charitable giving

Reduce Taxes by Making a Charitable Distribution

Reduce Taxes by Making a Charitable Distribution

If you have not already taken your required minimum distribution (RMD) for 2017, you may want to consider making a qualified charitable distribution (QCD) through your IRA. Of course, before doing so, you want to know the answer to one important question: Would you benefit from making a QCD? If you fall into one of the following categories, the answer may be "yes":

1. You have a high adjusted gross income.

Some expenses are deductible only to the extent they exceed a certain percentage of adjusted gross income (AGI). For instance, miscellaneous itemized deductions must exceed 2% of AGI to be deductible; medical expenses and casualty losses must exceed 10%. QCDs can reduce AGI by taking the place of otherwise taxable RMDs, meaning it may be possible to lower your threshold for deducting certain expenses.