Qualified Charitable Deduction
Make a Qualified Charitable Deduction (QCD) to OLOG and Reduce Your Taxes
Taxpayers that take the Standard Deduction will get no tax benefit from simply writing a check to a OLOG. BUT, IRA owners and beneficiaries over the age of 70 ½ can lower their Adjusted Gross Income (what you pay taxes on) by the amount of the contribution (up to $100,000, or $200,000 for a couple) IF that amount is transferred DIRECTLY from your account to the charity. WARNING: Do not take possession of the funds and then make the contribution. You must transfer directly to OLOG.
An additional benefit is that lowering your AGI may drop you into a lower bracket for Medicare, saving you hundreds of dollars. In fact, you may choose to combine 2 years of contributions into one year to make that happen – at least for one year.
While RMDs are waived for 2020, QCDs remain as a viable tax strategy. Please discuss with your tax professional.