Clearing’s Post

People over the age of 73 should consider qualified charitable distributions – or QCDs – when planning for the 2024 tax year. A great benefit of making a QCD rather than a cash gift to a qualified charity is that, in some cases, one may stack the QCD amount on top of the charitable donation amount to further reduce taxable income.

Do you donate to charitable foundations and causes? If so, it can be a useful part of your tax plan as well, but only if you understand HOW charitable donations actually work on your tax return (they are most often an itemized deduction). In this video, we are demonstrating an example of when your donations may NOT result in a tax-deduction.

Did you know? If you were age 70.5 or older, and you made donations last year DIRECTLY from your IRA to a charity (known as a Qualified Charitable Distribution), the 1099-R you’ll receive from your investment custodian won’t designate them as QCDs. The 1099-R will show them as normal distributions, and so there’s a danger that you’ll be taxed on them, despite the fact they were charitable contributions. Therefore, MAKE SURE you tell your tax preparer about the QCDs. If you don’t, you’ll pay tax on the amount withdrawn for that purpose, which wipes out the benefit of donating in the form of a QCD.

Did you know? If you were age 70.5 or older, and you made donations last year DIRECTLY from your IRA to a charity (known as a Qualified Charitable Distribution), the 1099-R you’ll receive from your investment custodian won’t designate them as QCDs. The 1099-R will show them as normal distributions, and so there’s a danger that you’ll be taxed on them, despite the fact they were charitable contributions. Therefore, MAKE SURE you tell your tax preparer about the QCDs. If you don’t, you’ll pay tax on the amount withdrawn for that purpose, which wipes out the benefit of donating in the form of a QCD.

Did you know about Qualified Charitable Distributions (QCD)? If you have a traditional IRA, here's something to consider: A QCD is a distribution made directly from your IRA to a qualifying charity. The best part? It's non-taxable! Plus, you can't claim it as a charitable deduction. It's a win-win for lowering your taxable income while giving back.

Have you heard about IRA charitable gift annuities? Read this article by the Wall Street Journal to see how you can use your tax-deffered IRA to spread the wealth to your favorite charity! Consider making your gift to FentanylSolution.org today! #makeyourmoneyworkforyou #nonprofitorganization

Thinking of making a Qualified Charitable Distribution (QCD) from your IRA? Make sure you meet these three key requirements first: 1. You must be age 70 and a half or older at the time of distribution. 2. The donation must go directly from your IRA to the charity- no detours through your bank account. 3. The 2024 QCD limit is $105,000 per person, and it can count toward your Required Minimum Distribution (RMD). Following these rules could mean tax-free giving! 

A donor advised fund (or DAF) might be a great solution for you. You can use a DAF to distribute gifts to numerous charities. With a DAF, you can make gifts to charity during your lifetime, and when you pass away, your children can carry on your legacy of giving. Benefits with your donor advised fund -Establish a flexible vehicle for annual charitable giving -Benefit from a more tax and cost efficient alternative to a private foundation -Obtain a charitable income tax deduction in the year of your gift https://lnkd.in/gniyNYxZ

Quick tax tip! Remember to keep track of your charitable donations! Donating to registered UK charities can often be tax-deductible, so be sure to keep records of your contributions to potentially reduce your tax bill. It's a win-win for both you and the causes you support! #AccountingServices #FinancialConsulting #TaxHelp #SmallBusinessFinance

Have appreciated stocks in your portfolio? Consider donating them to charity instead of selling. 📈❤️ ✨ Benefits of Donating Stocks: Tax Savings: Deduct the fair market value if held for over a year. No Capital Gains Tax: Tax-exempt charities avoid capital gains tax on sales. 🚨 Important Tax Rules: Check IRS Publication 526 for charitable donations. Ensure the charity has non-profit status. Record donations on Schedule A with your 1040. 📜 For Donations Over $250: Charity must provide a written statement of the donation's value. For non-cash contributions over $500, attach Form 8283 to your 1040. Donations exceeding $5,000 require a qualified appraiser's letter.