End of Year Charitable Giving | Helpful Hints!
November 15, 2021
By Amanda Abraham
Have an IRA? If you are subject to Required Minimum Distributions, a Qualified Charitable Distribution(QCD) to the Peconic Land Trust from your IRA could help you reduce your taxable income and be charitable at the same time! Here are some of the advantages of a QCD:
- It reduces your adjusted gross income (AGI) by up to $100,000, so less income is taxable.
- It lowers the taxable portion of your Social Security benefit, which could potentially decrease your Medicare premiums.
- It helps maximize the tax impact of your charitable giving, especially for those who are no longer eligible to claim the itemized deduction.
- It can satisfy some or all of your required minimum distribution.
- It can help lower your taxable estate, which may defray future state and federal taxes.
Itemize? Don’t Itemize?
- Even if you take the standard deduction, the CARES Act now allows you to deduct charitable donations of up to $300 for each individual (so those married and filing jointly can deduct up to $600!) on your 2021 federal tax return.
- If you itemize in 2021, you will be able to deduct cash charitable donations up to 100% of your adjusted gross income (usually you're only allowed up to 60%). Learn more here.
Have property to donate? If you donate property for conservation purposes this year, you may be able to claim enhanced charitable contributions. Learn more here. We are grateful for your support of conservation and are happy to answer any questions. Please feel free to contact Amanda Abraham at AAbraham@PeconicLandTrust.org or by calling 631-283-3195. Thank you!
Amanda Abraham
Director of Development
AAbraham@peconiclandtrust.org