Monday 11th of December 2017 12:28:09 AM

  • IRS declares tax-free IRA distribution regulations for charitable donations

    Thursday 17th of January 2013 10:03:35 AM

    According to the Internal Revenue Service (IRS) tax payers that owe IRA (Individual retirement arrangements) have only a restricted amount of time to make tax-free donations so that it may count for the 2012 tax year.  IRA owners ages 70 ½ or older, have only until Thursday, January 31 to reassign their funds to an eligible charity.

    The American Taxpayer Relief Act of 2012, endorsed January 2, extended for 2012 and 2013 the stipulation that permitted IRA owners to prohibit from their gross income up to $100,000 of “qualified charitable distributions (QCD).”  First available in 2006, this stipulation had expired at the end of 2011.

    IRA owners can choose to report QCDs that were made in January 2013 as if the contributions were made in 2012.  These contributions can be reported on Form 1040.  Form 1040 states that transferred contributions are not taxable and no deduction is to be had for sad transfer. Also, this QCD option is offered in spite of whether a qualified IRA possessor itemizes deductions on Schedule A, according to the IRS.

    For more details on this matter you can visit the IRS website.

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