Is there a tax benefit to making a donation directly from my IRA?

May 07, 2014 by Dave Du Val, EA
church

Hey Dave,

Is there a tax benefit to making a charitable contribution to my church directly from my IRA rather than writing a check and then deducting the contribution from my 2014 tax return?

Pete

 

Hi Pete,

The Qualified Charitable Distribution (QCD) was a beneficial tax provision that unfortunately ended in 2013. It allowed taxpayers who were 70 ½ or older to pay directly from their IRAs to a qualified charity. You were able exclude from gross income up to $100,000 of a QCD made for a year, and that QCD could be used to satisfy any IRA required minimum distributions (RMDs) for the year. The amount of a QCD excluded from gross income was not taken into account in determining any deduction for charitable contributions.

This was a popular tax provision that could be extended by Congress this year, so keep your eyes on any new tax legislation that gets passed to find out if it comes back.

 

Deductibly Yours,

Dave
 

Recent Articles

Woman wearing eyeglasses
Prescription eyeglasses for correcting your vision are deductible as a medical expense, but you may not be able to deduct them based on other factors.
IRS Audit
Generally, the IRS has three years form the date the return is filed to conduct an audit. However, there are exceptions to this three-year rule.
Money, United States Treasury Check, 1040 Tax Form
If you paid off a prior year state or local tax obligation to your state, you can include these payments as a state tax deduction, subject to the $10,000 cap.
standard deduction or itemized deduction
Most taxpayers are familiar with the terms standard deduction and itemized deductions, but many are unaware of the differences between the two.

SEARCH

 

Rhonda D. Guillory, EA
Learning and Development Manager

 

Rhonda was a Seasonal Tax Return Reviewer at TaxAudit before joining the permanent staff as an Audit Representative in 2009. She has a Bachelor of Science in Computer Science and worked in the Information Technology field for 15 years before making a career change. Since transitioning to the field of income tax in 2003, she has prepared and analyzed hundreds of tax returns. Rhonda enjoys helping taxpayers and tax professionals learn and understand the fascinating world of income taxes. Currently, she is the Learning and Development Manager.


 

Recent Articles

Woman wearing eyeglasses
Prescription eyeglasses for correcting your vision are deductible as a medical expense, but you may not be able to deduct them based on other factors.
IRS Audit
Generally, the IRS has three years form the date the return is filed to conduct an audit. However, there are exceptions to this three-year rule.
Money, United States Treasury Check, 1040 Tax Form
If you paid off a prior year state or local tax obligation to your state, you can include these payments as a state tax deduction, subject to the $10,000 cap.
standard deduction or itemized deduction
Most taxpayers are familiar with the terms standard deduction and itemized deductions, but many are unaware of the differences between the two.
This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.