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How to Get Tax Savings on Charitable Contributions

May 20, 2024

Qualified charitable distributions (QCDs) from an IRA provide individuals over 70½ with a way to receive income tax savings on charitable gifts— even if they decide to take the newly increased standard deduction.

By using a QCD, an individual can make a charitable gift from the IRA and apply the gift to satisfy the required minimum distribution for the year—but, the individual will pay no income tax on the IRA distribution because the money is going directly to a charity.  This works because the law permits those over 70½ to make charitable gifts directly from their IRAs to eligible charities and excludes the distributions from their gross income. 

Please click on the full article to learn more about the applications of the QCD and the technical requirements.