One of the best ways to save money for your taxes is to take advantage of qualified charitable distributions (QDs). These QCDs allow you to defer paying taxes on a charitable donation you make, and the money can be used for a variety of charitable purposes.
If you are 70 years old or older, you can make up to $105,000 a year in charitable donations and receive no federal income tax on the money. This is a great way to help your taxes, and you can also help your community by supporting worthy causes.
A QCD is a type of charitable contribution that is made directly from your IRA to a qualified charity. The donor does not qualify for a charitable tax deduction for the gift, but the money is withdrawn from your IRA and is not liable to income tax.
There are many ways to use a QCD. You could donate it to a local charity, a state or national governing body, or a private foundation.
One of the main benefits of using a QCD is that it can help you lower your overall tax bill.
A QCD can be a great way to help you save for your taxes and support your community. If you are 70 years old or older, it is a good idea to take advantage of this tax-advantaged option.
Story source: Adams County Community Foundation