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Last Minute Charitable Donations!

Audio version available here:

Length: approx. 1 min. 30 sec.

We have some last minute tips on charitable distributions! IRA owners have a unique opportunity to transfer up to $100,000 in tax-free gifts to charity. Qualified charitable distributions (QCD) are transfers that older Americans can easily use to donate to charity before the year ends. Furthermore, if someone is aged 73 or older, QCDs will count as the required minimum distribution for the year.

Anyone who wants to take advantage of this opportunity before the end of 2023 needs to contact their IRA trustee soon. The contribution must be made “directly by the trustee” to the charity in order to qualify. When the distribution is made, those who are 70½ years or older can exclude up to $100K from their gross income.

To file correctly, the QCD must be reported on your 2023 tax return. Similar to other IRA distributions, “QCDs are reported on Line 4 of Form 1040 or Form 1040-SR. Finally, the receipt in the form of a written acknowledgement of the contribution must be received before filing the return.

If you feel that you have not taken enough tax deductions during the course of 2023, this charitable distribution can be a great way to catch up. For more information on opportunities such as the QCD, contact our team at XQ CPA for the right guidance. We are here to help. Additionally, check out our IRS source linked below.

Phone: 832-295-3353

Caucasian hand drops a $1 bill into a clear jar with a label that states in red lettering "Donations Please Help"


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