Donations and QCDs without RMDs

Because of the SECURE Act 2 years ago, I decided to bunch charitable contributions and do 3 years’ worth this fall as QCD when I turn 70½ and would have needed to take RMDs this year. Now with the CARES Act, my RMDs are not due till 2022. I have a few questions:
1. When I donate before reaching 70½ to all these organizations that need to raise money now for coronavirus causes and the total amounts to $500, for example, does the above-the-line deduction created by the CARES Act max out at $300 if I do the standard deduction (i.e., no itemizing) for my 2020 tax return?
2. If the dollar amount in 1. is deducted, can I still do a QCD when I turn 70½ for tax year 2020?
3. If I can do the QCD as in 2., I know that it won’t reduce the current year income since there is no RMD, but it will lower the balance of my traditional IRA account so that it will notably reduce RMDs starting at age 72, and therefore the taxable amount of Social Security benefits, Medicare Part B IRMAA, plus Medicare Part D IRMAA. The question is: Does reporting the QCD lower just the “taxable” IRA balance, so essentially, for the balance that is left, the basis becomes a higher percentage of the total IRA balance, thus lessening the tax on future RMDs?



  1. Yes, your above the line deduction is limited to $300 (even if filing jointly). Donation must be in cash.
  2.  You can also do a QCD once you reach 70.5
  3.  Yes, if your IRA has basis recorded on Form 8606, each QCD will increase your remaining basis % for future years, since a QCD comes first from your pre tax IRA value.  

Under your answer 1., is the $300 above-the-line deduction only for the year 2020, and in 2021, it is no more?If one donates more than $300 in 2020, can one carry over the excess donation to the following years or the carryover only applies if one itemizes and the donation is more than 100% of AGI?

  • Per notes issued by the Committee on Taxation, this above the line deduction introduced in the CARES Act (not in Secure) only applies to tax year 2020, and is limited to $300 for the filing tax unit, which includes joint filers. A carryover of excess charitable contributions is limited to contributions itemized in a given year, therefore if you are claiming the 300 above the line deduction in 2020, you are not itemizing and cannot carry over any other donations made in 2020.
  • If you reach 70.5 this year, your RMDs do not begin until the year you reach 72. You can do QCDs at 70.5 but they do not offset RMDs for you since RMDs do not start before 72. 

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