 2019, or haven’t reached age 70½ by the end of 2019, you are eligible to make a qualified charitable distribution, or QCD.
  • A QCD is a direct transfer of part or all of your IRA distributions to an eligible charity.
  • You may exclude the distributed amounts from your income. You can claim this benefit regardless of whether you itemize your deductions. If you do exclude the QCD from your income, you cannot also deduct the amount as a charitable contribution if you itemize.
  • You can count your QCDs in determining whether you meet the IRA’s required minimum distribution.

As always, please contact your tax advisor with any questions.

Thank you for considering Saint Bernard Parish in your annual charitable giving.