Gifts of Cash
A $300 “above-the-line” charitable deduction for taxpayers who do not itemize their deductions (instead they take the standard deduction on their tax returns). Thus it is estimated 90% of taxpayers will benefit from this feature (Note: it may be possible to take a $600 deduction for taxpayers filing a joint return; more guidance on this question is being sought from the Joint Committee on Taxation in Congress).
Increased 100% Charitable Deduction Limit for Cash Gifts
For larger donors, the deduction limit for cash gifts to eligible charities is 50%-60% of Adjusted Gross Income (AGI) (and gifts above that amount may be “carried over” to future tax years). Gifts of cash will be deductible to 100% of your AGI (this does not include cash gifts to Donor Advised Funds or some other charitable concerns).
Take that RMD from your IRA and use those funds for a Qualified Charitable Distribution!
The qualified charitable distribution (QCD) rule allows traditional IRA owners to deduct their required minimum distributions on their tax returns if they give the money to a charity.
· By lowering your adjusted gross income, the QCD rule can effectively reduce your income taxes.
· QCDs are capped at $100,000 annually, per person.
· QCDs must be made directly to Doe River Gorge Ministries
· You can make a partial RMD distribution as a QCD, but you will still be required to take the remaining distribution amount.
So the good news is that you can use your IRA (even at age 70 ½) to support your church and charities, such as Doe River Gorge, with your Qualified Charitable Distribution (QCD). It is easy to do with a call to your IRA Custodian as you ask them to send a QCD check to eligible charities. This is tax-smart giving (up to $100,000 per IRA owner) as the QCD is not a taxable distribution from your IRA.