Search
  • Mark Young, CPA

Why You Should Make Charitable Donations from Your RMD

Many of you who have to take Required Minimum Distributions (RMDs) should consider making your charitable donations directly from your IRA.

For the past several years you have been able to do this, but it's never been a huge tax benefit. That was, until now.

Now that the 2018 tax year standard deduction has been increased to $12,000 for single filers and $24,000 for marrieds, many of you will find that you are not itemizing deductions next year. As such, your charitable donations will not benefit you.

If you pay the charitable donations directly from your IRA:

1. You reduce your taxable IRA withdrawals.

2. Distributions still qualify as your RMD.

3. You still take the standard deduction.

4. You make your charitable donation deductible.

Here is an article to help you to better understand this benefit:

Forbes article about making your donation directly from your IRA

Please see our Legal Statement.

20 views

Recent Posts

See All

Mileage Logs Required

In a recent tax court case, "Edwards, T.C. Memo. 2018-44," the court determined that taxpayers are now required to keep a contemporaneous mileage log in order to deduct their business miles. The detai

Check Your Annual Credit Report

A quick reminder regarding the importance of your credit report – your credit rating can affect qualifying for a loan and the interest rate and terms you will be offered; and, a negative report can be