QCD
Since Congress was late on allowing Qualified Charitable Deductions, are we still able to include it on 2012 tax return. If so, and you had already made the contribution, how is this reported on the return?
Thank you.
Since Congress was late on allowing Qualified Charitable Deductions, are we still able to include it on 2012 tax return. If so, and you had already made the contribution, how is this reported on the return?
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2013-02-04 01:38
There are different possibilities depending on dates of all your TIRA distributions in 2012. When did you take did the distributions and when did you contribute it to the charity. Did you contribute by a direct transfer or by writing your own check?
Permalink Submitted by Mary on Thu, 2013-02-07 00:40
I took the distribution in December 2012. I did not make a direct transfer because it was not determined that we could for 2012 for the purpose of a QCD.
Permalink Submitted by Al Fry on Mon, 2013-02-04 19:45
I presume if a qualified QCD IRA owner was making weekly donations, i.e. church pledges, any made in Jan 2013 could be counted toward the 2012 IRA QCD, up to the December distribution amount not to exceed $100,000. Any chace this might get extended? By the time people found out about it, they did not have much time to make a decision. Response, from what I have heard was poor. These old-timers (like me) take a while to make up our minds.
Permalink Submitted by mk foss on Tue, 2013-02-05 18:30
Al – you should have had your weekly donations payable to the charity every time in any case because:1. Extensions of QCD have always been retroactive2. A taxable RMD and charitable deduction is almost as good as a QCD for many taxpayers.
Permalink Submitted by Mary on Thu, 2013-02-07 00:42
” A taxable RMD and charitable deduction is almost as good as a QCD for many taxpayers.” Please explain. Thank you.
Permalink Submitted by Mary on Thu, 2013-02-07 00:48
How do I prevent my entire name from appearing on the discussion forum? I have already deleted my last name on the edit page, but it still appears on the forum.
Permalink Submitted by Mary on Tue, 2013-02-19 14:57
Thank you very much!
Permalink Submitted by Alan - IRA critic on Thu, 2013-02-07 02:26
It may be almost as good if you are itemizing even without the charitable deductions and already have 85% of your SS benefits included in your AGI. In that case the charitable deduction would reduce your taxable income and more SS would not be included in your income due to the taxable distribution. Even then, the additional income would reduce your medical deductions due to the % of AGI floor applied to those deductions. It could also result in a surcharge of your Medicare Parts B and D premiums due to higher modified AGI. For most people, the QCD will result in tax savings vrs not using a QCD for the donations.