A tax break for retirees is back.
Here’s how to use it — and what to avoid
This tax break is a fringe benefit of getting old. It lets some in their 70s use a tax strategy that got canceled for 2020 because of COVID but is now back with us.
The qualified charitable distribution (QCD) allows individual retirement account holders to divert some of their federally taxable required distributions to charity. That lets the IRA holders make donations and reduce their federally taxable income — while still letting them take the standard deduction on their federal tax returns.
OCTA is still accepting donations for its year-end appeal, and a QCD might be a way to both help OCTA and your own bottom line. Some members are even donating a portion of their stimulus checks, so thank you to those who called this week and did so! Read more about QCDs at this article from the Washington Post and consult your tax adviser on how to properly utilize this benefit.
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