Some seniors are finding that their taxes are going up despite a more generous standard deduction. This is true because of a tax provision that requires seniors 70 ½ and older to take money from their retirement accounts even if they don't need the cash.
Many individuals who itemized in the past may find that taking the now-higher standard deduction is a better tax move. However, if you take the standard tax deduction on your tax return, you can't itemize and claim certain deductions such as charitable contributions.
But there is a way for some seniors to still get credit for their giving, thereby reducing their taxable income even if they don't itemize.
One often over-looked tax break is the Qualified Charitable Deduction (QCD). If you transfer funds directly from you IRA to a 501©3 organization such as the Central Piedmont Community College Foundation, those dollars count toward your Required Minimum Deduction (RMD) for the year and are not counted as income. The net effect: You are getting a tax deduction for charitable giving without itemizing deductions. If you normally make charitable contributions, this is a great way to help the College and receive a benefit yourself.
For more information on giving through your IRA or other retirement assets, please contact
Director, Planned Giving
(Portions of this article taken from THE WASHINGTON POST, Michelle Singletary, 03/25/19)