Hal_Al
Level 15

Retirement tax questions

Simple answer: have the IRA custodian send the money directly to the Charity (a QCD -Qualified Charitable Distribution). It directly reduces your AGI (adjusted Gross income) as well as your taxable income. Lower AGI usually makes you more eligible for other tax benefits. The QCD comes directly off you income before taxable income is determined.

A charitable deduction from your checking account is only an itemized deduction. You must have sufficient other  itemized deductions, to exceed you standard deduction before you get any tax benefit from a charitable deduction. If your total itemized deductions are close to the standard deduction, you may not get the full benefit of making a charitable contribution from your checking account. 

But, taxes are complicated. The only way to be absolutely sure is to calculate it both ways and compare. If you currently use the standard deduction, then the QCD is almost surely your best option.

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