Carrie’s 20 Days of Tax Tips – Day 6

If you are 70½ or older AND have an IRA:
Consider a Qualified Charitable Distribution (QCD). With a QCD, you donate a portion of or all of your IRA Required Minimum Distribution (RMD) to a qualified charity. The donated amount is not included in your taxable income. In addition, it lowers your income for certain ‘floors’ like social security benefit taxation and Medicare Part B and D premiums. QCDs are a very tax-efficient way to make charitable donations.