March 24, 2006
This is the last year for those age age 701/2 and older to get a tax break for donating up to $100,000 directly from an IRA to a charity, says Mark Luscombe, principal analyst with CCH, an Illinois provider of tax information.
You dont get a charitable deduction, but the donation counts toward the required minimum distribution that older IRA owners must make annually. Charitable distributions also wont count as income on tax returns, which will lower your adjusted gross income. With a lower AGI, you might be eligible for tax breaks that you didnt qualify for before, Luscombe says.