Many US citizens are feeling the impact of tax law changes under the Federal Tax Cuts and Job Act (2017). The standard deduction increase from $12,500 to $24,000 has reduced the ability for many to itemize charitable deductions.
Most make donations to charitable institutions from the goodness of their hearts. They do it to support missions they feel are important and to make a difference in their community. Having tax deductions is not their main concern. They reap intangible rewards by helping others. Regardless of their motivation, making income and charitable dollars stretch is important. Those who are above the age of 70.5 years do have options that can help reduce federal income tax liabilities. One option is to rollover all or part of your annual Required Minimum Distribution (RMD) to a Qualified Charitable Organization (QCO) such as Benevilla.
For many, charitable deductions will be less possible, unless your total deductions – including charitable giving – exceed the new standard deduction of $24,000. An IRA charitable rollover offers taxpayers a way to benefit from charitable donations by reducing their overall taxable income. This reduction in taxable income reduces tax liabilities.
IRA funds must be transferred, in the donor’s name, from the bank directly to the charity of your choice. Funds should not be withdrawn and then donated, or it will be considered taxable income of the donor.
Be sure to seek advice from your financial or tax advisor. You should discuss your individual financial situation when considering an IRA rollover gift. Feel free to call the Benevilla Donor Relations Department at 623-584-4999 or click here for more information.