Save on Taxes With Qualified Charitable Distributions

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 The donor does not qualify for a charitable tax deduction for the gift, but the money is withdrawn from your IRA and is not liable to income tax.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

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