Taxpayers Have Until January 31st to Make 2012 Tax-Free Transfer from IRAs to Eligible Charities

Taxpayers Have Until January 31st to Make 2012 Tax-Free Transfer from IRAs to Eligible Charities

News story posted in Information Release on 16 January 2013| comments
audience: National Publication | last updated: 16 January 2013
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Summary

As reported earlier on the PGDC, the IRS has now issued an official reminder that IRA owners age 70-1/2 or older have until January 31 to make tax-free transfers to eligible charities and report them as 2012 qualified charitable distributions (QCDs).

IR-2013-6

Full Text:

The IRS has announced (IR-2013-6) that IRA owners age 70-1/2 or older have until January 31 to make tax-free transfers to eligible charities and report them as 2012 qualified charitable distributions (QCDs).

The American Taxpayer Relief Act extended for 2012 and 2013 the provision authorizing QCDs, which are otherwise taxable distributions from an IRA owned by an individual, age 70-1/2 or older, paid directly to an eligible charitable organization. The IRA owner can exclude from gross income up to $100,000 of QCDs annually.

For the 2012 tax year only, IRA owners can choose to report QCDs made in January 2013 as if they occurred in 2012. IRA owners who received IRA distributions during December 2012 can contribute, in cash, part or all of the amounts distributed to eligible charities during January 2013 and have them count as 2012 QCDs.    

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