A QCD reduces your AGI, a benefit to a taxpayer at any age. The lower your income, the less taxes you pay. However, you cannot claim a QCD as a tax deduction on your annual tax return.10 Exceptions The exception to this is nondeductible contributions, as they are considered ...
IRA owners must be age 70 1/2 or older to make a tax-free charitable contribution. Those who meet the age requirement can transfer up to $100,000 per year directly from an IRA to an eligible charity without paying income tax on the transaction. If you file ajoint tax return, your spo...
Here's how to prevent some of the most common required minimum distribution errors. Forgetting a RMD The penalty for missing a required distribution is 50% of the amount that should have been withdrawn in addition to the income tax due. However, only 38% of Americans are aware that the...
Uncle Sam offers plenty of incentives, too. One of the most lucrative — and often overlooked — isthe Saver’s Credit. If you fall within the income limits, you can claim a tax credit of up to $1,000 for singles or $2,000 for joint filers. The credit is based on 10%, 20% or...