Due to the changes in the tax code in 2018, most taxpayers can no longer itemize deductions. This means that charitable contributions that were deductible in the past are no longer deductible for those taxpayers now taking the standard deduction.
However, if you are over age 70 and taking a required minimum distribution (RMD) from your IRA, you can make your charitable contributions directly from your IRA to the charity. This is called a Qualified Charitable Distribution (QCD). Donations made to qualified organizations – 501(c)(3) – via QCD count toward meeting the RMD and are not taxed!
Please let us know if you would like more information on this strategy.