With the standard deduction for individuals at $12,550 and for married filing joint at 25,100 for 2021, many taxpayers are no longer itemizing.  If you are over the age of 70 1/2, you are eligible to make a qualified charitable distribution.  This is a direct transfer of funds from your IRA custodian to a qualified charity and the distribution is not taxable to you.  It is recommended to take the distributions out of your traditional IRA and not a Roth IRA.  The Secure Act did not change the age requirement for QCDs.  The Secure Act did raise the age for required minimum distributions from 70 ½ to 72, so if you are age 72 or older, the distribution counts towards satisfying your required minimum distribution for the year.

Consult with your tax professional at Ketel Thorstenson about this or other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own.  Ketel Thorstenson CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry. Call us today for guidance on tax planning, tax return preparation, and tax legislation affects or questions.