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jjackson9
New Member

For 2018 tax year is an ira deductible as a charitable contribution to a church?

In 2017 tax year an ira given to a church as a charitable contribution  was deductible. There was some doubt that in 2018 you could make a similar deduction.

The question is for 2018 taxes, is a charitable contribution from an ira account deductible on your 2018 1040.

2 Replies
ScruffyCurmudgeon
Level 9

For 2018 tax year is an ira deductible as a charitable contribution to a church?

The Qualified Charitable Deduction ("QCD") remains unchanged from 2017.  If you are 70.5 years old, you may direct the trustee of your IRA account (bank, brokerage, etc.) to transmit directly to a charitable organization an amount from your IRA.  Total distributions - whether all to one charitable organization, or to many - cannot exceed $100,000.  The transfer must be direct out of your IRA account to the charitable entity, and you cannot be an intermediary and temporarily received the funds.  A QCD, if done prior to any other distribution (withdrawal) that you make from the IRA, can count against the sum that you, at age 70.5 and older, must withdraw a a Required Minimum Distribution ("RMD").

As is true for any cash basis taxpayer, the QCD executed in 2018 would count against the RMD.  However, if  you have already withdrawn funds from the IRA in 2018, those first funds withdrawn first count against the RMD, and any remaining necessary RMD balance may be satisfied by a QCD.  

Note that any funds transmitted by means of a QCD can be accounted from within the charitable organization as charity, such as against a pledge you had made, but the QCD amount cannot be reported on your tax filing as a charitable donation; that would be double counting since you would never have reported the monies of the QCD as income.

It is always best to also receive an official receipt from the charitable organization.

Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
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-------------------------------------No Not an Intuit Employee - Just donating my time
Anonymous
Not applicable

For 2018 tax year is an ira deductible as a charitable contribution to a church?


A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. QCDs can be counted toward satisfying your required minimum distributions (RMDs) for the year, as long as certain rules are met.


Can I make a QCD

You must be 70½ or older to be eligible to make a QCD.

QCDs are limited to the amount that would otherwise be taxed as ordinary income. This excludes non-deductible contributions.

The maximum annual amount that can qualify for a QCD is $100,000. This applies to the sum of QCDs made to one or more charities in a calendar year. (If, however, you file taxes jointly, your spouse can also make a QCD from his or her own IRA within the same tax year for up to $100,000.)

For a QCD to count towards your current year's RMD, the funds must come out of your IRA by your RMD deadline, generally December 31.



note that the QCD is not a Schedule A deduction. it reduces the taxable portion of the distribution     Say your fully taxable RMD is $10,000   $5,000 from the IRA account goes to a qualified charity.  the Trustee will report a $10,000 distribution on 1099-R. they do not report the QCD.  In TT  you will need to enter the QCD amount.    the result is that page 1 of 1040 will show only $5,000 taxable.  

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