{"id":54248,"date":"2022-11-08T09:49:35","date_gmt":"2022-11-08T17:49:35","guid":{"rendered":"https:\/\/lapost.us\/?p=54248"},"modified":"2022-11-08T10:50:14","modified_gmt":"2022-11-08T18:50:14","slug":"seniors-can-reduce-their-tax-burden-by-donating-to-charity-through-their-ira","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=54248","title":{"rendered":"Seniors can reduce their tax burden by donating to charity through their IRA"},"content":{"rendered":"

Tax Tip 2022-171<\/p>\n

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In most cases, distributions from a traditional Individual Retirement Account are taxable in the year the account owner receives them but there are some exceptions<\/a>. A qualified charitable distribution is one of the few exceptions.<\/p>\n

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A QCD is a nontaxable distribution made directly by the trustee of an IRA to organizations that are eligible<\/a> to receive tax-deductible contributions. QCDs can\u2019t occur from Simplified Employee Pension plans and Savings Incentive Match Plan for Employees IRA.<\/p>\n

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Making a QCD can benefit the taxpayer by reducing their taxable income while they support qualifying charitable organizations of their choice. The taxpayer doesn\u2019t have to worry about meeting the standard deduction<\/a> or itemizing deductions<\/a> with a QCD.<\/p>\n

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Financial institutions report QCDs on Form 1099-R<\/a> for the calendar year the distribution occurs. There\u2019s no number or letter code on the Form 1099-R that indicates the distribution was a QCD.<\/p>\n

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QCD Guidelines<\/strong><\/p>\n