Getting the Tax Benefits of Your Charitable Donations
You may be aware that new limits on charitable deductions are now in effect. However, there is still a way to get the benefits of supporting your favorite charitable organization (the LWVHC, perhaps?) AND lowering your overall tax bill. Not everyone qualifies. You need to have an IRA with a required minimum distribution (RMD) and be older than 70 ½. If that’s you, then you can contribute some or all of your RMD directly to the charity of your choice and that part of the RMD will not be taxable income to you. (This is on your federal income or estate return; state law may be different.) Any RMD that you’ve already taken for the year won’t qualify, but there’s always next year! The trick is to fill out a form that your plan administrator will provide, have them distribute the contribution directly, and not personally take any of the RMD. Your plan administrator is required to distribute the RMD as you instruct. If you decide that this is what you want to do, you will need the following information to complete the form you get from your plan administrator:
Legal Name: League of Women Voters of Howard County, Inc.
Address: 5430 Vantage Point Road, Suite C, Columbia, MD 21044
Tax ID: 52-1789005
Some plan administrators do not provide the donor’s name when they send the contribution, so if you’d like us to know it’s from you, please send us an email or call with the name of your financial institution and the amount of your gift.