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Saving your Charitable Deduction Under the New Tax Bill

| January 05, 2018
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Retirees may still be able to get a deduction for charitable donations under the new tax bill, even if they no longer itemize. 

The new tax law retains tax law provisions which allow individuals over age 70 ½ to make donations to a charity directly from their IRA account through a Qualified Charitable Donation (QCD).  A QCD counts toward the donors Required Minimum Distributions, but is not counted as income on the tax return.  This distinction (vs. a typical charitable tax deduction) is important under the new tax law, because many seniors who previously took charitable donations will find they no longer itemize their taxes, and thus cannot benefit from the charitable deduction. 

I expect many seniors will begin to make donations in this manner going forward. 

Qualified Charitable Donations must be made directly to a 501c3 charity.  Money cannot be directed to a donor advised fund. 

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