The new charitable decutions?

[normgreen3]

I'm 77 yrs old and receaive RMDs. I've been making charitable deductions using my Visa card. Can I continue to do so to claim the deduction?

[Bsch4477 · Accepted solution]

You can take charitable deductions two different ways. 
1.  Use your personal credit card to document your contributions and use them as an itemized deduction on schedule A. 
2. A preferable way is to take a qualified charitable distribution from your RMD which has the advantage of lowering your AGI. That contribution must be made through your RMD account with the check sent by your fiduciary to the charity or to you but the check from the fiduciary made payable to the charity. Only if your credit card is tied to your IRA would that work for this type of contribution. 

[Hal_Al · Accepted solution]

The new above-the-line charitable deduction is available starting in the2026 tax year, not 2025.  Taxpayers will be able to deduct up to $1,000 (for single filers and those married filing separately) or $2,000 (for married couples filing jointly).

 

For 2025, you can only take charitable deductions, paid with your credit card, as an itemized deduction on Schedule A.  The fact that you "receive RMDs" is not relevant.

 

To claim an above the line QCD (Qualified Charitable Distribution)* from your RMD (Required minimum distribution), the charitable contribution must be sent directly from your IRA custodian to the charity.  You can not have the IRA send the money to you and then you make a payment to the charity.**

 

QCDs are only allowed from traditional IRAs. You cannot make a QCD from a pension, 401k or similar plan. 

 

*The QCD does not actually show as a "deduction", on form 1040. Instead, it is treated as an "exclusion" of income on line 4 of form 1040.

** One slight exception, the IRA can send a check, made out to charity, to you, and then you forward the check to the charity.