BillM223
Expert Alumni

State tax filing

If you are 70 and 1/2 years of age before the end of the tax year, then you are permitted to make something called a QCD: Qualified Charitable Distribution from an IRA.

 

This distribution, which may or may not be the RMD (Required Minimal Distribution) is considered tax-free by both the IRS and the state of Wisconsin.

 

For taxpayers who are old enough, this enables them to take their RMD, send it to a charity, and show no increase of taxable income. This is a benefit to taxpayers who don't need to take the RMD and don't want to pay tax on it.

 

Wisconsin says this:

"Is Wisconsin following the IRC with respect to IRA distributions to a charitable organizations?

Yes. Beginning with the 2018 taxable year, amounts directly transferred from an individual retirement account to a qualified charitable organization are not included in Wisconsin income. Federal law requires the person to be at least age 70 ½ when the distribution is made and the maximum exclusion from income is $100,000 per person
."

 

Please see the Wisconsin tax website.

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